VAN ECK WORLDWIDE INSURANCE TRUST, 497, 1995-10-03

VAN ECK WORLDWIDE INSURANCE TRUST
497, 1995-10-03

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<PAGE>

PROSPECTUS September 1, 1995

As Revised on October 3, 1995

VAN ECK WORLDWIDE INSURANCE TRUST

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99 Park Avenue, New York, New York 10016
(212) 687-5200
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Van Eck Worldwide Insurance Trust (the "Trust") is an open-end management
investment company consisting of five separate funds (the "Funds"), each of
which has a specific investment objective. Shares of the Funds are offered
only to separate accounts of various insurance companies to fund the benefits
of variable life policies and variable annuity contracts (the "Contracts").
Shares of Worldwide SmallCap Fund are not currently offered to the public.

WORLDWIDE SMALLCAP FUND--seeks long-term capital appreciation by investing
globally in equity securities of companies with small market capitalizations.
Pictet International Management Limited ("PIML" or "Sub-Adviser") serves as
sub-investment adviser to this Fund.

WORLDWIDE BALANCED FUND--seeks long term capital appreciation together with
current income. Fiduciary International, Inc. ("Fll" or "Sub-Adviser") serves
as sub-investment adviser to this Fund.

WORLDWIDE HARD ASSETS FUND--seeks long-term capital appreciation by investing
globally, primarily in "Hard Asset Securities." Income is a secondary
consideration.

GOLD AND NATURAL RESOURCES FUND--seeks long-term capital appreciation by
investing in equity and debt securities of companies engaged in the
exploration, development, production and distribution of gold and other
natural resources, such as strategic and other metals, minerals, forest
products, oil, natural gas and coal. Current income is not an investment
objective.

WORLDWIDE BOND FUND--seeks high total return through a flexible policy of
investing globally, primarily in debt securities.

Gold and Natural Resources Fund, Worldwide Bond Fund and Worldwide Hard Assets
Fund are managed by Van Eck Associates Corporation (the "Adviser"), 99 Park
Avenue, New York, New York 10016. See "Management." Van Eck Securities
Corporation (the "Distributor"), a wholly-owned subsidiary of the Adviser,
serves as Distributor of the Funds' shares.

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

This Prospectus sets forth concisely information about the Trust and Funds
that you should know before investing. It should be read in conjunction with
the prospectus for the Contract which accompanies this Prospectus and should
be retained for future reference. For further information about the Funds,
please call the Funds or the Distributor at the above telephone number.

The Contracts involve certain expenses not described in this Prospectus and
also may involve certain restrictions or limitations on the allocation of
purchase payments or Contract values to one or more Funds. In particular,
certain Funds may not be available in connection with a particular Contract or
in a particular state. See the applicable Contract prospectus for information
regarding expenses of the Contract and any applicable restrictions or
limitations with respect to the Funds.

Shares of the Funds are not deposits or obligations of, or guaranteed or
endorsed by, a bank, and the shares are not federally insured by the Federal
Deposit Insurance Corporation, the Federal Reserve Board, or any other agency.

A Statement of Additional Information, dated September 1, 1995, as revised on
October 3, 1995, which further discusses the Trust and Funds has been filed
with the Securities and Exchange Commission and is incorporated herein by
reference. It is available without charge upon request to the Funds or the
Distributor at the above address or by calling the telephone number listed
above.

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THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES AND
EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION NOR HAS THE SECURITIES
AND EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION PASSED UPON THE
ACCURACY OR ADEQUACY OF THIS PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY IS
A CRIMINAL OFFENSE.

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<PAGE>

TABLE OF CONTENTS PAGE
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<TABLE>
<S> <C>
The Trust................................................................... 3
Financial Highlights........................................................ 3
Investment Objectives and Policies of the Funds............................. 4
Risk Factors................................................................ 13
Limiting Investment Risks................................................... 22
Management.................................................................. 23
How to Buy Shares........................................................... 26
Dividends and Distributions................................................. 27
How to Redeem Shares........................................................ 27
Federal Taxation............................................................ 27
Description of the Trust.................................................... 27
Additional Information...................................................... 29
</TABLE>

2
<PAGE>

THE TRUST

Van Eck Worldwide Insurance Trust (the "Trust") is an open-end management
investment company organized as a "business trust" under the laws of the
Commonwealth of Massachusetts on January 7, 1987. The Gold and Natural
Resources Fund is classified as diversified under the Investment Company Act
of 1940 (the "Act"). Worldwide Bond Fund, Worldwide SmallCap Fund, Worldwide
Hard Assets Fund and Worldwide Balanced Fund are non-diversified funds. (See
"Description of the Trust"). Shares of Worldwide SmallCap Fund are not
currently offered to the public.

FINANCIAL HIGHLIGHTS

The Financial Highlights below give selected information for a share of each
Fund outstanding for the year or period indicated. The Financial Highlights
presented have been audited by Deloitte & Touche LLP, independent accountants,
for all years from commencement of operations through April 30, 1992. The
Financial Highlights presented have been audited by Coopers & Lybrand L.L.P.,
independent accountants, for all other fiscal years ended April 30, whose
reports thereon appear in the Funds' Annual Reports. This information should
be read in conjunction with the financial statements and related notes that
also appear in the Funds' Annual Reports. The Annual Reports also contain
additional performance information that will be made available on request and
without charge.
<TABLE>
<CAPTION>

GOLD AND NATURAL RESOURCES FUND WORLDWIDE BOND FUND
---------------------------------------------------- -------------------------------------------------------
YEAR ENDED APRIL 30,
--------------------------------------------------------------------------------------------------------------
1995 1994 1993 1992 1991 1990+ 1995 1994 1993 1992 1991 1990+
-------- ------- ------- ------ ------ ------ -------- ------- ------- ------- ------- ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of
Period........... $ 13.11 $ 10.61 $ 8.25 $ 8.85 $ 9.51 $10.00 $ 10.05 $ 10.62 $ 11.57 $ 10.82 $ 10.10 $10.00
-------- ------- ------- ------ ------ ------ -------- ------- ------- ------- ------- ------
INCOME FROM
INVESTMENT
OPERATIONS:
Net Investment
Income.......... 0.08 0.07 0.01 0.04 0.16 0.08 0.68 0.63 0.81 0.62 1.03 0.26
Net Gains or
Losses on
Securities (both
realized and
unrealized)..... 0.37 2.47 2.39 (0.53) (0.69) (0.57) 0.77 (0.37) (0.75) 0.67 0.19 (0.16)
-------- ------- ------- ------ ------ ------ -------- ------- ------- ------- ------- ------
Total From
Investment
Operations....... 0.45 2.54 2.40 (0.49) (0.53) (0.49) 1.45 0.26 0.06 1.29 1.22 0.10
-------- ------- ------- ------ ------ ------ -------- ------- ------- ------- ------- ------
LESS
DISTRIBUTIONS:
Dividends (from
net investment
income)......... (0.07) (0.04) (0.04) (0.11) (0.13) -- (0.04) (0.72) (0.83) (0.53) (0.50) --
Distributions
(from capital
gains).......... -- -- -- -- -- -- -- (0.11) (0.18) (0.01) -- --
-------- ------- ------- ------ ------ ------ -------- ------- ------- ------- ------- ------
Total
Distributions.... (0.07) (0.04) (0.04) (0.11) (0.13) 0.00 (0.04) (0.83) (1.01) (0.54) (0.50) 0.00
-------- ------- ------- ------ ------ ------ -------- ------- ------- ------- ------- ------
Net Asset Value,
End of Period.... $ 13.49 $ 13.11 $ 10.61 $ 8.25 $ 8.85 $ 9.51 $ 11.46 $ 10.05 $ 10.62 $ 11.57 $ 10.82 $10.10
======== ======= ======= ====== ====== ====== ======== ======= ======= ======= ======= ======
- --------------------------------------------------------------------------------------------------------------------------------
Total Return(a).. 3.43% 23.96% 29.19% (5.62%) (5.67%) (4.90%) 14.51% 2.49% 0.38% 12.21% 12.37% 1.00%
- --------------------------------------------------------------------------------------------------------------------------------
Ratios/Supplementary
Data:
Net Assets, End
of Period (000's
omitted)......... $127,320 $81,248 $30,896 $9,836 $6,936 $3,660 $113,466 $80,908 $66,035 $40,930 $15,046 $2,237
Ratio of Expenses
to Average Net
Assets(b)........ 0.96% 0.96% 1.61% 1.32% 0.52% -- 0.98%(c) 0.93% 1.01% 1.05% 0.50% --
Ratio of Net
Income to Average
Net Assets....... 0.71% 0.64% 0.25% 0.60% 2.10% 2.46%* 6.24% 6.47% 8.47% 8.55% 9.75% 9.22%*
Portfolio
Turnover Rate.... 23.30% 15.84% 14.61% 0.48% 21.86% 5.09%* 265.87% 37.59% 248.21% 231.34% 341.01% 12.23%*
</TABLE>

<TABLE>
<CAPTION>
WORLDWIDE BALANCED
FUND
--------------------------
FOR THE PERIOD FROM
DECEMBER 23, 1994(degrees)
TO
APRIL 30 1995
--------------------------
<S> <C>
Net Asset Value,
Beginning of
Period........... $10.00
------
INCOME FROM
INVESTMENT
OPERATIONS:
Net Investment
Income.......... --
Net Gains or
Losses on
Securities (both
realized and
unrealized)..... --
------
Total From
Investment
Operations....... 0.00
------
LESS
DISTRIBUTIONS:
Dividends (from
net investment
income)......... --
Distributions
(from capital
gains).......... --
------
Total
Distributions.... 0.00
------
Net Asset Value,
End of Period.... $10.00
======
- ---------------------
Total Return(a).. 0.00%
- ---------------------
Ratios/Supplementary
Data:
Net Assets, End
of Period (000's
omitted)......... $ .14
Ratio of Expenses
to Average Net
Assets(b)........ 0.00%
Ratio of Net
Income to Average
Net Assets....... 0.00%
Portfolio
Turnover Rate.... 0.00%
</TABLE>
- ----
(a) Total return is calculated assuming an initial investment made at the
net asset value at the beginning of the period, reinvestment of
dividends and distribution of capital gains at net asset value during
the year and a redemption on the last day of the period. Total return
for the period ended April 30, 1990 for Gold and Natural Resources Fund
and Worldwide Bond Fund and the period ended April 30, 1995 for
Worldwide Balanced Fund were not annualized.
(b) Had the Adviser not reimbursed expenses, the expense ratios for the
year ended April 30, 1991 and for the period September 1, 1989
(commencement of operations) to April 30, 1990 would have been 1.21%
and 1.87%, respectively, for Gold and Natural Resources Fund and 1.14%
and 2.80%, respectively for Worldwide Bond Fund. With respect to Gold
and Natural Resources Fund and Worldwide Bond Fund, as of October 3,
1995 the effective rate of the Adviser's management fee is 1.0%. Prior
to October 3, 1995, the effective rate of the management fee was 0.75%.
(c) Ratio would have been 0.99% had there not been a directed brokerage
arrangement.
(d) Had the Adviser not reimbursed expenses, the unannualized expense ratio
for the period ended April 30, 1995 would have been 78.40%.
(degree) Commencement of operations.
* Annualized
+ From September 1, 1989 (commencement of operations) to April 30, 1990.

3
<PAGE>

INVESTMENT OBJECTIVES AND POLICIES OF THE FUNDS

A description of the investment objectives and policies of the Funds is set
forth below. The investment objective of a Fund may not be changed without the
affirmative vote of a majority of the outstanding voting securities of that
Fund. As a result of the market risk inherent in any investment, there is no
assurance that the Funds will achieve their objectives. For further
information about a Fund's investment policies, see "Investment Objectives and
Policies" in the Statement of Additional Information.

WORLDWIDE SMALLCAP FUND

OBJECTIVE:

Worldwide SmallCap Fund seeks long-term capital appreciation by investing
globally in equity securities of companies with small market capitalizations.

POLICIES:

The Fund will select its portfolio securities primarily from issuers whose
individual market capitalizations would place them (at the time of purchase)
in the same size range as companies in approximately the lowest 20% by total
market capitalization of companies that have equities listed on a U.S.
national securities exchange or traded in the NASDAQ system. Based on recent
U.S. share prices, these companies will typically have individual market
capitalizations below $500 million (although the Fund will be allowed to
invest in larger capitalization companies that satisfy the Fund's size
standard). Because the Fund is permitted to apply the U.S. size standard on a
global basis, it may invest in companies that might rank above the lowest 20%
by total market capitalization in local markets and, in fact, might in some
countries rank among the largest companies in terms of capitalization.

The Adviser believes that investing globally in smaller company stocks can,
over the long-term, produce superior returns but with increased risk. Small
capitalization stocks often have sales and earnings growth rates which exceed
those of larger companies, and such growth rates may in turn result in more
rapid share price appreciation. Investors should be aware that although the
Fund diversifies across more investment types than most mutual funds, no one
mutual fund can provide a complete investment program for all investors. There
can be no assurance that the Fund will achieve its investment objective.

While the companies in which the Fund primarily invests may offer greater
opportunities for capital appreciation than larger, more established
companies, investments in smaller, emerging growth companies may involve
greater risks and may be subject to more abrupt or erratic price movements
than investments in large companies. The securities of small emerging growth
companies may also be more sensitive to market changes than the securities of
large companies.

Pictet International Management Limited ("PIML") will serve as sub-adviser to
the Fund. PIML, located in London, is registered with the SEC and is
affiliated with Pictet & Cie., Geneva ("Pictet"). Pictet is the largest
private bank in Switzerland and is principally engaged in international
investment management and related activities, with more than $40 billion under
management. Established in 1805, Pictet has approximately 200 investment
professionals and a worldwide network of affiliates, including locations in
Zurich, Luxembourg, Tokyo, Hong Kong, Nassau and Montreal. PIML, organized in
1980, is specifically structured to provide international investment services
to U.S. investors. As part of Pictet's network, PIML has access to all of
Pictet's research. The Adviser believes that PIML has unique knowledge and
experience in global smallcap investing. See "Management."

Under normal market conditions, the Fund will invest at least 65% of its
assets in equity securities of smaller capitalization companies, and such
companies will be located in at least three countries including the United
States. However, for temporary defensive purposes, the Fund may have all of
its assets invested in any one country or in securities denominated in the
currency of any one country. The equity securities in which the Fund may
invest consist of common stocks, preferred stocks (either convertible or non-
convertible), rights and warrants. These securities may be listed on the U.S.
or foreign securities exchanges or traded over-the-counter.

4
<PAGE>

The Fund may invest up to 35% of its total assets in equity securities which
do not meet its small company criteria and in debt securities, including high
grade, liquid debt securities of foreign companies, foreign government and the
U.S. Government and their respective agencies, instrumentalities, political
subdivisions and authorities, as well as in money market instruments
denominated in U.S. dollars or a foreign currency. The average maturity of the
debt securities in the Fund's portfolio will be based on PIML's judgment as to
future interest rate changes. Normally, the average maturity will be shorter
when interest rates are expected to rise and longer when interest rates are
expected to fall. The assets of the Fund invested in fixed income securities
will consist of securities which are believed by PIML to be high grade, that
is rated A or better by S&P or Moody's, Fitch-1 by Fitch or Duff-1 by Duff &
Phelps or if unrated, to be of comparable quality in the judgment of PIML
subject to the supervision of the Adviser and the Board of Trustees. The
assets of the Fund invested in short-term instruments will consist primarily
of securities rated in the highest category (for example, commercial paper
rated "Prime-1" or "A-1" by Moody's and S&P, respectively) or if unrated, in
instruments that are determined to be of comparable quality in the judgment of
PIML subject to the supervision of the Adviser and the Board of Trustees, or
are insured by foreign or U.S. governments, their agencies or
instrumentalities as to payment of principal and interest. The Fund may invest
in asset-backed securities such as collateralized mortgage obligations and
other mortgage and non-mortgage asset-backed securities.

During periods of adverse or unusual economic and/or market conditions, the
Fund may, for temporary defensive purposes, make substantial investments in
obligations of the U.S. Government, debt obligations of one or more foreign
governments, certificates of deposit, bankers' acceptances, high grade
commercial paper and repurchase agreements.

There is no limitation on the amount the Fund can invest in emerging markets.
The Fund may purchase securities in any foreign country, developed or
underdeveloped. Investors should consider carefully the substantial risks
involved in investing in securities issued by companies and governments of
foreign nations, which are in addition to the usual risks inherent in domestic
investments. Global investing involves economic and political considerations
not typically applicable to the U.S. markets. These considerations, which may
favorably or unfavorably affect the Fund's performance, include changes in
exchange rates and exchange rate controls (which may include suspension of the
ability to transfer currency from a given country), cost incurred in
conversion between currencies, non-negotiable brokerage commissions, default
in foreign government securities, lower trading volume and greater market
volatility, the difficulty of enforcing obligations in other countries, war,
expropriation, nationalization, confiscatory taxation, taxation of income
earned in foreign nations or other taxes imposed with respect to investments
in foreign nations, political and social instability and diplomatic
developments which could affect investments in securities of issuers in
foreign nations.

In addition, there is typically less publicly available information concerning
foreign and smaller companies than for domestic and larger, more established
companies. Some small companies have limited product lines, distribution
channels and financial and managerial resources. Some of the companies in
which the Fund may invest may distribute, sell or produce products which have
recently been brought to market and may be dependent on key personnel with
varying degrees of experience. Also, because smaller companies normally have
fewer shares outstanding than larger companies and trade less frequently, it
may be more difficult for the Fund to buy and sell significant amounts of such
shares without unfavorable impact on prevailing market prices. Foreign
companies are not generally subject to uniform accounting, auditing and
financial reporting standards and the Fund may encounter difficulties or be
unable to pursue legal remedies and obtain judgments in foreign courts.
Further, the settlement period of securities transactions in foreign markets
may be longer than in domestic markets. In many foreign countries there is
less government supervision and regulation of business and industry practices,
stock exchanges, brokers and listed companies than in the U.S. The foreign
securities markets of many of the countries in which the Fund may invest may
also be smaller, less liquid, and subject to greater price volatility than
those in the U.S.

PIML will determine the amount of the Fund's assets to be invested in domestic
and foreign securities and the allocations to each asset class abroad will be
based on its assessment of where opportunities for long-term capital
appreciation are expected to be most attractive. When making this
determination, PIML will evaluate key factors such as current liquidity,
capacity constraints, direction of interest rates and market valuations. PIML
will invest in quality, growth-oriented smaller companies while maintaining a
diversified approach to reduce stock specific risk. PIML employs a "top down"
approach in its assessment of countries, regions and currencies, but is
essentially driven by the "bottom up" approach in stock selection. Stock
selection is

5
<PAGE>

based on PIML's proprietary data base of over 4,000 companies and,
comprehensive universe of 10,000 companies, in over 65 different countries,
and company visits by research analysts and investment managers. PIML utilizes
a proprietary model to determine asset/country allocation which includes
variables such as macroeconomic factors and general equity and fixed income
valuation measures. In the search for quality growth stocks that are
relatively inexpensive, the key criteria are strong balance sheets, cash
earnings, profitability ratios above market/sector average and reasonable
valuations.

The Fund does not currently, and has no present intention to, use hedging as
an investment strategy, however, the Fund may do so in the future.

For a discussion of other investments and risks associated with investing in
the Fund, see "Risk Factors."

WORLDWIDE BALANCED FUND

OBJECTIVE:

Worldwide Balanced Fund seeks long-term capital appreciation together with
current income.

POLICIES:

The Fund intends to achieve its investment objective by investing its assets
in the United States and other countries throughout the world, and by
allocating its assets among equity securities, fixed-income securities and
short-term instruments.

The Adviser believes that through diversification both on an international
basis and across various asset classes the Fund can attempt to take advantage
of the best investment opportunities worldwide. The Adviser believes that
allocation of assets into many countries and across asset classes can, over
the long-term, provide higher returns than portfolios invested solely in bonds
with lower risk (or volatility, as measured by standard deviation of monthly
returns) than portfolios invested entirely in stocks. Thus, the "risk-adjusted
return" of a diversified portfolio has the potential to be more attractive
than some other, more concentrated portfolios. In addition, the balanced
approach reduces the risk where events in any one country, including the
United States, may adversely affect the entire portfolio. Investors should be
aware that although the Fund diversifies across more investment types than
most mutual funds, no one mutual fund can provide a complete investment
program for all investors. There can be no assurance that allocation of assets
both globally and across asset classes will reduce these risks or that the
Fund will achieve its investment objective.

Fiduciary International, Inc. ("FII" or "Sub-Adviser") will serve as sub-
investment adviser to the Fund. FII is a wholly-owned subsidiary of Fiduciary
Investment Corporation, which, in turn, is a wholly-owned subsidiary of
Fiduciary Trust Company International. Fiduciary Trust Company International
has more than 30 years of experience in managing funds which invest in the
international markets. The Adviser believes FII has unique knowledge and
experience in global investing.

The Fund seeks investment opportunities in the world's major stock, bond and
money markets. The Fund may invest in securities issued anywhere in the world
including the United States. Under normal conditions, the Fund will invest its
assets in at least three countries including the United States. There is no
limitation or restriction on the amount of assets to be invested in any one
asset class or country. Over the long-term, the Fund will attempt to invest a
minimum of 25% of its assets in the United States, with the balance outside
the United States and the Fund will attempt to maintain an asset allocation of
60% in equity securities and 40% in fixed-income securities and short-term
instruments. However, subsequent to the initial investment period at least 25%
of the Fund's total assets will always be invested in fixed-income senior
securities and at least 25% of the Fund's total assets will always be invested
in equities. Over shorter periods, for temporary defensive purposes, the Fund
can have all of its assets invested in any one country or currency. FII will
determine when geographic or asset class reallocations should occur. These
reallocations are not expected to be sudden, rather such reallocations will be
made gradually over time. The Fund may also allocate a portion of its assets
to gold.

6
<PAGE>

The Fund will not invest more than 10% of its assets in the securities of
developing countries with emerging economies or securities markets. The Fund
may invest in asset-backed securities such as collateralized mortgage
obligations and other mortgage and non-mortgage asset-backed securities.

The average maturity of the debt securities in the Fund's portfolio will be
based on FII's judgment as to future interest rate changes. Normally, the
average maturity will be shorter when interest rates are expected to rise and
longer when interest rates are expected to fall. The assets of the Fund
invested in fixed income securities will consist of securities which are
believed by FII to be high grade, that is, rated A or better by Standard &
Poor's Corporation ("S&P") or Moody's Investors Service, Inc. ("Moody's"),
Fitch-1 by Fitch or Duff-1 by Duff & Phelps or if unrated, to be of comparable
high quality in the judgment of FII subject to the supervision of the Adviser
and the Board of Trustees. The assets of the Fund invested in short-term
instruments will consist primarily of securities rated in the highest category
(for example, commercial paper rated "Prime-1" or "A-1" by Moody's and S&P,
respectively) or if unrated, in instruments that are determined to be of
comparable quality or are insured by foreign or U.S. governments, their
agencies or instrumentalities as to payment of principal and interest.

FII will determine the amount of the Fund's assets to be invested in domestic
and foreign securities and the allocations to each asset class abroad will be
based on its assessment of where opportunities for long-term capital
appreciation and current income are expected to be most attractive. When
making this determination, FII will evaluate the political and economic risks
of the principal countries of the world, the relationship of their currencies
to the U.S. dollar, the outlook for their interest rates, credit quality, GNP
growth, inflation trends, yield relationships between markets, sectors, and
issues, demand and supply for funds, and a variety of other factors. FII
employs a "top down" assessment approach of countries, regions and currencies
and a "bottom up" assessment approach of stocks within selected sectors. FII's
global economic analysis is conducted in over 30 markets worldwide.

The Fund may invest up to 5% of its net assets in options on equity securities
and up to 5% of its net assets in warrants, including options and warrants
traded in over-the-counter markets. The Fund may buy and sell financial
futures contracts and options on financial futures contracts. The Fund may
write, purchase or sell puts and calls on foreign currencies and securities,
and invest in "when issued" securities, "partly paid" securities (securities
paid for over a period of time), and securities of foreign issuers. The Fund
may lend its portfolio securities and borrow money for investment purposes
(i.e., leverage its portfolio). For a further discussion of these investments
see "Risk Factors."

WORLDWIDE HARD ASSETS FUND

OBJECTIVE:

The Fund seeks long-term capital appreciation by investing globally, primarily
in "Hard Asset Securities." Income is a secondary consideration.

POLICIES:

The Adviser believes "Hard Asset Securities" (as defined below) offer an
opportunity to achieve long-term capital appreciation and to protect wealth
against eroding monetary values during periods of cyclical economic
expansions. Since the market action of Hard Asset Securities may move against
or independently of the market trend of industrial shares, the addition of
such securities to an overall portfolio may increase the return and reduce the
price fluctuations of such a portfolio. There can be no assurance that an
increased rate of return or a reduction in price fluctuations of a portfolio
will be achieved. An investment in the Fund's shares should be considered part
of an overall investment program rather than a complete investment program.

7
<PAGE>

The Fund will, under normal market conditions, invest at least 65% of its
total assets in Hard Asset Securities. Hard Asset Securities include equity
securities of "Hard Asset Companies" and securities, including structured
notes, whose value is linked to the price of a Hard Asset commodity or a
commodity index. Indexed securities and structured notes are more fully
described on p.10 under "Factors affecting Worldwide Hard Assets Fund." The
term "Hard Asset Companies" includes companies that are directly or indirectly
(whether through supplier relationships, servicing agreements or otherwise)
engaged to a significant extent in the exploration, development, production or
distribution of one or more of the following (together "Hard Assets"): (i)
precious metals, (ii) ferrous and non-ferrous metals, (iii) gas, petroleum,
petrochemicals or other hydrocarbons, (iv) forest products, (v) real estate
and (vi) other basic non-agricultural commodities which, historically, have
been produced and marketed profitably during periods of significant inflation.
Under normal market conditions, the Fund will invest at least 5% of its assets
in each of the first five sectors listed above.

The Fund has a fundamental policy of concentrating in such industries and up
to 50% of the Fund's assets may be invested in any one of the above sectors.
Since the Fund may so concentrate, it may be subject to greater risks and
market fluctuations than other investment companies with more diversified
portfolios. The production and marketing of Hard Assets may be affected by
actions and changes in governments. In addition, Hard Assets and securities of
Hard Asset Companies may be cyclical in nature. During periods of economic or
financial instability, the securities of some Hard Asset Companies may be
subject to broad price fluctuations, reflecting volatility of energy and basic
materials prices and possible instability of supply of various Hard Assets. In
addition, some Hard Asset Companies may also be subject to the risks generally
associated with extraction of natural resources, such as the risks of mining
and oil drilling, and the risks of the hazards associated with natural
resources, such as fire, drought, increased regulatory and environmental
costs, and others. Securities of Hard Asset Companies may also experience
greater price fluctuations than the relevant Hard Asset. In periods of rising
Hard Asset prices, such securities may rise at a faster rate, and, conversely,
in time of falling Hard Asset prices, such securities may suffer a greater
price decline.

The Advisor believes the Fund may offer a hedge against inflation,
particularly commodity price driven inflation. However, there is no assurance
that rising commodity (or other hard asset) prices will result in higher
earnings or share prices for the Hard Asset Companies in the Fund. Hard Asset
Company equities are affected by many factors, including movements in the
overall stock market. Inflation may cause a decline in the overall stock
market, including the stocks of Hard Asset Companies.

The Fund seeks investment opportunities in the world's major stock, bond and
commodity markets. The Fund may invest in securities issued anywhere in the
world, including the United States. Under normal conditions, the Fund will
invest its assets in at least three countries including the United States.
There is no limitation or restriction on the amount of assets to be invested
in any one country. There is no limitation on the amount the Fund can invest
in emerging markets. The Fund may purchase securities in any foreign country,
developed or underdeveloped. Investors should consider carefully the
substantial risks involved in investing in securities issued by companies and
governments of foreign nations, which are in addition to the usual risks
inherent in domestic investments. Global investing involves economic and
political considerations not typically applicable to the U.S. markets. See
"Risk Factors--Foreign Securities" and "Risk Factors--Emerging Markets
Securities" below.

The equity securities in which the Fund may invest include common stocks;
preferred stocks (either convertible or non-convertible); rights; warrants;
direct equity interests in trusts, partnerships, joint ventures and other
incorporated entities or enterprises; and special classes of shares available
only to foreign persons in those markets that restrict ownership of certain
classes of equity to nationals or residents of that country. These securities
may be listed on the U.S. or foreign securities exchanges or traded over-the-
counter. Direct investments are generally considered illiquid and will be
aggregated with other illiquid investments for purposes of the limitation on
illiquid investments. The Fund may, as described below in "Risk Factors" on
pages 13-21, invest in derivatives. Derivatives are instruments whose value is
"derived" from an underlying asset. Derivatives in which the Fund may invest
include futures contracts, forward contracts, options, swaps and structured
notes and other similar securities as may become available in the market.
These instruments offer certain opportunities and are subject to additional
risks that are described below. The Fund may invest up to 10% of its net
assets, taken at market value at the time of investment, in precious metals,
whether in bullion or coins. In addition, the Fund may invest in futures and
forward contracts and options on precious metals and other Hard Assets.

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<PAGE>

The Fund may invest up to 5% of its net assets in premiums for options on
equity securities and equity indexes and up to 5% of its net assets in
warrants, including options and warrants traded in over-the-counter markets.
Warrants received as dividends on securities held by the Fund and warrants
acquired in units or attached to securities are not included in this
restriction. The Fund may buy and sell financial futures contracts and options
in financial futures contracts. The Fund may purchase or sell puts and calls
on foreign currencies and securities; invest in "when issued" securities
"partly paid" securities (securities paid for over a period of time),
securities of foreign issuers; and may lend its portfolio securities and
borrow money for investment purposes.

The Fund may invest up to 35% of its total assets in debt securities whose
value is not linked to the value of a Hard Asset of Hard Asset Companies and
other issuers and equity securities of companies which are not Hard Asset
Companies. Non-Hard Asset debt securities include high grade, liquid debt
securities of foreign companies, foreign governments and the U.S. Government
and their respective agencies, instrumentalities, political subdivisions and
authorities, as well as in money market instruments denominated in U.S.
dollars or a foreign currency. The average maturity of the debt securities in
the Fund's portfolio will be based on the Adviser's judgment as to future
interest rate changes. Normally, the average maturity will be shorter when
interest rates are expected to rise and longer when interest rates are
expected to fall.

Short sales. The Fund 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. Following the short sale, the Fund must deposit collateral with
the 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.

The Fund will establish a segregated account with respect to its short sales
and maintain in such account cash not available for investment or U.S.
Government securities or other liquid, high-quality debt securities having a
value equal to the difference between (i) the market value of the securities
sold short at the time they were sold short and (ii) any cash, U.S. Government
Securities or other liquid, high-quality debt securities required to be
deposited as collateral with the broker in connection with the short sale (not
including the proceeds from the short sale). Such segregated account will be
marked to market daily, so that (i) the amount in the segregated account plus
the amount deposited with the broker as collateral equals the current market
value of the securities sold short and (ii) in no event will the amount in the
segregated account plus the amount deposited with the broker as collateral
fall below the original value of the securities at the time they were sold
short. The total value of the assets deposited as collateral with the broker
and deposited in the segregated account will not exceed 50% of the Fund's net
assets. The Fund's ability to engage in short sales may be limited by the
requirements of current U.S. tax law that the Fund derive less than 30% of its
gross income from the sale or other disposition of securities held less than
three months. Securities sold short and then repurchased, regardless of the
actual time between the two transactions, are considered to have been held for
less than three months.

LOW RATED DEBT SECURITIES. The Fund may invest in lower quality, high-yielding
debt securities (commonly referred to as "junk bonds") of Hard Asset Companies
rated as low as CCC by Standard & Poor's Corporation ("S&P") or Caa by Moody's
Investors Service, Inc. ("Moody's"). These debt instruments have some "equity"
characteristics in that, while not directly linked, their value may increase
or decrease with the value of a Hard Asset, reflecting the ability of the Hard
Asset Company to make scheduled payments of interest and principal. Lower
rated debt securities are considered speculative and involve greater risk of
loss than higher rated debt securities and are more sensitive to changes in
the issuer's capacity to pay. Debt rated Caa or CCC presents a significantly
greater risk of default than do higher rated securities and, in times of poor
business or economic conditions, the Fund may lose interest and/or principal
on such securities. In addition to sensitivity to interest rates, debt
securities of Hard Asset Companies may fluctuate in price in connection with
changes in the price of the relevant Hard Asset. The Fund will not invest more
than 25% of its assets in debt securities rated below BBB by S&P or Baa by
Moody's.

The assets of the Fund invested in fixed income securities, excluding fixed
income securities whose value is linked to the value of a Hard Asset and of
Hard Asset Companies, will consist of securities which are believed by the
Adviser to be high grade, that is rated A or better by S&P or Moody's, Fitch-1
by Fitch or Duff-1 by Duff & Phelps or if unrated, to be of comparable quality
in

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<PAGE>

the judgment of the Adviser subject to the supervision of the Board of
Trustees. The assets of the Fund invested in short-term instruments will
consist primarily of securities rated in the highest category (for example,
commercial paper rated "Prime-1" or "A-1" by Moody's and S&P, respectively) or
if unrated, in instruments that are determined to be of comparable quality in
the judgment of the Adviser subject to the supervision of the Board of
Trustees, or are insured by foreign or U.S. governments, their agencies or
instrumentalities as to payment of principal and interest. The Fund may invest
up to 10% of its assets in asset-backed securities such as collateralized
mortgage obligations and other mortgage and non-mortgage asset-backed
securities. Asset-backed securities backed by Hard Assets and whose value is
expected to be linked to the underlying Hard Asset are excluded from the 10%
limitation.

During periods when the Adviser expects adverse or unusual economic and/or
market conditions, the Fund may, for temporary defensive purposes, make
substantial investments in obligations of the U.S. government, debt
obligations of one or more foreign governments, certificates of deposit,
bankers' acceptances, high grade commercial paper and repurchase agreements.

For a discussion of other investments and risks associated with investing in
the Fund, see "Factors Affecting Worldwide Hard Assets Fund" and "Risk
Factors".

Real estate securities. ALTHOUGH THE FUND WILL NOT INVEST IN REAL ESTATE
DIRECTLY, IT MAY INVEST UP TO 50% OF ITS ASSETS IN EQUITY SECURITIES OF REAL
ESTATE INVESTMENT TRUSTS ("REITS") AND OTHER REAL ESTATE INDUSTRY COMPANIES OR
COMPANIES WITH SUBSTANTIAL REAL ESTATE INVESTMENTS AND therefore, the Fund may
be subject to certain risks associated with direct ownership of real estate
and with the real estate industry in general. These risks include, among
others: possible declines in the value of real estate; possible lack of
availability of mortgage funds; extended vacancies of properties; risks
related to general and local economic conditions; overbuilding; increases in
competition, property taxes and operating expenses; changes in zoning laws;
costs resulting from the clean-up of, and liability to third parties for
damages resulting from, environmental problems; casualty or condemnation
losses; uninsured damages from floods, earthquakes or other natural disasters;
limitations on and variations in rents; and changes in interest rates. For a
further discussion of these investments, see "Risk Factors."

FACTORS AFFECTING WORLDWIDE HARD ASSETS FUND:

Investors should be aware that some of the securities in which the Fund may
invest, such as structured or indexed notes, swaps and foreign securities pose
additional risks. These instruments may be subject to periods of extreme
volatility, illiquidity and may be difficult to value. Despite these risks,
these instruments may offer unique investment opportunities.

INDEXED SECURITIES AND STRUCTURED NOTES:

The 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.
Only securities linked to one or more non-agricultural commodities or
commodity indices will be considered a Hard Asset Security.

Indexed securities may be publicly traded or may be two-party contracts (such
two-party agreements are referred to here collectively as structured notes).
When the Fund purchases a structured note, a type of derivative, 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. The Adviser will monitor the
liquidity of structured notes under the supervision of the Board of Trustees,
and notes determined to be illiquid will be aggregated with other illiquid
securities and limited to 15% of the total net assets of the Fund.

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<PAGE>

GOLD AND NATURAL RESOURCES FUND

OBJECTIVE:

Gold and Natural Resources Fund seeks long-term capital appreciation by
investing in equity and debt securities of companies engaged in the
exploration, development, production and distribution of gold and other
natural resources such as strategic and other metals, minerals, forest
products, oil, natural gas and coal. Current income is not an investment
objective.

POLICIES:

During normal market conditions, the Fund will have at least 65% of its total
assets invested in securities of companies engaged in gold mining and natural
resources activities. The Fund may also invest in equity and debt securities
of companies which themselves invest in companies engaged in these activities.
The Fund also has the right to invest up to 35% of its assets in the
securities of non-precious metals and natural resources companies.

The Adviser believes that securities of precious metals companies and certain
other natural resources companies offer an opportunity to protect wealth
against eroding monetary values. Recent history indicates that the policies of
many governments seeking economic growth, particularly persistent budget
deficits and high rates of growth of monetary reserves and money supply, have
had long-term inflationary consequences. During periods of accelerating
inflationary policies the prices of many precious metals equity securities
have risen cyclically, and the Adviser believes that they may continue to do
so in the future. The Adviser anticipates that inflation and the price of gold
will continue on a long-term upward trend with alternating cycles as credit is
over-expanded and subsequently tightened. The price of gold decreases when
inflation is not perceived as a risk. Since the market action of gold mining
shares may move against or independently of the market trend of industrial
shares, the addition of such shares to an overall portfolio may increase the
return and reduce the fluctuations of such portfolio. There can be no
assurance that an increased rate of return or a reduction in fluctuations of a
portfolio will be achieved. Thus, an investment in the Fund should be
considered part of an overall investment program rather than a complete
investment program.

The five largest gold producing countries are the Republic of South Africa,
the United States, Australia, CIS (the former U.S.S.R.) and Canada. During
normal market conditions, the Fund expects to invest at least 25% (and
generally 50%) of its assets in securities of companies in Canada, the United
States, Australia and South Africa whose value is tied, linked or dependent
upon the actual or anticipated price of gold such as companies which are
primarily engaged in gold mining. It is uncertain under current federal tax
law the extent to which the Fund may concentrate its investments in gold and
gold related securities without adversely affecting the federal tax status of
the underlying Contracts. Accordingly, the Fund reserves the right to alter
its policy with respect to concentration in such securities if and when such
uncertainty is resolved. This limitation is not a fundamental policy of the
Fund and may be changed at any time by the Board of Trustees without a vote of
shareholders. The Fund may invest in conglomerates whose main activity is not
mining.

The Fund may invest up to 35% of the value of its total assets in: (a)
securities of companies not in the gold mining/natural resources areas; (b)
high grade corporate debt securities; and (c) obligations issued or guaranteed
by the U.S. or foreign governments and repurchase agreements. The Fund may
invest up to 5% of its assets at the time of purchase in warrants. The Fund
may also invest up to 5% of its assets at the time of purchase in preferred
stocks and preferred stocks which may be converted into common stock. The Fund
may purchase and sell financial futures and commodity futures contracts and
options on financial futures and commodity futures contracts and may write,
purchase or sell puts and calls on foreign currencies, securities, commodities
and commodity indices. The Fund may invest in "when issued" securities, and
securities of foreign issuers. For a further discussion of these investments
see "Risk Factors."

The Fund has reserved the right to invest up to 10% of its net assets, taken
at market value at the time of investment, in gold bullion and coins.

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<PAGE>

concentrated portfolios. The Fund has no restrictions on the amount of its
assets that may be invested in securities of foreign issuers and thus the
relative amount of such investments will change from time to time. Investments
by the Fund in securities of gold mining shares, coins and gold bullion,
foreign issuers, foreign currencies, and options and futures may involve
particular investment risks. In addition, the Fund may lend its portfolio
securities and borrow money for investment purposes (i.e., leverage its
portfolio). See "Risk Factors."

Although the Fund will not invest in real estate directly, it may invest a
portion of its assets not invested in the gold, precious and non-precious
metals and natural resources sector in equity securities of real estate
investment trusts ("REITs") and other real estate industry companies or
companies with substantial real estate investments. The Fund may therefore be
subject to certain risks associated with direct ownership of real estate and
with the real estate industry in general. See "Risk Factors."

WORLDWIDE BOND FUND

OBJECTIVE:

Worldwide Bond Fund seeks high total return through a flexible policy of
investing globally, primarily in debt securities.

POLICIES:

Total return is comprised of current income and capital appreciation. The Fund
attempts to achieve its investment objective by taking advantage of investment
opportunities in the United States as well as in other countries throughout
the world where opportunities may be more rewarding and may emphasize either
component of total return. Capital appreciation will result during times of
declining interest rates and, with respect to investing globally, as a result
of foreign currency fluctuations relative to a declining dollar. Normally, the
Fund will have at least 65% of its total assets invested in bonds of varying
maturities.

The Adviser believes that diversification of assets on an international basis
may reduce the risk that events in any one country, including the United
States, may adversely affect the entire portfolio. There can be no assurance
that diversification of assets will reduce this risk. The Adviser will
determine the amount of the Fund's assets to be invested in corporate and
government securities in the United States and the amount to be invested in
each country abroad based on its assessment of where opportunities for total
return are expected to be most attractive. When making this determination the
Adviser will evaluate the political and economic risks of the principal
countries of the world, prospects for the relationship of their currencies to
the U.S. Dollar, the outlook for their interest rates, credit quality and
other factors. In some countries, yields of comparable quality securities
denominated in foreign currencies may either be higher than in the United
States, or may be expected to decline faster (leading to higher bond prices),
or such currencies may be expected to appreciate against the U.S. Dollar. The
long-term assets of the Fund will consist primarily of securities which are
believed by the Adviser to be high grade, that is, rated A or better by
Standard & Poor's Corporation or Moody's Investors Service or, if unrated, to
be of comparable quality in the judgment of the Adviser. For a further
discussion of debt securities see "Risk Factors."

During normal market conditions, the Fund expects to invest in debt
securities, such as obligations issued or guaranteed by a government or any of
its political subdivisions, agencies, or instrumentalities, or by a
supranational organization such as the World Bank or European Economic
Community (or other organizations which are chartered to promote economic
development and are supported by various governments and government entities),
bonds, debentures, notes, commercial paper, time deposits, certificates of
deposit, and repurchase agreements, as well as debt obligations which may have
a call on a common stock or commodity by means of a conversion privilege or
attached warrants. The Fund may invest in debt instruments of the U.S.
Government and its agencies having varied maturities, consisting of
obligations issued or guaranteed as to both principal and interest by the U.S.
Government or backed by the "full faith and credit" of the United States. In
addition to direct obligations of the U.S. Treasury such as Treasury bonds,
notes and bills, these include securities issued or guaranteed by different
agencies such as: Federal Housing Administration, Government National Mortgage
Association and Small Business Administration.

The average maturity of the debt securities in the Fund's portfolio will be
based on the Adviser's judgment as to future interest rate changes. Normally,
the average maturity will be shorter when interest rates are expected to rise
and longer where rates are expected to fall. The Adviser expects the average
maturity to be between three and ten years. In addition, when the Adviser

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<PAGE>

determines that a temporary defensive strategy is warranted, the Fund may
invest in securities maturing in 13 months or less, and most or all of its
investments may be in the United States or another country.

The Fund may invest up to 5% of its assets at the time of purchase in
warrants. The Fund may invest up to 5% of its assets at the time of purchase
in preferred stocks and preferred stocks which may be convertible into common
stock. The Fund may invest in collateralized mortgage obligations. The Fund
may buy and sell financial futures contracts and options on financial futures
contracts and may write, purchase or sell puts and calls on foreign currencies
and securities. The Fund may invest in "when issued" securities, and
securities of foreign issuers. In addition, the Fund may lend its portfolio
securities and borrow money for investment purposes (i.e., leverage its
portfolio). For a further discussion of these investments, see "Risk Factors."

There is no limit on the amount the Fund may invest in any one country or in
securities denominated in the currency of any one country. Normally the Fund
will invest in three countries besides the United States. However, the Fund
may invest solely in the securities of one country such as the United States
when economic conditions warrant, such as an extreme undervaluation of the
currency and exceptionally high returns of that country's currency relative to
other currencies.

RISK FACTORS

Assets of the Funds are subject to market fluctuations and risks inherent in
all securities. In addition, assets of the Funds may be subject to other
special considerations, such as those listed below.

FOREIGN SECURITIES

The Funds may purchase securities of foreign issuers including foreign
investment companies. Investments in foreign securities may involve a greater
degree of risk than investments in domestic securities due to the possibility
of exchange rate fluctuations and exchange controls, less publicly available
information, more volatile or less liquid securities markets, and the
possibility of expropriation, confiscatory taxation or political, economic or
social instability. In addition, some foreign companies are not generally
subject to the same uniform accounting, auditing and financial reporting
standards as are American companies and there may be less government
supervision and regulation of foreign stock exchanges, brokers and companies.
Foreign securities may be subject to foreign taxes, higher custodian fees,
higher brokerage commissions and higher dividend collection fees which could
reduce the yield or return on such securities, although a shareholder of the
Fund may, subject to certain limitations, be entitled to claim a credit or
deduction for United States federal income tax purposes for his proportionate
share of such foreign taxes paid by the Fund. In addition, some foreign
securities in which the Fund may invest may be denominated in foreign
currencies, and since the Fund may temporarily hold funds in foreign
currencies, the value of the assets of the Fund (and thus its net asset value)
will be affected by changes in currency exchange rates. See "Foreign Currency
and Foreign Currency Transactions" below. Transactions in the securities of
foreign issuers may be subject to settlement delays. See "Taxes" in the
Prospectus and "Risks in Investing in Foreign Securities" in the Statement of
Additional Information. However, the Adviser (or Sub-Adviser) believes that
diversification of assets on an international basis decreases the degree to
which events in any one country will adversely affect an entire portfolio.

Gold and Natural Resources Fund and Worldwide Hard Assets Fund invest in South
African issuers. Political and social conditions in South Africa, due to the
exclusionary political system of the South African government and unsettled
political conditions which could recur in South Africa and neighboring
countries, may pose certain risks to the Funds investments. If aggravated by
local or international developments, such risks could have an adverse effect
on investments in South Africa, including the Funds investments and, under
certain conditions, on the liquidity of the Funds portfolio and its ability to
meet shareholder redemption requests. The ability of the Funds to invest, or
hold their investments, in South African companies may be further affected by
changes in United States or South African laws or regulations.

In addition to investing directly in the securities of United States and
foreign issuers, the Funds may also invest in American Depositary Receipts
(ADRs), European Depositary Receipts (EDRs), American Depositary Shares
(ADSs), Global Depositary Shares (GDSs) and securities of foreign investment
funds or trusts (including passive foreign investment companies). ADRs, EDRs,
ADSs

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<PAGE>

and GDSs are certificates that are issued by a United States bank or trust
company representing the right to receive securities of a foreign issuer
deposited in a foreign subsidiary, branch or correspondent of that bank.
Generally, ADRs, in registered form, are designed for use in United States
securities markets.

Foreign brokerage commissions and custodial expenses are generally higher than
in the United States. Dividend collection fees on foreign securities and ADRs
are generally higher than on United States securities and dividends and
interest may be subject to foreign withholding tax at their source which may
not be permitted to be passed through to shareholders.

EMERGING MARKETS SECURITIES

Investments of the Funds may be made from time to time in companies in
developing countries as well as in developed countries. Shareholders should be
aware that investing in the equity and fixed income markets of developing
countries involves exposure to potentially unstable governments, economies
based on only a few industries, and securities markets which trade a small
number of securities and may therefore at times be illiquid. Securities
markets of developing countries tend to be more volatile than the markets of
developed countries. Countries with developing markets may present the risk of
nationalization of businesses, restrictions on foreign ownership, or
prohibitions of repatriation of assets, and may have less protection of
property rights than more developed countries. The economies of countries with
developing markets may be highly vulnerable to change in local or global trade
conditions, and may suffer from extreme and volatile debt burdens or inflation
rates. Local securities markets may be unable to respond effectively to
increases in trading volume, potentially making prompt liquidation of
substantial holdings difficult or impossible at times. Securities of issuers
located in developing markets may have limited marketability and may be
subject to more abrupt or erratic price movements. However, such markets have
in the past provided the opportunity for higher rates of return to investors.
There is no assurance that these markets will offer such opportunity in the
future.

Many of these emerging markets limit the percentage foreign investors, such as
the Funds, may own of their domestic issuers by requiring that such issuers
issue two classes of shares--"local" and "foreign" shares. Foreign shares may
be held only by investors that are not considered nationals or residents of
that country and generally are convertible into local shares. Foreign shares
may be subject to restrictions on the right to receive dividends and other
distributions, have limited voting and other rights, to name a few. Local
shares are intended for ownership by nationals or residents of the country.
The market for foreign shares is generally less liquid than the market for
local shares, although in most cases foreign shares may be converted into
local shares. In addition, foreign shares often trade at a premium to local
shares, while at other times there is no premium. If the Funds were to
purchase foreign shares at a time when there is a premium and sell when there
is a lower or no premium, the Funds could realize a loss on its investment.
Ownership by foreign investors of local shares may be illegal in some
jurisdictions and, in others, foreign owners of local shares may not be
entitled, among other things, to participate in certain corporate actions such
as stock dividends, rights and warrant offerings or to vote at stockholders'
meetings (while foreign holders of foreign shares would participate). If the
Funds were to own local shares and could not participate in a stock, warrant
or other distribution, the Funds could suffer material dilution of their
interest in that issuer and the value of its holdings could decline
dramatically causing a loss on its investment. Generally, it is expected that
the Funds will hold foreign shares. However, because of their limited number
foreign shares may, at times, not be available for purchase by the Funds or,
if available, the premiums may be, in the opinion of the Adviser or Sub-
Adviser, unjustified or prohibitively high. In order to participate in these
markets, the Funds may deem it advisable to purchase local shares which may
expose the Funds to the additional risks described above. The Funds will only
purchase local shares where foreign shares are not available for purchase and,
when in the opinion of the Adviser or Sub-Adviser, the potential for gain in
these markets outweighs the risks that issuers will take corporate actions
which may result in dilution to the Funds. Where permitted by local law, the
Funds will attempt to convert local shares to foreign shares promptly. There
can be no assurance that the Adviser or Sub-Adviser will be able to assess
these risks accurately or that the Funds will be able to convert their local
shares to foreign shares or that dilution will not result.

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<PAGE>

securities. A Fund's ability to participate fully in the markets may be
limited by its investment policy of investing not more than 15% of its total
net assets in illiquid securities. In addition, limited liquidity may impair a
Fund's ability to liquidate a position at the time and price it wishes to do
so. Many of these stock markets are undergoing a period of growth and change
which may result in trading volatility and difficulties in the settlement and
recording of transactions, and in interpreting and applying the relevant law
and regulations. Certain developing countries do not have a comprehensive
system of laws, although substantial changes have occurred in many developing
countries in this regard in recent years. Even where adequate law exists in
certain developing countries, it may be impossible to obtain swift and
equitable enforcement of such law, or to obtain enforcement of the judgment by
a court of another jurisdiction.

In addition, stockbrokers and other intermediaries in emerging markets may not
perform as well as their counterparts in the United States and other more
developed securities markets. The prices at which a Fund may acquire
investments may be affected by trading by persons with material non-public
information and by securities transactions by brokers in anticipation of
transactions by a Fund in particular securities.

PRECIOUS METALS

Gold and Natural Resources Fund and Worldwide Hard Assets Fund may invest in
precious metal coins (including gold, silver, platinum and palladium) which
have no numismatic value. The value of such coins moves correspondingly with
the price of bullion in that the value of the coins is based primarily on
their precious metal content. Since such investments do not generate any
investment income, the sole source of return from such investments would be
from gains realized on sales of the coins or bullion, and a negative return
would be realized to the extent such coins or bullion are sold at a loss. The
Funds incur additional costs in storing gold bullion and coins. These storage
costs are generally higher than custodial costs for securities. Although
subject to substantial fluctuations in value, management believes such
investments could be beneficial to the investment performance of the Funds and
could be a potential hedge against inflation, as well as an investment with
possible growth potential. In addition, at the appropriate time, investments
in precious metal coins or bullion could help to moderate fluctuations in the
Funds portfolio value, as at times the prices of precious metals have tended
not to fluctuate as widely as shares of issuers engaged in the mining of such
precious metals.

In view of the established world market for precious metals, the daily value
of such coins is readily ascertainable and their liquidity is assured since
they are readily saleable to dealers which maintain markets in such coins. The
Funds will maintain their precious metal coins and bullion with Wilmington
Trust Company.

Precious metal trading is a speculative activity. Prices of precious metals
are affected by factors such as cyclical economic conditions, political events
and monetary policies of various countries. Gold and other precious metals are
also subject to governmental action for political reasons. Markets are,
therefore, at times volatile and there may be sharp fluctuations in prices
even during periods of rising prices. Under current U.S. tax law, the Funds
may not receive more than 10% of their respective yearly income from gains
resulting from selling precious metals or any other physical commodity. The
Funds may be required, therefore, to hold their precious metals or sell them
at a loss, or to sell their portfolio securities at a gain, when they would
not otherwise do so for investment reasons.

FOREIGN CURRENCY AND FOREIGN CURRENCY TRANSACTIONS

Since some foreign securities in which the Funds may invest may be denominated
in foreign currencies, and since these Funds may temporarily hold foreign
currencies, the value of the assets of the Funds (and thus their net asset
values) may be affected by changes in currency exchange rates. The Funds
performance will be less favorable if foreign currency exchange rates move
adversely, relative to the U.S. Dollar. Foreign exchange rates are affected by
actual and anticipated Balance of Payments accounts, central bank policy,
political concerns and changes in interest rates, to name a few factors. There
can be no assurance that the Adviser will be able to anticipate currency
fluctuations in exchange rates accurately. The Funds may invest in a variety
of derivatives. The Funds may purchase and sell put and call options on, or
enter into futures contracts or forward contracts to purchase or sell, foreign
currencies. The Funds will enter into foreign currency contracts for hedging
purposes only and not for speculation. The Funds may also use foreign currency
contracts to hedge the U.S. Dollar value of a security which

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they already own or anticipate purchasing. A forward currency contract may
thus help reduce a Fund's losses on a security when a foreign currency's value
changes. The Funds will enter into forward contracts to duplicate a cash
market transaction. However, the Funds will invest in securities including
short-term obligations, denominated in a range of foreign currencies and the
value of the Funds will be affected by changes in currency exchange rates. The
Funds will not purchase or sell foreign currency as an investment except the
Worldwide SmallCap Fund, Worldwide Hard Assets Fund and Worldwide Balanced
Fund may enter into currency swaps. See "Futures Contracts and Options on
Futures Contracts" and "Hedging Strategies" below and "Foreign Currency
Transactions" and "Futures and Options Transactions" in the Statement of
Additional Information.

CURRENCY SWAPS

Worldwide SmallCap Fund, Worldwide Balanced Fund and Worldwide Hard Assets
Fund may enter into currency swaps solely for hedging purposes. Currency swaps
involve the exchange of rights to make or receive payments in specified
currencies. Since currency swaps are individually negotiated, a Fund may
expect to achieve an acceptable degree of correlation between its portfolio
investments and its currency swap positions. Currency swaps usually involve
the delivery of the entire principal value of one designated currency in
exchange for the other designated currency. Therefore, the entire principal
value of a currency swap is subject to the risk that the other party to the
swap will default on its contractual delivery obligations. Worldwide Hard
Assets may also enter into other asset swaps. Asset swaps are similar to
currency swaps in that the performance of a Hard Asset (e.g., gold) may be
"swapped" for another (e.g. energy).

The use of swaps is a highly specialized activity which involves investment
techniques and risks different from those associated with ordinary portfolio
transactions. If the Adviser or Sub-Adviser is incorrect in its forecasts of
market values and currency exchange rates and Hard Assets values, the
investment performance of the Fund would be less favorable than it would have
been if this investment technique were not used. Swaps are generally
considered illiquid and will be aggregated with other illiquid positions for
purposes of the limitation on illiquid investments.

OPTIONS

For hedging and other purposes (such as creating synthetic positions), each
Fund may invest up to 5% of its total assets, taken at market value at the
time of investment, in premiums on call and put options on domestic and
foreign securities, foreign currencies, stock and bond indices, financial
futures contracts and commodity futures contracts. This policy may be changed
without shareholder approval.

As the holder of a call or put option, each Fund pays a premium and has the
right (for generally 3 to 9 months) to purchase (in the case of a call option)
or sell (in the case of a put option) the underlying asset at the exercise
price at any time during the option period. An option on a futures contract
gives the purchaser the right, but not the obligation, in return for the
premium paid, to assume a position in a specified underlying futures contract
(which position may be a long or short position) at a specified exercise price
during the option exercise period. If the call or put is not exercised or sold
(whether or not at a profit), it will become worthless at its expiration date
and the Fund will lose its premium payment. The Fund may, with respect to
options they have purchased, sell them, exercise them or permit them to
expire.

The Funds may 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. If the call or put option is exercised, the Fund must sell (in the
case of a written call option) or buy (in the case of written put option) the
underlying asset at the exercise price. The Fund may write only covered put
and call options. A covered call option, which is a call option with respect
to which the Fund owns the underlying asset, 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 asset or to possible
continued holding of an underlying asset which might otherwise have been sold
to protect against depreciation in the market price of the underlying asset. A
covered put option written by the Fund exposes it during the term of the
option to a decline in price of the underlying asset. 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.
Covering a put option sold does not reduce the risk of loss.

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The Funds may invest in options which are either listed on a domestic
securities exchange or traded on a recognized foreign exchange. In addition,
the Funds may purchase or sell over-the-counter options from dealers or banks
to hedge securities or currencies as approved by the Board of Trustees. In
general, exchange traded options are third party contracts with standardized
prices and expiration dates. Over-the-counter options are two party contracts
with price and terms negotiated by the buyer and seller, are generally
considered illiquid, and will be limited to 10% of total net assets of a Fund,
except that Worldwide SmallCap Fund, Worldwide Hard Assets Fund and Worldwide
Balanced Fund will be limited to 15% of total net assets.

FUTURES CONTRACTS

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 Gold and Natural Resources Fund and
Worldwide Hard Assets Fund may also buy and sell commodity futures contracts
which may include futures contracts on gold and other natural resources and on
gold and other natural resources 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.

Worldwide Hard Assets Fund and Gold and Natural Resources Fund may invest in
commodity futures contracts and in options on commodity futures contracts
(collectively, "commodity interests"). Trading in commodity interests involves
numerous risks such as leverage, illiquidity, governmental intervention
designed to influence commodity prices and the possibility of delivery of the
commodity interests' underlying commodities. Commodity markets are highly
volatile. In the event that a Fund is required to take delivery of a
commodity, such commodity will be deemed to be illiquid, and the Fund will
bear the cost of storing the commodity until such commodity is sold and may
incur substantial costs in its disposition. The Funds will not use commodity
futures contracts for leveraging purposes in excess of applicable limitations.

When a Fund enters into a futures contract, it must make an initial deposit,
known as "initial margin," as a partial guarantee of its performance under the
contract. As the value of the underlying asset fluctuates, either party to the
contract is required to make additional margin payments, known as "variation
margin," to cover any additional obligation it may have under the contract. A
Fund will not commit more than 5% of its total assets to initial margin
deposits on futures contracts and premiums on options on futures contracts
except that with respect to Worldwide Balanced Fund, Worldwide Hard Assets
Fund and Worldwide SmallCap Fund, margin deposits for futures positions
entered into for BONA FIDE hedging purposes, as such term is defined in the
Commodity Exchange Act, are excluded from the 5% limitation.

The Funds may write, purchase or sell put and call options on financial
futures contracts and, in addition, the Gold and Natural Resources Fund and
Worldwide Hard Assets Fund may write, purchase or sell put and call options on
commodity futures contracts. The Funds may write only covered put and call
options. An option on a futures contract gives the purchaser the right, but
not the obligation, in return for the premium paid, to assume a position in a
specified underlying futures contract (which position may be a long or short
position) at a specified exercise price during the option exercise period. The
writer of an option is obligated to assume a position in a specified futures
contract if the option is exercised.

In establishing a position in a futures contract, which may be a long or short
position, cash or high quality debt instruments equal in value to the current
value of the underlying securities less the margin requirement will be
segregated, as may be required, with the Fund's Custodian to ensure that the
Fund's position is unleveraged. This segregated account will be marked-to-
market daily to reflect changes in the value of the underlying futures
contract. Certain exchanges do not permit trading in particular commodities at
prices in excess of daily price fluctuation limits set by the exchange, and
thus the Gold and Natural Resources Fund and Worldwide Hard Assets Fund could
be prevented from liquidating their positions and thus be subjected to losses.
Trading in futures contracts traded on foreign commodity exchanges may be
subject to the same or similar risks as trading in foreign securities. See
"Risk Factors--Foreign Securities."

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HEDGING AND OTHER INVESTMENT TECHNIQUES AND STRATEGIES

Options and futures contracts can be used by the Funds as part of various
hedging techniques and strategies.

Worldwide SmallCap Fund does not currently, and has no present intention to
use hedging as an investment strategy, however, the Fund may do so in the
future.

When the Funds intend to acquire securities (or gold bullion or coins in the
case of the Gold and Natural Resources Fund and Worldwide Hard Assets Fund)
for their portfolios they may use call options or futures contracts as a means
of fixing the price of the security (or gold) they intend to purchase at the
exercise price (in the case of an option) or contract price (in the case of a
futures contract). An increase in the acquisition cost would be offset, in
whole or part, by a gain on the option or futures contract. Options and
futures contracts requiring delivery of a security may also be useful to the
Funds in purchasing a large block of securities that would be more difficult
to acquire by direct market purchases. If the Funds hold a call option rather
than the underlying security itself, the Funds are partially protected from
any unexpected decline in the market price of the underlying security and in
such event could allow the call option to expire, incurring a loss only to the
extent of the premium paid for the option. Using a futures contract would not
offer such partial protection against market declines and the Funds would
experience a loss as if they had owned the underlying security.

To protect against anticipated declines in the value of the Funds' investment
holdings the Funds may use options, forward and futures contracts, structured
notes (Worldwide Hard Assets Fund), and similar investments (commonly referred
to as derivatives) as a defensive technique to protect the value of an asset
the Adviser (or Sub-Adviser) deems desirable to hold for tax or other
considerations or for investment reasons. One defensive technique involves
selling a futures or forward contract, purchasing a put option or entering
into a swap agreement whose value is expected to be inversely related to the
security or asset being hedged. If the anticipated decline in the value of the
asset occurs, it would be offset, in whole or part, by a gain on the futures
contract, put option or swap. The premium paid for the put option would reduce
any capital gain otherwise available for distribution when the security is
eventually sold.

The Funds may hedge against changes in the value of the U.S. dollar in
relation to a foreign currency in which portfolio securities of the Funds may
be denominated. A Fund may employ hedging strategies with options and futures
contracts on foreign currencies before the Fund purchases a foreign security,
during the period the Fund holds the foreign security, or between the date the
foreign security is purchased or sold and the date on which payment therefore
is made or received. Hedging against a change in the value of a foreign
currency in the foregoing manner does not eliminate fluctuations in the prices
of portfolio securities or prevent losses if the prices of such securities
decline. Furthermore, such hedging transactions reduce or preclude the
opportunity for gain if the value of the hedged currency should change
relative to the U.S. dollar. Last, where the Funds use options and futures in
anticipation of the purchase of a portfolio security to hedge against adverse
movements in the security's underlying currency, but where the purchase of
such security is subsequently deemed undesirable, the Fund may incur a gain or
loss on the option or futures contract.

The Funds may use futures contracts and options, forward contracts and swaps
as part of various investment techniques and strategies, such as creating non-
speculative "synthetic" positions or implementing "cross-hedging" strategies.
A synthetic position is deemed not to be speculative if the position is
covered by segregation of short-term liquid assets. However, since the
financial markets in the developing countries are not as developed as in the
United States, these financial investments may not be available to the Funds
and the Funds may be unable to hedge certain risks or enter into certain
transactions. A "synthetic position" is the duplication of a cash market
transaction when deemed advantageous by the Adviser (or Sub-Adviser) for cost,
liquidity or transactional efficiency reasons. A cash market transaction is
the purchase or sale of a security or other asset for cash. For example, from
time to time, each of the Funds experience large cash inflows which may be
redeemed from the Fund in a relatively short period. In this case, the Fund
currently can leave the amounts uninvested in anticipation of the redemption
or the Fund can invest in securities for a relatively short period, incurring
transaction costs on the purchase and subsequent sale. Alternatively, the Fund
may create a synthetic position by investing in a futures contract on a
security, such as a deutschemark bond or on a securities index gaining
investment exposure to the relevant market while incurring lower overall

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<PAGE>

transaction costs. The Fund would enter into such transactions if the markets
for these instruments were sufficiently liquid and there was an acceptable
degree of correlation to the cash market. By segregating cash the Fund's
futures contract position would generally be no more leveraged or riskier than
if it had invested in the cash market--i.e., purchased securities.

Consistent with the hedging strategy described above, the Funds may invest in
options and futures contracts and options on futures contracts on foreign
currencies for the purpose of hedging against a decline in the value of
certain U.S. Dollar denominated securities or other "cross-hedging"
strategies. "Cross-hedging" involves the use of one currency to hedge against
the decline in the value of another currency. For example, the Funds could
hedge against a currency-related decline in the value of a security
denominated in Deutschemark by taking a short position in the Swiss franc. The
Adviser (or Sub-Adviser) believes that the value of certain U.S. Dollar
denominated debt securities is affected by fluctuations in the value of the
U.S. Dollar relative to foreign currencies. Furthermore, the Adviser (or Sub-
Adviser) believes it can identify those currencies whose value is likely to
move inversely with the value of the U.S. Dollar. By investing a portion of a
Fund's assets in options or futures contracts on those identified currencies,
the Adviser (or Sub-Adviser) believes that it may be able to reduce the Fund's
exposure to declines in the value of U.S. Dollar denominated securities
attributable to currency value fluctuations. The use of such instruments as
described herein involves several risks. First, there can be no assurance that
the prices of such instruments and the hedged security or the cash market
position will move as anticipated. If prices do not move as anticipated a Fund
may incur a loss on its investment, may not achieve the hedging protection it
anticipated and/or incur a loss greater than if had entered into a cash market
position. Second, investments in such instruments may reduce the gains which
would otherwise be realized from the sale of the underlying securities or
assets which are being hedged. Third, positions in such instruments can be
closed out only on an exchange that provides a market for those instruments.
There can be no assurance that such a market will exist for a particular
futures contract or option. If the Fund cannot close out an exchange traded
futures contract or option which it holds, it would have to perform its
contract obligation or exercise its option to realize any profit and would
incur transaction costs on the sale of the underlying assets.

Over-the-counter options, together with repurchase agreements maturing in more
than seven days and other investments which do not have readily available
market quotations are, because of liquidity considerations, limited to 10% of
total net assets of a Fund, except that Worldwide Hard Assets Fund, Worldwide
SmallCap Fund and Worldwide Balanced Fund will be limited to 15% of total net
assets.

In those situations where foreign currency options or futures contracts, or
options on futures contracts may not be readily purchased (or where such
options or contracts may be deemed illiquid) in the primary currency in which
the hedge is desired, the hedge may be obtained by purchasing or selling an
option or futures contract or forward contract on a secondary currency. The
secondary currency will be selected based upon the Adviser's (or Sub-
Adviser's) belief that there exists a significant correlation between the
exchange rate movements of the primary and secondary currencies. This strategy
may be employed with respect to other securities and assets in which the Funds
may invest. For example, because the Gold and Natural Resources Fund invests
in securities whose value is related to the price of gold or other natural
resources, it may use options or futures contracts on gold or other natural
resources or an index as hedging instruments. However, there can be no
assurances that in the case of foreign currencies the exchange rate or the
primary and secondary currencies will move as anticipated or, in the case of
other securities, or generally, that the relationship between the hedged
security and the hedging instrument will continue. If they do not move as
anticipated or the relationship does not continue, a loss may result to the
Funds on their investments in the hedging positions.

See "Futures and Options Transactions" in the Statement of Additional
Information for further information about futures contracts and options,
including tax effects and risks to the Funds.

REPURCHASE AGREEMENTS

The Funds may engage in repurchase agreement transactions. Under the terms of
a typical repurchase agreement, a Fund would acquire an underlying debt
obligation for a relatively short period (usually not more than one week)
subject to an obligation of the seller to repurchase, and the Fund to resell,
the obligation at an agreed upon price and time, thereby determining the

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<PAGE>

yield during the Fund's holding period. The agreement results in a fixed rate
of return that is not subject to market fluctuations during the Fund's holding
period. The Funds will enter into repurchase agreements with respect to
securities in which it may invest with member banks of the Federal Reserve
System or certain non-bank dealers. Under each repurchase agreement the
selling institution will be required to maintain the value of the securities
subject to the repurchase agreement at not less than their repurchase price.
Repurchase agreements could involve certain risks in the event of default or
insolvency of the other party, including possible delays or restrictions upon
a Fund's ability to dispose of the underlying securities. The Adviser (or Sub-
Adviser), acting under the supervision of the Board of Trustees, reviews the
creditworthiness of those non-bank dealers with which the Funds enter into
repurchase agreements to evaluate these risks. See "Repurchase Agreements" in
the Statement of Additional Information.

DEBT SECURITIES

The Funds may invest in debt securities. The market value of debt securities
generally varies in response to changes in interest rates and the financial
condition of each issuer and the value of a Hard Asset if linked to the value
of a Hard Asset. During periods of declining interest rates, the value of debt
securities generally increases. Conversely, during periods of rising interest
rates, the value of such securities generally declines. These changes in
market value will be reflected in the Fund's net asset value.

Debt securities with similar maturities may have different yields, depending
upon several factors, including the relative financial condition of the
issuers. For example, higher yields are generally available from securities in
the lower rating categories of S&P's or Moody's. However, the values of lower-
rated securities generally fluctuate more than those of high grade securities
and lower-rated securities present greater risk of default. High grade means a
rating of A or better by Moody's or S&P's, or of comparable quality in the
judgment of the Adviser (or Sub-Adviser) if no rating has been given by either
service. Many securities of foreign issuers are not rated by these services.
Therefore, the selection of such issuers depends to a large extent on the
credit analysis performed by the Adviser (or Sub-Adviser).

New issues of certain debt securities are often offered on a when-issued
basis, that is, the payment obligation and the interest rate are fixed at the
time the buyer enters into the commitment, but delivery and payment for the
securities normally take place after the date of the commitment to purchase.
The value of when-issued securities may vary prior to and after delivery
depending on market conditions and changes in interest rate levels. However,
the Funds will not accrue any income on these securities prior to delivery.
The Funds will maintain in a segregated account with their Custodian an amount
of cash or high quality debt securities equal (on a daily marked-to-market
basis) to the amount of its commitment to purchase the when-issued securities.

REAL ESTATE SECURITIES

Although Gold and Natural Resources Fund and Worldwide Hard Assets Fund will
not invest in real estate directly, each of these Funds may invest a
percentage of its assets in equity securities of real estate investment trusts
("REITs") and other real estate industry companies or companies with
substantial real estate investments. Worldwide Hard Assets Fund may invest up
to 50% of its assets in such securities. Gold and Natural Resources Fund and
Worldwide Hard Assets Fund are therefore subject to certain risks associated
with direct ownership of real estate and with the real estate industry in
general. These risks include, among others: possible declines in the value of
real estate; possible lack of availability of mortgage funds; extended
vacancies of properties; risks related to general and local economic
conditions; overbuilding; increases in competition, property taxes and
operating expenses; changes in zoning laws; costs resulting from the clean-up
of, and liability to third parties for damages resulting from, environmental
problems; casualty or condemnation losses; uninsured damages from floods,
earthquakes or other natural disasters; limitations on and variations in
rents; and changes in interest rates.

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gains by selling properties that have appreciated in value. Mortgage REITs
invest the majority of their assets in real estate mortgages and derive income
from the collection of interest payments. REITs are not taxed on income
distributed to shareholders provided they comply with several requirements of
the Internal Revenue Code of 1986, as amended (the "Code").

Investing in REITs involves certain unique risks in addition to those risk
associated with investing in the real estate industry in general. Equity REITs
may be affected by changes in the value of the underlying property owned by
the REITs, while mortgage REITs may be affected by the quality of any credit
extended. REITs are dependent upon management skills, are not diversified, and
are subject to the risks of financing projects. REITs are subject to heavy
cash flow dependency, default by borrowers, self-liquidation and the
possibilities of failing to qualify for the exemption from tax for distributed
income under the Code. REITs (especially mortgage REITs) are also subject to
interest rate risk (i.e., as interest rated rise, the value of the REIT may
decline).

ASSET-BACKED SECURITIES

Worldwide SmallCap Fund, Worldwide Balanced Fund, Worldwide Hard Assets Fund
and Worldwide Bond Fund may invest in asset-backed securities. Asset-backed
securities represent interests in pools of consumer loans (generally unrelated
to mortgage loans) and most often are structured as pass-through securities.
Interest and principal payments ultimately depend on payment of the underlying
loans by individuals, although the securities may be supported by letters of
credit or other credit enhancements. The value of asset-backed securities may
also depend on the creditworthiness of the servicing agent for the loan pool,
the originator of the loans, or the financial institution providing the credit
enhancement. The issuer of asset-backed securities may not, in certain
instances, be able to perfect its security interest in the underlying
collateral.

COLLATERALIZED MORTGAGE OBLIGATIONS ("CMOS")

The Funds (except Gold and Natural Resources Fund) may invest in CMOs. CMOs
are fixed-income securities which are collateralized by pools of mortgage
loans created by commercial banks, savings and loan institutions, private
mortgage insurance companies and mortgage bankers. In effect, CMOs "pass
through" the monthly payments made by individual borrowers on their mortgage
loans. Timely payment of interest and principal (but not the market value) of
these pools is supported by various forms of insurance or guarantees issued by
U.S. Government agencies, private issuers and the mortgage poolers. The Funds
may buy CMOs without insurance or guarantees if, in the opinion of the
Adviser, the pooler is creditworthy or if rated A or better by S&P or Moody's.
S&P and Moody's assign the same rating classifications to CMOs as they do to
bonds. Prepayments of the mortgages included in the mortgage pool may
influence the yield of the CMO. In addition, prepayments usually increase when
interest rates are decreasing, thereby decreasing the life of the pool. As a
result, reinvestment of prepayments may be at a lower rate than that on the
original CMO. In the event that any CMOs are determined to be investment
companies, the Funds will be subject to certain limitations under the 1940
Act.

LOANS OF PORTFOLIO SECURITIES

The Funds may lend to broker-dealers portfolio securities with an aggregate
market value of up to one-third of its total assets. Such loans must be
secured by collateral (consisting of any combination of cash, U.S. Government
securities or irrevocable letters of credit) in an amount at least equal (on a
daily marked-to-market basis) to the current market value of the securities
loaned. The Funds may terminate the loans at any time and obtain the return of
the securities loaned within one business day. The Funds will continue to
receive any interest or dividends paid on the loaned securities and will
continue to have voting rights with respect to the securities. The Funds might
experience risk of loss if the broker-dealer with which it has engaged in a
portfolio loan transaction breaches its agreement with the Funds.

BORROWING

The Funds may borrow up to 30% of the value of their net assets to increase
their holdings of portfolio securities. Under the Act, each Fund is required
to maintain continuous asset coverage of 300% with respect to such borrowings
and to sell (within three days) sufficient portfolio holdings to restore such
coverage if it should decline to less than 300% because of market

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<PAGE>

fluctuations or other factors, even if the sale would be disadvantageous from
an investment standpoint. Leveraging by means of borrowing will exaggerate the
effect of any increase or decrease in the value of portfolio securities on a
Fund's net asset value, and money borrowed will be subject to interest and
other costs (which may include commitment fees and/or the cost of maintaining
minimum average balances) which may or may not exceed the investment return
received from the securities purchased with borrowed funds. It is anticipated
that such borrowings would be pursuant to a negotiated loan agreement with a
commercial bank or other institutional lender.

COMMERCIAL PAPER

Worldwide SmallCap Fund, Worldwide Hard Assets Fund and Worldwide Balanced
Fund may invest in commercial paper which is indexed to certain specific
foreign currency exchange rates. See "Risk Factors--Commercial Paper" in the
Statement of Additional Information.

DIRECT INVESTMENTS

Worldwide SmallCap Fund, Worldwide Hard Assets Fund and Worldwide Balanced
Fund may invest up to 10% of their total assets in direct investments;
however, the Funds do not currently intend to invest more than 5% of their
total net assets in direct investments. For more information, see "Risk
Factors--Direct Investments" in the Statement of Additional Information.

TEMPORARY DEFENSIVE STRATEGIES

During periods of less favorable economic and/or market conditions, the Funds
may make substantial investments for temporary defensive purposes in
obligations of the U.S. Government, debt obligations of one or more foreign
governments, certificates of deposit, time deposits, bankers' acceptances,
high grade commercial paper and repurchase agreements.

LIMITING INVESTMENT RISKS

While an investment in any of the Funds is not without risk, each Fund follows
certain policies in managing its investments which may help to reduce risk.
These policies may not be changed without shareholder approval. The following
are some of the more significant investment limitations:

1. A Fund will not invest more than 10% of the value of its total net
assets in securities which are "illiquid" (including repurchase
agreements which mature in more than seven days and over-the-counter
foreign currency options), except that Worldwide SmallCap Fund,
Worldwide Hard Assets Fund and Worldwide Balanced Fund will not invest
more than 15% of the value of their total net assets in such securities.

2. A Fund will not purchase more than 10% of any class of securities of any
issuer, including more than 10% of its outstanding voting securities,
except that Worldwide SmallCap Fund, Worldwide Hard Assets Fund and
Worldwide Balanced Fund may purchase more than 10% of any non-voting
class of securities and Worldwide Balanced Fund and Worldwide Bond Fund
will not invest more than 25% of the value of their total assets in
securities of any one industry.

3. A Fund will not invest more than 10% of its total assets in securities
of other investment companies.

Further information regarding these and other of the Funds' investment
policies and restrictions is provided in the Statement of Additional
Information.

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MANAGEMENT

TRUSTEES

The management of the Funds' business and affairs is the responsibility of the
Board of Trustees. For information on the Trustees and Officers of the Funds,
see "Trustees and Officers" in the Statement of Additional Information.

INVESTMENT ADVISER, MANAGER AND ADMINISTRATOR

Van Eck Associates Corporation, located at 99 Park Avenue, New York, New York
10016, serves as investment adviser and manager to the Gold and Natural
Resources Fund, Worldwide Hard Assets Fund and Worldwide Bond Fund pursuant to
an Advisory Agreement with the Trust. The Adviser manages the investment
operations of the Funds and furnishes the Funds with a continuous investment
program which includes determining which securities should be bought, sold or
held.

Madis Senner--Portfolio Manager of Worldwide Bond Fund is responsible for
managing the Fund's portfolio of investments. Before joining Van Eck, Mr.
Senner was a global bond manager with Chase Manhattan Private Bank. Prior to
that, he was President of Sunray Securities, Inc., an investment management
firm that he founded, and, before that, was a global fixed income manager with
Clemente Capital, Inc. in New York City. Mr. Senner has 12 years experience in
the investment business.

Worldwide Hard Assets Fund is managed by an asset allocation committee (the
Hard Assets team) which is chaired by Mr. John van Eck. The members of the
asset allocation committee for the Fund are listed below:

John C. van Eck--Co-Portfolio Manager of the Fund and Chairman of the Fund's
asset allocation committee, is responsible for managing the Fund's portfolio
of investments. He is Chairman of the Adviser and previously served as the
portfolio manager of International Investors Gold Fund. Mr. van Eck has over
45 years of investment experience.

Derek S. van Eck--Serves as Co-Portfolio Manager and a member of the asset
allocation committee for the Fund. He is Director of Global Investments and
Executive Vice President of the Adviser and an officer and portfolio manager
of other mutual funds advised by the Adviser.

William Trebilcock--Serves as an analyst and a member of the asset allocation
committee for the Global Hard Assets Fund. Mr. Trebilcock serves as Director
of Mining Research for the Adviser. Mr. Trebilcock has 28 years of experience
in his field.

Madis Senner--Serves as an analyst and a member of the asset allocation
committee for the Fund. Mr. Senner's biography is set forth above.

Kevin Reid--Serves as an analyst and a member of the asset allocation
committee for the Fund. Mr. Reid is Director of Real Estate Research at the
Adviser and an officer of the Fund.

Lucille Palermo--Serves as an analyst and a member of the asset allocation
committee for the Fund. She is Associate Director, Mining Research of the
Adviser and an officer and portfolio manager of other mutual funds advised by
the Adviser. Ms. Palermo has 20 years of experience in the investment
business.

Gold and Natural Resources Fund is managed by Henry J. Bingham and Derek S.
van Eck. The gold and precious meals portion of the portfolio is managed by
Mr. Bingham and the natural resources portion is managed by Mr. Derek van Eck
and the other members of the Hard Assets team.

Henry J. Bingham, Executive Vice President of Van Eck Investment Trust, is
responsible for managing the gold and precious metals portion of Gold and
Natural Resources Fund's portfolio of investments and has been serving in such
capacity since the Fund commenced operations. He is Executive Managing
Director of the Adviser and President of the International Investors Gold Fund
series of Van Eck Funds which is advised by the Adviser.

Pictet International Management Limited ("PIML"), Cutlers Gardens, 5
Devonshire Square, London, United Kingdom EC2M 4LD, serves as sub-investment
adviser to the Worldwide SmallCap Fund pursuant to a Sub-Investment Advisory
Agreement with the Adviser. PIML manages the investment operations of the
Worldwide SmallCap Fund and furnishes the Fund with a continuous investment
program that includes which securities should be bought, sold or held. The
Adviser manages and administers the business and affairs of the Fund. As
compensation for its services, PIML is paid a monthly fee at an annual rate of
.50% of

23
<PAGE>

average daily net assets by the Adviser from the advisory fee it receives from
the Fund. PIML does not serve as an investment adviser to other registered
investment companies with similar investment mandates as that of the Worldwide
SmallCap Fund.

PIML is an operating company of Pictet (London) Limited, an affiliate of
Pictet & Cie ("Pictet"). Pictet was founded in 1805 and is the leading private
bank in Switzerland. Pictet is the largest specialist investment bank
domiciled in Europe. Pictet has a worldwide network of offices employing over
200 investment professionals in Geneva, London, Zurich, Luxembourg, Hong Kong,
Tokyo, Montreal and Nassau. PIML has access to all of Pictet's investment
infrastructure. As of December 31, 1994, total assets under management by
Pictet and its affiliates, including PIML, on behalf of all clients, amounted
to approximately $40 billion.

PIML assigns a team of managers led by a Chief Investment Officer. The primary
portfolio managers for the Worldwide SmallCap Fund are listed below.

Fabien Pictet--Investment Director of the Fund has been serving in such
capacity since the Fund commenced operations. Mr. Pictet, a Director of PIML,
joined PIML in 1986 and has been responsible for establishing PIML's
international small companies and emerging market programs. Prior to joining
PIML, Mr. Pictet spent three years as an Assistant Vice President with Merrill
Lynch in New York, working in international institutional sales.

Nicholas Johnson--PIML's Chief Investment Officer and Chief Investment Officer
of the Fund has been serving in such capacity since the Fund commenced
operations. Mr. Johnson is responsible for all aspects of the investment
process including global asset allocation. Prior to joining PIML in 1993, Mr.
Johnson specialized in Japanese and Asian investments at Invesco MIM, where he
had been head of international investment responsible for investment
operations outside of North America.

Jonathan Neill--Senior Investment Manager of the Fund has been serving in such
capacity since the Fund commenced operations. Mr. Neill is jointly responsible
for worldwide small companies and emerging markets. Prior to joining PIML in
1990, Mr. Neill worked for two years with Mercury Asset Management as an
investment manager responsible for specialist international funds.

Douglas Polunin--Senior Investment Manager of the Fund has been serving in
such capacity since the Fund commenced operations. Mr. Polunin joined PIML in
1989 and is jointly responsible for worldwide small companies and emerging
markets. Prior to joining PIML, Mr. Polunin spent two and a half years with
the Union Bank of Switzerland in London where he was in charge of the
Discretionary Portfolio Management section. Before that, he spent four years
as an equity analyst with UBS in Switzerland.

Fiduciary International Inc. ("FII"), Two World Trade Center, New York, New
York 10048, serves as sub-investment adviser to the Worldwide Balanced Fund
pursuant to a Sub-Investment Advisory Agreement with the Trust. FII manages
the investment operations of the Worldwide Balanced Fund and furnishes the
Fund with a continuous investment program that includes which securities
should be bought, sold or held. The Adviser manages and administers the
business and affairs of the Fund. As compensation for its services, FII is
paid a monthly fee at an annual rate of .50% of average daily net assets by
the Adviser from the advisory fee it receives from the Fund. FII serves as an
investment adviser to other registered investment companies.

FII is an indirect subsidiary of Fiduciary Trust Company International
("FTCI"). FTCI is a New York State chartered bank specializing in investment
and administration of assets for pensions and other institutional accounts
including individuals and families. FII has access to all of FTCI's investment
infrastructure. FTCI began investing globally in the 1960's and serves its
worldwide investment management and custody clients from offices in New York,
Los Angeles, Miami, Washington, D.C., London, Geneva and Hong Kong. FTCI has
over 60 investment professionals. FTCI has over 30 years of experience in
global management with over $13 billion managed under the global balanced
discipline. As of December 31, 1994, total assets under management by FII and
its parent organization FTCI, on behalf of all clients, amounted to over $27
billion.

24
<PAGE>

FII assigns a team of managers led by a global strategist, which includes a
global equity manager and a global fixed-income manager, to manage the Fund's
portfolio of investments. The team consults with the FTCI research department,
which includes international analysts who specialize in the equity markets of
Japan, Europe, the Pacific Basin and Latin America, when making investment
decisions. The three primary portfolio managers for the Worldwide Balanced
Fund (the "Fund") are listed below;

Anne M. Tatlock--Global Strategist of the Fund has been serving in such
capacity since the Fund commenced operations. Ms. Tatlock joined FTCI in 1984
and is currently President of the company where she is responsible for
managing institutional investment management. Ms. Tatlock is head of the
Institutional Investment Department and a member of the Board of Directors,
the International Investment Committee and the Investment Policy Committee at
FTCI.

Brian Hopkinson--FII's Portfolio Manager of the Fund has been serving in such
capacity since the Fund commenced operations. Mr. Hopkinson joined FTCI in
1986 after 12 years with Legal Assurance Society, Ltd. and C.S. Investments.
He is a Senior Vice President and Senior Global Equity Manager of FTCI as well
as a member of the International Investment Committee at FTCI.

Anthony S. Gould--Fixed Income Portfolio Manager of the Fund has been serving
in such capacity since July, 1995. Mr. Gould joined FTCI in 1995 following six
and a half years at BZW Investment Management, the asset management subsidiary
of the Barclays Group. He is a Vice President of FTCI where he is responsible
for the management of global and international fixed income portfolios for
institutions.

Gold and Natural Resources Fund and Worldwide Bond Fund each pays the Adviser
a monthly fee at the annual rate of 1% of the first $500 million of the
average daily net assets of the Fund, .90 of 1% of the next $250 million of
the average daily net assets and .70 of 1% of the average daily net assets in
excess of $750 million. The Worldwide SmallCap Fund and Worldwide Balanced
Fund each pays the Adviser a monthly fee at the annual rate of .75 of 1% of
average daily net assets. Worldwide Hard Assets Fund pays the Adviser a
monthly fee at the annual rate of 1.00% of average daily net assets which
includes the fee paid to the Adviser for accounting and administrative
services. Van Eck Associates Corporation also performs accounting and
administrative services for the Worldwide SmallCap Fund, and Worldwide
Balanced Fund and is paid a fee at an annual rate of .25 of 1% of the Fund's
average daily net assets. The advisory fees paid to the Adviser with respect
to the Funds are higher than the fees paid by most investment companies
because of the complexities of managing these types of funds (such as
following trends, industries and companies in many different countries and
stock and bond markets throughout the world) but are comparable to the fees
charged to other investment companies with similar objectives for comparable
services.

With respect to the Funds, the Adviser may from time to time, at its
discretion, waive the management fee and/or agree to pay some or all expenses
of the Funds. This has the effect of increasing the yield and total return of
the Fund during this period.

The Adviser also acts as investment adviser or sub-investment adviser to other
mutual funds registered with the Securities and Exchange Commission under the
Act and manages or advises managers of portfolios of pension plans and others.

John C. van Eck, Chairman and President of the Trust, and members of his
immediate family own 100% of the voting stock of the Adviser. At December 31,
1994 total aggregate assets under the management of Van Eck Associates
Corporation were approximately $1.8 billion.

The Funds sell their shares to various insurance company variable annuity and
variable life insurance separate accounts as a funding vehicle for such
separate accounts. The Funds currently do not foresee any disadvantages to
variable annuity and variable life contract owners arising out of the fact
that the Funds offer their shares to separate accounts of various insurance
companies to serve as the investment medium for their variable products.
Nevertheless, the Board of Trustees intends to monitor events in order to
identify any material irreconcilable conflicts which may possibly arise, and
to determine what action, if any, should be taken in response to such
conflicts. If such a conflict were to occur, one or more insurance companies'
separate accounts might be required to withdraw its/their investments in one
or more Funds and shares of another fund may be

25
<PAGE>

substituted. This might force a Fund to sell securities at disadvantageous
prices. In addition, the Board of Trustees may refuse to sell shares of a Fund
to any separate account or may suspend or terminate the offering of shares of
a Fund if such action is required by law or regulatory authority or is in the
best interests of the shareholders of a Fund.

EXPENSES

Each Fund bears all expenses of its operation other than those incurred by the
Adviser under its Advisory Agreement with the Trust. In particular, the Funds
pay: investment advisory fees, custodian fees and expenses, legal, accounting
and auditing fees, brokerage fees, taxes, expenses of preparing prospectuses
and shareholder reports for existing shareholders, registration fees and
expenses (including compensation of the Adviser's employees in relation to the
time spent on such matters), expenses of the transfer and dividend disbursing
agent, the compensation and expenses of Trustees who are not otherwise
affiliated with the Trust, the Adviser or Sub-Adviser or any of their
affiliates, and any extraordinary expenses. Expenses incurred jointly by the
Funds are allocated among the Funds in a manner determined by the Trustees to
be fair and equitable. Under the Advisory Agreement, the Adviser provides the
Funds with office space, facilities and simple business equipment and provides
the services of executive and clerical personnel for administering the affairs
of the Funds. The Adviser or Sub-Adviser compensates Trustees of the Trust if
such persons are employees or affiliates of the Adviser or Sub-Adviser or
their affiliates. The Adviser will, pursuant to the investment advisory
agreement to be approved by shareholders, require each Fund to reimburse it
for its costs for trading portfolio securities and maintaining books and
records of each Fund, including general ledger and daily net asset value
accounting.

The organizational expenses which were initially paid by the Adviser, were
reimbursed to the Adviser by the Funds and are being amortized by the Funds
over sixty successive equal monthly installments.

HOW TO BUY SHARES

Shares of the Funds are offered only for purchase by separate accounts of
insurance companies as an investment medium for Contracts.

Van Eck Securities Corporation (the "Distributor"), located at 99 Park Avenue,
New York, New York 10016, a wholly-owned subsidiary of Van Eck Associates
Corporation, has entered into a Distribution Agreement with the Trust. The
Distributor receives no compensation in connection with the sale of shares of
any Fund.

Shares of the Funds are sold at the public offering price which is net asset
value next computed after receipt of a purchase order, provided that the
purchase order is received by the Trust or the insurance company before 4:00
p.m. Eastern time. The net asset value for each Fund is computed as of the
close of business on the New York Stock Exchange which is normally 4:00 p.m.
Monday through Friday, exclusive of national business holidays. The assets of
the Funds are valued at market value or, if market value is not ascertainable,
at fair market value as determined in good faith by the Board of Trustees.

The Funds may invest in securities or futures contracts listed on foreign
exchanges which trade on Saturdays or other customary United States national
business holidays (i.e., days on which the Funds are not open for business).
Consequently, since the Funds will compute their net asset values only Monday
through Friday, exclusive of national business holidays, the net asset values
of shares of the Funds may be significantly affected on days when an investor
has no access to the Funds.

The sale of shares will be suspended during any period when the determination
of net asset value is suspended and may be suspended by the Board of Trustees
whenever the Board judges it in that Fund's best interest to do so.
Certificates for shares of the Funds will not be issued.

26
<PAGE>

DIVIDENDS AND DISTRIBUTIONS

The Funds intend to distribute their net investment income in May and November
and any net realized capital gains resulting from the investment activity
annually in May.

All dividends and capital gains distributions paid on shares of the Funds are
automatically reinvested in additional shares of that Fund on the dividend
payable date at the net asset value determined at the close of business on the
reinvestment price date. The fiscal year of each of the Funds ends on April
30.

HOW TO REDEEM SHARES

Shares of the Funds are redeemed at their net asset value next determined
after receipt of the order to redeem without the imposition of any sales
commission or redemption charge. However, certain deferred sales charges and
other charges may apply under the terms of the Contracts, which charges are
described in the Contract prospectus. Payment for the redemption of shares is
made by the Fund to the separate account in cash within seven days after
tender in proper form, except under unusual circumstances as determined by the
SEC. The redemption price will be the net asset value next determined after
the receipt by the Trust or insurance company of a request in proper form
provided the request is received prior to 4:00 p.m. Eastern time. The market
value of the securities in the Funds is subject to daily fluctuations and the
net asset value of the Funds' shares will fluctuate accordingly. Therefore,
the redemption value may be more or less than the original purchase price for
such shares.

FEDERAL TAXATION

Each Fund intends to qualify as a "regulated investment company" ("RIC") under
the Internal Revenue Code (the "Code") and will not pay federal income tax to
the extent that it distributes its net taxable investment income and capital
gains.

Section 817(h) of the Code provides that certain variable contracts, based
upon one or more segregated asset accounts of a life insurance company, will
not be treated as annuity, endowment or life insurance contracts for any
period during which the investments made by such accounts are not adequately
diversified. The regulations promulgated under section 817(h) of the Code,
specify various investment diversification requirements. In addition, the
regulations provide that an investment by a segregated asset account of a life
insurance company in a qualifying RIC is not treated as a single investment.
Instead, a pro rata portion of each asset of the RIC is treated as an asset of
the segregated asset account. Each Fund intends to invest so as to enable the
Contracts to satisfy the diversification requirements imposed by Section
817(h) of the Code and the applicable regulations.

The tax treatment of payments made by a separate account to a Contract holder
is described in the Contract prospectus.

DESCRIPTION OF THE TRUST

Van Eck Worldwide Insurance Trust (the "Trust") is an open-end management
investment company organized as a "business trust" under the laws of the
Commonwealth of Massachusetts on January 7, 1987. The Trust commenced
operations on September 7, 1989. Effective April 12, 1995, Van Eck Investment
Trust changed its name to Van Eck Worldwide Insurance Trust.

The Trustees of the Trust have authority to issue an unlimited number of
shares of beneficial interest of each Fund, $.001 par value. To date, five
series or Funds of the Trust have been authorized, which shares constitute the
interests in the Gold and Natural Resources Fund, Worldwide Bond Fund,
Worldwide SmallCap Fund, Worldwide Hard Assets Fund and Worldwide Balanced
Fund, described herein. Shares of Worldwide SmallCap Fund are not currently
offered to the public.

27
<PAGE>

The Gold and Natural Resources Fund is classified as a diversified fund and
Worldwide Bond Fund, Worldwide SmallCap Fund, Worldwide Hard Assets Fund and
Worldwide Balanced Fund are classified as non-diversified funds under the Act.
A diversified fund is a fund which meets the following requirements: At least
75% of the value of its total assets is represented by cash and cash items
(including receivables), Government securities, securities of other investment
companies and other securities for the purpose of this calculation limited in
respect of any one issuer to an amount not greater than 5% of the value of the
Fund's total assets and to not more than 10% of the outstanding voting
securities of such issuer. A non-diversified fund is any fund other than a
diversified fund. A "series" is a separate pool of assets of the Trust which
is separately managed and which may have different investment objectives from
those of another series. The Trustees have the authority, without the
necessity of a shareholder vote, to create any number of new series.

Each share of a Fund has equal dividend, redemption and liquidation rights and
when issued is fully paid and non-assessable by the Trust. Under the Trust's
Master Trust Agreement, no annual or regular meeting of shareholders is
required. Thus, there will ordinarily be no shareholder meetings unless
required by the Act. The Trust held an initial meeting of shareholders on
April 1, 1991, at which shareholders elected the Board of Trustees, approved
the Advisory Agreement and ratified the selection of the Trust's independent
accountants.The Trustees are a self-perpetuating body unless and until fewer
than 50% of the Trustees, then serving as Trustees, are Trustees who were
elected by shareholders. At that time another meeting of shareholders will be
called to elect additional Trustees. On any matter submitted to the
shareholders, the holder of each Trust share is entitled to one vote per share
(with proportionate voting for fractional shares). Under the Master Trust
Agreement, any Trustee may be removed by vote of two-thirds of the outstanding
Trust shares; and holders of ten percent or more of the outstanding shares of
the Trust can require Trustees to call a meeting of shareholders for purposes
of voting on the removal of one or more Trustees. Shareholders of all Funds
are entitled to vote on matters affecting all of the Funds (such as the
elections of Trustees and ratification of the selection of the Trust's
independent accountants). On matters affecting an individual Fund a separate
vote of that Fund is required. Shareholders of a Fund are not entitled to vote
on any matter not affecting that Fund but require a separate vote of one of
the other Funds. In accordance with the Act, under certain circumstances the
Trust will assist shareholders in communicating with other shareholders in
connection with calling a special meeting of shareholders. The insurance
company separate accounts, as the sole shareholders of the Funds, have the
right to vote Fund shares at any meeting of shareholders. However, the
Contracts may provide that the separate accounts will vote Fund shares in
accordance with instructions received from Contract holders. See the
applicable Contract prospectus for information regarding Contract holders'
voting rights.

Under Massachusetts law, the shareholders of the Trust could, under certain
circumstances, be held personally liable for the obligations of the Trust.
However, the Master Trust Agreement of the Trust disclaims shareholder
liability for acts or obligations of the Trust and requires that notice of
such disclaimer be given in each agreement, obligation or instrument entered
into or executed by the Trust or the Trustees. The Master Trust Agreement
provides for indemnification out of the Trust's property for all losses and
expenses of any shareholder held personally liable for the obligations of the
Trust. Thus, the risk of a shareholder incurring financial loss on account of
shareholder liability is limited to circumstances in which the Trust itself
would be unable to meet its obligations. The Funds' Adviser believes that, in
view of the above, the risk of personal liability to shareholders is remote.

28
<PAGE>

ADDITIONAL INFORMATION

ADVERTISING

From time to time the Funds may use various media to advertise performance.
Past performance is not necessarily indicative of future performance.

Worldwide Bond Fund may advertise performance in terms of 30-day yield, which
is computed by dividing the net investment income per share earned during the
30 days by the offering price per share on the last day of the period. Yield
of the Fund is a function of the kind and quality of the instruments in the
Fund's portfolio, maturity, operating expenses and market conditions.

The Funds may advertise performance in terms of average annual total return,
which is computed by finding the average annual compounded rates of return
over a period that would equate the initial amount invested to the ending
redeemable value. The calculation assumes the maximum sales charge (currently,
the Funds do not impose a sales charge on investments) is deducted from the
initial $1,000 payment and assumes all dividends and distributions by the
Funds are reinvested on the reinvestment dates during the period, and includes
all recurring fees that are charged to all shareholder accounts. In addition,
the Funds may advertise aggregate total return for a special period of time
which is determined by ascertaining the percentage change in the net asset
value of shares of a Fund initially purchased assuming reinvestment of
dividends and capital gains distribution on such shares without giving effect
to the length of time of the investment. Sales loads and other non-recurring
expenses may be excluded from the calculation of rates of return with the
result that such rates may be higher than if such expenses and sales loads
were included. All other fees will be included in the calculation of rates of
return.

The Funds may quote performance results from recognized services and
publications which monitor the performance of mutual funds and the Funds may
compare their performance to various published historical indices. Micropal,
Ltd., a worldwide mutual fund performance evaluation service, is one such
rating agency. Lipper Analytical Services is another such rating agency. The
Lipper performance analysis assumes reinvestment of capital gains and
distributions, but does not give effect to sales charges or taxes. Gold and
Natural Resources Fund is rated in the "Gold Oriented Funds" category,
Worldwide Bond Fund in the "World Income Funds" category and Worldwide
Balanced Fund is rated in the "Balanced Funds" category. The Morgan Stanley
Capital International Indices and the Salomon Brothers World Global Bond Index
are two such indices to which the Worldwide Bond Fund and Worldwide Balanced
Fund may be compared, and the Gold and Natural Resources Fund may be compared
to indices such as the historical price of gold, the Standard & Poor's 500 or
the Morgan Stanley Gold Mines Index. For a further discussion of advertising
see "Performance" in the Statement of Additional Information.

For further information about the Funds, please call or write to your
insurance company or call toll free (800) 221-2220 (in New York call (212)
687-5200 or write to the Funds at the cover page address.

CUSTODIAN

The Custodian of the assets of the Trust is Bankers Trust Company, New York,
New York.

INDEPENDENT ACCOUNTANTS

Coopers & Lybrand L.L.P., New York, New York provides audit services,
consultation and advice with respect to financial information in the Trust's
filings with the Securities and Exchange Commission, consults with the Trust
on accounting and financial report matters and prepares the Trust's tax
return.

COUNSEL

Goodwin, Procter & Hoar, One Exchange Place, Boston, Massachusetts acts as
Counsel for the Trust.

29
<PAGE>

GOLD AND NATURAL
RESOURCES FUND

WORLDWIDE BOND FUND

WORLDWIDE SMALLCAP FUND

WORLDWIDE HARD ASSETS FUND

WORLDWIDE BALANCED FUND

Shares of the Funds are offered only to separate accounts of various insurance
companies to fund the benefits of variable life policies and variable annuity
policies. This Prospectus sets forth concisely information about the Trust and
Funds that you should know before investing. It should be read in conjunction
with the prospectus for the Contract which accompanies this Prospectus and
should be retained for future reference. The Contracts involve certain expenses
not described in this Prospectus and also may involve certain restrictions or
limitations on the allocation of purchase payments or Contract values to one or
more Funds. In particular, certain Funds may not be available in connection
with a particular Contract or in a particular state. See the applicable Contract
prospectus for information regarding expenses of the Contract and any applicable
restrictions or limitations with respect to the Funds.

Van Eck Worldwide Insurance Trust
99 Park Avenue, New York, NY 10016

[LOGO]VAN ECK GLOBAL
THE UNUSUAL FUNDS

September 1, 1995
As Revised on October 3, 1995

VAN ECK
WORLDWIDE
INSURANCE TRUST
PROSPECTUS

Gold and Natural
Resources Fund

Worldwide Bond Fund

Worldwide SmallCap Fund

Worldwide Hard Assets Fund

Worldwide Balanced Fund

[MAP OF THE WORLD]

[LOGO]VAN ECK GLOBAL
THE UNUSUAL FUNDS

<PAGE>

VAN ECK WORLDWIDE INSURANCE TRUST
99 PARK AVENUE, NEW YORK, N.Y. 10016
(212) 687-5200
- --------------------------------------------------------------------------------
Van Eck Worldwide Insurance Trust (the "Trust") is an open-end management
investment company currently consisting of five separate funds: Gold and
Natural Resources Fund, Worldwide Bond Fund, Worldwide SmallCap Fund, Worldwide
Hard Assets Fund and Worldwide Balanced Fund (the "Funds"). Shares of the Funds
are offered only to separate accounts of various insurance companies to fund the
benefits of variable life insurance and variable annuity policies ("Contracts").
Each Fund has specific investment objectives. Shares of Worldwide SmallCap Fund
are not currently offered to the public.
- --------------------------------------------------------------------------------

TABLE OF CONTENTS
<TABLE>
<CAPTION>

<S> <C>
General Information................... 2
Investment Objectives and Policies.... 2
Risk Factors.......................... 5
Foreign Securities.................... 5
Foreign Currency Transactions......... 6
Futures and Options Transactions...... 7
Repurchase Agreements................. 8
Mortgage-Backed Securities............ 8
Real Estate Securities................ 8
Commercial Paper...................... 8
Direct Investments.................... 9
Investment Restrictions............... 10
Investment Advisory Services.......... 12
The Distributor....................... 14
Portfolio Transactions and Brokerage.. 14
Trustees and Officers................. 16
Principal Shareholders................ 18
Valuation of Shares................... 18
Taxes................................. 19
Performance........................... 20
Additional Information................ 21
Financial Statements.................. 21
Appendix.............................. 22
</TABLE>

This Statement of Additional Information is not a prospectus and should be read
in conjunction with the Trust's current Prospectus, dated September 1, 1995 (the
"Prospectus"), which is available at no charge upon written or telephone request
to the Trust at the address or telephone numbers set forth at the top of this
page.

Shareholders are advised to read and retain this Statement
of Additional Information for future reference.

STATEMENT OF ADDITIONAL INFORMATION
September 1, 1995
As Revised on October 3, 1995
<PAGE>

GENERAL INFORMATION

Van Eck Worldwide Insurance Trust (the "Trust") is an open-end management
investment company organized as a "business trust" under the laws of the
Commonwealth of Massachusetts on January 7, 1987 as Van Eck Variable Insurance
Products Trust. The Board of Trustees has authority to create additional series
or funds, each of which may issue a separate class of shares. There are
currently five series of the Trust: Gold and Natural Resources Fund, Worldwide
Bond Fund, Worldwide SmallCap Fund, Worldwide Hard Assets Fund and Worldwide
Balanced Fund (the "Funds"). The Gold and Natural Resources Fund is classified
as a diversified fund, and Worldwide Bond Fund, Worldwide Balanced Fund,
Worldwide SmallCap Fund and Worldwide Hard Assets Fund are classified as non-
diversified funds under the Investment Company Act of 1940 (the "1940 Act").
Shares of Worldwide SmallCap Fund are not currently offered to the public.

INVESTMENT OBJECTIVES AND POLICIES OF THE FUNDS

WORLDWIDE SMALLCAP FUND

Worldwide SmallCap Fund will invest in equity securities of smaller
capitalization companies. Equity securities include common and preferred
stocks; equity and equity index swap agreements; direct equity interests in
trusts, partnerships, joint ventures and other unincorporated entities or
enterprises; special classes of shares available only to foreign persons in
markets that restrict the ownership of certain classes of equity to nationals or
residents of the country; convertible preferred stocks and convertible debt
instruments; financial futures contracts and options on financial futures
contracts; forward currency contracts and put and call options on securities,
securities indices and foreign currencies and foreign currency swaps.

The Fund may also invest in fixed-income securities which include obligations
issued or guaranteed by a government or any of its political subdivisions,
agencies, instrumentalities, or by supranational organization such as the World
Bank or European Economic Community (or other organizations which are chartered
to promote economic development and are supported by various governments and
government entities), adjustable-rate preferred stock, interest rate swaps,
corporate bonds debentures, notes, commercial paper, certificates of deposit,
time deposits, repurchase agreements, and debt obligations which may have a call
on a common stock or commodity by means of a conversion privilege or attached
warrants. The Fund may invest in debt instruments of the U.S. Government and
its agencies having varied maturities. The Fund may invest in asset-backed
securities such as collateralized mortgage obligations and other mortgage and
non-mortgage asset-backed securities. The Fund may also lend its portfolio
securities and borrow money for investment purposes (i.e. leverage is
portfolio).

WORLDWIDE HARD ASSETS FUND

The Fund will, under normal market conditions, invest at least 65% of its total
assets in "Hard Asset Securities." Hard Assets Securities include equity
securities of "Hard Asset Companies" and securities, including structured notes,
whose value is linked to the price of a commodity or a commodity index. The
term "Hard Asset Companies" includes companies that are directly or indirectly
(whether through supplier relationships, servicing agreements or otherwise)
engaged to a significant extent in the exploration, development, production or
distribution of one or more of the following: (i) precious metals, (ii) ferrous
and non-ferrous metals, (iii) gas, petroleum, petrochemicals or other
hydrocarbons, (iv) forest products, (v) real estate and (vi) other basic non-
agricultural commodities which, historically, have been produced and marketed
profitably during periods of significant inflation. Under normal market
conditions, the Fund will invest at least 5% of its assets in each of the first
five sectors listed above. The Fund has a fundamental policy of concentrating
in such industries and up to 50% of the Fund's assets may be invested in any one

2
<PAGE>

of the above sectors. Precious metal and natural resource securities are at
times volatile and there may be sharp fluctuations in prices even during periods
of rising prices.

The Fund may invest in equity securities. Equity securities include common and
preferred stocks; equity and equity index swap agreements; direct equity
interests in trusts, partnerships, joint ventures and other unincorporated
entities or enterprises; special classes of shares available only to foreign
persons in such markets that restrict the ownership of certain classes of equity
to nationals or residents of the country; convertible preferred stocks and
convertible debt instruments. The Fund may also invest in fixed-income
securities which include obligations issued or guaranteed by a government or any
political subdivisions, agencies, instrumentalities, or by a supranational
organization such as the World Bank or European Economic Community (or other
organizations which are chartered to promote economic development and are
supported by various governments and government entities), adjustable-rate
preferred stock, interest rate swaps, corporate bonds, debentures, notes,
commercial paper, certificates of deposit, time deposits, repurchase agreements,
and debt obligations which may have a call on a common stock or commodity by
means of a conversion privilege or attached warrants. The Fund may invest in
debt instruments of the U.S. government and its agencies having varied
maturities.

The Fund may purchase securities, including structured notes, whose value is
linked to the price of a commodity or a commodity index. The Fund may purchase
and sell financial futures and commodity futures contracts and may also write,
purchase or sell put or call options on securities, foreign currencies,
commodities and commodity indices. The Fund may invest in asset-backed
securities such as collateralized mortgage obligations and other mortgage and
non-mortgage asset-backed securities. The Fund may also lend its portfolio
securities and borrow money for investment purposes (i.e. leverage its
portfolio).

The Fund may also invest in "when issued" securities and "partly paid"
securities. The Appendix to this Statement of Additional Information contains
an explanation of the rating categories of Moody's Investors Service and
Standard & Poor's Corporation relating to the fixed-income securities and
preferred stocks in which the Funds may invest, Including a description of the
risks associated with each category.

Although the Fund will not invest in real estate directly, it may invest up to
50% of its assets in equity securities of real estate investment trusts
("REITs") and other real estate industry companies or companies with substantial
real estate investments. The Fund may therefore be subject to certain risks
associated with direct ownership of real estate and with the real estate
industry in general.

WORLDWIDE BALANCED FUND

Worldwide Balanced Fund seeks long-term capital appreciation together with
current income.

Worldwide Balanced Fund may invest in equity securities. Equity securities
include common and preferred stocks; equity and equity index swap agreements;
direct equity interests in trusts, partnerships, joint ventures and other
unincorporated entities or enterprises; special classes of shares available only
to foreign persons in such markets that restrict the ownership of certain
classes of equity to nationals or residents of the country; convertible
preferred stocks and convertible debt instruments; financial futures contracts
and options on financial futures contracts; forward currency contracts and put
and call options on securities, securities indices and foreign currencies and
foreign currency swaps.

The Fund may also invest in fixed-income securities which include obligations
issued or guaranteed by a government or any of its political subdivisions,
agencies, instrumentalities, or by a supranational organization such as the
World Bank or European Economic Community (or other organizations which are
chartered to promote economic development and are supported by various
governments and government entities), adjustable-rate preferred stock, interest
rate swaps, corporate bonds, debentures, notes, commercial paper, certificates
of deposit, time deposits, repurchase agreements, and debt obligations which may
have a call on a common stock or commodity by means of a conversion privilege or
attached warrants. The Fund may invest in debt instruments of the U.S.
government and its agencies having varied maturities. The Fund may invest in
asset-backed securities such as collateralized mortgage obligations and other

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mortgage and non-mortgage asset-backed securities. The Fund may also lend its
portfolio securities and borrow money for investment purposes (i.e. leverage its
portfolio).

GOLD AND NATURAL RESOURCES FUND

Gold and Natural Resources Fund seeks long-term capital appreciation by
investing in equity and debt securities of companies engaged in the exploration,
development, production and distribution of gold and other natural resources
such as strategic and other metals, minerals, forest products, oil, natural gas
and coal. Current income is not an investment objective.

The Gold and Natural Resources Fund may invest in debt and equity securities of
companies engaged in the exploration, development, production of gold and other
natural resources. Gold, other precious metals and natural resources securities
are at times volatile and there may be sharp fluctuations in prices even during
periods of rising prices.

The Fund may invest in any type of security including, but not limited to,
common stocks and equivalents (such as convertible debt securities and
warrants), preferred stocks and bonds and debt obligations of domestic and
foreign companies, governments (including their political subdivisions) and
international organizations. The Fund may invest in South African issuers. The
Fund may purchase and sell financial and commodity futures contracts and options
on financial futures and commodity futures contracts and may also write,
purchase or sell put or call options on securities, foreign currencies,
commodities and commodity indices.

Although the Fund will not invest in real estate directly, it may invest a
portion of its assets not invested in the gold, precious and non precious metals
metals and natural resources sector in equity securities of real estate
investment trusts ("REITs") and other real estate industry companies or
companies with substantial real estate investments. The Fund may therefore be
subject to certain risks associated with direct ownership of real estate and
with the real estate industry in general.

WORLDWIDE BOND FUND

Worldwide Bond Fund seeks high total return through a flexible policy of
investing globally, primarily in debt securities.

Total return is comprised of current income and capital appreciation. The Fund
attempts to achieve its objective by taking advantage of investment
opportunities in the United States as well as in other countries throughout the
world where opportunities may be more rewarding and may emphasize either
component of total return. Normally, the Fund will have at least 65% of its
total assets invested in bonds of varying maturities.

The Fund may invest in any type of security including, but not limited to,
common stocks and equivalents (such as convertible debt securities and
warrants), preferred stocks and bonds and debt obligations of domestic and
foreign companies, governments (including their political subdivisions) and
international organizations. The Fund may buy and sell financial futures
contracts and options on financial futures contracts, which may include bond and
stock index futures contracts and foreign currency futures contracts. The Fund
may write, purchase or sell put or call options on securities and foreign
currencies. In addition, the Fund may lend its portfolio securities and borrow
money for investment purposes (i.e. leverage its portfolio).

The Fund may invest in "when issued" securities and collateralized mortgage
obligations. The Appendix to this Statement of Additional Information contains
an explanation of the rating categories of Moody's Investors Service, Inc. and
Standard & Poor's Corporation relating to the fixed-income securities and
preferred stocks in which the Fund may invest, including a description of the
risks associated with each category.

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RISK FACTORS

FOREIGN SECURITIES

Investors should recognize that investing in foreign securities involves certain
special considerations which are not typically associated with investing in
United States securities. Since investments in foreign companies will
frequently involve currencies of foreign countries, and since the Funds may hold
securities and funds in foreign currencies, the Funds may be affected favorably
or unfavorably by changes in currency rates and in exchange control regulations,
if any, and may incur costs in connection with conversions between various
currencies. Most foreign stock markets, while growing in volume of trading
activity, have less volume than the New York Stock Exchange, and securities of
some foreign companies are less liquid and more volatile than securities of
comparable domestic companies. Similarly, volume and liquidity in most foreign
bond markets are less than in the United States and at times, volatility of
price can be greater than in the United States. Fixed commissions on foreign
securities exchanges are generally higher than negotiated commissions on United
States exchanges, although the Funds endeavor to achieve the most favorable net
results on their portfolio transactions. There is generally less government
supervision and regulation of securities exchanges, brokers and listed companies
in foreign countries than in the United States. In addition, with respect to
certain foreign countries, there is the possibility of exchange control
restrictions, expropriation or confiscatory taxation, political, economic or
social instability, which could affect investments in those countries. Foreign
securities such as those purchased by the Funds may be subject to foreign
government taxes, higher custodian fees and dividend collection fees which could
reduce the yield on such securities.

Investments may be made from time to time by Worldwide Balanced Fund, Worldwide
SmallCap Fund and Worldwide Hard Assets Fund in companies in developing
countries as well as in developed countries. Worldwide Hard Assets Fund and
Worldwide SmallCap Fund may have a substantial portion of their assets in
developing countries. Although there is no universally accepted definition, a
developing country is generally considered by the Adviser to be a country which
is in the initial stages of industrialization. Shareholders should be aware
that investing in the equity and fixed income markets of developing countries
involves exposure to unstable governments, economies based on only a few
industries, and securities markets which trade a small number of securities.
Securities markets of developing countries tend to be more volatile than the
markets of developed countries; however, such markets have in the past provided
the opportunity for higher rates of return to investors.

The value and liquidity of investments in developing countries may be affected
favorably or unfavorably by political, economic, fiscal, regulatory or other
developments in the particular countries or neighboring regions. The extent of
economic development, political stability and market depth of different
countries varies widely. Certain countries in the Asia region, including
Cambodia, China, Laos, Indonesia, Malaysia, the Philippines, Thailand, and
Vietnam are either comparatively underdeveloped or are in the process of
becoming developed. Investments typically involve greater potential for gain or
loss than investments in securities of issuers in developed countries.

The securities markets in developing countries are substantially smaller, less
liquid and more volatile than the major securities markets in the United States.
A high proportion of the shares of many issuers may be held by a limited number
of persons and financial institutions, which may limit the number of shares
available for investment by the portfolio. Similarly, volume and liquidity in
the bond markets in developing countries are less than in the United States and,
at times, price volatility can be greater than in the United States. A limited
number of issuers in developing countries' securities markets may represent a
disproportionately large percentage of market capitalization and trading value.
The limited liquidity of securities markets in developing countries may also
affect the Fund's ability to acquire or dispose of securities at the price and
time it wishes to do so. Accordingly, during periods of rising securities
prices in the more illiquid securities markets, the Fund's ability to
participate fully in such price increases may be

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<PAGE>

limited by its investment policy of investing not more than 15% of its total net
assets in illiquid securities. Conversely, the Fund's inability to dispose
fully and promptly of positions in declining markets will cause the Fund's net
asset value to decline as the value of the unsold positions is marked to lower
prices. In addition, securities markets in developing countries are susceptible
to being influenced by large investors trading significant blocks of securities.

Political and economic structures in many of such countries may be undergoing
significant evolution and rapid development, and such countries may lack the
social, political and economic stability characteristic of the United States.
Certain of such countries have in the past failed to recognize private property
rights and have at times nationalized or expropriated the assets of private
companies. As a result, the risks described above, including the risks of
nationalization or expropriation of assets, may be heightened. In addition,
unanticipated political or social developments may affect the value of the
Funds' investments in those countries and the availability to the Funds of
additional investments in those countries.

Economies of developing countries may differ favorably or unfavorably from the
United States economy in such respects as rate of growth of gross national
product, rate of inflation, capital reinvestment, resource self-sufficiency and
balance of payments position. As export-driven economies, the economies of
countries in the Asia Region are affected by developments in the economies of
their principal trading partners. Hong Kong, Japan and Taiwan have limited
natural resources, resulting in dependence on foreign sources for certain raw
materials and economic vulnerability to global fluctuations of price and supply.

Certain developing countries do not have comprehensive systems of laws, although
substantial changes have occurred in many such countries in this regard in
recent years. Laws regarding fiduciary duties of officers and directors and the
protection of shareholders may not be well developed. Even where adequate law
exists in such developing countries, it may be impossible to obtain swift and
equitable enforcement of such law, or to obtain enforcement of the judgement by
a court of another jurisdiction.

Trading in futures contracts traded on foreign commodity exchanges may be
subject to the same or similar risks as trading in foreign securities.

FOREIGN CURRENCY TRANSACTIONS

Under normal circumstances, consideration of the prospects for currency exchange
rates will be incorporated into the long-term investment decisions made for the
Funds, with regard to overall diversification strategies. Although the Funds
value their assets daily in terms of U.S. Dollars, they do not intend physically
to convert their holdings of foreign currencies into U.S. dollars on a daily
basis. The Funds will do so from time to time, and investors should be aware of
the costs of currency conversion. Although foreign exchange dealers do not
charge a fee for conversion, they do realize a profit based on the difference
(the "spread") between the prices at which they are buying and selling various
currencies. Thus, a dealer may offer to sell a foreign currency to the Funds at
one rate, while offering a lesser rate of exchange should the Funds desire to
resell that currency to the dealer. The Funds will use forward contracts, along
with futures contracts and put and call options, to "lock in" the U.S. Dollar
price of a security bought or sold and as part of their overall hedging
strategy. The Funds will conduct their foreign currency exchange transactions,
either on a spot (i.e., cash) basis at the spot rate prevailing in the foreign
currency exchange market, or through purchasing put and call options on, or
entering into futures contracts or forward contracts to purchase or sell foreign
currencies. See "Futures and Options Transactions."

A forward foreign currency contract, like a futures contract, involves an
obligation to purchase or sell a specific amount of currency at a future date,
which may be any fixed number of days from the date of the contract agreed upon
by the parties, at a price set at the time of the contract. Unlike foreign
currency futures contracts which are standardized exchange-traded contracts,
forward currency contracts are usually

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<PAGE>

traded in the interbank market conducted directly between currency traders
(usually large commercial banks) and their customers. A forward contract
generally has no deposit requirement, and no commissions are charged at any
stage for such trades.

The Adviser will not commit any Fund to deliver under forward contracts an
amount of foreign currency in excess of the value of the Fund's portfolio
securities or other assets or obligations denominated in that currency. The
Funds' Custodian will place the securities being hedged, cash or U.S. government
securities or debt securities into a segregated account of the Fund in an amount
equal to the value of the Fund's total assets committed to the consummation of
forward foreign currency contracts to ensure that the Fund is not leveraged
beyond applicable limits. If the value of the securities placed in the
segregated account declines, additional cash or securities will be placed in the
account on a daily basis so that the value of the account will equal the amount
of the Fund's commitments with respect to such contracts. At the maturity of a
forward contract, the Funds may either sell the portfolio security and make
delivery of the foreign currency, or they may retain the security and terminate
their contractual obligation to deliver the foreign currency prior to maturity
by purchasing an "offsetting" contract with the same currency trader obligating
it to purchase, on the same maturity date, the same amount of the foreign
currency. There can be no assurance, however, that the Funds will be able to
effect such a closing purchase transaction.

It is impossible to forecast the market value of a particular portfolio security
at the expiration of the contract. Accordingly, it may be necessary for the
Funds to purchase additional foreign currency on the spot market (and bear the
expense of such purchase) if the market value of the security is less than the
amount of foreign currency that the Funds are obligated to deliver and if a
decision is made to sell the security and make delivery of the foreign currency.

If the Funds retain the portfolio security and engage in an offsetting
transaction, the Funds will incur a gain or a loss to the extent that there has
been movement in forward contract prices. Additionally, although such contracts
tend to minimize the risk of loss due to a decline in the value of the hedged
currency, at the same time, they tend to limit any potential gain which might
result should the value of such currency increase.

FUTURES AND OPTIONS TRANSACTIONS

The Funds may invest in options on futures contracts. Compared to the purchase
or sale of futures contracts, the purchase and sale of options on futures
contracts involves less potential risk to the Funds because the maximum exposure
is the amount of the premiums paid for the options.

The use of financial futures contracts and commodity futures contracts (Gold and
Natural Resources Fund and Worldwide Hard Assets Fund) options on such futures
contracts and commodities (Gold and Natural Resources Fund and Worldwide Hard
Assets Fund), may reduce a Fund's exposure to fluctuations in the prices of
portfolio securities and may prevent losses if the prices of such securities
decline. Similarly, such investments may protect a Fund against fluctuation in
the value of securities in which a Fund is about to invest. Because the
financial markets in the developing countries are not as developed in the United
States, these financial investments may not be available to the Funds and the
Funds may be unable to hedge certain risks.

The use of financial futures and commodity futures (Gold and Natural Resources
Fund and Worldwide Hard Assets Fund) contracts and options on such futures
contracts and commodities (Gold and Natural Resources Fund and Worldwide Hard
Assets Fund), as hedging instruments involves several risks. First, there can
be no assurance that the prices of the futures contracts or options and the
hedged security or the cash market position will move as anticipated. If prices
do not move as anticipated, the Funds may incur a loss on their investment, may
not achieve the hedging protection anticipated and/or incur a loss

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<PAGE>

greater than if it had entered into a cash market position. Second, investments
in options, futures contracts and options on futures contracts may reduce the
gains which would otherwise be realized from the sale of the underlying
securities or assets which are being hedged. Third, positions in futures
contracts and options can be closed out only on an exchange that provides a
market for those instruments. There can be no assurances that such a market
will exist for a particular futures contract or option. If the Fund cannot
close out an exchange traded futures contract or option which it holds, it would
have to perform its contract obligation or exercise its option to realize any
profit and would incur transaction costs on the sale of the underlying assets.

It is the policy of the Funds to meet the requirements of the Internal Revenue
Code of 1986, as amended, to qualify as a regulated investment company to
prevent double taxation of the Funds and their shareholders. One of these
requirements is that less than 30% of a Fund's gross income must be derived from
gains from the sale or other disposition of securities held for less than three
months. Another test requires that at least 90% of a Fund's gross income be
derived from dividends, interest, payment with respect to securities loans and
gains from the sale or other disposition of stocks or other securities. Gains
from commodity futures contracts do not currently qualify as income for purposes
of the 90% test. The extent to which the Funds may engage in options and
futures contracts transactions may be materially limited by these tests.

REPURCHASE AGREEMENTS

The Funds will not enter into a repurchase agreement with a maturity of more
than seven business days if, as a result, more than 10% of the value of a Fund's
total net assets would then be invested in such repurchase agreements and other
illiquid securities, except that Worldwide SmallCap Fund, Worldwide Hard Assets
Fund and Worldwide Balanced Fund will be limited to 15% of total net assets. A
Fund will only enter into a repurchase agreement where (i) the underlying
securities are of the type which the Fund's investment policies would allow it
to purchase directly, (ii) the market value of the underlying security,
including accrued interest, will be at all times equal to or exceed the value of
the repurchase agreement, and (iii) payment for the underlying securities is
made only upon physical delivery or evidence of book-entry transfer to the
account of the custodian or a bank acting as agent.

MORTGAGE-BACKED SECURITIES

The Funds (except Gold and Natural Resources Fund) may invest in mortgage-backed
securities. A mortgage-backed security may be an obligation of the issuer
backed by a mortgage or pool of mortgages or a direct interest in an underlying
pool of mortgages. The value of mortgage-backed securities may change due to
shifts in the market's perception of issuers. In addition, regulatory or tax
changes may adversely affect the mortgage securities market as a whole.
Stripped mortgage-backed securities are created when a U.S. governmental agency
or a financial institution separates the interest and principal components of a
mortgage-backed security and sells them as individual securities. The holder of
the "principal-only" security ("PO") receives the principal payments made by the
underlying mortgage-backed security, while the holder of the "interest-only"
security ("IO") receives interest payments from the same underlying security.
The prices of stripped mortgage-backed securities may be particularly affected
by change in interest rates. As interest rates fall, prepayment rates tend to
increase, which tends to reduce the price of IOs and increase prices of POs.
Rising interest rates can have the opposite effect. Changes in interest rates
may also affect the liquidity of IOs and POs.

REAL ESTATE SECURITIES

Although Gold and Natural Resources Fund and Worldwide Hard Assets Fund will not
invest in real estate directly, each of these Funds may invest a percentage of
its assets in equity securities of real estate investment trust ("REITs") and
other real estate industry companies or companies with substantial real estate
investments. Worldwide Hard Assets Fund may invest up to 50% of its assets in
such securities. Gold and Natural Resources Fund and Worldwide Hard Assets Fund
are therefore subject to certain risks associated with direct ownership of real
estate and with the real estate industry in general. These risks include, among
others: possible declines in the value of real estate; possible lack of
availability of mortgage funds; extended vacancies of properties; risks related
to general and local economic conditions; overbuilding; increases in
competition, property taxes and operating expenses; changes in zoning laws;
costs resulting from the clean-up of, and liability to third parties for damages
resulting from, environmental problems; casualty or condemnation losses;
uninsured damages from floods, earthquakes or other natural disasters;
limitations on and variations in rents; and changes in interest rates.

REITs are pooled investment vehicles which invest primarily in income producing
real estate or real estate related loans or interests. REITs are generally
classified as equity REITs, mortgage REITs or hybrid REITs. Equity REITs invest
the majority of their assets directly in real property and derive income
primarily from the collection of rents. Equity REITs can also realize capital
gains by selling properties that have appreciated in value. Mortgage REITs
invest the majority of their assets in real estate mortgages and derive income
from the collection of interest payments. REITs are not taxed on income
distributed to shareholders provided they comply with several requirements of
the Internal Revenue Code of 1986, as amended (the "Code").

Investing in REITs involves certain unique risks in addition to those risk
associated with investing in the real estate industry in general. Equity REITs
may be affected by changes in the value of the underlying property owned by the
REITs, while mortgage REITs may be affected by the quality of any credit
extended. REITs are dependent upon management skills, are not diversified, and
are subject to the risks of financing projects. REITs are subject to heavy cash
flow dependency, default by borrowers, self-liquidation and the possibilities of
failing to qualify for the exemption from tax for distributed income under the
Code. REITs (especially mortgage REITs) are also subject to interest rate risk
(i.e., as interest rated rise, the value of the REIT may decline).

COMMERCIAL PAPER

Worldwide SmallCap Fund, Worldwide Balanced Fund, Worldwide Hard Assets Fund and
Worldwide Bond Fund may invest in commercial paper which is indexed to certain
specific foreign currency exchange rates.

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<PAGE>

The terms of such commercial paper provide that its principal amount is adjusted
upwards or downwards (but not below zero) at maturity to reflect changes in the
exchange rate between two currencies while the obligation is outstanding. The
Funds will purchase such commercial paper with the currency in which it is
denominated and, at maturity, will receive interest and principal payments
thereon in that currency, but the amount or principal payable by the issuer at
maturity will change in proportion to the change (if any) in the exchange rate
between two specified currencies between the date the instrument is issued and
the date the instrument matures. While such commercial paper entails the risk
of loss of principal, the potential for realizing gains as a result of changes
in foreign currency exchange rate enables the Funds to hedge or cross-hedge
against a decline in the U.S. Dollar value of investments denominated in foreign
currencies while providing an attractive money market rate of return. The Funds
will purchase such commercial paper for hedging purposes only, not for
speculation. The staff of the Securities and Exchange Commission is currently
considering whether the purchase of this type of commercial paper would result
in the issuance of a "senior security" within the meaning of the 1940 Act. The
Funds believe that such investments do not involve the creation of such a senior
security, but nevertheless will establish a segregated account with respect to
its investments in this type of commercial paper and to maintain in such account
cash not available for investment or U.S. Government securities or other liquid
high quality debt securities having a value equal to the aggregate principal
amount of outstanding commercial paper of this type.

DIRECT INVESTMENTS

Worldwide SmallCap Fund, Worldwide Hard Assets Fund and Worldwide Balanced Fund
may invest up to 10% of their total assets in direct investments. Direct
investments include (i) the private purchase from an enterprise of an equity
interest in the enterprise in the form of shares of common stock or equity
interests in trusts, partnerships, joint ventures or similar enterprises, and
(ii) the purchase of such an equity interest in an enterprise from a principal
investor in the enterprise. In each case the Fund will, at the time of making
the investment, enter into a shareholder or similar or similar agreement with
the enterprise and one or more other holders of equity interests in the
enterprise. The Sub-Adviser anticipates that these agreements will, in
appropriate circumstances, provide the Fund with the ability to appoint a
representative to the board of directors or similar body of the enterprise and
for eventual disposition of the Fund's investment in the enterprise. Such a
representative of the Fund will be expected to provide the Fund with the ability
to monitor its investment and protect its rights in the investment and will not
be appointed for the purpose of exercising management or control of the
enterprise.

Certain of the Fund's direct investments will include investments in smaller,
less seasoned companies. These companies may have limited product lines,
markets or financial resources, or they may be dependent on a limited management
group. The Fund does not anticipate making direct investments in start-up
operations, although it is expected that in some cases the Fund's direct
investments will fund new operations for an enterprise which itself is engaged
in similar operations or is affiliated with an organization that is engaged in
similar operations.

Direct investments may involve a high degree of business and financial risk that
can result in substantial losses. Because of the absence of any public trading
market for these investments, the Fund may take longer to liquidate these
positions than would be the case for publicly traded securities. Although these
securities may be resold in privately negotiated transactions, the prices on
these sales could be less than those originally paid by the Fund. Furthermore,
issuers whose securities are not publicly traded may not be subject to public
disclosure and other investor protection requirements applicable to publicly
traded securities. If such securities are required to be registered under the
securities laws of one or more jurisdictions before being resold, the Fund may
be required to bear the expense of the registration. In addition, in the event
the Fund sells unlisted foreign securities, any capital gains realized on such
transactions may be subject to higher rates of taxation than taxes payable on
the sale of listed securities. Direct investments are generally considered
illiquid and will be aggregated with other illiquid investments for purposes of
the limitation on illiquid investments.

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INVESTMENT RESTRICTIONS

The following restrictions are fundamental policies which cannot be changed
without the approval of the holders of a majority of a Fund's outstanding
shares. Such majority is defined as the vote of the lesser of (i) 67% or more
of the outstanding shares present at a meeting, if the holders of more than 50%
of the outstanding shares are present in person or by proxy or (ii) more than
50% of a Fund's outstanding shares.

A Fund may not:

1. Purchase or sell real estate, although the Funds may purchase securities of
companies which deal in real estate, including securities of real estate
investment trusts, and may purchase securities which are secured by
interests in real estate;

2. Purchase or sell commodities or commodity futures contracts (for the
purpose of this restriction, forward foreign exchange contracts are not
deemed to be a commodity or commodity contract) except that the Funds may,
for hedging purposes only, buy and sell financial futures contracts which
may include stock and bond index futures contracts and foreign currency
futures contracts and the Gold and Natural Resources Fund and Worldwide
Hard Assets Fund may, for hedging purposes only, buy and sell commodity
futures contracts on gold and other natural resources or on an index
thereon. A Fund may not commit more than 5% of its total assets to initial
margin deposits on futures contracts not used for hedging purposes (except
that with respect to Worldwide SmallCap Fund, Worldwide Hard Assets Fund
and Worldwide Balanced Fund, margin deposits for futures positions entered
into for bona fide hedging purposes are excluded from the 5% limitation).
In addition, Gold and Natural Resources Fund and Worldwide Hard Assets Fund
may invest in gold bullion and coins;

3. Make loans, except by (i) purchase of marketable bonds, debentures,
commercial paper and similar marketable evidences of indebtedness (such as
structured notes, indexed securities and swaps with respect to Worldwide
Hard Assets Fund) and (ii) repurchase agreements. The Funds may lend to
broker-dealers portfolio securities with an aggregate market value up to
one-third of its total assets;

4. As to 75% of the total assets of the Gold and Natural Resources Fund
purchase securities of any issuer, if immediately thereafter (i) more than
5% of a Fund's total assets (taken at market value) would be invested in
the securities of such issuer, or (ii) more than 10% of the outstanding
securities of any class of such issuer would be held by a Fund (provided
that these limitations do not apply to obligations of the United States
Government, its agencies or instrumentalities). This limitation does not
apply to the Worldwide Bond Fund, Worldwide SmallCap Fund, Worldwide Hard
Assets Fund and Worldwide Balanced Fund;

5. Underwrite any issue of securities (except to the extent that a Fund may be
deemed to be an underwriter within the meaning of the Securities Act of
1933 in the disposition of restricted securities);

6. Borrow money, except that each of the Funds may borrow up to 30% of the
value of its net assets to increase its holding of portfolio securities;

7. Issue senior securities except insofar as a Fund may be deemed to have
issued a senior security by reason of (i) borrowing money in accordance
with restrictions described above; (ii) entering into forward foreign
currency contracts; (iii) financial futures contracts purchased on margin
(iv) commodity futures contracts purchased on margin (Gold and Natural
Resources Fund) and;

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<PAGE>

(v) foreign currency swaps (Worldwide SmallCap Fund, Worldwide Hard Assets
Fund, Worldwide Balanced Fund);

8. Invest more than 25 percent of the value of a Fund's total assets in the
securities of issuers having their principal business activities in the
same industry, except the Gold and Natural Resources Fund and Worldwide
Hard Assets Fund, and provided that this limitation does not apply to
obligations issued or guaranteed by the United States Government, its
agencies or instrumentalities;

9. Make investments for the purpose of exercising control or management;

10. Invest in real estate limited partnerships or in oil, gas or other mineral
leases.

The following policies have been adopted by the Board of Trustees with respect
to each Fund and may be changed without shareholder approval.

A Fund may not:

11. Exclusive of Worldwide Balanced Fund, Worldwide SmallCap Fund and Worldwide
Hard Assets Fund, purchase securities of other open-end investment
companies except as part of a merger, consolidation, reorganization or
acquisition of Assets; purchase more than 3% of the total outstanding
voting stock of any investment company, (ii)invest more than 5% of any of
the Fund's total assets in securities of any one investment company or
(iii) invest more than 10% of such value in investment companies in
general. In addition, the Fund may not invest in the securities of closed-
end investment companies, except by purchase in the open market involving
only customary broker's commissions.

12. Invest in securities which are (i) subject to legal or contractual
restrictions on resale ("restricted securities"), or in securities for
which there is no readily available market quotation or engage in a
repurchase agreement maturing in more than seven days with respect to any
security, if as a result, more than 10% of its total net assets would be
invested in such securities and; (ii) with respect to Worldwide SmallCap
Fund, Worldwide Hard Assets Fund and Worldwide Balanced Fund are "illiquid"
securities, including repurchase agreements maturing in more than 7 days
and options traded over-the-counter if the result is that more than 15% of
its total net assets would be invested in such securities;

13. Invest more than 5 percent of the value of its total assets in securities
of companies having together with their predecessors, a record of less than
three years of continuous operation (this restriction does not apply to the
Worldwide SmallCap Fund, Worldwide Hard Assets Fund and Worldwide Balanced
Fund);

14. Write, purchase or sell puts, calls, straddles, spreads or combinations
thereof, except that the Funds may purchase or sell puts and calls on
foreign currencies and on securities as described under "Options
Transactions" herein and in the Prospectus and that these Funds may write,
purchase or sell put and call options on financial futures contracts, which
include bond and stock index futures contracts and Gold and Natural
Resources Fund and Worldwide Hard Assets Fund may write, purchase, or sell
put and call options on gold or other natural resources or an index thereon
and on commodity futures contracts on gold or other natural resources or an
index thereon;

11
<PAGE>

15. Purchase participations or other interests (other than equity stock
interests) in oil, gas or other mineral exploration or development
programs;

16. Invest more than 5% of its total assets in warrants, whether or not the
warrants are listed on the New York or American Stock Exchanges or more
than 2% of the value of the assets of a Fund (except Worldwide Balanced
Fund, Worldwide SmallCap Fund and Worldwide Hard Assets Fund) in warrants
which are not listed. Warrants acquired in units or attached to securities
are not included in this restriction;

17. Mortgage, pledge or otherwise encumber its assets except to secure
borrowings effected within the limitations set forth in restriction (6);

18. Make short sales of securities, except that the Funds may engage in the
transactions specified in restrictions (1), (2) and (14);

19. Purchase any security on margin, except that it may obtain such short-term
credits as are necessary for clearance of securities transactions and, may
make initial or maintenance margin payments in connection with options and
futures contracts and related options and borrowing effected within the
limitations set forth in restriction (6);

20. Participate on a joint or joint and several basis in any trading account in
securities, although transactions for the Funds and any other account under
common or affiliated management may be combined or allocated between the
Funds and such account;

21. Purchase or retain a security of any issuer if any of the officers,
directors or Trustees of a Fund or its investment adviser owns beneficially
more than 1/2 of 1% of the securities of such issuer, or if such persons
taken together own more than 5% of the securities of such issuer.

If a percentage restriction is adhered to at the time of investment, a later
increase or decrease in percentage resulting from a change in values of
portfolio securities or amount of net assets will not be considered a violation
of any of the foregoing restrictions.

INVESTMENT ADVISORY SERVICES

The investment adviser and manager of the Funds is Van Eck Associates
Corporation (the "Adviser"), a Delaware corporation, pursuant to an Advisory
Agreement with the Trust dated as of August 30, 1989. The Adviser furnishes an
investment program for the Funds and determines, subject to the overall
supervision and review of the Board of Trustees, what investments should be
purchased, sold or held.

Fiduciary International, Inc. ("FII"), a New York Corporation, is sub-advisor to
the Worldwide Balanced Fund pursuant to a Sub-Investment Advisory Agreement
dated May 31, 1994. Pictet International Management Limited ("PIML"), a United
Kingdom corporation, is sub-adviser to the Worldwide SmallCap Fund pursuant to a
Sub-Investment Advisory Agreement dated May 31, 1994.

The Adviser (and Sub-Adviser) provides the Funds with office space, facilities
and simple business equipment and provides the services of consultants,
executive and clerical personnel for administering the affairs of the Funds.
Except as provided for in the Advisory Agreement or Sub-Investment Advisory
Agreement, the Adviser (and Sub-Adviser) compensates all executive and clerical
personnel and Trustees of the Trust if such persons are employees or affiliates
of the Adviser or its affiliates. The advisory fee is computed daily and paid
monthly.

12
<PAGE>

The Advisory and Sub-Advisory Agreements provide that they shall each continue
in effect from year to year with respect to a Fund as long as it is approved at
least annually both (i) by a vote of a majority of the outstanding voting
securities of the Fund (as defined in the Investment Company Act of 1940) or by
the Trustees of the Trust, and (ii) in either event a vote of a majority of the
Trustees who are not parties to the Advisory Agreement or "interested persons"
of any party thereto, cast in person at a meeting called for the purpose of
voting on such approval. The Advisory Agreement may be terminated on 60 days'
written notice by either party and will terminate automatically if it is
assigned within the meaning of the 1940 Act. The Advisory Agreements for Gold
and Natural Resources Fund, Worldwide Bond Fund and Worldwide Hard Assets Fund
were reapproved by the Board of Trustees on April 18, 1995. The Sub-Advisory
Agreements for Worldwide Balanced Fund and Worldwide SmallCap Fund were
reapproved by the Board of Trustees on April 18, 1995.

The expenses borne by each of the Funds include the charges and expenses of the
transfer and dividend disbursing agent, custodian fees and expenses, legal,
auditors' fees and expenses, brokerage commissions for portfolio transactions,
taxes, (if any), the advisory and administrative fees, extraordinary expenses
(as determined by the Trustees of the Trust), expenses of shareholder and
Trustee meetings, and of preparing, printing and mailing proxy statements,
reports and other communications to shareholders, expenses of preparing and
setting in type prospectuses and periodic reports and expenses of mailing them
to current shareholders, legal and accounting expenses, expenses of registering
and qualifying shares for sale (including compensation of the Adviser's
employees in relation to the time spent on such matters), fees of Trustees who
are not "interested persons" of the Adviser, membership dues of the Investment
Company Institute, fidelity bond and errors and omissions insurance premiums,
cost of maintaining the books and records of each Fund, and any other charges
and fees not specifically enumerated as an obligation of the Distributor or
Adviser.

The management fee for each of Gold and Natural Resources Fund and Worldwide
Bond Fund is based on an annual rate of 1% of the first $500 million of
average daily net assets, .90 of 1% on the next $250 million and .70 of 1% in
excess of $750 million. Worldwide SmallCap Fund and Worldwide Balanced Fund
each pays the Adviser a fee of .75 of 1% of average daily net assets. From this
fee the Adviser pays the Sub-Adviser a fee of .50 of 1% of average daily net
assets. The management fee for the Worldwide Hard Assets Fund is computed daily
and paid monthly at an annual rate of 1% of average daily net assets, which
includes the fee paid to the Adviser for accounting and administrative services.

The Adviser also performs accounting and administrative services for Worldwide
Balanced Fund and Worldwide SmallCap Fund pursuant to a written agreement. For
these accounting and administrative services, Worldwide Balanced Fund and
Worldwide SmallCap Fund each pay .25 of 1% of their respective average daily net
assets.

For the fiscal years ended April 30, 1993, April 30, 1994 and April 30, 1995,
the Adviser earned fees, with respect to Gold and Natural Resources Fund, of
$104,410 $466,722 and $837,780, respectively. The Adviser earned fees for the
same periods with respect to Worldwide Bond Fund of $440,870, $582,521 and
$641,065, respectively. There were no fee waivers or expense reimbursements
with respect to these Funds for this period. Both the Adviser and Sub-Adviser of
Worldwide Balanced Fund waived fees from the date of the Fund's commencement of
operations (December 23, 1994) to April 30, 1995. In addition, during the same
time period the Adviser assumed the operating expenses of Worldwide Balanced
Fund.

Under the Advisory Agreement and the Administrative Services Agreement the
Adviser determines the net asset value per share and maintains the accounting
records of the Funds. For these services the agreement provides for
reimbursement to the Adviser.

Mr. John C. van Eck is Chairman of the Board of Directors of the Adviser as well
as President and Trustee of the Trust.

13
<PAGE>

THE DISTRIBUTOR

Shares of the Funds are offered on a continuous basis and are distributed
through Van Eck Securities Corporation, 99 Park Avenue, New York, New York (the
"Distributor"), a wholly-owned subsidiary of Van Eck Associates Corporation.
The Trustees of the Trust have approved a Distribution Agreement appointing the
Distributor as distributor of shares of the Funds. The Distribution Agreements
for Gold and Natural Resources Fund, Worldwide Balanced Fund, Worldwide SmallCap
Fund, Worldwide Hard Assets Fund and Worldwide Bond Fund were reapproved by
action of the Trustees on April 18, 1995.

The Distribution Agreement provides that the Distributor will pay all fees and
expenses in connection with printing and distributing prospectuses and reports
for use in offering and selling shares of the Funds and preparing, printing and
distributing advertising or promotional materials. The Funds will pay all fees
and expenses in connection with registering and qualifying their shares under
federal and state securities laws.

PORTFOLIO TRANSACTIONS AND BROKERAGE

The Adviser (or Sub-Adviser) is responsible for decisions to buy and sell
securities and other investments for the Funds, the selection of brokers and
dealers to effect the transactions and the negotiation of brokerage commissions,
if any. In transactions on stock and commodity exchanges in the United States,
these commissions are negotiated, whereas on foreign stock and commodity
exchanges these commissions are generally fixed and are generally higher than
brokerage commissions in the United States. In the case of securities traded on
the over-the-counter markets, there is generally no stated commission, but the
price usually includes an undisclosed commission or markup. In underwritten
offerings, the price includes a disclosed, fixed commission or discount. Most
short term obligations are normally traded on a "principal" rather than agency
basis. This may be done through a dealer (e.g. securities firm or bank) who
buys or sells for its own account rather than as an agent for another client, or
directly with the issuer. A dealer's profit, if any, is the difference, or
spread, between the dealer's purchase and sale price for the obligation.

In purchasing and selling the Funds' portfolio investments, it is the Adviser's
(or Sub-Adviser's) policy to obtain quality execution at the most favorable
prices through responsible broker-dealers. In selecting broker-dealers, the
Adviser (or Sub-Adviser) will consider various relevant factors, including, but
not limited to, the size and type of the transaction; the nature and character
of the markets for the security or asset to be purchased or sold; the execution
efficiency, settlement capability, and financial condition of the broker-
dealer's firm; the broker-dealer's execution services rendered on a continuing
basis; and the reasonableness of any commissions.

The Adviser (or Sub-Adviser) may cause the Funds to pay a broker-dealer who
furnishes brokerage and/or research services a commission that is in excess of
the commission another broker-dealer would have received for executing the
transaction if it is determined that such commission is reasonable in relation
to the value of the brokerage and/or research services as defined in Section
28(e) of the Securities Exchange Act of 1934 which have been provided. Such
research services may include, among other things, analyses and reports
concerning issuers, industries, securities, economic factors and trends, and
portfolio strategy. Any such research and other information provided by brokers
to the Adviser (or Sub-Adviser) is considered to be in addition to and not in
lieu of services required to be performed by the Adviser (or Sub-Adviser) under
its Advisory Agreement or Sub-Advisory Agreement with the Trust. The research
services provided by broker-dealers can be useful to the Adviser in serving its
other clients or clients of the Adviser's (or Sub-Adviser's) affiliates.

The Trustees periodically review the Adviser's (or Sub-Adviser's) performance of
its responsibilities in connection with the placement of portfolio transactions
on behalf of the Funds and review the commissions

14
<PAGE>

paid by the Funds over representative periods of time to determine if they are
reasonable in relation to the benefits to the Funds.

Investment decisions for the Funds are made independently from those of the
other investment accounts managed by the Adviser (or Sub-Adviser) or affiliated
companies. Occasions may arise, however, when the same investment decision is
made for more than one client's account. It is the practice of the Adviser (or
Sub-Adviser) to allocate such purchases or sales insofar as feasible among its
several clients or the clients of its affiliates in a manner it deems equitable.
The principal factors which the Adviser (or Sub-Adviser) considers in making
such allocations are the relative investment objectives of the clients, the
relative size of the portfolio holdings of the same or comparable securities and
the then availability in the particular account of funds for investment.
Portfolio securities held by one client of the Adviser (or Sub-Adviser) may also
be held by one or more of its other clients or by clients of its affiliates.
When two or more of its clients or clients of its affiliates are engaged in the
simultaneous sale or purchase of securities, transactions are allocated as to
amount in accordance with formulae deemed to be equitable as to each client.
There may be circumstances when purchases or sales of portfolio securities for
one or more clients will have an adverse effect on other clients.

While it is the policy of the Funds generally not to engage in trading for
short-term gains, the Funds will effect portfolio transactions without regard to
the holding period if, in the judgment of the Adviser (or Sub-Adviser), such
transactions are advisable in light of a change in circumstances of a particular
company, within a particular industry or country, or in general market, economic
or political conditions. The Gold and Natural Resources Fund and Worldwide
Balanced Fund anticipate that their annual portfolio turnover rates will not
exceed 100%. For fiscal years ended April 30, 1995, April 30, 1994 and April
30, 1993, the portfolio turnover rate for Gold and Natural Resources Fund was
23.30%, 15.84% and 14.61%, respectively, and the Adviser anticipates the
turnover rate for the current fiscal year will remain below 100%.

The annual portfolio turnover rate of the Worldwide Bond Fund may exceed 100%.
For fiscal years ended April 30, 1995, April 30, 1994, and April 30, 1993, the
portfolio turnover rate was 265.87%, 37.59% and 248.21%, respectively, and the
Adviser anticipates the turnover rate for the current fiscal year will also
exceed 100%. Due to the high rate of turnover, the Fund will pay a greater
amount in brokerage commissions than a similar size fund with a lower turnover
rate, though commissions are not generally charged in fixed-income transactions.
In addition, since the Fund may have a high rate of portfolio turnover, the Fund
may realize capital gains or losses. Capital gains will be distributed annually
to the shareholders. Capital losses cannot be distributed to shareholders but
may be used to offset capital gains at the Fund level. See "Taxes" in the
Prospectus and the Statement of Additional Information. The portfolio turnover
rates of all the Funds may vary greatly from year to year. As Worldwide
Balanced Fund recently commenced operation, it did not experience any portfolio
turnover for the fiscal year ended April 30, 1995.

The Adviser does not consider sales of shares of the Funds as a factor in the
selection of broker-dealers to execute portfolio transactions for the Funds. For
the fiscal year ended April 30, 1993, Gold and Natural Resources Fund paid
$58,868 in brokerage commissions and Worldwide Bond Fund paid $19,200 in
brokerage commissions. For the fiscal year ended April 30, 1994, Gold and
Natural Resources Fund paid $187,464 and Worldwide Bond Fund paid $8,640 in
brokerage commissions. For the fiscal year ended April 30, 1995, Gold and
Natural Resources Fund paid $250,357, Worldwide Bond Fund paid $24,354 and
Worldwide Balanced did not pay any brokerage commissions.

<PAGE>

TRUSTEES AND OFFICERS

The Trustees and Officers of the Trust, their addresses, positions with the
Trust and principal occupations during the past five years are set forth below.

Trustees of Van Eck Worldwide Insurance Trust:

*.JOHN C. van ECK, C.F.A. - Chairman of the Board and President
- -------------------------
270 River Road, Briarcliff Manor, New York; Chairman of the Board and
President of other affiliated investment companies advised by the Adviser;
Chairman, Van Eck Associates Corporation (investment adviser), Van Eck
Securities Corporation (broker-dealer); Director, Eclipse Financial Asset
Trust (mutual fund); Former Director (1992-1995), Abex Inc. (aerospace);
Former Director (1983-1986), The Signal Companies, Inc. (high technology
and engineering); Former Director (1982-1984), Pullman Transportation Co.,
Inc. (transportation equipment); Former Director (1986-1992) The Henley
Group, Inc. (technology and health).

.#+JEREMY H. BIGGS - Trustee
- ------------------
1220 Park Avenue, New York, New York 10128; Trustee of other affiliated
investment companies advised by the Adviser; Vice Chairman, Director and
Chief Investment Officer, Fiduciary Trust Company International (investment
manager), parent company of Fiduciary International, Inc., which serves as
Sub-Adviser to the Worldwide Balanced Fund; Chairman of the Board to all
funds of Ventures Advisers Group (mutual fund management company); Former
Director, International Investors Incorporated (1990-1991).

#+RICHARD C. COWELL - Trustee
- -------------------
121 El Bravo Way, Palm Beach, Florida; Trustee of other affiliated
investment companies advised by the Adviser; Private Investor; Director,
West Indies & Caribbean Development Ltd. (real estate); Director, Compo
Industries, Inc. (machinery manufacturer); Former Director (1978-1981),
American Eagle Petroleums, Ltd. (oil and gas exploration); Former President
and Director (1968-1976), Minerals and Industries, Inc. (petroleum
products); Former Director (1978-1983), Duncan Gold Resources Inc. (oil
exploration and gold mining); Former Director (1981-1984), Crested Butte
Silver Mining Co.; Former Chairman and Member of Executive Committee (1974-
1981), Allerton Resources, Inc. (oil and gas exploration); Former Director
(1976-1982), Western World Insurance Co; Former Director, International
Investors Incorporated (mutual fund).

.RODGER A. LAWSON - Trustee
- -----------------
330 East 38th Street, New York, New York 10016; Trustee of other affiliated
investment companies advised by the adviser; President of the Adviser;
President of Van Eck Securities Corporation; Former Managing Director and
Head of Global Private banking and Mutual Funds, Bankers Trust Company
(1992-1994); Former Managing Director, Member of the Management Committee,
and President/CEO of Fidelity Investments Retail Group, FMR Corp. (1985-
1991); Former Corporate Officer, Member of the Management Committee, and
Head of Retail and Institutional Businesses, Dreyfus Corporation (1982-
1985).

#+WESLEY G. McCAIN - Trustee
- ------------------
144 East 30th Street, New York, New York; Chairman, Towneley Capital
Management, Inc., (investment adviser); Chairman, Eclipse Financial Asset
Trust (mutual fund); Trustee of other affiliated investment companies
advised by the Adviser; General Partner, Pharoah Partners, L.P.; President,
Millbrook Associates, Inc.; Trustee, Libre Group Trust; Chairman, Eclipse
Financial Services, Inc.; Former Director, International Investors
Incorporated (mutual fund); and Former Secretary and Treasurer, Millbrook
Advisers, Inc. (investment adviser) Former Chairman, Finacor, Inc.
(financial services).

16
<PAGE>

DAVID J. OLDERMAN - Trustee
- -----------------
560 Lexington Avenue, New York, New York 10022; Chairman of the Board,
Chief Executive Officer and Owner, Carret & Company, Inc. (since 1988);
Chairman of the Board, American Copy Equipment Co. (1991-present);
Principal, Olderman & Raborn, Inc., (investment advisers-1984-1988);
Chairman of the Board, Railock, Inc., (farm equipment manufacturing-1979-
1984); Head of Corporate Finance, Halsey Stuart (investment Banking-1974-
1975); Vice Chairman of the Board, Stone and Webster Securities Corp.
(investment banking, retail sales and investment advisory divisions-1964 to
1974).

#*RALPH F. PETERS - Trustee
- -----------------
R.D. 2, Box 255, Strimples Mill Road, Stockton, New Jersey 08559; Trustee
of other affiliated investment companies advised by the Adviser; Former
Chairman of the Board and Chief Executive Officer of Discount Corporation
of New York (dealer in U.S. Treasury and Federal Agency Securities);
Director, Sun Life Insurance and Annuity Company of New York; Director,
U.S. Life Income Fund Inc., New York; Former Director, International
Investors Incorporated.

RICHARD STAMBERGER - Trustee
- ------------------
888 17th Street, N.W., Washington, D.C. 20006; Principal, National
Strategies, Inc., a public policy firm in Washington, D.C.; Executive Vice
President, Chief Operating Officer, and a Director of NuCable Resources
Corporation (technology firm/since 1988); associated with Anderson Benjamin
& Reed, a regulatory consulting firm based in Washington, D.C. (1985-1986);
White House Fellow-Office of Vice President (1984-1985); Director of
Special Projects, National Cable Television Association (1983-1984).

**.FRED M. van ECK - Trustee
- ------------------
99 Park Avenue, New York, New York; Private Investor; Trustee of other
affiliated investment companies advised by the Adviser; Director, Van Eck
Associates Corporation; Director, Van Eck Securities Corporation; Former
General Partner (1950-1976) J. H. Whitney & Co. (venture capital).

Officers of the Trust:

HENRY J. BINGHAM - Executive Vice President
- ----------------
99 Park Avenue, New York, New York; President, International Investors Gold
Fund series of Van Eck Funds; Executive Managing Director, Van Eck
Associates Corporation; Executive Vice President of other affiliated
investment companies advised by the Adviser; Former Director and Vice
President (1978-1983), United Services Gold Shares Inc., United Services
Group of Funds, Inc. and The Good and Bad Times Fund, Inc. (mutual funds)
and Growth Research and Management, Inc. (investment adviser). Formerly
General Partner and Director of Spencer Trask & Co.

MADIS SENNER - Executive Vice President
- ------------
99 Park Avenue, New York, New York; President of Worldwide Bond Fund;
Director, Global Fixed Income of the Adviser; Executive Vice President of
other affiliated investment companies of the Adviser; President of World
Income Fund series of Van Eck Funds; Former Global Bond Manager, Chase
Manhattan Private Bank (1992-1994); Former President and founder, Sunray
Securities, Inc. 1989-1992).

MICHAEL G. DOORLEY - Vice President
- ------------------
99 Park Avenue, New York, New York; Vice President, Treasurer, Controller
and Chief Financial Officer, Van Eck Associates Corporation and Van Eck
Securities Corporation, Vice President and Treasurer of other affiliated
investment companies advised by the Adviser.

17
<PAGE>

BRUCE J. SMITH - Vice President and Treasurer
- --------------
99 Park Avenue, New York, New York; Senior Managing Director, Portfolio
Accounting of the Adviser and Senior Managing Director, Operations of the
Distributor. Vice President and Controller of other affiliated investment
companies advised by the Adviser.

JOSEPH P. DiMAGGIO - Controller
- ------------------
99 Park Avenue, New York, New York; Controller of the Trust; Director of
Portfolio Accounting of the Adviser (since 1993); Controller of other
affiliated investment companies advised by the Adviser; Accounting Manager
with Alliance Capital Management (1985-1993).

THADDEUS M. LESZCZYNSKI - Vice President and Secretary
- -----------------------
99 Park Avenue, New York, New York; Vice President and Secretary of other
affiliated investment companies advised by the Adviser; Vice President and
General Counsel of the Adviser and Distributor.

_______________________

. An "interested person" as defined in the Act.

* Member of Executive Committee - exercises general powers of Board of
Trustees between meetings of the Board.

** Brother of Mr. John C. van Eck.

# Member of the Nominating Committee

+ Member of Audit Committee - reviews fees, services, procedures, conclusions
and recommendations of independent auditors.

PRINCIPAL SHAREHOLDERS

As of April 30, 1995 approximately 99% and 99% of the outstanding shares of Gold
and Natural Resources Fund and Worldwide Bond Fund, respectively, were owned, of
record, by The Best of America IV, a separate account offered by Nationwide Life
Insurance Company, One Nationwide Plaza, Columbus, Ohio 43216 to fund the
benefits of the separate account's variable annuity contractowners. As of April
30, 1995 approximately 65% of the outstanding shares of Worldwide Balanced Fund
were owned, of record, by Security Life of Denver, Security Life Center, 1290
Broadway, Denver, Colorado 80203-5699.

VALUATION OF SHARES

The net asset value per share of each of the Funds is computed by dividing the
value of all of a Fund's securities plus cash and other assets, less
liabilities, by the number of shares outstanding. The net asset value per share
is computed as of the close of the New York Stock Exchange, Monday through
Friday, exclusive of national business holidays. The Funds will be closed on
the following national business holidays: New Years Day, Washington's Birthday,
Good Friday, Memorial Day, Independence Day, Labor Day, Thanksgiving Day and
Christmas (or the days on which these holidays are observed).

Shares of the Funds are sold at the public offering price which is determined
once each day the Funds are open for business and is the net asset value per
share.

18
<PAGE>

The net asset values need not be computed on a day in which no orders to
purchase, sell or redeem shares of the Funds have been received.

The value of a financial futures or commodity futures contract equals the
unrealized gain or loss on the contract that is determined by marking it to the
current settlement price for a like contract acquired on the day on which the
commodity futures contract is being valued. A settlement price may not be used
if the market makes a limit move with respect to a particular commodity.
Securities or futures contracts for which market quotations are readily
available are valued at market value, which is currently determined using the
last reported sale price. If no sales are reported as in the case of most
securities traded over-the-counter, securities are valued at the mean of their
bid and asked prices at the close of trading on the New York Stock Exchange (the
"Exchange"). In cases where securities are traded on more than one exchange,
the securities are valued on the exchange designated by or under the authority
of the Board of Trustees as the primary market. Short-term investments having a
maturity of 60 days or less are valued at amortized cost, which approximates
market. Options are valued at the last sales price unless the last sales price
does not fall within the bid and ask prices at the close of the market, at which
time the mean of the bid and ask prices is used. All other securities are
valued at their fair value as determined in good faith by the Trustees. Foreign
securities or futures contracts quoted in foreign currencies are valued at
appropriately translated foreign market closing prices or as the Board of
Trustees may prescribe.

Generally, trading in foreign securities and futures contracts, as well as
corporate bonds, United States Government securities and money market
instruments, is substantially completed each day at various times prior to the
close of the Exchange. The values of such securities used in determining the
net asset value of the shares of the Funds may be computed as of such times.
Foreign currency exchange rates are also generally determined prior to the close
of the Exchange. Occasionally, events affecting the value of such securities
and such exchange rates may occur between such times and the close of the
Exchange which will not be reflected in the computation of the Fund's net asset
values. If events materially affecting the value of such securities occur
during such period, then these securities will be valued at their fair value as
determined in good faith by the Trustees.

TAXES

Each Fund intends to qualify and elect to be treated each taxable year as a
"regulated investment company" under Subchapter M of the Internal Revenue Code
of 1986, as amended (the"Code"). To so qualify, a Fund must, among other
things, (a) derive at least 90% of its gross income from dividends, interest,
payments with respect to securities loans, gains from the sale or other
disposition of stock, securities or foreign currencies, or other income
(including gains from options, futures or forward contracts) derived with
respect to its business of investing in such stock, securities or currencies;
(b) derive less than 30% of its gross income from the sale or other disposition
of any of the following which was held less than three months (the "30% test"):
(i) stock or securities; (ii) options, futures or forward contracts (other than
on foreign currencies) or (iii) foreign currencies (or options, futures or
forward contracts on foreign currencies) but only if such currencies (or
options, futures or forward contracts) are not directly related to the Fund's
principal business of investing in stock or securities; and (c) satisfy certain
diversification requirements.

As a regulated investment company, a Fund will not be subject to federal income
tax on its net investment income and capital gain net income (capital gains in
excess of its capital losses) that it distributes to shareholders if at least
90% of its investment company taxable income for the taxable year is
distributed. However, if for any taxable year a Fund does not satisfy the
requirements of Subchapter M of the Code, all of its taxable income will be
subject to tax at regular corporate rates without any deduction for distribution
to shareholders, and such distributions will be taxable to shareholders as
ordinary income to the extent of the Fund's current or accumulated earnings or
profits.

19
<PAGE>

Each Fund will be liable for a nondeductible 4% excise tax on amounts not
distributed on a timely basis in accordance with a calendar year distribution
requirement. To avoid the tax, during each calendar year a Fund must distribute
(i) at least 98% of its ordinary income (not taking into account any capital
gains or losses) for the calendar year, (ii) at least 98% of its capital gain
net income for the twelve month period ending on October 31 (or December 31, if
the Fund so elects), and (iii) any portion (not taxed to the Fund) of the 2%
balance from the prior year. Each Fund intends to make sufficient distributions
to avoid this 4% excise tax.

PERFORMANCE

The Funds may advertise performance in terms of average annual total return for
1, 5 and 10 year periods, or for such lesser periods as any of such Funds have
been in existence. Average annual total return is computed by finding the
average annual compounded rates of return over the periods that would equate the
initial amount invested to the ending redeemable value, according to the
following formula:

P(1+T)/to the nth power/ = ERV

Where: P = a hypothetical initial payment of $1,000
T = average annual total return
n = number of years
ERV = ending redeemable value of a hypothetical $1,000 payment made
at the beginning of the 1, 5, or 10 year periods at the end
of the year or period;

The calculation assumes the maximum sales load (or other charges deducted from
payments) is deducted from the initial $1,000 payment and assumes all dividends
and distributions by the fund are reinvested at the price stated in the
prospectus on the reinvestment dates during the period, and includes all
recurring fees that are charged to all shareholder accounts.

The Funds may advertise performance in terms of a 30-day yield quotation. The
30-day yield quotation is computed by dividing the net investment income per
share earned during the period by the maximum offering price per share on the
last day of the period, according to the following formula:

YIELD = 2[(A-B/CD + 1)/to the sixth power/-1]

Where: A = dividends and interest earned during the period
B = expenses accrued for the period (net of reimbursement)
C = the average daily number of shares outstanding during the
period that were entitled to receive dividends
D = the maximum offering price per share on the last day of the
period after adjustment for payment of dividends within 30
days thereafter

The Funds may also advertise performance in terms of aggregate total return.
Aggregate total return for a specified period of time is determined by
ascertaining the percentage change in the net asset value of shares of the Fund
initially acquired assuming reinvestment of dividends and distributions and
without giving effect to the length of time of the investment according to the
following formula:

[(B-A)/A](100)=ATR

Where: A = initial investment
B = value at end of period
ATR = aggregate total return

20
<PAGE>

The calculation assumes the maximum sales charge is deducted from the initial
payment and assumes all distributions by the Funds are reinvested at the price
stated in the Prospectus on the reinvestment dates during the period, and
includes all recurring fees that are charged to all shareholder accounts.

Performance figures of a Fund are not useful for comparison purposes because
they do not reflect the charges and deductions at the separate account level.

ADDITIONAL INFORMATION

Custodian. Bankers Trust Company, New York, New York is the custodian of the
- ---------
Trust's portfolio securities and cash. The Custodian is authorized, upon the
approval of the Trust, to establish credits or debits in dollars or foreign
currencies with, and to cause portfolio securities of a Fund to be held by its
overseas branches or subsidiaries, and foreign banks and foreign securities
depositories which qualify as eligible foreign custodians under the rules
adopted by the Securities and Exchange Commission.

Independent Accountants. Coopers & Lybrand L.L.P., New York, New York serves as
- -----------------------
the Trust's independent accountants.

Counsel. Goodwin, Procter & Hoar, Exchange Place, Boston, Massachusetts 02109.
- -------

FINANCIAL STATEMENTS

The financial statements of the Worldwide Bond Fund and Gold and Natural
Resources Fund for the fiscal year ended April 30, 1995, are incorporated by
reference from the Funds' Annual Reports to Shareholders which are available at
no charge upon written or telephone request to the Trust at the address or
telephone number set forth on the first page of this Statement of Additional
Information.

21
<PAGE>

APPENDIX

Corporate Bond Ratings
- ----------------------

DESCRIPTION OF MOODY'S INVESTORS SERVICE, INC. CORPORATE BOND RATINGS:

Aaa--Bonds which are rated Aaa are judged to be the best quality. They carry
the smallest degree of investment risk and are generally referred to as "gilt-
edge". Interest payments are protected by a large or by an exceptionally stable
margin and principal is secure. While the various protective elements are
likely to change, such changes as can be visualized are most unlikely to impair
the fundamentally strong position of such issues.

Aa--Bonds which are rated Aa are judged to be of high quality by all standards.
Together with the Aaa group they comprise what are generally known as high grade
bonds. They are rated lower than the best bonds because margins of protection
may not be as large as in Aaa securities or fluctuation of protective elements
may be of greater or there may be other elements present which make the long-
term risks appear somewhat larger than in Aaa securities.

A--Bonds which are rated A possess many favorable investment attributes and are
to be considered as upper medium grade obligations. Factors given security to
principal and interest are considered adequate but elements may be present which
suggest a susceptibility to impairment sometime in the future.

Baa--Bonds which are rated Baa are considered as medium grade obligations, i.e.,
they are neither highly protected nor poorly secured. Interest payments and
principal security appear adequate for the present but certain protective
elements may be lacking or may be characteristically unreliable over any great
length of time. Such bonds lack outstanding investment characteristics and in
fact have speculative characteristics as well.

Moody's applies the numerical modifiers 1, 2 and 3 to each generic rating
classification from Aa through B. The modifier 1 indicates that the security
ranks in the higher end of its generic rating category; the modifier 2 indicates
a mid-range ranking; and the modifier 3 indicates that the issue ranks in the
lower end of its generic rating category.

DESCRIPTION OF STANDARD & POOR'S CORPORATION CORPORATE BOND RATINGS;

AAA -- Bonds rated AAA have the highest rating assigned by S&P to a debt
obligations. Capacity to pay interest and repay principal is extremely strong.

AA -- Bonds rated AA have a very strong capacity to pay interest and repay
principal and differ from the higher rated issues only in small degree.

A -- Bonds rated A have a strong capacity to pay interest and repay principal
although they are somewhat more susceptible to the adverse effects of changes in
circumstances and economic conditions than bonds in higher rated categories.

BBB -- Bonds rated BBB are regarding as having an adequate capacity to pay
interest and repay principal. Whereas they normally exhibit adequate protection
parameters, adverse economic conditions or changing circumstances are more
likely to lead to a weakened capacity to pay interest and repay principal for
bonds in this category than for bonds in higher rated categories.

22
<PAGE>

Preferred Stock Ratings
- -----------------------

Moody's Investors Service, Inc. describes its preferred stock ratings as:

aaa - An issue which is rated aaa is considered to be a top-quality preferred
stock. This rating indicates good asset protection and the least risk of
dividend impairment within the universe of convertible preferred stocks.

aa - An issue which is rated aa is considered a high-grade preferred stock.
This rating indicates that there is reasonable assurance that earnings and asset
protection will remain relatively well maintained in the foreseeable future.

a - An issue which is rated a is considered to be an upper-medium grade
preferred stock. While risks are judged to be somewhat greater than in the aaa
and aa classifications, earnings and asset protection are, nevertheless,
expected to be maintained at adequate levels.

baa - An issue which is rated baa is considered to be medium-grade, neither
highly protected nor poorly secured. Earnings and asset protection appear
adequate at present but may be questionable over any great length of time.

ba - An issue which is rated ba is considered to have speculative elements, and
its future cannot be considered well assured. Earnings and asset protection may
be very moderate and not well safe-guarded during adverse periods. Uncertainty
of position characterizes preferred stocks in this class.

b - An Issue which is rated b generally lacks the characteristics of a desirable
investment. Assurance of dividend payments and maintenance of other terms of
the issue over any long period of time may be small.

caa - An issue which is rated caa is likely to be in arrears on dividend
payments. This rating designation does not purport no indicate the future
status of payment.

ca - An issue which is rated ca is speculative in a high degree and is likely to
be in arrears on dividends with little likelihood of eventual payment.

c - This is the lowest rated class of preferred or preference stock. Issues so
rated can be regarded as having extremely poor prospects of every attaining any
real investment standing.

Standard & Poor's Corporation describes its preferred stock ratings as:

AAA - This is the highest rating that may be assigned by Standard & Poor's to a
preferred stock issue and indicates an extremely strong capacity to pay the
preferred stock obligations.

AA - A preferred stock issue rated AA also qualifies as a high-quality fixed
income security. The capacity to pay preferred stock obligations is very
strong, although not as overwhelming as for issues rated AAA.

A - An issue rated A is backed by a sound capacity to pay the preferred stock
obligations, although it is somewhat more susceptible to the adverse effect of
changes in circumstances and economic conditions.

23
<PAGE>

BBB - An issue rated BBB is regarded as backed by an adequate capacity to pay
the preferred stock obligations. Whereas it normally exhibits adequate
protection parameters, adverse economic conditions or changing circumstances are
more likely to lead to a weakened capacity to make payments for a preferred
stock in this category than for issues in the A category.

BB,B,CCC - Preferred stocks rated BB,B, and CCC are regarded, on balance, as
predominantly speculative with respect to the issuer's capacity to pay preferred
stock obligations. BB indicates the lowest degree of speculation and CCC the
highest degree of speculation. While such issues will likely have some quality
and protective characteristics, these are outweighed by large uncertainties or
major risk exposures to adverse conditions.

24
<PAGE>

PROSPECTUS
September 1,1995
As Revised on October 3, 1995

VAN ECK GOLD AND NATURAL RESOURCES FUND

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

The Van Eck Gold and Natural Resources Fund is a series of Van Eck Worldwide
Insurance Trust, a Massachusetts business trust. The Fund is managed by Van Eck
Associates Corporation (the "Adviser").

99 Park Avenue, New York, New York 10016
(212) 687-5200
- -------------------------------------------------------------------------------

Van Eck Worldwide Insurance Trust (the "Trust") is an open-end management
investment company. Shares of the Gold and Natural Resources Fund are offered
only to separate accounts of various insurance companies to fund the benefits
of variable life policies and variable annuity contracts (the "Contracts").

GOLD AND NATURAL RESOURCES FUND-seeks long-term capital appreciation by
investing in equity and debt securities of companies engaged in the
exploration, development, production and distribution of gold and other natural
resources, such as strategic and other metals, minerals, forest products, oil,
natural gas and coal. Current income is not an investment objective.

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

This Prospectus sets forth concisely information about the Trust and Fund that
you should know before investing. It should be read in conjunction with the
prospectus for the Contract which accompanies this Prospectus and should be
retained for future reference. For further information about the Fund, please
call the Fund or the Distributor at the above telephone number.

The Contracts involve certain expenses not described in this Prospectus and
also may involve certain restrictions or limitations on the allocation of
purchase payments or Contract values to the Fund. See the applicable Contract
prospectus for information regarding expenses of the Contract and any
applicable restrictions or limitations with respect to the Fund.

Shares of the Fund are not deposits or obligations of, or guaranteed or
endorsed by, a bank, and the shares are not federally insured by the Federal
Deposit Insurance Corporation, the Federal Reserve Board, or any other agency.

A Statement of Additional Information, dated September 1, 1995, which further
discusses the Trust and the Fund has been filed with the Securities and Exchange
Commission and is incorporated herein by reference. It is available without
charge upon request to the Fund or the Distributor at the above address or by
calling the telephone number listed above.

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

<PAGE>

TABLE OF CONTENTS
Page
- ---------------------------------------------------

The Fund....................................... 3

Financial Highlights........................... 3

Investment Objective and Policies of the Fund.. 4

Risk Factors................................... 5

Limiting Investment Risks...................... 12

Management..................................... 12

How to Buy Shares.............................. 14

Dividends and Distributions.................... 14

How to Redeem Shares........................... 14

Federal Taxation............................... 14

Description of the Trust....................... 15

Additional Information......................... 16

<PAGE>

The Fund

Gold and Natural Resources Fund (the "Fund") is an open-end management
investment company. The Fund is a series of Van Eck Worldwide Insurance Trust,
a business trust organized under the laws of the Commonwealth of Massachusetts
on January 7, 1987. The Fund is classified as diversified under the Investment
Company Act of 1940 (the "Act").

Financial Highlights

The Financial Highlights below give selected information for a share of the
Fund outstanding for the year or period indicated. The Financial Highlights
presented have been audited by Deloitte & Touche LLP, independent accountants,
for all years from commencement of operations through April 30, 1992. The
Financial Highlights presented have been audited by Coopers & Lybrand L.L.P.,
independent accountants, for all other fiscal years ended April 30, whose
reports thereon appear in the Fund's Annual Report. This information should
be read in conjunction with the financial statements and related notes that
also appear in the Fund's Annual Report. The Annual Report also contains
additional performance information that will be made available on request and
without charge.

<TABLE>
<CAPTION>
Gold and Natural Resources Fund
---------------------------------------------------------
Year Ended April 30,
---------------------------------------------------------
1995 1994 1993 1992 1991 1990+
-------- -------- -------- --------- --------- ---------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period.............................. $13.11 $10.61 $8.25 $8.85 $9.51 $10.00
-------- -------- -------- --------- --------- ---------
Income From Investment Operations:
Net Investment Income............................................. 0.08 0.07 0.01 0.04 0.16 0.08
Net Gains or Losses on Securities (both realized and
unrealized)..................................................... 0.37 2.47 2.39 (0.53) (0.69) (0.57)
-------- -------- -------- --------- --------- ---------
Total From Investment Operations.................................. 0.45 2.54 2.40 (0.49) (0.53) (0.49)
-------- -------- -------- --------- --------- ---------
Less Distributions:
Dividends (from net investment income)............................ (0.07) (0.04) (0.04) (0.11) (0.13) -
Distributions (from capital gains)................................ - - - - - -
-------- -------- -------- --------- --------- ---------
Total Distributions............................................... (0.07) (0.04) (0.04) (0.11) (0.13) 0.00
-------- -------- -------- --------- --------- ---------
Net Asset Value, End of Period.................................... $13.49 $13.11 $10.61 $8.25 $8.85 $9.51
======== ======== ======== ========= ========= =========

- ----------------------------------------------------------------------------------------------------------------------------
Total Return(a)................................................... 3.43% 23.96% 29.19% (5.62%) (5.67%) (4.90%)
- ----------------------------------------------------------------------------------------------------------------------------
Ratios/Supplementary Data:
Net Assets, End of Period (000's omitted)......................... $127,320 $81,248 $30,896 $9,836 $6,936 $3,660
Ratio of Expenses to Average Net Assets(b)........................ 0.96% 0.96% 1.61% 1.32% 0.52% -
Ratio of Net Income to Average Net Assets......................... 0.71% 0.64% 0.25% 0.60% 2.10% 2.46%*
Portfolio Turnover Rate........................................... 23.30% 15.84% 14.61% 0.48% 21.86% 5.09%*
- ------
</TABLE>

(a) Total return is calculated assuming an initial investment made at the net
asset value at the beginning of the period, reinvestment of dividends and
distribution of capital gains at net asset value during the year and a
redemption on the last day of the period. Total return for the period ended
April 30, 1990 was not annualized.
(b) Had the Adviser not reimbursed expenses, the expense ratios for the year
ended April 30, 1991 and for the period September 1, 1989 (commencement of
operations) to April 30, 1990 would have been 1.21% and 1.87%, respectively.
As of October 3, 1995 the effective rate of the Adviser's management fee is
1.0%. Prior to October 3, 1995, the effective rate of the management fee
was 0.75%.

* Annualized

+ From September 1, 1989 (commencement of operations) to April 30, 1990.

<PAGE>

Investment Objective and Policies of the Fund

A description of the investment objective and policies of the Fund is set forth
below. The investment objective of the Fund may not be changed without the
affirmative vote of a majority of the outstanding voting securities of the
Fund. As a result of the market risk inherent in any investment, there is no
assurance that the Fund will achieve its objective. For further information
about the Fund's investment policies, see "Investment Objective and Policies"
in the Statement of Additional Information.

Gold and Natural Resources Fund

Objective:

Gold and Natural Resources Fund seeks long-term capital appreciation by
investing in equity and debt securities of companies engaged in the
exploration, development, production and distribution of gold and other natural
resources such as strategic and other metals, minerals, forest products, oil,
natural gas and coal. Current income is not an investment objective.

Policies:

During normal market conditions, the Fund will have at least 65% of its total
assets invested in securities of companies engaged in gold mining and natural
resources activities. The Fund may also invest in equity and debt securities of
companies which themselves invest in companies engaged in these activities. The
Fund also has the right to invest up to 35% of its assets in the securities of
non-precious metals and natural resources companies.

The Adviser believes that securities of precious metals companies and certain
other natural resources companies offer an opportunity to protect wealth
against eroding monetary values. Recent history indicates that the policies of
many governments seeking economic growth, particularly persistent budget
deficits and high rates of growth of monetary reserves and money supply, have
had long-term inflationary consequences. During periods of accelerating
inflationary policies the prices of many precious metals equity securities have
risen cyclically, and the Adviser believes that they may continue to do so in
the future. The Adviser anticipates that inflation and the price of gold will
continue on a long-term upward trend with alternating cycles as credit is
over-expanded and subsequently tightened. The price of gold decreases when
inflation is not perceived as a risk. Since the market action of gold mining
shares may move against or independently of the market trend of industrial
shares, the addition of such shares to an overall portfolio may increase the
return and reduce the fluctuations of such portfolio. There can be no assurance
that an increased rate of return or a reduction in fluctuations of a portfolio
will be achieved. Thus, an investment in the Fund should be considered part of
an overall investment program rather than a complete investment program.

The five largest gold producing countries are the Republic of South Africa, the
United States, Australia, CIS (the former U.S.S.R.) and Canada. During normal
market conditions, the Fund expects to invest at least 25% (and generally 50%)
of its assets in securities of companies in Canada, the United States, Australia
and South Africa whose value is tied, linked or dependent upon the actual or
anticipated price of gold such as companies which are primarily engaged in gold
mining. It is uncertain under current federal tax law the extent to which the
Fund may concentrate its investments in gold and gold related securities without
adversely affecting the federal tax status of the underlying Contracts.
Accordingly, the Fund reserves the right to alter its policy with respect to
concentration in such securities if and when such uncertainty is resolved. This
limitation is not a fundamental policy of the Fund and may be changed at any
time by the Board of Trustees without a vote of shareholders. The Fund may
invest in conglomerates whose main activity is not mining.

The Fund may invest up to 35% of the value of its total assets in: (a)
securities of companies not in the gold mining/natural resources areas; (b)
high grade corporate debt securities; and (c) obligations issued or guaranteed
by the U.S. or foreign governments and repurchase agreements. The Fund may
invest up to 5% of its assets at the time of purchase in warrants. The Fund may
also invest up to 5% of its assets at the time of purchase in preferred stocks
and preferred stocks which may be converted into common stock. The Fund may
purchase and sell financial futures and commodity futures contracts and options
on financial futures and commodity futures contracts and may write, purchase or
sell puts and calls on foreign currencies, securities, commodities and
commodity indices. The Fund may invest in "when issued" securities, and
securities of foreign issuers. For a further discussion of these investments
see "Risk Factors."

<PAGE>

The Fund has reserved the right to invest up to 10% of its net assets, taken at
market value at the time of investment, in gold bullion and coins.

Since the Fund may invest substantially all of its assets in securities of
companies engaged in gold mining and natural resources activities, the Fund may
be subject to greater risks and market fluctuations than other investment
companies with less concentrated portfolios. The Fund has no restrictions on
the amount of its assets that may be invested in securities of foreign issuers
and thus the relative amount of such investments will change from time to time.
Investments by the Fund in securities of gold mining shares, coins and gold
bullion, foreign issuers, foreign currencies, and options and futures may
involve particular investment risks. In addition, the Fund may lend its
portfolio securities and borrow money for investment purposes (i.e., leverage
its portfolio). See "Risk Factors."

Risk Factors

Assets of the Fund are subject to market fluctuations and risks inherent in all
securities. In addition, assets of the Fund may be subject to other special
considerations, such as those listed below.

Foreign Securities

The Fund may purchase securities of foreign issuers including foreign
investment companies. Investments in foreign securities may involve a greater
degree of risk than investments in domestic securities due to the possibility
of exchange rate fluctuations and exchange controls, less publicly available
information, more volatile or less liquid securities markets, and the
possibility of expropriation, confiscatory taxation or political, economic or
social instability. In addition, some foreign companies are not generally
subject to the same uniform accounting, auditing and financial reporting
standards as are American companies and there may be less government
supervision and regulation of foreign stock exchanges, brokers and companies.
Foreign securities may be subject to foreign taxes, higher custodian fees,
higher brokerage commissions and higher dividend collection fees which could
reduce the yield or return on such securities, although a shareholder of the
Fund may, subject to certain limitations, be entitled to claim a credit or
deduction for United States federal income tax purposes for his proportionate
share of such foreign taxes paid by the Fund. In addition, some foreign
securities in which the Fund may invest may be denominated in foreign
currencies, and since the Fund may temporarily hold funds in foreign
currencies, the value of the assets of the Fund (and thus its net asset value)
will be affected by changes in currency exchange rates. See "Foreign Currency
and Foreign Currency Transactions" below. Transactions in the securities of
foreign issuers may be subject to settlement delays. See "Taxes" in the
Prospectus and "Risks Factors-Foreign Securities" in the Statement of
Additional Information. However, the Adviser believes that diversification of
assets on an international basis decreases the degree to which events in any
one country will adversely affect an entire portfolio.

The Fund may invest in South African issuers. Political and social conditions
in South Africa, due to the exclusionary political system of the South African
government and unsettled political conditions which could recur in South Africa
and neighboring countries, may pose certain risks to the Fund's investments. If
aggravated by local or international developments, such risks could have an
adverse affect on investments in South Africa, including the Fund's investments
and, under certain conditions, on the liquidity of the Fund's portfolio and its
ability to meet shareholder redemption requests. The ability of the Fund to
invest, or hold its investments, in South African companies may be further
affected by changes in United States or South African laws or regulations.

In addition to investing directly in the securities of United States and
foreign issuers, the Fund may also invest in American Depositary Receipts
(ADRs), European Depositary Receipts (EDRs), American Depositary Shares (ADSs),
Global Depositary Shares (GDSs) and securities of foreign investment funds or
trusts (including passive foreign investment companies). ADRs are certificates
that are issued by a United States bank or trust company representing the right
to receive securities of a foreign issuer deposited in a foreign subsidiary,
branch or correspondent of that bank. Generally, ADRs, in registered form, are
designed for use in United States securities markets.

<PAGE>

Emerging Markets Securities

Investments of the Fund may be made from time to time in companies in
developing countries as well as in developed countries. Shareholders should be
aware that investing in the equity and fixed income markets of developing
countries involves exposure to potentially unstable governments, economies
based on only a few industries, and securities markets which trade a small
number of securities and may therefore at times be illiquid. Securities markets
of developing countries tend to be more volatile than the markets of developed
countries. Countries with developing markets may present the risk of
nationalization of businesses, restrictions on foreign ownership, or
prohibitions of repatriation of assets, and may have less protection of
property rights than more developed countries. The economies of countries with
developing markets may be highly vulnerable to change in local or global trade
conditions, and may suffer from extreme and volatile debt burdens or inflation
rates. Local securities markets may be unable to respond effectively to
increases in trading volume, potentially making prompt liquidation of
substantial holdings difficult or impossible at times. Securities of issuers
located in developing markets may have limited marketability and may be subject
to more abrupt or erratic price movements. However, such markets have in the
past provided the opportunity for higher rates of return to investors. There is
no assurance that these markets will offer such opportunity in the future.

Many of these emerging markets limit the percentage foreign investors, such as
the Fund, may own of their domestic issuers by requiring that such issuers
issue two classes of shares-"local" and "foreign" shares. Foreign shares may be
held only by investors that are not considered nationals or residents of that
country and generally are convertible into local shares. Foreign shares may be
subject to restrictions on the right to receive dividends and other
distributions, have limited voting and other rights, to name a few. Local
shares are intended for ownership by nationals or residents of the country. The
market for foreign shares is generally less liquid than the market for local
shares, although in most cases foreign shares may be converted into local
shares. In addition, foreign shares often trade at a premium to local shares,
while at other times there is no premium. If the Fund were to purchase foreign
shares at a time when there is a premium and sell when there is a lower or no
premium, the Fund could realize a loss on its investment. Ownership by foreign
investors of local shares may be illegal in some jurisdictions and, in others,
foreign owners of local shares may not be entitled, among other things, to
participate in certain corporate actions such as stock dividends, rights and
warrant offerings or to vote at stockholders' meetings (while foreign holders
of foreign shares would participate). If the Fund were to own local shares and
could not participate in a stock, warrant or other distribution, the Fund could
suffer material dilution of its interest in that issuer and the value of its
holdings could decline dramatically causing a loss on its investment.
Generally, it is expected that the Fund will hold foreign shares. However,
because of their limited number foreign shares may, at times, not be available
for purchase by the Fund or, if available, the premiums may be, in the opinion
of the Adviser, unjustified or prohibitively high. In order to participate in
these markets, the Fund may deem it advisable to purchase local shares which
may expose the Fund to the additional risks described above. The Fund will only
purchase local shares where foreign shares are not available for purchase and,
when in the opinion of the Adviser, the potential for gain in these markets
outweighs the risks that issuers will take corporate actions which may result
in dilution to the Fund. Where permitted by local law, the Fund will attempt to
convert local shares to foreign shares promptly. There can be no assurance that
the Adviser will be able to assess these risks accurately or that the Fund will
be able to convert its local shares to foreign shares or that dilution will not
result.

<PAGE>

which may result in trading volatility and difficulties in the settlement and
recording of transactions, and in interpreting and applying the relevant law
and regulations. Certain developing countries do not have a comprehensive
system of laws, although substantial changes have occurred in many developing
countries in this regard in recent years. Even where adequate law exists in
certain developing countries, it may be impossible to obtain swift and
equitable enforcement of such law, or to obtain enforcement of the judgment by
a court of another jurisdiction.

In addition, stockbrokers and other intermediaries in emerging markets may not
perform as well as their counterparts in the United States and other more
developed securities markets. The prices at which the Fund may acquire
investments may be affected by trading by persons with material non-public
information and by securities transactions by brokers in anticipation of
transactions by the Fund in particular securities.

Precious Metals

The Fund may invest in precious metal coins (including gold, silver, platinum
and palladium) which have no numismatic value. The value of such coins moves
correspondingly with the price of bullion in that the value of the coins is
based primarily on their precious metal content. Since such investments do not
generate any investment income, the sole source of return from such investments
would be from gains realized on sales of the coins or bullion, and a negative
return would be realized to the extent such coins or bullion are sold at a
loss. The Fund incurs additional costs in storing gold bullion and coins. These
storage costs are generally higher than custodial costs for securities.
Although subject to substantial fluctuations in value, management believes such
investments could be beneficial to the investment performance of the Fund and
could be a potential hedge against inflation, as well as an investment with
possible growth potential. In addition, at the appropriate time, investments in
precious metal coins or bullion could help to moderate fluctuations in the
Fund's portfolio value, as at times the prices of precious metals have tended
not to fluctuate as widely as shares of issuers engaged in the mining of such
precious metals.

In view of the established world market for precious metals, the daily value of
such coins is readily ascertainable and their liquidity is assured since they
are readily saleable to dealers which maintain markets in such coins. The Fund
will maintain its precious metal coins and bullion with Wilmington Trust
Company.

Precious metal trading is a speculative activity. Prices of precious metals are
affected by factors such as cyclical economic conditions, political events and
monetary policies of various countries. Gold and other precious metals are also
subject to governmental action for political reasons. Markets are, therefore,
at times volatile and there may be sharp fluctuations in prices even during
periods of rising prices. Under current U.S. tax law, the Fund may not receive
more than 10% of its respective yearly income from gains resulting from selling
precious metals or any other physical commodity. The Fund may be required,
therefore, to hold its precious metals or sell them at a loss, or to sell its
portfolio securities at a gain, when it would not otherwise do so for
investment reasons.

Foreign Currency and Foreign Currency Transactions

Since some foreign securities in which the Fund may invest may be denominated
in foreign currencies, and since the Fund may temporarily hold foreign
currencies, the value of the assets of the Fund (and thus its net asset value)
may be affected by changes in currency exchange rates. The Fund's performance
will be less favorable if foreign currency exchange rates move adversely,
relative to the U.S. dollar. Foreign exchange rates are affected by actual and
anticipated Balance of Payments accounts, central bank policy, political
concerns and changes in interest rates, to name a few factors. There can be no
assurance that the Adviser will be able to anticipate currency fluctuations in
exchange rates accurately. The Fund may invest in a variety of derivatives. The
Fund may purchase and sell put and call options on, or enter into futures
contracts or forward contracts to purchase or sell, foreign currencies. The
Fund will enter into foreign currency contracts for hedging purposes only and
not for speculation. The Fund may also use foreign currency contracts to hedge
the U.S. dollar value of a security which it already owns or anticipates
purchasing. A forward currency contract may thus help reduce the Fund's losses
on a security when a foreign currency's value changes. The Fund will enter into
forward contracts to duplicate a cash market transaction. However, the Fund
will invest in securities including short-term obligations, denominated in a
range of foreign currencies and the value of the Fund will be

<PAGE>

affected by changes in currency exchange rates. The Fund will not purchase or
sell foreign currency as an investment. See "Options," "Futures Contracts" and
"Hedging and Other Investment Techniques and Strategies" below and "Foreign
Currency Transactions" and "Futures and Options Transactions" in the Statement
of Additional Information.

Options

For hedging and other purposes (such as creating synthetic positions), the Fund
may invest up to 5% of its total assets, taken at market value at the time of
investment, in premiums on call and put options on domestic and foreign
securities, foreign currencies, stock and bond indices, financial futures
contracts and commodity futures contracts. This policy may be changed without
shareholder approval.

As the holder of a call or put option, the Fund pays a premium and has the
right (for generally 3 to 9 months) to purchase (in the case of a call option)
or sell (in the case of a put option) the underlying asset at the exercise
price at any time during the option period. An option on a futures contract
gives the purchaser the right, but not the obligation, in return for the
premium paid, to assume a position in a specified underlying futures contract
(which position may be a long or short position) at a specified exercise price
during the option exercise period. If the call or put is not exercised or sold
(whether or not at a profit), it will become worthless at its expiration date
and the Fund will lose its premium payment. The Fund may, with respect to
options it has purchased, sell them, exercise them or permit them to expire.

The Fund may 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. If the call or put option is exercised, the Fund must sell (in the
case of a written call option) or buy (in the case of written put option) the
underlying asset at the exercise price. The Fund may write only covered put and
call options. A covered call option, which is a call option with respect to
which the Fund owns the underlying asset, 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 asset or to possible continued holding of
an underlying asset which might otherwise have been sold to protect against
depreciation in the market price of the underlying asset. A covered put option
written by the Fund exposes it during the term of the option to a decline in
price of the underlying asset. 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. Covering a put option
sold does not reduce the risk of loss.

The Fund may invest in options which are either listed on a domestic securities
exchange or traded on a recognized foreign exchange. In addition, the Fund may
purchase or sell over-the-counter options from dealers or banks to hedge
securities or currencies as approved by the Board of Trustees. In general,
exchange traded options are third party contracts with standardized prices and
expiration dates. Over-the-counter options are two party contracts with price
and terms negotiated by the buyer and seller, are generally considered
illiquid, and will be limited to 10% of total net assets of the Fund.

Futures Contracts

The Fund 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 Fund may also buy and sell commodity
futures contracts which may include futures contracts on gold and other natural
resources and on gold and other natural resources 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.

The Fund may invest in commodity futures contracts and in options on commodity
futures contracts (collectively, "commodity interests"). Trading in commodity
interests involves numerous risks such as leverage, illiquidity, governmental
intervention designed to influence commodity prices and the possibility of
delivery of the commodity interests' underlying commodities. Commodity markets
are highly volatile. In the event that the Fund is required to take delivery of
a commodity, such commodity will be deemed to be illiquid, and the Fund will
bear the cost of storing the commodity until such commodity is sold and may
incur substantial costs in its disposition. The Fund will not use commodity
futures contracts for leveraging purposes in excess of applicable limitations.

<PAGE>

make additional margin payments, known as "variation margin," to cover any
additional obligation it may have under the contract. The Fund will not commit
more than 5% of its total assets to initial margin deposits on futures
contracts and premiums on options on futures contracts.

The Fund may write, purchase or sell put and call options on financial futures
contracts and, in addition, the Fund may write, purchase or sell put and call
options on commodity futures contracts. The Fund may write only covered put and
call options. An option on a futures contract gives the purchaser the right,
but not the obligation, in return for the premium paid, to assume a position in
a specified underlying futures contract (which position may be a long or short
position) at a specified exercise price during the option exercise period. The
writer of an option is obligated to assume a position in a specified futures
contract if the option is exercised.

In establishing a position in a futures contract, which may be a long or short
position, cash or high quality debt instruments equal in value to the current
value of the underlying securities less the margin requirement will be
segregated, as may be required, with the Fund's Custodian to ensure that the
Fund's position is unleveraged. This segregated account will be
marked-to-market daily to reflect changes in the value of the underlying
futures contract. Certain exchanges do not permit trading in particular
commodities at prices in excess of daily price fluctuation limits set by the
exchange, and thus the Fund could be prevented from liquidating its position
and thus be subjected to losses. Trading in futures contracts traded on foreign
commodity exchanges may be subject to the same or similar risks as trading in
foreign securities. See "Risk Factors-Foreign Securities."

Hedging and Other Investment Techniques and Strategies

Options and futures contracts can be used by the Fund as part of various
hedging techniques and strategies.

When the Fund intends to acquire securities (or gold bullion or coins) for its
portfolio it may use call options or futures contracts as a means of fixing the
price of the security (or gold) it intends to purchase at the exercise price
(in the case of an option) or contract price (in the case of a futures
contract). An increase in the acquisition cost would be offset, in whole or
part, by a gain on the option or futures contract. Options and futures
contracts requiring delivery of a security may also be useful to the Fund in
purchasing a large block of securities that would be more difficult to acquire
by direct market purchases. If the Fund holds a call option rather than the
underlying security itself, the Fund is partially protected from any unexpected
decline in the market price of the underlying security and in such event could
allow the call option to expire, incurring a loss only to the extent of the
premium paid for the option. Using a futures contract would not offer such
partial protection against market declines and the Fund would experience a loss
as if it had owned the underlying security.

To protect against anticipated declines in the value of the Fund's investment
holdings the Fund may use options, forward and futures contracts, and similar
investments (commonly referred to as derivatives) as a defensive technique to
protect the value of an asset the Adviser deems desirable to hold for tax or
other considerations or for investment reasons. One defensive technique
involves selling a futures or forward contract or purchasing a put option whose
value is expected to be inversely related to the security or asset being
hedged. If the anticipated decline in the value of the asset occurs, it would
be offset, in whole or part, by a gain on the futures contract or put option.
The premium paid for the put option would reduce any capital gain otherwise
available for distribution when the security is eventually sold.

The Fund may hedge against changes in the value of the U.S. dollar in relation
to a foreign currency in which portfolio securities of the Fund may be
denominated. The Fund may employ hedging strategies with options and futures
contracts on foreign currencies before the Fund purchases a foreign security,
during the period the Fund holds the foreign security, or between the date the
foreign security is purchased or sold and the date on which payment therefore
is made or received. Hedging against a change in the value of a foreign
currency in the foregoing manner does not eliminate fluctuations in the prices
of portfolio securities or prevent losses if the prices of such securities
decline. Furthermore, such hedging transactions reduce or preclude the
opportunity for gain if the value of the hedged currency should change relative
to the U.S. dollar. Last, where the Fund uses options and futures in
anticipation of the purchase of a portfolio security to hedge against adverse
movements in the security's

<PAGE>

underlying currency, but where the purchase of such security is subsequently
deemed undesirable, the Fund may incur a gain or loss on the option or futures
contract.

The Fund may use futures contracts, options and forward contracts as part of
various investment techniques and strategies, such as creating non-speculative
"synthetic" positions or implementing "cross-hedging" strategies. A synthetic
position is deemed not to be speculative if the position is covered by
segregation of short-term liquid assets. However, since the financial markets
in the developing countries are not as developed as in the United States, these
financial investments may not be available to the Fund and the Fund may be
unable to hedge certain risks or enter into certain transactions. A "synthetic
position" is the duplication of a cash market transaction when deemed
advantageous by the Adviser for cost, liquidity or transactional efficiency
reasons. A cash market transaction is the purchase or sale of a security or
other asset for cash. For example, from time to time, the Fund experiences
large cash inflows which may be redeemed from the Fund in a relatively short
period. In this case, the Fund currently can leave the amounts uninvested in
anticipation of the redemption or the Fund can invest in securities for a
relatively short period, incurring transaction costs on the purchase and
subsequent sale. Alternatively, the Fund may create a synthetic position by
investing in a futures contract on a security, such as a deutschemark bond or
on a securities index gaining investment exposure to the relevant market while
incurring lower overall transaction costs. The Fund would enter into such
transactions if the markets for these instruments were sufficiently liquid and
there was an acceptable degree of correlation to the cash market. By
segregating cash the Fund's futures contract position would generally be no
more leveraged or riskier than if it had invested in the cash market-i.e.,
purchased securities.

Consistent with the hedging strategy described above, the Fund may invest in
options and futures contracts and options on futures contracts on foreign
currencies for the purpose of hedging against a decline in the value of certain
U.S. dollar denominated securities or other "cross-hedging" strategies.
"Cross-hedging" involves the use of one currency to hedge against the decline
in the value of another currency. For example, the Fund could hedge against a
currency-related decline in the value of a security denominated in Deutschemark
by taking a short position in the Swiss franc. The Adviser believes that the
value of certain U.S. dollar denominated debt securities is affected by
fluctuations in the value of the U.S. Dollar relative to foreign currencies.
Furthermore, the Adviser believes it can identify those currencies whose value
is likely to move inversely with the value of the U.S. dollar. By investing a
portion of the Fund's assets in options or futures contracts on those
identified currencies, the Adviser believes that it may be able to reduce the
Fund's exposure to declines in the value of U.S. dollar denominated securities
attributable to currency value fluctuations. The use of such instruments as
described herein involves several risks. First, there can be no assurance that
the prices of such instruments and the hedged security or the cash market
position will move as anticipated. If prices do not move as anticipated the
Fund may incur a loss on its investment, may not achieve the hedging protection
it anticipated and/or incur a loss greater than if it had entered into a cash
market position. Second, investments in such instruments may reduce the gains
which would otherwise be realized from the sale of the underlying securities or
assets which are being hedged. Third, positions in such instruments can be
closed out only on an exchange that provides a market for those instruments.
There can be no assurance that such a market will exist for a particular
futures contract or option. If the Fund cannot close out an exchange traded
futures contract or option which it holds, it would have to perform its
contract obligation or exercise its option to realize any profit and would
incur transaction costs on the sale of the underlying assets.

<PAGE>

to the price of gold or other natural resources, it may use options or futures
contracts on gold or other natural resources or an index as hedging
instruments. However, there can be no assurances that in the case of foreign
currencies the exchange rate or the primary and secondary currencies will move
as anticipated or, in the case of other securities, or generally, that the
relationship between the hedged security and the hedging instrument will
continue. If they do not move as anticipated or the relationship does not
continue, a loss may result to the Fund on its investments in the hedging
positions.

See "Futures and Options Transactions" in the Statement of Additional
Information for further information about futures contracts and options,
including tax effects and risks to the Fund.

Repurchase Agreements

The Fund may engage in repurchase agreement transactions. Under the terms of a
typical repurchase agreement, the Fund would acquire an underlying debt
obligation for a relatively short period (usually not more than one week)
subject to an obligation of the seller to repurchase, and the Fund to resell,
the obligation at an agreed upon price and time, thereby determining the yield
during the Fund's holding period. The agreement results in a fixed rate of
return that is not subject to market fluctuations during the Fund's holding
period. The Fund will enter into repurchase agreements with respect to
securities in which it may invest with member banks of the Federal Reserve
System or certain non-bank dealers. Under each repurchase agreement the selling
institution will be required to maintain the value of the securities subject to
the repurchase agreement at not less than their repurchase price. Repurchase
agreements could involve certain risks in the event of default or insolvency of
the other party, including possible delays or restrictions upon the Fund's
ability to dispose of the underlying securities. The Adviser acting under the
supervision of the Board of Trustees, reviews the creditworthiness of those
non-bank dealers with which the Fund enters into repurchase agreements to
evaluate these risks. See "Repurchase Agreements" in the Statement of
Additional Information.

Debt Securities

The Fund may invest in debt securities. The market value of debt securities
generally varies in response to changes in interest rates and the financial
condition of each issuer. During periods of declining interest rates, the value
of debt securities generally increases. Conversely, during periods of rising
interest rates, the value of such securities generally declines. These changes
in market value will be reflected in the Fund's net asset value.

Debt securities with similar maturities may have different yields, depending
upon several factors, including the relative financial condition of the
issuers. For example, higher yields are generally available from securities in
the lower rating categories of S&P's or Moody's. However, the values of
lower-rated securities generally fluctuate more than those of high grade
securities and lower-rated securities present greater risk of default. High
grade means a rating of A or better by Moody's or S&P's, or of comparable
quality in the judgment of the Adviser if no rating has been given by either
service. Many securities of foreign issuers are not rated by these services.
Therefore, the selection of such issuers depends to a large extent on the
credit analysis performed by the Adviser.

New issues of certain debt securities are often offered on a when-issued basis,
that is, the payment obligation and the interest rate are fixed at the time the
buyer enters into the commitment, but delivery and payment for the securities
normally take place after the date of the commitment to purchase. The value of
when-issued securities may vary prior to and after delivery depending on market
conditions and changes in interest rate levels. However, the Fund will not
accrue any income on these securities prior to delivery. The Fund will maintain
in a segregated account with its Custodian an amount of cash or high quality
debt securities equal (on a daily marked-to-market basis) to the amount of its
commitment to purchase the when-issued securities.

Loans of Portfolio Securities

<PAGE>

letters of credit) in an amount at least equal (on a daily marked-to-market
basis) to the current market value of the securities loaned. The Fund may
terminate the loans at any time and obtain the return of the securities loaned
within one business day. The Fund will continue to receive any interest or
dividends paid on the loaned securities and will continue to have voting rights
with respect to the securities. The Fund might experience risk of loss if the
broker-dealer with which it has engaged in a portfolio loan transaction
breaches its agreement with the Fund.

Real Estate Securities

Although the Fund will not invest in real estate directly, it may invest a
portion of its assets not invested in the gold, precious and non precious
metals, and natural resources sector in equity securities of real estate
investment trusts ("REITs") and other real estate industry companies or
companies with substantial real estate investments and therefore, the Fund may
be subject to certain risks associated with direct ownership of real estate and
with the real estate industry in general. These risks include, among others:
possible declines in the value of real estate; possible lack of availability of
mortgage funds; extended vacancies of properties; risks related to general and
local economic conditions; overbuilding; increases in competition, property
taxes and operating expenses; changes in zoning laws; costs resulting from the
clean-up of, and liability to third parties for damages resulting from,
environmental problems; casualty or condemnation losses; uninsured damages from
floods, earthquakes or other natural disasters; limitations on and variations in
rents; and changes in interest rates.

Investing in REITs involves certain unique risks in addition to those risk
associated with investing in the real estate industry in general. Equity REITs
may be affected by changes in the value of the underlying property owned by the
REITs, while mortgage REITs may be affected by the quality of any credit
extended. REITs are dependent upon management skills, are not diversified, and
are subject to the risks of financing projects. REITs are subject to heavy cash
flow dependency, default by borrowers, self-liquidation and the possibilities of
failing to qualify for the exemption from tax for distributed income under the
Code. REITs (especially mortgage REITs) are also subject to interest rate risk
(i.e., as interest rated rise, the value of the REIT may decline).

Borrowing

The Fund may borrow up to 30% of the value of its net assets to increase its
holdings of portfolio securities. Under the Act, the Fund is required to
maintain continuous asset coverage of 300% with respect to such borrowings and
to sell (within three days) sufficient portfolio holdings to restore such
coverage if it should decline to less than 300% because of market fluctuations
or other factors, even if the sale would be disadvantageous from an investment
standpoint. Leveraging by means of borrowing will exaggerate the effect of any
increase or decrease in the value of portfolio securities on the Fund's net
asset value, and money borrowed will be subject to interest and other costs
(which may include commitment fees and/or the cost of maintaining minimum
average balances) which may or may not exceed the investment return received
from the securities purchased with borrowed funds. It is anticipated that such
borrowings would be pursuant to a negotiated loan agreement with a commercial
bank or other institutional lender.

Temporary Defensive Strategies

During periods of less favorable economic and/or market conditions, the Fund
may make substantial investments for temporary defensive purposes in
obligations of the U.S. Government, debt obligations of one or more foreign
governments, certificates of deposit, time deposits, bankers' acceptances, high
grade commercial paper and repurchase agreements.

Limiting Investment Risks

While an investment in the Fund is not without risk, the Fund follows certain
policies in managing its investments which may help to reduce risk. These
policies may not be changed without shareholder approval. The following are
some of the more significant investment limitations:

1. The Fund will not invest more than 10% of the value of its total net assets
in securities which are "illiquid" (including repurchase agreements which
mature in more than seven days and over-the-counter foreign currency
options).

2. The Fund will not purchase more than 10% of any class of securities of any
issuer, including more than 10% of its outstanding voting securities.

3. The Fund will not invest more than 10% of its total assets in securities of
other investment companies.

Further information regarding these and other of the Fund's investment policies
and restrictions is provided in the Statement of Additional Information.

Management

Trustees

The management of the Fund's business and affairs is the responsibility of the
Board of Trustees. For information on the Trustees and Officers of the Fund,
see "Trustees and Officers" in the Statement of Additional Information.

Investment Adviser, Manager and Administrator

<PAGE>

Fund and furnishes the Fund with a continuous investment program which includes
determining which securities should be bought, sold or held.

Henry J. Bingham, Executive Vice President of Van Eck Worldwide Insurance Trust,
is responsible for managing the gold and precious metals portion of the Fund's
portfolio of investments and has been serving in such capacity since the Fund
commenced operations. He is Executive Managing Director of the Adviser and
President of the International Investors Gold Fund series of Van Eck Funds which
is advised by the Adviser.

The natural resources portion of the Fund's portfolio of investments is managed
by the Hard Assets team which is comprised of the individuals listed below. The
members of the Hard Assets team are responsible for asset allocation decisions
and securities selection for other funds affiliated with the Adviser.

John C. Van Eck--Chairman of the Adviser, previously served as the portfolio
manager of International Investors Gold Fund. Mr. van Eck has over 45 years of
investment experience.

Derek S. Van Eck--Director of Global Investments and Executive Vice President of
the Adviser is an officer and portfolio manager of other mutual funds advised by
the Adviser.

William Trebilcock--Serves as an analyst. Mr. Trebilcock serves as Director of
Mining Research for the Adviser. Mr. Trebilcock has 28 years of experience in
his field.

Madis Senner--Serves as an analyst. Before joining Van Eck, Mr. Senner was a
global bond manager with Chase Manhattan Private Bank. Prior to that, he was
President of Sunray Securities, Inc., an investment management firm that he
founded, and, before that, was a global fixed income manager with Clemente
Capital, Inc. in New York City. Mr. Senner also serves as portfolio manager for
other funds advised by the Adviser. Mr. Senner has 12 years experience in the
investment business.

Kevin Reid--Serves as an analyst. Mr. Reid is Director of Real Estate Research
at the Adviser.

Lucille Palermo--Serves as an analyst. She is Associate Director, Mining
Research of the Adviser and an officer and portfolio manager of other mutual
funds advised by the Adviser. Ms. Palermo has 20 years experience in the
investment business.

The Fund pays the Adviser a monthly fee at the annual rate of 1% of the first
$500 million of the average daily net assets of the Fund, .90 of 1% of the next
$250 million of the average daily net assets and .70 of 1% of the average daily
net assets in excess of $750 million. The advisory fees paid to the Adviser with
respect to the Fund are higher than the fees paid by most investment companies
because of the complexities of managing this type of fund (such as following
trends, industries and companies in many different countries and stock and bond
markets throughout the world) but are comparable to the fees charged to other
investment companies with similar objectives for comparable services.
With respect to the Fund, the Adviser may from time to time, at its discretion,
waive the management fee and/or agree to pay some or all expenses of the Fund.
This has the effect of increasing the yield and total return of the Fund during
this period.

The Fund sells its shares to various insurance company variable annuity and
variable life insurance separate accounts as a funding vehicle for such
separate accounts. The Fund currently does not foresee any disadvantages to
variable annuity and variable life contract owners arising out of the fact that
the Fund offers its shares to separate accounts of various insurance companies
to serve as the investment medium for their variable products. Nevertheless,
the Board of Trustees intends to monitor events in order to identify any
material irreconcilable conflicts which may possibly arise, and to determine
what action, if any, should be taken in response to such conflicts. If such a
conflict were to occur, one or more insurance companies' separate accounts
might be required to withdraw its/their investments in the Fund and shares of
another fund may be substituted. This might force the Fund to sell securities
at disadvantageous prices. In addition, the Board of Trustees may refuse to
sell shares of the Fund to any separate account or may suspend or terminate the
offering of shares of the Fund if such action is required by law or regulatory
authority or is in the best interests of the shareholders of the Fund.

Expenses

The Fund bears all expenses of its operation other than those incurred by the
Adviser under its Advisory Agreement with the Trust. In particular, the Fund
pays: investment advisory fees, custodian fees and expenses, legal, accounting
and auditing fees, brokerage fees, taxes, expenses of preparing prospectuses
and shareholder reports for existing shareholders, registration fees and
expenses (including compensation of the Adviser's employees in relation to the
time spent on such matters), expenses of the transfer and dividend disbursing
agent, the compensation and expenses of Trustees who are not otherwise
affiliated with the Trust, the Adviser or any of its affiliates, and any
extraordinary expenses. Under the Advisory Agreement, the Adviser provides the
Fund with office space, facilities and simple business equipment and provides
the services of executive and clerical personnel for administering the affairs
of the Fund. The Adviser compensates Trustees of the Trust if such persons are
employees or affiliates of the Adviser. The Adviser will, pursuant to the
Advisory Agreement, require the Fund to reimburse it for its costs for trading
portfolio securities and maintaining books and records of the Fund, including
general ledger and daily net asset value accounting.

<PAGE>

How to Buy Shares

Shares of the Fund are offered only for purchase by separate accounts of
insurance companies as an investment medium for Contracts.

Shares of the Fund are sold at the public offering price which is net asset
value next computed after receipt of a purchase order, provided that the
purchase order is received by the Trust or the insurance company before 4:00
p.m. Eastern time. The net asset value for the Fund is computed as of the close
of business on the New York Stock Exchange which is normally 4:00 p.m. Monday
through Friday, exclusive of national business holidays. The assets of the Fund
are valued at market value or, if market value is not ascertainable, at fair
market value as determined in good faith by the Board of Trustees.

The Fund may invest in securities or futures contracts listed on foreign
exchanges which trade on Saturdays or other customary United States national
business holidays (i.e., days on which the Fund is not open for business).
Consequently, since the Fund will compute its net asset value only Monday
through Friday, exclusive of national business holidays, the net asset value of
shares of the Fund may be significantly affected on days when an investor has
no access to the Fund.

The sale of shares will be suspended during any period when the determination
of net asset value is suspended and may be suspended by the Board of Trustees
whenever the Board judges it in the Fund's best interest to do so. Certificates
for shares of the Fund will not be issued.

Dividends and Distributions

The Fund intends to distribute its net investment income in May and November
and any net realized capital gains resulting from the investment activity
annually in May.

All dividends and capital gains distributions paid on shares of the Fund are
automatically reinvested in additional shares of the Fund on the dividend
payable date at the net asset value determined at the close of business on the
reinvestment price date. The fiscal year of the Fund ends on April 30.

How to Redeem Shares

Shares of the Fund are redeemed at their net asset value next determined after
receipt of the order to redeem without the imposition of any sales commission
or redemption charge. However, certain deferred sales charges and other charges
may apply under the terms of the Contracts, which charges are described in the
Contract prospectus. Payment for the redemption of shares is made by the Fund to
the separate account in cash within seven days after tender in proper form,
except under unusual circumstances as determined by the SEC. The redemption
price will be the net asset value next determined after the receipt by the Trust
or insurance company of a request in proper form provided the request is
received prior to 4:00 p.m. Eastern time. The market value of the securities in
the Fund is subject to daily fluctuations and the net asset value of the Fund's
shares will fluctuate accordingly. Therefore, the redemption value may be more
or less than the original purchase price for such shares.

Federal Taxation

The Fund intends to qualify as a "regulated investment company" ("RIC") under
the Internal Revenue Code (the "Code") and will not pay federal income tax to
the extent that it distributes its net taxable investment income and capital
gains.
14

<PAGE>

Section 817(h) of the Code provides that certain variable contracts, based upon
one or more segregated asset accounts of a life insurance company, will not be
treated as annuity, endowment or life insurance contracts for any period during
which the investments made by such accounts are not adequately diversified. The
regulations promulgated under section 817(h) of the Code, specify various
investment diversification requirements. In addition, the regulations provide
that an investment by a segregated asset account of a life insurance company in
a qualifying RIC is not treated as a single investment. Instead, a pro rata
portion of each asset of the RIC is treated as an asset of the segregated asset
account. The Fund intends to invest so as to enable the Contracts to satisfy
the diversification requirements imposed by Section 817(h) of the Code and the
applicable regulations.

The tax treatment of payments made by a separate account to a Contract holder
is described in the Contract prospectus.

Description of the Trust

The Trustees of the Trust have authority to issue an unlimited number of shares
of beneficial interest of the Fund, $.001 par value. To date, five series or
Funds of the Trust have been authorized, which shares constitute the interests
in the Gold and Natural Resources Fund, Worldwide Bond Fund, Worldwide SmallCap
Fund, Worldwide Hard Assets Fund and Worldwide Balanced Fund. Shares of
Worldwide SmallCap Fund are not currently offered to the public.

The Fund is classified as a diversified fund. A diversified fund is a fund
which meets the following requirements: At least 75% of the value of its total
assets is represented by cash and cash items (including receivables),
Government securities, securities of other investment companies and other
securities for the purpose of this calculation limited in respect of any one
issuer to an amount not greater than 5% of the value of the Fund's total assets
and to not more than 10% of the outstanding voting securities of such issuer. A
"series" is a separate pool of assets of the Trust which is separately managed
and which may have different investment objectives from those of another
series. The Trustees have the authority, without the necessity of a shareholder
vote, to create any number of new series.

Each share of the Fund has equal dividend, redemption and liquidation rights
and when issued is fully paid and non-assessable by the Trust. Under the
Trust's Master Trust Agreement, no annual or regular meeting of shareholders is
required. Thus, there will ordinarily be no shareholder meetings unless
required by the Act. The Trust held an initial meeting of shareholders on April
1, 1991, at which shareholders elected the Board of Trustees, approved the
Advisory Agreement and ratified the selection of the Trust's independent
accountants.The Trustees are a self-perpetuating body unless and until fewer
than 50% of the Trustees, then serving as Trustees, are Trustees who were
elected by shareholders. At that time another meeting of shareholders will be
called to elect additional Trustees. On any matter submitted to the
shareholders, the holder of each Trust share is entitled to one vote per share
(with proportionate voting for fractional shares). Under the Master Trust
Agreement, any Trustee may be removed by vote of two-thirds of the outstanding
Trust shares; and holders of ten percent or more of the outstanding shares of
the Trust can require Trustees to call a meeting of shareholders for purposes
of voting on the removal of one or more Trustees. Shareholders of the Fund are
entitled to vote on matters affecting the Fund (such as the elections of
Trustees and ratification of the selection of the Trust's independent
accountants). In accordance with the Act, under certain circumstances the Trust
will assist shareholders in communicating with other shareholders in connection
with calling a special meeting of shareholders. The insurance company separate
accounts, as the sole shareholders of the Fund, have the right to vote Fund
shares at any meeting of shareholders. However, the Contracts may provide that
the separate accounts will vote Fund shares in accordance with instructions
received from Contract holders. See the applicable Contract prospectus for
information regarding Contract holders' voting rights.

<PAGE>

Under Massachusetts law, the shareholders of the Trust could, under certain
circumstances, be held personally liable for the obligations of the Trust.
However, the Master Trust Agreement of the Trust disclaims shareholder
liability for acts or obligations of the Trust and requires that notice of such
disclaimer be given in each agreement, obligation or instrument entered into or
executed by the Trust or the Trustees. The Master Trust Agreement provides for
indemnification out of the Trust's property for all losses and expenses of any
shareholder held personally liable for the obligations of the Trust. Thus, the
risk of a shareholder incurring financial loss on account of shareholder
liability is limited to circumstances in which the Trust itself would be unable
to meet its obligations. The Fund's Adviser believes that, in view of the
above, the risk of personal liability to shareholders is remote.

Additional Information

Advertising

From time to time the Fund may use various media to advertise performance. Past
performance is not necessarily indicative of future performance.

The Fund may advertise performance in terms of average annual total return,
which is computed by finding the average annual compounded rates of return over
a period that would equate the initial amount invested to the ending redeemable
value. The calculation assumes the maximum sales charge (currently, the Fund
does not impose a sales charge on investments) is deducted from the initial
$1,000 payment and assumes all dividends and distributions by the Fund are
reinvested on the reinvestment dates during the period, and includes all
recurring fees that are charged to all shareholder accounts. In addition, the
Fund may advertise aggregate total return for a special period of time which is
determined by ascertaining the percentage change in the net asset value of
shares of the Fund initially purchased assuming reinvestment of dividends and
capital gains distribution on such shares without giving effect to the length
of time of the investment. Sales loads and other non-recurring expenses may be
excluded from the calculation of rates of return with the result that such
rates may be higher than if such expenses and sales loads were included. All
other fees will be included in the calculation of rates of return.

The Fund may quote performance results from recognized services and
publications which monitor the performance of mutual funds and the Fund may
compare its performance to various published historical indices. Micropal,
Ltd., a worldwide mutual fund performance evaluation service, is one such
rating agency. Lipper Analytical Services is another such rating agency. The
Lipper performance analysis assumes reinvestment of capital gains and
distributions, but does not give effect to sales charges or taxes. Gold and
Natural Resources Fund is rated in the "Gold Oriented Funds" category. The Fund
may be compared to indices such as the historical price of gold, the Standard &
Poor's 500 or the Morgan Stanley Gold Mines Index. For a further discussion of
advertising see "Performance" in the Statement of Additional Information.

For further information about the Fund, please call or write to your insurance
company or call toll free (800) 221-2220 (in New York call (212) 687-5200) or
write to the Fund at the cover page address.

Custodian

The Custodian of the assets of the Trust is Bankers Trust Company, New York,
New York.

Independent Accountants

Coopers & Lybrand L.L.P., New York, New York provides audit services,
consultation and advice with respect to financial information in the Trust's
filings with the Securities and Exchange Commission, consults with the Trust on
accounting and financial report matters and prepares the Trust's tax return.

Counsel

Goodwin, Procter & Hoar, One Exchange Place, Boston, Massachusetts acts as
Counsel for the Trust.
16
<PAGE>

LOGO PROSPECTUS
VAN ECK GOLD AND
NATURAL RESOURCES FUND
99 Park Avenue
New York, New York 10016
(212) 687-5200

The Van Eck Gold and Natural Resources Fund is a series of Van Eck
Worldwide Insurance Trust, a Massachusetts business trust. The Fund is managed
by Van Eck Associates Corporation (the "Adviser").

Van Eck Worldwide Insurance Trust (the "Trust") is an open-end
management investment company. Shares of the Gold and Natural Resources Fund are
offered only to separate accounts of various insurance companies to fund the
benefits of variable life policies and variable annuity contracts (the
"Contracts").

GOLD AND NATURAL RESOURCES FUND -- seeks long-term capital appreciation
by investing in equity and debt securities of companies engaged in the
exploration, development, production and distribution of gold and other natural
resources, such as strategic and other metals, minerals, forest products, oil,
natural gas and coal. Current income is not an investment objective.

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

This Prospectus sets forth concisely information about the Trust and
Fund that you should know before investing. It should be read in conjunction
with the prospectus for the Contract which accompanies this Prospectus and
should be retained for future reference. For further information about the Fund,
please call the Fund or the Distributor at the above telephone number.

The Contracts involve certain expenses not described in this Prospectus
and also may involve certain restrictions or limitations on the allocation of
purchase payments or Contract values to the Fund. See the applicable Contract
prospectus for information regarding expenses of the Contract and any applicable
restrictions or limitations with respect to the Fund.

A Statement of Additional Information, dated September 1, 1995, which
further discusses the Trust and the Fund has been filed with the Securities and
Exchange Commission and is incorporated herein by reference. It is available
without charge upon request to the Fund or the Distributor at the above address
or by calling the telephone number listed above.

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

THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES AND
EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION NOR HAS THE SECURITIES
AND EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION PASSED UPON THE
ACCURACY OR ADEQUACY OF THIS PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY IS A
CRIMINAL OFFENSE.

Prospectus Dated September 1, 1995
<PAGE>

TABLE OF CONTENTS

Page
----

The Fund................................. 1
Financial Highlights..................... 1
Investment Objective and Policies of the
Fund..................................... 2
Risk Factors............................. 3
Limiting Investment Risks................ 11
Management............................... 12
How to Buy Shares........................ 13
Dividends and Distributions.............. 14
How to Redeem Shares..................... 14
Federal Taxation......................... 14
Description of the Trust................. 15
Additional Information................... 16

i
<PAGE>

THE FUND

Gold and Natural Resources Fund (the "Fund") is an open-end management
investment company. The Fund is a series of Van Eck Worldwide Insurance Trust, a
business trust organized under the laws of the Commonwealth of Massachusetts on
January 7, 1987. The Fund is classified as diversified under the Investment
Company Act of 1940 (the "Act").

FINANCIAL HIGHLIGHTS

The Financial Highlights below give selected information for a share of
the Fund outstanding for the year or period indicated. The Financial Highlights
presented have been audited by Deloitte & Touche LLP, independent accountants,
for all years from commencement of operations through April 30, 1992. The
Financial Highlights presented have been audited by Coopers & Lybrand L.L.P.,
independent accountants, for all other fiscal years ended April 30, whose
reports thereon appear in the Fund's Annual Report. This information should be
read in conjunction with the financial statements and related notes that also
appear in the Fund's Annual Report. The Annual Report also contains additional
performance information that will be made available on request and without
charge.

<TABLE>
<CAPTION>
GOLD AND NATURAL RESOURCES FUND
----------------------------------------------------------------
YEAR ENDED APRIL 30,
----------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period................ $ 13.31 $ 10.61 $ 8.25 $ 8.85 $ 9.51 $ 10.00
-------- -------- -------- -------- -------- --------
Income From Investment Operations:
Net Investment Income............................. 0.08 0.07 0.01 0.04 0.16 0.08
Net Gains or Losses on Securities (both realized
and unrealized)................................. 0.37 2.47 2.39 (0.53) (0.69) (0.57)
-------- -------- -------- -------- -------- --------
Total From Investment Operations.............. 0.45 2.54 2.40 (0.49) (0.53) (0.49)
-------- -------- -------- -------- -------- --------
Less Distributions:
Dividends (from net investment income) ........... (0.07) (0.04) (0.04) (0.11) (0.13) --
Distributions (from capital gains) ............... -- -- -- -- -- --
-------- -------- -------- -------- -------- --------
Total Distributions............................. (0.07) (0.04) (0.04) (0.11) (0.13) 0.00
-------- -------- -------- -------- -------- --------
Net Asset Value, End of Period...................... $ 13.49 $ 13.11 $ 10.61 $ 8.25 $ 8.85 $ 9.51
======== ======== ======== ======== ======== ========
Total Return(a)..................................... 3.43% 23.96% 29.19% (5.62)% (5.67)% (4.90)%
Ratios/Supplementary Data:
Net Assets, End of Period (000's omitted) ........ $127,320 $ 81,248 $ 30,896 $ 9,836 $ 6,936 $ 3,660
Ratio of Expenses to Average Net Assets(b)........ 0.96% 0.96% 1.61% 1.32% 0.52% --
Ratio of Net Income to Average Net Assets......... 0.71% 0.64% 0.25% 0.60% 2.10% 2.46%*
Portfolio Turnover Rate........................... 23.30% 15.84% 14.61% 0.48% 21.86% 5.09%*
</TABLE>

- ---------------
(a) Total return is calculated assuming an initial investment made at the net
asset value at the beginning of the period, reinvestment of dividends and
distribution of capital gains at net asset value during the year and a
redemption on the last day of the period. Total return for the period ended
April 30, 1990 was not annualized.
(b) Had the Adviser not reimbursed expenses,
the expense ratios for the year ended April 30, 1991 and for the period
September 1, 1989 (commencement of operations) to April 30, 1990 would have
been 1.21% and 1.87%, respectively.
* Annualized
- From September 1, 1989 (commencement of operations) to April 30, 1990.

1
<PAGE>

INVESTMENT OBJECTIVE AND POLICIES OF THE FUND

A description of the investment objective and policies of the Fund is
set forth below. The investment objective of the Fund may not be changed without
the affirmative vote of a majority of the outstanding voting securities of the
Fund. As a result of the market risk inherent in any investment, there is no
assurance that the Fund will achieve its objective. For further information
about the Fund's investment policies, see "Investment Objective and Policies" in
the Statement of Additional Information.

GOLD AND NATURAL RESOURCES FUND

OBJECTIVE:

Gold and Natural Resources Fund seeks long-term capital appreciation by
investing in equity and debt securities of companies engaged in the exploration,
development, production and distribution of gold and other natural resources
such as strategic and other metals, minerals, forest products, oil, natural gas
and coal. Current income is not an investment objective.

POLICIES:

During normal market conditions, the Fund will have at least 65% of its
total assets invested in securities of companies engaged in gold mining and
natural resources activities. The Fund may also invest in equity and debt
securities of companies which themselves invest in companies engaged in these
activities. The Fund also has the right to invest up to 35% of its assets in the
securities of non-precious metals and natural resources companies.

The Adviser believes that securities of precious metals companies and
certain other natural resources companies offer an opportunity to protect wealth
against eroding monetary values. Recent history indicates that the policies of
many governments seeking economic growth, particularly persistent budget
deficits and high rates of growth of monetary reserves and money supply, have
had long-term inflationary consequences. During periods of accelerating
inflationary policies the prices of many precious metals equity securities have
risen cyclically, and the Adviser believes that they may continue to do so in
the future. The Adviser anticipates that inflation and the price of gold will
continue on a long-term upward trend with alternating cycles as credit is over-
expanded and subsequently tightened. The price of gold decreases when inflation
is not perceived as a risk. Since the market action of gold mining shares may
move against or independently of the market trend of industrial shares, the
addition of such shares to an overall portfolio may increase the return and
reduce the fluctuations of such portfolio. There can be no assurance that an
increased rate of return or a reduction in fluctuations of a portfolio will be
achieved. Thus, an investment in the Fund should be considered part of an
overall investment program rather than a complete investment program.

The five largest gold producing countries are the Republic of South
Africa, the United States, Australia, CIS (the former U.S.S.R.) and Canada.
During normal market conditions, the Fund expects to invest at least 25% (and
generally 50%) of its assets in securities of companies in Canada, the United
States, Australia and South Africa whose value is tied, linked or dependent upon
the actual or anticipated price of gold such as companies which are primarily
engaged in gold mining. It is uncertain under current federal tax law the extent
to which the Fund may concentrate its investments in gold and gold related
securities without adversely affecting the federal tax status of the underlying
Contracts. Accordingly, the Fund reserves the right to alter its policy with
respect to concentration in such securities if and when such uncertainty is
resolved. This limitation is not a fundamental policy of the Fund and may be
changed at any time by the Board of Trustees without a vote of shareholders. The
Fund may invest in conglomerates whose main activity is not mining.

2
<PAGE>

time of purchase in preferred stocks and preferred stocks which may be converted
into common stock. The Fund may purchase and sell financial futures and
commodity futures contracts and options on financial futures and commodity
futures contracts and may write, purchase or sell puts and calls on foreign
currencies, securities, commodities and commodity indices. The Fund may invest
in "when issued" securities, and securities of foreign issuers. For a further
discussion of these investments see "Risk Factors."

The Fund has reserved the right to invest up to 10% of its net assets,
taken at market value at the time of investment, in gold bullion and coins.

Since the Fund may invest substantially all of its assets in securities
of companies engaged in gold mining and natural resources activities, the Fund
may be subject to greater risks and market fluctuations than other investment
companies with less concentrated portfolios. The Fund has no restrictions on the
amount of its assets that may be invested in securities of foreign issuers and
thus the relative amount of such investments will change from time to time.
Investments by the Fund in securities of gold mining shares, coins and gold
bullion, foreign issuers, foreign currencies, and options and futures may
involve particular investment risks. In addition, the Fund may lend its
portfolio securities and borrow money for investment purposes (i.e., leverage
its portfolio). See "Risk Factors."

RISK FACTORS

Assets of the Fund are subject to market fluctuations and risks inherent
in all securities. In addition, assets of the Fund may be subject to other
special considerations, such as those listed below.

FOREIGN SECURITIES

The Fund may purchase securities of foreign issuers including foreign
investment companies. Investments in foreign securities may involve a greater
degree of risk than investments in domestic securities due to the possibility of
exchange rate fluctuations and exchange controls, less publicly available
information, more volatile or less liquid securities markets, and the
possibility of expropriation, confiscatory taxation or political, economic or
social instability. In addition, some foreign companies are not generally
subject to the same uniform accounting, auditing and financial reporting
standards as are American companies and there may be less government supervision
and regulation of foreign stock exchanges, brokers and companies. Foreign
securities may be subject to foreign taxes, higher custodian fees, higher
brokerage commissions and higher dividend collection fees which could reduce the
yield or return on such securities, although a shareholder of the Fund may,
subject to certain limitations, be entitled to claim a credit or deduction for
United States federal income tax purposes for his proportionate share of such
foreign taxes paid by the Fund. In addition, some foreign securities in which
the Fund may invest may be denominated in foreign currencies, and since the Fund
may temporarily hold funds in foreign currencies, the value of the assets of the
Fund (and thus its net asset value) will be affected by changes in currency
exchange rates. See "Foreign Currency and Foreign Currency
Transactions" below. Transactions in the securities of foreign issuers may be
subject to settlement delays. See "Taxes" in the Prospectus and "Risks Factors
- --Foreign Securities" in the Statement of Additional Information. However, the
Adviser believes that diversification of assets on an international basis
decreases the degree to which events in any one country will adversely affect an
entire portfolio.

3
<PAGE>

South Africa, including the Fund's investments and, under certain conditions, on
the liquidity of the Fund's portfolio and its ability to meet shareholder
redemption requests. The ability of the Fund to invest, or hold its investments,
in South African companies may be further affected by changes in United States
or South African laws or regulations.

Foreign brokerage commissions and custodial expenses are generally
higher than in the United States. Dividend collection fees on foreign securities
and ADRs are generally higher than on United States securities and dividends and
interest may be subject to foreign withholding tax at their source which may not
be permitted to be passed through to shareholders.

EMERGING MARKETS SECURITIES

Investments of the Fund may be made from time to time in companies in
developing countries as well as in developed countries. Shareholders should be
aware that investing in the equity and fixed income markets of developing
countries involves exposure to potentially unstable governments, economies based
on only a few industries, and securities markets which trade a small number of
securities and may therefore at times be illiquid. Securities markets of
developing countries tend to be more volatile than the markets of developed
countries. Countries with developing markets may present the risk of
nationalization of businesses, restrictions on foreign ownership, or
prohibitions of repatriation of assets, and may have less protection of property
rights than more developed countries. The economies of countries with developing
markets may be highly vulnerable to change in local or global trade conditions,
and may suffer from extreme and volatile debt burdens or inflation rates. Local
securities markets may be unable to respond effectively to increases in trading
volume, potentially making prompt liquidation of substantial holdings difficult
or impossible at times. Securities of issuers located in developing markets may
have limited marketability and may be subject to more abrupt or erratic price
movements. However, such markets have in the past provided the opportunity for
higher rates of return to investors. There is no assurance that these markets
will offer such opportunity in the future.

Many of these emerging markets limit the percentage foreign investors,
such as the Fund, may own of their domestic issuers by requiring that such
issuers issue two classes of shares- "local" and "foreign" shares. Foreign
shares may be held only by investors that are not considered nationals or
residents of that country and generally are convertible into local shares.
Foreign shares may be subject to restrictions on the right to receive dividends
and other distributions, have limited voting and other rights, to name a few.
Local shares are intended for ownership by nationals or residents of the
country. The market for foreign shares is generally less liquid than the market
for local shares, although in most cases foreign shares may be converted into
local shares. In addition, foreign shares often trade at a premium to local
shares, while at other times there is no premium. If the Fund were to purchase
foreign shares at a time when there is a premium and sell when there is a lower
or no premium, the Fund could realize a loss on its investment. Ownership by
foreign investors of local shares may be illegal in some jurisdictions and, in
others, foreign owners of local shares may not be entitled, among other things,
to participate in certain corporate actions such as stock dividends, rights and
warrant offerings or to vote at stockholders' meetings (while foreign holders of
foreign shares would participate). If the Fund were to own local shares and
could not participate in a stock, warrant or other distribution, the Fund could
suffer material dilution of its interest in that issuer and the value of its
holdings could decline dramatically causing a loss on its investment. Generally,
it is expected that the Fund will hold foreign shares. However, because of their
limited number foreign shares may, at times, not be available for purchase by
the Fund or, if available, the premiums may be, in the

4
<PAGE>

opinion of the Adviser, unjustified or prohibitively high. In order to
participate in these markets, the Fund may deem it advisable to purchase local
shares which may expose the Fund to the additional risks described above. The
Fund will only purchase local shares where foreign shares are not available for
purchase and, when in the opinion of the Adviser, the potential for gain in
these markets outweighs the risks that issuers will take corporate actions which
may result in dilution to the Fund. Where permitted by local law, the Fund will
attempt to convert local shares to foreign shares promptly. There can be no
assurance that the Adviser will be able to assess these risks accurately or that
the Fund will be able to convert its local shares to foreign shares or that
dilution will not result.

The securities markets in the emerging markets are substantially
smaller, less liquid and more volatile than the major securities markets in the
United States. A high proportion of the shares of many issuers may be held by a
limited number of persons and financial institutions, a limited number of
issuers may represent a disproportionately large percentage of market
capitalization and trading value and the securities markets are susceptible to
being influenced by large investors trading significant blocks of securities.
The Fund's ability to participate fully in the markets may be limited by its
investment policy of investing not more than 10% of its total net assets in
illiquid securities. In addition, limited liquidity may impair the Fund's
ability to liquidate a position at the time and price it wishes to do so. Many
of these stock markets are undergoing a period of growth and change which may
result in trading volatility and difficulties in the settlement and recording of
transactions, and in interpreting and applying the relevant law and regulations.
Certain developing countries do not have a comprehensive system of laws,
although substantial changes have occurred in many developing countries in this
regard in recent years. Even where adequate law exists in certain developing
countries, it may be impossible to obtain swift and equitable enforcement of
such law, or to obtain enforcement of the judgment by a court of another
jurisdiction.

In addition, stockbrokers and other intermediaries in emerging markets
may not perform as well as their counterparts in the United States and other
more developed securities markets. The prices at which the Fund may acquire
investments may be affected by trading by persons with material non-public
information and by securities transactions by brokers in anticipation of
transactions by the Fund in particular securities.

PRECIOUS METALS

The Fund may invest in precious metal coins (including gold, silver,
platinum and palladium) which have no numismatic value. The value of such coins
moves correspondingly with the price of bullion in that the value of the coins
is based primarily on their precious metal content. Since such investments do
not generate any investment income, the sole source of return from such
investments would be from gains realized on sales of the coins or bullion, and a
negative return would be realized to the extent such coins or bullion are sold
at a loss. The Fund incurs additional costs in storing gold bullion and coins.
These storage costs are generally higher than custodial costs for securities.
Although subject to substantial fluctuations in value, management believes such
investments could be beneficial to the investment performance of the Fund and
could be a potential hedge against inflation, as well as an investment with
possible growth potential. In addition, at the appropriate time, investments in
precious metal coins or bullion could help to moderate fluctuations in the
Fund's portfolio value, as at times the prices of precious metals have tended
not to fluctuate as widely as shares of issuers engaged in the mining of such
precious metals.

In view of the established world market for precious metals, the daily
value of such coins is readily ascertainable and their liquidity is assured
since they are readily saleable to dealers which maintain markets in such coins.
The Fund will maintain its precious metal coins and bullion with Wilmington
Trust Company.

5
<PAGE>

from selling precious metals or any other physical commodity. The Fund may be
required, therefore, to hold its precious metals or sell them at a loss, or to
sell its portfolio securities at a gain, when it would not otherwise do so for
investment reasons.

FOREIGN CURRENCY AND FOREIGN CURRENCY TRANSACTIONS

Since some foreign securities in which the Fund may invest may be
denominated in foreign currencies, and since the Fund may temporarily hold
foreign currencies, the value of the assets of the Fund (and thus its net asset
value) may be affected by changes in currency exchange rates. The Fund's
performance will be less favorable if foreign currency exchange rates move
adversely, relative to the U.S. dollar. Foreign exchange rates are affected by
actual and anticipated Balance of Payments accounts, central bank policy,
political concerns and changes in interest rates, to name a few factors. There
can be no assurance that the Adviser will be able to anticipate currency
fluctuations in exchange rates accurately. The Fund may invest in a variety of
derivatives. The Fund may purchase and sell put and call options on, or enter
into futures contracts or forward contracts to purchase or sell, foreign
currencies. The Fund will enter into foreign currency contracts for
hedging purposes only and not for speculation. The Fund may also use foreign
currency contracts to hedge the U.S. dollar value of a security which it already
owns or anticipates purchasing. A forward currency contract may thus help reduce
the Fund's losses on a security when a foreign currency's value changes. The
Fund will enter into forward contracts to duplicate a cash market transaction.
However, the Fund will invest in securities including short-term obligations,
denominated in a range of foreign currencies and the value of the Fund will be
affected by changes in currency exchange rates. The Fund will not purchase or
sell foreign currency as an investment. See "Options,"Futures Contracts" and
"Hedging and Other Investment Techniques and Strategies" below and "Foreign
Currency Transactions" and "Futures and Options Transactions" in the Statement
of Additional Information.

OPTIONS

For hedging and other purposes (such as creating synthetic positions),
the Fund may invest up to 5% of its total assets, taken at market value at the
time of investment, in premiums on call and put options on domestic and foreign
securities, foreign currencies, stock and bond indices, financial futures
contracts and commodity futures contracts. This policy may be changed without
shareholder approval.

As the holder of a call or put option, the Fund pays a premium and has
the right (for generally 3 to 9 months) to purchase (in the case of a call
option) or sell (in the case of a put option) the underlying asset at the
exercise price at any time during the option period. An option on a futures
contract gives the purchaser the right, but not the obligation, in return for
the premium paid, to assume a position in a specified underlying futures
contract (which position may be a long or short position) at a specified
exercise price during the option exercise period. If the call or put is not
exercised or sold (whether or not at a profit), it will become worthless at its
expiration date and the Fund will lose its premium payment. The Fund may, with
respect to options it has purchased, sell them, exercise them or permit them to
expire.

The Fund may 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. If the call or put option is exercised, the Fund must sell (in the
case of a written call option) or buy (in the case of written put option) the
underlying asset at the exercise price. The Fund may write only covered put and
call options. A covered call option, which is a call option with respect to
which the Fund owns the underlying asset, 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 asset or to possible continued holding of an
underlying asset which might otherwise have been sold to protect against
depreciation in the market price of the underlying asset. A covered put option
written by the Fund exposes it during the term of the option to a decline in
price of the underlying asset. 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. Covering a put option
sold does not reduce the risk of loss.

6
<PAGE>

The Fund may invest in options which are either listed on a domestic
securities exchange or traded on a recognized foreign exchange. In addition, the
Fund may purchase or sell over-the-counter options from dealers or banks to
hedge securities or currencies as approved by the Board of Trustees. In general,
exchange traded options are third party contracts with standardized prices and
expiration dates. Over-the-counter options are two party contracts with price
and terms negotiated by the buyer and seller, are generally considered illiquid,
and will be limited to 10% of total net assets of the Fund.

FUTURES CONTRACTS

The Fund 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 Fund may also buy and sell commodity
futures contracts which may include futures contracts on gold and other natural
resources and on gold and other natural resources 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.

The Fund may invest in commodity futures contracts and in options on
commodity futures contracts (collectively, "commodity interests"). Trading in
commodity interests involves numerous risks such as leverage, illiquidity,
governmental intervention designed to influence commodity prices and the
possibility of delivery of the commodity interests' underlying commodities.
Commodity markets are highly volatile. In the event that the Fund is required to
take delivery of a commodity, such commodity will be deemed to be illiquid, and
the Fund will bear the cost of storing the commodity until such commodity is
sold and may incur substantial costs in its disposition. The Fund will not use
commodity futures contracts for leveraging purposes in excess of applicable
limitations.

When the Fund enters into a futures contract, it must make an initial
deposit, known as "initial margin," as a partial guarantee of its performance
under the contract. As the value of the underlying asset fluctuates, either
party to the contract is required to make additional margin payments, known as
"variation margin," to cover any additional obligation it may have under the
contract. The Fund will not commit more than 5% of its total assets to initial
margin deposits on futures contracts and premiums on options on futures
contracts.

The Fund may write, purchase or sell put and call options on financial
futures contracts and, in addition, the Fund may write, purchase or sell put and
call options on commodity futures contracts. The Fund may write only covered put
and call options. An option on a futures contract gives the purchaser the right,
but not the obligation, in return for the premium paid, to assume a position in
a specified underlying futures contract (which position may be a long or short
position) at a specified exercise price during the option exercise period. The
writer of an option is obligated to assume a position in a specified futures
contract if the option is exercised.

In establishing a position in a futures contract, which may be a long or
short position, cash or high quality debt instruments equal in value to the
current value of the underlying securities less the margin requirement will be
segregated, as may be required, with the Fund's Custodian to ensure that the
Fund's position is unleveraged. This segregated account will be marked-to-market
daily to reflect changes in the value of the underlying futures contract.
Certain exchanges do not permit trading in particular commodities at prices in
excess of daily price fluctuation limits set by the exchange, and thus the Fund
could be prevented from liquidating its position and thus be subjected to
losses. Trading in futures contracts traded on foreign commodity exchanges may
be subject to the same or similar risks as trading in foreign securities. See
"Risk Factors --Foreign Securities."

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<PAGE>

HEDGING AND OTHER INVESTMENT TECHNIQUES AND STRATEGIES

Options and futures contracts can be used by the Fund as part of various
hedging techniques and strategies.

When the Fund intends to acquire securities (or gold bullion or coins)
for its portfolio it may use call options or futures contracts as a means of
fixing the price of the security (or gold) it intends to purchase at the
exercise price (in the case of an option) or contract price (in the case of a
futures contract). An increase in the acquisition cost would be offset, in whole
or part, by a gain on the option or futures contract. Options and futures
contracts requiring delivery of a security may also be useful to the Fund in
purchasing a large block of securities that would be more difficult to acquire
by direct market purchases. If the Fund holds a call option rather than the
underlying security itself, the Fund is partially protected from any unexpected
decline in the market price of the underlying security and in such event could
allow the call option to expire, incurring a loss only to the extent of the
premium paid for the option. Using a futures contract would not offer such
partial protection against market declines and the Fund would experience a loss
as if it had owned the underlying security.

To protect against anticipated declines in the value of the Fund's
investment holdings the Fund may use options, forward and futures contracts, and
similar investments (commonly referred to as derivatives) as a defensive
technique to protect the value of an asset the Adviser deems desirable to hold
for tax or other considerations or for investment reasons. One defensive
technique involves selling a futures or forward contract or purchasing a put
option whose value is expected to be inversely related to the security or asset
being hedged. If the anticipated decline in the value of the asset occurs, it
would be offset, in whole or part, by a gain on the futures contract or put
option. The premium paid for the put option would reduce any capital gain
otherwise available for distribution when the security is eventually sold.

The Fund may hedge against changes in the value of the U.S. dollar in
relation to a foreign currency in which portfolio securities of the Fund may be
denominated. The Fund may employ hedging strategies with options and futures
contracts on foreign currencies before the Fund purchases a foreign security,
during the period the Fund holds the foreign security, or between the date the
foreign security is purchased or sold and the date on which payment therefore is
made or received. Hedging against a change in the value of a foreign currency in
the foregoing manner does not eliminate fluctuations in the prices of portfolio
securities or prevent losses if the prices of such securities decline.
Furthermore, such hedging transactions reduce or preclude the opportunity for
gain if the value of the hedged currency should change relative to the U.S.
dollar. Last, where the Fund uses options and futures in anticipation of the
purchase of a portfolio security to hedge against adverse movements in the
security's underlying currency, but where the purchase of such security is
subsequently deemed undesirable, the Fund may incur a gain or loss on the option
or futures contract.

The Fund may use futures contracts, options and forward contracts as
part of various investment techniques and strategies, such as creating non-
speculative "synthetic" positions or implementing "cross-hedging" strategies. A
synthetic position is deemed not to be speculative if the position is covered by
segregation of short-term liquid assets. However, since the financial markets in
the developing countries are not as developed as in the United States, these
financial investments may not be available to the Fund and the Fund may be
unable to hedge certain risks or enter into certain transactions. A "synthetic
position" is the duplication of a cash market transaction when deemed
advantageous by the Adviser for cost, liquidity or transactional efficiency
reasons. A cash market transaction is the purchase or sale of a security or
other asset for cash. For example, from time to time, the Fund experiences large
cash inflows which may be redeemed from the Fund in a relatively short period.
In this case, the Fund currently can leave the amounts uninvested in
anticipation of the redemption or the Fund can invest in securities for a
relatively short period, incurring transaction costs on the purchase and
subsequent sale. Alternatively, the Fund may create a synthetic position by
investing in a futures contract on a security, such as a deutschemark bond or on
a securities index gaining investment exposure to the relevant market while
incurring lower overall transaction costs. The Fund would enter into such
transactions if the markets for these instruments were sufficiently liquid and
there was an acceptable degree of correlation to the cash market. By segregating
cash

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<PAGE>

the Fund's futures contract position would generally be no more leveraged or
riskier than if it had invested in the cash market --i.e., purchased securities.

Consistent with the hedging strategy described above, the Fund may
invest in options and futures contracts and options on futures contracts on
foreign currencies for the purpose of hedging against a decline in the value of
certain U.S. dollar denominated securities or other "cross-hedging" strategies.
"Cross-hedging" involves the use of one currency to hedge against the decline in
the value of another currency. For example, the Fund could hedge against a
currency-related decline in the value of a security denominated in Deutschemark
by taking a short position in the Swiss franc. The Adviser believes that the
value of certain U.S. dollar denominated debt securities is affected by
fluctuations in the value of the U.S. Dollar relative to foreign currencies.
Furthermore, the Adviser believes it can identify those currencies whose value
is likely to move inversely with the value of the U.S. dollar. By investing a
portion of the Fund's assets in options or futures contracts on those identified
currencies, the Adviser believes that it may be able to reduce the Fund's
exposure to declines in the value of U.S. dollar denominated securities
attributable to currency value fluctuations. The use of such instruments as
described herein involves several risks. First, there can be no assurance that
the prices of such instruments and the hedged security or the cash market
position will move as anticipated. If prices do not move as anticipated the Fund
may incur a loss on its investment, may not achieve the hedging protection it
anticipated and/or incur a loss greater than if it had entered into a cash
market position. Second, investments in such instruments may reduce the gains
which would otherwise be realized from the sale of the underlying securities or
assets which are being hedged. Third, positions in such instruments can be
closed out only on an exchange that provides a market for those instruments.
There can be no assurance that such a market will exist for a particular futures
contract or option. If the Fund cannot close out an exchange traded futures
contract or option which it holds, it would have to perform its contract
obligation or exercise its option to realize any profit and would incur
transaction costs on the sale of the underlying assets.

In those situations where foreign currency options or futures contracts,
or options on futures contracts may not be readily purchased (or where such
options or contracts may be deemed illiquid) in the primary currency in which
the hedge is desired, the hedge may be obtained by purchasing or selling an
option or futures contract or forward contract on a secondary currency. The
secondary currency will be selected based upon the Adviser's belief that there
exists a significant correlation between the exchange rate movements of the
primary and secondary currencies. This strategy may be employed with respect to
other securities and assets in which the Fund may invest. For example, because
the Fund invests in securities whose value is related to the price of gold or
other natural resources, it may use options or futures contracts on gold or
other natural resources or an index as hedging instruments. However, there can
be no assurances that in the case of foreign currencies the exchange rate or the
primary and secondary currencies will move as anticipated or, in the case of
other securities, or generally, that the relationship between the hedged
security and the hedging instrument will continue. If they do not move as
anticipated or the relationship does not continue, a loss may result to the Fund
on its investments in the hedging positions.

See "Futures and Options Transactions" in the Statement of Additional
Information for further information about futures contracts and options,
including tax effects and risks to the Fund.

REPURCHASE AGREEMENTS

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<PAGE>

it may invest with member banks of the Federal Reserve System or certain non-
bank dealers. Under each repurchase agreement the selling institution will be
required to maintain the value of the securities subject to the repurchase
agreement at not less than their repurchase price. Repurchase agreements could
involve certain risks in the event of default or insolvency of the other party,
including possible delays or restrictions upon the Fund's ability to dispose of
the underlying securities. The Adviser acting under the supervision of the Board
of Trustees, reviews the creditworthiness of those non-bank dealers with which
the Fund enters into repurchase agreements to evaluate these risks. See
"Repurchase Agreements" in the Statement of Additional Information.

DEBT SECURITIES

The Fund may invest in debt securities. The market value of debt
securities generally varies in response to changes in interest rates and the
financial condition of each issuer. During periods of declining interest rates,
the value of debt securities generally increases. Conversely, during periods of
rising interest rates, the value of such securities generally declines. These
changes in market value will be reflected in the Fund's net asset value.

Debt securities with similar maturities may have different yields,
depending upon several factors, including the relative financial condition of
the issuers. For example, higher yields are generally available from securities
in the lower rating categories of S&P's or Moody's. However, the values of
lower-rated securities generally fluctuate more than those of high grade
securities and lower-rated securities present greater risk of default. High
grade means a rating of A or better by Moody's or S&P's, or of comparable
quality in the judgment of the Adviser if no rating has been given by either
service. Many securities of foreign issuers are not rated by these services.
Therefore, the selection of such issuers depends to a large extent on the credit
analysis performed by the Adviser.

New issues of certain debt securities are often offered on a when-issued
basis, that is, the payment obligation and the interest rate are fixed at the
time the buyer enters into the commitment, but delivery and payment for the
securities normally take place after the date of the commitment to purchase. The
value of when-issued securities may vary prior to and after delivery depending
on market conditions and changes in interest rate levels. However, the Fund will
not accrue any income on these securities prior to delivery. The Fund will
maintain in a segregated account with its Custodian an amount of cash or high
quality debt securities equal (on a daily marked-to-market basis) to the amount
of its commitment to purchase the when-issued securities.

LOANS OF PORTFOLIO SECURITIES

The Fund may lend to broker-dealers portfolio securities with an
aggregate market value of up to one-third of its total assets. Such loans must
be secured by collateral (consisting of any combination of cash, U.S. Government
securities or irrevocable letters of credit) in an amount at least equal (on a
daily marked-to-market basis) to the current market value of the securities
loaned. The Fund may terminate the loans at any time and obtain the return of
the securities loaned within one business day. The Fund will continue to receive
any interest or dividends paid on the loaned securities and will continue to
have voting rights with respect to the securities. The Fund might experience
risk of loss if the broker-dealer with which it has engaged in a portfolio loan
transaction breaches its agreement with the Fund.

REAL ESTATE SECURITIES

10
<PAGE>

competition, property taxes and operating expenses; changes in zoning laws;
costs resulting from the clean-up of, and liability to third parties for damages
resulting from, environmental problems; casualty or condemnation losses;
uninsured damages from floods, earthquakes or other natural disasters;
limitations on and variations in rents; and changes in interest rates.

REITs are pooled investment vehicles which invest primarily in income
producing real estate or real estate related loans or interests. REITs are
generally classified as equity REITs, mortgage REITs or hybrid REITs. Equity
REITs invest the majority of their assets directly in real property and derive
income primarily from the collection of rents. Equity REITs can also realize
capital gains by selling properties that have appreciated in value. Mortgage
REITs invest the majority of their assets in real estate mortgages and derive
income from the collection of interest payments. REITs are not taxed on income
distributed to shareholders provided they comply with several requirements of
the Internal Revenue Code of 1986, as amended (the "Code").

Investing in REITs involves certain unique risks in addition to those
risk associated with investing in the real estate industry in general. Equity
REITs may be affected by changes in the value of the underlying property owned
by the REITs, while mortgage REITs may be affected by the quality of any credit
extended. REITs are dependent upon management skills, are not diversified, and
are subject to the risks of financing projects. REITs are subject to heavy cash
flow dependency, default by borrowers, self-liquidation and the possibilities of
failing to qualify for the exemption from tax for distributed income under the
Code. REITs (especially mortgage REITs) are also subject to interest rate risk
(i.e., as interest rated rise, the value of the REIT may decline).

BORROWING

The Fund may borrow up to 30% of the value of its net assets to increase
its holdings of portfolio securities. Under the Act, the Fund is required to
maintain continuous asset coverage of 300% with respect to such borrowings and
to sell (within three days) sufficient portfolio holdings to restore such
coverage if it should decline to less than 300% because of market fluctuations
or other factors, even if the sale would be disadvantageous from an investment
standpoint. Leveraging by means of borrowing will exaggerate the effect of any
increase or decrease in the value of portfolio securities on the Fund's net
asset value, and money borrowed will be subject to interest and other costs
(which may include commitment fees and/or the cost of maintaining minimum
average balances) which may or may not exceed the investment return received
from the securities purchased with borrowed funds. It is anticipated that such
borrowings would be pursuant to a negotiated loan agreement with a commercial
bank or other institutional lender.

TEMPORARY DEFENSIVE STRATEGIES

During periods of less favorable economic and/or market conditions, the
Fund may make substantial investments for temporary defensive purposes in
obligations of the U.S. Government, debt obligations of one or more foreign
governments, certificates of deposit, time deposits, bankers' acceptances, high
grade commercial paper and repurchase agreements.

LIMITING INVESTMENT RISKS

While an investment in the Fund is not without risk, the Fund follows
certain policies in managing its investments which may help to reduce risk.
These policies may not be changed without shareholder approval. The following
are some of the more significant investment limitations:

1. The Fund will not invest more than 10% of the value of its total
net assets in securities which are "illiquid" (including repurchase
agreements which mature in more than seven days and over-the-counter
foreign currency options).

2. The Fund will not purchase more than 10% of any class of
securities of any issuer, including more than 10% of its outstanding
voting securities.

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<PAGE>

3. The Fund will not invest more than 10% of its total assets in
securities of other investment companies.

Further information regarding these and other of the Fund's investment
policies and restrictions is provided in the Statement of Additional
Information.

MANAGEMENT

TRUSTEES

The management of the Fund's business and affairs is the responsibility
of the Board of Trustees. For information on the Trustees and Officers of the
Fund, see "Trustees and Officers" in the Statement of Additional Information.

INVESTMENT ADVISER, MANAGER AND ADMINISTRATOR

Van Eck Associates Corporation, located at 99 Park Avenue, New York, New
York 10016, serves as investment adviser and manager to the Fund pursuant to an
Advisory Agreement with the Trust. The Adviser manages the investment operations
of the Fund and furnishes the Fund with a continuous investment program which
includes determining which securities should be bought, sold or held.

Henry J. Bingham, Executive Vice President of Van Eck Worldwide
Insurance Trust, is responsible for managing the gold and precious metals
portion of the Fund's portfolio of investments and has been serving in such
capacity since the Fund commenced operations. He is Executive Managing Director
of the Adviser and President of the International Investors Gold Fund series of
Van Eck Funds which is advised by the Adviser.

The natural resources portion of the Fund's portfolio of investments is
managed by the Hard Assets team which is comprised of the individuals listed
below. The members of the Hard Assets team are responsible for asset allocation
decisions and securities selection for other funds affiliated with the Adviser.

John C. van Eck -- Chairman of the Adviser, previously served as the
portfolio manager of International Investors Gold Fund. Mr. van Eck has over 45
years of investment experience.

Derek S. van Eck -- Director of Global Investments and Executive Vice
President of the Adviser is an officer and portfolio manager of other mutual
funds advised by the Adviser.

William Trebilcock -- Serves as an analyst. Mr. Trebilcock
serves as Director of Mining Research for the Adviser. Mr. Trebilcock has 28
years of experience in his field.

Madis Senner -- Serves as an analyst. Before joining Van Eck, Mr. Senner
was a global bond manager with Chase Manhattan Private Bank. Prior to that, he
was President of Sunray Securities, Inc., an investment management firm that he
founded, and, before that, was a global fixed income manager with Clemente
Capital, Inc. in New York City. Mr. Senner also serves as portfolio manager for
other funds advised by the Adviser. Mr. Senner has 12 years experience in the
investment business.

Kevin Reid -- Serves as an analyst. Mr. Reid is Director of Real Estate
Research at the Adviser.

Lucille Palermo -- Serves as an analyst. She is Associate Director,
Mining Research of the Adviser and an officer and portfolio manager of other
mutual funds advised by the Adviser. Ms. Palermo has 20 years experience in the
investment business.

The Fund pays 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. The advisory fees paid to
the Adviser with respect to the Fund are higher than the fees paid by most
investment companies because of the complexities of managing this type of fund
(such as following trends, industries and companies in

12
<PAGE>

many different countries and stock and bond markets throughout the world) but
are comparable to the fees charged to other investment companies with similar
objectives for comparable services.

With respect to the Fund, the Adviser may from time to time, at its
discretion, waive the management fee and/or agree to pay some or all expenses of
the Fund. This has the effect of increasing the yield and total return of the
Fund during this period.

The Adviser also acts as investment adviser or sub-investment adviser to
other mutual funds registered with the Securities and Exchange Commission under
the Act and manages or advises managers of portfolios of pension plans and
others.

The Fund sells its shares to various insurance company variable annuity
and variable life insurance separate accounts as a funding vehicle for such
separate accounts. The Fund currently does not foresee any disadvantages to
variable annuity and variable life contract owners arising out of the fact that
the Fund offers its shares to separate accounts of various insurance companies
to serve as the investment medium for their variable products. Nevertheless, the
Board of Trustees intends to monitor events in order to identify any material
irreconcilable conflicts which may possibly arise, and to determine what action,
if any, should be taken in response to such conflicts. If such a conflict were
to occur, one or more insurance companies' separate accounts might be required
to withdraw its/their investments in the Fund and shares of another fund may be
substituted. This might force the Fund to sell securities at disadvantageous
prices. In addition, the Board of Trustees may refuse to sell shares of the Fund
to any separate account or may suspend or terminate the offering of shares of
the Fund if such action is required by law or regulatory authority or is in the
best interests of the shareholders of the Fund.

EXPENSES

The Fund bears all expenses of its operation other than those incurred
by the Adviser under its Advisory Agreement with the Trust. In particular, the
Fund pays: investment advisory fees, custodian fees and expenses, legal,
accounting and auditing fees, brokerage fees, taxes, expenses of preparing
prospectuses and shareholder reports for existing shareholders, registration
fees and expenses (including compensation of the Adviser's employees in relation
to the time spent on such matters), expenses of the transfer and dividend
disbursing agent, the compensation and expenses of Trustees who are not
otherwise affiliated with the Trust, the Adviser or any of its affiliates, and
any extraordinary expenses. Under the Advisory Agreement, the Adviser provides
the Fund with office space, facilities and simple business equipment and
provides the services of executive and clerical personnel for administering the
affairs of the Fund. The Adviser compensates Trustees of the Trust if such
persons are employees or affiliates of the Adviser. The Adviser will, pursuant
to the Advisory Agreement, require the Fund to reimburse it for its costs for
trading portfolio securities and maintaining books and records of the Fund,
including general ledger and daily net asset value accounting.

HOW TO BUY SHARES

Shares of the Fund are offered only for purchase by separate accounts of
insurance companies as an investment medium for Contracts.

Van Eck Securities Corporation (the "Distributor"), located at 99 Park
Avenue, New York, New York 10016, a wholly-owned subsidiary of Van Eck
Associates Corporation, has entered into a Distribution Agreement with the
Trust. The Distributor receives no compensation in connection with the sale of
shares of the Fund.

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<PAGE>

company before 4:00 p.m. Eastern time. The net asset value for the Fund is
computed as of the close of business on the New York Stock Exchange which is
normally 4:00 p.m. Monday through Friday, exclusive of national business
holidays. The assets of the Fund are valued at market value or, if market value
is not ascertainable, at fair market value as determined in good faith by the
Board of Trustees.

The Fund may invest in securities or futures contracts listed on foreign
exchanges which trade on Saturdays or other customary United States national
business holidays (i.e. , days on which the Fund is not open for business).
Consequently, since the Fund will compute its net asset value only Monday
through Friday, exclusive of national business holidays, the net asset value of
shares of the Fund may be significantly affected on days when an investor has no
access to the Fund.

The sale of shares will be suspended during any period when the
determination of net asset value is suspended and may be suspended by the Board
of Trustees whenever the Board judges it in the Fund's best interest to do so.
Certificates for shares of the Fund will not be issued.

DIVIDENDS AND DISTRIBUTIONS

The Fund intends to distribute its net investment income in May and
November and any net realized capital gains resulting from the investment
activity annually in May.

All dividends and capital gains distributions paid on shares of the Fund
are automatically reinvested in additional shares of the Fund on the dividend
payable date at the net asset value determined at the close of business on the
reinvestment price date. The fiscal year of the Fund ends on April 30.

HOW TO REDEEM SHARES

Shares of the Fund are redeemed at their net asset value next determined
after receipt of the order to redeem without the imposition of any sales
commission or redemption charge. However, certain deferred sales charges and
other charges may apply under the terms of the Contracts, which charges are
described in the Contract prospectus. Payment for the redemption of shares is
made by the Fund to the separate account in cash within seven days after tender
in proper form, except under unusual circumstances as determined by the SEC. The
redemption price will be the net asset value next determined after the receipt
by the Trust or insurance company of a request in proper form provided the
request is received prior to 4:00 p.m. Eastern time. The market value of the
securities in the Fund is subject to daily fluctuations and the net asset value
of the Fund's shares will fluctuate accordingly. Therefore, the redemption value
may be more or less than the original purchase price for such shares.

FEDERAL TAXATION

The Fund intends to qualify as a "regulated investment company" ("RIC")
under the Internal Revenue Code (the "Code") and will not pay federal income tax
to the extent that it distributes its net taxable investment income and capital
gains.

Section 817(h) of the Code provides that certain variable contracts,
based upon one or more segregated asset accounts of a life insurance company,
will not be treated as annuity, endowment or life insurance contracts for any
period during which the investments made by such accounts are not adequately
diversified. The regulations promulgated under section 817(h) of the Code,
specify various investment diversification requirements. In addition, the
regulations provide that an investment by a segregated asset account of a life
insurance company in a qualifying RIC is not treated as a single investment.
Instead, a pro rata portion of each asset of the RIC is treated as an asset of
the segregated asset account. The Fund intends to invest so as to enable the
Contracts to satisfy the diversification requirements imposed by Section 817(h)
of the Code and the applicable regulations.

The tax treatment of payments made by a separate account to a Contract
holder is described in the Contract prospectus.

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<PAGE>

DESCRIPTION OF THE TRUST

The Trustees of the Trust have authority to issue an unlimited number of
shares of beneficial interest of the Fund, $.001 par value. To date, five series
or Funds of the Trust have been authorized, which shares constitute the
interests in the Gold and Natural Resources Fund, Worldwide Bond Fund, Worldwide
SmallCap Fund, Worldwide Hard Assets Fund and Worldwide Balanced Fund. Shares of
Worldwide SmallCap Fund are not currently offered to the public.

The Fund is classified as a diversified fund. A diversified fund is a
fund which meets the following requirements: At least 75% of the value of its
total assets is represented by cash and cash items (including receivables),
Government securities, securities of other investment companies and other
securities for the purpose of this calculation limited in respect of any one
issuer to an amount not greater than 5% of the value of the Fund's total assets
and to not more than 10% of the outstanding voting securities of such issuer. A
"series" is a separate pool of assets of the Trust which is separately managed
and which may have different investment objectives from those of another series.
The Trustees have the authority, without the necessity of a shareholder vote, to
create any number of new series.

Each share of the Fund has equal dividend, redemption and liquidation
rights and when issued is fully paid and non-assessable by the Trust. Under the
Trust's Master Trust Agreement, no annual or regular meeting of shareholders is
required. Thus, there will ordinarily be no shareholder meetings unless required
by the Act. The Trust held an initial meeting of shareholders on April 1, 1991,
at which shareholders elected the Board of Trustees, approved the Advisory
Agreement and ratified the selection of the Trust's independent accountants. The
Trustees are a self-perpetuating body unless and until fewer than 50% of the
Trustees, then serving as Trustees, are Trustees who were elected by
shareholders. At that time another meeting of shareholders will be called to
elect additional Trustees. On any matter submitted to the shareholders, the
holder of each Trust share is entitled to one vote per share (with proportionate
voting for fractional shares). Under the Master Trust Agreement, any Trustee may
be removed by vote of two-thirds of the outstanding Trust shares; and holders of
ten percent or more of the outstanding shares of the Trust can require Trustees
to call a meeting of shareholders for purposes of voting on the removal of one
or more Trustees. Shareholders of the Fund are entitled to vote on matters
affecting the Fund (such as the elections of Trustees and ratification of the
selection of the Trust's independent accountants). In accordance with the Act,
under certain circumstances the Trust will assist shareholders in communicating
with other shareholders in connection with calling a special meeting of
shareholders. The insurance company separate accounts, as the sole shareholders
of the Fund, have the right to vote Fund shares at any meeting of shareholders.
However, the Contracts may provide that the separate accounts will vote Fund
shares in accordance with instructions received from Contract holders. See the
applicable Contract prospectus for information regarding Contract holders'
voting rights.

Under Massachusetts law, the shareholders of the Trust could, under
certain circumstances, be held personally liable for the obligations of the
Trust. However, the Master Trust Agreement of the Trust disclaims shareholder
liability for acts or obligations of the Trust and requires that notice of such
disclaimer be given in each agreement, obligation or instrument entered into or
executed by the Trust or the Trustees. The Master Trust Agreement provides for
indemnification out of the Trust's property for all losses and expenses of any
shareholder held personally liable for the obligations of the Trust. Thus, the
risk of a shareholder incurring financial loss on account of shareholder
liability is limited to circumstances in which the Trust itself would be unable
to meet its obligations. The Fund's Adviser believes that, in view of the above,
the risk of personal liability to shareholders is remote.

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<PAGE>

ADDITIONAL INFORMATION

ADVERTISING

From time to time the Fund may use various media to advertise
performance. Past performance is not necessarily indicative of future
performance.

The Fund may advertise performance in terms of average annual total
return, which is computed by finding the average annual compounded rates of
return over a period that would equate the initial amount invested to the ending
redeemable value. The calculation assumes the maximum sales charge (currently,
the Fund does not impose a sales charge on investments) is deducted from the
initial $1,000 payment and assumes all dividends and distributions by the Fund
are reinvested on the reinvestment dates during the period, and includes all
recurring fees that are charged to all shareholder accounts. In addition, the
Fund may advertise aggregate total return for a special period of time which is
determined by ascertaining the percentage change in the net asset value of
shares of the Fund initially purchased assuming reinvestment of dividends and
capital gains distribution on such shares without giving effect to the length of
time of the investment. Sales loads and other non-recurring expenses may be
excluded from the calculation of rates of return with the result that such rates
may be higher than if such expenses and sales loads were included. All other
fees will be included in the calculation of rates of return.

The Fund may quote performance results from recognized services and
publications which monitor the performance of mutual funds and the Fund may
compare its performance to various published historical indices. Micropal, Ltd.,
a worldwide mutual fund performance evaluation service, is one such rating
agency. Lipper Analytical Services is another such rating agency. The Lipper
performance analysis assumes reinvestment of capital gains and distributions,
but does not give effect to sales charges or taxes. Gold and Natural Resources
Fund is rated in the "Gold Oriented Funds" category. The Fund may be compared to
indices such as the historical price of gold, the Standard & Poor's 500 or the
Morgan Stanley Gold Mines Index. For a further discussion of advertising see
"Performance" in the Statement of Additional Information.

For further information about the Fund, please call or write to your
insurance company or call toll free (800) 221-2220 (in New York call (212) 687-
5200) or write to the Fund at the cover page address.

CUSTODIAN

The Custodian of the assets of the Trust is Bankers Trust Company, New
York, New York.

INDEPENDENT ACCOUNTANTS

Coopers & Lybrand L.L.P., New York, New York provides audit services,
consultation and advice with respect to financial information in the Trust's
filings with the Securities and Exchange Commission, consults with the Trust on
accounting and financial report matters and prepares the Trust's tax return.

COUNSEL

Goodwin, Procter & Hoar, One Exchange Place, Boston, Massachusetts acts
as Counsel for the Trust.