WORLDWIDE
INSURANCE TRUST
APRIL 30, 1996
VAN ECK
-----------------------
WORLDWIDE
-----------------------
BALANCED
-----------------------
FUND
-----------------------
ANNUAL
-----------------------
REPORT
[LOGO]
VAN ECK GLOBAL
THE UNUSUAL FUNDS(SM)
<PAGE>
VAN ECK WORLDWIDE BALANCED FUND
---------------------------------------------------------
4-30-96 ANNUAL REPORT/MANAGEMENT DISCUSSION & ANALYSIS
The past year has been strong for most world equity markets while the fixed
income markets had more mixed results as expectations of economic growth shifted
during the year. The Van Eck Worldwide Balanced Fund achieved a total return of
2.9% over the past year.
Equities worldwide have enjoyed solid returns during the last year. This was
particularly true in the U.S. where a combination of modest economic growth and
rising corporate earnings spurred a rise in stock prices of some 37% in 1995.
Performance has been solid through April as well, although pressure on the bond
market slowed momentum. European equity markets performed well as investors
anticipated an economic recovery. Finally, the Japanese stock market bottomed in
local currency terms last summer, and has since recovered strongly. In U.S.
dollar terms, however, the equity market there has risen less than 10% over the
past year, relatively little compared to some of the spectacular returns on
equity markets elsewhere.
Performance of the fixed income markets has generally mirrored investor
expectations of economic growth. Thus, world bonds generally performed
exceptionally well during 1995, as growth came in stronger than expected and
interest rates began to decline, but have since struggled as interest rate cuts
appeared to be at an end. Year-to-date through April 1996 has proven to be one
of the most difficult environments for bonds in recent years.
The Worldwide Balanced Fund has held a significant cash component since its
inception last year. This is primarily due to a defensive outlook for the fixed
income markets as we see economic growth picking up through the remainder of
1996 and into 1997. In addition, several equity markets appear vulnerable to us
since valuations are high. This is particularly true in the U.S. where nearly
every valuation indicator suggests that stocks here are overvalued.
THE OUTLOOK
Looking forward, we anticipate healthy economic growth in the industrialized
nations. Central banks have been priming the pump with "easy money",
particularly in Japan and Germany where short-term interest rates are at or near
historical lows. This could prove difficult for fixed income markets and
eventually could put some pressure on some equity markets. The Fund remains
defensively positioned. Defensive plays include pharmaceutical companies, where
our top holdings include Pfizer and Monsanto. Selected technology stocks also
appear attractive after difficult performance in the fourth quarter of last
year. The Fund's largest position in that sector is Intel.
May 28, 1996
*Average annual returns on the Fund for the 1-year and life (12/23/94) periods
ended 3/31/96 were 2.0% and 1.6%, respectively. Performance does not take
variable annuity/life fees and expenses into account.
This report must be accompanied or preceded by a Van Eck Worldwide Insurance
Trust Prospectus which includes more complete information such as charges and
expenses and the risks associated with international investing including
currency fluctuations or controls, expropriation, nationalization and
confiscatory taxation. Please read the prospectus before investing.
Van Eck Securities Corporation. 99 Park Avenue, New York, NY 10016
<PAGE>
[THE FOLLOWING TABLE REPRESENTS A CHART IN THE PRINTED PIECE]
VAN ECK WORLDWIDE BALANCED FUND vs GLOBAL BALANCED INDEX**
Van Eck Worldwide Global Balanced
Balanced Fund Index*
Dec-94 $10,000 $10,000
Jan-95 $10,000 $ 9,995
Feb-95 $10,000 $10,186
Mar-95 $10,000 $10,724
Apr-95 $10,000 $11,028
May-95 $10,000 $11,243
Jun-95 $10,000 $11,269
Jul-95 $10,000 $11,620
Aug-95 $10,000 $11,306
Sep-95 $ 9,991 $11,606
Oct-95 $ 9,960 $11,531
Nov-95 $10,010 $11,825
Dec-95 $ 9,990 $12,083
Jan-96 $10,120 $12,156
Feb-96 $10,180 $12,176
Mar-96 $10,200 $12,292
Apr-96 $10,290 $12,447
- --------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN*
1 Year Life
2.9% 2.1%
- --------------------------------------------------------------------------------
Past performance is not indicative of future results.
*Performance is net of the Fund's expenses only, which were fully reimbursed by
the Advisor.
*The Global Balanced Index consists of 60% MSCI World Equity Index &
40% Salomon BrothersWorld Government Bond Index.
<PAGE>
WORLDWIDE BALANCED FUND
INVESTMENT PORTFOLIO
APRIL 30, 1996
NO. OF SHARES COMMON STOCK VALUE (NOTE 1)
- --------------------------------------------------------------------------------
CHILE: 3.8%
250 Chilgener S.A. (ADR) $ 5,594
-------
FINLAND: 2.5%
100 Nokia AB "A" (ADR) 3,638
-------
HONG KONG: 7.2%
700 Cheung Kong Holdings (ADR) 4,991
600 Sun Hung Kai Properties Ltd.(ADR) 5,700
-------
10,691
-------
JAPAN: 13.5%
60 Canon Inc.(ADR) 5,970
70 Hitachi Ltd.(ADR) 7,534
30 Nomura Securities Co.(ADR) 6,504
-------
20,008
-------
NETHERLANDS: 7.4%
50 ING Groep N.V.(ADR) 3,850
50 Philips Electronics N.V. 1,765
50 Philips Electronics N.V.(ADR) 1,794
25 Royal Dutch Petroleum Co.
New York Registry Shares 3,581
-------
10,990
-------
SPAIN: 2.8%
500 Compania Sevillana de Electricidad 4,183
-------
SWEDEN: 2.6%
100 Kinnevik AB "B" 3,880
-------
THAILAND: 3.3%
1,000 Krung Thai Bank Ltd. -
Foreign Registry 4,910
-------
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
<PAGE>
WORLDWIDE BALANCED FUND
INVESTMENT PORTFOLIO (CONTINUED)
NO. OF SHARES COMMON STOCK VALUE (NOTE 1)
- --------------------------------------------------------------------------------
UNITED KINGDOM: 9.4%
500 British Aerospace PLC $ 6,565
900 Compass Group PLC 7,421
--------
13,986
--------
UNITED STATES: 47.5%
150 Allied Signal Inc. 8,719
100 Burlington Northern Santa Fe 8,750
150 Intel Corp. 10,163
100 Merck & Co. 6,050
50 Monsanto Co. 7,575
150 Pfizer Inc. 10,331
175 SunAmerica, Inc. 9,537
150 Walt Disney Company (The) 9,300
--------
70,425
--------
Total Common Stock: 100.0% (Cost: $137,754) $148,305
========
Glossary:
ADR - American Depository Receipt
SUMMARY OF INVESTMENTS % OF
BY INDUSTRY PORTFOLIO
---------------------- ---------
Aerospace & Defense 4.4%
Banks 5.9%
Brokerage 4.4%
Chemicals 5.1%
Drugs 7.0%
Electric Utilities 2.8%
Electrical Equipment 5.1%
Electronics 3.7%
Electronics & Electrical Equipment 1.2%
Entertainment & Leisure Time 6.3%
Financial Services 6.4%
Holding Co. - Diversified 2.6%
Manufacturing 5.8%
Office Equipment 4.0%
Oil Integrated - International 2.4%
Pharmaceutical 4.1%
Real Estate 7.2%
Restaurants 5.0%
Semiconductors & Equipment 6.9%
Transportation 5.9%
Utilities 3.8%
------
100.0%
======
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
<PAGE>
WORLDWIDE BALANCED FUND
FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
Statement of Assets and Liabilities
April 30, 1996
Assets:
Investments at value (identified cost, $137,754) (Note 1) $148,305
Cash 450,070
Receivables:
From Advisor 14,831
Capital shares sold 1,965
Dividends 348
Deferred organizational expenses (Note 1) 3,323
--------
Total assets 618,842
--------
Liabilities:
Payables:
Capital shares repurchased 523
Accounts payable 10,385
--------
Total liabilities 10,908
--------
Net Assets (Equivalent to $10.29 per share on
59,061 shares of beneficial interest
outstanding with an unlimited number of
$.001 par value shares authorized) $607,934
--------
Net assets consist of:
Aggregate paid in capital $596,596
Unrealized appreciation of investments 10,551
Undistributed net investment income 787
--------
$607,934
========
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
<PAGE>
WORLDWIDE BALANCED FUND
FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
Statement of Operations
For the year ended April 30, 1996
Income:
Dividends (less foreign taxes withheld of $125) $ 787
Expenses:
Management (Note 2) $ 1,400
Administrative (Note 2) 467
Professional 13,583
Custodian 6,861
Amortization of deferred organizational expenses (Note 1) 915
Reports to shareholders 333
-------
Total expenses 23,559
Expenses assumed by the Advisor and
reduced by a custodian fee arrangement (Note 2) (23,559)
-------
Net expenses 0
-------
Net investment income 787
Change in unrealized appreciation of investments:
Beginning of period 0
End of period 10,551
-------
Change in unrealized appreciation 10,551
-------
Net Increase in Net Assets
Resulting from Operations $11,338
=======
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
<PAGE>
WORLDWIDE BALANCED FUND
FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
Statements of Changes in Net Assets
FOR THE YEAR FOR THE PERIOD
ENDED DECEMBER 23,
APRIL 30, 1994 TO APRIL
1996 30, 1995
------------ --------------
Increase in Net Assets:
Operations:
Net investment income $ 787 0
Change in unrealized appreciation
of investments 10,551 0
-------- --------
Increase in net assets
resulting from operations 11,338 0
-------- --------
Capital share transactions*:
Net proceeds from sales of shares 653,649 20,864
Cost of shares reacquired (71,259) (11,658)
-------- --------
Increase in net assets resulting
from capital share transactions 582,390 9,206
-------- --------
Total increase in net assets 593,728 9,206
Net Assets:
Beginning of period 14,206 5,000
-------- --------
End of period (including undistributed
net investment income of $787 and $0,
respectively) $607,934 $ 14,206
======== ========
*Shares of Beneficial Interest
Issued and Redeemed:
Shares sold 64,737 2,086
Shares reacquired (7,097) (1,165)
-------- --------
Net increase 57,640 921
======== ========
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
<PAGE>
WORLDWIDE BALANCED FUND
FINANCIAL HIGHLIGHTS
For a share outstanding throughout each period
FOR THE PERIOD FROM
DECEMBER 23, 1994+
YEAR ENDED TO
APRIL 30, 1996 APRIL 30, 1995
-------------- -------------------
Net Asset Value, Beginning of Period $10.00 $10.00
------ ------
Income From Investment Operations:
Net Investment Income 0.04++ 0.00
Net Unrealized Gains on Securities 0.25 0.00
------ ------
Total From Investment Operations 0.29 0.00
------ ------
Net Asset Value, End of Period $10.29 $10.00
====== ======
Total Return (a) 2.90% 0.00%
- --------------------------------------------------------------------------------
Ratios/Supplementary Data
Net Assets, End of Period (000) $608 $14
Ratio of Expenses to Average Net Assets 0.00%(b) 0.00%(b)
Ratio of Net Income to Average Net Assets 0.42% 0.00%
Portfolio Turnover Rate 0.00% 0.00%
Average Commission Rate Paid $0.0422
- ------------------------------
+ Commencement of operations.
++ Based on average shares outstanding.
(a) Total return is calculated assuming an initial investment made at the net
asset value at the beginning of the period and a redemption on the last day of
the period.
(b) Had the advisor not reimbursed expenses and had the Fund not had a custodian
fee arrangement, the expense ratios would have been 12.61% and 78.40%,
respectively.
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
<PAGE>
WORLDWIDE BALANCED FUND
NOTES TO FINANCIAL STATEMENTS
- -----------------------------------------------------------------
NOTE 1-Significant Accounting Policies:
Van Eck Worldwide Insurance Trust (the"Trust"), organized as a Massachusetts
business trust on January 7, 1987, is registered under the Investment Company
Act of 1940. The following is a summary of significant accounting policies
consistently followed by the Worldwide Balanced Fund series, a non-diversified
fund (the "Fund") of the Trust in the preparation of its financial statements.
The policies are in conformity with generally accepted accounting principles.
The preparation of financial statements in conformity with generally accepted
accounting principles requires the use of management's estimates, and the actual
results could differ.
A. Security valuation-Securities traded on national exchanges and traded in the
NASDAQ National Market System are valued at the last sales prices reported at
the close of business on the last business day of the year. Over-the-counter
securities not included in the NASDAQ National Market System and listed
securities for which no sale was reported are valued at the mean of the bid and
asked prices. Short-term obligations purchased with more than sixty days
remaining to maturity are valued at market. Short-term obligations purchased
with sixty days or less to maturity are valued at cost which with accrued
interest approximates value. Securities for which quotations are not available
are stated at fair value as determined by the Board of Trustees.
B. Federal income taxes-It is the Fund's policy to comply with the provisions of
the Internal Revenue Code applicable to regulated investment companies and to
distribute all of its taxable income to its shareholders. Therefore, no federal
income tax provision is required.
C. Currency Translation-Assets and liabilities denominated in foreign currencies
and commitments under forward currency contracts are translated into U.S.
Dollars at the mean of the quoted bid and asked prices of such currencies on the
last business day of the fiscal year. Purchases and sales of investments are
translated at the exchange rates prevailing when such investments were acquired
or sold. Income and expenses are translated at the exchange rates prevailing
when accrued. Recognized gains or losses on security transactions attributable
to foreign currency fluctuations are recorded as net realized gains and losses
on investments. The portion of unrealized gains and losses on investments that
result from fluctuations in foreign currency exchange rates is not separately
disclosed.
D. Dividends and Distributions-Dividend income and distributions to shareholders
are recorded on the ex-dividend date.
E. Other-Security transactions are accounted for on the date the securities are
purchased or sold. Interest income is accrued as earned.
F. Deferred Organization Costs-Deferred organization costs are being amortized
over a period of five years.
<PAGE>
WORLDWIDE BALANCED FUND
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
- ----------------------------------------------------------
NOTE 2-Van Eck Associates Corporation (the "Advisor") earns fees for investment
management and advisory services. The fee is based on an annual rate of .75 of
1% of average daily net assets. Van Eck Associates Corporation also earns fees
for accounting and administrative services. The fee is based on an annual rate
of .25 of 1% of the Fund's average daily net assets. Fiduciary International,
Inc., the sub-investment advisor, earns fees for investment management. The fee
is based on an annual rate of .50 of 1% of the Fund's average daily net assets
and is paid by the Advisor from the advisory fees it receives from the Fund. The
sub-investment advisor waived its fee for the year ended April 30, 1996. Van Eck
Associates Corporation agreed to waive its management fees and administrative
fees and assume all other expenses for the year ended April 30, 1996. Certain of
the officers and trustees of the Trust are officers, directors or stockholders
of Van Eck Associates Corporation and Van Eck Securities Corporation.
The Fund has a fee arrangement, based on cash balances left on deposit with the
custodian, which reduces the Fund's operating expenses. For the period ended
April 30, 1996, the Fund's expenses were reduced by $6,861 under this
arrangement.
NOTE 3-Purchases of securities other than short-term obligations aggregated
$137,754 for the year ended April 30, 1996. For federal income tax purposes the
identified cost of investments owned at April 30, 1996 was $137,754. As of April
30, 1996 net unrealized appreciation for federal income tax purposes aggregated
$10,551 of which $13,008 related to appreciated securities and $2,457 related to
depreciated securities.
NOTE 4-The Fund may purchase securities on foreign exchanges. Securities of
foreign issuers involve special risks and consideration not typically associated
with investing in U.S. issuers. These risks include re-evaluation of currencies,
less reliable information about issuers, different securities transactions
clearance and settlement practices, and future adverse political and economic
developments. These risks are heightened for investments in emerging market
countries. Moreover, securities of many foreign issuers and their markets may be
less liquid and their prices more volatile than those of comparable U.S.
issuers.
NOTE 5-An income dividend of $.011 a share was paid on May 31, 1996 to
shareholders of record May 29, 1996, with the reinvestment date of May 31, 1996.
<PAGE>
COOPERS & LYBRAND
COOPERS & LYBRAND L.L.P.
a professional services firm
1301 Avenue of the Americas
New York, New York
10019-6013
telephone (212) 259-1000
facsimile (212) 259-1301
REPORT OF INDEPENDENT ACCOUNTANTS
-----------------------
To the Shareholders and Board of Trustees of
Van Eck Worldwide Insurance Trust:
We have audited the accompanying statement of assets and liabilities, including
the investment portfolio, of the Worldwide Balanced Fund (the "Fund") (one of
the series constituting the Van Eck Worldwide Insurance Trust) as of April 30,
1996, and the related statement of operations for the year then ended, the
statement of changes in net assets and the financial highlights for the year
then ended, and for the period December 23, 1994 (commencement of operations) to
April 30, 1995. These financial statements and financial highlights are the
responsibility of the Fund's management. Our responsibility is to express an
opinion on these financial statements and financial highlights based on our
audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities owned as of April
30, 1996 by correspondence with the custodian. An audit also includes assessing
the accounting principles used and significant estimates made by management, as
well as evaluating the overall financial statement presentation. We believe that
our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of the
Worldwide Balanced Fund series of the Van Eck Worldwide Insurance Trust as of
April 30, 1996, the results of its operations for the year then ended, the
changes in its net assets and the financial highlights for the year then ended
and for the period December 23, 1994 (commencement of operations) to April 30,
1995, in conformity with generally accepted accounting principles.
/s/ Coopers & Lybrand L.L.P.
COOPERS & LYBRAND L.L.P.
New York, New York
June 11, 1996
Coopers & Lybrand L.L.P. is a member of Coopers & Lybrand International, a
limited liability association incorporated in Switzerland.
