WORLDWIDE
INSURANCE TRUST
APRIL 30, 1996
VAN ECK
-----------------------
WORLDWIDE
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HARD
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ASSETS
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FUND
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ANNUAL
-----------------------
REPORT
[LOGO]
VAN ECK GLOBAL
THE UNUSUAL FUNDS(SM)
<PAGE>
VAN ECK WORLDWIDE HARD ASSETS FUND
------------------------------------------------------
4-30-96 ANNUAL REPORT/MANAGEMENT DISCUSSION & ANALYSIS
Dear Fellow Shareholder:
Hard assets performed well during the fiscal year as the Van Eck Worldwide Hard
Assets Fund had a total return of 24.4% since inception last August. This
compares favorably to the S&P 500 which rose 18.4% over this period.
Macroeconomics were important drivers of hard asset performance over the last
year. Expectations of economic growth shifted dramatically throughout the year.
Late last spring it became evident that the economy was slowing markedly after a
blistering pace in 1994 when fourth quarter GDP grew at a 5.1% growth rate.
Interest rates began falling and the equity and fixed income markets began
pricing in a rate cut on the part of the Federal Reserve. The Fed actually cut
rates at the beginning of July and continued to lower rates through January of
this year. In the first quarter of this year, expectations of economic growth
shifted once again as investors began pricing in stronger growth. Interest rates
rose and the equity and fixed income markets began pricing in rate increases by
the Federal Reserve Bank.
Hard asset performance generally mirrored investor expectations with regard to
economic growth. Base metals and forest product and paper stocks peaked in July
last year and slowly came off as investors reduced their expectations of
economic growth. However, during the first quarter of this year as expectations
of economic growth picked up, these more cyclical sectors performed well.
Energy, the largest sector allocation for the Fund throughout the year, was the
best performing hard asset sector, particularly in the first quarter of 1996.
This positive performance was driven by strong commodity prices and healthy
company fundamentals, particularly in the oil service sector. On the commodity
front, stronger-than-anticipated demand due to cold weather in the energy
intensive regions of the U.S. combined with low inventories -- inventories are
currently at 19-year lows in the U.S. -- gave rise to commodity price rises in
all energy commodities. In fact, the Automobile Association of America (AAA)
announced recently that gasoline prices were at 15-year highs. Even President
Clinton became concerned and decided to sell off part of the U.S. government's
strategic stockpile of oil. Crude oil reached $26 per barrel -- a level not seen
since Iraq's invasion of Kuwait in 1990. These strong commodity prices generally
lifted the earnings and share prices of many exploration- and
production-oriented energy companies. The Fund had been positioned well in this
sector with investments in Louisiana Land and Exploration, Triton Energy, and
United Meridian Corporation. Oil drilling companies also performed well as they
sported healthy, sustainable fundamentals for the first time since the early
1980's. The Fund's investments in this sector included Reading and Bates,
Diamond Offshore, and Sonat Offshore.
Although superficially quiet, precious metals markets were very active during
the last year. While gold and silver supply/demand fundamentals were excellent
- -- the best of any commodity, in our opinion -- the commodity markets ignored
this for the bulk of the year and precious metals prices rose only marginally.
In fact, the volatility of gold bullion reached historical lows during the year.
At the same time, a lot of trading was taking place behind the scenes. This
became evident in late November when gold lease rates soared. The immediate
cause appeared to be major forward sales of gold by South African producers.
However, at this time, the willingness of central banks to lend gold declined
and lease rates soared. We believe this illustrated the strength of gold market
fundamentals -- that market demand had easily absorbed the record supply
(forward selling) without price weakness throughout the year. In the equity
markets, gold shares have had strong performance to date in 1996, after
underperforming in 1995. The MSCI Gold Mines Index rose over 20% through April.
The Fund's portfolio is concentrated in North American and Australian shares and
<PAGE>
includes investments in Barrick Gold Corporation in Canada and Acacia Resources
in Australia.
OUTLOOK
We believe the outlook for hard assets is positive. We continue to believe the
economic and supply/demand environment for strong hard asset performance exists.
Central banks are maintaining "easy money" policies, emerging country growth
continues to be strong, and hard asset inventories are at extremely low levels.
These conditions have led to strong hard asset performance in the past.
Energy continues to be the largest allocation in the Fund, followed by real
estate, base metals, precious metals, and forest products and paper. Later in
the year, we anticipate larger investments in physical commodities as we believe
that we are approaching a period similar to 1994 when commodities outperformed
equities.
Derek S. van Eck
Portfolio Manager
May 22, 1996
*Total returns on the Fund for the year-to-date and life (8/21/95) periods ended
3/31/96 were 11.72% and 31.54%, 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 HARD ASSETS FUND
vs HARD ASSETS INDEX*
VAN ECK WORLDWIDE
HARD ASSETS FUND HARD ASSETS INDEX*
Aug-95 $10,000 $10,000
Sep-95 $ 9,948 $10,066
Oct-95 $ 9,680 $ 9,698
Nov-95 $ 9,940 $10,059
Dec-95 $10,580 $10,300
Jan-96 $11,110 $10,650
Feb-96 $11,300 $10,751
Mar-96 $11,820 $11,040
Apr-96 $12,440 $11,313
------------------------------
TOTAL RETURN SINCE INCEPTION**
24.4%
------------------------------
*Graph includes only monthly net asset values because Hard Assets Index is
computed on a monthly basis, however, the Fund's net asset value fluctuates
daily.
*Ibbotson's Hard Assets Index is 75% equities of global companies whose
primary business is linked to hard assets and 25% commodity futures. The
equity component consists of equal weightings of the MSCI Gold Mines,
Non-Ferrous Metals, Energy Sources, and Forest Products and Paper Indices,
and the National Association of Real Estate Investment Trusts Equity Index.
The commodity component consists of equal weightings of the Goldman Sachs
Energy, Precious Metals and Industrial Metals Indices.
Past performance is not indicative of future results.
**Performance is net of the Fund's expenses only, which were fully
reimbursed by the Advisor.
<PAGE>
[THE FOLLOWING TABLE REPRESENTS A CHART IN THE PRINTED PIECE]
VAN ECK WORLDWIDE HARD ASSETS FUND
vs S&P 500
VAN ECK WORLDWIDE
HARD ASSETS FUND S&P 500
Aug-95 $10,000 $10,000
Sep-95 $ 9,948 $10,401
Oct-95 $ 9,680 $10,349
Nov-95 $ 9,940 $10,774
Dec-95 $10,580 $10,962
Jan-96 $11,110 $11,320
Feb-96 $11,300 $11,398
Mar-96 $11,820 $11,488
Apr-96 $12,440 $11,643
------------------------------
TOTAL RETURN SINCE INCEPTION**
24.4%
------------------------------
*The graph shows month-end net asset values, however, the net asset value
fluctuates daily.
Past performance is not indicative of future results.
**Performance is net of the Fund's expenses only, which were fully
reimbursed by the Advisor.
<PAGE>
WORLDWIDE HARD ASSETS FUND
INVESTMENT PORTFOLIO
APRIL 30, 1996
COUNTRY/INDUSTRY NO. OF SHARES COMMON STOCK VALUE(NOTE 1)
- --------------------------------------------------------------------------------
AUSTRALIA: 11.3%
GOLD MINING: 3.7%
7,000 Acacia Resources Ltd.+ $ 17,621
5,000 Emperor Mines Ltd.+ 12,980
2,400 Sons of Gwalia Ltd. 17,086
----------
47,687
----------
MINING: 3.5%
8,401 Herald Resources Ltd. 9,649
14,200 Queensland Nickel Industry Ltd. 35,187
----------
44,836
----------
MINING - DIVERSIFIED: 2.7%
4,650 WMC Ltd. 34,293
----------
PAPER & FOREST
PRODUCTS: 1.4%
2,500 Amcor Ltd. 17,975
----------
144,791
----------
BRAZIL: 2.4%
PRINTING: 2.4%
3,400 Aracruz Celulose S.A. (ADR) 30,600
----------
CANADA: 7.3%
GOLD MINING: 4.0%
700 Barrick Gold Corp. 21,438
9,200 El Callao Mining Corp.+ 9,596
600 Goldcorp Inc. Class A 11,625
2,000 Metallica Resources Inc.+ 8,300
----------
50,959
----------
METALS - MISCELLANEOUS: 1.2%
300 Cameco Corp. 16,064
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PAPER & FOREST
PRODUCTS: 2.1%
2,000 Macmillan Bloedel Ltd. 26,589
----------
93,612
----------
INDONESIA: 2.2%
MINING: 2.2%
1,600 P.T. Tambang Timah (GDR) 27,600
----------
NETHERLANDS: 0.7%
REAL ESTATE: 0.7%
500 Renaissance Hotel Group N.V.+ 9,500
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NORWAY: 5.5%
MISCELLANEOUS: 0.9%
1,000 Alvern Norway A/S+ 11,176
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OIL/GAS EQUIPMENT
& SERVICES: 4.6%
800 Petroleum Geo-Services A/S (ADR)+ 25,300
1,200 Transocean A/S+ 33,574
----------
58,874
----------
70,050
----------
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
<PAGE>
WORLDWIDE HARD ASSETS FUND
INVESTMENT PORTFOLIO (CONTINUED)
COUNTRY/INDUSTRY NO. OF SHARES COMMON STOCK VALUE(NOTE 1)
- --------------------------------------------------------------------------------
UNITED KINGDOM: 1.7%
OIL INTEGRATED -
INTERNATIONAL: 1.7%
200 British Petroleum PLC (ADR) $ 21,850
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UNITED STATES: 68.9%
ALUMINUM: 5.7%
2,000 Century Aluminum Co.+ 29,500
800 Kaiser Aluminum Corp.+ 10,700
600 Reynolds Metals Co. 32,250
----------
72,450
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COPPER: 2.0%
800 Freeport McMoran Copper
& Gold 'A' 25,300
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GOLD MINING: 3.2%
5,300 Alta Gold Co.+ 19,875
700 Firstmiss Gold Inc.+ 21,525
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41,400
----------
HOTELS/MOTELS: 2.2%
250 HFS, Inc.+ 12,844
1,000 Red Roof Inn Inc.+ 15,000
----------
27,844
----------
NATURAL GAS -
DIVERSIFIED: 2.2%
700 Enron Corp. 28,175
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OIL & GAS EXPLORATION: 20.2%
300 Anadarko Petroleum Corp. 17,475
400 Belden & Blake Corp.+ 8,100
1,500 Cairn Energy USA Inc.+ 18,563
900 Devon Energy Corp. 22,950
1,000 Flores & Rucks Inc.+ 20,875
1,100 Forest Oil Corp.+ 13,269
850 Louisiana Land & Exploration Co. 46,005
600 Nuevo Energy Co.+ 16,950
750 Triton Energy Ltd.+ 41,250
200 Union Pacific Resources Group Inc. 5,500
800 United Meridian Corp.+ 24,800
600 Vastar Resources Inc. 21,825
----------
257,562
----------
OIL INTEGRATED: 0.7%
400 USX-Marathon Group Inc. 8,800
----------
OIL/GAS: 1.4%
500 Noble Affiliates, Inc. 17,563
----------
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
<PAGE>
WORLDWIDE HARD ASSETS FUND
INVESTMENT PORTFOLIO (CONTINUED)
COUNTRY/INDUSTRY NO. OF SHARES COMMON STOCK VALUE(NOTE 1)
- --------------------------------------------------------------------------------
OIL/GAS EQUIPMENT &
SERVICES: 19.1%
400 Baker Hughes Inc. $ 12,700
400 Camco International Inc. 14,250
2,400 Dawson Production
Services, Inc.+ 34,200
400 Diamond Offshore Drilling Inc.+ 19,900
1,000 Ensco International Inc.+ 30,000
900 Global Industries Ltd.+ 23,175
1,400 Marine Drilling Co Inc.+ 13,825
1,400 Pride Petroleum Services, Inc.+ 22,925
800 Reading & Bates Corp.+ 19,600
250 Sonat Offshore Drilling Inc. 13,718
600 Tidewater, Inc. 25,500
400 Weatherford Enterra Inc.+ 14,100
----------
243,893
----------
PAPER & FOREST PRODUCTS: 5.0%
500 Buckeye Cellulose Corp.+ 11,187
500 Consolidated Papers Inc. 27,375
700 Rayonier Inc. 25,113
----------
63,675
----------
REAL ESTATE INVESTMENT
TRUST: 6.4%
1,000 Avalon Properties Inc. 21,000
1,000 First Industrial Realty
Trust, Inc. 23,874
1,200 Security Capital Industrial
Trust 20,700
500 Storage USA Inc. 16,562
----------
82,136
----------
STEEL & IRON: 0.8%
1,600 Northwestern Steel And
Wire Co.+ 10,800
----------
879,598
----------
TOTAL COMMON STOCKS: 100% (COST $1,136,718) $1,277,601
==========
+ Non-income producing security.
Glossary:
ADR - American Depository Receipt
GDR - Global Depository Receipt
SUMMARY OF INVESTMENTS BY INDUSTRY
----------------------------------
Aluminum 5.7%
Copper 2.0%
Gold Mining 10.9%
Hotels/Motels 2.2%
Metals - Miscellaneous 1.2%
Mining - Diversified 2.7%
Mining 5.7%
Miscellaneous 0.9%
Natural Gas - Diversified 2.2%
Oil & Gas Exploration 20.2%
Oil Integrated - International 1.7%
Oil Integrated 0.7%
Oil/Gas Equipment & Services 23.7%
Oil/Gas 1.4%
Paper & Forest Products 8.5%
Printing 2.4%
Real Estate Investment Trust 6.4%
Real Estate 0.7%
Steel & Iron 0.8%
------
100.0%
======
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
<PAGE>
WORLDWIDE HARD ASSETS FUND
FINANCIAL STATEMENTS
-------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES
APRIL 30, 1996
Assets:
Investments at value (identified cost,
$1,136,718) (Note 1) $1,277,601
Cash 348,728
Receivables:
Capital shares sold 2,770
Dividends 719
Receivable from Advisor 9,215
Deferred organization expenses 4,023
----------
Total assets 1,643,056
----------
Liabilities:
Open forward currency contracts (Note 5) 146
Payables:
Securities purchased 83,041
Accounts payable 8,708
----------
Total liabilities 91,895
----------
Net Assets (Equivalent to $12.44 per share on
124,727 shares of beneficial interest
outstanding with an unlimited number of
$.001 par value shares authorized) $1,551,161
==========
Net assets consist of:
Aggregate paid in capital $l,324,645
Unrealized appreciation of investments,
forward currency contracts and foreign currency 140,775
Undistributed net investment income 8,625
Cumulative realized gains 77,116
----------
$1,551,161
==========
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
<PAGE>
WORLDWIDE HARD ASSETS FUND
FINANCIAL STATEMENTS
-------------------------------------------------------------------------------
STATEMENT OF OPERATIONS
FOR THE PERIOD FROM AUGUST 21, 1995 (COMMENCEMENT OF OPERATIONS)
TO APRIL 30, 1996
INCOME:
Dividends (less foreign taxes withheld of $ 158) $ 8,039
EXPENSES:
Management (Note 2) $ 5,527
Professional 8,125
Custodian 5,304
Registration 430
Amortization of organizational expenses (Note 1) 645
Other 15
--------
Total expenses 20,046
Expenses assumed by the Advisor and
reduced by a custodian fee arrangement (Note 2) (20,046)
--------
Net expenses 0
--------
Net investment income 8,039
REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS (NOTE 3)
Realized gain from security transactions
(excluding short-term securities):
Proceeds from sales 804,770
Cost of securities sold 727,099
--------
Realized gain 77,671
Realized gain from foreign currency transactions 31
Change in unrealized appreciation of foreign currency
receivables and payables 38
Change in unrealized depreciation of forward currency
contracts (146)
Unrealized appreciation of investments:
Beginning of period 0
End of period 140,883
--------
Change in unrealized appreciation 140,883
--------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $226,516
========
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
<PAGE>
WORLDWIDE HARD ASSETS FUND
FINANCIAL STATEMENTS
-------------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS
FOR THE PERIOD AUGUST 21, 1995 (COMMENCEMENT OF OPERATIONS)
TO APRIL 30, 1996
INCREASE IN NET ASSETS:
OPERATIONS:
Net investment income $ 8,039
Realized gain from security transactions 77,671
Realized gain from foreign
currency transactions 31
Change in unrealized depreciation of
foreign currency receivables and payables and forward
currency contracts (108)
Change in unrealized appreciation
of investments 140,883
----------
Increase in net assets
resulting from operations 226,516
---------
Capital share transactions*:
Net proceeds from sales of shares 1,331,768
Cost of shares reacquired (7,123)
----------
Increase in net assets resulting
from capital share transactions 1,324,645
----------
Total increase in net assets 1,551,161
NET ASSETS:
Beginning of period --
----------
End of period (including undistributed net investment
income of $8,625) $1,551,161
==========
*SHARES OF BENEFICIAL INTEREST
ISSUED AND REDEEMED:
Shares sold l25,343
Shares reacquired (616)
----------
Net increase 124,727
==========
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
<PAGE>
WORLDWIDE HARD ASSETS FUND
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD
FOR THE PERIOD
AUGUST 21, 1995(A)
TO
APRIL 30.1996
-------------
Net Asset Value Beginning of Period $10.00
Income From Investment Operations:
Net Investment Income (b) 0.11
Net Gains on Securities
(both realized and unrealized) 2.33
---------
Total From Investment Operations 2.44
---------
Net Asset Value, End of Period $12.44
=========
Total Return (c) 24.40%
- --------------------------------------------------------------------------------
RATIOS/SUPPLEMENTARY DATA
Net Assets, End of Period (000) $ 1,551
Ratio of Expenses to Average Net Assets (d) 0.00%
Ratio of Net Income to Average Net Assets (e) 1.45%
Portfolio Turnover Rate 119.54%
Average Commission Rate Paid $0.0385
- --------------------------------------------------------------------------------
(a) Commencement of operations.
(b) Based on average shares outstanding.
(c) Total return is calculated assuming an initial investment made at the net
asset value at the beginning of the period and a redemption on the last day of
the period. Total return for the period ended April 30, 1996 was not annualized.
(d) Had the Advisor not reimbursed expenses and had there been no custodian fee
arrangement, the expenses ratio for the period August 25, l 995(commencement of
operations) to April 30, 1996 would have been 2.51%.
(e) Annualized.
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
<PAGE>
WORLDWIDE HARD ASSETS 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 Hard Assets Fund series, a diversified
fund (the "Fund"), of the Trust in the preparation of its financial statements.
The policies are in conformity with generally accepted accounting principles.
The preparation of financial statements in conformity with generally accepted
accounting principles requires the use of management's estimates and the actual
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 period. Over-the-counter
securities not included in the NASDAQ National Market System and listed
securities for which no sale was reported are valued at the mean of the bid and
asked prices. Short-term obligations purchased with more than sixty days
remaining to maturity are valued at market. Short-term obligations purchased
with sixty days or less to maturity are valued at cost which with accrued
interest approximates value. Forward currency contracts are valued at the spot
currency rate plus an amount ("points") which reflects the differences in
interest rates between the U.S. and the foreign markets. Securities for which
quotations are not available are stated at fair value as determined by the Board
of Trustees.
B. Federal income taxes-It is the Fund's policy to comply with the provisions of
the Internal Revenue Code applicable to regulated investment companies and to
distribute all of its taxable income to its shareholders. Therefore, no federal
income tax provision is required.
C. Currency Translation-Assets and liabilities denominated in foreign currencies
and commitments under forward currency contracts are translated into U.S.
Dollars at the mean of the quoted bid and asked prices of such currencies on the
last business day of the period. Purchases and sales of investments are
translated at the exchange rates prevailing when such investments were acquired
or sold. Income and expenses are translated at the exchange rates prevailing
when accrued. The portion of realized and unrealized gains and losses on
investments that result from fluctuations in foreign currency exchange rates is
not separately disclosed. Recognized gains or losses attributable to foreign
currency fluctuations on foreign currency denominated assets and liabilities are
recorded as net realized gains and losses from foreign currency transactions.
<PAGE>
WORLDWIDE HARD ASSETS FUND
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
- ------------------------------------------------------------------------------
D. Dividends and Distributions-Dividend income and distributions to shareholders
are recorded on the ex-dividend date. Income distributions and capital gain
distributions are determined in accordance with income tax regulations which may
differ from generally accepted accounting principles. These differences are
primarily due to differing treatments for passive foreign investment companies
and return of capital dividends. The effect of these differences for the year
ended April 30, 1996 increased undistributed net investment income by $586, and
decreased undistributed realized gains by $586.
E. Other-Security transactions are accounted for on the date the securities are
purchased or sold. Interest income is accrued as earned. Deferred organization
costs will be amortized over a period not exceeding five years.
NOTE 2-Van Eck Associates Corporation earns fees for investment management and
advisory services. The fee is based on an annual rate of 1% of the average daily
net assets, which includes the fee paid to the Advisor for accounting and
administrative services. For the period ended April 30, 1996, Van Eck Associates
Corporation agreed to waive its management fees and assume all expenses of the
Fund. Certain of the officers and trustees of the Trust are officers, directors
or stockholders of Van Eck Associates Corporation and Van Eck Securities
Corporation. As of April 30, 1996, Van Eck Associates Corporation owned 40.09%
of the outstanding shares of the Fund.
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 $5,304 under this
arrangement.
NOTE 3-Purchases of securities other than short-term obligations aggregated
$1,863,817 for the period ended April 30, 1996. For federal income tax purposes
the identified cost of investments owned at April 30, 1996 was $1,137,273. As of
April 30, 1996 net unrealized appreciation for federal income tax purposes
aggregated $140,328 of which $145,845 related to appreciated securities and
$5,517 related to depreciated securities.
NOTE 4- The Fund invests in foreign securities. Investments in foreign
securities may involve a greater degree of risk than investments in domestic
securities due to political, economic or social instability. In addition, some
foreign companies are not generally subject to the same uniform accounting,
auditing and financial rules as are American companies, and there may be less
government supervision and regulation. Foreign investments may also be subject
to foreign taxes, dividend collection fees and settlement delays.
<PAGE>
WORLDWIDE HARD ASSETS FUND
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
- ------------------------------------------------------------------------------
The Fund may concentrate its investments in companies which are significantly
engaged in the exploration, development, production or distribution of precious
metals, ferrous and non-ferrous metals, gas, petroleum, petrochemicals or other
hydrocarbons, forest products, real estate, and other basic non-agricultural
commodities . Since the Fund may so concentrate, it may be subject to greater
risks and market fluctuations than other more diversified portfolios. The
production and marketing of gold and other natural resources may be affected by
actions and changes in governments. In addition, gold and natural resources may
be cyclical in nature.
NOTE 5-Forward Currency Contracts - The Fund may buy and sell forward currency
contracts to settle purchases and sales of foreign denominated securities. In
addition, the Fund may enter into forward currency contracts to hedge foreign
denominated assets. Realized gains and losses from forward currency contracts
are included in realized gain from foreign currency transactions. At April 30,
1996, the Fund had the following outstanding forward currency contracts:
<TABLE>
<CAPTION>
VALUE AT
SETTLEMENT CURRENT UNREALIZED
DATE VALUE DEPRECIATION
---------- ------- ------------
<S> <C> <C> <C>
CONTRACTS
Foreign Currency Purchase Contracts:
AUD 31,579 expiring
5/03/96 and 5/06/96 $24,878 $24,842 $ (36)
Foreign Currency Sales Contract:
AUD 100,000 expiring
6/19/96 $78,330 $78,440 (110)
-----
$(146)
=====
</TABLE>
The Fund may incur additional risk from investments in forward currency
contracts if the counterparty is unable to fulfill its obligation or there are
unanticipated movements of the foreign currency relative to the U.S. dollar.
NOTE 6-An income dividend of $.0695 a share was paid on May 31, 1996 to
shareholders of record on May 29, 1996, with a 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 Hard Assets 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, the statement of changes in net
assets and the financial highlights for the period from August 21, 1995
(commencement of operations) to April 30, 1996. 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 audit.
We conducted our audit in accordance with generally accepted auditing
statndards. 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 custodian and brokers. An audit also includes
assessing the accounting priniciples used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audit provides 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 Hard Assets Fund series of the Van Eck Worldwide Insurance Trust as of
April 30, 1996, the results of its operations, the changes in its net assets and
the financial highlights for the period from August 21, 1995 (commencement of
operations) to April 30, 1996, in conformity with generally accepted accounting
principles.
/s/ Coopers & Lybrand L.L.P.
----------------------------
COOPERS & LYBRAND L.L.P.
New York, New York
June 18, 1996
Coopers & Lybrand L.L.P. is a member of Coopers & Lybrand International, a
limited liability association incorporated in Switzerland.
