WORLDWIDE
INSURANCE TRUST
APRIL 30, 1996
VAN ECK
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WORLDWIDE
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BOND
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FUND
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ANNUAL
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REPORT
[LOGO]
VAN ECK GLOBAL
THE UNUSUAL FUNDS(SM)
<PAGE>
VAN ECK WORLDWIDE BOND FUND
---------------------------------------------------------
4-30-96 ANNUAL REPORT/MANAGEMENT DISCUSSION & ANALYSIS
Dear Fellow Shareholder:
Over the last twelve months, world bonds experienced both tremendous gains in
1995 and, year-to-date in 1996, some losses. From the start of the Worldwide
Bond Fund's fiscal year on May 1, 1995 through the end of December, most bond
markets experienced dramatic rallies as growth slowed, inflation appeared either
non-existent or under control, sending interest rates lower and bonds higher in
price. At the same time, the U.S. dollar, which had reached post-World War II
lows against both the German mark and the Japanese yen, rebounded strongly from
the end of April to year-end, and that strength was maintained in the first part
of `96. The Worldwide Bond Fund had a total return of 2.1% for the year ended
April 30, 1996.
CURRENCY REVIEW
World currencies, which are a key component of global bond returns, had a
dramatic 1995. The U.S. dollar witnessed a historic decline in the beginning of
the year, beleaguered by uncertainty over U.S. fiscal policy, rising deficits
and the U.S.'s $20 billion support package for the Mexican peso. At the end of
April 1995, after the dollar had hit its low against the mark and the yen, we
began to add to the dollar position, increasing that weighting from a low of
under 30% of portfolio assets to over 60% by June, while decreasing the Fund's
foreign currency exposure. This strategy was helpful as the dollar did regain
strength rapidly. We then sold dollars into the rally in August, believing that
dollar strength would not be maintained long-term--however, the dollar continued
to gain momentum, and our reduction of the position dampened fund returns in the
latter part of 1995.
In the beginning of 1996, we again increased the dollar position somewhat. We
decreased both the mark and yen positions in favor of the peripheral currencies,
such as Spain and Italy, as these countries took active steps toward meeting the
required criteria for inclusion in the European Monetary Union. These currencies
have indeed shown strength in recent months as the mark has weakened, helping
Fund performance. The addition of the Canadian dollar position has also been
positive as Canada remains on track to eliminate its deficit by the year 2000.
BOND REVIEW
Bond markets performed exceptionally well in 1995 as interest rate trends
reversed -- key interest rates worldwide, from the U.S. federal funds target
rate to the German Lombard and discount rates, declined as economic growth came
in under expectations. Further boosting bonds (U.S. bonds in particular) and
helping spur confidence in all the global financial markets, the Bank of Japan
had begun aggressively purchasing Treasury bonds with the proceeds from the
Bank's intervention to support the dollar and stem the yen's rise in the first
quarter. Although our relatively cautious positioning and short durations
dampened performance, the Worldwide Bond Fund ended 1995 with strong gains.
To date, 1996 has been a less profitable year for bond investors. Economic
growth appeared to be rounding the corner in most countries and investors
anticipated an end to interest rate cuts. Thus, most bond markets fell while
yields increased. In the first quarter, anticipating that after the spectacular
bond rallies of 1995 there might be heavy selling activity, we lowered the
average duration of the portfolio. We also maintained an overweight position in
European bonds over U.S. bonds, which have witnessed better relative
performance. The addition of peripheral European bond positions has benefited
performance as well. These bond markets, like the currencies, have performed
well this year, coming into line with the rest of the European markets.
<PAGE>
THE OUTLOOK
After such a dramatic decline in the U.S. bond markets during the first months
of 1996, we expect a rally over the near term. Longer term, however, we
anticipate a rebound in economic growth and a renewal of fears of inflation in
some countries. Thus, yields will probably trend upward while bond prices
decline somewhat. Instead, opportunity in the months ahead will probably come
from the currency markets. Based on the outlook for interest rate differentials
(typically, increasing rates boost currencies and vice versa), we are prepared
to increase the emphasis on currencies such as the Japanese yen, where we expect
growth and rates to climb more dramatically than in the U.S. As always, we
remain flexible in our forecasts since these markets move quickly.
Madis Senner
Portfolio Manager
May 22, 1996
*Average annual returns on the Fund for the 1-year, 5-year and life (9/1/89)
periods ended 3/31/96 were 2.96%, 6.55% and 6.66%, 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 PRINTED PIECE]
VAN ECK WORLWIDE BOND FUND vs SALOMON BROTHERS WORLD GOVERNMENT BOND INDEX
Van Eck Worldwide Salomon Bros. World
Bond Fund Gov't Bond Index
Sep-89 $10,000 $10,000
$10,010 $10,084
$10,010 $10,175
$10,070 $10,299
Jan-90 $10,120 $10,163
$ 9,930 $10,007
$10,050 $ 9,908
$10,100 $ 9,878
May-90 $10,199 $10,206
$10,465 $10,393
$10,721 $10,718
$10,844 $10,634
Sep-90 $10,875 $10,754
$11,079 $11,234
$11,203 $11,420
$11,203 $11,533
Jan-91 $11,549 $11,821
$11,580 $11,825
$11,129 $11,395
$11,350 $11,570
May-91 $11,432 $11,556
$11,185 $11,435
$11,443 $11,680
$11,701 $11,906
Sep-91 $12,324 $12,371
$12,464 $12,501
$12,559 $12,696
$13,263 $13,357
Jan-92 $12,867 $13,119
$12,812 $13,406
$12,658 $12,908
$12,702 $13,001
May-92 $13,194 $13,399
$13,568 $13,774
$13,837 $14,095
$14,095 $14,490
Sep-92 $13,475 $14,635
$13,054 $14,237
$12,458 $14,012
$12,566 $14,095
Jan-93 $12,578 $14,341
$12,723 $14,623
$12,771 $14,847
$12,783 $15,162
May-93 $12,806 $15,314
$12,908 $15,281
$12,755 $15,324
$13,276 $15,785
Sep-93 $13,365 $15,972
$13,466 $15,945
$13,284 $15,831
$13,545 $15,966
Jan-94 $13,832 $16,094
$13,467 $15,989
$13,076 $15,966
$13,102 $15,984
May-94 $12,909 $15,844
$12,922 $16,072
$12,987 $16,201
$12,974 $16,145
Sep-94 $13,170 $16,262
$13,458 $16,522
$13,380 $16,295
$13,367 $16,340
Jan-95 $13,485 $16,683
$13,917 $17,110
$14,846 $18,127
$15,003 $18,462
May-95 $15,275 $18,982
$15,316 $19,093
$15,330 $19,138
$15,205 $18,481
Sep-95 $15,385 $18,893
$15,482 $19,034
$15,539 $19,249
$15,680 $19,451
Jan-96 $15,539 $19,210
$15,412 $19,113
$15,285 $19,086
Apr-96 $15,314 $19,010
- --------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN*
1 Year 5 Years Life
2.1% 6.2% 6.6%
- --------------------------------------------------------------------------------
Past performance is not indicative of future results.
*Performance is net of the Fund's expenses only.
<PAGE>
WORLDWIDE BOND FUND
INVESTMENT PORTFOLIO
APRIL 30, 1996
BONDS AND NOTES PRINCIPAL AMOUNT VALUE (NOTE I)
- --------------------------------------------------------------------------------
CANADA- 10.3%
Canadian Government Bonds
9.00% due 6/01/25 CAD 3,150,000 $ 2,495,336
8.75% due 12/01/05 4,200,000 3,283,308
7.50% due 3/01/01 6,800,000 5,079,834
-----------
10,858,478
-----------
DENMARK - 3.0%
Kingdom of Denmark
7.00% due 12/15/04 DKK 18,500,000 3,128,433
-----------
GERMANY-10.0%
Bundesrepublik Deutschland
7.50% due 11/11/04 DEM 9,000,000 6,345,808
7.375% due 1/03/05 6,000,000 4,194,910
-----------
10,540,718
-----------
ITALY - 6.1 %
Italian Government Bonds
10.50% due 9/01/05 ITL 6,100,000,000 4,109,299
8.50% due 4/01/99 3,700,000,000 2,353,598
-----------
6,462,897
-----------
NETHERLANDS- 10.9%
Netherlands Government Bonds
7.00% due 3/15/99 NLG 8,400,000 5,244,914
6.75% due 2/15/99 10,000,000 6,212,722
-----------
11,457,636
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SPAIN - 4.9%
Spanish Government Bonds
10.90% due 8/30/03 ESP 300,000,000 2,594,626
7.40% due 07/30/99 335,000,000 2,586,519
-----------
5,181,145
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UNITED KINGDOM - 5.5%
Great Britain Government Bonds
7.50% due 12/07/06 GBP 4,000,000 5,826,488
-----------
UNITED STATES - 24.7%
U.S. Treasury Notes
* 7.125% due 9/30/99 USD 6,700,000 6,868,545
* 6.50% due 8/15/05 2,520,000 2,482,989
* 5.75% due 10/31/00 2,400,000 2,339,251
* 5.625% due 2/15/06 1,000,000 926,250
* 5.50% due 11/15/98 11,400,000 11,225,443
* 5.25% due 1/31/01 2,250,000 2,147,344
-----------
25,989,822
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Total Bonds and Notes: 75.4% (Cost: $80,515,858) 79,445,617
-----------
See Notes to Financial Statements
<PAGE>
WORLDWIDE BOND FUND
INVESTMENT PORTFOLIO (CONTINUED)
SHORT-TERM OBLIGATIONS PRINCIPAL AMOUNT VALUE (NOTE I)
- --------------------------------------------------------------------------------
UNITED STATES - 24.6%
G.E. COMPANY COMMERCIAL PAPER
Interest Yield 5.29% due 5/01/96 USD 2,569,000 $ 2,569,000
------------
U.S. TREASURY BILLS
Interest Yield 5.06% due 5/02/96 7,400,000 7,398,978
Interest Yield 4.92% due 5/09/96 16,000,000 15,982,827
------------
23,381,805
------------
Total Short-Term Obligations: (Cost: $25,950,805) 25,950,805
------------
Total Investments: 100% (Cost $106,466,663) $105,396,422
============
* These securities are segregated for forward currency contracts
See Notes to Financial Statements.
<PAGE>
WORLDWIDE BOND FUND
FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES
APRIL 30, 1996
Assets:
Investments at value (identified cost,
$106,466,663) (Note 1) $105,396,422
Cash 229,381
Receivables:
Interest 1,736,930
Capital shares sold 24,938
Open forward currency contracts (Note 4) 896,897
-------------
Total assets 108,284,568
-------------
Liabilities:
Payables:
Capital stock redeemed 175,022
Open forward currency contracts (Note 4) 499,841
Accounts payable 69,031
-------------
Total liabilities 743,894
-------------
Net Assets (Equivalent to $10.88 per share on
9,884,604 shares of beneficial interest
outstanding with an unlimited number of
$.001 par value shares authorized) $107,540,674
=============
Net assets consist of:
Aggregate paid in capital $109,519,655
Unrealized depreciation of investments,
forward contracts and foreign currency (706,125)
Undistributed net investment income 2,970,039
Accumulated realized losses (4,242,895)
-------------
$107,540,674
=============
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
<PAGE>
WORLDWIDE BOND FUND
STATEMENT OF OPERATIONS
- --------------------------------------------------------------------------------
For the Year Ended April 30, 1996
<TABLE>
<CAPTION>
<S> <C> <C>
Interest Income (Less foreign taxes withheld of $30,152) (Note 1) $6,952,798
Expenses:
Management (Note 2) $ 985,741
Administrative (Note 2) 32,032
Professional 45,260
Custodian 56,015
Printing 24,467
Trustees fees and expenses 16,989
Other 46,366
------------
Expenses reduced by expenses assumed by 1,206,870
a custodian fee arrangement (Note 2) (24,388)
------------
Net expenses 1,182,482
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Net investment income 5,770,316
Realized and Unrealized Gain (Loss)
on Investments (Note 3):
Realized gain from futures contracts and options 3,705
Realized gain from security transactions (excluding short-term
securities):
Proceeds from sales 159,544,836
Cost of securities sold 158,233,479
------------
Realized gain 1,311,357
Realized gain from foreign currency transactions 1,451,829
Unrealized appreciation (depreciation) of investments:
Beginning of year 1,041,750
End of year (1,070,241)
------------
Change in unrealized appreciation (depreciation) of investments (2,111,991)
Unrealized depreciation of foreign currency
receivables and payables:
Beginning of year (92,323)
End of year (32,940)
------------
Change in unrealized depreciation
of foreign currency receivables and payables 59,383
Unrealized appreciation of forward currency contracts:
Beginning of year 4,377,878
End of year 397,056
------------
Change in unrealized appreciation
of forward currency contracts (3,980,822)
Unrealized depreciation of futures contracts:
Beginning of year (4,120)
End of year 0
------------
Change in unrealized depreciation of futures contracts 4,120
-----------
Net Increase in Net Assets Resulting from Operations $2,507,897
===========
</TABLE>
- -------------------------------------------------------------------------------
See Notes to Financial Statements.
<PAGE>
WORLDWIDE BOND FUND
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------------------------
FOR THE YEAR ENDED APRIL 30, 1996 AND 1995
<S> <C> <C>
1996 1995
---- ----
Increase (Decrease) in Net Assets:
Operations:
Net investment income $ 5,770,316 $5,334,326
Realized gain from futures
contracts and options 3,705 100,699
Realized gain (loss) from security
transactions 1,311,357 (1,882,784)
Realized gain (loss) from foreign
currency transactions 1,451,829 (846,176)
Change in unrealized appreciation (depreciation)
of investments (2,111,991) 4,765,944
Change in unrealized appreciation (depreciation) of
foreign currency receivables and payables 59,383 (103,343)
Change in unrealized appreciation (depreciation)
of forward currency contracts (3,980,822) 4,609,754
Change in unrealized depreciation
of futures contracts 4,120 (370)
------------ ------------
Increase in net assets
resulting from operations 2,507,897 11,978,050
------------ ------------
Dividends to shareholders from:
Net investment income (8,098,367) (342,078)
------------ ------------
Capital share transactions*:
Net proceeds from sales of shares 56,024,013 45,886,052
Reinvestment of dividends 8,098,367 342,078
------------ ------------
64,122,380 46,228,130
Cost of shares reacquired (64,457,152) (25,306,443)
------------ ------------
Increase (decrease) in net assets resulting
from capital share transactions (334,772) 20,921,687
------------ ------------
Total increase (decrease) in net assets (5,925,242) 32,557,659
Net Assets:
Beginning of year 113,465,916 80,908,257
------------ ------------
End of year (including undistributed net investment income
of $2,970,039 and $1,667,825, respectively) $107,540,674 $113,465,916
============ ============
*Shares of Beneficial Interest
Issued and Redeemed:
Shares sold 5,046,092 4,223,715
Reinvestment of dividends 731,260 34,484
------------ ------------
5,777,352 4,258,199
Shares reacquired (5,794,591) (2,409,229)
------------ ------------
Net increase (decrease) (17,239) 1,848,970
============ ============
</TABLE>
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
<PAGE>
WORLDWIDE BOND FUND
FINANCIAL HIGHLIGHTS
For a share outstanding throughout each year
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
YEAR ENDED APRIL 30,
-------------------------------------------------------------------------
1996 1995 1994 1993 1992
---- ---- ---- ---- ----
Net Asset Value, Beginning of Year $11.46 $10.05 $10.62 $11.57 $10.82
------ ------ ------ ------ ------
Income From Investment Operations:
Net Investment Income 0.58 0.68* 0.63 0.81 0.62
Net Gains (Losses) on Securities
(both realized and unrealized) (0.34) 0.77 (0.37) (0.75) 0.67
------ ------ ------ ------ ------
Total From Investment Operations 0.24 1.45 0.26 0.06 1.29
------ ------ ------ ------ ------
Less Distributions:
Dividends from net investment income (0.82) (0.04) (0.72) (0.83) (0.53)
Distributions from capital gains -- -- (0.11) (0.18) (0.01)
------ ------ ------ ------ ------
Total Distributions (0.82) (0.04) (0.83) (1.01) (0.54)
------ ------ ------ ------ ------
Net Asset Value, End of Year $10.88 $11.46 $10.05 $10.62 $11.57
====== ====== ====== ====== ======
Total Return (a) 2.07% 14.51% 2.49% 0.38% 12.21%
- --------------------------------------------------------------------------------------------------------------------------------
Ratios/Supplementary Data
Net Assets, End of Period (000) $107,541 $113,466 $80,908 $66,035 $40,930
Ratio of Expenses to Average Net Assets 1.08%(b) 0.98%(b) 0.93% 1.01% 1.05%
Ratio of Net Income to Average Net Assets 5.26% 6.24% 6.47% 8.47% 8.55%
Portfolio Turnover Rate 208.05% 265.87% 37.59% 248.21% 231.34%
</TABLE>
- -----------------------------------------
(a) Total return is calculated assuming an initial investment made at the
net asset value at the beginning of the year, reinvestment of dividends and
distribution of capital gains at net asset value during the year and a
redemption on the last day of the year.
(b) Ratio would have been 1.10% and 0.99% respectively, had there not been
directed brokerage and custodian fee arrangements.
* Based on average shares outstanding.
See Notes to Financial Statements.
<PAGE>
WORLDWIDE BOND 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 Bond Fund, a non-diversified series, (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 principals 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. Futures are valued using the closing price reported
at the close of the Chicago Board of Trade. 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 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. 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 BOND 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 foreign currency transactions. The
effect of these differences for the year ended April 30, 1996 increased
accumulated realized losses by $3,630,265 and increased undistributed net
investment income by $3,630,265.
E. Other-Security transactions are accounted for on the date the securities are
purchased or sold. Interest income is accrued as earned.
NOTE 2-Van Eck Associates Corporation earned fees of $985,741 for the year ended
April 30, 1996 for investment management and advisory services. The fee 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% on the excess over $750
million; this includes the fee paid to the Advisor for accounting and
administration services. For the period May 1, 1995 to September 28, 1995 the
fee was based on an annual rate of .75 of 1% of the first $500 million of
average daily net assets, .65 of 1% on the next $250 million and .50 of 1% in
excess of $750 million. In accordance with the advisory agreement, the Fund
reimbursed Van Eck Associates Corporation $32,032 for costs incurred in
connection with certain administrative and accounting functions. 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 directs certain portfolio trades to a broker that, in turn, pays a
portion of the Fund's operating expenses. The Fund also has a fee arrangement,
based on cash balances left on deposit with the custodian, which also reduces
the Fund's operating expenses. For the year ended April 30, 1996, the Fund's
expenses were reduced by $24,388 under these arrangements.
NOTE 3-Purchases of securities other than short-term obligations aggregated
$171,820,513 for the year ended April 30, 1996. For federal income tax purposes
the identified cost of investments owned at April 30, 1996 was $106,466,663. As
of April 30, 1996 net unrealized depreciation for federal income tax purposes
aggregated $1,070,241 of which $800,977 related to appreciated securities and
$1,871,218 related to depreciated securities. At April 30, 1996, the Fund had a
capital loss carry forward available to offset future capital gains expiring
April 30, 2003 in amount of $1,233,873.
<PAGE>
WORLDWIDE BOND FUND
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
- --------------------------------------------------------------------------------
NOTE 4-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:
FOREIGN CURRENCY BUY CONTRACTS:
<TABLE>
<CAPTION>
<S> <C> <C> <C>
UNREALIZED
VALUE AT APPRECIATION
CONTRACTS SETTLEMENT DATE CURRENT VALUE (DEPRECIATION)
- --------- --------------- ------------- --------------
CAD 1,500,000
expiring 6/19/96 $1,099,021 $1,102,707 $3,686
CHF 6,702,438
expiring 6/19/96 5,680,032 5,412,612 (267,420)
DEM 4,533,692
expiring 6/19/96 3,048,679 2,967,250 (81,429)
IEP 754,196
expiring 6/19/96 1,180,686 1,176,885 (3,801)
JPY 3,539,355,364
expiring 6/19/96 33,761,139 33,927,816 166,677
NLG 325,000
expiring 6/19/96 193,624 190,385 (3,239)
---------
(185,526)
---------
FOREIGN CURRENCY SALE CONTRACTS:
CAD 2,271,500
expiring 6/19/96 1,674,568 1,669,867 4,701
CHF 6,702,438
expiring 6/19/96 5,553,752 5,412,612 141,140
DEM 9,863,828
expiring 6/19/96 6,585,558 6,455,765 129,793
IEP 754,196
expiring 6/19/96 1,185,513 1,176,885 8,628
ITL 2,611,229,250
expiring 6/19/96 1,667,665 1,663,504 4,161
JPY 1,256,427,050
expiring 6/19/96 11,900,000 12,043,952 (143,952)
NLG 19,835,525
expiring 6/19/96 12,058,070 11,619,959 438,111
---------
582,582
---------
$397,056
=========
</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.
<PAGE>
WORLDWIDE BOND FUND
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
- --------------------------------------------------------------------------------
NOTE 5-Option Contracts -The Fund may invest, for hedging and other purposes, in
call and put options on securities, currencies and commodities. Call and put
options give the Fund the right but not the obligation to buy (calls) or sell
(puts) the instrument underlying the option at a specified price. The premium
paid on the option, should it be exercised, will, on a call, increase the cost
of the instrument acquired and, on a put, reduce the proceeds received from the
sale of the instrument underlying the option. If the options are not exercised,
the premium paid will be recorded as a capital loss upon expiration. The Fund
may incur additional risk to the extent the value of the underlying instrument
does not correlate with the movement of the option value.
The Fund may also write call or put options. As the writer of an option, the
Fund receives a premium. The Fund keeps the premium whether or not the option is
exercised. The premium will be recorded, upon expiration of the option, as a
short-term capital gain. If the option is exercised, the Fund must sell, in the
case of a written call, or buy, in the case of a written put, the underlying
instrument at the exercise price. The Fund may write only covered puts and
calls. A covered call option is an option in which the Fund owns the instrument
underlying the call. A covered call sold by the Fund exposes it during the term
of the option to possible loss of opportunity to realize appreciation in the
market price of the underlying instrument or to possible continued holding of an
underlying instrument which might otherwise have been sold to protect against a
decline in the market price of the underlying instrument. A covered put exposes
the Fund during the term of the option to a decline in price of the underlying
instrument. A put option sold by the Fund is covered when, among other things,
cash or short-term liquid securities are placed in a segregated account to
fulfill the obligations undertaken. The Fund may incur additional risk from
investments in written currency options if there are unanticipated movements in
the underlying currencies. Transactions in call and put options written for the
year ended April 30, 1996 were as follows:
NUMBER OF
CONTRACTS PREMIUMS
--------- --------
Options Outstanding
at Beginning of Year 0 $0
Options Written 55 100,745
Options Expired 55 (100,745)
-- ---------
Options Outstanding
at End of Year 0 $0
== ==
<PAGE>
WORLDWIDE BOND FUND
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
- --------------------------------------------------------------------------------
NOTE 6-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. Foreign investments may also be
subject to foreign taxes and settlement delays. Since the Fund may have
significant investments in foreign debt securities it may be subject to greater
credit and interest risks and greater currency fluctuations than portfolios with
significant investments in domestic debt securities.
NOTE 7-An income dividend of $0.31 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 Bond 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 period then ended, the
statements of changes in net assets for each of the two years in the period then
ended, and the financial highlights for each of the five years in the period
then ended. 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 and brokers. 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 Bond 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 for each of the two years in the period then ended, and the
financial highlights for each of the five years in the period then ended, in
conformity with generally accepted accounting principles.
/s/ Coopers & Lybrand L.L.P.
COOPERS & LYBRAND L.L.P.
New York, New York
June 19, 1996
Coopers & Lybrand L.L.P. is a member of Coopers & Lybrand International, a
limited liability association incorporated in Switzerland.
