VAN ECK WORLDWIDE INSURANCE TRUST, 497, 1996-01-17

VAN ECK WORLDWIDE INSURANCE TRUST
497, 1996-01-17

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<PAGE>

PROSPECTUS

September 1,1995
as Revised on January 17, 1996

VAN ECK GOLD AND NATURAL RESOURCES FUND

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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
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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, as Revised on
October 3, 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.

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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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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....................... 14

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 September 29, 1995 the effective rate of the Adviser's
management fee is 1.0%. Prior to September 29, 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>

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 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.

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 the Fund.

<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.

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.

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
12

<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 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,
1995 total aggregate assets under the management of Van Eck Associates
Corporation were approximately $1.6 billion.

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.

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.

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

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.

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 Emerging
Markets Fund, Worldwide Hard Assets Fund and Worldwide Balanced Fund.

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>

PROSPECTUS September 1, 1995
as Revised on January 17, 1996

VAN ECK WORLDWIDE BOND FUND

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

Van Eck Worldwide Bond 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 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").

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

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

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, as Revised on
October 3, 1995, which further discusses the Trust and 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.
- -------------------------------------------------------------------------------
<PAGE>

TABLE OF CONTENTS PAGE
- --------------------------------------------------------------------------------

<TABLE>
<S> <C>
The Trust................................................................... 3
Financial Highlights........................................................ 3
Investment Objectives and Policies of the Fund.............................. 4
Risk Factors................................................................ 5
Limiting Investment Risks................................................... 12
Management.................................................................. 12
How to Buy Shares........................................................... 13
Dividends and Distributions................................................. 14
How to Redeem Shares........................................................ 14
Federal Taxation............................................................ 14
Description of the Trust.................................................... 14
Additional Information...................................................... 16
</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. Worldwide Bond Fund is
classified as a non-diversified fund under the Investment Company Act of 1940
(the "Act"). (See "Description of the Trust").

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 Reports. The Annual Report also contains
additional performance information that will be made available on request and
without charge.

WORLDWIDE BOND FUND
-------------------------------------------------------
YEAR ENDED APRIL 30,
-------------------------------------------------------
1995 1994 1993 1992 1991 1990+
-------- ------- ------- ------- ------- ------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of
Period........... $ 10.05 $ 10.62 $ 11.57 $ 10.82 $ 10.10 $10.00
-------- ------- ------- ------- ------- ------
INCOME FROM
INVESTMENT
OPERATIONS:
Net Investment
Income.......... 0.68 0.63 0.81 0.62 1.03 0.26
Net Gains or
Losses on
Securities (both
realized and
unrealized)..... 0.77 (0.37) (0.75) 0.67 0.19 (0.16)
-------- ------- ------- ------- ------- ------
Total From
Investment
Operations....... 1.45 0.26 0.06 1.29 1.22 0.10
-------- ------- ------- ------- ------- ------
LESS
DISTRIBUTIONS:
Dividends (from
net investment
income)......... (0.04) (0.72) (0.83) (0.53) (0.50) --
Distributions
(from capital
gains).......... -- (0.11) (0.18) (0.01) -- --
-------- ------- ------- ------- ------- ------
Total
Distributions.... (0.04) (0.83) (1.01) (0.54) (0.50) 0.00
-------- ------- ------- ------- ------- ------
Net Asset Value,
End of Period.... $ 11.46 $ 10.05 $ 10.62 $ 11.57 $ 10.82 $10.10
======== ======= ======= ======= ======= ======
- -----------------------------------------------------------------------------
Total Return(a).. 14.51% 2.49% 0.38% 12.21% 12.37% 1.00%
- -----------------------------------------------------------------------------
Ratios/Supplementary
Data:
Net Assets, End
of Period (000's
omitted)......... $113,466 $80,908 $66,035 $40,930 $15,046 $2,237
Ratio of Expenses
to Average Net
Assets(b)........ 0.98%(c) 0.93% 1.01% 1.05% 0.50% --
Ratio of Net
Income to Average
Net Assets....... 6.24% 6.47% 8.47% 8.55% 9.75% 9.22%*
Portfolio
Turnover Rate.... 265.87% 37.59% 248.21% 231.34% 341.01% 12.23%*
</TABLE>

- ----

(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 1.14% and 2.80%, respectively
for Worldwide Bond Fund. As of September 29, 1995 the effective rate of the
Adviser's management fee is 1.0%. Prior to September 29, 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.

* 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 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 Objectives and Policies" in the
Statement of Additional Information.

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
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.

4
<PAGE>

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 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 in Investing in 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.

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, EDRs,
ADSs 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.

EMERGING MARKETS SECURITIES

5
<PAGE>

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.

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.

6
<PAGE>

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 "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.

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 they have 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. 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.

7
<PAGE>

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. 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.

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 for its portfolio it may use call
options or futures contracts as a means of fixing the price of the security 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.

8
<PAGE>

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, 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 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 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 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 (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, 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 had entered

9
<PAGE>

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. 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

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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.

ASSET-BACKED SECURITIES

The 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 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 Fund 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 Fund will be subject to certain limitations under the Act.

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.

BORROWING

The Fund may borrow up to 30% of the value of its net assets to increase
their 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.

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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 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,
except that Worldwide Bond Fund will not invest more than 25% of the value
of its total assets in securities of any one industry.

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

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 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.

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 Bond 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 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 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 sell 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 its 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

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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.
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 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
or its affiliates. The Adviser will, pursuant to the investment advisory
agreement to be approved by shareholders, 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.

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

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 values 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.

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<PAGE>

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.

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

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

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The Gold and Natural Resources Fund and Worldwide Emerging Markets Fund are
classified as diversified funds and Worldwide Bond 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 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 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 Fund's Adviser believes that, in
view of the above, the risk of personal liability to shareholders is
remote.

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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.

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 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. Worldwide Bond Fund is rated in the
"World Income 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 may be compared. 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.