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WORLDWIDE
INSURANCE TRUST
OCTOBER 31, 1995
VAN ECK
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WORLDWIDE
-----------------------
HARD
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ASSETS
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FUND
-----------------------
SEMI-ANNUAL
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REPORT
[LOGO]
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<PAGE>
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Van Eck Worldwide Hard Assets Fund
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October 31, 1995 Semi-Annual Report
Dear Fellow Shareholder:
PERFORMANCE
The Van Eck Worldwide Hard Assets Fund declined 3.2% since its inception (August
21, 1995) through October 31.* However, the Fund has recently performed well and
is up 0.1% though December 4, 1995.
REVIEW
The second and third quarters of 1995 were characterized by declining worldwide
economic growth. Economic growth expectations were consistently revised down in
the United States, Europe and Japan. However, in the emerging nations in Asia,
this growth continued to be quite dynamic with many countries experiencing
growth rates between 6-8%. This broad macroeconomic environment is positive for
hard assets, although greater economic strength will generally lead to stronger
performance.
The best performing hard asset sectors during this time included nonferrous
metals and energy companies while forest products and paper and gold-mining
equities performed poorly. Commodity performance during this period of time was
negative for base and precious metals but positive for energy commodities,
including crude oil and natural gas.
OUTLOOK
In terms of our economic outlook, we agree with the consensus view of most
economists of moderate industrialized economic growth for 1996 and slight
moderation of strong emerging market growth. Very few economists are calling for
a recession in the U.S. in 1996, although some believe it may hit in 1997. Few
major imbalances exist in world economies. (And those that do seem to be
improving.) Many indicators point to moderate growth in 1996, including leading
economic indicators, the flat yield curve and flat industrial production growth.
Interest rate sensitive sectors such as the housing market are showing strength.
In Japan, we believe the economy will slowly emerge from its recession. Growth
in Europe, however, will be more muted. In response to this weakening in growth,
many central banks are lowering interest rates to stimulate economic growth. The
Bank of Japan, the Bundesbank and the Federal Reserve Bank are and will continue
to apply monetary stimulus. We believe that this stimulus will result in
stronger economic growth during the second half of 1996. This should be
extremely positive for hard assets.
Our current allocations reflect this macroeconomic environment, industry
fundamentals and valuations. Energy and real estate are the largest allocations
in the Fund, at 20% and 16%, respectively. We are positive on both sectors and
plan to increase allocations in coming weeks. Both the base metals and precious
metals sectors have allocations of 7%. Finally, the forest products and paper
sector has a 5% allocation. The Fund has a large cash allocation of 45% which
reflects its recent inception. The cash will be invested in coming weeks.
Derek S. van Eck
Portfolio Manager
December 8, 1995
*Total return for the Fund since inception (8/21/95) for the period ended
10/31/95 was -3.2%. Performance does not take variable insurance/life fees and
expenses into account.
This report must be accompanied or preceded by a Van Eck Worldwide Insurance
Trust Prospectus which includes more complete information such as charges and
expenses and the risks associated with international investing including
currency fluctuations or controls, expropriation, nationalization and
confiscatory taxation. Please read the prospectus before investing.
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<PAGE>
WORLDWIDE HARD ASSETS FUND
INVESTMENT PORTFOLIO
OCTOBER 31, 1995 (Unaudited)
NO. OF SHARES COMMON STOCK VALUE (NOTE 1)
- --------------------------------------------------------------------------------
CANADA - 11.6%
Gold Mining - 6.5
700 Barrick Gold Corp. $16,188
1,000 Echo Bay Mines Ltd. 9,000
-------
25,188
-------
Metals - 5.1%
600 Cameco Corp. 19,437
-------
44,625
-------
INDONESIA - 0.3%
Mining - 0.3%
100 PT Tambang Timah (GDR) 1,196
-------
NETHERLANDS - 5.1%
Real Estate - 5.1%
1,000 Renaissance Hotel Group N.V. 19,500
-------
NORWAY- 4.0%
Oil/ Gas Equipment and
Services-4.0%
800 Petroleum Geo-Services AS (ADR) 15,500
-------
SWEDEN - 9.5%
Paper and
Forest
Products - 9.5%
3,000 Stora Kopparbergs "B" 36,428
-------
UNITED
KINGDOM - 4.6%
Oil Integrated International-4.6%
200 British Petroleum PLC (ADR) 17,650
-------
UNITED STATES - 64.9%
Copper - 4.8%
800 Freeport McMoran Copper and
Gold Inc. (Class A) 18,300
-------
Gold Mining - 3.9%
400 Newmont Mining Corp. 15,100
-------
Natural Gas
Diversified - 5.4%
600 Enron Corp. 20,625
-------
See Notes to Financial Statements
<PAGE>
WORLDWIDE HARD ASSETS FUND
INVESTMENT PORTFOLIO (Continued)
OCTOBER 31, 1995
(Unaudited)
NO. OF SHARES COMMON STOCK VALUE (NOTE 1)
- --------------------------------------------------------------------------------
Oil and Gas Exploration - 5.5%
200 Apache Corp. $ 5,100
250 Cairn Energy USA, Inc. 3,000
200 Union Pacific Resources Group Inc. 4,550
500 United Meridian Corp. 8,438
--------
21,088
--------
Oil Integrated International - 6.0%
300 Exxon Corp. 22,913
--------
Oil/Gas Equipment and Services - 5.6%
1,000 Ensco Interational Inc. 16,875
200 Weatherford Enterra Inc. 4,825
--------
21,700
--------
Paper and Forest Products - 11.2%
500 Bowater Inc. 22,125
400 Champion International Corp. 21,400
--------
43,525
--------
Real Estate Investment Trust - 22.5%
1,000 Avalon Properties Inc. 19,500
1,000 First Industrial Realty Trust, Inc. 20,375
1,000 Patriot American Hospitality Inc. 24,375
1,200 Security Capital Industrial Trust 19,650
150 Wellsford Residential Property Trust 2,961
--------
86,861
--------
250,112
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Total Common $385,011
========
Stock - 100% (Cost $403,510)
Glossary:
ADR- American Depository Receipt
GDS- Global Depository Shares
See Notes to Financial Statements.
<PAGE>
WORLDWIDE HARD ASSETS FUND
FINANCIAL STATEMENTS (UNAUDITED)
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STATEMENT OF ASSETS AND LIABILITIES
OCTOBER 31, 1995
Assets:
Investments at value (identified cost, $403,510) (Note 1) $385,011
Cash 178,900
Receivables:
Capital shares sold 91
Interest 180
Receivable from Advisor 2,173
Deferred organization expenses 4,561
--------
Total assets 570,916
--------
Liabilities:
Payables:
Capital stock redeemed 10,049
Accounts payable 6,734
--------
Total liabilities 16,783
--------
Net Assets (Equivalent to $9.68 per share on
57,252 shares of beneficial interest outstanding with an
unlimited number of $.001 par value shares authorized) $554,133
========
Net assets consists of:
Aggregate paid in capital $571,559
Unrealized depreciation of investments (18,499)
Undistributed net investment income 348
Cumulative realized gains 725
--------
$554,133
========
See Notes to Financial Statements.
<PAGE>
WORLDWIDE HARD ASSETS FUND
FINANCIAL STATEMENTS (UNAUDITED)
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STATEMENT OF OPERATIONS
FOR THE PERIOD FROM AUGUST 19, 1995 (COMMENCEMENT OF OPERATIONS
TO OCTOBER 31, 1995
INTEREST INCOME (NOTE 1) $320
EXPENSES:
Management (Note 2) $ 800
Professional 1,708
Amortization of organizational expenses (Note 1) 180
Other 285
-------
Total expenses 2,973
Expenses assumed by the advisor (Note 2) (2,973) 0
--------
Net investment income 320
REALIZED AND UNREALIZED GAIN/(LOSS)
ON INVESTMENTS (NOTE 3)
Realized gain from security transactions
(excluding short-term securities):
Proceeds from sales 60,440
Cost of securities sold 59,715
-------
Realized gain 725
Realized gain from foreign currency transactions 28
Unrealized depreciation of investments:
Beginning of period 0
End of period (18,499)
Change in unrealized depreciation (18,499)
--------
NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS $(17,426)
========
See Notes to Financial Statements.
<PAGE>
WORLDWIDE HARD ASSETS FUND
FINANCIAL STATEMENTS (UNAUDITED)
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STATEMENT OF CHANGES IN NET ASSETS
FOR THE PERIOD FROM AUGUST 19, 1995 (COMMENCEMENT OF OPERATIONS
TO OCTOBER 31, 1995
INCREASE IN NET ASSETS:
OPERATIONS:
Net investment income $ 320
Realized gain from security transactions 725
Realized gain from foreign currency transactions 28
Change in unrealzied depreciation of investments (18,499)
----------
Decrease in net assets resulting from operations (17,426)
----------
Capital share transactions*:
Net proceeds from sales of shares 571,559
Cost of shares reacquired --
----------
Increase in net assets resulting from capital share transactions 571,559
----------
Total increase in net assets 554,133
NET ASSETS:
Beginning of period --
----------
End of period $554,133
==========
*SHARES OF BENEFICIAL INTEREST ISSUED AND REDEEMED
Shares sold 57,252
Shares reacquired --
----------
Net increase 57,252
==========
See Notes to Financial Statements.
<PAGE>
WORLDWIDE HARD ASSETS FUND
FINANCIAL HIGHLIGHTS (UNAUDITED)
FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD
FOR THE PERIOD
AUGUST 19, 1995(A)
TO
OCTOBER 31, 1995
-----------------
Net Asset Value, Beginning of Period $10.00
-------
Income From Investment Operations:
Net Investment Income 0.01
Net Losses on Securities (both realized and unrealized) (0.33)
------
Total From Investment Operations (0.32)
------
Net Asset Value, End of Period $9.68
======
Total Return (b) -3.20
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Ratios/Supplementary Data
Net Assets, End of Period (000) $554
Ratio of Expenses to Average Net Assets (c) 0.00%
Ratio of Net Income to Average Net Assets (d) 0.40%
Portfolio Turnover Rate 16.76%
(a) Commencement of operations.
(b) Total return is calculated assuming an initial investment made at the net
assets value at the beginning of the period. Total return for the period ended
October 31, 1995 was not annualized.
(c) Had the advisor not reimbursed expenses, the expense ratio for the period
August 19, 1995 (commencement of operations) to October 31, 1995 would have been
3.72%. (d) Annualized.
See Notes to Financial Statements.
<PAGE>
WORLDWIDE HARD ASSETS FUND
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
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Note 1-Significant Accounting Policies:
Van Eck Worldwide Insurance Trust (the "Trust"), organized as a Massachusetts
business trust on January 7, 1987, is registered under the Investment Company
Act of 1940. The following is a summary of significant accounting policies
consistently followed by the Worldwide Hard Assets Fund series, a
non-diversified fund (the "Fund") of the Trust in the preparation of its
financial statements. The policies are in conformity with generally accepted
accounting principles.
A. Security valuation-Securities traded on national exchanges and traded in the
NASDAQ National Market System are valued at the last sales prices reported at
the close of business on the last business day of the period. Over-the-counter
securities not included in the NASDAQ National Market System and listed
securities for which no sale was reported are valued at the mean of the bid and
asked prices. Short-term obligations are valued at cost which with accrued
interest approximates value. Securities for which quotations are not available
are stated at fair value as determined by the Board of Trustees.
B. Federal income taxes-It is the Fund's policy to comply with the provisions of
the Internal Revenue Code applicable to regulated investment companies and to
distribute all of its taxable income to its shareholders. Therefore, no federal
income tax provision is required.
C. Currency Translation-Assets and liabilities denominated in foreign currencies
and commitments under forward currency contracts are translated into U.S.
Dollars at the mean of the quoted bid and asked prices of such currencies on the
last business day of the period. Purchases and sales of investments are
translated at the exchange rates prevailing when such investments were acquired
or sold. Income and expenses are translated at the exchange rates prevailing
when accrued. Recognized gains or losses on security transactions attributable
to foreign currency fluctuations are recorded as net realized gains and losses
on investments. The portion of unrealized gains and losses on investments that
result from fluctuations in foreign currency exchange rates are not separately
disclosed.
D. Other-Security transactions are accounted for on the date the securities are
purchased or sold. Dividend income and distributions to shareholders are
recorded on the ex-dividend date. Interest income is accrued as earned.
E. Deferred organization costs will be amortized over a period not exceeding
five years.
<PAGE>
WORLDWIDE HARD ASSETS FUND
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
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Note 2-Van Eck Associates Corporation (the "Advisor") earns fees for investment
management and advisory services. The fee is based on an annual rate of 1% of
average daily net assets. For the period ended October 31, 1995, Van Eck
Associates Corporation agreed to waive its management fees and assume all
expenses of the Fund. Certain of the officers and trustees of the Trust are
officers, directors or stockholders of Van Eck Associates Corporation and Van
Eck Securities Corporation. As of October 31, 1995 Van Eck Associates
Corporation owned 87.33% of the outstanding shares of the Fund.
Note 3-Purchases of securities other than short-term obligations aggregated
$463,225 for the period ended October 31, 1995. For federal income tax purposes
the identified cost of investments owned at April 30, 1995 was $403,510. As of
October 31, 1995 net unrealized depreciation for federal income tax purposes
aggregated $18,499 of which $7,983 related to appreciated securities and $26,482
related to depreciated securities.
<PAGE>
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WORLDWIDE
INSURANCE TRUST
OCTOBER 31, 1995
VAN ECK
-----------------------
WORLDWIDE
-----------------------
BALANCED
-----------------------
FUND
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SEMI-ANNUAL
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REPORT
[LOGO]
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<PAGE>
WORLDWIDE BALANCED FUND
INVESTMENT PORTFOLIO
OCTOBER 31, 1995 (UNAUDITED)
NO. OF SHARES COMMON STOCK VALUE (NOTE 1)
- --------------------------------------------------------------------------------
NETHERLANDS: 9.8%
50 Philips Electronics N.V $1,931
SWEDEN: 14.0%
100 Kinnevik AB 'B' 2,775
UNITED KINGDOM: 28.3%
500 British Aerospace PLC 5,605
UNITED STATES: 47.9%
50 Intel Corporation 3,494
50 Sunamerica, Inc. 3,113
50 The Walt Disney Company 2,881
----------
9,488
----------
TOTAL COMMON STOCK: 100.0% (Cost: $20,418) $19,799
----------
SUMMARY OF INVESTMENTS % OF
BY INDUSTRY PORTFOLIO
- ---------------------- ---------
Aerospace & Defense 28.3%
Diversified Holdings 14.0%
Electronics 9.8%
Entertainment & Leisure 14.6%
Financial Services 15.7%
Semiconductors 17.6%
-----
100.0%
=====
See Notes to Financial Statements.
<PAGE>
WORLDWIDE BALANCED FUND
FINANCIAL STATEMENTS (UNAUDITED)
- --------------------------------------------------------------------------------
Statement of Assets and Liabilities
October 31, 1995
Assets:
Investments at value (identified cost, $20,418) $ 19,799
Cash 127,276
Receivable from Advisor 15,692
Deferred organizational expenses (Note 1) 3,778
--------
Total assets 166,545
--------
Liabilities:
Deferred organizational costs payable 4,560
Accounts payable 10,002
--------
Total liabilities 14,562
--------
Net Assets
(Equivalent to $9.96 per share on 15,259
shares of beneficial interest outstanding
with an unlimited number of $.001 par value
shares authorized)
$ 151,983
Net assets consist of: ==========
Aggregate paid in capital $ 152,595
Unrealized depreciation of investments (619)
Undistributed net investment income 7
---------
$ 151,983
=========
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See Notes to Financial Statements.
<PAGE>
WORLDWIDE BALANCED FUND
FINANCIAL STATEMENTS (UNAUDITED)
- --------------------------------------------------------------------------------
STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED OCTOBER 31, 1995
Investment Income (Note 1):
Dividend Income $ 7
Expenses:
Management (Note 2) $ 210
Administrative (Note 2) 70
Custodian 3,124
Professional 4,033
Amortization of deferred organizational 460
expenses (Note 1)
Other 1,008
------
Total expenses 8,905
Expenses assumed by the advisor (Note 2) (8,905) 0
------ -------
Net investment income 7
Change in unrealized depreciation of investments:
Beginning of period 0
End of period (619)
-------
Change in unrealized depreciation (619)
-------
Net Decrease in Net Assets Resulting from Operations $ (612)
========
See Notes to Financial Statements.
<PAGE>
WORLDWIDE BALANCED FUND
FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
SIX MONTHS FOR THE PERIOD
ENDING OCTOBER DECEMBER 23,
31, 1995 1994 TO APRIL
(UNAUDITED) 30, 1995
-------------- --------------
Increase in Net Assets:
OPERATIONS:
Net Investment Income $ 7 $ 0
Change in unrealized depreciation
of investments (619) 0
--------- --------
Decrease in net assets resulting from operations (612) 0
--------- --------
CAPITAL SHARE TRANSACTIONS*:
Net proceeds from sales of shares 182,583 20,864
Cost of shares reacquired (44,194) (11,658)
--------- --------
Increase in net assets resulting
from capital share transactions 138,389 9,206
--------- --------
Total increase in net assets 137,777 9,206
NET ASSETS:
Beginning of period 14,206 5,000
--------- --------
End of period $ 151,983 $ 14,206
========= ========
*Shares of Beneficial Interest
Issued and Redeemed
Shares sold 18,258 2,586
Shares reacquired (4,420) (1,165)
--------- --------
Net increase 13,838 1,421
========= ========
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
<PAGE>
WORLDWIDE BALANCED FUND
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
FOR THE FOR THE
PERIOD FROM PERIOD FROM
MAY 1, 1995 DECEMBER 23,
TO OCTOBER 31, 1994+ TO
1995 APRIL 30,
(UNAUDITED) 1995
-------------- ------------
Net Asset Value, Beginning of Period $ 10.00 $ 10.00
----------- -----------
Income From Investment Operations:
Net Investment Income 0.00 0.00
Net Unrealized Losses on Securities (0.04) 0.00
----------- -----------
Total From Investment Operations (0.04) 0.00
----------- -----------
Net Asset Value, End of Period $ 9.96 $ 10.00
=========== ============
Total Return (a) -0.40% 0.00%
- --------------------------------------------------------------------------------
Ratios/Supplementary Data
Net Assets, End of Period (000) $ 152 $ 14
Ratio of Expenses to Average Net Assets 0.00%(b) 0.00%(b)
Ratio of Net Income to Average Net Assets 0.03%(c) 0.00%
Portfolio Turnover Rate 0.00% 0.00%
- ----------
(a) Total return is calculated assuming an initial investment made at the
net asset value at the beginning of the period and a redemption on the
last day of the period.
(b) Had the advisor not reimbursed expenses, the unannualized expense
ratios would have been 16.07% and 78.40%, respectively.
(c) Annualized.
+ Commencement of operations.
See Notes to Financial Statements.
<PAGE>
WORLDWIDE BALANCED FUND
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
- --------------------------------------------------------------------------------
Note 1-Significant Accounting Policies:
Van Eck Worldwide Insurance Trust (the "Trust"), organized as a Massachusetts
business trust on January 7, 1987, is registered under the Investment Company
Act of 1940. The following is a summary of significant accounting policies
consistently followed by the Worldwide Balanced Fund series, a non-diversified
fund (the "Fund") of the Trust in the preparation of its financial statements.
The policies are in conformity with generally accepted accounting principles.
A. Security valuation-Securities traded on national exchanges and traded in the
NASDAQ National Market System are valued at the last sales prices reported at
the close of business on the last business day of the period. Over-the-counter
securities not included in the NASDAQ National Market System and listed
securities for which no sale was reported are valued at the mean of the bid and
asked prices. Short-term obligations are valued at cost which with accrued
interest approximates value. Securities for which quotations are not available
are stated at fair value as determined by the Board of Trustees.
B. Federal income taxes-It is the Fund's policy to comply with the provisions of
the Internal Revenue Code applicable to regulated investment companies and to
distribute all of its taxable income to its shareholders. Therefore, no federal
income tax provision is required.
C. Currency Translation-Assets and liabilities denominated in foreign currencies
and commitments under forward currency contracts are translated into U.S.
Dollars at the mean of the quoted bid and asked prices of such currencies on the
last business day of the period. Purchases and sales of investments are
translated at the exchange rates prevailing when such investments were acquired
or sold. Income and expenses are translated at the exchange rates prevailing
when accrued. Recognized gains or losses on security transactions attributable
to foreign currency fluctuations are recorded as net realized gains and losses
on investments. The portion of unrealized gains and losses on investments that
result from fluctuations in foreign currency exchange rates are not separately
disclosed.
D. Other-Security transactions are accounted for on the date the securities are
purchased or sold. Dividend income and distributions to shareholders are
recorded on the ex-dividend date. Interest income is accrued as earned.
E. Deferred organization costs will be amortized over a period not exceeding
five years.
<PAGE>
WORLDWIDE BALANCED FUND
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
- --------------------------------------------------------------------------------
Note 2-Van Eck Associates Corporation (the "Advisor") earns fees for investment
management and advisory services. The fee is based on an annual rate of .75 of
1% of average daily net assets. Van Eck Associates Corporation also earns fees
for accounting and administrative services. The fee is based on an annual rate
of .25 of 1% of the Fund's average daily net assets. Fiduciary International,
Inc., the sub-investment advisor, earns fees for investment management. The fee
is based on an annual rate of .50 of 1% of the Fund's average daily net assets
and is paid by the Advisor from the advisory fees it receives from the Fund. The
sub-investment advisor waived its fee for the six months ended October 31, 1995.
Van Eck Associates Corporation agreed to waive its management fees and
administrative fees. Certain of the officers and trustees of the Trust are
officers, directors or stockholders of Van Eck Associates Corporation and Van
Eck Securities Corporation.
Note 3-Purchases of securities other than short-term obligations aggregated
$20,417 for the six months ended October 31, 1995. For federal income tax
purposes the identified cost of investments owned at October 31, 1995 was
$20,417. As of October 31, 1995 net unrealized depreciation for federal income
tax purposes aggregated $619 of which $375 related to appreciated securities and
$994 related to depreciated securities.
Note 4-The Fund may purchase securities on foreign exchanges. Securities of
foreign issuers involve special risks and consideration not typically associated
with investing in U.S. issuers. These risks include re-evaluation of currencies,
less reliable information about issuers, different securities transactions
clearance and settlement practices, and future adverse political and economic
developments. These risks are heightened for investments in emerging market
countries. Moreover, securities of many foreign issuers and their markets may be
less liquid and their prices more volatile than those of comparable U.S.
issuers.
<PAGE>
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WORLDWIDE
INSURANCE TRUST
OCTOBER 31, 1995
VAN ECK
-----------------------
WORLDWIDE
-----------------------
BOND
-----------------------
FUND
-----------------------
SEMI-ANNUAL
-----------------------
REPORT
[LOGO]
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<PAGE>
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Van Eck Worldwide Bond Fund
-------------------------------------
October 31, 1995 Semi-Annual Report
Dear Fellow Shareholder:
During the past six months (since April 30), most world bond markets have
rallied as both U.S. and European interest rates stabilized and investors began
to expect lower rates. The dollar hit record lows in April against both the
Japanese yen and the German mark but has since rebounded back to
beginning-of-the-year levels. The Worldwide Bond Fund had a total return of 3.2%
during this period.* The Fund benefited from the bond rally, although short-term
strength in the dollar dampened performance somewhat.
Among the strongest performing bond markets over the last six months were the
U.S. and the peripheral European markets, such as Italy and Spain. The Fund's
U.S. bond position was increased from about 20% of the portfolio to over 35%
during the last six months. Also benefiting performance, positions in Italy and
Spain were significantly augmented in April when these bonds finally appeared
undervalued, after lagging the core European markets' upturn earlier in the
year. Since that time, the peripheral market holdings have again been lowered as
our long-term confidence remains with the core bond markets such as Germany.
After a rally in French bonds on expectations of a more sound fiscal budget, we
liquidated the French bond position in September when the final budget turned
out disappointing, raising questions over whether France could meet the
guidelines of the European Economic Community and putting downward pressure on
the franc.
Your portfolio has remained very underweighted in Japanese bonds, beginning the
period at about 6% of assets and then declining again to approximately 3% at
October 31. Very low interest rates and credit risk due to the continuing
Japanese financial and real estate crisis continue to make the Japanese market
unattractive relative to other bond markets. Japanese bonds were down 13.2% in
U.S. dollar terms for the six-month period.
Fund returns were reduced somewhat due to a recent U.S. dollar rally that was
particularly strong in July and August, but has leveled off since that time.
Long-term, we believe that the U.S. stock market is overvalued at current levels
and that recent highs are largely the result of an influx of foreign capital. In
our opinion, these levels will not be maintained, and foreign investors will
begin selling U.S. securities. When this happens, the dollar will decline versus
other currencies. Thus, our currency position has been heavily weighted to
foreign core currencies, such as the German mark, the Swiss franc and the
Japanese yen, in anticipation of dollar weakness.
Looking forward, we believe a declining dollar and a possible lowering of both
key European and U.S. interest rates should have a positive effect on Fund
performance.
Madis Senner
Portfolio Manager
November 15, 1995
*Average annual returns on the Fund for the 1-year, 5-year and life (9/1/89)
periods ended 10/31/95 were 15.0%, 6.9% and 7.3%, respectively. Performance does
not take variable annuity/life fees and expenses into account.
This report must be accompanied or preceded by a Van Eck Worldwide Insurance
Trust Prospectus which includes more complete information such as charges and
expenses and the risks associated with international investing including
currency fluctuations or controls, expropriation, nationalization and
confiscatory taxation. Please read the prospectus before investing.
- --------------------------------------------------------------------------------
<PAGE>
WORLDWIDE BOND FUND
INVESTMENT PORTFOLIO (UNAUDITED)
OCTOBER 31, 1995
BONDS AND NOTES PRINCIPAL AMOUNT VALUE (NOTE 1)
- --------------------------------------------------------------------------------
GERMANY-14.5%
Bundesrepublik Deutschland
6.25% due 1-04-24 DEM 4,000,000 $ 2,512,255
7.375% due 1-03-05 6,000,000 4,518,436
7.50% due 11-11-04 9,000,000 6,832,646
World Bank
6.125% due 9-27-02 4,420,000 3,137,650
------------
17,000,987
IRELAND-1.1%
Irish Government Treasury Bond
6.25% due 10-18-04 IEP 890,000 1,275,180
------------
JAPAN-3.1%
Japanese Government
4.20% due 9-21-15 JPY 338,500,000 3,594,625
------------
NETHERLANDS-5.7%
Netherlands Government
6.75% due 2-15-99 NLG 10,000,000 6,646,090
------------
NEW ZEALAND-4.9%
New Zealand Government
8.0% due 11-15-06 NZD 8,300,000 5,787,757
------------
SPAIN-2.1%
Kingdom of Spain
7.40% due 7-30-99 ESP 335,000,000 2,501,080
------------
UNITED STATES-33.1%
U.S. Treasury Notes
*5.625% due 1-31-98 USD 6,000,000 5,994,378
*5.75% due 10-31-00 2,400,000 2,393,626
*5.875% due 8-15-98 11,800,000 11,855,318
*6.50% due 8-15-05 11,200,000 11,607,438
*7.125% due 9-30-99 6,700,000 7,007,792
------------
38,858,552
Total Bonds and Notes: 64.5% (Cost: $74,241,732) 75,664,271
------------
See Notes to Financial Statements.
<PAGE>
WORLDWIDE BOND FUND
INVESTMENT PORTFOLIO (CONTINUED)
SHORT-TERM OBLIGATIONS PRINCIPAL AMOUNT VALUE (NOTE 1)
- --------------------------------------------------------------------------------
EUROPEAN CURRENCY UNIT-0.7%
BANCA COMMERCIALE ITALIANA TIME DEPOSIT
5.625% due 11-07-95 ECU 613,069 $ 797,450
------------
ITALY-3.5%
BANCA COMMERCIALE ITALIANA TIME DEPOSIT
10.375% due 11-07-95 ITL 6,629,033,192 4,166,582
------------
UNITED STATES-31.3%
G.E. COMPANY COMMERCIAL PAPER
Interest Yield 5.68% due 11-01-95 USD 3,684,000 3,684,000
U.S. TREASURY BILLS
Interest Yield 5.15% due 11-09-95 4,000,000 3,995,484
Interest Yield 4.99% due 11-02-95 29,000,000 28,996,037
------------
36,675,521
------------
Total ShortTerm Obligations: 35.5% (Cost: $41,629,898) 41,639,553
------------
Total Investments: 100% (Cost $115,871,630) $ 117,303,824
=============
* These securities are segregated for forward currency contracts.
See Notes to Financial Statements.
<PAGE>
WORLDWIDE BOND FUND
FINANCIAL STATEMENTS (UNAUDITED)
- --------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES
OCTOBER 31, 1995
Assets:
Investments at value (identified cost,
$115,871,630 ) (Note 1) $ 117,303,824
Cash initial margin deposit (Note 5) 94,000
Receivables:
Capital shares sold 4,163
Interest 1,958,977
Other Assets 10,516
Open forward currency contracts (Note 4) 614,981
-------------
Total assets 119,986,461
-------------
Liabilities:
Payables:
Due to custodian 10,524,084
Capital stock redeemed 292,184
Dividends 2,031,824
Open forward currency contracts (Note 4) 823,936
Due to brokervariation margin (Note 5) 53,385
Management fee 103,815
Accounts payable 47,205
-------------
Total liabilities 13,876,433
-------------
Net Assets (Equivalent to $11.00 per share on
9,649,168 shares of beneficial interest
outstanding with an unlimited number of
$.001 par value shares authorized) $ 106,110,028
=============
Net assets consist of:
Aggregate paid in capital $ 106,898,630
Unrealized appreciation of investments,
futures, forward contracts and foreign currenc 1,434,798
Undistributed net investment income 1,019,374
Cumulative realized losses (3,242,774)
-------------
$ 106,110,028
=============
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
<PAGE>
WORLDWIDE BOND FUND
STATEMENT OF OPERATIONS
- --------------------------------------------------------------------------------
FOR THE SIX MONTHS ENDED OCTOBER 31, 1995
Interest Income (Note 1) $ 3,608,521
Expenses:
Management (Note 2) $ 442,266
Administrative (Note 2) 31,671
Custodian 24,050
Professional 11,522
Trustees fees and expenses 1,035
Printing 7,311
Other 14,844
------------
Total expenses 532,699
------------
Net investment income 3,075,822
Realized and Unrealized Gain (Loss)
on Investments (Note 3):
Realized loss from futures contracts and options (326,252)
Realized gain from security transactions
(excluding shortterm securities):
Proceeds from sales 72,166,235
Cost of securities sold 71,177,400
------------
Realized gain 988,835
Realized gain from foreign currency transactions 3,848,257
Unrealized appreciation
of investments:
Beginning of period 1,041,750
End of period 1,432,194
------------
Change in unrealized appreciation 390,444
Unrealized appreciation/ (depreciation) of
foreign currency receivables and payables:
Beginning of period (92,323)
End of period 328
------------
Change in unrealized appreciation/(depreciation)
of foreign currency receivables and payables 92,651
Unrealized appreciation (depreciation) of forward
currency contracts:
Beginning of period 4,377,878
End of period (208,956)
------------
Change in unrealized appreciation (depreciation)
of forward currency contracts (4,586,834)
Unrealized appreciation (depreciation) of futures
contracts:
Beginning of period (4,120)
End of period (Note 5) 211,232
------------
Change in unrealized appreciation (depreciation)
of futures contracts 215,352
------------
Net Increase in Net Assets Resulting from Operations $ 3,698,275
============
See Notes to Financial Statements.
<PAGE>
WORLDWIDE BOND FUND
STATEMENTS OF CHANGES IN NET ASSETS
SIX MONTHS YEAR
ENDED ENDED
OCTOBER 31, APRIL 30,
1995 1995
------------ ---------
Increase (Decrease) in Net Assets:
Operations:
Net investment income $ 3,075,822 $ 5,334,326
Realized gain (loss) from futures
contracts and options (326,252) 100,699
Realized gain (loss) from security
transactions 988,835 (1,882,784)
Realized gain (loss) from foreign
currency transactions 3,848,257 (846,176)
Change in unrealized appreciation/(depreciation)
of investments 390,444 4,765,944
Change in unrealized appreciation/(depreciation)
of foreign currency receivables and payables 92,651 (103,343)
Change in unrealized appreciation (depreciation)
of forward currency contracts (4,586,834) 4,609,754
Change in unrealized appreciation/(depreciation)
of futures contracts 215,352 (370)
------------- -------------
Increase in net assets
resulting from operations 3,698,275 11,978,050
------------- -------------
Dividends to shareholders from:
Net investment income (8,098,367) (342,078)
------------- -------------
Capital share transactions*:
Net proceeds from sales of shares 33,616,470 45,886,052
Reinvestment of dividends 6,066,543 342,078
------------- -------------
39,683,013 46,228,130
Cost of shares reacquired (42,638,809) (25,306,443)
------------- -------------
Increase (decrease) in net assets resulting
from capital share transactions (2,955,796) 20,921,687
------------- -------------
Total increase (decrease) in net assets (7,355,888) 32,557,659
Net Assets:
Beginning of period 113,465,916 80,908,257
------------- -------------
End of period (including undistributed net
investment income of $1,019,374 and
$1,667,825, respectively) $ 106,110,028 $ 113,465,916
============= =============
*Shares of Beneficial Interest
Issued and Redeemed
Shares sold 3,016,701 4,223,715
Reinvestment of dividends 546,044 34,484
------------- -------------
. 3,562,745 4,258,199
Shares reacquired (3,815,420) (2,409,229)
------------- -------------
Net increase (decrease) (252,675) 1,848,970
============= =============
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
<PAGE>
WORLDWIDE BOND FUND
FINANCIAL HIGHLIGHTS
For a share outstanding throughout each period
<TABLE>
<CAPTION>
SIX MONTHS
ENDED
OCTOBER 31, YEAR ENDED APRIL 30,
1995 -------------------------------------------------------------
(UNAUDITED) 1995 1994 1993 1992 1991 1990+
----------- ---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $11.46 $10.05 $10.62 $11.57 $10.82 $10.10 $10.00
------ ------ ------ ------ ------ ------ ------
Income From Investment Operations:
Net Investment Income 0.30 0.68 * 0.63 0.81 0.62 1.03 0.26
Net Gains ( Losses) on Securities
(both realized and unrealized) 0.06 0.77 (0.37) (0.75) 0.67 0.19 (0.16)
------ ------ ------ ------ ------ ------ ------
Total From Investment Operations 0.36 1.45 0.26 0.06 1.29 1.22 0.10
------ ------ ------ ------ ------ ------ ------
Less Distributions:
Dividends from net investment income (0.82) (0.04) (0.72) (0.83) (0.53) (0.50) --
Distributions from capital gains -- -- (0.11) (0.18) (0.01) -- --
------ ------ ------ ------ ------ ------ ------
Total Distributions (0.82) (0.04) (0.83) (1.01) (0.54) (0.50) 0.00
------ ------ ------ ------ ------ ------ ------
Net Asset Value, End of Period $11.00 $11.46 $10.05 $10.62 $11.57 $10.82 $10.10
====== ====== ====== ====== ====== ====== ======
Total Return (a) 3.19% 14.51% 2.49% 0.38% 12.21% 12.37% 1.00%
- ----------------------------------------------------------------------------------------------------------------------
Ratios/Supplementary Data
Net Assets, End of Period (000) $106,110 $113,466 $80,908 $66,035 $40,930 $15,046 $2,237
Ratio of Expenses to Average Net
Assets (b) 0.96%(d) 0.98%(c) 0.93% 1.01% 1.05% 0.50% 0.00%
Ratio of Net Income to Average
Net Assets 5.54%(d) 6.24% 6.47% 8.47% 8.55% 9.75% 9.22%(d)
Portfolio Turnover Rate 100.28 265.87 37.59 248.21 231.34% 341.01% 12.23%(d)
</TABLE>
- ---------------
+ From September 1, 1989 (commencement of operations) to April 30, 1990.
(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 advisor not reimbursed expenses, the expense ratio 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.
(c) Ratio would have been 0.99% had there not been a directed brokerage
arrangement.
(d) Annualized.
* Based on average shares outstanding.
See Notes to Financial Statements.
<PAGE>
WORLDWIDE BOND FUND
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
- --------------------------------------------------------------------------------
Note 1-Significant Accounting Policies:
Van Eck Worldwide Insurance Trust (the "Trust"), formerly the Van Eck Investment
Trust, organized as a Massachusetts business trust on January 7, 1987, is
registered under the Investment Company Act of 1940. The following is a summary
of significant accounting policies consistently followed by the Worldwide Bond
Fund, a non-diversified series, (the "Fund") of the Trust in the preparation of
its financial statements. The policies are in conformity with generally accepted
accounting principles.
A. Security valuation-Securities traded on national exchanges and traded in the
NASDAQ National Market System are valued at the last sales prices reported at
the close of business on the last business day of the period. Over-the-counter
securities not included in the NASDAQ National Market System and listed
securities for which no sale was reported are valued at the mean of the bid and
asked prices. Short-term obligations purchased with more than sixty days
remaining to maturity are valued at market. Short-term obligations purchased
with sixty days or less to maturity are valued at cost which with accrued
interest approximates value. Futures are valued using the closing price reported
at the close of the Chicago Board of Trade. Forward currency contracts are
valued at the spot currency rate plus an amount ("points") which reflects the
differences in interest rates between the U.S. and the foreign markets.
Securities for which quotations are not available are stated at fair value as
determined by the Board of Trustees.
B. Federal income taxes-It is the Fund's policy to comply with the provisions of
the Internal Revenue Code applicable to regulated investment companies and to
distribute all of its taxable income to its shareholders. Therefore, no federal
income tax provision is required.
C. Currency Translation-Assets and liabilities denominated in foreign currencies
and commitments under forward currency contracts are translated into U.S.
Dollars at the mean of the quoted bid and asked prices of such currencies on the
last business day of the period. Purchases and sales of investments are
translated at the exchange rates prevailing when such investments were acquired
or sold. Income and expenses are translated at the exchange rates prevailing
when accrued. The portion of realized and unrealized gains and losses on
investments that result from fluctuations in foreign currency exchange rates is
not separately disclosed. Recognized gains or losses attributable to foreign
currency fluctuations on foreign currency denominated assets and liabilities are
recorded as net realized gains and losses from foreign currency transactions.
<PAGE>
WORLDWIDE BOND FUND
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
- --------------------------------------------------------------------------------
D. Dividends and Distributions-Dividend income and distributions to shareholders
are recorded on the ex-dividend date. Income distributions and capital gain
distributions are determined in accordance with income tax regulations which may
differ from generally accepted accounting principles. These differences are
primarily due to differing treatments for foreign currency transactions.
E. Other-Security transactions are accounted for on the date the securities are
purchased or sold. Interest income is accrued as earned.
Note 2-Van Eck Associates Corporation earned fees of $442,266 for the six months
ended October 31, 1995 for investment management and advisory services. The fee
is based on an annual rate of 1% of the first $500 million of average daily net
assets, .90 of 1% on the next $250 million and .70 of 1% on the excess over $750
million. For the period May 1, 1995 to September 28, 1995 the fee was based on
an annual rate of .75 of 1% of the first $500 million of average daily net
assets, .65 of 1% on the next $250 million and .50 of 1% in excess of $750
million. In accordance with the advisory agreement, the Fund reimbursed Van Eck
Associates Corporation $31,671 for costs incurred in connection with certain
administrative and accounting functions. Certain of the officers and trustees of
the Trust are officers, directors or stockholders of Van Eck Associates
Corporation and Van Eck Securities Corporation.
Note 3-Purchases of securities other than short-term obligations aggregated
$78,208,795 for the six months ended October 31, 1995. For federal income tax
purposes the identified cost of investments owned at October 31, 1995 was
$115,871,630. As of October 31, 1995 net unrealized appreciation for federal
income tax purposes aggregated $1,432,194 of which $1,538,545 related to
appreciated securities and $106,351 related to depreciated securities. At April
30, 1995, the Fund had a capital loss carry forward available to offset future
capital gains expiring April 30, 2003 in the amount of $2,190,883.
<PAGE>
WORLDWIDE BOND FUND
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
- --------------------------------------------------------------------------------
Note 4-At October 31, 1995, the Fund had outstanding forward currency contracts:
FOREIGN CURRENCY BUY CONTRACTS:
UNREALIZED
VALUE AT APPRECIATION
CONTRACTS SETTLEMENT DATE CURRENT VALUE (DEPRECIATION)
- --------- --------------- ----------------------------
CAD 10,740,152
expiring 12/20/95 $ 7,899,959 $ 7,996,936 $ 96,977
CHF 11,711,508
expiring 12/20/95 $ 9,865,924 $10,367,255 $ 501,331
DEM 19,128,173
expiring 12/20/95 $13,434,185 $13,624,217 $ 190,032
FRF 16, 038,357
expiring 12/20/95 $ 3,271,799 $ 3,281,259 $ 9,460
GBP 1,580,313
expiring 12/20/95 $ 2,438,107 $ 2,495,867 $ 57,760
JPY 1,998,368,828
expiring 12/20/95 $19,965,218 $19,724,638 ($ 240,580)
---------
$ 614,980
---------
FOREIGN CURRENCY SALE CONTRACTS:
CAD 17,331,382
expiring 12/20/95 $12,649,453 $12,905,508 ($256,055)
DEM 10,189, 875
expiring 12/20/95 $ 7,196,239 $ 7,257,832 ($ 61,593)
FRF 16,038,357
expiring 12/20/95 $ 3,134,451 $ 3,281,259 ($146,808)
IEP 754,196
expiring 12/20/95 $ 1,190,121 $ 1,223,055 ($ 32,934)
NLG 10,282,375
expiring 12/20/95 $ 6,201,674 $ 6,528,220 ($326,546)
---------
($823,936)
---------
($208,956)
=========
<PAGE>
WORLDWIDE BOND FUND
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
- --------------------------------------------------------------------------------
The Fund may incur additional risk from investments in forward currency
contracts if the counterparty is unable to fulfill its obligation or there are
unanticipated movements of the foreign currency relative to the U.S. dollar.
Note 5-. In connection with the trading of futures contracts, the Fund is
required to deposit cash equal to a certain percentage of the contract amount.
In the remote chance the broker cannot fulfill its obligation, the Fund could
lose it's initial margin deposit. Subsequent payments are made or received each
day dependent on the daily fluctuations in the value of the underlying
securities. Risks may be caused by an imperfect correlation between the
movements in the price of the instruments and the price of the underlying
securities and interest rates.
NUMBER OF CONTRACT UNREALIZED
FUTURES CONTRACTS CONTRACTS VALUE APPRECIATION
- ----------------- --------- ----- ------------
Long
U.S. Treasury Bond
Futures expiring 12/19/95 47 $5,501,938 $211,232
Note 6-An income dividend of $.21 a share was paid on November 3, 1995 to
shareholders of record on October 30, 1995, with a reinvestment date of November
1, 1995.
<PAGE>
- --------------------------------------------------------------------------------
WORLDWIDE
INSURANCE TRUST
OCTOBER 31, 1995
VAN ECK
-----------------------
GOLD &
-----------------------
NATURAL
-----------------------
RESOURCES
-----------------------
FUND
-----------------------
SEMI-ANNUAL
-----------------------
REPORT
[LOGO]
- --------------------------------------------------------------------------------
<PAGE>
- --------------------------------------------------------------------------------
Van Eck Gold & Natural Resources Fund
-------------------------------------
October 31, 1995 Semi-Annual Report
Dear Fellow Shareholder:
During the six month period from April 30 through October 31, the Fund generally
maintained an investment position of 45-55% of its assets in gold mining shares,
15 to 20% in companies with diversified mining interests, 10-15% in oil and gas
producing companies including oil servicing companies and 5-7% in agricultural
related companies. Cash and equivalents averaged about 10% of net assets.
Gold continued to trade in a narrow range of $391.70-$380.25 an ounce during
this period. The high point was established on June 19 possibly reflecting
monetary instability in the wake of the adoption of more expansionary monetary
policies by Germany and Japan to support the U.S. dollar. As currency conditions
stabilized, gold and interest rates continued to decline. The gold price reached
its low for the period on September 4 and then traded very narrowly to close at
$382.50 on October 31.
Gold-mining shares generally rose through September with the South African
shares performing particularly well during the summer months in anticipation of
improved labor relations and a reasonable wage settlement. The Fund registered
its month-end high on September 30 at $14.59 a share. Subsequently, the failure
of gold to break out of its narrow trading range as well as reported tax-related
selling by mutual funds depressed the gold share market and the Fund closed at
$13.04 on October 31, down 2.6% for the period.*
Oil prices traded without trend throughout the period, but good demand and
rising reserves generally contributed to improved operating results and
apparently to good share performance of several of the Fund's energy holdings.
Diversified mining companies for this period also experienced rising demand and
generally good share performance. The Fund's investments in this area are
concentrated in copper, nickel and aluminum industries.
Rising global food demand and low stockpiles of basic food commodities have led
to rising agricultural prices and increased demand for fertilizer and seed
products. This has materially benefited the agriculture-related securities in
the portfolio, particularly those with proprietary products and superior
technological skills.
Since the end of the reporting period there has been some upward pressure on the
gold market. Demand has been increasingly exceeding new mine supply and only
sales from existing holdings have made up the difference. Recently, tightness
has appeared in the market and those wishing to borrow gold, for whatever
purpose, have been forced to pay much higher than historical interest rates. So
far this has carried gold only to near the upper end of its yearly trading
range. Continued tightness in the cash market, however, combined with possible
unexpected instability in currency markets could have a significant favorable
effect on future gold prices.
Globally, there appears to be an effort to stimulate national economies by means
of more expansionary monetary policies. As these policies take hold and with
continuing economic growth in emerging market nations, we expect continued
strong demand for a variety of natural resources which should benefit the gold
as well as the resource components of the portfolio.
Henry J. Bingham
Portfolio Manager
December 6, 1995
*Average annual returns for the Fund for 1 year, 5 year and life (inception
9/89) periods ended 10/31/95 were -5.9%, 8.9% and 5.2%, respectively. These
returns do not take variable insurance/life fees and expenses into account.
This report must be accompanied or preceded by a Van Eck Worldwide Insurance
Trust Prospectus which includes more complete information such as charges and
expenses and the risks associated with international investing including
currency fluctuations or controls, expropriation, nationalization and
confiscatory taxation. Please read the prospectus before investing.
- --------------------------------------------------------------------------------
<PAGE>
GOLD & NATURAL RESOURCES FUND
INVESTMENT PORTFOLIO
OCTOBER 31, 1995 (Unaudited)
NO. OF SHARES SECURITIES(A) VALUE (NOTE 1)
- --------------------------------------------------------------------------------
Mining Shares-Large Capitalization: 61.1%
50,000 Ashanti Goldfields Company Limited (GDS) $ 900,000
180,000 Barrick Gold Corp. 4,162,500
210,000 Battle Mountain Gold Company 1,601,250
30,000 Cameco Corp. 971,849
40,000 Cyprus Amax Minerals Company 1,045,000
60,000 Driefontein Consolidated Limited (ADR) 660,000
160,000 Echo Bay Mines Limited 1,440,000
8,771 Echo Bay Finance Conv. Pfd. 243,409
65,000 Free State Consolidated Gold Mines Limited 613,438
90,000 FreeportMcMoRan Copper & Gold Inc. (Class A) 2,058,750
290,000 Hemlo Gold Mines Inc. 2,392,500
250,000 Homestake Mining Company 3,843,750
100,000 Impala Platinum Holdings Limited (ADR) 2,018,750
80,000 Kloof Gold Mining Company Limited (ADR) 750,000
550,000 Newcrest Mining Limited 2,259,130
120,000 Newmont Gold Company 4,530,000
20,000 Phelps Dodge Corporation 1,267,500
200,000 Placer Dome Inc. 4,375,000
500,000 Placer Pacific Limited 947,009
542,200 Plutonic Resources Limited 2,474,546
600,000 Renison Goldfields Consolidated Limited 2,519,272
90,000 Rustenburg Platinum Holdings Limited 1,597,500
280,000 Santa Fe Pacific Gold Corporation 2,765,000
320,000 TVX Gold Inc. 2,080,000
250,000 Teck Corporation (Class B) 4,607,908
205,000 Western Areas Gold Mining Company Limited 2,844,375
35,000 Western Deep Levels Limited (ADR) 980,000
850,000 Western Mining Corporation Holdings Limited 5,471,875
------------
61,420,311
------------
Mining Shares-Medium Capitalization: 14.0%
100,000 AgnicoEagle Mines Limited 1,100,000
500,000 Ashton Mining Limited 627,536
250,000 Beatrix Mines Limited (ADR) 2,156,250
100,000 Beatrix Mines Limited (ORD) 862,499
60,000 Coeur d'Alene Mines Corporation 1,012,500
400,006 Delta Gold N. L 858,026
90,000 Hecla Mining Company 663,750
100,000 Magma Copper Company 1,675,000
120,000 Miramar Mining Corporation 614,387
145,000 North Flinders Mines Limited 780,883
90,000 Pegasus Gold Inc. 990,000
17,400 PT Tambang Timah (GDR) 208,104
108,000 Rayrock Yellowknife Resources, Inc. 804,289
340,000 Sons of Gwalia Limited 1,681,036
------------
14,034,260
------------
Mining Shares-Small Capitalization: 10.0%
550,000 Australian Resources Limited 472,743
200,000 Emperor Mines 302,738
115,000 First Mississippi Gold 2,357,500
253,000 Great Central 515,751
400,000 Namibian Minerals Corporation 387,250
80,000 Harmony Gold Mining Limited (ADR) 690,000
100,000 Rangold and Exploration Company Limited 412,499
400,000 Resolute Samantha Gold N.L 769,777
1,000,000 St. Barbara Mines Limited 608,520
54,000 St. Helena Gold 367,875
42,000 Stillwater Mining Company 708,750
40,000 The RTZ Corporation PLC (ADR) 2,250,000
200,000 Wiluna Mines 197,769
------------
10,041,172
------------
See Notes to Financial Statements.
<PAGE>
GOLD & NATURAL RESOURCES FUND
INVESTMENT PORTFOLIO (CONTINUED)
NO. OF SHARES SECURITIES(A) VALUE (NOTE 1)
- --------------------------------------------------------------------------------
Energy Source: 10.9%
30,000 Halliburton Company $1,245,000
27,000 Helmerich & Payne 698,625
19,000 Mobil Corporation 1,914,250
60,000 Pinnacle Resources Limited 659,070
80,000 Poco Petroleums Limited 513,851
30,000 Renaissance Energy Limited 661,863
18,000 Royal Dutch Petroleum Company 2,211,750
30,000 St. Mary Land and Exploration 401,250
18,000 Schlumberger Ltd. 1,120,500
18,000 The British Petroleum Co. PLC (ADR) 1,588,500
------------
11,014,659
------------
Other Industries: 4.0%
88,557 First Mississippi Corporation 1,594,035
50,000 Pioneer Hi-Bred International, Inc. 2,481,263
------------
4,075,298
------------
Total Investments: 100.0% (Cost: $90,362,824) $100,585,700
============
- -----------------
(a) Unless otherwise indicated, securities owned are shares of common stock.
Glossary:
ADR-American Depository Receipt
GDR-Global Depository Receipt
GDS-Global Depository Shares
ORD-Ordinary Shares
DISTRIBUTION OF PORTFOLIO BY COUNTRY
October 31, 1995
PERCENT OF PORTFOLIO
Australia 23.2%
Canada 21.0%
Ghana 0.9%
Indoneisa 0.2%
Netherlands 2.2%
South Africa 13.9%
United Kingdom 3.8%
United States 34.8%
------
100.0%
======
See Notes to Financial Statements.
<PAGE>
GOLD AND NATURAL RESOURCES FUND
FINANCIAL STATEMENTS (UNAUDITED)
- --------------------------------------------------------------------------------
Statement of Assets and Liabilities
October 31, 1995
Assets:
Investments at value (identified cost, $90,362,824) $100,585,700
Receivables:
Securities sold 2,715,897
Capital shares sold 2,838
Dividends 84,028
Other assets 19,059
------------
Total assets 103,407,522
------------
Liabilities:
Payables:
Due to custodian 2,065,456
Dividends payable 540,380
Capital shares repurchased 181,873
Management fee payable 103,815
Accounts payable 45,095
------------
Total liabilities 2,936,619
------------
Net Assets (Equivalent to $13.04 per share on
7,705,980 shares of beneficial interest
outstanding with an unlimited number of
$.001 par value shares authorized) $100,470,903
============
Net assets consist of:
Aggregate paid in capital $91,402,500
Unrealized appreciation of investments, forward
currency contracts, and foreign currency 10,222,755
Undistributed net investment income 155,406
Cumulative realized losses (1,309,758)
------------
$100,470,903
============
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
<PAGE>
GOLD AND NATURAL RESOURCES FUND
FINANCIAL STATEMENTS (UNAUDITED)
- --------------------------------------------------------------------------------
STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED OCTOBER 31, 1995
Investment Income:
Income:
Dividends (less foreign taxes withheld of $112,213) $ 1,168,627
Interest 236,305
-----------
Total income 1,404,932
Expenses:
Management (Note 2) $ 524,656
Administrative (Note 2) 34,393
Custodian 27,222
Professional 12,908
Trustees fees and expenses 2,902
Other 19,899
------------
Total expenses 621,980
-----------
Net investment income 782,952
Realized and Unrealized Gain(Loss)
on Investments (Note 3)
Realized gain from security transactions
(excluding short-term securities):
Proceeds from sales 19,311,148
Cost of securities sold 19,025,679
------------
Realized gain 285,469
Realized loss from foreign currency transactions (5,579)
Unrealized depreciation of foreign currency
receivables and payables:
Beginning of period (359)
End of period (121)
------------
Change in unrealized depreciation of
foreign currency receivables and payables 238
Unrealized appreciation of investments:
Beginning of period 13,321,051
End of period 10,222,876
------------
Change in unrealized appreciation (3,098,175)
-----------
Net Decrease in Net Assets
Resulting from Operations $(2,035,095)
===========
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
<PAGE>
GOLD AND NATURAL RESOURCES FUND
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
SIX MONTHS YEAR
ENDED ENDED
OCTOBER 31, APRIL 30,
1995 (UNAUDITED) 1995
---------------- ----------
Increase/(Decrease)in Net Assets:
Operations:
Net investment income $ 782,952 $ 790,540
Realized gain (loss) from
security transactions 285,469 (88,089)
Realized gain (loss) from
foreign currency transactions (5,579) 16,931
Change in unrealized depreciation of
foreign currency receivables and payables 238 (359)
Change in unrealized appreciation
of investments (3,098,175) 1,006,585
------------- -------------
Increase (Decrease) in net assets (2,035,095) 1,725,608
resulting from operations
Dividends to shareholders from net
investment income (1,119,954) (556,181)
------------- -------------
(3,155,049) 1,169,427
------------- -------------
Capital share transactions*:
Net proceeds from sales of shares 83,165,179 215,198,706
Reinvestment of dividends 579,574 556,181
------------- -------------
83,744,753 215,754,887
Cost of shares reacquired (107,438,490) (170,852,980)
------------- -------------
Increase (Decrease) in net assets
resulting from capital share transactions (23,693,737) 44,901,907
------------- -------------
Total increase (decrease) in net assets (26,848,786) 46,071,334
Net Assets:
Beginning of period 127,319,689 81,248,355
------------- -------------
End of period (including undistributed
net investment income of $155,406 and
$492,408, respectively) $ 100,470,903 $ 127,319,689
============= =============
*Shares of Beneficial Interest
Issued and Redeemed
Shares sold 5,953,774 16,179,492
Reinvestment of dividends 43,414 40,771
------------- -------------
5,997,188 16,220,263
Shares reacquired (7,729,594) (12,979,210)
------------- -------------
Net increase (decrease) (1,732,406) 3,241,053
============= =============
See Notes to Financial Statements.
<PAGE>
GOLD AND NATURAL RESOURCES FUND
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
<TABLE>
<CAPTION>
SIX MONTHS
ENDED YEAR ENDED APRIL 30,
OCTOBER 31, --------------------------------------------------------------------
1995 (UNAUDITED) 1995 1994 1993 1992 1991 1990+
---------------- ---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $13.49 $13.11 $10.61 $ 8.25 $ 8.85 $ 9.51 $ 10.00
------ ------ ------ ------ ------ ------ -------
Income From Investment Operations:
Net Investment Income 0.10 0.08 0.07 0.01 0.04 0.16 0.08
Net Gains or Losses on Securities (both
realized and unrealized) (0.42) 0.37 2.47 2.39 (0.53) (0.69) (0.57)
------ ------ ------ ------ ------ ------ -------
Total From Investment Operations (0.32) 0.45 2.54 2.40 (0.49) (0.53) (0.49)
------ ------ ------ ------ ------ ------ -------
Less Distributions:
Dividends from net investment income (0.13) (0.07) (0.04) (0.04) (0.11) (0.13) --
------ ------ ------ ------ ------ ------ -------
Total Distributions (0.13) (0.07) (0.04) (0.04) (0.11) (0.13) --
------ ------ ------ ------ ------ ------ -------
Net Asset Value, End of Period $13.04 $13.49 $13.11 $10.61 $8.25 $8.85 $9.51
======== ======== ======== ======== ======== ======== ========
Total Return (a) 2.38% 3.43% 23.96% 29.19% 5.62% 5.67% 4.90%
- ----------------------------------------------------------------------------------------------------------------------------
Ratios/Supplementary Data
Net Assets, End of Period (000) $100,471 $127,320 $81,248 $30,896 $9,836 $6,936 $3,660
Ratio of Expenses to Average
Net Assets (b) 0.94%* 0.96% 0.96% 1.61% 1.32% 0.52% --
Ratio of Net Income to Average Net Assets 1.18%* 0.71% 0.64% 0.25% 0.60% 2.10% 2.46%*
Portfolio Turnover Rate 3.86% 23.30% 15.84% 14.61% 0.48% 21.86% 5.09%*
</TABLE>
- ----------
+ From September 1, 1989 (commencement of operations) to April 30, 1990.
(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 distributions at net asset
value during the period 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 advisor not reimbursed expenses, the expense
ratio for the year ended April 30, 1991 and for the period
September 1, 1989 (commencement of operations) to April 30, 1990
would have been 1.21% and 1.87%, respectively.
*Annualized.
See Notes to Financial Statements.
<PAGE>
GOLD AND NATURAL RESOURCES FUND
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
- --------------------------------------------------------------------------------
Note 1-Significant Accounting Policies:
Van Eck Worldwide Insurance Trust (the "Trust"), formerly the Van Eck Investment
Trust, organized as a Massachusetts business trust on January 7, 1987, is
registered under the Investment Company Act of 1940. The following is a summary
of significant accounting policies consistently followed by the Gold and Natural
Resources Fund series, a diversified fund (the "Fund"), of the Trust in the
preparation of its financial statements. The policies are in conformity with
generally accepted accounting principles.
A. Security valuation-Securities traded on national exchanges and traded in the
NASDAQ National Market System are valued at the last sales prices reported at
the close of business on the last business day of the period. Over-the-counter
securities not included in the NASDAQ National Market System and listed
securities for which no sale was reported are valued at the mean of the bid and
asked prices. Short-term obligations purchased with more than sixty days
remaining to maturity are valued at market. Short-term obligations purchased
with sixty days or less to maturity are valued at cost which with accrued
interest approximates value. Securities for which quotations are not available
are stated at fair value as determined by the Board of Trustees.
B. Federal income taxes-It is the Fund's policy to comply with the provisions of
the Internal Revenue Code applicable to regulated investment companies and to
distribute all of its taxable income to its shareholders. Therefore, no federal
income tax provision is required.
C. Currency Translation-Assets and liabilities denominated in foreign currencies
and commitments under forward currency contracts are translated into U.S.
Dollars at the mean of the quoted bid and asked prices of such currencies on the
last business day of the period. Purchases and sales of investments are
translated at the exchange rates prevailing when such investments were acquired
or sold. Income and expenses are translated at the exchange rates prevailing
when accrued. The portion of realized and unrealized gains and losses on
investments that result from fluctuations in foreign currency exchange rates is
not separately disclosed. Recognized gains or losses attributable to foreign
currency fluctuations on foreign currency denominated assets and liabilities are
recorded as net realized gains and losses from foreign currency transactions.
<PAGE>
GOLD AND NATURAL RESOURCES FUND
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
- --------------------------------------------------------------------------------
D. Dividends and Distributions-Dividend income and distributions to shareholders
are recorded on the ex-dividend date. Income distributions and capital gain
distributions are determined in accordance with income tax regulations which may
differ from generally accepted accounting principles. These differences are
primarily due to differing treatments for foreign currency transactions.
E. Other-Security transactions are accounted for on the date the securities are
purchased or sold. Interest income is accrued as earned.
Note 2-Van Eck Associates Corporation earned fees of $524,656 for the six months
ended October 31, 1995 for investment management and advisory services. The fee
is based on an annual rate of 1% of the first $500 million of average daily net
assets, .90 of 1% on the next $250 million and .70 of 1% in excess of $750
million. For the period May 1, 1995 to September 28, 1995 the fee was based on
an annual rate of .75 of 1% of the first $500 million of average daily net
assets, .65 of 1% on the next $250 million and .50 of 1% in excess of $750
million. In accordance with the advisory agreement, the Fund reimbursed Van Eck
Associates Corporation $34,393 for costs incurred in connection with certain
administrative and accounting functions. Certain of the officers and trustees of
the Trust are officers, directors or stockholders of Van Eck Associates
Corporation and Van Eck Securities Corporation.
Note 3-Purchases of securities other than short-term obligations aggregated
$4,636,923 for the six months ended October 31, 1995. For federal income tax
purposes the identified cost of investments owned at October 31, 1995 was
$90,362,824. As of October 31, 1995 net unrealized appreciation for federal
income tax purposes aggregated $10,222,876 of which $18,148,957 related to
appreciated securities and $7,926,081 related to depreciated securities. At
April 30, 1995, the Fund had capital loss carry forwards available to offset
future capital gains expiring April 30, 2001 and 2002 of $306,887 and $141,515,
respectively.
<PAGE>
GOLD AND NATURAL RESOURCES FUND
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
- --------------------------------------------------------------------------------
Note 4-The Fund may purchase securities on foreign exchanges.
Securities of foreign issuers involve special risks and consideration not
typically associated with investing in U.S. issuers. These risks include
re-evaluation of currencies, less reliable information about issuers, different
securities transactions clearance and settlement practices, and future adverse
political and economic developments. These risks are heightened for investments
in emerging market countries. Moreover, securities of many foreign issuers and
their markets may be less liquid and their prices more volatile than those of
comparable U.S. issuers.
Note 5-An income dividend of $.07 a share was paid on November 3, 1995 to
shareholders of record on October 30, 1995, with a reinvestment date of November
1, 1995.
Note 6-At October 31, 1995 the Fund had the following outstanding forward
currency contracts.
VALUE AT
SETTLEMENT CURRENT UNREALIZED
CONTRACTS DATE VALUE DEPRECIATION
---------- ------- -------------
Foreign Currency Sales Contracts:
AUD 4,886,455
expiring 11/01/95 - 11/08/95 $3,663,518 $3,716,882 $(53,364)
