WORLDWIDE
INSURANCE TRUST
APRIL 30, 1996
VAN ECK
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GOLD &
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NATURAL
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RESOURCES
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FUND
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ANNUAL
-----------------------
REPORT
[LOGO]
VAN ECK GLOBAL
THE UNUSUAL FUNDS(SM)
<PAGE>
VAN ECK GOLD & NATURAL RESOURCES FUND
----------------------------------------------------------
4-30-96 ANNUAL REPORT/MANAGEMENT DISCUSSION & ANALYSIS
Dear Fellow Shareholder:
Hard assets performed well during the fiscal year as the Van Eck Gold and
Natural Resources Fund achieved a total return of 26.7% over the past year.
Macroeconomics were important drivers of hard asset performance over the last
year. Expectations of economic growth shifted dramatically throughout the year.
Late last spring it became evident that the economy was slowing markedly after a
blistering pace in 1994 when fourth quarter GDP grew at a 5.1% growth rate.
Interest rates began falling and the equity and fixed income markets began
pricing in a rate cut on the part of the Federal Reserve. The Fed did cut rates
at the beginning of July and continued to lower rates through January of this
year. In the first quarter of this year, expectations of economic growth shifted
once again as investors began pricing in stronger growth. Interest rates rose
and the equity and fixed income markets began pricing in rate rises by the
Federal Reserve Bank.
Hard asset performance generally mirrored investor expectations with regard to
economic growth. Base metals and forest product and paper stocks peaked in July
of last year and slowly came off as investors reduced their expectations of
economic growth. However, during the first quarter of 1996, as expectations of
economic growth picked up, these more cyclical sectors performed well.
Gold shares, the largest sector allocation for the Fund throughout the year, was
one of the best performing hard asset sectors, particularly in the first quarter
of this year. In the bullion markets, although superficially quiet, precious
metals markets were very active during the past year. While gold and silver
supply/demand fundamentals were excellent -- the best of any commodity, in our
opinion -- the commodity markets ignored this for the bulk of the year and
precious metals prices rose only marginally. In fact, the volatility of gold
bullion reached historical lows during the year. At the same time, a lot of
trading was taking place behind the scenes. This became evident in late November
when gold lease rates soared. The immediate cause appeared to be major forward
sales of gold by South African producers. However, at this time the willingness
of central banks to lend gold declined and lease rates soared. We believe this
illustrated the strength of gold market fundamentals -- that market demand had
easily absorbed the record supply (forward selling) without price weakness
throughout the year. In the equity markets, gold shares have had strong
performance this year. The MSCI Gold Mines Index rose over 20% through April.
The Fund's portfolio is concentrated in North American shares and includes
investments in Newmont Mining Corporation, Homestake Mining, and Barrick Gold.
The Fund also has investments in South African gold and platinum shares, which
are particularly attractive after the recent devaluation of the South African
Rand.
Energy, which is the second largest sector allocation, also performed extremely
well. This positive performance was driven by strong commodity prices and
healthy company fundamentals, particularly in the oil service sector. On the
commodity front, stronger-than-anticipated demand due to cold weather in the
energy intensive regions of the U.S. combined with low inventories --
inventories are currently at 19-year lows in the U.S. -- gave rise to commodity
price rises in all energy commodities. In fact, the Automobile Association of
America (AAA) announced recently that gasoline prices were at 15-year highs.
Even President Clinton became concerned and decided to sell off part of the U.S.
government's strategic stockpile of oil. Crude oil reached $26 per barrel -- a
level not seen since Iraq's invasion of Kuwait in 1990. These strong commodity
prices generally lifted the earnings and share prices of many exploration and
production oriented energy companies. The Fund had been positioned well in this
sector with investments in Louisiana Land and Exploration, Triton Energy, and
<PAGE>
United Meridian Corporation. Oil drilling companies also performed well as they
sported healthy, sustainable fundamentals for the first time since the early
1980's. The Fund's investments in this sector included Diamond Offshore and
Sonat Offshore.
OUTLOOK
We believe the outlook for hard assets is positive. We continue to believe the
economic and supply/demand environment for strong hard asset performance exists.
Central banks are maintaining "easy money" policies, emerging country growth
continues to be strong, and hard asset inventories are at extremely low levels.
These conditions have led to strong hard asset performance in the past.
Precious metals companies continue to be the Fund's largest allocation, followed
by energy, base metals, and forest products and paper. Later in the year, we
anticipate larger investments in physical commodities as we believe that we are
approaching a period similar to 1994 when commodities outperformed equities.
Derek S. van Eck
Portfolio Manager
May 22, 1996
*Average annual returns for the Fund for 1 year, 5 year and life (inception
9/89) periods ended 3/31/96 were 26.1%, 13.9% and 8.8%, 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.
Van Eck Securities Corporation, 99 Park Avenue, New York, NY 10016
<PAGE>
[THE FOLLOWING TABLE REPRESENTS A CHART IN THE PRINTED PIECE]
VAN ECK GOLD & NATURAL RESOURCES FUND vs NATURAL RESOURCES INDEX*
Van Eck Gold & Natural Resourses
Natural Resources Index*
9/1/89 $10,000 $10,000
$10,000 $10,253
$10,000 $10,204
$10,750 $10,893
Dec-89 $10,870 $11,505
$11,160 $11,710
$10,770 $10,893
$10,340 $10,403
Apr-90 $ 9,510 $ 9,748
$10,070 $10,374
$ 9,556 $10,054
$10,363 $10,861
Aug-90 $10,242 $10,689
$10,262 $10,154
$ 8,931 $ 9,518
$ 8,870 $ 9,362
Dec-90 $ 9,336 $ 9,516
$ 8,373 $ 9,161
$ 9,113 $ 9,817
$ 9,073 $ 9,564
Apr-91 $ 8,971 $ 9,639
$ 9,134 $ 9,948
$ 9,503 $ 9,860
$ 9,637 $10,096
Aug-91 $ 8,980 $ 9,624
$ 9,031 $ 9,713
$ 9,391 $10,018
$ 9,226 $ 9,621
Dec-91 $ 9,062 $ 9,696
$ 9,216 $ 9,656
$ 9,185 $ 9,390
$ 8,641 $ 9,047
Apr-92 $ 8,467 $ 9,248
$ 8,970 $ 9,605
$ 9,330 $ 9,366
$ 9,733 $ 9,332
Aug-92 $ 9,423 $ 9,116
$ 9,372 $ 8,932
$ 8,990 $ 8,474
$ 8,341 $ 8,239
Dec-92 $ 8,691 $ 8,403
$ 8,588 $ 8,487
$ 9,176 $ 9,032
$10,186 $ 9,699
Apr-93 $10,939 $10,485
$12,331 $11,183
$12,568 $11,177
$13,796 $11,730
Aug-93 $13,012 $11,469
$11,598 $10,879
$12,785 $11,761
$12,619 $11,349
Dec-93 $14,325 $12,164
$15,080 $12,651
$14,243 $12,225
$14,305 $11,826
Apr-94 $13,560 $11,836
$14,181 $11,992
$13,548 $11,845
$13,693 $12,278
Aug-94 $14,316 $12,794
$15,146 $13,177
$14,544 $13,105
$13,287 $12,012
Dec-94 $13,640 $12,230
$12,403 $11,377
$12,788 $11,742
$13,806 $12,670
Apr-95 $14,025 $12,934
$13,942 $13,024
$14,109 $13,008
$14,735 $13,450
Aug-95 $14,892 $13,164
$15,237 $13,308
$13,691 $12,581
$14,867 $13,257
Dec-95 $15,140 $13,415
$16,935 $14,202
$17,282 $14,334
$17,408 $14,637
Apr-96 $17,765 $15,007
- --------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN**
1 Year 5 Years Life
26.7% 14.6% 9.0%
- --------------------------------------------------------------------------------
Past performance is not indicative of future results.
*Equally weighted Average of MSCI Gold Mines, Energy Sources, Non-Ferrous
Metals, and Forest Products and Paper Indices, compiled by Van Eck Global. The
Natural Resources Index shown in the above illustration was changed from last
year, when the Fund was compared to the MSCI Gold Mines Index. Given that the
Fund may invest in varied natural resource sectors, we believe the Natural
Resources Index is a more accurate benchmark.
**Performance is net of the Fund's expenses only.
<PAGE>
[THE FOLLOWING TABLES REPRESENTS A CHART IN THE PRINTED PIECE]
VAN ECK GOLD & NATURAL RESOURCES FUND vs S&P 500
Van Eck Gold
& Natural Resources S&P 500
9/1/89 $10,000 $10,000
$10,000 $10,015
$10,000 $ 9,763
$10,750 $ 9,924
Dec-89 $10,870 $10,219
$11,160 $ 9,516
$10,770 $ 9,597
$10,340 $ 9,910
Apr-90 $ 9,510 $ 9,643
$10,070 $10,531
$ 9,556 $10,531
$10,363 $10,476
Aug-90 $10,242 $ 9,488
$10,262 $ 9,090
$ 8,931 $ 9,029
$ 8,870 $ 9,570
Dec-90 $ 9,336 $ 9,901
$ 8,373 $10,312
$ 9,113 $11,006
$ 9,073 $11,334
Apr-91 $ 8,971 $11,338
$ 9,134 $11,775
$ 9,503 $11,309
$ 9,637 $11,816
Aug-91 $ 8,980 $12,048
$ 9,031 $11,913
$ 9,391 $12,054
$ 9,226 $11,252
Dec-91 $ 9,062 $12,904
$ 9,216 $12,647
$ 9,185 $12,768
$ 8,641 $12,580
Apr-92 $ 8,467 $12,931
$ 8,970 $12,943
$ 9,330 $12,819
$ 9,733 $13,324
Aug-92 $ 9,423 $13,004
$ 9,372 $13,223
$ 8,990 $13,251
$ 8,341 $13,652
Dec-92 $ 8,691 $13,886
$ 8,588 $13,984
$ 9,176 $14,130
$10,186 $14,491
Apr-93 $10,939 $14,122
$12,331 $14,443
$12,568 $14,559
$13,796 $14,482
Aug-93 $13,012 $14,980
$11,598 $14,934
$12,785 $15,224
$12,619 $15,027
Dec-93 $14,325 $15,279
$15,080 $15,776
$14,243 $15,302
$14,305 $14,705
Apr-94 $13,560 $14,874
$14,181 $15,059
$13,548 $14,768
$13,693 $15,233
Aug-94 $14,316 $15,806
$15,146 $15,489
$14,544 $15,813
$13,287 $15,188
Dec-94 $13,640 $15,487
$12,403 $15,863
$12,788 $16,435
$13,806 $16,990
Apr-95 $14,025 $17,465
$13,942 $18,099
$14,109 $18,606
$14,735 $19,198
Aug-95 $14,892 $19,192
$15,237 $20,081
$13,691 $19,981
$14,867 $20,801
Dec-95 $15,140 $21,286
$16,935 $21,980
$17,282 $22,132
$17,408 $22,427
Apr-96 $17,765 $22,728
- --------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN*
1 Year 5 Years Life
26.7% 14.6% 9.0%
- --------------------------------------------------------------------------------
Past performance is not indicative of future results.
*Performance is net of the Fund's expenses only.
<PAGE>
GOLD & NATURAL RESOURCES FUND
INVESTMENT PORTFOLIO
APRIL 30, 1996
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NO. OF SHARES SECURITIES(a) VALUE (NOTE 1)
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Australia: 15.5%
200,000 Acacia Resources Ltd.+ $ 503,456
315,000 Amcor Ltd. Ord. 2,264,844
500,000 Ashton Mining Ltd. Ord. 896,781
550,000 Australian Resources Ltd. 553,802
400,006 Delta Gold Nl. Ord.+ 1,000,634
200,000 Emperor Mines Ltd.+ 519,189
253,000 Great Central Mines NL+ 774,197
550,000 Newcrest Mining Ltd. 2,652,190
145,000 North Flinder's Mines Ltd. 904,530
489,146 Placer Pacific Ltd. Ord. 942,727
542,200 Plutonic Resources Ltd. 3,305,543
70,000 Posgold Ltd. 189,425
200,000 Resolute Samantha Ltd. 498,736
600,000 RGC Ltd. 3,176,493
365,000 Sons Of Gwalia N.L. Ord. 2,598,502
1,000,000 St. Barbara Mines Ltd. 660,786
100,000 Wiluna Mines Ltd. Ord.+ 98,331
850,000 WMC Ltd. 6,268,617
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27,808,783
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Canada: 23.5%
100,000 Agnico Eagle Mines, Ltd. 1,825,000
180,000 Barrick Gold Corp. 5,512,500
44,000 Cambior Inc. 617,283
30,000 Cameco Corp. 1,606,376
186,183 Echo Bay Mines Ltd. 2,443,652
65,000 Goldcorp Inc. (Class A) 1,259,375
300,000 (b) Granges Units RESTRICTED+ 523,626
310,000 Hemlo Gold Mines Inc. 4,030,000
250,000 Macmillan Bloedel Ltd. 3,323,662
120,000 Miramar Mining Corp.+ 735,980
400,000 Namibian Minerals Corp.+ 2,144,772
130,000 Pegasus Gold Inc.+ 1,852,500
60,000 Pinnacle Resources Ltd.+ 771,237
220,000 Placer Dome Inc. 6,105,000
80,000 Poco Petroleums Ltd.+ 661,060
30,000 Renaissance Energy Ltd.+ 792,170
250,000 Teck Corporation (Class B) 5,352,749
320,000 TVX Gold Inc.+ 2,520,000
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42,076,942
----------
Ghana: 0.7%
60,000 Ashanti Goldfields
Company Ltd. (GDR) 1,312,500
----------
Indonesia: 0.2%
17,400 PT Tambang Timah (GDR)+ 300,150
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Norway: 0.8%
50,000 Transocean A/S+ 1,398,910
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South Africa: 9.3%
250,000 Beatrix Mines, Ltd. (ADR) 2,164,075
100,000 Beatrix Mines, Ltd. Ord. 865,625
80,000 Dreifontein Consolidated Ltd. (ADR) 1,270,000
30,000 Dreifontein Consolidated Ltd. Ord. 476,250
65,000 Freestate Consolidated Mines (ADR) 710,937
80,000 Harmony Gold Mining (ADR) 912,504
100,000 Impala Platinum Holdings (ADR) 1,825,000
80,000 Kloof Gold Mining (ADR) 950,000
100,000 Randgold & Exploration (ADR) 503,750
90,100 Rustenburg Platinum Holdings (ADR) 1,779,475
54,000 St. Helena Gold (ADR) 337,500
208,117 Western Area Gold Mining (ADR) 3,037,218
35,000 Western Deep Levels Ltd. (ADR) 1,741,250
----------
16,573,584
----------
United Kingdom: 2.5%
18,000 British Petroleum PLC (ADR) 1,966,500
40,000 RTZ PLC (ADR) 2,565,000
----------
4,531,500
----------
See Notes to Financial Statements.
<PAGE>
GOLD & NATURAL RESOURCES FUND
INVESTMENT PORTFOLIO (continued)
NO. OF SHARES SECURITIES(a) VALUE (NOTE 1)
- --------------------------------------------------------------------------------
United States: 42.8%
50,000 Alta Gold Co.+ $ 187,500
35,000 Anadarko Petroleum Corp. 2,038,750
15,600 Baker Hughes Inc. 495,300
210,000 Battle Mountain Gold Co. 1,863,750
24,600 Belden & Blake Corp. 498,150
65,000 Buckeye Cellulose Corp.+ 1,454,375
56,700 Cairn Energy USA Inc.+ 701,662
60,000 Coeur D'Alene Mines 1,192,500
45,700 Devon Energy Corp. 1,165,350
35,700 Diamond Offshore Drilling Inc 1,776,075
95,000 First Mississippi 2,208,750
143,557 Firstmiss Gold Inc.+ 4,414,378
202,000 Forest Oil Corp. 2,436,625
90,000 Freeport McMoran Copper & Gold 'A' 2,846,250
30,000 Halliburton Co. 1,721,250
27,000 Helmerich & Payne 995,625
3,000 Highlands Insurance Group+ 57,000
350,000 Homestake Mining Corp. 7,043,750
110,000 Kaiser Aluminum Corp.+ 1,471,250
65,000 Louisiana Land & Exploration Co. 3,518,125
19,000 Mobil Corp. 2,185,000
12,000 Newmont Gold Co. 696,000
130,000 Newmont Mining 7,523,750
42,600 Noble Affiliates, Inc. 1,496,325
50,000 Nuevo Energy Company+ 1,412,500
56,000 Reynolds Metals Company 3,010,000
18,000 Royal Dutch Petroleum Co.
NY Registry Shares 2,578,500
390,000 Santa Fe Pacific Gold Corp. 5,801,250
18,000 Schlumberger Ltd. 1,588,500
60,400 Seitel Inc.+ 1,668,550
19,550 Sonat Offshore Drilling Inc. 1,072,806
30,000 St. Mary Land & Exploration Co. 483,750
42,000 Stillwater Mining Company+ 1,008,000
79,000 Triton Energy Ltd. 4,345,000
20,000 Union Pacific Resources Group Inc. 550,000
45,100 United Meridian Corp.+ 1,398,100
50,000 Weatherford Enterra Inc. 1,762,500
------------
76,666,946
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Total Stocks & Other Investments: 95.3%
(Cost $129,292,689) 170,669,315
============
PRINCIPAL AMOUNT SHORT-TERM OBLIGATIONS: 4.7%
- --------------------------------------------------------------
$8,493,000 General Electric Company Commercial Paper
Due 5/01/96
Interest Yield Of 5.27%
(Amortized Cost $8,493,000) 8,493,000
------------
TOTAL INVESTMENTS:100%
(Cost $137,785,689) $179,162,315
============
(a) Unless otherwise indicated, securities owned are shares of common stock.
(b) Restricted security see Note 6
+ Non-income producing.
- --------------------------------------------------------------------------------
SUMMARY OF INVESTMENTS % OF SUMMARY OF INVESTMENTS % OF
BY INDUSTRY PORTFOLIO BY INDUSTRY PORTFOLIO
Gold Mining 56.84% Copper 1.59%
Oil & Gas Exploration 9.79% Non-Ferrous Metals 1.43%
Oil/Gas Equipment & Services 6.97% Chemicals 1.23%
Commercial Paper 4.74% Metals Misc. 0.90%
Paper & Forest Products 3.93% Aluminum 0.82%
Oil Integrated-International 3.76% Mining 0.67%
Platinum 2.57% Oil & Gas Products 0.44%
Oil/Gas Domestic 2.20% Metals and Mining 0.41%
Metals 1.68% Insurance 0.03%
-------
100.00%
=======
See Notes to Financial Statements.
<PAGE>
GOLD AND NATURAL RESOURCES FUND
FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES
APRIL 30, 1996
Assets:
Investments at value (identified cost, $137,785,689) (Note 1) $179,162,315
Cash 3,842,230
Receivables:
Capital shares sold 3,605,758
Securities sold 205,256
Dividends 127,536
Open forward foreign currency contracts (Note 5) 37
Other assets 270
------------
Total assets 186,943,402
------------
Liabilities:
Payables:
Securities purchased 450,900
Capital shares repurchased 2,190
Open forward foreign currency contracts (Note 5) 58
Accounts payable 120,528
------------
Total liabilities 573,676
------------
Net Assets (Equivalent to $16.92 per share
11,013,039 shares of beneficial interest
outstanding with an unlimited number of
$.001 par value shares authorized) $186,369,726
============
Net assets consist of:
Aggregate paid in capital $143,008,774
Unrealized appreciation of investments, forward currency
contracts and foreign currency 41,377,166
Undistributed net investment income 1,632,405
Undistributed realized gains 351,381
------------
$186,369,726
============
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
<PAGE>
GOLD AND NATURAL RESOURCES FUND
FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
STATEMENT OF OPERATIONS
FOR THE YEAR ENDED APRIL 30,1996
Income:
Dividends (less foreign taxes
withheld of $166,829) $ 2,065,619
Interest 552,363
-----------
Total income 2,617,982
Expenses
Management (Note 2) $ 1,251,773
Administrative (Note 2) 34,251
Professional 45,751
Custodian 34,564
Reports to shareholders 31,998
Trustees fees and expenses 17,690
Registration fees 6,556
Other 75,737
-----------
Total expenses 1,498,320
Expenses reduced by directed brokerage
and custodian fee arrangements (Note 2) (3,241)
-----------
1,495,079
-----------
Net investment income 1,122,903
Realized and Unrealized Gain (Loss)
on Investments (Note 3)
Realized gain from security transactions
(excluding short-term securities):
Proceeds from sales 34,141,847
Cost of securities sold 31,061,107
-----------
Realized gain 3,080,740
Realized loss from foreign currency transactions (4,602)
Unrealized appreciation (depreciation)
of foreign currency receivables, payables
and forward foreign currency contracts:
Beginning of year (359)
End of year 540
-----------
Change in unrealized appreciation
(depreciation) of foreign currency
receivables, payables and forward
foreign currency contracts 899
Unrealized appreciation of investments:
Beginning of year 13,321,051
End of year 41,376,626
-----------
Change in unrealized appreciation 28,055,575
-----------
Net Increase in Net Assets
Resulting from Operations $32,255,515
===========
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
<PAGE>
GOLD AND NATURAL RESOURCES FUND
STATEMENTS OF CHANGES IN NET ASSETS
YEARS ENDED APRIL 30, 1996 AND 1995
- --------------------------------------------------------------------------------
1996 1995
---- ----
Increase in Net Assets:
Operations:
Net investment income $ 1,122,903 $ 790,540
Realized gain (loss) from
security transactions 3,080,740 (88,089)
Realized gain (loss) from
foreign currency transactions (4,602) 16,931
Change in unrealized appreciation (depreciation)
of foreign currency receivables and payables 899 (359)
Change in unrealized appreciation
of investments 28,055,575 1,006,585
------------ ------------
Increase in net assets
resulting from operations 32,255,515 1,725,608
Dividends to shareholders from net
investment income (1,119,954) (556,181)
------------ ------------
31,135,561 1,169,427
------------ ------------
Capital share transactions*:
Net proceeds from sales of shares 248,311,248 215,198,706
Reinvestment of dividends 1,119,954 556,181
------------ ------------
249,431,202 215,754,887
Cost of shares reacquired (221,516,726) (170,852,980)
------------ -----------
Increase in net assets resulting
from capital share transactions 27,914,476 44,901,907
------------ ------------
Total increase in net assets 59,050,037 46,071,334
Net Assets:
Beginning of year 127,319,689 81,248,355
------------ ------------
End of year (including undistributed
net investment income of
$l,632,405 and $492,408,
respectively) $186,369,726 $127,319,689
============ ============
*Shares of Beneficial Interest
Issued and Redeemed:
Shares sold 16,491,600 16,179,492
Reinvestment of dividends 84,822 40,771
------------ ------------
16,576,422 16,220,263
Shares reacquired (15,001,769) (12,979,210)
------------ ------------
Net increase 1,574,653 3,241,053
============ ============
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
<PAGE>
GOLD AND NATURAL RESOURCES FUND
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH YEAR
<TABLE>
<CAPTION>
YEAR ENDED APRIL 30,
------------------------------------------------------------
1996 1995 1994 1993 1992
---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Year $13.49 $13.11 $10.61 $ 8.25 $8.85
------ ------ ------ ------ -----
Income From Investment Operations:
Net Investment Income 0.12 0.08 0.07 0.01 0.04
Net Gains, Loss on Securities
(both realized and unrealized) 3.44 0.37 2.47 2.39 (0.53)
------ ------ ------ ------ -----
Total From Investment Operations 3.56 0.45 2.54 2.40 (0.49)
------ ------ ------ ------ -----
Less Distributions:
Dividends from
net investment income (0.13) (0.07) (0.04) (0.04) (0.11)
------ ------ ------ ------ -----
Total Distributions (0.13) (0.07) (0.04) (0.04) (0.11)
------ ------ ------ ------ -----
Net Asset Value, End of Year $16.92 $13.49 $13.11 $10.61 $8.25
====== ====== ====== ====== =====
Total Return (a) 26.66% 3.43% 23.96% 29.19% -5.62%
- --------------------------------------------------------------------------------------------------------
Ratios/Supplementary Data
Net Assets, End of Year (000) $186,370 $127,320 $81,248 $30,896 $9,836
Ratio of Expenses to Average Net Assets 1.08%(b) 0.96% 0.96% 1.61% 1.32%
Ratio of Net Income to Average Net Assets 0.81% 0.71% 0.64% 0.25% 0.60%
Portfolio Turnover Rate 26.37% 23.30% 15.84% 14.61% 0.48%
Average Commission Rate Paid $0.0310
</TABLE>
- -----------------------------------------
(a) Total return is calculated assuming an initial investment made at the net
asset value at the beginning of the year, reinvestment ofdividends at net asset
value during the year and a redemption on the last day of the year.
(b) The ratio was not impacted by the directed brokerage and custodian fee
arrangements.
See Notes to Financial Statements.
<PAGE>
GOLD AND NATURAL RESOURCES FUND
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
NOTE 1-Significant Accounting Policies:
Van Eck Worldwide Insurance Trust (the "Trust"), organized as a Massachusetts
business trust on January 7, 1987, is registered under the Investment Company
Act of 1940. The following is a summary of significant accounting policies
consistently followed by the Gold and Natural Resources Fund, a diversified
fund, (the "Fund") of the Trust in the preparation of its financial statements.
The policies are in conformity with generally accepted accounting principles.
The preparation of financial statements in conformity with generally accepted
accounting principles requires the use of management's estimates, and the actual
results could differ.
A. Security valuation-Securities traded on national exchanges and traded in the
NASDAQ National Market System are valued at the last sales prices reported at
the close of business on the last business day of the year. Over-the-counter
securities not included in the NASDAQ National Market System and listed
securities for which no sale was reported are valued at the mean of the bid and
asked prices. Short-term obligations purchased with more than sixty days
remaining to maturity are valued at market. Short-term obligations purchased
with sixty days or less to maturity are valued at cost which with accrued
interest approximates value. Forward currency contracts are valued at the spot
currency rate plus an amount ("points") which reflects the differences in
interest rates between the U.S. and the foreign markets. Securities for which
quotations are not available are stated at fair value as determined by the Board
of Trustees.
B. Federal income taxes-It is the Fund's policy to comply with the provisions of
the Internal Revenue Code applicable to regulated investment companies and to
distribute all of its taxable income to its shareholders. Therefore, no federal
income tax provision is required.
C. Currency Translation-Assets and liabilities denominated in foreign currencies
and commitments under forward currency contracts are translated into U.S.
Dollars at the mean of the quoted bid and asked prices of such currencies on the
last business day of the year. Purchases and sales of investments are translated
at the exchange rates prevailing when such investments were acquired or sold.
Income and expenses are translated at the exchange rates prevailing when
accrued. The portion of realized and unrealized gains and losses on investments
that result from fluctuations in foreign currency exchange rates is not
separately disclosed. Recognized gains or losses attributable to foreign
currency fluctuations on foreign currency denominated assets and liabilities are
recorded as net realized gains and losses from foreign currency transactions.
<PAGE>
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, passive
foreign investment companies and wash sales. The effect of these differences for
the year ended April 30, 1996 increased undistributed net investment income by
$1,137,048, decreased aggregate paid in capital by $1,939 and decreased
cumulative realized gains by $1,135,109.
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 $1,251,773 for the year
ended April 30, 1996 for investment management and advisory services. This fee,
which includes the fee paid to the Advisor for accounting and administrative
services, 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 $34,251 for costs incurred in connection with certain
administrative and accounting functions. Certain of the officers and trustees of
the Trust are officers, directors or stockholders of Van Eck Associates
Corporation and Van Eck Securities Corporation.
The Fund directs certain portfolio trades to a broker that, in turn, pays a
portion of the Fund's operating expenses. The Fund also has a fee arrangement,
based on cash balances left on deposit with the custodian, which also reduces
the Fund's operating expenses. For the year ended April 30, 1996, the Fund's
expenses were reduced by $1,250 and $1,991, respectively, under these
arrangements.
NOTE 3-Purchases of securities other than short-term obligations aggregated
$55,602,216 for the year ended April 30,1996. For federal income tax purposes
the identified cost of investments owned at April 30, 1996 was $139,066,557. As
of April 30, 1996, net unrealized appreciation for federal income tax purposes
aggregated $40,095,758 of which $42,064,562 related to appreciated securities
and $1,968,804 related to depreciated securities.
<PAGE>
GOLD AND NATURAL RESOURCES FUND
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
- --------------------------------------------------------------------------------
NOTE 4 -The Fund invests in foreign securities. Investments in foreign
securities may involve a greater degree of risk than investments in domestic
securities due to political, economic or social instability. In addition, some
foreign companies are not generally subject to the same uniform accounting,
auditing and financial rules as are American companies, and there may be less
government supervision and regulation. Foreign investments may also be subject
to foreign taxes, dividend collection fees and settlement delays.
The Fund has investments in South African securities. South African securities
may be subject to greater political, social and economic risks than investments
in more developed foreign markets. Emerging market countries, such as South
Africa, may present the risk of nationalization of businesses, or prohibitions
of repatriation of assets, and may have less protection of property rights than
more developed countries.
The Fund may concentrate its investments in companies which are significantly
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 and by investing in gold bullion and coins.
Since the Fund may so concentrate, it may be subject to greater risks and market
fluctuations than other more diversified portfolios. The production and
marketing of gold and other natural resources may be affected by actions and
changes in governments. In addition, gold and natural resources may be cyclical
in nature.
NOTE 5- Forward Currency Contracts - The Fund may buy and sell forward currency
contracts to settle purchases and sales of foreign denominated securities. In
addition, the Fund may enter into forward currency contracts to hedge foreign
denominated assets. Realized gains and losses from forward currency contracts
are included in realized gain from foreign currency transactions. At April 30,
1996, the Fund had the following outstanding forward currency contracts:
FOREIGN CURRENCY SELL CONTRACTS:
Unrealized
Value at Appreciation
Contracts Settlement Date Current Value (Depreciation)
- --------- --------------- ------------- --------------
AUD 38,806 $30,564 $30,527 $ 37
expiring 5/06/96
AUD 50,123 $39,371 $39,429 $(58)
expiring 5/07/96 -----
$(21)
=====
The Fund may incur additional risk from investments in forward currency
contracts if the counterparty is unable to fulfill its obligation or there are
unanticipated movements of the foreign currency relative to the U.S.
dollar.
<PAGE>
GOLD AND NATURAL RESOURCES FUND
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
- --------------------------------------------------------------------------------
NOTE 6-Restricted Security
The following security is restricted as to sale:
PERCENT OF
DATE NET ASSETS
ACQUIRED COST VALUE AT 4/30/96
-------- ---- ----- ----------
Granges Units 4/25/96 $572,687 $523,626 0.28%
NOTE 7-An income dividend of $.155 a share and a long term capital gain
distribution of $.152 a share were paid on May 31,1996 to shareholders of record
date May 29,1996 with a reinvestment date of May 31,1996.
<PAGE>
COOPERS & LYBRAND
COOPERS & LYBRAND L.L.P.
a professional services firm
1301 Avenue of the Americas
New York, New York
10019-6013
telephone (212) 259-1000
facsimile (212) 259-1301
REPORT OF INDEPENDENT ACCOUNTANTS
-----------------------
To the Shareholders and Board of Trustees of
Van Eck Worldwide Insurance Trust:
We have audited the accompanying statement of assets and liabilities, including
the investment portfolio, of the Gold and Natural Resources Fund (the "Fund")
(one of the series constituting the Van Eck Worldwide Insurance Trust) as of
April 30, 1996, and the related statement of operations for the year then ended,
the statements of changes in net assets for each of the two years in the period
then ended and the financial highlights for each of the five years in the period
then ended. These financial statements and financial highlights are the
responsibility of the Fund's management. Our responsibility is to express an
opinion on these financial statements and financial highlights based on our
audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities owned as of April
30, 1996 by correspondence with the custodian and brokers. An audit also
includes assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for our
opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of the
Gold and Natural Resources Fund series of the Van Eck Worldwide Insurance Trust
as of April 30, 1996, the results of its operations for the year then ended, the
changes in its net assets for each of the two years in the period then ended,
and the financial highlights for each of the five years in the period then
ended, in conformity with generally accepted accounting principles.
/s/ Coopers & Lybrand L.L.P.
COOPERS & LYBRAND L.L.P.
New York, New York
June 11, 1996
Coopers & Lybrand L.L.P. is a member of Coopers & Lybrand International, a
limited liability association incorporated in Switzerland.
