<PAGE>
SCHEDULE 14A INFORMATION
(Rule 14a-101)
INFORMATION REQUIRED IN PROXY STATEMENT
SCHEDULE 14A INFORMATION
Proxy Statement Pursuant to Section 14(a) of the Securities Exchange Act of 1934
(Amendment No. )
Filed by the Registrant [X]
Filed by a Party other than the Registrant [ ]
Check the appropriate box:
[ ] Preliminary Proxy Statement
[ ] Confidential, for Use of the Commission Only (as permitted by Rule 14a-
6(e)(2))
[X ] Definitive Proxy Statement
[ ] Definitive Additional Materials
[ ] Soliciting Material Pursuant to Rule 14a-11(c) or Rule 14a-12
VAN ECK WORLDWIDE INSURANCE TRUST
---------------------------------
(Name of Registrant as Specified In Its Charter)
(Name of Person(s) Filing Proxy Statement if other than the Registrant)
Payment of Filing Fee (Check the appropriate box):
[X ] No Fee required.
[ ] Fee computed on table below per Exchange Act Rules 14a-6(i)(1) and 0-11.
1) Title of each class of securities to which transaction applies:
2) Aggregate number of securities to which transaction applies:
3) Per unit price or other underlying value of transaction computed
pursuant to Exchange Act Rule 0-11 (Set forth the amount on which
the filing fee is calculated and state how it was determined):
4) Proposed maximum aggregate value of transaction:
5) Total fee paid:
[ ] Fee paid previously with preliminary materials.
[ ] Check box if any part of the fee is offset as provided by Exchange Act
Rule 0-11(a)(2) and identify the filing for which the offsetting fee was
paid previously. Identify the previous filing by registration statement
number, or the Form or Schedule and the date of its filing.
1) Amount Previously Paid:
2) Form, Schedule or Registration Statement No.:
3) Filing Party:
4) Date filed:
<PAGE>
VAN ECK WORLDWIDE INSURANCE TRUST
WORLDWIDE BALANCED FUND
99 Park Avenue, New York, New York 10016
(212) 687-5200 . Toll Free (800) 826-2333
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NOTICE OF SPECIAL MEETING OF SHAREHOLDERS
Monday, June 29, 1998
----
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A SPECIAL MEETING OF SHAREHOLDERS OF WORLDWIDE BALANCED FUND
(the"Fund"), a series of VAN ECK WORLDWIDE INSURANCE TRUST (the "Trust"), will
be held at the offices of the Trust, 8th Floor, 99 Park Avenue, New York, New
York on Monday, June 29, 1998, at 4:00 p.m., New York Time, for the
------- ---- ---------
following purposes:
1. To consider and vote upon a Plan of Liquidation and Dissolution
pursuant to which the Fund's assets will be liquidated, known liabilities
satisfied and remaining proceeds distributed to shareholders; and
2. To consider and act upon any other matters which may properly come
before the meeting or any adjournment thereof.
Shareholders of record at the close of business on February 13, , 1998
-----------
are entitled to notice of, and to vote at the Special Meeting.
As a variable contract owner of record at the close of business on
February 13, 1998, you have the right to instruct your insurance company how the
shares of the Fund attributable to your variable contract should be voted. To
assist you in giving your instructions, a Voting Instruction Form is enclosed
that reflects the number of shares of the Fund you are entitled to vote.
In addition, a Proxy Statement is attached to this Notice which
describes the matter to be voted on.
By order of the Board of Trustees,
Thomas H. Elwood,
Secretary
June 3, 1998
---
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WHETHER YOU EXPECT TO ATTEND THE SPECIAL MEETING OR NOT,
PLEASE COMPLETE, DATE AND SIGN THE ENCLOSED VOTING
INSTRUCTION FORM(S) AND RETURN IT PROMPTLY
IN THE ENCLOSED ENVELOPE.
-----------------------------------------------------------
<PAGE>
VAN ECK WORLDWIDE INSURANCE TRUST
99 Park Avenue, New York, New York 10016
(212) 687-5200 . Toll Free (800) 826-2333
___________________________________________________
PROXY STATEMENT
Special Meeting of Shareholders
Monday, June 29, 1998
___________________________________________________
This Proxy Statement is furnished to shareholders of Worldwide Balanced
Fund (the "Fund"), a series of Van Eck Worldwide Insurance Trust (the "Trust")
in connection with the solicitation by the Trust's Board of Trustees of proxies
to be used at a Special Meeting of Shareholders of the Fund (the "Special
Meeting") to be held at the offices of the Trust, 99 Park Avenue, 8th floor, New
York, New York on Monday, June 29, 1998 at 4 o'clock p.m., New York Time,
for the purposes set forth in the accompanying Notice of Special Meeting of
Shareholders. The enclosed Voting Instruction Form can be revoked by notice in
writing to the Trust at any time before it is exercised or by voting in person
at the Special Meeting. The cost of soliciting proxies will be borne by Van Eck
Associates Corporation (the "Adviser") and/or the participating insurance
companies, as the case may be. In addition to solicitation by mail, officers of
the Trust and employees of the Adviser or the participating insurance companies,
without extra remuneration, may conduct additional solicitation by telephone,
telegraph and personal interview. This proxy soliciting material is being mailed
to shareholders on or about June 8, 1998.
The Fund serves as a funding medium for the variable annuity accounts and
variable life contracts of three insurance companies: AIG Life Insurance Company
and American International Life Assurance Company of New York (together," AIG
Life Companies"), IL Annuity and Insurance Company, and Security Life of Denver
(each an "Insurance Company"). The Insurance Companies are entitled to vote as
shareholders and provide pass-through voting rights to their variable
contractholders on any proposal affecting the Fund. The variable contracts are
described in the separate account prospectuses issued by the Insurance
Companies. Under certain circumstances, each Insurance Company has the right to
disregard the voting instructions of its variable contractholders. However, the
Trust's Board of Trustees does not believe that these circumstances exist with
respect to the matter to be considered at the Special Meeting.
Each Voting Instruction Form received will be voted by the Insurance Company in
accordance with the contractholder's timely instructions with respect to the
proposal set forth in the accompanying Notice of Special Meeting. If a Voting
Instruction Form is received that does not specify a choice, the Form will be
voted FOR the proposal. For shares as to which no Voting Instruction Forms have
been received from contractholders, the Insurance Company will vote the shares
in the same proportion as the shares for which voting instructions have been
received.
The contractholders permitted to give instructions to the Insurance Companies
and the number of shares for which instructions may be given will be determined
as of February 13, 1998, the record date for the Special Meeting.
As of February 13, 1998, there were outstanding 284,300,350 shares of
beneficial interest of the Fund. Each full share is entitled to one full vote
and each fractional share is entitled to a proportionate share of one vote. As
of such date, the following persons were known to the Trust to own of record or
beneficially more than 5% of the outstanding shares of the Fund:
Security Life of Denver 98,151.380 shares
1290 Broadway, Suite 1600 or 34.52%
Denver, CO 80203-5699
IL Annuity and Insurance Co. 94,406.442 shares
2960 North Meridian or 33.21%
Indianapolis, IN 46206
AIG Life Companies 91,217.895 shares
One Alico Plaza or 32.09%
P.O. Box 667
Wilmington, DE 19899
1
<PAGE>
In addition, as of February 13, 1998, the Adviser owned of record or
beneficially 524.633 shares or 0.18% of the outstanding shares of the Fund. The
Adviser has indicated that it intends to vote the shares it owns beneficially,
in favor of the Plan. There were no other persons or groups who were known by
the Trust to own shares of the Fund as of the record date.
In the event there are not sufficient votes to approve the proposal at the
time of the Special Meeting, the Special Meeting may be adjourned in order to
permit further solicitations of proxies by the Trust. If the Trust proposes to
adjourn the Special Meeting by a vote of the shareholders, the persons named in
the enclosed Voting Instruction Form will vote all shares for which they have
voting authority in favor of such adjournment.
The Fund's annual report for the year ended December 31, 1997 has been provided
to shareholders. Additional copies of the reports will be provided free of
charge by calling the number or writing to the address on the Notice of Meeting
accompanying this Proxy Statement.
APPROVAL OF THE PLAN
The Fund, which began operations on December 23, 1994, seeks long-term capital
appreciation together with current income by investing in the U.S. and other
countries throughout the world, and by allocating its assets among equity
securities, fixed-income securities and short-term instruments. As the variable
insurance industry has grown, it has become clear, however, that a balanced fund
does not fit well into the allocation model of the insurance company industry.
As a result, Worldwide Balanced Fund has not been attractive to many insurance
companies and has not garnered significant assets.
Because of the small size of the Fund's assets and shareholder base, the Fund's
gross expense ratios have been high, and the Adviser has been voluntarily
assuming all of the Fund's expenses. Expenses assumed by the Adviser were
$74,102 in 1997. The Adviser cannot reasonably be expected to subsidize the
operations of the Fund indefinitely, and without continued subsidization of the
Fund by the Adviser, the Fund's expense ratio would exceed that of many other
funds with similar investment objectives. This would have an adverse impact on
the Fund's performance. As a result, the Fund's current asset base could
decline, which would further increase the Fund's expense ratio as fixed costs
would be spread over a shrinking asset base.
The Adviser has indicated to the Board of Trustees that it was not prepared to
continue expense reimbursement indefinitely. The Fund's distributor has
also indicated that because of the nature of the variable insurance industry,
there is no reasonable prospect of substantially increasing assets through
increased sales efforts. Faced with a potentially high expense ratio, in an
environment where sales trends are unlikely to reverse themselves in the
foreseeable future, on December 10, 1997 the Board of Trustees, including a
majority of the Trustees who are not "interested persons," as defined in the
Investment Company Act of 1940 (the "Act"), considered and unanimously voted to
approve the Plan. In reaching its decision, the Board of Trustees considered the
size of the Fund, the continuing high level of expenses of the Fund and the
adverse impact a discontinuance of the Adviser's subsidization of such expenses
would have on the Fund and its shareholders, and determined that a liquidation,
rather than a merger or other business combination, would be in shareholders'
best interests.
Description of the Plan
Pursuant to the Plan, as soon as practicable following shareholder
approval, which is currently expected to occur on or about June 29, 1998 (the
"Distribution Date"), the Fund will redeem the shares held in the Worldwide
Balanced Fund, satisfy the Fund's known obligations and distribute the
Liquidation Value (as hereafter defined) to shareholders. Promptly thereafter,
the officers of the Trust will take all necessary and appropriate action to
effect a complete statutory dissolution of the Fund. The Fund anticipates the
Liquidation Value will be paid in cash. A copy of the Plan is attached as
Exhibit A.
2
<PAGE>
Fund assets will be sold in an orderly manner and, after payment of
expenses, the remaining cash and other assets will be distributed to
shareholders as soon as practicable. The Adviser has agreed to absorb (1) all
expenses of the Fund associated with effecting the transactions contemplated by
the Plan except the costs involved in disposing of the Fund's portfolio
securities and any extraordinary expenses, and (2) unamortized organizational
expenses of the Fund outstanding on the Distribution Date. The Fund will bear
the costs involved in disposing of the Fund's portfolio securities and any
extraordinary expenses.
Each share of the Fund will entitle the holder to receive cash or other
assets equal to the Liquidation Value per share of the Fund. The Liquidation
Value will be determined in the same manner as the Fund's net asset value is
determined on a daily basis. "Liquidation Value" means, as of the Distribution
Date, the aggregate value of all assets of the Fund, less the sum of the
aggregate amount of all liabilities of the Fund, divided by the total number of
issued and outstanding shares of the Fund.
Shareholders may redeem their shares at net asset value on any business day
prior to the Distribution Date. Shares may be transferred to another fund
provided by the Insurance Company, as explained in the Insurance Company's
accompanying letter. No shareholder will have any dissenter's rights or right of
appraisal with the liquidation and dissolution of the Fund.
Required Vote
Approval of the Plan is to be determined by the vote of a majority of the
outstanding shares of the Fund which means an affirmative vote of the lesser of
(1) a majority of the outstanding shares of the Fund, or (2) 67% or more of the
shares of the Fund represented at the Special Meeting if more than 50% of the
outstanding shares of the Fund are present or represented by proxy.
The Board of Trustees recommends a vote FOR this Proposal.
OTHER MATTERS TO COME BEFORE THE MEETING
The Trustees do not intend to present any other business at the Special Meeting,
nor are they aware that any shareholder intends to do so. If, however, any
other matters are properly brought before the Special Meeting, the persons named
in the accompanying Voting Instruction Form will vote thereon in accordance with
their judgment.
ADDITIONAL INFORMATION
The Trust is organized as a Massachusetts business trust and as such is not
required to hold regular or annual meetings of shareholders unless otherwise
required by the Act or as may be required by its Master Trust Agreement.
Shareholders representing ten percent or more of the outstanding shares of the
Trust have the right to compel the Trustees to call a meeting of shareholders to
consider the removal of any Trustee or Trustees.
WHETHER OR NOT YOU PLAN TO ATTEND, IT WOULD BE APPRECIATED IF YOU WOULD FILL IN,
DATE AND SIGN THE ENCLOSED VOTING INSTRUCTION FORM(S) AND RETURN IT PROMPTLY IN
THE ENCLOSED ENVELOPE. NO POSTAGE IS NECESSARY IF IT IS MAILED IN THE
CONTINENTAL UNITED STATES.
3
<PAGE>
EXHIBIT A
---------
PLAN OF LIQUIDATION AND DISSOLUTION
PLAN OF LIQUIDATION AND DISSOLUTION dated as of December 10, 1997 adopted by Van
Eck Worldwide Insurance Trust, a Massachusetts business trust (the "Trust"), on
behalf of the Worldwide Balanced Fund, a series of the Trust (the "Fund").
W I T N E S S E T H:
-------------------
WHEREAS, the Trust is an open-end management investment company registered
under the Investment Company Act of 1940, as amended (the "1940 Act");
WHEREAS, this Plan is intended to be and is adopted as a plan of complete
liquidation and dissolution, pursuant to which all of the assets of the Fund
shall be liquidated at such prices and on such terms and conditions as the
officers of the Trust, in consultation with the Fund's investment adviser, shall
determine to be reasonable and in the best interests of the Fund and its
shareholders, all as hereinafter set forth in this Plan; and
WHEREAS, the Trustees of the Trust, including a majority of the Trustees who are
not interested persons, have determined that the liquidation and dissolution of
the Fund as contemplated by this Plan is in the best interests of the Fund.
NOW, THEREFORE, the Trustees hereby declare the following Plan:
1. Authorization of Trustees and Officers. The Board of Trustees and officers
--------------------------------------
of the Trust are hereby authorized and directed to wind up the affairs of the
Fund, subject to the requirements of Section 9 of this Plan.
2. Liquidation of Assets. The assets of the Fund shall be liquidated at such
---------------------
prices and on such terms and conditions as the officers of the Trust, in
consultation with the Fund's investment adviser, shall determine to be
reasonable and in the best interests of the Fund and its shareholders.
3. Investments Pending Liquidation. To the extent feasible, the Fund shall
-------------------------------
take a defensive position pending liquidation with a view to facilitating an
orderly liquidation of the Fund's portfolio.
4. Expenses. Van Eck Associates Corporation will bear all expenses of the Fund
--------
associated with effecting the transactions contemplated by this Plan except the
costs involved in disposing of the Fund's portfolio securities and any
extraordinary expenses. Van Eck Associates Corporation will also bear
unamortized organizational expenses of the Fund outstanding on the Distribution
Date.
5. Liquidation. Subject to the requirements of Section 9 of this Plan, as soon
-----------
as practicable after the consummation of the sale or distribution of the Fund's
portfolio securities and the payment of all the Fund's known liabilities and
obligations, the officers of the Trust shall determine the Liquidation Value (as
such term is hereinafter defined) of the Fund's shares (the date of such
determination shall be referred to herein as the "Distribution Date"). The
Liquidation Value shall be determined in the same manner as the Fund's net asset
value is determined on a daily basis. Accordingly, the term "Liquidation Value"
means, as of the Distribution Date, (i) the aggregate value of all of the assets
of the Fund, less (ii) the sum of the aggregate amount of all of the liabilities
of the Fund, divided by (iii) the total number of issued and outstanding shares
of the Fund. The Board of Trustees may, if appropriate, authorize the
establishment of a reserve to meet any contingent liabilities of the Fund, which
amount, if any, shall be deducted pro rata from the Liquidation Value.
6. Liquidating Fund. In the event the Fund is unable to distribute all its
----------------
assets pursuant to the Plan because of its inability to locate shareholders to
whom Liquidation Distributions will be sent, the Fund may
create, at the expense of such shareholders, a liquidating fund with a financial
institution and deposit therein any remaining assets of the Fund for the benefit
of the shareholders that cannot be located.
A-1
<PAGE>
7. Dissolution. As soon as practicable after the distribution of all of the
-----------
Fund's assets in complete liquidation, the officers of the Trust will close the
books of the Fund and prepare and file, in a timely manner, any and all required
income tax returns and other documents and instruments and file or cause to be
filed, with the Secretary of the Commonwealth of Massachusetts and any other
appropriate governmental authorities, any and all documents and instruments
necessary to effect a complete statutory dissolution of the Fund. As soon as
practicable after the complete statutory dissolution of the Fund, the officers
of the Trust will file or cause to be filed with the Securities and Exchange
Commission and any state in which the Fund's shares were sold, any and all
documents and instruments necessary to terminate the registration of the Fund
and its business and affairs by the Securities and Exchange Commission and any
such state. Thereafter, the Fund will cease to exist and no shareholder will
have any interest whatsoever in the Fund.
8. Dissenters' Rights. No shareholder shall have any dissenters' right or
------------------
right of appraisal in connection with the liquidation and dissolution of the
Fund.
9. Shareholder Approval. Approval of this Plan is to be determined by the vote
--------------------
of a majority of the outstanding shares of the Fund, which means an affirmative
vote of the lesser of (i) a majority of the outstanding shares of the Fund, or
(2) 67% or more of the shares of the Fund represented at this meeting if more
than 50% of the outstanding shares of the Fund are present or represented by
proxy.
IN WITNESS WHEREOF, the Trustees have caused this Plan to be executed on
behalf of the Fund as of the date first set forth above by their duly authorized
representatives.
VAN ECK WORLDWIDE INSURANCE TRUST,
on behalf of its Worldwide Balanced Fund
Attest:
/s/ Thaddeus Leszczynski /s/ John C. van Eck
- ------------------------------ ---------------------------------------
Thaddeus Leszczynski, Secretary John C. van Eck, President
The undersigned hereby accept its obligation to pay expenses pursuant to
Section 4 hereof.
VAN ECK ASSOCIATES CORPORATION
Attest:
/s/ Thaddeus Leszczynski /s/ Philip D. DeFeo
- ------------------------------------ ---------------------------------------
Thaddeus Leszczynski, Secretary Philip D. DeFeo, President
A-2
<PAGE>
Voting Instruction Form
Voting Instruction Card
VAN ECK WORLDWIDE INSURANCE TRUST
WORLDWIDE BALANCED FUND
PROXY FOR SPECIAL MEETING OF SHAREHOLDERS
TO BE HELD JUNE 29, 1998
The undersigned shareholder of WORLDWIDE BALANCED FUND (the "Fund"), a series of
Van Eck Worldwide Insurance Trust (the "Trust"), having received Notice of the
Special Meeting of Shareholders of the Fund to be held on Monday, June 29,
1998 and the Proxy Statement accompanying such Notice, hereby constitutes and
appoints Barbara Allen and Susan Grant and each of them, true and lawful
attorneys or attorney for the undersigned, with several powers of substitution,
for and in the name, place and stead of the undersigned, to attend and vote all
shares of the Fund which the undersigned would be entitled to vote at the
Meeting to be held at 99 Park Avenue, 8th Floor, New York, on Monday, June 29,
1998, at 4:00 p.m., New York Time, and at any and all adjournments thereof,
with all powers the undersigned would possess if personally present.
Dated: _____________________, 1998
________________________________
Signature of Shareholder
________________________________
Signature of Co-Owner
For joint accounts, all co-owners must
sign.Executors, administrators, trustees,
etc. should so indicate when signing.
THE BOARD OF TRUSTEES RECOMMENDS A VOTE FOR THE PROPOSAL.
---
THE SHARES REPRESENTED HEREBY WILL BE VOTED AS INDICATED BELOW
OR FOR THE PROPOSAL IF NO CHOICE IS INDICATED.
---
PROPOSAL
--------
To approve a Plan of Liquidation and Dissolution pursuant to which the Fund's
assets will be liquidated, known liabilities satisfied and remaining proceeds
distributed to shareholders.
FOR _________ AGAINST _________ ABSTAIN _________
-----------------------
VOTING INSTRUCTION FORM
-----------------------
Please mark your proxy, date and sign it and return it promptly in the
accompanying envelope which requires no postage if mailed in the United States.
<PAGE>
June 1998
Dear Contract owner:
I would like to take this opportunity to inform you of the proposed closing
of the Van Eck Worldwide Balanced Fund (the "Balanced Fund") and to request your
voting instructions on this matter. As the owner of a FirstLine/Strategic
Advantage variable life policy or Exchequer variable annuity contract issued by
Security Life of Denver Insurance Company ("SLD") who has invested in the Van
Eck Worldwide Balanced Fund (the "Balanced Fund"), you are entitled to provide
us with your voting instructions.
Recently the Board of Trustees of the Van Eck Worldwide Insurance Trust
voted to recommend the liquidation of the Balanced Fund because it has not
generated substantial contract owner interest since its inception. The Balanced
Fund is a relatively small investment portfolio when compared with other
investment portfolios with similar investment objectives. As a result, the
annual expense ratios for the Balanced Fund, without any expense reimbursement,
have been higher than the ratios of most similar, but larger, portfolios, and
the Balanced Fund does not have the investment flexibility that larger funds
have. In addition, Van Eck Associates Corporation, the investment adviser to
the Balanced Fund, has advised SLD that its current voluntary absorption of all
expenses for the Balanced Fund will not be continued much longer. This could
have the effect of significantly reducing assets and decreasing performance for
the Balanced Fund.
In order to liquidate the Balanced Fund, the Trust must obtain the consent
of its shareholders. Currently the Fund's shareholders are three insurance
companies, including SLD, whose variable contract owners are invested in the
Balanced Fund. Each insurance company must give its variable contract owners of
record as of the close of business on February 13, 1998, the right to instruct
the insurance company as to the manner in which shares of the Balanced Fund
attributable to the owner's variable contract should be voted. If approved by
shareholders, the liquidation is expected to occur on or about June 29, 1998.
To assist you in giving us your instructions, a Voting Instruction Form is
enclosed that reflects the number of shares of the Balanced Fund for which you
are entitled to give us voting instructions. In addition, a NOTICE OF SPECIAL
SHAREHOLDER MEETING AND A PROXY STATEMENT are enclosed which describe the
matters to be voted on at the Special Shareholder Meeting.
If you have not transferred your contract value out of the Balanced Fund by
the date of the liquidation, your contract value invested in shares of the
Balanced Fund will be automatically transferred to the variable account that
invests in the Fidelity Money Market
<PAGE>
June 1998
Page 2
Portfolio. From the date of this letter until 30 days after the date of the
liquidation, you will be permitted to make one free transfer of all contract
value that you have invested in the Van Eck Worldwide Balanced Fund to other
Variable investment funds available under your contract. That transfer will not
count as one of the limited number of free transfers permitted each contract
year. The transfer will not affect the amount of Eligible Premium Payments on
which your Living Benefit for the Balanced Fund has been based. Those Eligible
Premium Payments will be transferred along with your contract value from the Van
Eck Worldwide Balanced Variable Account to the Variable Account of your choice.
In addition, SLD will not exercise any rights it has reserved to impose
additional restrictions on transfers until at least 30 days after the proposed
liquidation.
As stated above, if you have not transferred your contract value out of the
Balanced Fund by the date of the liquidation, your contract value invested in
shares of the Balanced Fund will be automatically transferred to the variable
account that invests in the Fidelity Money Market Portfolio. Even after the 30
day period described above, you may still transfer your contract value invested
in shares of Fidelity Money Market Portfolio to other Variable investment funds
available under your contract, subject to the conditions contained in the
contract Prospectus.
In addition, you have the one time ability to surrender those amounts
automatically transferred to the variable account that invests in Fidelity Money
Market Portfolio without payment of any associated surrender charge if the
surrender is made within 30 days after the liquidation. However, there may be
tax consequences associated with such surrender.
YOUR VOTE IS IMPORTANT. Please read the enclosed proxy materials and
complete, date and sign the enclosed voting instruction forms. It is also
important that you consider using your free transfer right to TRANSFER YOUR
CONTRACT VALUE out of the Van Eck Worldwide Balanced Variable Account prior to
June 29, 1998.
If you have any questions regarding this matter and you are the owner of an
Exchequer Contract, please call 1-800-933-5858. Owners of a FirstLine or
Strategic Advantage Contract may call 1-800-848-6362 for assistance. We look
forward to assisting you in your insurance and investment needs in 1998 and
beyond.
Sincerely,
Carol D. Hard
Sr. Vice President
<PAGE>
June 1998
Dear Contract owner:
I would like to take this opportunity to inform you of the proposed closing
of the Van Eck Worldwide Balanced Fund (the "Balanced Fund") and to request your
voting instructions on this matter. As the owner of a Visionary and/or
Visionary Choice variable annuity contract issued by IL Annuity and Insurance
Company ("IL Annuity") who has invested in the Van Eck Worldwide Balanced Fund
(the "Balanced Fund"), you are entitled to provide us with your voting
instructions.
Recently the Board of Trustees of the Van Eck Worldwide Insurance Trust
voted to recommend the liquidation of the Balanced Fund because it has not
generated substantial contract owner interest since its inception. The Balanced
Fund is a relatively small investment portfolio when compared with other
investment portfolios with similar investment objectives. As a result, the
annual expense ratios for the Balanced Fund, without any expense reimbursement,
have been higher than the ratios of most similar, but larger, portfolios, and
the Balanced Fund does not have the investment flexibility that larger funds
have. In addition, Van Eck Associates Corporation, the investment adviser to
the Balanced Fund, has advised IL Annuity that its current voluntary absorption
of all expenses for the Balanced Fund will not be continued much longer. This
could have the effect of significantly reducing assets and decreasing
performance for the Balanced Fund.
In order to liquidate the Balanced Fund, the Trust must obtain the consent
of its shareholders. Currently the Fund's shareholders are three insurance
companies, including IL Annuity, whose variable contract owners are invested in
the Balanced Fund. Each insurance company must give its variable contract
owners of record as of the close of business on February 13, 1998 the right to
instruct the insurance company as to the manner in which shares of the Balanced
Fund attributable to the owner's variable contract should be voted. If approved
by shareholders, the liquidation is expected to occur on or about June 29, 1998.
To assist you in giving us your instructions, a Voting Instruction Form is
enclosed that reflects the number of shares of the Balanced Fund for which you
are entitled to give us voting instructions. In addition, a NOTICE OF SPECIAL
SHAREHOLDER MEETING AND A PROXY STATEMENT are enclosed which describe the
matters to be voted on at the Special Shareholder Meeting.
In connection with the proposed liquidation of the Balanced Fund, IL
Annuity has closed the Variable Account that invests in the Van Eck Worldwide
Balanced Fund on March 16, 1998 to all transfers and new premium payments.
Effective March 16, 1998, contract owners are not permitted to allocate new
premium payments, or transfer contract value, to the Van Eck Worldwide Balanced
Variable Account.
<PAGE>
June 1998
Page 2
From the date of this letter until 30 days after the date of the
liquidation, you will be permitted to make one free transfer of all contract
value that you have invested in the Van Eck Worldwide Balanced Variable Account
to one other Variable Account available under your contract. That transfer will
---
not count as one of the limited number of free transfers permitted each contract
year. And the transfer will not affect the amount of Eligible Premium Payments
on which your Living Benefit for the Balanced Fund has been based. Those
Eligible Premium Payments will be transferred along with your contract value
from the Van Eck Worldwide Balanced Variable Account to the Variable Account of
your choice. In addition, IL Annuity will not exercise any rights it has
reserved to impose additional restrictions on transfers until at least 30 days
after the proposed liquidation.
If you have not transferred your contract value out of the Balanced Fund by
the date of the liquidation, your contract value invested in shares of the
Balanced Fund will be automatically transferred to the variable account that
invests in the Money Market Portfolio of the Fidelity Variable Insurance
Products Fund. Even after the 30 day period discussed above, you may still
transfer your contract value invested in the Fidelity Money Market Portfolio to
other Variable Accounts available under your contract, subject to the conditions
contained in the contract Prospectus. In addition, you have the one time
ability to surrender those amounts automatically transferred to the variable
account that invests in the Fidelity Money Market Portfolio without payment of
any associated surrender charge if the surrender is made within 30 days after
the liquidation. However, there may be tax consequences associated with such
surrender.
YOUR VOTE IS IMPORTANT. Please read the enclosed proxy materials and
complete, date and sign the enclosed voting instruction forms. And it is also
important that you consider using your free transfer right to TRANSFER YOUR
CONTRACT VALUE out of the Van Eck Worldwide Balanced Variable Account prior to
June 29, 1998.
If you have any questions regarding this matter and you are the owner of a
Visionary Contract, please call 1-800-388-1331. Owners of a Visionary Choice
Contract may call 1-888-232-6486 for assistance. We look forward to assisting
you in your insurance and investment needs in 1998 and beyond.
Sincerely,
Gregory J. Carney
President and Chief Executive Officer
<PAGE>
AIG LIFE COMPANIES LETTERHEAD
June 12, 1998
Name
Address
Address
Address
Dear Contract Owner:
I would like to take this opportunity to inform you of the proposed closing of
the Van Eck Worldwide Balanced Fund (the "Balanced Fund") and to request your
voting instructions on this matter. As the owner of a Variable Annuity contract
issued by American International Life Assurance Company of New York ("AI Life")
who has invested in the Van Eck Worldwide Balanced Fund ("the Balanced Fund"),
you are entitled to provide us with your voting instructions.
Recently the Board of Trustees of the Van Eck Worldwide Insurance Trust voted
to recommend the liquidation of the Balanced Fund because it has not generated
substantial contract owner interest since its inception. The Balanced Fund is a
relatively small investment portfolio when compared with other investment
portfolios with similar investment objectives. As a result, the annual expense
ratios for the Balanced Fund, without any expense reimbursement, have been
higher than the ratios of most similar, but larger, portfolios. The Balanced
Fund does not have the portfolio management flexibility that is associated with
a larger portfolio. In addition, Van Eck Associates Corporation, the investment
advisor to the Balanced Fund, has advised AI Life that its current voluntary
absorption of all expenses for the Balanced Fund will not be continued much
longer. This could have the effect of significantly reducing assets and
decreasing performance for the Balanced Fund.
In order to liquidate the Balanced Fund, the Trust must obtain the consent of
its shareholders. Currently the Fund's shareholders consist of four insurance
companies, including AI Life, whose variable contract owners are invested in the
Balanced Fund. Each insurance company must give its variable contract owners of
record as of the close of business on February 13, 1998 the right to instruct
the insurance company as to the manner in which shares of the Balanced Fund
attributable to the owner's variable contract should be voted. If approved by
shareholders, the liquidation is expected to occur on or about June 30, 1998.
To assist you in giving us your instructions, a VOTING INSTRUCTION FORM is
enclosed that reflects the number of shares of the Balanced Fund for which you
are entitled to give voting instructions. In addition, a NOTICE OF SPECIAL
SHAREHOLDER MEETING AND PROXY STATEMENT are attached which describe the matters
to be voted on at the Special Shareholder Meeting.
From the date of this letter until 30 days after the date of the liquidation,
you will be permitted to make one free transfer of all contract value that you
have invested in the Van Eck Worldwide Balanced Portfolio to one other portfolio
---
available under your contract. That transfer will not count as one of the
limited number of free transfers permitted each contract year. In addition, AI
Life will not exercise any rights it has reserved to impose additional
restrictions on transfers until at least 30
<PAGE>
days after the proposed liquidation. After the 30 day period you will return to
the transfer rights generally available under your contract.
In addition, you have the one time ability to surrender those amounts
automatically tranferred to the variable account that invests in the Money
Market Portfolio without payment of any associated surrender charge if the
surrender is made within 30 days after the liquidation. However, there may be
tax consequences associated with such surrender.
IF YOU HAVE NOT TRANSFERRED YOUR CONTRACT VALUE OUT OF THE WORLDWIDE BALANCED
PORTFOLIO BY THE DATE OF THE LIQUIDATION, YOUR CONTRACT VALUE INVESTED IN SHARES
OF THE WORLDWIDE BALANCED PORTFOLIO WILL BE AUTOMATICALLY TRANSFERRED TO THE
MONEY MARKET PORTFOLIO.
YOUR VOTE IS IMPORTANT. Please read the enclosed proxy materials and complete,
date, and sign the enclosed voting instruction forms. And it is also important
that you consider using your free transfer right to TRANSFER YOUR FUND VALUE out
of the Van Eck Worldwide Balanced Portfolio prior to June 30, 1998.
If you have any questions regarding this matter please contact our Customer
Service Department at 1-800-255-8402. We look forward to assisting you in your
insurance and investment needs.
Sincerely,
Linda A. Wagner
Director of Variable Products
<PAGE>
AIG LIFE COMPANIES LETTERHEAD
June 12, 1998
Name
Address
Address
Address
Dear Contract Owner:
We would like to take this opportunity to inform you of the proposed closing of
the Van Eck Worldwide Balanced Fund (the "Balanced Fund") and to request your
voting instructions on this matter. As the owner of a Variable Annuity contract
issued by AIG Life Insurance Company ("AIG Life") who has invested in the Van
Eck Worldwide Balanced Fund ("the Balanced Fund"), you are entitled to provide
us with your voting instructions.
Recently the Board of Trustees of the Van Eck Worldwide Insurance Trust voted
to recommend the liquidation of the Balanced Fund because it has not generated
substantial contract owner interest since its inception. The Balanced Fund is a
relatively small investment portfolio when compared with other investment
portfolios with similar investment objectives. As a result, the annual expense
ratios for the Balanced Fund, without any expense reimbursement, have been
higher than the ratios of most similar, but larger, portfolios. The Balanced
Fund does not have the portfolio management flexibility that is associated with
a larger portfolio. In addition, Van Eck Associates Corporation, the investment
advisor to the Balanced Fund, has advised AIG Life that its current voluntary
absorption of all expenses for the Balanced Fund will not be continued much
longer. This could have the effect of significantly reducing assets and
decreasing performance for the Balanced Fund.
In order to liquidate the Balanced Fund, the Trust must obtain the consent of
its shareholders. Currently the Fund's shareholders consist of four insurance
companies, including AIG Life, whose variable contract owners are invested in
the Balanced Fund. Each insurance company must give its variable contract
owners of record as of the close of business on February 13, 1998 the right to
instruct the insurance company as to the manner in which shares of the Balanced
Fund attributable to the owner's variable contract should be voted. If approved
by shareholders, the liquidation is expected to occur on or about June 30, 1998.
To assist you in giving us your instructions, a VOTING INSTRUCTION FORM is
enclosed that reflects the number of shares of the Balanced Fund for which you
are entitled to give voting instructions. In addition, a NOTICE OF SPECIAL
SHAREHOLDER MEETING AND PROXY STATEMENT are enclosed which describe the matters
to be voted on at the Special Shareholder Meeting.
From the date of this letter until 30 days after the date of the liquidation,
you will be permitted to make one free transfer of all contract value that you
have invested in the Van Eck Worldwide Balanced Portfolio to one other portfolio
---
available under your contract. That transfer will not count as one of the
limited number of free transfers permitted each contract year. In addition, AIG
Life
<PAGE>
will not exercise any rights it has reserved to impose additional restrictions
on transfers until at least 30 days after the proposed liquidation.
After the 30 day period you will return to the transfer rights generally
available under your contract.
In addition, you have the one time ability to surrender those amounts
automatically tranferred to the variable account that invests in the Money
Market Portfolio without payment of any associated surrender charge if the
surrender is made within 30 days after the liquidation. However, there may be
tax consequences associated with such surrender.
IF YOU HAVE NOT TRANSFERRED YOUR CONTRACT VALUE OUT OF THE WORLDWIDE BALANCED
PORTFOLIO BY THE DATE OF THE LIQUIDATION, YOUR CONTRACT VALUE INVESTED IN SHARES
OF THE WORLDWIDE BALANCED PORTFOLIO WILL BE AUTOMATICALLY TRANSFERRED TO THE
MONEY MARKET PORTFOLIO.
YOUR VOTE IS IMPORTANT. Please read the enclosed proxy materials and complete,
date, and sign the enclosed voting instruction forms. And it is also important
that you consider using your free transfer right to TRANSFER YOUR FUND VALUE out
of the Van Eck Worldwide Balanced Portfolio prior to June 30, 1998.
If you have any questions regarding this matter please contact our Customer
Service Department at 1-800-255-8402. We look forward to assisting you in your
insurance and investment needs.
Sincerely,
Linda A. Wagner
Director of Variable Products
<PAGE>
AIG LIFE COMPANIES LETTERHEAD
June 12, 1998
Name
Address
Address
Address
Dear Contract Owner:
I would like to take this opportunity to inform you of the proposed closing of
the Van Eck Worldwide Balanced Fund (the "Balanced Fund") and to request your
voting instructions on this matter. As the owner of a Variable Life contract
issued by American International Life Assurance Company of New York ("AI Life")
who has invested in the Van Eck Worldwide Balanced Fund ("the Balanced Fund"),
you are entitled to provide us with your voting instructions.
Recently the Board of Trustees of the Van Eck Worldwide Insurance Trust voted
to recommend the liquidation of the Balanced Fund because it has not generated
substantial contract owner interest since its inception. The Balanced Fund is a
relatively small investment portfolio when compared with other investment
portfolios with similar investment objectives. As a result, the annual expense
ratios for the Balanced Fund, without any expense reimbursement, have been
higher than the ratios of most similar, but larger, portfolios. The Balanced
Fund does not have the portfolio management flexibility that is associated with
a larger portfolio. In addition, Van Eck Associates Corporation, the investment
advisor to the Balanced Fund, has advised AI Life that its current voluntary
absorption of all expenses for the Balanced Fund will not be continued much
longer. This could have the effect of significantly reducing assets and
decreasing performance for the Balanced Fund.
In order to liquidate the Balanced Fund, the Trust must obtain the consent of
its shareholders. Currently the Fund's shareholders consist of four insurance
companies, including AI Life, whose variable contract owners are invested in the
Balanced Fund. Each insurance company must give its variable contract owners of
record as of the close of business on February 13, 1998 the right to instruct
the insurance company as to the manner in which shares of the Balanced Fund
attributable to the owner's variable contract should be voted. If approved by
shareholders, the liquidation is expected to occur on or about June 30, 1998.
To assist you in giving us your instructions, a VOTING INSTRUCTION FORM is
enclosed that reflects the number of shares of the Balanced Fund for which you
are entitled to give voting instructions. In addition, a NOTICE OF SPECIAL
SHAREHOLDER MEETING AND PROXY STATEMENT are attached which describe the matters
to be voted on at the Special Shareholder Meeting.
From the date of this letter until 30 days after the date of the liquidation,
you will be permitted to make one free transfer of all contract value that you
have invested in the Van Eck Worldwide Balanced Portfolio to one other portfolio
---
available under your contract. That transfer will not count
<PAGE>
as one of the limited number of free transfers permitted each contract year. In
addition, AI Life will not exercise any rights it has reserved to impose
additional restrictions on transfers until at least 30 days after the proposed
liquidation. After the 30 day period you will return to the transfer rights
generally available under your contract.
In addition, you have the one time ability to surrender those amounts
automatically tranferred to the variable account that invests in the Money
Market Portfolio without payment of any associated surrender charge if the
surrender is made within 30 days after the liquidation. However, there may be
tax consequences associated with such surrender.
IF YOU HAVE NOT TRANSFERRED YOUR CONTRACT VALUE OUT OF THE WORLDWIDE BALANCED
PORTFOLIO BY THE DATE OF THE LIQUIDATION, YOUR CONTRACT VALUE INVESTED IN SHARES
OF THE WORLDWIDE BALANCED PORTFOLIO WILL BE AUTOMATICALLY TRANSFERRED TO THE
MONEY MARKET PORTFOLIO.
YOUR VOTE IS IMPORTANT. Please read the enclosed proxy materials and complete,
date, and sign the enclosed voting instruction forms. And it is also important
that you consider using your free transfer right to TRANSFER YOUR FUND VALUE out
of the Van Eck Worldwide Balanced Portfolio prior to June 30, 1998.
If you have any questions regarding this matter please contact our Customer
Service Department at 1-800-340-2765. We look forward to assisting you in your
insurance and investment needs.
Sincerely,
Linda A. Wagner
Director of Variable Products
<PAGE>
AIG LIFE COMPANIES LETTERHEAD
June 12, 1998
Name
Address
Address
Address
Dear Contract Owner:
I would like to take this opportunity to inform you of the proposed closing of
the Van Eck Worldwide Balanced Fund (the "Balanced Fund") and to request your
voting instructions on this matter. As the owner of a Variable Life contract
issued by AIG Life Insurance Company ("AIG Life") who has invested in the Van
Eck Worldwide Balanced Fund ("the Balanced Fund"), you are entitled to provide
us with your voting instructions.
Recently the Board of Trustees of the Van Eck Worldwide Insurance Trust voted
to recommend the liquidation of the Balanced Fund because it has not generated
substantial contract owner interest since its inception. The Balanced Fund is a
relatively small investment portfolio when compared with other investment
portfolios with similar investment objectives. As a result, the annual expense
ratios for the Balanced Fund, without any expense reimbursement, have been
higher than the ratios of most similar, but larger, portfolios. The Balanced
Fund does not have the portfolio management flexibility that is associated with
a larger portfolio. In addition, Van Eck Associates Corporation, the investment
advisor to the Balanced Fund, has advised AIG Life that its current voluntary
absorption of all expenses for the Balanced Fund will not be continued much
longer. This could have the effect of significantly reducing assets and
decreasing performance for the Balanced Fund.
In order to liquidate the Balanced Fund, the Trust must obtain the consent of
its shareholders. Currently the Fund's shareholders consist of four insurance
companies, including AIG Life, whose variable contract owners are invested in
the Balanced Fund. Each insurance company must give its variable contract
owners of record as of the close of business on February 13, 1998 the right to
instruct the insurance company as to the manner in which shares of the Balanced
Fund attributable to the owner's variable contract should be voted. If approved
by shareholders, the liquidation is expected to occur on or about June 30, 1998.
To assist you in giving us your instructions, a VOTING INSTRUCTION FORM is
enclosed that reflects the number of shares of the Balanced Fund for which you
are entitled to give voting instructions. In addition, a NOTICE OF SPECIAL
SHAREHOLDER MEETING AND PROXY STATEMENT are attached which describe the matters
to be voted on at the Special Shareholder Meeting.
From the date of this letter until 30 days after the date of the liquidation,
you will be permitted to make one free transfer of all contract value that you
have invested in the Van Eck Worldwide Balanced Portfolio to one other portfolio
available under your contract. That transfer will not count as one of the
limited number of free transfers permitted each contract year. In addition, AIG
Life
<PAGE>
will not exercise any rights it has reserved to impose additional restrictions
on transfers until at least 30 days after the proposed liquidation. After the 30
day period you will return to the transfer rights generally available under your
contract
In addition, you have the one time ability to surrender those amounts
automatically tranferred to the variable account that invests in the Money
Market Portfolio without payment of any associated surrender charge if the
surrender is made within 30 days after the liquidation. However, there may be
tax consequences associated with such surrender.
IF YOU HAVE NOT TRANSFERRED YOUR CONTRACT VALUE OUT OF THE WORLDWIDE BALANCED
PORTFOLIO BY THE DATE OF THE LIQUIDATION, YOUR CONTRACT VALUE INVESTED IN SHARES
OF THE WORLDWIDE BALANCED PORTFOLIO WILL BE AUTOMATICALLY TRANSFERRED TO THE
MONEY MARKET PORTFOLIO.
YOUR VOTE IS IMPORTANT. Please read the enclosed proxy materials and complete,
date, and sign the enclosed voting instruction forms. And it is also important
that you consider using your free transfer right to TRANSFER YOUR FUND VALUE out
of the Van Eck Worldwide Balanced Portfolio prior to June 30, 1998.
If you have any questions regarding this matter please contact our Customer
Service Department at 1-800-340-2765. We look forward to assisting you in your
insurance and investment needs.
Sincerely,
Linda A. Wagner
Director of Variable Products
