<PAGE>
Van Eck Worldwide Bond Fund
--------------------------------------
1997 Annual Report
Dear Fellow Shareholder:
In local currency terms, 1997 was a year of strong performances among the
world's fixed income markets outside of Asia, with the UK bond market winning
top honors. In general, markets were buoyed by persistent low inflation,
moderate economic growth, and supportive monetary policies from central banks.
For investors in U.S. dollars, however, the formidable strength of the
greenback managed to wipe out most of these local positive results. For the
year, the benchmark Salomon Smith Barney World Government Bond Index (WGBI)
posted a 9.0% return in local currency terms contrasted to 0.2% in U.S. dollar
terms. By comparison, the Worldwide Bond Fund outperformed the Index with a
return of 2.4%* in U.S. dollar terms.
Bond Market Review
Although supported throughout 1997 by low inflation and a strong U.S. economy,
fixed income markets were affected by two major events this past year.
The first half of the year was dominated by the impact of Europe's steady march
toward European Monetary Union (EMU), slated by the Maastricht treaty to begin
in January 1999. This event has forced a continuing convergence of European
interest rates in anticipation of a single currency, the "euro." In order to
meet core European rates, higher rates in the peripheral riskier European
countries declined steadily, with Italy the region's top performer.
In the second half of 1997, the EMU story was dramatically eclipsed by Asia's
debt and currency crisis which began to unfold in early July. Thailand's
decision to permit its currency (the baht) to float sent shockwaves through
Asia's economies; currencies plunged against the U.S. dollar and stock markets
were decimated. By October, the crisis had gathered enough momentum to batter
both Hong Kong and South Korea and to cause a global sell-off of equities. A
flight-to-quality ensued among bond investors eager to trade high-risk, high-
yielding issues for the relative safety of low-risk, high-quality government
bonds, particularly U.S. Treasury bonds. This helped the bellwether 30-year
U.S. Treasury bond reach record lows by year end. In addition, the U.S. dollar
gained strength as it became the currency-of-choice among beleaguered Asian
investors who were anxious to pay off short-term foreign debt. The dollar was
further helped by the shrinking U.S. federal budget deficit.
In contrast to Asia, the U.S. economy continued its historic expansion, with
the end of 1997 marking the seventh consecutive year of growth and the longest
period of peacetime prosperity since World War II. Despite this robust growth,
inflation fell below 2% by year end, a new low in this economic cycle. This is
due in part to the disinflationary impact of Asia's troubles that has forced
many U.S. companies to keep a lid on prices in order to remain competitive with
less expensive Asian imports. Thus far, this has offset any upward pressure on
inflation coming from what is the highest level of U.S. employment in 24 years.
Although the Federal Reserve did increase rates once in 1997 (by 0.25% in March
on fears of wage inflation), we do not expect the Fed to raise rates any time
in the near future--good news for fixed income markets. In addition, while
yields have fallen in the U.S., real interest rates (nominal rates minus the
inflation rate) remain high and have room to fall.
Fund Review
Reviewing last year's events in terms of your Fund, the strength of the U.S.
bond market benefited the Fund's overweighting (relative to the Salomon Smith
Barney WGBI) in dollar bloc countries, including the U.S., Canada, Australia,
New Zealand and, in particular, the UK. As mentioned in the Fund's semi-annual
report, we increased its weighting in UK bonds from 6% of assets in the
beginning of the year to 14% by June 30; it currently stands at close to 20%.
With the UK's sterling keeping step with the dollar for most of 1997, your Fund
was able to benefit from the UK bond market's stellar 14.8% rise in local
currency terms. In addition, your Fund profited from its holdings in Italy,
Spain, France, Germany and Sweden, which are being sustained by moderate
economic growth and tighter fiscal policy throughout the Continent.
<PAGE>
LOGO
CURRENCY AND DURATION
In 1997, we emphasized the U.S. dollar and maintained exposure to the European
currencies while moving away from Japan's weakening yen. By year end, we had
fully eliminated our yen exposure due to the persistent bleakness of Japan's
fiscal and economic landscape and the country's proximity to Asia's crisis. The
U.S. dollar surged versus most currencies in 1997 and was particularly strong
in the second half due to Asia's meltdown. Therefore, any exposure the Fund had
to foreign currencies in 1997 hampered performance. At December 31, 1997, the
Fund's exposure to the U.S. dollar stood at 60%, and its European exposure at
36%. In addition, we increased the portfolio's duration in the second half of
the year to take advantage of the attractive price appreciation potential of
long-term bonds.
THE OUTLOOK
We are optimistic about the prospects for your Fund in 1998. Bond markets
should continue to benefit from a global environment of low inflation and
slowing economic growth, spurred in part by Asia's ills and a solid U.S.
dollar. The tremendous bond market gains of 1997 are not likely to be repeated
in 1998; rather, we expect that interest rates will remain in a relatively
narrow trading range. In the near term, however, the dampening impact of Asia's
crisis should continue to be felt through midyear, providing a boost for fixed
income markets. We will continue to monitor events closely and to remain
flexible in our positioning of Fund assets in order to reach our goal of
enhancing shareholder value through total return.
We would like to thank you for your investment in the Worldwide Bond Fund and
look forward to helping you meet your investment objectives in the future.
/s/ John C. van Eck /s/ Charles T. Cameron /s/ Gregory F. Krenzer
John C. van Eck Charles T. Cameron Gregory F. Krenzer
Chairman Co-Portfolio Manager Co-Portfolio Manager
January 15, 1998
VAN ECK WORLDWIDE BOND FUND
vs. Salomon Smith Barney
World Gov't Bond Index
LINE GRAPH
<TABLE>
<CAPTION>
Van Eck Worldwide Salomon Smith Barney World
Bond Fund Gov't Bond Index
----------------- --------------------------
<S> <C> <C>
12/89 10070 10495
12/90 11203 11752
12/91 13263 13610
12/92 12566 14363
12/93 13545 16271
12/94 13367 16650
12/95 15680 19820
12/96 16076 20539
12/97 16459 20587
</TABLE>
Past performance is not indicative of future results. Performance data quoted
represents past performance and the investment return and principal value of an
investment will fluctuate so that an investor's shares, when redeemed, may be
worth more or less than the original cost. These returns do not take variable
annuity/life fees and expenses into account.
The graph shows month-end net asset values; however, the net asset value
fluctuates daily.
1. Inception date for the Van Eck Worldwide Bond Fund is 9/1/89.
This graph compares an initial $10,000 investment in the Worldwide Bond Fund
made at its inception with a similar investment in the Salomon Smith Barney
World Government Bond Index.
THE SALOMON SMITH BARNEY WORLD GOVERNMENT BOND INDEX IS AN UNMANAGED INDEX AND
INCLUDES THE REINVESTMENT OF ALL DIVIDENDS, BUT DOES NOT REFLECT THE PAYMENT OF
TRANSACTION COSTS, ADVISORY FEES OR EXPENSES THAT ARE ASSOCIATED WITH AN
INVESTMENT IN THE FUND.
<PAGE>
Worldwide Bond Fund
Schedule of Portfolio Investments December 31, 1997
<TABLE>
<CAPTION>
Bonds and Notes Principal Amount Value (Note 1)
- ---------------------------------------------------------------------------------
<S> <C> <C>
Canada: 4.0%
Canadian Government Bond
8.00% due 6/01/27 CAD 5,000,000 $ 4,483,579
------------
France: 4.6%
French Government Bond
BTNS 5.5% due 10/12/01* FRF 30,500,000 5,211,913
------------
Germany: 6.6%
Bundesrepublik Deutschland Bonds
7.375% due 1/03/05* DEM 7,000,000 4,380,634
6.00% due 1/04/07* 5,300,000 3,079,393
------------
7,460,027
------------
Ireland: 2.0%
Irish Government Bond
8.00% due 8/18/06 IEP 1,350,000 2,247,361
------------
Italy: 1.9%
Italian Government Bond
7.50% due 10/01/99 ITL 3,600,000,000 2,124,123
------------
New Zealand: 5.5%
New Zealand Government Bonds
10.00% due 3/15/02 NZD 6,700,000 4,265,046
8.00% due 11/15/06 3,000,000 1,854,255
------------
6,119,301
------------
Spain: 0.8%
Spanish Government Bond
7.40% due 7/30/99 ESP 135,000,000 923,057
------------
Sweden: 5.1%
Swedish Government Bonds
10.25% due 5/05/03 SEK 14,000,000 2,127,216
6.00% due 2/09/05 28,000,000 3,560,995
------------
5,688,211
------------
United Kingdom: 19.7%
Great Britain Government Bonds
7.50% due 12/07/06 GBP 6,800,000 12,078,932
7.75% due 9/08/06 2,000,000 3,593,865
8.00% due 6/07/21 1,500,000 3,006,981
JP Morgan
7.75% due 12/30/03 2,000,000 3,429,376
------------
22,109,154
------------
United States: 45.4%
U.S. Treasury Notes
7.125% due 9/30/99* USD 6,700,000 6,861,222
6.50% due 8/15/05* 5,600,000 5,845,006
6.25% due 2/15/07* 6,500,000 6,711,256
6.00% due 8/15/00 11,250,000 11,334,386
5.875% due 9/30/02 5,000,000 5,031,255
5.50% due 11/15/98* 7,400,000 7,390,757
U.S. Treasury Bonds
6.75% due 8/15/26* 4,000,000 4,405,004
6.625% due 2/15/27 3,250,000 3,528,285
------------
51,107,171
------------
Total Bonds and Notes: 95.6% (Cost: $107,038,183) 107,473,897
------------
<CAPTION>
Short-Term Obligations
- ---------------------------------------------------------------------------------
<S> <C> <C>
United States: 2.6%
G.E. Capital Commercial Paper Interest Yield
5.65% due 1/02/98 USD 925,000 924,855
U.S. Treasury Bill
Interest Yield 5.15% due 1/22/98 2,000,000 1,993,992
------------
Total Short-Term Obligations: 2.6% (Amortized Cost:
$2,918,847) 2,918,847
------------
Total Investments: 98.2% (Cost: $109,957,030) 110,392,744
Other assets less liabilities: 1.8% 2,067,912
------------
Net Assets: 100% $112,460,656
============
</TABLE>
- -------
* These securities are segregated for forward currency contracts.
See Notes to Financial Statements.
<PAGE>
Worldwide Bond Fund Financial Statements
- --------------------------------------------------------------------------------
Statement of Assets and Liabilities
December 31, 1997
<TABLE>
<S> <C>
Assets:
Investments at value (identified cost, $109,957,030) (Note 1)..... $110,392,744
Receivables:
Interest......................................................... 2,894,104
Capital shares sold.............................................. 271,581
Unrealized appreciation on forward currency contracts (Note 4).... 137,339
------------
Total assets.................................................... 113,695,768
------------
Liabilities:
Payables:
Due to custodian................................................. 783,292
Capital shares redeemed.......................................... 62,756
Unrealized depreciation on forward currency contracts (Note 4).... 337,156
Accounts payable.................................................. 51,908
------------
Total liabilities............................................... 1,235,112
------------
Net Assets........................................................ $112,460,656
============
Shares Outstanding................................................ 10,228,591
============
Net asset value, redemption price and offering price per share
($112,460,656/10,228,591)........................................ $10.99
======
Net assets consist of:
Aggregate paid in capital........................................ $113,224,049
Unrealized appreciation of investments, forward contracts and
foreign currency................................................ 198,649
Undistributed net investment income.............................. 723,165
Accumulated realized loss........................................ (1,685,207)
------------
$112,460,656
============
</TABLE>
See Notes to Financial Statements.
<PAGE>
Worldwide Bond Fund Financial Statements
- --------------------------------------------------------------------------------
Statement of Operations
<TABLE>
<CAPTION>
Year Ended
December 31, 1997
----------------------
<S> <C> <C>
Interest Income (Note 1).............................. $ 6,066,724
Expenses:
Management (Note 2)................................... $1,117,119
Professional fees..................................... 41,157
Custody............................................... 31,365
Reports to shareholders............................... 20,724
Trustees.............................................. 19,978
Miscellaneous......................................... 17,575
----------
Total expenses....................................... 1,247,918
-----------
Net investment income................................ 4,818,806
Realized and Unrealized Gain (Loss) on Investments
(Note 3):
Realized gain from security transactions.............. 939,587
Realized loss from foreign currency transactions...... (1,588,761)
Change in unrealized depreciation of investments...... (1,375,718)
Change in unrealized depreciation of foreign currency
receivables and payables............................. (16,761)
Change in unrealized depreciation of forward currency
contracts............................................ (212,353)
-----------
Net Increase in Net Assets Resulting from Operations.. $ 2,564,800
===========
</TABLE>
See Notes to Financial Statements.
<PAGE>
Worldwide Bond Fund Financial Statements
- --------------------------------------------------------------------------------
Statements of Changes in Net Assets
<TABLE>
<CAPTION>
For the
Year Eight Months Year
Ended Ended Ended
December 31, December 31, April 30,
1997 1996 1996
------------ ------------ ------------
<S> <C> <C> <C>
Increase (Decrease) in Net Assets:
Operations:
Net investment income............... $ 4,818,806 $ 3,769,611 $ 5,770,316
Realized gain from futures contracts
and options........................ -- -- 3,705
Realized gain from security
transactions....................... 939,587 817,168 1,311,357
Realized gain (loss) from foreign
currency transactions.............. (1,588,761) (1,674,843) 1,451,829
Change in unrealized appreciation
(depreciation) of investments...... (1,375,718) 2,881,675 (2,111,991)
Change in unrealized appreciation
(depreciation) of foreign currency
receivables and payables........... (16,761) 12,454 59,383
Change in unrealized depreciation of
forward currency contracts......... (212,353) (384,523) (3,980,822)
Change in unrealized appreciation of
futures contracts.................. -- -- 4,120
------------ ------------ ------------
Increase in net assets resulting
from operations.................... 2,564,800 5,421,542 2,507,897
------------ ------------ ------------
Dividends to shareholders from net
investment income.................. (3,749,849) (3,020,905) (8,098,367)
------------ ------------ ------------
Capital share transactions*:
Net proceeds from sales of shares... 33,108,189 26,077,547 56,024,013
Reinvestment of dividends........... 3,749,849 3,020,905 8,098,367
------------ ------------ ------------
36,858,038 29,098,452 64,122,380
Cost of shares reacquired........... (41,888,456) (20,363,640) (64,457,152)
------------ ------------ ------------
Increase (decrease) in net assets
resulting from capital share
transactions....................... (5,030,418) 8,734,812 (334,772)
------------ ------------ ------------
Total increase (decrease) in net
assets............................. (6,215,467) 11,135,449 (5,925,242)
Net Assets:
Beginning of period................. 118,676,123 107,540,674 113,465,916
------------ ------------ ------------
End of period (including
undistributed net investment income
of $723,165,
$3,513,748 and $2,970,039,
respectively)...................... $112,460,656 $118,676,123 $107,540,674
============ ============ ============
*Shares of Beneficial Interest Issued
and Redeemed
(Unlimited number of $.001 par value
shares authorized)
Shares sold......................... 3,059,504 2,409,912 5,046,092
Reinvestment of dividends........... 355,099 286,885 731,260
------------ ------------ ------------
3,414,603 2,696,797 5,777,352
Shares reacquired................... (3,880,804) (1,886,609) (5,794,591)
------------ ------------ ------------
Net increase (decrease)............. (466,201) 810,188 (17,239)
============ ============ ============
</TABLE>
See Notes to Financial Statements.
<PAGE>
Worldwide Bond Fund
- -------------------------------------------------------------------------------
Financial Highlights
For a share outstanding throughout each period
<TABLE>
<CAPTION>
For the Eight Months
Ended Year Ended April 30,
Year Ended December 31, ------------------------------------
December 31, 1997 1996 1996 1995 1994 1993
----------------- -------------------- -------- -------- ------- -------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period.... $11.10 $10.88 $11.46 $10.05 $10.62 $11.57
-------- -------- -------- -------- ------- -------
Income From Investment
Operations:
Net investment income.. 0.48 0.36 0.58 0.68* 0.63 0.81
Net gains (losses) on
securities (both
realized and
unrealized)........... (0.23) 0.17 (0.34) 0.77 (0.37) (0.75)
-------- -------- -------- -------- ------- -------
Total From Investment
Operations............. 0.25 0.53 0.24 1.45 0.26 0.06
-------- -------- -------- -------- ------- -------
Less Distributions:
Dividends from net
investment income..... (0.36) (0.31) (0.82) (0.04) (0.72) (0.83)
Distributions from
capital gains......... -- -- -- -- (0.11) (0.18)
-------- -------- -------- -------- ------- -------
Total Distributions..... (0.36) (0.31) (0.82) (0.04) (0.83) (1.01)
-------- -------- -------- -------- ------- -------
Net Asset Value, End of
Period................. $10.99 $11.10 $10.88 $11.46 $10.05 $10.62
======== ======== ======== ======== ======= =======
Total Return (a)........ 2.38% 4.98% 2.07% 14.51% 2.49% 0.38%
- ------------------------------------------------------------------------------------------------------
Ratios/Supplementary
Data
Net Assets, End of
Period (000)........... $112,461 $118,676 $107,541 $113,466 $80,908 $66,035
Ratio of Gross Expenses
to Average Net Assets.. 1.12% 1.17%(b) 1.10% 0.99%
Ratio of Net Expenses to
Average Net Assets..... 1.12% 1.16%(b) 1.08% 0.98% 0.93% 1.01%
Ratio of Net Income to
Average Net Assets..... 4.31% 4.99%(b) 5.26% 6.24% 6.47% 8.47%
Portfolio Turnover Rate. 135.36% 73.95% 208.05% 265.87% 37.59% 248.21%
</TABLE>
- -----------
(a) Total return is calculated assuming an initial investment made at the net
asset value at the beginning of the period, reinvestment of dividends and
distribution of capital gains at net asset value during the period and a
redemption on the last day of the period. Total return for the period less
than one year was not annualized.
(b) Annualized.
* Based on average shares outstanding.
See Notes to Financial Statements.
- -------------------------------------------------------------------------------
Notes To Financial Statements
Note 1--Significant Accounting Policies:
Van Eck Worldwide Insurance Trust (the "Trust"), organized as a Massachusetts
business trust on January 7, 1987, is registered under the Investment Company
Act of 1940. The following is a summary of significant accounting policies
consistently followed by the Worldwide Bond Fund, a non-diversified series,
(the "Fund") of the Trust in the preparation of its financial statements. The
policies are in conformity with generally accepted accounting principles. The
preparation of financial statements in conformity with generally accepted
accounting principles requires the use of management's estimates and the
actual amounts could differ.
A. Security Valuation--Securities traded on national exchanges and traded on
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
amortized 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
<PAGE>
Worldwide Bond Fund
- -------------------------------------------------------------------------------
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.
D. Dividend and Distributions--Dividend income and distributions to
shareholders are recorded on the ex-dividend date. Income distributions and
capital gain distributions are determined in accordance with income tax
regulations which may differ from generally accepted accounting principles.
These differences are primarily due to differing treatments for foreign
currency transactions. The effect of these differences for the year ended
December 31, 1997 decreased accumulated realized loss and decreased
undistributed net investment income by $3,859,540.
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 $1,117,119 for the year
ended December 31, 1997 for investment management and advisory services. The
fee is based on an annual rate of 1% on 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. 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 and proceeds from sales of securities, other than short-term
obligations, aggregated $135,083,818 and $124,413,988, respectively, for the
year ended December 31, 1997. For federal income tax purposes, the identified
cost of investments owned at December 31, 1997 was $109,957,030. As of
December 31, 1997, net unrealized appreciation for federal income tax purposes
aggregated $435,714, of which $3,659,697 related to appreciated securities and
$3,223,983 related to depreciated securities. At December 31, 1997, the Fund
had a capital loss carry forward of $1,134,234 available, expiring December
31, 2004, to offset future capital gains.
Note 4--Forward Currency Contracts--The Fund may buy and sell forward currency
contracts to settle purchases and sales of foreign denominated securities. In
addition, the Fund may enter into forward currency contracts to hedge foreign
denominated assets. Realized gains and losses from forward currency contracts
are included in realized loss from foreign currency transactions. At December
31, 1997, the Fund had the following outstanding forward currency contracts:
<TABLE>
<CAPTION>
Unrealized
Value At Appreciation
Contracts Settlement Date Current Value (Depreciation)
- ------------------- --------------- ------------- --------------
<S> <C> <C> <C>
Forward Currency Buy Contracts:
DEM 15,761,365
expiring 3/18/98 $8,934,679 $8,802,721 $(131,958)
ITL 4,320,712,500
expiring 3/18/98 2,486,026 2,441,563 (44,463)
Forward Currency Sell Contracts:
GBP 9,271,853
expiring 3/18/98 15,078,605 15,239,340 (160,735)
IEP 1,480,000
expiring 3/18/98 2,148,960 2,110,776 38,184
NZD 10,500,000
expiring 3/18/98 6,163,500 6,064,345 99,155
---------
$(199,817)
=========
</TABLE>
The Fund may incur additional risk from investments in forward currency
contracts if the counterparty is unable to fulfill its obligation or there are
unanticipated movements of the foreign currency relative to the U.S. dollar.
Note 5--Option Contracts--The Fund may invest, for hedging and other purposes,
in call and put options on securities, currencies and commodities. Call and
put options give the Fund the right but not the obligation to buy (calls) or
sell (puts) the instrument underlying the option at a specified price. The
premium paid on the option, should it be exercised, will, on a call, increase
the cost of the instrument acquired and, on a put, reduce the proceeds
received from the sale of the instrument underlying the option. If the options
are not exercised, the premium paid will be recorded as a capital loss upon
expiration. The Fund may incur additional risk to the extent the value of the
underlying instrument does not correlate with the movement of the option
value.
The Fund may also write call or put options. As the writer of an option, the
Fund receives a premium. The Fund keeps the premium whether or not the option
is exercised. The premium will be recorded, upon expiration of the option, as
a short-term capital gain. If the option is exercised, the Fund must sell, in
the case of a written call, or buy, in the case of a written put, the
underlying instrument at the exercise price. The Fund may write only covered
puts and calls. A covered call option is an option in which the Fund owns the
instrument underlying the call. A covered call sold by the Fund exposes it
during the term of the option to possible loss of opportunity to realize
appreciation in the market price of the
<PAGE>
Worldwide Bond Fund
- -------------------------------------------------------------------------------
underlying instrument or to possible continued holding of an underlying
instrument which might otherwise have been sold to protect against a decline
in the market price of the underlying instrument. A covered put exposes the
Fund during the term of the option to a decline in price of the underlying
instrument. A put option sold by the Fund is covered when, among other things,
cash or short-term liquid securities are placed in a segregated account to
fulfill the obligations undertaken. The Fund may incur additional risk from
investments in written currency options if there are unanticipated movements
in the underlying currencies.
Note 6--The Fund invests in foreign securities. Investments in foreign
securities may involve a greater degree of risk than investments in domestic
securities due to political, economic or social instability. Foreign
investments may also be subject to foreign taxes and settlement delays. Since
the Fund may have significant investments in foreign debt securities it may be
subject to greater credit and interest risks and greater currency fluctuations
than portfolios with significant investments in domestic debt securities.
Note 7--Trustee Deferred Compensation Plan--The Trust established a Deferred
Compensation Plan (the "Plan") for trustees. Commencing January 1, 1996, the
Trustees can elect to defer receipt of their trustee fees until retirement,
disability or termination from the board. The Fund's contributions to the Plan
are limited to the amount of fees earned by the participating trustees. The
fees otherwise payable to the participating Trustees are invested in shares of
the Van Eck Funds as directed by the Trustees. The Plan has been approved by
the Internal Revenue Service.
The Fund has elected to show the deferred liability net of the asset for
financial statement purposes.
As of December 31, 1997, the total value of the assets and corresponding
liability of the Fund's portion of the Plan is $18,821.
Note 8--An income dividend of $0.10 a share was paid on January 30, 1998 to
shareholders of record date January 28, 1998 with a reinvestment date of
January 30, 1998.
<PAGE>
Worldwide Bond Fund
- -------------------------------------------------------------------------------
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 schedule of portfolio investments, of the Worldwide Bond Fund
(the "Fund") (one of the series constituting the Van Eck Worldwide Insurance
Trust) as of December 31, 1997, and the related statement of operations for
the year then ended, the statements of changes in net assets for the year then
ended, for the eight months ended December 31, 1996, and for the year ended
April 30, 1996, and the financial highlights for the year then ended, for the
eight months ended December 31, 1996, and for each of the four years in the
period ended April 30, 1996. 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 December 31, 1997, by correspondence with the custodian. An audit
also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audits provide a reasonable basis
for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of the
Worldwide Bond Fund series of the Van Eck Worldwide Insurance Trust as of
December 31, 1997, the results of its operations for the year then ended, the
changes in its net assets and the financial highlights for each of the periods
referred to above, in conformity with generally accepted accounting
principles.
Coopers & Lybrand L.L.P.
New York, New York
February 13, 1998
<PAGE>
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<PAGE>
December 31, 1997
VAN ECK
WORLDWIDE
INSURANCE TRUST
ANNUAL REPORT
Worldwide
Bond Fund
FRENCH GOVERNMENT BONDS . US BONDS . JAPANESE BONDS . SWEDISH BONDS . GERMAN
GOVERNMENT BONDS . CANADIAN GOVERNMENT BONDS . ECU BONDS . UK BONDS
. SWISS BONDS . ECU BONDS . UK BONDS . FRENCH GOVERNMENT BONDS .
JAPANESE BONDS . AUSTRALIAN GOVERNMENT BONDS . ECU BONDS . FRENCH GOVERNMENT
BONDS . US BONDS . SWEDISH BONDS . UK BONDS . GERMAN GOVERNMENT BONDS
. SWISS BONDS ECU BONDS .
LOGO VAN ECK GLOBAL
VAN ECK WORLDWIDE
INSURANCE TRUST
- -------------------
Worldwide Bond Fund
Van Eck Worldwide Insurance Trust
- ----------------------------------
99 Park Avenue, New York, NY 10016
This report must be accompanied or preceded by a 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 carefully before investing.
FR1998-0121-0122
LOGO VAN ECK GLOBAL
Van Eck Worldwide\rBond Fund Salomon Bros. World\rGov't Bond Index
