<PAGE>
Van Eck Global
Worldwide Insurance Trust
[GRAPHIC]
SEMI-ANNUAL REPORT
June 30, 1999
discipline
Worldwide Hard Assets Fund
allocation
diversify
GLOBAL INVESTMENTS SINCE 1955
<PAGE>
Van Eck Worldwide Hard Assets Fund
- -------------------------------------------------------------------------------
Dear Shareholder:
We are pleased to report that hard assets had an excellent first half of the
year and the Worldwide Hard Assets Fund rose 18.2%. Hard assets substantially
outperformed financial assets during the period--in comparison, the S&P 500
Index rose 12.4% for the six- month period ended June 30, 1999. Hard asset
performance was driven by two factors: 1) a realization that global economic
growth was rising; and 2) an increasingly favorable supply/demand environment
for most hard asset sectors.
Review
The first half of 1999 witnessed a reversal of the major trends that affected
the hard assets markets throughout 1998. Confidence in global economic growth
returned in the first quarter as the emerging economies, particularly in Asia,
began to recover strongly after 18 months in a downward spiral. The Japanese
economy also began to recover after several years of zero growth and
government waffling, as positive steps were finally taken to remedy the
situation. Economic growth figures for the developed world came in higher than
expected and fears of a global slowdown subsided. Further, several hard asset
sectors have gone through major supply cutbacks as a result of a number of
factors. These included an OPEC agreement to cut supplies (announced in March)
and mergers and acquisitions activity, which has resulted in supply
reductions. These two factors--a solid increase in demand due to strong global
growth and the decrease in supply--provided an extremely positive environment
for these investments in the first half, and we expect these trends to remain
in place throughout the year. An additional positive force was a broad move
from growth stocks into cyclical and "value" stocks in the second quarter--
partly a result of revised economic growth figures, but also an investor
reaction to the lofty valuations and questionable earnings of technology
(particularly Internet) stocks.
Energy prices rose sharply during the second quarter as a result of the OPEC
supply cutback that came after two years of indecision. Energy stocks, which
remain the portfolio's largest weighting at over 35% of total assets at June
30, were up 53% overall for the first six months of the year. We continue to
favor exploration and production companies, such as Anadarko and Alberta
Energy, and oil service companies. We are emphasizing companies with
substantial natural gas exposure since we believe this sector currently offers
the best fundamentals among hard assets, with strong demand growth (expected
at over 3% this year) and an expected supply decline of almost 3%. As for
crude oil, we do not expect the price to rise much further, but if the price
is sustained at current levels, oil service companies should capture higher
profits. Some of the Fund's oil service stocks, such as Baker Hughes and
Cooper Cameron, were significant contributors to performance in the first
half. Mergers and acquisitions continue to play an important positive role in
this sector. Recent deals include the pending merger of Exxon and Mobil, the
takeover of YPF by Repsol, British Petroleum's takeover of Amoco and recent
rumors of Texaco as a possible takeover target.
Real estate securities, which accounted for over 25% of the Fund's holdings at
June 30, turned in positive performance for the first six months of the year.
The U.S. real estate market, which accounted for most of the Fund's real
estate holdings, began the year with negative performance, but rallied
strongly in the second quarter concurrent with the move out of technology and
growth stocks (the U.S.-based Morgan Stanley REIT Index ended the first half
up 4.6%). Several positive developments contributed to this turnaround:
investment guru Warren Buffet purchased REITs in April, which helped boost
investor perception of the sector; there were several management-led
privatizations (an additional sign of strength and confidence); and real
estate companies continued to meet or exceed earnings estimates. Several of
the Fund's REIT holdings were up 10% or more in the first half, including
Equity Residential and Boston Properties. Many of these same dynamics were at
work in Canada where the Fund held stocks such as TrizecHahn, Oxford
Properties and Brookfield Properties. Our Canadian property exposure also
benefited from the recovery in the Canadian dollar
<PAGE>
Van Eck Worldwide Hard Assets Fund
- --------------------------------------------------------------------------------
during the first half of 1999. This sector continues to offer a low risk,
income-producing component for the Fund, and values here remain attractive.
Forest products and paper, about 13% of the Fund's holdings at June 30, had an
explosive run in the first half of the year, ending the period up approximately
25%. In addition to increased demand with renewed economic growth, certain
companies have shut down excess capacity, a push that has been driven primarily
by mergers and acquisitions activity (Fund holding Smurfit-Stone Container has
been notable in this regard). The combination of these factors led to several
price increases either announced or realized in certain segments of the
industry. Furthermore, talk of additional consolidation in the sector has
fueled returns. One example, Weyerhauser's announced bid for MacMillan Bloedel
(the largest Canadian paper company and a Fund holding), helped boost the
entire Canadian paper sector. Meanwhile, timber and building materials prices
have sky-rocketed as a result of the strong housing market in the U.S. and
holdings such as Plum Creek Timber (which converted from a publicly traded
partnership to a REIT--the first timber REIT) contributed to performance. The
only sectors within this group that have yet to rebound are the newsprint and
pulp sectors and we believe they will perform well in the second half. We have
bought several of these stocks, including Brazilian pulp company Aracruz and
newsprint company Bowater.
Industrial metals (approximately 10% of assets at June 30) performed well
overall, with mixed performance among the group. While sensitive to the
economic turnaround, the supply-demand scenario has not been as strong as it
has for the energy and forest products sectors. Therefore, we have kept this
weighting fairly low, with only selective holdings. While aluminum and copper
companies have yet to rebound substantially, Alcoa, by far our largest holding
in this group and a company that has done well even in flat-to-declining
commodity markets, turned in solid gains.
Precious metals (about 9% of assets) had mixed results. The platinum and
palladium markets stayed afloat, with decent supply-demand pictures and some
industrial demand. The gold market, however, fell further, primarily the result
of continued central bank selling. In this sector, we hold only selective
stocks based on their individual strengths. For example, Stillwater, a platinum
and palladium producer and our largest holding in this sector, was up
substantially for the first half.
The Outlook
The macroeconomic background for hard assets remains positive. We expect the
unprecedented monetary stimulus the world has experienced during the last nine
months--there have been 156 interest rates cuts during that period--to continue
to stimulate worldwide economic growth. The U.S. economy has been running in
overdrive and we expect it to continue to plow ahead. The European economy has
been sluggish, but appears to be strengthening. The Japanese economy has slowly
begun to turn up. Asia is recovering from its recession and even Latin America
has turned in better-than-expected growth. The global economy is getting
stronger and commodity-related currencies are strengthening. These should be
positive factors for hard asset performance.
We would like to thank you for your participation in the Van Eck Worldwide Hard
Assets Fund, and we look forward to working with you in the future.
[PHOTO]
[PHOTO]
/s/ Derek S.
van Eck /s/ Kevin L. Reid
Derek S. van Kevin L.
Eck Reid
Co-Portfolio Co-Portfolio
Manager Manager
July 20, 1999
<PAGE>
Van Eck Worldwide Hard Assets Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Performance Record as of 6/30/99
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Average Annual
Total Return
- ----------------------------
<S> <C>
Life (since 9/1/89) 3.7 %
- ----------------------------
5 years 1.2 %
- ----------------------------
1 year (5.8) %
- ----------------------------
</TABLE>
The performance data represents past
performance and is not indicative of
future results.
Investment return and principal value of an investment in the Fund will vary so
that shares, when redeemed, may be worth more or less than their original cost.
At certain times in the past, the Adviser waived certain or all expenses on the
Fund. Had the Fund incurred all expenses, investment returns would have been
reduced.
The Fund is only available as an option under various insurance contracts
issued by life insurance and annuity companies. These contracts offer life and
tax benefits to the beneficial owners of the Fund. Your insurance or annuity
company charges fees and expenses for these benefits which are not reflected in
this report or in the Fund's performance, since they are not direct expenses of
the Fund. Had these fees been included, returns would have been lower. A review
of your particular life and/or annuity contract will provide you with much
greater detail regarding these costs and benefits.
Sector Weightings
as of June 30, 1999
[PIE CHART]
Energy 36.3%
Forest Products & Paper 13.4%
Industrial Metals 9.8%
Precious Metals 9.0%
Real Estate 27.8%
Cash/Equivalents 3.6%
Geographical Weightings
as of June 30, 1999
[PIE CHART]
Cash/Equivalents 3.6%
Australia 4.3%
Canada 17.7%
Other 5.1%
Russia 2.5%
Hong Kong 2.7%
United Kingdom 2.0%
United States 62.1%
<PAGE>
Van Eck Worldwide Hard Assets Fund
Top Ten Equity Holdings as of June 30, 1999*
- --------------------------------------------------------------------------------
Anadarko Petroleum Corporation
(U.S., 2.8%)
Anadarko is an independent oil and gas exploration and production company. The
company explores for oil in Kansas, Oklahoma and Texas, as well as offshore in
the Gulf of Mexico and Alaska. Anadarko also owns and operates gas-gathering
systems in its U.S. core producing areas. It also develops crude oil reserves
in Algeria.
Stillwater Mining Company
(U.S., 2.6%)
Stillwater Mining explores for, develops, extracts, processes and refines
platinum, palladium and associated metals from the J-M Reef, located in
Stillwater and Sweet Grass Counties, Montana. The company currently operates
the Stillwater Mine, an underground mine located in Nye, Montana.
Global Industries Ltd.
(U.S., 2.5%)
Global Industries provides oil field construction services. These services
include pipeline construction, platform installation and removal, diving
services, and construction support. The company provides its services to the
offshore oil and gas industry in the U.S. Gulf of Mexico and select
international areas.
Cooper Cameron Corporation
(U.S., 2.3%)
Cooper Cameron manufactures oil and gas pressure control equipment. The
company's equipment is used for oil and gas drilling, production and
transmission used in onshore, offshore and sub-sea applications. Cooper also
manufactures gas turbines, centrifugal gas and air compressors and other
products.
TrizecHahn Corporation
(Canada, 2.0%)
TrizecHahn is an integrated real estate development and operating company. The
company owns, develops and manages office buildings and mixed-use properties in
the U.S., Canada and Europe, and through its developmental units, creates
retail/entertainment and office projects in North America and Europe.
Plum Creek Timber Company, Inc.
(U.S., 1.9%)
Plum Creek Timber is an integrated forest products company. The company's
timberlands and mills are located in the Pacific Northwest and the southeast
and northeast United States.
Khanty-Mansiysk Oil Company
(Russia, 1.9%)
KMOC, formerly Ural Petroleum Corp., is a U.S.-registered, privately held oil
exploration and production company focused exclusively on the Western Siberian
region of the Russian Federation. Through controlled subsidiaries, KMOC holds
production licenses in 11 fields totaling an estimated two billion barrels in
proven, probable and possible reserves.
Apache Corporation
(U.S., 1.8%)
Apache Corporation explores for and produces natural gas, crude oil and natural
gas liquids. The company has operations in North America, Egypt, western
Australia, Poland, China and Cote d'Ivoire.
Aluminum Company of America (ALCOA)
(U.S., 1.8%)
Alcoa is an integrated aluminum company. The company produces aluminum and
alumina. It is involved in mining, refining, smelting, fabricating and
recycling. Alcoa serves customers worldwide in the packaging, automotive,
aerospace, construction and other markets with a variety of fabricated and
finished products.
Santa Fe International Corporation
(U.S., 1.8%)
Santa Fe International is an international offshore and land contract driller.
The company owns and operates a fleet consisting of marine and land drilling
rigs located in various countries throughout the world. Santa Fe also provides
drilling-related services to the petroleum industry worldwide.
- --------------------------------------------------------------------------------
* Portfolio is subject to change.
<PAGE>
Worldwide Hard Assets Fund
Schedule of Portfolio Investments
June 30, 1999 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
No. of Value
Shares Securities (a) (Note 1)
- -----------------------------------------------------------------------
<C> <S> <C>
AUSTRALIA: 4.32%
Energy: 1.77%
100,000 Broken Hill Proprietary Co. Ltd. $ 1,156,312
1,720,145 Portman Mining Ltd. 750,146
805,363 Portman Mining Ltd. Rights (expiring 7/19/99) 3,725
------------
1,910,183
------------
Industrial Metals: 1.52%
1,484,000 Pasminco Ltd. 1,635,562
------------
Precious Metals: 1.03%
945,985 Acacia Resources Ltd. 1,093,854
425,000 Gullewa Gold NL 10,671
------------
1,104,525
------------
4,650,270
------------
BRAZIL: 1.48%
Forest Products: 1.48%
72,300 Aracruz Celulose S.A. (ADR) 1,590,600
------------
CANADA: 17.66%
Energy: 5.99%
40,837 Alberta Energy Co. Ltd. 1,313,917
83,000 AltaGas Services, Inc.(b)* 564,587
82,800 Anderson Exploration Ltd. 1,089,844
98,800 Berkley Petroleum Corp. 829,997
375,000 Cypress Energy, Inc. 1,517,753
140,000 Interoil Corp. 105,000
240,000 Kappa Energy Co., Inc. 48,976
55,000 Poco Petroleums Ltd. 445,207
274,000 Stellarton Energy Corp. 354,125
706,000 Windsor Energy Corp.(b) 187,293
------------
6,456,699
------------
Forest Products: 3.52%
107,500 Abitibi-Consolidated, Inc. 1,222,812
48,700 Fletcher Challenge Ltd. 558,189
27,500 MacMillan Bloedel Ltd. 492,908
119,000 St. Laurent Paperboard, Inc. 1,513,706
------------
3,787,615
------------
Precious Metals: 1.68%
84,000 Barrick Gold Corp. 1,627,500
1,614,800 Brazilian Resources, Inc. 186,732
------------
1,814,232
------------
</TABLE>
<TABLE>
<CAPTION>
No. of Value
Shares Securities (a) (Note 1)
- ------------------------------------------------------------------
<C> <S> <C>
CANADA (continued)
Real Estate: 6.47%
59,200 Bentall Corp. $ 618,134
100,000 Boardwalk Equities, Inc. 1,013,536
60,000 Brookfield Properties Corp. 781,579
70,000 Cadillac Fairview Corp. 1,321,250
100,000 Oxford Properties Group, Inc. 1,061,152
107,000 TrizecHahn Corp. 2,180,125
------------
6,975,776
------------
19,034,322
------------
HONG KONG: 2.71%
Real Estate: 2.71%
130,000 Cheung Kong (Holdings) Ltd. 1,156,121
725,000 HKR International, Ltd. 626,071
125,000 Sun Hung Kai Properties, Ltd. 1,139,849
------------
2,922,041
------------
ITALY: 0.72%
Energy: 0.72%
13,000 Ente Nazionale Idrocaburi S.p.A. (ADR) 780,000
------------
NETHERLANDS: 1.01%
Energy: 1.01%
18,000 Royal Dutch Petroleum Co. 1,084,500
------------
NORWAY: 1.31%
Energy: 1.31%
129,700 Stolt Comex Seaway S.A. 1,410,487
------------
RUSSIA: 2.47%
Energy: 2.47%
4,299 Khanty-Mansiysk Oil Co.(b)* 2,042,053
14,800 Lukoil Holding Corp.(c) 346,571
22,200 Surgutneftegaz, Inc. (ADR) 176,145
22,200 Surgutneftegaz, Inc. Pfd. (ADR) 98,367
------------
2,663,136
------------
SINGAPORE: 0.49%
Forest Products: 0.49%
55,000 Asia Pulp and Paper Co. Ltd. (ADR) 529,375
------------
SOUTH AFRICA: 0.02%
Precious Metals: 0.02%
688 Anglo American Platinum Corp. (ADR) 15,953
1,011 Western Areas Gold Mining Co. Ltd. (ADR) 3,286
------------
19,239
------------
</TABLE>
See Notes to Financial Statements
<PAGE>
Worldwide Hard Assets Fund
Schedule of Portfolio Investments
June 30, 1999 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
No. of
Shares or
Principal Value
Amount Securities (a) (Note 1)
- ----------------------------------------------------------------------------
<C> <S> <C>
UNITED KINGDOM: 2.03%
Energy: 0.96%
9,500 BP Amoco PLC (ADR) $ 1,030,750
------------
Industrial Metals: 1.07%
329,900 Billiton PLC 1,155,820
------------
2,186,570
------------
UNITED STATES: 62.09%
Energy: 22.09%
81,350 Anadarko Petroleum Corp. 2,994,697
49,600 Apache Corp. 1,934,400
53,000 Baker Hughes, Inc. 1,775,500
25,100 Burlington Resources, Inc. 1,085,575
67,000 Cooper Cameron Corp. 2,483,187
24,200 Exxon Corp. 1,866,425
211,100 Global Industries Ltd. 2,704,719
72,500 Global Marine, Inc. 1,119,219
65,385 JP Morgan & Co., Crude Oil Commodity-Indexed Pref.
Security 3/04/02 1,209,622
62,500 Marine Drilling Companies, Inc. 855,469
4,400 Mobil Corp. 435,600
147,700 Ocean Energy, Inc. 1,421,612
82,500 Santa Fe International Corp. 1,897,500
14,500 Schlumberger Ltd. 923,469
17,500 Texaco, Inc. 1,093,750
------------
23,800,744
------------
Forest Products: 7.93%
38,900 Bowater, Inc. 1,838,025
27,600 Georgia Pacific Corp. 1,307,550
29,250 International Paper Co. 1,477,125
67,200 Plum Creek Timber Co., Inc. 2,091,600
88,800 Smurfit-Stone Container Corp. 1,825,950
------------
8,540,250
------------
Industrial Metals: 7.19%
68,100 AK Steel Holding Corp. 1,532,250
38,500 Alcan Aluminium Ltd. 1,229,593
30,900 Aluminum Co. of America (Alcoa, Inc.) 1,911,937
62,300 Freeport McMoran Copper & Gold, Inc. 1,117,506
18,000 Nucor Corp. 853,895
18,720 Reynolds Metals Co. 1,104,480
------------
7,749,661
------------
Insurance: 0.03%
3,000 Highlands Insurance Group, Inc. 31,500
------------
</TABLE>
<TABLE>
<CAPTION>
No. of
Shares or
Principal Value
Amount Securities (a) (Note 1)
- --------------------------------------------------------------------------------
<C> <S> <C>
UNITED STATES (continued)
Precious Metals: 6.19%
USD2,800,000 Business Development Bank of Canada Yen/Gold Linked
Note 4.85%, 9/30/99 $ 2,251,200
82,500 Newmont Mining Corp. 1,639,687
85,000 Stillwater Mining Co. 2,778,437
------------
6,669,324
------------
Real Estate: 18.66%
40,000 AMB Property Corp. 940,000
20,000 Apartment Investment & Management Co. 855,000
22,000 Bedford Property Investors, Inc. 393,250
30,000 Boston Properties, Inc. 1,076,250
58,500 Brandywine Realty Trust 1,159,031
25,000 CarrAmerica Realty Corp. 625,000
75,000 Cornerstone Properties, Inc. 1,190,625
71,600 Crescent Real Estate Equities Co. 1,700,500
36,000 Equity Office Properties Trust 922,500
18,000 Equity Residential Properties Trust 811,125
75,000 Host Marriott Corp. 890,625
47,500 Kilroy Realty Corp. 1,157,812
30,000 Macerich Co. (The) 787,500
40,000 Mack-Cali Realty Corp. 1,237,500
90,500 New Plan Excel Realty Trust 1,629,000
33,400 Prentiss Properties Trust 784,900
50,000 Prologis Trust 1,012,500
34,000 Simon Property Group, Inc. 862,750
33,000 Starwood Hotels & Resorts Trust 1,008,562
236,692 Wyndham International, Inc. 1,065,114
------------
20,109,544
------------
66,901,023
------------
Total Stocks and Other Investments: 96.31% (Cost: $100,680,496) 103,771,563
------------
<CAPTION>
No. of
Contracts Call Option Purchased: 0.08%
- --------------------------------------------------------------------------------
<C> <S> <C>
380 August Comex Gold
(strike price @ $265 expiring 7/09/99) (Cost:
$76,990) 83,600
------------
</TABLE>
See Notes to Financial Statements
<PAGE>
Worldwide Hard Assets Fund
Schedule of Portfolio Investments
June 30, 1999 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal Value
Amount Short-Term Obligations: 9.00% (Note 1)
- ----------------------------------------------------------------------------
<C> <S> <C>
USD4,850,000 American Express Co. due 7/01/99 Interest
Yield 5.58% $ 4,850,000
USD4,850,000 General Electric Co. due 7/01/99 Interest
Yield 5.07% 4,850,000
------------
Total Short-Term Obligations: 9.00%
(Amortized Cost: $9,700,000) 9,700,000
------------
Total Investments: 105.39%
(Cost: $110,457,486) 113,555,163
Other assets less liabilities: (5.39)% (5,806,443)
------------
Net Assets: 100% $107,748,720
============
</TABLE>
- -------
(a) Unless otherwise indicated, securities owned are shares of common stock.
(b) Restricted security, See Note 6.
(c) Includes securities in the form of American Depositary Receipts (ADR).
ADR's are traded at prices substantially equivalent to those quotes for
ordinary shares.
* Fair value as determined by the Board of Trustees.
Glossary:
ADR-American Depositary Receipt
<TABLE>
<CAPTION>
Summary of
Net Assets % of
By Industry Net Assets
- ----------- ----------
<S> <C>
Energy 36.32%
Forest Products
& Paper 13.42%
Industrial Met-
als 9.78%
Insurance 0.03%
Precious Metals 8.92%
Real Estate 27.84%
</TABLE>
<TABLE>
<CAPTION>
Summary of
Net Assets % of
By Industry Net Assets
----------- ----------
<S> <C>
Short-Term Obligations 9.00%
Option Purchased 0.08%
Other assets less Liabilities (5.39)%
------
100.00%
======
</TABLE>
See Notes to Financial Statements
<PAGE>
Worldwide Hard Assets Fund Financial Statements
- --------------------------------------------------------------------------------
Statement of Assets and Liabilities
June 30, 1999 (Unaudited)
<TABLE>
<S> <C>
Assets:
Investments at value (cost, $110,457,486) (Note 1)................ $113,555,163
Cash, at value.................................................... 795,814
Cash--initial margin for equity swap (Note 8)..................... 110,970
Receivables:
Capital shares sold.............................................. 594,897
Dividends and interest........................................... 319,880
Securities sold.................................................. 108,938
Due from broker (Note 8)......................................... 25,530
------------
Total assets.................................................... 115,511,192
------------
Liabilities:
Payables:
Securities purchased............................................. 7,341,603
Capital shares repurchased....................................... 399,523
Accounts payable................................................. 21,346
------------
Total liabilities............................................... 7,762,472
------------
Net assets........................................................ $107,748,720
============
Shares outstanding................................................ 10,057,234
============
Net asset value, redemption and offering price per share
($107,748,720/10,057,234)........................................ $10.71
============
Net assets consist of:
Aggregate paid in capital........................................ $127,201,298
Unrealized appreciation of investments, swaps, and foreign
currencies...................................................... 3,121,517
Undistributed net investment income.............................. 739,848
Accumulated realized loss........................................ (23,313,943)
------------
$107,748,720
============
</TABLE>
Statement of Operations
Six Months Ended June 30, 1999 (Unaudited)
<TABLE>
<S> <C> <C>
Income (Note 1):
Dividends (less foreign taxes withheld of $29,368)...... $ 1,112,629
Interest................................................ 350,549
-----------
Total income.......................................... 1,463,178
Expenses:
Management (Note 2)..................................... $483,966
Administration (Note 2)................................. 1,300
Reports to shareholders................................. 33,736
Professional............................................ 24,321
Trustees' fees and expenses............................. 16,692
Custodian............................................... 9,417
Other................................................... 21,520
--------
Total expenses........................................ 590,952
-----------
Net investment income................................. 872,226
-----------
Realized and Unrealized Gain (Loss) on Investments (Note
3):
Realized loss from security transactions................ (4,870,466)
Realized gain from foreign currency transactions........ 21,484
Realized loss from options.............................. (21,021)
Realized gain from futures contracts.................... 493,716
Change in unrealized depreciation of forward foreign
currency contracts and foreign currencies.............. (8,229)
Change in unrealized appreciation of investments, swaps
and futures contracts.................................. 19,743,047
-----------
Net gain on investments forward foreign currency
contracts and foreign currencies....................... 15,358,531
-----------
Net Increase in Net Assets Resulting from Operations.... $16,230,757
===========
</TABLE>
See Notes to Financial Statements
<PAGE>
Worldwide Hard Assets Fund Financial Statements
- --------------------------------------------------------------------------------
Statement of Changes in Net Assets
<TABLE>
<CAPTION>
Six Months
Ended
June 30, 1999 Year Ended
(Unaudited) December 31, 1998
------------- -----------------
<S> <C> <C>
Increase (Decrease) in Net Assets:
Operations:
Net investment income........................ $ 872,226 $ 1,946,094
Realized loss from security transactions..... (4,870,466) (16,221,058)
Realized gain from foreign currency
transactions................................ 21,484 512,577
Realized loss from options................... (21,021) (657,012)
Realized gain (loss) from futures contracts.. 493,716 (40,085)
Change in unrealized appreciation
(depreciation) of forward foreign currency
contracts and foreign currencies............ (8,229) 45,665
Change in unrealized appreciation
(depreciation) of investments, swaps and
futures contracts........................... 19,743,047 (28,023,387)
------------- -------------
Increase (decrease) in net assets resulting
from operations............................. 16,230,757 (42,437,206)
------------- -------------
Dividends and distributions to shareholders
from:
Net investment income........................ (1,337,036) (892,481)
Net realized gains........................... -- (21,915,372)
------------- -------------
Total dividends and distributions............ (1,337,036) (22,807,853)
------------- -------------
Capital share transactions*:
Net proceeds from sales of shares............ 127,910,969 125,168,914
Reinvestment of dividends.................... 1,337,036 22,807,853
------------- -------------
129,248,005 147,976,767
Cost of shares reacquired.................... (122,205,664) (152,851,736)
------------- -------------
Increase (decrease) in net assets resulting
from capital share transactions............. 7,042,341 (4,874,969)
------------- -------------
Total Increase (decrease) in net assets...... 21,936,062 (70,120,028)
Net Assets:
Beginning of period........................... 85,812,658 155,932,686
------------- -------------
End of period (including undistributed net
investment income of $739,848 and $1,183,174,
respectively)................................ $ 107,748,720 $ 85,812,658
============= =============
* Shares of Beneficial Interest Issued and
Redeemed (with an unlimited number of $.001
par value shares authorized):
Shares sold.................................. 12,795,699 11,346,475
Reinvestment of dividends.................... 149,724 1,787,449
------------- -------------
12,945,423 13,133,924
Shares reacquired............................ (12,213,463) (13,725,658)
------------- -------------
Net increase (decrease)...................... 731,960 (591,734)
============= =============
</TABLE>
See Notes to Financial Statements
<PAGE>
Worldwide Hard Assets Fund
- -------------------------------------------------------------------------------
Financial Highlights
For a share outstanding throughout each period
<TABLE>
<CAPTION>
Six Months Year Ended Eight Months
Ended June 30, December 31, Ended Year Ended April 30,
1999 ----------------- December 31, ------------------------
(Unaudited) 1998 1997 1996 1996 1995
-------------- ------- -------- ------------ ---------- ----------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period.... $ 9.20 $ 15.72 $ 16.72 $ 16.92 $ 13.49 $ 13.11
-------- ------- -------- -------- ---------- ----------
Income from Investment
Operations:
Net Investment Income.. 0.08 0.21 0.09 0.02 0.12 0.08
Net Gain (Loss) on
Investments (both
realized and
unrealized)........... 1.57 (4.43) (0.36) 0.09 3.44 0.37
-------- ------- -------- -------- ---------- ----------
Total from Investment
Operations............. 1.65 (4.22) (0.27) 0.11 3.56 0.45
-------- ------- -------- -------- ---------- ----------
Less Dividends and
Distributions:
Dividends from Net
Investment Income..... (0.14) (0.09) (0.31) (0.16) (0.13) (0.07)
Dividends from Capital
Gains................. -- (2.21) (0.42) (0.15) -- --
-------- ------- -------- -------- ---------- ----------
Total Distributions..... (0.14) (2.30) (0.73) (0.31) (0.13) (0.07)
-------- ------- -------- -------- ---------- ----------
Net Asset Value, End of
Period................. $ 10.71 $ 9.20 $ 15.72 $ 16.72 $ 16.92 $ 13.49
======== ======= ======== ======== ========== ==========
Total Return (a)........ 18.24% (30.93%) (1.67%) 0.60% 26.66% 3.43%
- --------------------------------------------------------------------------------------------------
Ratios/Supplementary
Data
Net Assets, End of
Period (000)........... $107,749 $85,813 $155,933 $167,417 $ 186,370 $ 127,320
Ratio of Gross Expenses
to Average Net Assets.. 1.22%* 1.20% 1.18% 1.24%* 1.08% --
Ratio of Net Expenses to
Average Net Assets..... 1.22%* 1.16% 1.17% 1.23%* 1.08%(b) 0.96%
Ratio of Net Investment
Income to Average Net
Assets................. 1.80%* 1.64% 0.64% 0.10%* 0.81% 0.71%
Portfolio Turnover Rate. 115.14% 153.25% 102.82% 46.14% 26.37% 23.30%
</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
distributions at net asset value during the period and a redemption on the
last day of the period. Total return for periods of less than one year are
not annualized.
(b) The ratio was not impacted by the directed brokerage arrangement.
* Annualized.
See Notes to Financial Statements
- -------------------------------------------------------------------------------
Notes to Financial Statements (Unaudited)
Note 1--Significant Accounting Policies:
Van Eck Worldwide Insurance Trust (the "Trust"), organized as a Massachusetts
business trust on January 7, 1987, is registered under the Investment Company
Act of 1940. The following is a summary of significant accounting policies
consistently followed by the Worldwide Hard Assets Fund series, a diversified
fund (the "Fund") of the Trust, in the preparation of its financial
statements. The policies are in conformity with generally accepted accounting
principles. The preparation of financial statements in conformity with
generally accepted accounting principles requires management to make estimates
and assumptions that effect the reported amounts in the financial statements.
Actual results could differ from those estimates.
A. Security Valuation--Securities traded on national exchanges or 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 period. Over-the-
counter securities not included in the NASDAQ National Market System and
listed securities for which no sale was reported are valued at the mean of the
bid and asked prices. Short-term obligations purchased with more than sixty
days remaining to maturity are valued at market.
Short-term obligations purchased with sixty days or less to maturity are
valued at 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 foreign 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 foreign currency contracts are
translated into U.S. dollars at the mean of the quoted bid and asked prices of
such currencies on the last business day of the period. Purchases and sales of
investments are translated at the exchange rates prevailing when such
investments were acquired or sold. Income and expenses are translated at the
exchange rates prevailing when accrued. The portion of realized and unrealized
gains and losses on investments that results 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. 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 such amounts reported in accordance with
generally accepted accounting principles.
E. Other--Security transactions are accounted for on the date the securities
are purchased or sold. Interest income is accrued as earned.
<PAGE>
Worldwide Hard Assets Fund
- -------------------------------------------------------------------------------
Notes to Financial Statements (continued)
F. Use of Derivative Instruments
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 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.
Futures Contracts--The Fund may buy and sell financial futures contracts for
hedging purposes. When a fund enters into a futures contract, it must make an
initial deposit ("initial margin") as a partial guarantee of its performance
under the contract. As the value of the futures contract fluctuates, the Fund
is required to make additional margin payments ("variation margin") to cover
any additional obligation it may have under the contract. In the remote chance
a broker cannot fulfill its obligation, the Fund could lose the variation
margin due to it. Risks may be caused by an imperfect correlation between the
movements in price of the futures contract and the price of the underlying
instrument and interest rates. Gains and losses on futures contracts are
separately disclosed.
Structured Notes--The Fund may invest in indexed securities whose value is
linked to one or more currencies, interest rates, commodities, or financial or
commodity indices. When the Fund purchases a structured note (a non-publicly
traded indexed security entered into directly between two parties) it will
make a payment of principal to the counterparty. The Fund will purchase
structured notes only from counterparties rated A or better by S&P, Moody's or
another nationally recognized statistical rating organization. Van Eck
Associates Corp. will monitor the liquidity of structured notes under
supervision of the Board of Trustees and structured notes determined to be
illiquid will be aggregated with other illiquid securities limited to 15% of
the net assets of the Fund. Indexed securities may be more volatile than the
underlying instrument itself, and present many of the same risks as investing
in futures and options. Indexed securities are also subject to credit risks
associated with the issuer of the security with respect to both principal and
interest. At June 30, 1999, the Fund had a Business Development Bank of Canada
Yen/Gold Linked Note, and JP Morgan & Co., Crude Oil Commodity--Indexed
Preferred Security with values of $2,251,200 and $1,209,622 respectively that
represented a total of 3.21% of the net assets of the Fund.
Note 2--Van Eck Associates Corporation (the "Adviser") earns fees for
investment management and advisory services. This fee is based on an annual
rate of 1% of the first $500 million of average daily net assets, .90 of 1% on
the next $250 million and .70 of 1% on the excess over $750 million. Certain
of the officers and trustees of the Trust are officers, directors or
stockholders of the Adviser and Van Eck Securities Corporation. In accordance
with the advisory agreement, the Fund paid the Adviser for costs incurred in
connection with certain administrative functions for the period ended June 30,
1999.
The Fund has a fee arrangement based on cash balances left on deposit with the
custodian, which reduced the Fund's operating expenses. The Fund also directs
certain portfolio trades to a broker that, in turn, pays a portion of the
Fund's operating expenses.
Note 3--Purchases and sales of securities other than short-term obligations
aggregated $112,826,564 and $99,900,918 respectively, for the six months ended
June 30,1999. For federal income tax purposes, the identified cost of
investments owned at June 30, 1999 was $100,457,516.
As of June 30, 1999, net unrealized appreciation for federal income tax
purposes aggregated $3,097,647, of which $11,685,084, related to appreciated
securities and $8,587,437 related to depreciated securities.
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 reporting 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 invests 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 Foreign 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 (loss) from foreign currency
transactions.
<PAGE>
Worldwide Hard Assets Fund
- -------------------------------------------------------------------------------
Notes to Financial Statements (continued)
At June 30, 1999, the Fund did not have any outstanding forward foreign
currency contracts.
The Fund may incur additional risk from investments in forward foreign
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 6--Restricted Securities
The following securities are restricted as to sale and deemed illiquid:
<TABLE>
<CAPTION>
Percent of
Net Assets
Dates at
Acquired Cost Value 6/30/99
-------- ---------- ---------- ----------
<C> <S> <C> <C> <C>
4/23/98 AltaGas Services, Inc. $ 507,069 $ 564,587 0.5%
1/31/97 Khanty-Mansiysk Oil Co. 1,410,006 2,042,053 1.9%
7/09/96-
5/27/98 Windsor Energy Corp. 1,906,154 187,293 0.2%
</TABLE>
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 June 30, 1999 the total value of the
assets and corresponding liability of the Fund's portion of the Plan is
$45,025
Note 8--The Fund entered into the following equity swap to gain investment
exposure to the relevant market of the underlying security. A swap is an
agreement that obligates the parties to exchange cash flows at specified
intervals. The Fund is obligated to pay the counterparty on trade date an
amount based upon the value of the underlying instrument and, at termination
date, final payment is settled based on the value of the underlying security
on trade date versus the value on termination date plus accrued dividends.
Risks may arise as a result of the failure of the counterparty to the contract
to comply with the terms of the swap contract. The Fund bears the risk of loss
of the amount expected to be received under a swap agreement in the event of
the default of the counterparty. Therefore, the Fund considers the credit
worthiness of each counterparty to a swap contract in evaluating potential
credit risk. Additionally, risks may arise from unanticipated movements in the
value of the swap relative to the underlying securities. The Fund records a
net receivable or payable daily, based on the change in the value of the
underlying securities. The net receivable or payable for financial statement
purposes is shown as due to or from broker. At June 30, 1999, the Fund had the
following outstanding swap (stated in U.S. dollars):
<TABLE>
<CAPTION>
Number Termi- Unrealized
Underlying of Notional nation Apprecia-
Security Shares Amount Date tion
---------- ------- -------- ------- ----------
<C> <S> <C> <C> <C>
Gazprom Oil Co. 680,800 $136,500 3/15/00 $25,530
</TABLE>
Note 9--Change of Independent Accountant--During the fiscal period the Board
of Trustees of the Fund approved a change of the Fund's Independent
Accountants to Ernst & Young LLP.
<PAGE>
[LOGO] Van Eck Global
Investment Adviser: Van Eck Associates Corporation
Distributor: Van Eck Securities Corporation
99 Park Avenue, New York, NY 10016 www.vaneck.com
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 fluctuation or controls,
expropriation, nationalization and confiscatory taxation. Please read the
prospectus carefully before investing.
