<PAGE>
Van Eck Global
Worldwide Insurance Trust
[GRAPHIC]
SEMI-ANNUAL REPORT
June 30, 1999
discipline
Worldwide Real Estate Fund
allocation
diversify
GLOBAL INVESTMENTS SINCE 1955
<PAGE>
Van Eck Worldwide Real Estate Fund
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Dear Shareholder:
We are pleased to report that the Worldwide Real Estate Fund performed well in
the first half of 1999 as many world real estate markets turned in positive
results. The Fund was up 10.7% for the six months ended June 30, 1999,
outperforming both the Morgan Stanley REIT Index (a U.S.-based index), which
gained 4.6%, and the Salomon Smith Barney World Property Index, which increased
9.0% for the period. Since the Fund's inception on June 23, 1997, it has an
average annual return of 8.3% versus declines of 9.9% for the Salomon Index and
1.0% for the Morgan Stanley Index.
Review
Your Fund was overweight North American real estate securities throughout the
first half of the year since the U.S. and Canadian markets represented good
value with less volatility than most other real estate markets. The U.S. real
estate market, which accounted for over half of the Fund's holdings during the
first six months of 1999, began the year with negative performance, a result of
economic slowdown fears and continued investor focus on large capitalization
growth stocks. However, in the second quarter, a number of factors reversed
that trend. Concerns over a possible slowdown proved unfounded as economic
growth figures came in well above expectations, a trend that continued
throughout the first half. Investors became wary of the lofty valuations and
questionable earnings of technology (particularly Internet) stocks and
refocused on "value" stocks (those with attractive prices/valuations relative
to the general market). Investment guru Warren Buffet made REIT purchases in
early April, which also helped boost investor perception of the sector.
Finally, most real estate companies have continued to meet and exceed earnings
expectations and many have recently undergone management-led privatizations, an
additional sign of strength and confidence. The environment was similar in the
Canadian market (16% of total net assets) during the first half. Our Canadian
position also benefited from a stronger Canadian dollar.
Our largest North American holdings included: Brookfield Properties, a prime
Toronto office building company, which also owns the World Financial Center in
New York City (and recently received a New York Stock Exchange listing); Oxford
Properties, the dominant office landlord in Canada; and Boston Properties, a
REIT that controls prime downtown office buildings in Boston, New York,
Washington DC and San Francisco.
The European markets overall performed roughly in line with those in North
America, with significant disparity between markets. UK real estate securities
performed surprisingly well after poor results in 1998. We believe this is
partially a rebound, but also a reflection of the successful IPO (initial
public offering) of Canary Wharf, a high profile development near London. We
have remained underweight in this market (about 1% of assets) since it is well
advanced in the economic cycle and we believe most property stocks are fully
valued. However, we have held a few selective UK positions.
In general, Continental Europe (9.7% of assets) continues to offer more promise
and we added to our exposure in the region. Most of the Continent is at an
earlier stage of economic expansion than the UK, having recently come out of
recession. Euroland is also going through extensive corporate restructurings,
much as the U.S. has in recent years. Among these markets, the portfolio's
largest holdings have been in France (5.4% of assets), where the recovery is
strong and stocks offer good value. French holdings include Accor, a global
hotel company, and Unibail, which owns high-quality office buildings and
shopping centers in Paris, both of which performed well in local currency
terms. The Scandinavian countries are in a similarly positive environment and
the Fund's Swedish holdings (1.4% of assets) also contributed to healthy
returns. Spain and Italy (2.9% of assets), which outperformed in 1998, have
lagged so far this year. Also hurting performance for U.S. dollar-based
investors has been the remarkable weakness of the euro currency.
The Far East markets were the star performers in the first half of 1999, both
in the general equity markets
<PAGE>
Van Eck Worldwide Real Estate Fund
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and in terms of real estate securities. After incredible downturns in the
latter half of 1997 and most of 1998, the Southeast Asian markets began to
recover toward the end of last year. We have remained cautious given their
extreme volatility, but did increase the Fund's Southeast Asian positions
slightly in the second quarter as the region's recovery appeared to be gaining
momentum. Japan was a surprise performer to many; it appears the Japanese
government is finally taking the necessary steps to move the economy forward
and investors have reacted positively. We increased the Fund's position
slightly, ending the first half with 3% of assets in Japan. At June 30, the
portfolio's total Far East weighting, specifically in Hong Kong, Japan and
Australia, was 10.1%. We have been careful to buy primarily blue chip, large
capitalization stocks of companies with "transparent" (i.e., discernible)
financial statements. These include Cheung Kong, a diversified property
company, and Sun Hung Kai, a dominant residential developer, both based in Hong
Kong. During the first half we owned stocks in Singapore as well, which we sold
at significant gains.
In terms of sector exposure in the Fund, we continued to favor large "downtown"
office buildings in North America, where fundamentals remain strong and
barriers to entry are high. We increased the Fund's weighting to the retail
sector, buying at attractive prices after hysteria over e-commerce pushed
retail store stocks substantially lower. Given strong global growth, we
increased the Fund's allocation to hotel stocks during the first half of 1999
as this sector is the most economically sensitive and offers some good values.
We also added selective positions in real estate service companies, such as
real estate brokers and management firms, which have contributed to
performance.
The Outlook
With sustained global economic growth and low interest rates, property stocks
should continue to provide investors with good risk-adjusted returns. We are
still very positive on North American real estate securities, which offer
steady growth and relatively low risk, with dividend yields at more than 7%.
Continental Europe should continue to do well, and will likely improve in the
second half of the year as many European economies continue on a healthy
trajectory and corporate restructurings move ahead. We are also more positive
on the euro's prospects for the balance of 1999. Asia is rife with both
opportunity and risk. The region's volatility presents trading opportunities
and, while cautious, we hope to take further advantage of this environment.
We would like to thank you for your participation in the Van Eck Worldwide Real
Estate Fund, and we look forward to working with you in the future.
[PHOTO]
/s/ Kevin L. Reid
Kevin L. Reid
Portfolio Manager
July 14, 1999
<PAGE>
Van Eck Worldwide Real Estate Fund
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Performance Record as of 6/30/99
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<TABLE>
<CAPTION>
Average Annual
Total Return
- ---------------------------------
<S> <C>
Since Inception (6/23/97) 8.3 %
- ---------------------------------
1 Year (0.3)%
- ---------------------------------
</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.
Geographical Weightings
as of June 30, 1999
[PIE CHART]
Canada 15.8%
Hong Kong 6.1%
France 5.4%
Japan 3.0%
United States 57.7%
Cash/Equivalents 5.7%
Other 6.3%
Sector Weightings
as of June 30, 1999
[PIE CHART]
Diversified 28.3%
Hotels 13.4%
Office/Industrial 25.8%
Residential 7.5%
Retail 13.3%
Specialty 6.0%
Cash/Equivalents 5.7%
<PAGE>
Van Eck Worldwide Real Estate Fund
Top Ten Equity Holdings as of June 30, 1999*
Brookfield Properties Corporation
(Canada, 3.2%)
Brookfield Properties is a North American office property company. The company
owns and manages a portfolio of properties in Canada and the U.S., and also
develops master-planned residential communities.
Oxford Properties Group, Inc.
(Canada, 3.2%)
Oxford Properties Group owns and manages commercial real estate. The company
provides property management, design and construction, leasing and other
financial management services. Oxford Properties manages office, retail, and
suburban properties in cities across Canada and the U.S.
Boston Properties, Inc.
(U.S., 3.0%)
Boston Properties develops, redevelops, acquires, manages, operates and leases
commercial office and industrial real estate properties. The company has a
significant presence in the Boston, Washington DC, San Francisco and midtown
Manhattan real estate markets.
Unibail (Union du Credit-Bail Immobilier)
(France, 2.8%)
Unibail leases and rents building space and finances real estate investments.
The company's properties are located primarily in Paris and the outlying
suburbs and most are comprised of major shopping centers and prime Paris office
buildings.
Host Marriott Corp.
(U.S., 2.7%)
Host Marriott owns controlling interests in luxury full-service hotels such as
Marriott, Ritz Carlton, Four Seasons, Hyatt and Swissotel brand names.
Starwood Hotels & Resorts Worldwide, Inc.
(U.S., 2.5%)
Starwood Hotels & Resorts is a hotel and gaming company that operates Sheraton,
Weston, St. Regis, Caesars and other brands. The company owns, manages and
franchises hotels and casinos worldwide.
TrizecHahn Corporation
(Canada, 2.5%)
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.
Sun Hung Kai Properties, Ltd.
(Hong Kong, 2.5%)
Sun Hung Kai Properties is an investment holding company. The principal
activities of its subsidiaries are, among others, property development and
investment, and hotel operations.
Cheung Kong (Holdings), Ltd.
(Hong Kong, 2.4%)
Cheung Kong is involved, through its subsidiaries, in property development and
investment, real estate agencies and investments in securities.
Excel Legacy Corporation
(U.S., 2.4%)
Excel Legacy is a real estate development company that makes real estate
investments through direct acquisition, development, financing and management
of properties and/or participation through debt financing or equity interests
of entities engaged in such businesses.
- -------
* Portfolio is subject to change.
<PAGE>
Worldwide Real Estate Fund
Schedule of Portfolio Investments
June 30, 1999 (Unaudited)
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<TABLE>
<CAPTION>
No. of Value
Country Shares Securities (a) (Note 1)
- -------------------------------------------------------------------------
<C> <C> <S> <C>
AUSTRALIA: 1.0%
4,000 Westfield Holdings Ltd. $ 24,474
----------
CANADA: 15.8%
5,000 Bentall Corp. 52,207
2,500 Boardwalk Equities, Inc. 25,338
6,000 Brookfield Properties Corp. 78,158
2,500 Cadillac Fairview Corp. 47,188
7,100 Cambridge Shopping Centers Ltd. 39,844
7,200 Oxford Properties Group, Inc. 76,403
3,000 TrizecHahn Corp. 61,125
----------
380,263
----------
FRANCE: 5.4%
150 Accor S.A. 37,637
175 Societe Fonciere Lyonnaise 24,885
75 Societe Fonciere Lyonnaise Warrants
(expiring 7/30/02) 49
500 Unibail S.A. 63,940
500 Unibail S.A. Warrants (expiring 5/11/04) 2,411
----------
128,922
----------
HONG KONG: 6.1%
6,500 Cheung Kong (Holdings), Ltd. 57,806
35,000 HKR International, Ltd. 30,224
6,500 Sun Hung Kai Properties, Ltd. 59,272
----------
147,302
----------
ITALY: 1.3%
70,000 Unione Immobiliare S.p.A. 31,017
----------
JAPAN: 3.0%
4,000 Mitsubishi Estate Co. Ltd. 39,014
4,000 Mitsui Fudoson Co. Ltd. 32,374
----------
71,388
----------
SPAIN: 1.6%
2,000 Metrovacesa, S.A. 39,137
----------
SWEDEN: 1.4%
2,000 Castellum AB 18,845
1,900 Diligentia AB 14,770
----------
33,615
----------
UNITED KINGDOM: 1.0%
3,000 British Land Co. PLC 25,065
----------
UNITED STATES: 57.7%
1,500 AMB Property Corp. 35,250
1,000 Apartment Investment & Management Co. 42,750
2,000 Bedford Property Investors, Inc. 35,750
2,000 Boston Properties, Inc. 71,750
2,600 Brandywine Realty Trust 51,513
2,000 Burnham Pacific Properties, Inc. 24,625
1,000 CarrAmerica Realty Corp. 25,000
2,000 CB Richard Ellis Service, Inc. 49,750
1,500 Cornerstone Properties, Inc. 23,813
1,600 Crescent Real Estate Equities Co. 38,000
1,500 Equity Office Properties Trust 38,438
</TABLE>
<TABLE>
<CAPTION>
No. of Value
Country Shares Securities (a) (Note 1)
- -------------------------------------------------------------------------------
<C> <C> <S> <C>
UNITED STATES (continued)
1,200 Equity Residential Properties Trust $ 54,075
12,000 Excel Legacy Corp. 57,000
8,000 Grubb & Ellis Co. 40,000
3,500 Hilton Hotels Corp. 49,656
15,000 Homestead Village, Inc. 36,563
5,500 Host Marriott Corp. 65,313
5,750 Interstate Hotels Corp. 23,719
1,000 Jones Lang LaSalle, Inc. 29,812
1,800 Kilroy Reality Corp. 43,875
1,200 Macerich Co. (The) 31,500
1,500 Mack-Cali Realty Corp. 46,406
4,000 Meditrust Corp. 52,250
800 Mills Corp. 17,350
1,500 New Plan Excel Realty Trust 27,000
1,000 Pan Pacific Co. 19,375
1,700 Prentiss Properties Trust 39,950
2,500 Prologis Trust 50,625
2,000 Security Capital Group, Inc. 29,125
1,500 Simon Property Group, Inc. 38,062
2,000 Starwood Hotels & Resorts Worldwide, Inc. 61,125
1,500 Trammell Crow Co. 24,656
1,000 TriNet Corporate Realty Trust, Inc. 27,687
2,800 Westfield America, Inc. 42,175
10,755 Wyndham International, Inc. 48,396
----------
1,392,334
----------
Total Stocks and Other Investments: 94.3%
(Cost: $2,249,691) 2,273,517
----------
<CAPTION>
Principal
Amount Short-Term Obligations
- -------------------------------------------------------------------------------
<C> <C> <S> <C>
$115,000 American Express Co., due 7/01/99 Interest
Yield 4.42% 115,000
200,000 U.S. Treasury Bill, due 7/29/99 Interest Yield
5.58% 199,322
----------
Total Short-Term Obligations: 13.0%
(Amortized Cost: $314,322) 314,322
----------
Total Investments: 107.3%
(Cost: $2,564,013) 2,587,839
Other assets less liabilities: (7.3%) (175,929)
----------
Net Assets: 100% $2,411,910
==========
</TABLE>
<TABLE>
<CAPTION>
Summary of
Investments % of
By Industry Net Assets
- ----------- ----------
<S> <C>
Diversified 28.3%
Hotels 13.4%
Office/Industrial 25.8%
Residential 7.5%
Retail 13.3%
</TABLE>
<TABLE>
<CAPTION>
Summary of
Investments % of
By Industry Net Assets
- ----------- ----------
<S> <C>
Specialty 6.0%
Short-Term Obligations 13.0%
Other assets less liabilities (7.3%)
-----
100.0%
=====
</TABLE>
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(a) Unless otherwise indicated, securities owned are shares of common stock.
See Notes to Financial Statements
<PAGE>
Worldwide Real Estate Fund Financial Statements
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Statement of Assets and Liabilities
June 30, 1999 (Unaudited)
<TABLE>
<S> <C>
Assets:
Investments at value (cost, $2,564,013) (Note 1)................... $2,587,839
Cash............................................................... 458
Receivables:
Dividends......................................................... 9,552
Capital shares sold............................................... 8,309
Unrealized appreciation on forward foreign currency contracts (Note
5)................................................................ 1,291
Deferred organization costs (Note 1)............................... 4,273
----------
Total assets..................................................... 2,611,722
----------
Liabilities:
Payables:
Securities purchased.............................................. 185,966
Capital shares redeemed........................................... 1,405
Accounts payable.................................................. 12,441
----------
Total liabilities................................................ 199,812
----------
Net assets......................................................... $2,411,910
==========
Shares outstanding................................................. 233,340
==========
Net asset value, redemption and offering price per share
($2,411,910/233,340).............................................. $10.34
==========
Net assets consist of:
Aggregate paid in capital......................................... $2,365,470
Unrealized appreciation of investments, forward foreign currency
contracts and foreign currencies................................. 25,583
Undistributed net investment income............................... 23,584
Accumulated realized loss......................................... (2,727)
----------
$2,411,910
==========
</TABLE>
Statement of Operations
Six Months Ended June 30, 1999 (Unaudited)
<TABLE>
<S> <C> <C>
Income: (Note 1)
Dividends (net of foreign taxes withheld of $960).......... $ 37,953
Interest................................................... 6,040
--------
Total income............................................. 43,993
Expenses:
Management (Note 2)........................................ $ 9,969
Adminstration (Note 2)..................................... 1,537
Reports to shareholders.................................... 9,863
Professional............................................... 6,146
Amortization of deferred organization costs (Note 1)....... 710
Custodian.................................................. 3,235
Trustees' fees and expenses................................ 119
Other...................................................... 388
--------
Total expenses........................................... 31,967
Expenses assumed by the Adviser and reduced by brokerage
and custodian fee arrangements (Note 2)................... (18,475)
--------
Net expenses............................................. 13,492
--------
Net investment income...................................... 30,501
--------
Realized and Unrealized Gain on Investments (Note 3):
Realized gain from security transactions................... 148,958
Realized gain from foreign currency transactions........... 1,651
Change in unrealized depreciation of forward foreign
currency contracts and foreign currencies................. 2,791
Change in unrealized depreciation of investments........... 28,520
--------
Net gain on investments, forward foreign currency contracts
and foreign currencies.................................... 181,920
--------
Net Increase in Net Assets Resulting from Operations....... $212,421
========
</TABLE>
See Notes to Financial Statements
<PAGE>
Worldwide Real Estate Fund Financial Statements
- --------------------------------------------------------------------------------
Statement of Changes in Net Assets
<TABLE>
<CAPTION>
Six Months
Ended
June 30, Year Ended
1999 December 31,
(Unaudited) 1998
----------- ------------
<S> <C> <C>
Increase in Net Assets:
Operations:
Net investment income................................ $ 30,501 $ 41,126
Realized gain (loss) from security transactions...... 148,958 (151,377)
Realized gain (loss) from foreign currency
transactions........................................ 1,651 (7,007)
Change in unrealized appreciation (depreciation) of
forward foreign currency contracts and foreign
currencies.......................................... 2,791 (1,096)
Change in unrealized appreciation (depreciation) of
investments......................................... 28,520 (18,968)
---------- ----------
Increase (decrease) in net assets resulting from
operations.......................................... 212,421 (137,322)
---------- ----------
Dividends and distributions to shareholders from:
Net investment income................................ (38,540) (13,400)
Net realized gains................................... -- (70,525)
---------- ----------
Total dividends and distributions.................... (38,540) (83,925)
---------- ----------
Capital share transactions*:
Net proceeds from sales of shares.................... 876,781 1,425,098
Reinvestment of dividends............................ 38,540 83,925
---------- ----------
915,321 1,509,023
Cost of shares reacquired............................ (583,670) (225,204)
---------- ----------
Increase in net assets resulting from capital share
transactions........................................ 331,651 1,283,819
---------- ----------
Total increase in net assets......................... 505,532 1,062,572
Net Assets:
Beginning of period................................... 1,906,378 843,806
---------- ----------
End of period (including undistributed net investment
income of $23,584 and $29,972, respectively)......... $2,411,910 $1,906,378
========== ==========
*Shares of Beneficial Interest Issued and Redeemed
(unlimited number of $.001 par value shares
authorized)
Shares sold.......................................... 90,098 145,519
Reinvestment of dividends............................ 4,171 7,851
---------- ----------
94,269 153,370
Shares reacquired.................................... (60,691) (24,133)
---------- ----------
Net increase......................................... 33,578 129,237
========== ==========
</TABLE>
See Notes to Financial Statements
<PAGE>
Worldwide Real Estate Fund
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Financial Highlights
For a share outstanding throughout each period
<TABLE>
<CAPTION>
Six Months
Ended For the Period
June 30, Year Ended June 23, 1997(a)
1999 December 31, to December 31,
(Unaudited) 1998 1997
----------- ------------ ----------------
<S> <C> <C> <C>
Net Asset Value, Beginning of Period. $ 9.54 $ 11.96 $10.00
------ ------- ------
Income From Investment Operations:
Net Investment Income............... 0.14 0.22 0.18
Net Gain (Loss) on Investments (both
realized and unrealized)........... 0.86 (1.45) 1.78
------ ------- ------
Total From Investment Operations..... 1.00 (1.23) 1.96
------ ------- ------
Less Dividends and Distributions:
Dividends from Net Investment
Income............................. (0.20) (0.19) --
Distributions from Capital Gains.... -- (1.00) --
------ ------- ------
Total Dividends and Distributions.... (0.20) (1.19) --
------ ------- ------
Net Asset Value, End of Period....... $10.34 $ 9.54 $11.96
====== ======= ======
Total Return (b)..................... 10.73% (11.35%) 19.60%
- ---------------------------------------------------------------------------------
Ratios/Supplementary Data
Net Assets, End of Period (000)...... $2,412 $ 1,906 $ 844
Ratio of Gross Expenses to Average
Net Assets.......................... 3.21%(c) 5.32% 4.92%(c)
Ratio of Net Expenses to Average Net
Assets.............................. 1.35%(c) 0.89% 0.00%(c)
Ratio of Net Investment Income to
Average Net Assets.................. 3.06%(c) 3.33% 3.62%(c)
Portfolio Turnover Rate.............. 101% 107% 123%
</TABLE>
- -------
(a) Commencement of operations.
(b) 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 returns for periods of less than one year
are not annualized.
(c) 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 Real Estate Fund series (the "Fund"), a
diversified fund of the Trust, in the preparation of its financial statements.
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. 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.
F. Deferred organization costs are being amortized over a period not to exceed
five years.
Note 2--Van Eck Associates Corporation (the "Adviser") earns fees for
investment management and advisory services. The fee is based on an annual
rate of 1% of the average daily net assets. The Adviser agreed to assume
expenses exceeding 1% of average daily net assets except interest, taxes,
brokerage commissions and extraordinary expenses for the period January 1,
1999 to February 28, 1999.
<PAGE>
Worldwide Real Estate Fund
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Notes to Financial Statements (continued)
Beginning March 1, 1999, the Adviser agreed to assume expenses exceeding 1.5%
of average daily net assets except interest, taxes, brokerage commissions and
extraordinary expenses until July 31, 1999. For the six months ended June 30,
1999 the Adviser assumed expenses in the amount of $15,497. 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 six months ended June 30, 1999,
the Adviser agreed to assume such costs.
The Fund has a fee arrangement based on cash balances left on deposit with the
custodian, which reduced the Fund's operating expenses by $2,978 for the six
months ended June 30, 1999. 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 $2,198,347 and $1,786,329, 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 $2,564,013. As of June 30, 1999, net
unrealized appreciation for federal income tax purposes aggregated $23,826, of
which $121,430 related to appreciated securities and $97,604 related to
depreciated securities. As of December 31, 1998, the Fund had a capital loss
carryforward of $95,300 available, expiring December 31, 2006.
Note 4--The Fund may purchase securities on foreign exchanges. Securities of
foreign issuers involve special risks and considerations not typically
associated with investing in U.S. issuers. These risks include devaluation of
currencies, less reliable information about issuers, different securities
transactions clearance and settlement practices, and future adverse political
and economic developments. These risks are heightened for investments in
emerging market countries. Moreover, securities of many foreign issuers and
their markets may be less liquid and their prices more volatile than those of
comparable U.S. issuers.
Note 5--Forward Foreign Currency Contracts--The Fund bought and sold forward
foreign currency contracts to settle purchases and sales of foreign
denominated securities. The Fund may incur additional risk from investments in
forward foreign currency contracts if the counterparty is unable to fulfill
its obligations or there are unanticipated movements of the foreign currency
relative to the U.S. dollar. Realized and unrealized gains and losses from
forward foreign currency contracts are included in realized and unrealized
gain (loss) from foreign currency transactions. At June 30, 1999, the Fund had
the following outstanding forward foreign currency contract:
<TABLE>
<CAPTION>
Value at
Settlement Current Unrealized
Contract Date Value Appreciation
-------- ---------- ------- ------------
<C> <S> <C> <C> <C>
Forward Foreign Currency Sell Contract:
JPY 3,500,000 expiring 7/08/99 $28,941 $30,232 $1,291
======
</TABLE>
Note 6--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
asset and corresponding liability of the Fund's portion of the plan is $270.
Note 7--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.
