<PAGE>
Van Eck Global
Worldwide Insurance Trust
[GRAPHIC]
SEMI-ANNUAL REPORT
June 30, 1999
discipline
Worldwide Emerging Markets Fund
allocation
diversify
GLOBAL INVESTMENTS SINCE 1955
<PAGE>
Van Eck Worldwide Emerging Markets Fund
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Dear Shareholder:
We are pleased to report that the emerging stock markets made substantial gains
in the first half of 1999, led by the Asia region. After the travails of 1998,
the final shoe to drop on emerging markets was the Brazilian devaluation in
January. After that event, emerging markets bounced back, fueled by ample
liquidity and a rebound in economic growth that took many by surprise. The Van
Eck Worldwide Emerging Markets Fund gained 45.9% in the first six months of
1999, comparing favorably to the Morgan Stanley Capital International Emerging
Markets Free Index, which rose 39.9% over the same period. As always, we strive
to achieve competitive returns while controlling risk.
Review
Asian markets posted large gains during the period under review, led by China
and Indonesia. These rallies were fueled by strong financial liquidity as Asia
continues to run large trade surpluses and the flow of incoming foreign
investments has been strong. Both of these factors would naturally lead to a
strengthening of local currencies. However, to ensure that the competitive gain
won by devaluation is not whittled away, Asian governments have intervened (or
threatened to intervene) by selling local currencies and buying foreign
currencies to prevent substantial currency appreciation, thereby providing the
domestic financial systems with plenty of liquidity. The most obvious
manifestation of this is in sharply lower interest rates, many of which are
below pre-crisis levels. As the attraction of putting money on deposit with
banks has lessened, money has instead been directed into stocks.
This liquidity may have been responsible for the initial surge in stock prices,
but the improving fundamentals certainly justify further price increases. Not
only are there increasing signs of economic recovery, but there are many
examples of value-enhancing corporate restructuring taking place. These two
factors combined should cause a very strong upturn in Asian earnings for at
least this year and next.
Latin America's major markets, though lagging the performance of Asian markets,
made progress during the first six months of 1999. In particular, the Mexican
market was strong, feeding off the continued strength of the U.S. economy.
The European, Middle East and African regions had mixed but generally positive
performance during this period. The Turkish market performed well as the
economic and political situation there seems to be improving, while Hungary was
disappointing, in part due to the conflict in Kosovo.
Review by Market
The Hong Kong market began the year in relatively poor shape. The economy
appeared to be lagging other Asian economies due to high real interest rates
and a perception that the Chinese economy was still slowing despite huge
efforts to revive growth through government spending. In addition, there was an
overhang of stock from government stock market support in 1998. As the year
progressed, more positive news emerged and the Hong Kong market ended the first
half up 34% in U.S. dollar terms. Although China's WTO (World Trade
Organization) talks with the U.S. did not ultimately bear fruit, significant
concessions were made and the commitment to liberalization and reform in China
is heartening. The most significant change for both China and Hong Kong, in our
opinion, is the shift to aggressive reflation in China, despite the fact that a
greater level of reflation may cause the depreciation of the Chinese currency
at some time in the future. In the second quarter, we added to China-related
stocks, including China Everbright (a financial conglomerate) and China
Telecom.
The Taiwanese market lagged behind other Asian markets, although it still
managed to gain 32% in the first half. The Taiwanese economy did not experience
the same excesses as other Asian economies, principally because capital
controls are tighter in Taiwan. The economy is therefore not quite on the same
track as other Asian economies and will not rebound as dramatically. Because of
these capital controls, the Taiwanese market is particularly sensitive
<PAGE>
Van Eck Worldwide Emerging Markets Fund
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to inward capital flows generated by strong exports. The key to exports is the
electronics cycle, which has turned very positive. Consequently, your Fund has
been building up positions in leading stocks in the electronics sector, such
as Acer and Asustek.
In economic terms, the biggest rebound has been seen in Korea, which is
currently growing at about 7%. Huge inflows into domestic mutual funds have
propelled the market upwards, allowing many indebted companies to issue equity
to reduce their debt-to-equity ratios. The market (+63% in the first half) has
benefited significantly from company restructuring plans, which have reduced
costs and increased the low returns on equity that have been the norm in the
past.
Malaysia (+38%) successfully defied the skeptics by engineering a recovery in
its domestic economy despite (or perhaps because of) capital controls that
were put in place last year. These capital controls have now been
substantially lifted and replaced by a staggered capital gains tax. Political
infighting was a focus for the market in the first half as the corruption
trial of the former Deputy Prime Minister Anwar Ibrahim made headlines.
Although the political noise has abated somewhat, Prime Minister Mahathir may
be tempted to call early elections, which would probably be positive for
stocks. Looking to the next quarter, Malaysia has room to reduce interest
rates further and this is what typically drives performance in this market.
The Fund has remained overweight in Indonesia throughout the last six months,
participating fully in a market that rose 98% over that period. The key event
for Indonesia was the first fully democratic elections for 30 years, which
took place in the second quarter. These elections were conducted in a
substantially more peaceful atmosphere than many dared to hope for. On the
negative side, the counting of votes has taken far longer than anticipated,
giving rise to charges of manipulation. Although the final results have yet to
be announced, it appears clear that Megawati Sukarnoputri's PDI party has
secured the largest amount of votes. The next stage is the election of the
President, which will involve a great deal of political maneuvering among the
many parties. Meanwhile, the economy returned to growth in the first quarter
of 1999. Although the growth was only 0.3%, this was substantially better than
expected. Interest rates have also declined dramatically from over 40% to 17%
at June 30. The Fund is currently invested in the banking and automotive
sectors in this market.
The Philippine market (+29%) was driven by indications of recovery in domestic
consumption, frequent reductions in interest rates, and a pickup in corporate
mergers and acquisitions activity. The Fund is currently invested in stocks
that should benefit from these trends. These range from the nation's leading
fast food company (Jollibee) to its dominant telecommunications operator
(PLDT).
With improving Asian trade and strong electronics orders, it is not surprising
that Singapore stocks fared well in the first half of 1999, rising 53%.
Singapore companies have been among the most eager to restructure, which has
also contributed to returns.
In Thailand (+46%), the pace of restructuring non-performing loans has picked
up over the last few months, contributing to the reduction of these bad debts.
This process has been substantially aided by the passage of a number of
measures to establish a more effective bankruptcy procedure. Continued
interest rate cuts have also helped. Just as importantly, the banks have
demonstrated more zeal to go after recalcitrant
debtors. The Fund is overweight domestic consumption, property and finance
stocks.
After a strong start to the year, the Indian market failed to keep pace with
the rest of Asia in the second quarter, (yet still ended the first half up
33%). This was largely due to the fall of the Indian government, which lost a
vote of confidence by one vote, marking the end of the third Indian Government
in three years. Logistical difficulties have meant the postponement of the
general election until September, with the final result not available until
October. The resulting political hiatus has not been particularly helpful, nor
has the ongoing military dispute in Kashmir. On the positive
<PAGE>
Van Eck Worldwide Emerging Markets Fund
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side, statistics such as cement sales are pointing to a pickup in the economy,
with subdued inflation.
The Latin markets began 1999 very poorly, as market concerns over the
sustainability of the crawling peg exchange rate in Brazil proved correct.
Brazil abandoned its defense of the peg and adopted a floating exchange rate in
mid-January. The real (Brazil's currency) lost over 40% of its value, but
stabilized and rebounded somewhat after the appointment of Arminio Fraga, a
former Soros employee, as head of the Central Bank. Fraga adopted an inflation
target and negotiated an emergency funding program from the IMF and other
multilateral institutions. Early forecasts as to the extent of the contraction
in the Brazilian economy have proved to be overly pessimistic and many
economists now believe that economic growth will decline by less than 1%. The
Brazilian market rose 18% in dollar terms in the first half, although many of
the Fund's positions have performed substantially better. For example, steel
maker Gerdau rose 124% and Petrobras, the national oil company, rose 37%.
The Mexican market initially sold off with Brazil, but rebounded strongly as
investors began to realize the extent of its integration with the U.S. economy
through NAFTA. The Mexican peso strengthened almost 6% in the first half,
helped by strong oil prices. The Mexican government has been taking steps to
ensure that the usual end-of-presidential-term fiscal blowout does not occur.
The government has implemented a tight budget and pledged that oil revenues,
which are higher than expected, will be spent to pay down debt. In addition,
they have negotiated some $24 billion of emergency credit lines to avoid
reliance on volatile short-term money flows. The Mexican market rose 56% in the
first half, led by several of the Fund's holdings, such as Grupo Televisa and
banks Banacci and Bancomer.
The Argentine and Chilean economies were mired in recession in the first half
of 1999 with no signs of bottoming. Despite this fact, the stock markets
performed rather well in the first half with Argentina
rising 16% and Chile rising 17%. Stock market performance was largely driven by
foreign takeover activity. Repsol of Spain bought YPF, Argentina's largest
company, and Endesa Spain took control of Enersis and Endesa Chile, both in the
Chilean electricity sector. A recovery in commodity prices, particularly copper
and oil, has improved sentiment slightly but a significant turnaround in these
two economies is not expected until late in the second half. The Fund is
underweight in both markets.
The Andean Pact countries, Colombia, Peru and Venezuela, have been largely
ignored in the first half of 1999 with investors focusing on their more liquid
neighbors. The Fund took a position in CANTV, the Venezuelan phone company, as
it was trading at a significant discount to its peers and rising oil prices
should allow a pickup in Venezuelan GDP growth.
The EMEA markets (Europe, Middle East and Africa) have been driven by
convergence towards Western European economic fundamentals. However, economic
growth in Europe was slow in the first half of 1999, which had a negative
effect on the economic performance of many countries on the edge of the EU.
Conflict in Kosovo created volatility and is likely to lead to a slowdown in
tourism to the region.
The Greek market had a spectacular start to the year, fueled by expectations of
early EMU entry, ending the first half up 32%. The escalation of the Kosovo
conflict increased volatility, but relief buying by retail investors post-
Kosovo supported the market. We have found some selective opportunities but
regard the market as generally expensive and have an underweight position.
The Turkish market has been very strong, rising 42%. However, the market has
been volatile, with politics at center stage and the economy in a deep
recession. Turkish police arrested Ocalan, the leader of the PKK Kurdish
separatist group, boosting the popularity of Prime Minister Ecevit. His party
subsequently gained the most seats in a snap election and he is now leading a
strong reform-minded coalition. Recent talks with the IMF have been promising
and a number of reforms in social security and banking have been
<PAGE>
Van Eck Worldwide Emerging Markets Fund
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proposed. We are cautiously optimistic on the Turkish market and have an
overweight position.
Israel also experienced elections and a slow economy in the first half of
1999. However, a succession of interest rate cuts and hopes for the peace
process have led to a 41% rise in the stock market. The Fund is overweight
Israel, particularly in the world class technology sector that features many
companies dominant in particular niches such as Orbotech, a world market
leader in automated optical inspection equipment.
Poland and Hungary were more affected by the slowdown in Western Europe than
their southern counterparts as a large proportion of their exports are to the
EU. The Hungarian market has performed poorly so far in 1999, losing 8%.
Investors are concerned by the size of the budget and current account
deficits, and the sustainability of the currency. The Fund is overweight
Hungary as we feel these concerns are overblown and the country has some
excellent companies at cheap valuations. The Polish market rose 18% in the
first half of 1999. The Fund is overweight, focusing on the telecom and
banking sectors.
The Fund participated in the spectacular rise in the Russian market, up 113%
in the first half, through a position in Lukoil, Russia's largest oil company.
However, although macroeconomic fundamentals seem to be gradually improving,
Russian risk remains high. Politics will be the main focus as Parliamentary
elections are to be held in December and Presidential elections in 2000.
In South Africa (+27%), the general election was won by the ANC but with less
than the two-thirds majority that would have allowed them to alter the
constitution. This result helped calm some of the fears that the independence
of the central bank might be compromised. Macroeconomic numbers have shown
encouraging stability, and the pickup in most commodity prices, with the
exception of gold, should be positive.
The Outlook
The global environment is benign, with good liquidity and overall OECD growth
expectations being revised upwards. In particular, Japanese demand is
strengthening in the areas that matter most to Asia, such as electronics and
tourism.
The economic recovery in Asia is well underway and, in our view, it goes
beyond the year-on-year effect of a poor 1998. While some quibble about the
quality and sustainability of the growth, we believe the breadth of the
recovery is impressive. Consumption is strengthening as unemployment falls,
savings get spent and the wealth effect kicks in. Fiscal spending should
remain strong and exports should get a boost from rising intra-Asian trade.
Crucially, progress is being made in clearing financial systems of bad debt,
which should allow banks to start lending again.
Latin economies and markets are likely to benefit from the current recovery in
commodity prices, although remain dependent on the availability of foreign
capital. Assuming a gradual reduction in interest rate spreads, economic
recovery and diminishing political risk should lead Latin markets to strong
performance in the second half. Valuations remain attractive and earnings
growth is returning.
European emerging markets generally have encouraging prospects for the second
half. European growth is rebounding, the convergence process remains on track,
and reform-minded governments have been elected in Turkey and Israel. Earnings
are likely to improve and valuations are still reasonable.
For these reasons we look forward to the second half of 1999 and beyond with a
good deal of confidence for emerging markets. As we approach the end of the
year, we may see quiet, thin trading conditions due to Y2K concerns. We
believe that this should only be a temporary phenomenon and the increasingly
strong fundamentals of emerging markets as an asset class should bring renewed
momentum to these markets thereafter.
<PAGE>
Van Eck Worldwide Emerging Markets Fund
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We would like to thank you for your participation in the Van Eck Worldwide
Emerging Markets Fund, and we look forward to working with you in the future.
[PHOTO] [PHOTO]
/s/ David A. Semple /s/ David M. Hulme
David A. Semple David M. Hulme
Co-Portfolio Co-Portfolio
Manager Manager
July 14, 1999
Note: Effective July 1, 1999, David Hulme was named co-portfolio manager of the
Van Eck Worldwide Emerging Markets Fund, along with David Semple, who has been
co-portfolio manager since March 1999.
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Performance Record as of 6/30/99
<TABLE>
- ---------------------------------
<CAPTION>
Average Annual
Total Return
- ---------------------------------
<S> <C>
Since Inception (12/21/95) 1.8%
- ---------------------------------
1 Year 24.4%
- ---------------------------------
</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]
South Korea 10.2%
Brazil 8.8%
Greece 2.7%
Hong Kong 6.2%
Hungary 2.9%
India 6.8%
Israel 4.2%
Malaysia 4.1%
Mexico 9.0%
Philippines 3.8%
Singapore 4.0%
South Africa 5.3%
Thailand 5.1%
Other 7.1%
Cash/Equivalents 9.2%
Indonesia 5.8%
Taiwan 4.8%
<PAGE>
Van Eck Worldwide Emerging Markets Fund
Top Ten Equity Holdings as of June 30, 1999*
SK Telecom Co. Ltd.
(South Korea, 4.0%)
SK Telecom is Korea's market leader in mobile telecommunications, with a market
share of 42%. The industry has been growing quickly even during the recession
in Korea, partly due to handset subsidies offered by the network operators,
which have now been phased out.
R.O.C. Taiwan Fund
(Taiwan, 2.4%)
The R.O.C. Fund is a closed-end mutual fund whose objective is to invest in
publicly traded securities of Taiwanese companies. The fund is trading at a
discount to the underlying value of its assets.
Shin Corporation PLC
(Thailand, 1.8%)
Shin Corporation, through its listed subsidiaries, is involved in mobile
telecommunications and satellite operations. After reorganizing the group, Shin
Corp. is in a position to take advantage of the expected liberalization and
consolidation of the Thai telecom industry.
Commerce Asset Holding Bhd.
(Malaysia, 1.7%)
Commerce Asset is a financial services holding company principally engaged in
commercial banking. Bank of Commerce, one of its subsidiaries, is currently
merging with Bank Bumi, which was the second- largest commercial bank in
Malaysia, on terms that are very advantageous to Bank of Commerce. The merger
will greatly enhance the asset size of its banking business, and the number of
branches that it runs.
Grupo Televisa S.A.
(Mexico, 1.5%)
Televisa is the largest media company in Latin America with interests in
television, publishing, music and satellite broadcasting. Televisa enjoys
television ratings of over 80% and has been raising advertising tariffs, which
remain extremely low by international standards. A huge cost-cutting program
has boosted margins significantly, allowed the pay down of debt and enhanced
earnings. The company is valued at a 30% discount to similar companies in the
U.S. despite having superior growth prospects.
Grupo Financiero Banamex S.A.
(Mexico, 1.4%)
Banamex is Mexico's second-largest bank, with associates in insurance, asset
management and other financial services. Widespread loan default in the Mexican
banking system in 1995 resulted in a government bailout of the banking sector.
Since then, the bank has been recapitalized and most loans have been
restructured. Accounting regulation changes have brought more transparency to
Mexican bank financial statements. The Mexican banking sector currently trades
at around a 25% discount to the Latin American average. Banamex is also part of
a consortium providing long distance telephone service in Mexico and has a
significant market share in the nascent private pension fund industry.
Fomento Economico Mexicano (Femsa) S.A.
(Mexico, 1.3%)
Femsa has four main areas of business: soft drink bottling, brewing, packaging
and convenience stores. Femsa has a bottling joint venture with the Coca Cola
franchises for Mexico City and Buenos Aires. The beer division is seeing rising
volumes as a result of Mexico's economic recovery. The packaging division is
the most efficient in Latin America and the convenience stores are expanding
steadily. Femsa is an interesting play on economic growth and the rise in
disposable incomes in Mexico and Argentina.
Magyar Tavkozlesi (Matav)
(Hungary, 1.3%)
Matav is the national telecom company in Hungary and has a monopoly on long
distance and international calls until 2001. Matav is well placed to face
competition on the expiration of its monopoly as it has substantially
rebalanced its tariffs. Matav has almost 60% of the fast-growing Hungarian
cellular market. A cost-cutting program has largely been implemented and has
delivered excellent earnings growth. Matav is controlled by a consortium which
includes Ameritech and Deutsche Telekom.
<PAGE>
Van Eck Worldwide Emerging Markets Fund
Top Ten Equity Holdings as of June 30, 1999*
Orbotech, Ltd.
(Israel, 1.2%)
Orbotech designs, develops and manufactures automated optical inspection
systems for inspecting and identifying defects in the production process of the
printed circuit board (PCB) and liquid crystal flat panel display (FPD)
industries. The company also produces computer-aided manufacturing systems and
laser plotters. Demand for automated inspection systems is increasing as PCBs
and FPDs become more complex and manual inspection becomes no longer viable.
Orbotech has recently strengthened its presence in Europe and Japan through
takeovers.
PT Bank Pan Indonesia
(Indonesia, 1.2%)
Panin Bank provides a range of banking services in Indonesia. Although much of
the Indonesian banking sector was devastated during the recession that
Indonesia suffered, Panin Bank was exempt from the government's
recapitalization program due to its strong capital base at the start of the
crisis. The ANZ bank group of Australia will be a 20% shareholder after a
current rights issue.
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*Portfolio is subject to change.
<PAGE>
Worldwide Emerging Markets Fund
Schedule of Portfolio Investments
June 30, 1999 (Unaudited)
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<TABLE>
<CAPTION>
No. of
Shares or
Principal Value
Country Amount Securities (a) (Note 1)
- -------------------------------------------------------------------------------
<C> <C> <S> <C>
ARGENTINA: 0.8%
16,700 Banco del Suquia S.A. (Negotiable
Obligations) (d) $ 9,019
30,000 Banco Galicia Y Buenos Aires S.A. de C.V.
(ADR) 607,500
120,000 Perez Companc S.A. 690,093
------------
1,306,612
------------
BRAZIL: 8.8%
26,700,000 Banco de Estado de Sao Paulo S.A. (Banespa) 1,140,186
650,000 Banco Itau S.A. Pfd. 334,559
800,000 Caemi Mineraca e Metalurgia S.A. 26,697
62,000 CBD (PAO DE AZUCAR) (ADR) 1,158,625
2,000,000 Celular CRT Participacoes 271,493
17,111,100 CIA Eletricidade de Bahia (Coelba) 425,842
160,000 CIA Paranaense de Energia (Copel) Pfd. (ADR) 1,340,000
2,000,000 CIA Riograndense Telecomunications 476,244
50,000 Companhia Vale do Rio Doce 995,475
45,000,000 Gerdau S.A. 738,376
25,000,000 Metalurgica Gerdau PN Local 749,434
11,000,000 Petroleo Brasileiro S.A. 1,701,640
2 Tele Centro Oeste Celular 8
25,000 Tele Centro Sul Participacoes S.A. (ADR) 1,387,500
82,680 Tele Norte Leste Participacoes S.A. (ADR) 1,534,747
2,700,000 Telecomunicacoes de Sao Paulo S.A. (Telesp) 220,673
1,500,000 Telecomunicacoes de Sao Paulo S.A. (Telesp)
Pfd. 178,167
41,040 Telecomunicacoes de Sao Paulo S.A. Rts Pfd. 11
6,470,000 Telesp Celular S.A. 208,628
9,000,000 Telesp Celular Pref. 468,326
20,000 Telesp Participacoes (ADR) 457,500
------------
13,814,131
------------
CHINA: 1.5%
USD 70,000 Huaneng Power International Convertible Bond
1.75%, 5/21/04 1,198,771
13,500,000 Maanshan Iron and
Steel Co. Ltd. 1,235,387
------------
2,434,158
------------
</TABLE>
<TABLE>
<CAPTION>
No. of
Shares or
Principal Value
Country Amount Securities (a) (Note 1)
- ------------------------------------------------------------------------------
<C> <C> <S> <C>
EGYPT: 0.4%
19,600 Al-Ahram Beverages Co. S.A.E. (GDR) $ 560,560
------------
GREECE: 2.7%
8,325 Alpha Credit Bank 535,990
17,350 Folli-Follie ABEE 480,935
22,000 Goody's S.A. 586,806
62,250 Hellenic Telecommunications S.A. (OTE) (b) 1,203,338
1,830 Interamerican Insurance Co. 40,628
4,645 National Bank of Greece S.A. 303,479
55,807 Sarantis S.A. 1,100,033
------------
4,251,209
------------
HONG KONG: 6.2%
15,000 Cheung Kong (Holdings) Ltd. 133,398
1,500,000 China Everbright Pacific Ltd. 1,498,318
400,000 China Telecom (Hong Kong) Ltd. 1,111,011
750,000 Cosco Pacific Ltd. 623,494
1,730,000 Giordano International Ltd. 1,226,365
1,000,000 HKR International Ltd. 863,547
1,200,000 JCG Holdings Ltd. 572,261
100,000 Johnson Electronics Holdings 412,440
358,000 Li & Fung Ltd. 858,236
235,000 Pacific Century Insurance
Co. Ltd. 190,212
2,400,000 Sino Land Co. 1,376,519
5,000,000 South Seas Development Co. 431,773
90,000 Television Broadcasts Co. 422,236
------------
9,719,810
------------
HUNGARY: 2.9%
15,500 Gedeon Richter Rt. (Sponsored GDR) 678,125
74,200 Magyar Tavkozlesi Rt.
(Matav) (b) 2,040,500
73,200 MOL Magyar Olaj-es Gazipari Rt. (GDR) 1,753,140
------------
4,471,765
------------
INDIA: 6.8%
25,000 Hindustan Lever Ltd. 1,371,600
255,000 Hindustan Petroleum
Corp. Ltd. 1,460,754
11,700 Housing Development Finance Corporation Ltd. 599.294
52,500 ITC Ltd. 1,325,812
</TABLE>
See Notes to Financial Statements
<PAGE>
Worldwide Emerging Markets Fund
Schedule of Portfolio Investments (Continued)
June 30, 1999 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
No. of
Shares or
Principal Value
Country Amount Securities (a) (Note 1)
- --------------------------------------------------------------
<C> <C> <S> <C>
INDIA: (continued)
250,000 Larsen & Toubro Ltd. $ 1,651,106
240,000 Mahanagar Telephone
Nigam Ltd. 1,029,045
16,500 NIIT Ltd. 773,271
52,500 Satyam Computer Services
Ltd. 1,534,518
46,363 Videsh Sanchar Nigam
Ltd. 976,850
------------
10,722,250
------------
INDONESIA: 5.8%
USD 2,700,000 PT Astra International
Bond 8.75%,
8/07/03 (e) 1,458,000
6,200,000 PT Bank Pan Indonesia
Tbk "F" 1,810,219
6,979,000 PT Bimantara Citra 1,528,248
7,500 PT Guadang Garam Tbk 20,474
1,250,500 PT Indofood Sukses
Makmur TbK 1,716,015
30,000,000 PT Lippo Bank Tbk 1,642,336
2,500,000 PT Pabrik Kertas Tjiwi
Kimia 967,153
------------
9,142,445
------------
ISRAEL: 4.2%
28,000 ECI Telecommunications
Ltd. 929,250
24,000 Gilat Satellite Networks
Ltd. 1,260,000
36,000 Nice Systems Ltd. (ADR) 992,250
36,000 Orbotech, Ltd. 1,876,500
31,500 Tecnomatix Technologies
Ltd. 551,250
18,540 Teva Pharmaceuticals
Industries Ltd. (ADR) 908,460
------------
6,517,710
------------
MALAYSIA: 4.1%
780,000 Berjaya Sports Toto
Berhad (d) 1,792,167
1,070,000 Commerce Asset Holdings
Berhad (d) 2,626,109
97,000 IOI Properties Berhad
(d) 159,556
375,000 MAA Holdings Berhad (d) 783,289
500,000 UMW Holdings Berhad (d) 1,116,188
------------
6,477,309
------------
</TABLE>
<TABLE>
<CAPTION>
No. of
Shares or
Principal Value
Country Amount Securities (a) (Note 1)
- -------------------------------------------------------------------------------
<C> <C> <S> <C>
MEXICO: 9.0%
1,400,000 Comerci Local (UBC UNIT) $ 1,456,476
350,000 Corp Internamericana de Entretenimiento S.A.
(Series B) 1,142,515
150,000 Corporacion GEO 636,942
52,180 Fomento Economico Mexicano, S.A. de C.V.
(ADR) 2,080,677
560,000 Grupo Continential S.A. 879,830
860,000 Grupo Financiero Banamex 2,163,694
5,000,000 Grupo Financiero Bancomer S.A. (GDR) 1,809,979
160,000 Grupo Mexico S.A. Series B 670,913
53,750 Grupo Televisa S.A. (GDR) 2,408,672
41,500 Kimberly Clark de Mexico S.A. (ADR) 846,675
------------
14,096,373
------------
PHILIPPINES: 3.8%
1,000,000 Benpres Holdings Corp. 236,530
222,600 Benpres Holdings Corp. (GDR) 1,062,915
5,750,000 DMCI Holdings, Inc. 338,501
700,000 La Tondena Distillers, Inc. 827,858
20,540,700 Metro Pacific Corp. 1,025,685
20,000 Philippine Long Distance Telephone Co. 602,500
405,000 Philippine National Bank 1,096,320
3,240,900 SM Prime Holdings, Inc. 732,503
------------
5,922,812
------------
POLAND: 1.7%
30,000 Bank Rozwoju Eksportu S.A. 943,588
50 Central European Foods,
Inc. (c)(d) 275,000
61,500 Elektrim Spolka Akcyjna S.A. 869,285
15,250 Softbank S.A. 528,206
------------
2,616,079
------------
ROMANIA: 0.2%
7,486,425 SNP Petrom (c)(d) 293,539
48,543 The Romanian Growth Fund (d) 60,679
------------
354,218
------------
</TABLE>
See Notes to Financial Statements
<PAGE>
Worldwide Emerging Markets Fund
Schedule of Portfolio Investments (Continued)
June 30, 1999 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
No. of Value
Country Shares Securities (a) (Note 1)
- -------------------------------------------------------------------------------
<C> <C> <S> <C>
SINGAPORE: 2.7%
250,000 Datacraft Asia Ltd. $ 1,090,000
250,000 Natsteel Electronics Ltd. 1,093,851
287,000 Pacific Century Insurance Holdings Ltd. 1,222,030
181,000 Star Cruises PLC 807,260
------------
4,213,141
------------
SOUTH AFRICA: 5.3%
100,000 Comparex Holdings Ltd. 629,738
50,000 Datatec Ltd. 722,542
245,000 Dimension Data Holdings Ltd. 1,084,062
1,205,000 FirstRand Ltd. 1,377,885
35,752 Liberty International PLC 236,703
76,113 Liberty Life Association of
Africa Ltd. 975,023
46,965 Nedcor Ltd. 1,063,168
674,900 Softline Ltd. 945,089
140,000 South African Breweries Ltd. 1,215,727
------------
8,249,937
------------
SOUTH KOREA: 10.2%
20,000 Cheil Jedang Corp. 1,574,082
33,150 Housing & Commercial Bank, Korea 1,045,335
110,000 Koram Bank 1,377,970
27,000 Korea Telecom 1,791,447
44,000 Pohang Iron & Steel 1,479,500
13,955 Samsung Electronics 1,531,131
4,099 S1 Corp. 789,699
278 S1 Corp. Rights (expiring 7/19/99) 12,633
16,980 SK Telecom Co. Ltd. 2,304,096
3,890 SK Telecom Co. Ltd. Rights (expiring 7/27/99) 206,234
3,949 SK Telecom Co. Ltd. Warrants (expiring
12/07/99) 3,816,462
------------
15,928,589
------------
TAIWAN: 4.8%
115,000 Acer, Inc. (GDR) 1,437,500
112,000 Asustek Computers, Inc. 1,612,800
470,000 R.O.C. Taiwan Fund 3,789,375
20,000 Taiwan Semiconductor Manufacturing Co. 680,000
------------
7,519,675
------------
</TABLE>
<TABLE>
<CAPTION>
No. of Value
Country Shares Securities (a) (Note 1)
- ---------------------------------------------------------------------------
<C> <C> <S> <C>
THAILAND: 5.1%
230,000 Bangkok Bank PLC $ 501,490
532,000 Capital Nomura Securities PLC 1,628,277
120,900 Grammy Entertainment PLC 406,056
720,000 MBK Properties and Development PLC 589,924
201,300 Pizza Co. PLC 706,076
1,000,000 Quality House Pub. Co. 589,112
650,000 Shin Corp. PLC 2,869,718
56,666 Siam City Cement PLC 125,856
291,000 Siam Pulp & Paper PLC 630,552
------------
8,047,061
------------
TURKEY: 1.8%
33,750,000 Akbank T.A.S. 495,724
10,250,000 Carsi Buyuk Magazacilik A.S. 352,100
3,625,000 Enka Holding Yatirim A.S. 626,910
6,108,600 Guney Buracilik A.S 224,310
30,498,000 Turkiye Garanti Bankasi A.S. 227,591
7,500,000 Vestel Elektronik A.S. 817,322
------------
2,743,957
------------
VENEZUELA: 0.7%
38,000 CANTV (ADR) 1,035,500
------------
Total Stocks and Other Investments: 89.5%
(cost: $112,630,237) 140,145,301
------------
<CAPTION>
No. of
Contracts Call Options Purchased: 1.3%
- ---------------------------------------------------------------------------
<C> <C> <S> <C>
SINGAPORE: 1.3%
103,000 Development Bank of Singapore Ltd. Zero
Strike Call Option (expiring 4/19/00) 1,092,700
110,000 Singapore Airlines Ltd. Zero Strike Call
Option (expiring 6/08/00) 956,129
------------
Total Call Options Purchased: 90.8%
(cost: $1,529,498) 2,048,829
------------
Total Investments: 90.8%
(cost: $114,159,735) 142,194,130
Other assets less liabilities: 9.2% 14,440,411
------------
Net Assets: 100% $156,634,541
============
</TABLE>
See Notes to Financial Statements
<PAGE>
Worldwide Emerging Markets Fund
Schedule of Portfolio Investments (Continued)
June 30, 1999 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Summary of
Investments % of
By Industry Net Assets
- ----------- ----------
<S> <C>
Automotive 1.6%
Building,
Construction &
Materials 1.1%
Computer
Services,
Software &
Equipment 5.5%
Conglomerate 5.0%
Consumer
Products &
Services 1.9%
Electronics &
Electrical
Equipment 3.3%
Energy 0.8%
Engineering &
Construction 1.1%
Entertainment &
Leisure 2.7%
Financial
Services &
Insurance 16.7%
Foods &
Beverages 6.8%
</TABLE>
<TABLE>
<CAPTION>
Summary of
Investments % of
By Industry Net Assets
- ----------- ----------
<S> <C>
Forest Products 1.0%
Investment Fund 2.5%
Manufacturing 1.1%
Media 1.8%
Metals & Mining 1.9%
Oil & Gas
Exploration 2.8%
Oil Refinery 0.9%
Pharmaceuticals 1.0%
Real Estate 2.8%
Retail 3.7%
Semiconductors &
Semiconductor
Equipment 1.4%
Shipping 0.4%
Steel 1.9%
Technology 3.2%
Telecommunications 15.5%
Utilities 1.1%
Call Options 1.3%
Other assets
less
Liabilities 9.2%
------
100.0%
======
</TABLE>
- -------
(a) Unless otherwise indicated, securities owned are shares of common stock.
(b) Includes securities in the form of ADRs.
(c) Fair value as determined by the Board of Trustees.
(d) Restricted security, see Note 9.
(e) Security in default on interest payment.
Glossary:
ADR-American Depositary Receipt
"F"-Foreign Registry
GDR-Global Depositary Receipt
See Notes to Financial Statements
<PAGE>
Worldwide Emerging Markets Fund Financial Statements
- --------------------------------------------------------------------------------
Statement of Assets and Liabilities
<TABLE>
<S> <C>
June 30, 1999 (Unaudited)
Assets:
Investments at value (cost, $114,159,735) (Note 1)................ $142,194,130
Cash, at value (cost, $2,157,844)................................. 2,144,102
Cash- initial margin for equity swap (Note 8)..................... 1,075,786
Receivables:
Capital shares sold.............................................. 10,441,123
Securities sold.................................................. 1,312,423
Dividends........................................................ 159,697
Deferred organization costs and other assets (Note 1)............. 101,314
------------
Total assets.................................................... 157,428,575
------------
Liabilities:
Payables:
Capital shares redeemed.......................................... 370,066
Securities purchased............................................. 232,666
Due to broker (Note 8)........................................... 147,025
Accounts payable................................................. 44,277
------------
Total liabilities............................................... 794,034
------------
Net assets........................................................ $156,634,541
============
Shares outstanding................................................ 15,080,978
============
Net asset value, redemption and offering price per share
($156,634,541/15,080,978)........................................ $10.39
============
Net assets consist of:
Aggregate paid in capital........................................ $176,696,635
Unrealized appreciation of investments, swaps and foreign
currencies...................................................... 27,857,148
Accumulated net investment loss.................................. (238,661)
Accumulated realized loss........................................ (47,680,581)
------------
$156,634,541
============
</TABLE>
<TABLE>
<S> <C> <C>
Statement of Operations
Six Months Ended June 30, 1999 (Unaudited)
Income: (Note 1)
Dividends (net of foreign taxes withheld of $50,147).... $ 1,401,756
Interest................................................ 482,725
-----------
Total income.......................................... 1,884,481
Expenses:
Management (Note 2)..................................... $414,455
Administration (Note 2)................................. 1,601
Custodian............................................... 83,447
Professional............................................ 18,974
Reports to shareholders................................. 15,383
Trustees' fees and expenses............................. 10,152
Amortization of deferred organization costs (Note 1).... 743
Other................................................... 11,200
--------
Total expenses........................................
555,955
-----------
Net investment income................................. 1,328,526
-----------
Realized and Unrealized Gain (Loss) on Investments (Note
3):
Realized gain from security transactions................ 2,249,585
Realized loss from foreign currency transactions........ (1,044,654)
Realized gain on equity swaps and foreign futures
contracts.............................................. 40,554
Change in unrealized depreciation of forward foreign
currency contracts and foreign currencies.............. (14,277)
Change in unrealized appreciation of investments and
equity swaps........................................... 31,822,556
-----------
Net gain on investments and foreign currencies.......... 33,053,764
-----------
Net Increase in Net Assets Resulting from Operations.... $34,382,290
===========
</TABLE>
See Notes to Financial Statements
<PAGE>
Worldwide Emerging Markets 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 (Decrease) in Net Assets From:
Operations:
Net investment income............................. $ 1,328,526 $ 693,525
Realized loss from security transactions.......... 2,249,585 (36,487,046)
Realized loss from foreign currency transactions.. (1,044,654) (358,972)
Realized loss on options.......................... -- (720,000)
Realized gain (loss) on equity swaps and foreign
futures contracts................................ 40,554 (108,570)
Change in unrealized depreciation of forward
foreign currency contracts and foreign
currencies....................................... (14,277) (15,832)
Change in unrealized appreciation (depreciation)
of investments and equity swaps.................. 31,822,556 10,290,532
------------ ------------
Increase (decrease) in net assets resulting from
operations....................................... 34,382,290 (26,706,363)
------------ ------------
Dividends and distributions to shareholders from:
Net investment income............................. -- (735,333)
Net realized gains................................ -- (653,629)
------------ ------------
Total dividends and distributions................. -- (1,388,962)
------------ ------------
Capital share transactions*:
Net proceeds from sales of shares................. 178,058,293 95,273,382
Reinvestment of dividends......................... -- 1,388,962
------------ ------------
178,058,293 96,662,344
Cost of shares reacquired......................... (110,318,902) (106,487,078)
------------ ------------
Increase (decrease) in net assets resulting from
capital share transactions....................... 67,739,391 (9,824,734)
------------ ------------
Total increase (decrease) in net assets........... 102,121,681 (37,920,059)
Net Assets:
Beginning of period................................ 54,512,860 92,432,919
------------ ------------
End of period (including undistributed net invest-
ment loss of $238,661 and $522,533, respectively). $156,634,541 $ 54,512,860
============ ============
*Shares of Beneficial Interest Issued and Redeemed
(with an unlimited number of $.001 Par Value
Shares Authorized, Issued and Redeemed):
Shares sold....................................... 20,039,102 11,726,158
Reinvestment of dividends......................... -- 142,166
------------ ------------
20,039,102 11,868,324
Shares reacquired................................. (12,617,617) (12,610,129)
------------ ------------
Net increase (decrease)........................... 7,421,485 (741,805)
============ ============
</TABLE>
See Notes to Financial Statements
<PAGE>
Worldwide Emerging Markets Fund
- -------------------------------------------------------------------------------
Financial Highlights
For a share outstanding throughout each period
<TABLE>
<CAPTION>
Six For The Period
Months Ended For The Eight December 21,
June 30, Year Ended Months Ended 1995(a) to
1999 December 31, December 31, April 30,
(unaudited) 1998 1997 1996 1996
------------ ------- ------- ------------- --------------
<S> <C> <C> <C> <C> <C>
Net Asset Value, Begin-
ning of Period......... $ 7.12 $ 11.00 $ 12.49 $ 10.95 $10.00
-------- ------- ------- ------- ------
Income From Investment
Operations:
Net Investment Income... 0.15(b) 0.09 0.14 0.01(b) 0.07(b)
Net Gain (Loss) on In-
vestments (both real-
ized and unrealized)... 3.12 (3.80) (1.58) 1.59 0.88
-------- ------- ------- ------- ------
Total From Investment
Operations............. 3.27 (3.71) (1.44) 1.60 0.95
-------- ------- ------- ------- ------
Less Dividend and Dis-
tributions:
Dividend from Net In-
vestment Income........ -- (0.09) (0.05) (0.06) --
Distributions from Capi-
tal Gains.............. -- (0.08) -- -- --
-------- ------- ------- ------- ------
Total Distributions..... -- (0.17) (0.05) (0.06) --
-------- ------- ------- ------- ------
Net Asset Value, End of
Period................. $ 10.39 $ 7.12 $ 11.00 $ 12.49 $10.95
======== ======= ======= ======= ======
Total Return (c)........ 45.93% (34.15%) (11.61%) 14.66% 9.50%
- --------------------------------------------------------------------------------------
Ratios/Supplementary
Data
Net Assets, End of Pe-
riod (000)............. $156,635 $54,513 $92,433 $15,355 $ 597
Ratio of Gross Expenses
to Average Net Assets.. 1.34%(d) 1.61% 1.34% 2.64%(d) 2.06%(d)
Ratio of Net Expenses to
Average Net Assets..... 1.34%(d) 1.50% 0.80% 0.00%(d) 0.00%(d)
Ratio of Net Investment
Income Average Net As-
sets................... 3.21%(d) 1.02% 0.91% 0.74%(d) 1.89%(d)
Portfolio Turnover Rate. 72.13% 117.16% 142.39% 29.53% 45.89%
</TABLE>
- -------
(a) Commencement of operations.
(b) Based on average shares outstanding.
(c) 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.
(d) 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 Emerging Markets Fund series, a
diversified fund (the "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 estimated.
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 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. 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 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 realized gains or losses
from foreign currency transactions.
D. Dividends and Distributions--Dividend income and distributions to
shareholders are recorded on the ex-dividend date. Income 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.
G. 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
<PAGE>
Worldwide Emerging Markets Fund
- -------------------------------------------------------------------------------
Notes to Financial Statements (Continued)
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.
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, which includes the fee paid to the
Adviser for accounting and administrative services. 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 reimburses the Adviser for
costs incurred in connection with certain administrative functions.
Note 3--Purchases and sales of securities, other than short-term obligations,
aggregated $116,471,222 and $58,586,346, 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 $114,159,735. As of June 30, 1999, net
unrealized appreciation for federal income tax purposes aggregated $28,034,395
of which $34,125,718 related to appreciated securities and $6,091,323 related
to depreciated securities. As of December 31, 1998, the Fund had a capital
loss carry forward of $42,412,949 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--The Fund invests in warrants whose values are linked to indices or
underlying instruments. The Fund uses these warrants to gain exposure to
markets that might be difficult to invest in through conventional securities.
Warrants may be more volatile than their linked indices or underlying
instruments. Potential losses are limited to the amount of the original
investment.
Note 6--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 foreign currency contracts are included
in realized gain (loss) from foreign currency transactions. 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 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 Fund has elected to show
this deferred liability net of the corresponding asset for financial statement
purposes. 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 $21,673.
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
of Notional nation Deprecia-
Underlying Security Shares Amount Date tion
------------------- ------- ---------- ------- ----------
<C> <S> <C> <C> <C>
United Microelectronics
Corp. 436,000 $1,075,786 6/23/00 $(147,025)
</TABLE>
Note 9--Restricted Securities
<TABLE>
<CAPTION>
Percent
of Net
Date Assets at
Acquired Cost Value 6/30/99
---------------- ---------- ---------- ---------
<S> <C> <C> <C> <C>
Banco del Suquia S.A.
(Negotiable Obligations) 6/15/98 $ 16,689 $ 9,019 0.0%
Berjaya Sports Toto Berhad 4/26/99-5/07/99 1,278,055 1,792,167 1.1%
Central European Foods, Inc. 6/04/98 275,000 275,000 0.2%
Commerce Asset Holdings
Berhad 4/26/99-5/13/99 1,070,000 2,626,109 1.7%
IOI Properties Berhad 5/07/99-5/12/99 136,004 159,556 0.1%
MAA Holdings Berhad 4/27/99 466,266 783,289 0.5%
SNP Petrom 8/05/97-10/24/97 1,936,469 293,539 0.2%
The Romanian Growth Fund 5/12/97 500,000 60,679 0.0%
UMW Holdings Berhad 5/12/99-5/13/99 851,972 1,116,188 0.7%
</TABLE>
Note 10--Change of Independent Accountant
During the fiscal year 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.
