<PAGE>
Van Eck Global
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Worldwide Insurance Trust
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[GRAPHIC]
ANNUAL REPORT
December 31, 1999
discipline
Worldwide Emerging Markets Fund
allocation
diversity
GLOBAL INVESTMENTS SINCE 1955
<PAGE>
Van Eck Worldwide Emerging Markets Fund
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Dear Shareholder:
We are pleased to report that the Van Eck Worldwide Emerging Markets Fund had
an exceptional year, gaining 100.28% for the twelve months ended December 31,
1999. This compares very favorably with an increase of 66.41% in the benchmark
Morgan Stanley Capital International Emerging Markets Free Index (MSCI EMF
Index) and a 68.96% gain in the Fund's mutual fund peer group as measured by
the Lipper Emerging Markets Fund Index*. The Fund's outperformance was due
primarily to a substantial and early weighting to Asia, particularly India,
Korea and Singapore, some of the emerging markets' top performers for the year,
as well as an emphasis on technology and telecommunications stocks, which led
markets worldwide in 1999.
Review
Nineteen ninety-nine was a year of rapid recovery for both the economies and
stocks of emerging markets. After the dramatic sell-off in August 1998, the
recovery has been both remarkable and lucrative. The rally has been broad-
based, with all regions participating. Two broad themes can be said to have
emerged. First, 1999 was the year that investors embraced risk again. The two
top performing markets in our universe were Turkey, which gained 239% in U.S.
dollar terms, and Russia, which gained 197%; both markets can be very volatile.
Second, in common with the rest of the world, technology and telecom were among
the best performing sectors.
One other remarkable feature of 1999 was how consistently the emerging market
economies bettered "street" expectations for growth, both domestic and
external. Improving economic expectations were a key reason why analysts spent
most of the year revising up their forecasts for corporate earnings. We took a
more bullish view of economic prospects during the year than most, and had the
courage of our convictions to buy stocks that looked expensive on (then)
current consensus forecasts.
In Asia, Korea (13.1% of total assets at year end) was the top performing
market for the year, gaining 93%, and was one of the earliest economies to show
a tangible rebound. The market did suffer some setbacks, including the
bankruptcy of Daewoo+, which had been one of Korea's largest "chaebols" or
conglomerates. This caused interest rates to rise and precipitated some outflow
from domestic funds. The government stepped in to reassure the investment
community and orchestrate a number of support measures, which helped the market
remain calm. The Fund had a high allocation to the telecom and semiconductor
sectors throughout the year.
The Indonesian market nearly matched the Korean market for performance, gaining
92% over the year. The Fund held an overweight position in this market for most
of the year, which has subsequently been reduced to the current 4.0% weighting
at December 31. As in Korea, there were some nervous moments. For Indonesia,
this centered on the transition to a post-Suharto democracy. Although there was
a certain amount of disruption, the transition was actually remarkably smooth
given the history, the ethnic tensions and challenging geography. The election
result of Wahid as President and Megawati as Vice President was among the best
possible results in our view. The next challenge, which is by no means a small
one, is economic. Indonesia suffered greatly during the Asian crisis, and it
will be no mean feat to put the country back on a solid growth track.
A very strong electronics cycle was reflected in the exports of countries such
as Singapore and Taiwan, where the markets gained 73% and 35%, respectively.
Global demand for electronic goods was very firm during the course of 1999.
Taiwan, in particular, with its high exposure to the electronics industry,
benefited from this trend. Significant positions in these markets (10.2% of
Fund assets in Singapore and 5.7% in Taiwan++) and heavy emphasis on technology
and telecom (in the case of Singapore) stocks were major contributors to Fund
performance.
Hong Kong (5.1% of assets) has been slightly slower to emerge from its
recession, but better news from China (1.0% of assets) ought to help the market
along in 2000. Significantly, the threat of a devaluation of the Chinese
currency has receded during the course of the year. Higher interest rates in
the United States will impact Hong Kong interest rates, but reflationary
efforts in China ought to be the dominant theme for this year. The market
gained 68% in 1999.
Indian stocks performed well, particularly in the period after election results
were announced, gaining 60% over the year. For the first time in three years,
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Van Eck Worldwide Emerging Markets Fund
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India has a government that has a workable majority in parliament. It appears
that they have the will, as well as the ability, to make serious progress in
some of the structural issues that have held India back. In this regard,
tackling the fiscal deficit must rank as priority number one. The Fund
continues to benefit from the positions that it holds in the software sector in
India (the Indian market accounted for 6.6% of Fund assets at year end).
The Malaysian market (2.9% of assets), although increasing by 39% over the last
twelve months, disappointed our optimistic expectations. Capital controls were
lifted during the year, causing some outflow from the market. That exodus has
now largely stopped. The economy is highly liquid, with interest rates
remaining low. The market does not look overvalued and will be reinstated in
the main benchmark indices as of May 2000. We therefore remain optimistic.
The other Southeast Asian markets of Thailand (1.7% of assets) and the
Philippines (1.2% of assets) produced relatively disappointing results, gaining
33% and 5%, respectively. In Thailand, the big banks came to the market again
to raise capital, despite the peaking of non-performing loans, disappointing
the market. The Philippines suffered from the growing feeling that President
Estrada and his team of advisers were not addressing the economic problems of
the country with sufficient urgency or direction.
The Turkish market was one of the world's best performers in 1999, rising 239%.
The election of a stable, reformist coalition government was the main catalyst
for this strong performance. The new government negotiated a stabilization
program with the IMF that has already resulted in dramatic decreases in
inflation and interest rates. A devastating earthquake brought a rapprochement
with Greece and has enabled Turkey to join the list of candidates for accession
to the European Union. The closing weeks of 1999 saw retail investors begin to
move funds from fixed income into equities, as yields on fixed income
instruments declined. We expect this to continue in 2000. A fairly high
weighting to this market (5.9% of assets) helped Fund performance.
The Greek market (0.5% of assets) also performed well in 1999 (rising 74%),
sustained by a frenzy of retail buying. Interest rates have dropped
substantially in Greece as the process of convergence to European levels
continues. Though the Greek market corrected somewhat in the last few months of
1999, valuations remain stretched in most sectors. Having participated fully in
the rally in the first half of 1999, the Fund scaled back exposure to Greece
over the second half of the year.
The South African market (4.2% of assets) put in a creditable performance in
1999, rising 50%. The elections went smoothly, and the economy looks to be in
reasonably good shape. Interest rates declined for most of the year, providing
substantial support for stocks.
The Israeli market rose 65% in 1999. The Fund had limited exposure to the
domestic economy but maintained a significant weighting in the technology-
related export sector throughout the year (Israel accounted for 6.5% of assets
at year end). Some of these stocks performed extremely well, benefiting from
the NASDAQ rally in the fourth quarter. It is worth pointing out that Geo
Interactive Media (2.1% of assets), a company with proprietary software that
enables streaming video to be received by mobile phones, rose an astounding
694% since our purchase in November 1999.
Central European markets made a poor start to 1999, but began to recover in the
second half as the prospects for European growth improved. The Polish market
(0.8% of assets) rose 20%, the Hungarian market (1.6% of assets) rose 20% and
the Czech market (0.3% of assets) rose 4%. Hungary remains our favorite market
of the three; our biggest position there is Matav (1.2% of assets), the telecom
provider which is part-owned by Deutsche Telecom and is seeing very rapid
cellular growth. The Russian market (1.3% of assets) rebounded strongly in 1999
(+197%) as the economy and currency stabilized, an IMF program was implemented,
and government finances benefited from a stronger oil price. The Fund increased
exposure to Russia after a positive result in the Duma (Parliamentary)
elections and enjoyed the sharp New Year's Eve rally on news of Yeltsin's
resignation.
Latin American markets began the year turbulently after Brazil devalued its
currency, the real, in January. Fears of a huge contraction in Brazilian
<PAGE>
Van Eck Worldwide Emerging Markets Fund
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economic growth and a downward spiral in the currency proved unfounded and the
second half saw Brazilian equities rebound strongly to end the year up 69%. An
IMF program has given investors confidence in the real, inflation has remained
under control, and foreign direct investment has been substantial. Brazilian
interest rates have declined steadily over the course of the year, provoking a
switch by domestic pension funds from fixed income to equities. We expect this
rebalancing to continue, which should underpin a market trading on cheap
valuations. We ended the year with a 10.0% weighting to Brazil, with major
holdings in telecom and steel companies.
The Mexican market managed to decouple from the rest of Latin America, rising
87% in dollar terms, after a brief spate of contagion from Brazil. The Mexican
economy benefited both from its close links with the strong U.S. economy and a
firmer oil price. Macroeconomic fundamentals improved over the course of 1999
with inflation and interest rates dropping significantly. The political
transition looks to be a smooth one, in contrast to previous presidential
handovers, which have often resulted in periods of economic crisis. Steps have
been taken to restructure the banking sector, notably legislation to improve
collection of bad loans and measures to improve liquidity of bank balance
sheets. This has led to a substantial re-rating of the sector over the course
of 1999. The Fund has positions in the two leading Mexican banks, and a total
Mexican allocation of 10.2%.
The Fund was invested in few Latin positions outside the region's two major
markets. Argentina's (0.7% of assets) combination of a pegged exchange rate, a
presidential election and a deep economic recession led us to underweight the
country. Chile (0.3% of assets) also suffered from a recession in 1999,
provoked by a fall in weak commodity prices. The Chilean market managed a 28%
gain, largely on the back of merger and acquisition activity in the
electricity sector. We also largely avoided the Andean Pact countries of Peru,
Colombia and Venezuela, preferring the liquidity and fundamentals of the
larger markets.
Summary and Outlook
In many cases, the first stage of recovery from deeply oversold levels can be
said to be over in emerging markets. Nevertheless, we remain very optimistic
for 2000. Broadly speaking, the global economic environment is positive, with
stronger but less concentrated growth around the world. The emerging market
economies, with very few exceptions, are moving strongly ahead. There is ample
domestic liquidity, often driven by strong current account surpluses. Return
on equity should surpass pre-crisis levels as companies adapt, refocus and
thrive, using the lessons learned from the depths of the crisis. Finally,
valuations are simply not demanding, particularly as analysts revise up
earnings forecasts to reflect the better operating environment.
The major risks for the asset class have diminished. Y2K has come and gone
without significant problems. The Chinese currency appears stable. Significant
political milestones have been achieved in countries such as Brazil, Russia,
Indonesia and South Africa.
We would like to thank you for your participation in the Van Eck Worldwide
Emerging Markets Fund, and we look forward to helping you meet your investment
objectives in the future.
[PHOTO] [PHOTO]
/s/ David A. Semple /s/ David M. Hulme
David A. Semple David M. Hulme
Co-Portfolio Manager Co-Portfolio Manager
January 20,
2000
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Van Eck Worldwide Emerging Markets Fund
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* The Lipper Emerging Markets Fund Index is an unmanaged index and includes the
reinvestment of all dividends, but does not reflect the payment of
transaction costs, advisory fees or expenses that are associated with an
investment in the Fund. The Index's performance is not illustrative of the
Fund's performance. Indices are not securities in which investments can be
made.
The Lipper Emerging Markets Fund Index includes funds with a primary
objective of seeking long-term capital appreciation by investing at least 65%
of assets in emerging market equity securities. The Index is an equally-
weighted performance index adjusted for capital gains distributions and
income dividends of the largest qualifying funds in the category.
+ The Fund had no assets in Daewoo at year-end 1999.
++ Exposure to Taiwan was in fact higher than the "Schedule of Portfolio
Investments" suggests due to the United Microelectronics Corp. "swaps"
listed in Note 8 of "Notes to Financial Statements".
Van Eck Worldwide Emerging Markets Fund
vs. MSCI Emerging Markets Free Index
[LINE GRAPH]
Van Eck Worldwide
Emerging Markets MSCI Emerging Markets
Fund Free Index
---- ----------
12/95 10000 10000
1/96 10820 10711
2/96 10350 10541
3/96 10320 10623
4/96 10950 11047
5/96 11480 10998
6/96 11681 11067
7/96 11591 10310
8/96 12113 10574
9/96 12164 10666
10/96 11963 10381
11/96 12415 10555
12/96 12556 10603
1/97 13722 11326
2/97 14206 11811
3/97 13671 11501
4/97 13611 11521
5/97 14458 11851
6/97 15427 12485
7/97 16395 12672
8/97 14640 11059
9/97 14953 11366
10/97 11936 9501
11/97 11129 9154
12/97 11098 9375
1/98 10029 8639
2/98 11055 9541
3/98 11600 9955
4/98 11487 9847
5/98 9731 8497
6/98 8571 7606
7/98 8972 7847
8/98 6046 5578
9/98 6046 5932
10/98 6539 6557
11/98 7268 7102
12/98 7309 6999
1/99 7186 6886
2/99 7391 6953
3/99 8099 7870
4/99 9146 8843
5/99 9331 8792
6/99 10665 9790
7/99 10296 9524
8/99 9690 9610
9/99 9331 9285
10/99 9988 9483
11/99 11610 10333
12/99 14638 11647
This graph compares a hypothetical $10,000 investment in the Van Eck Worldwide
Emerging Markets Fund made at its inception with a similar investment in the
MSCI Emerging Markets Free Index.
* Inception date for the Worldwide Emerging Markets Fund was 12/21/95; index
returns are calculated as of nearest month end (12/31/95).
Performance does not fully reflect the impact of the Fund's expenses, as they
have been fully or partially reimbursed by the Adviser at certain times since
the Fund's inception.
The Morgan Stanley Capital International Emerging Markets Free Index is an
unmanaged index and includes the reinvestment of all dividends, but does not
reflect the payment of transaction costs, advisory fees or expenses that are
associated with an investment in the Fund. The Index's performance is not
illustrative of the Fund's performance. Indices are not securities in which
investments can be made.
The MSCI Emerging Markets Free Index is a market capitalization-weighted index
that captures 60% of the publicly traded equities in each industry for
approximately 25 emerging markets. "Free" indicates that the Index includes
only those securities available to foreign (e.g., U.S.) investors.
Past performance is not indicative of future results. Performance data quoted
represents past performance; the investment return and principal value of an
investment will fluctuate so that an investor's shares, when redeemed, may be
worth more or less than the original cost. These returns do not take variable
annuity/life fees and expenses into account.
The 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.
<PAGE>
Van Eck Worldwide Emerging Markets Fund
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Geographical Weightings+
as of December 31, 1999
[PIE CHART]
Brazil 10.0%
Hong Kong 5.1%
India 6.6%
Israel 6.5%
Malaysia 2.9%
Mexico 10.2%
Singapore 10.2%
South Africa 4.2%
Turkey 5.9%
Other 11.0%
Cash/Equivalent 4.6%
Indonesia 4.0%
Taiwan 5.7%
South Korea 13.1%
+Weightings take options positions into account (see "Schedule of Portfolio
Investments").
<PAGE>
Van Eck Worldwide Emerging Markets Fund
Top Ten Equity Holdings as of December 31, 1999*
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Pacific Century Regional Development Ltd.
(Singapore, 4.4%)
Pacific Century is an investment holding and property development and
management company. Pacific Century Cyberworks is the largest subsidiary and is
involved in various Internet and technology ventures. The company's other
subsidiaries are involved in a range of businesses, including life insurance,
property investment and development, and hotel operations.
SK Telecom Co. Ltd.
(South Korea, 3.0%)
SK Telecom is Korea's market leader in mobile communications, with over 10
million subscribers and a market share of 43%. The industry has been growing
quickly, partly due to handset subsidies offered by the network operators,
which have now been phased out, improving profitability.
Samsung Electronics
(South Korea, 2.2%)
Samsung Electronics manufactures and exports a wide range of consumer and
industrial electronic equipment such as memory chips, semi-conductors, personal
computers, telecommunication equipment and televisions.
Geo Interactive Media Group PLC
(Israel, 2.1%)
Geo Interactive develops interactive Internet software products, including
streaming audio and video solutions without the need for plug-ins. The
company's technology also provides playback services for sound, animation and
video. Their "Emblaze" product allows users to receive on-demand audio/video
content over the Internet. Other company products include "Webradio" and
"Emblaze Video Email."
Petroleo Brasileiro S.A.
(Brazil, 2.0%)
Petrobras is a holding company for oil, gas and petrochemical companies in
Brazil. Through its subsidiaries, Petrobras operates oil wells and produces oil
products, petrochemicals and fuel alcohol. The company also produces at sea
through fixed and floating platforms and provides maritime freight services
through its fleet of tankers. Petrobras trades at a significant discount to its
peer group.
PT Lippo Bank Tbk
(Indonesia, 2.0%)
Lippo Bank is one of Indonesia's leading banks. Having been fully
recapitalized, the bank is now in the position to benefit from the expected
recovery of the Indonesian economy.
Telecomunicacoes Brasileiras S.A. Pfd.
(Brazil, 1.8%)
Telebras is an instrument representing a basket of companies in the
telecommunications sector in Brazil. It is a basket of fixed line and cellular
telephone companies, as well as Embratel, the long distance telephone service
provider. The stock represents the most liquid way of playing the telecom
sector in Brazil.
Akbank T.A.S.
(Turkey, 1.8%)
Akbank attracts deposits and offers retail and corporate banking services. The
bank offers securities brokerage, insurance, direct debit and deposit, consumer
loan, cash advance, overdraft, automobile loan, installment credit, American
Express, Visa and Mastercard credit card and electronic banking services.
Akbank serves its customers through approximately 536 branches. Akbank is part
of the Sabanci industrial group, the most powerful in Turkey.
R.O.C. Taiwan Fund
(Taiwan, 1.8%)
The R.O.C. Fund is a closed-end mutual fund that invests in publicly traded
securities of Taiwanese companies. The fund is trading at a discount to the
underlying value of its assets.
Daou Technologies, Inc.
(South Korea, 1.8%)
Daou Technologies specializes in systems integration, software development and
computer peripherals.
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*Portfolio is subject to change.
<PAGE>
Van Eck Worldwide Emerging Markets Fund
Schedule of Portfolio Investments
December 31, 1999
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<TABLE>
<CAPTION>
No. of Value
Country Shares Securities (a) (Note 1)
- ------------------------------------------------------------------------------
<C> <C> <S> <C>
ARGENTINA: 0.7%
23,120 Banco Galicia y Buenos Aires S.A. de C.V.
(ADR) $ 458,065
32,000 El Sitio Inc.+ 1,176,000
-----------
1,634,065
-----------
BRAZIL: 10.0%
50,000 CBD (Pao de Azucar)
(ADR) 1,615,625
1,800,000 Celular CRT Participacoes Pfd. 314,302
17,111,100 CIA Eletricidade de Bahia (b) 583,333
105,000 CIA Paranaense de Energia (Copel) Pfd. (ADR) 977,813
40,000,000 CIA Siderurgica Tubarao Pfd. 654,102
1,600,000 Companhia Riograndense de Telecomunicacoes 496,674
22,700 Embratel Participacoes S.A.+ 618,575
20,000,000 Gerdau Metalurgica S.A. Pfd. 964,523
57,276,045 Gerdau S.A. Pfd. 1,523,975
1,670,000 Industrias Klabin de Papel e Celulose PN 1,388,581
150,000 Industrias Klabin de Papel e Celulose (ADR) 1,254,525
19,500,000 Petroleo Brasileiro S.A. Pfd. 4,972,285
23,000 Starmedia Network, Inc.+ 921,438
65,000,000 Tele Centro Sul Participacoes S.A. (ADR) 699,001
35,000 Telecomunicacoes Brasileiras S.A. Pfd. (ADR) 4,497,500
87,500 Tele Norte Leste
Participacoes S.A. (ADR)+ 2,231,250
20,000 Uniao de Bancos Brasileiros S.A. 602,500
-----------
24,316,002
-----------
CHILE: 0.3%
100,000 Antofagasta Holdings PLC + 695,783
-----------
CHINA: 1.0%
70,000 Huaneng Power
International, Inc. (Sponsored ADR) 739,375
3,250,000 Yizheng Chemical Fibre Co. Ltd.+ 909,339
4,500,000 Zhenhai Refining Co. Ltd. 798,868
-----------
2,447,582
-----------
</TABLE>
<TABLE>
<CAPTION>
No. of Value
Country Shares Securities (a) (Note 1)
- -------------------------------------------------------------------------------
<C> <C> <S> <C>
CZECH REPUBLIC: 0.3%
149,997 Komercni Bank (GDR) $ 798,734
-----------
EGYPT: 1.5%
58,000 Al-Ahram Beverages Co. (GDR)+ 1,145,500
30,000 Commercial International Bank (Sponsored GDR)+ 430,500
45,000 Mobinil-Egyptian Mobile Services+ 2,062,048
-----------
3,638,048
-----------
GREECE: 0.5%
49,750 Hellenic Telecommunications
Organization S.A. 1,182,249
340 Ktima Kostas Lazaridis S.A. (formerly
Lazaridis S.A). (b)+ 2,902
530 Microland Computers S.A.+ 35,547
-----------
1,220,698
-----------
HONG KONG: 5.1%
500,000 Asia Satellite Telecommunications Holdings
Ltd. 1,579,083
1,334,000 China Everbright Pacific Ltd. 1,098,295
445,000 China Telecom (Hong Kong) Ltd.+ 2,782,144
3,500,000 E-New Media Company Ltd. 1,710,941
812,000 Hanny Holdings Ltd. 767,762
1,000,000 Kerry Properties Ltd. 1,402,200
800,000 New World Infrastructure Ltd.+ 1,023,992
1,900,000 Sino Land Co. 1,093,780
950,000 Wheelock & Company Ltd. 996,012
-----------
12,454,209
-----------
HUNGARY: 1.6%
23,000 Egis Rt. 911,874
83,200 Matav Rt. (Sponsored ADR) 2,995,200
-----------
3,907,074
-----------
INDIA: 6.6%
43,500 Dr. Reddy's Laboratories Ltd. 1,442,000
38,000 HCL Technologies Ltd. (b)+ 506,667
25,000 Hindustan Lever Ltd. 1,293,103
367,500 Hindustan Petroleum Corp. Ltd. 1,546,034
127,500 Housing Development Finance Corporation Ltd. 838,276
100 ITC Ltd. 1,529
</TABLE>
See Notes to Financial Statements
<PAGE>
Worldwide Emerging Markets Fund
Schedule of Portfolio Investments (continued)
December 31, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
No. of Value
Country Shares Securities (a) (Note 1)
- ---------------------------------------------------------------------------
<C> <C> <S> <C>
INDIA (continued)
175,000 Larsen & Toubro Ltd. $ 2,236,379
10,500 NIIT Ltd. 800,305
82,000 Satyam Computer Services Ltd. 4,221,586
21,000 Sonata Software Ltd. 1,018,790
49,363 Videsh Sanchar Nigam Ltd. 2,052,820
-----------
15,957,489
-----------
INDONESIA: 4.0%
2,466,827 PT Astra International
Warrants (expiring 12/31/01)+(b) 1,147,361
19,080,000 PT Bank Pan Indonesia Tbk "F" 1,843,148
1,860,000 PT Bank Pan Indonesia Warrants (expiring
7/08/02)+ 65,216
4,474,000 PT Bimantara Citra 1,056,472
537,500 PT Indofood Sukses Makmur Tbk 673,077
138,000,000 PT Lippo Bank Tbk+ 4,937,388
-----------
9,722,662
-----------
ISRAEL: 6.5%
100,000 Elbit Ltd.+ 1,768,750
80,000 Fundtech Corp.+ 1,640,000
180,000 Geo Interactive Media Group PLC+ 5,097,015
8,000 Gilat Satellite Networks+ Ltd.+ 950,000
48,800 Nice Systems Ltd. (ADR)+ 2,400,350
16,500 Orbotech, Ltd.+ 1,278,750
31,000 Orckit Communications Ltd.+ 1,063,688
105,000 Sapiens International Corporation N.V.+ 1,725,938
-----------
15,924,491
-----------
MALAYSIA: 2.9%
780,000 Berjaya Sports Toto Berhad 1,683,180
1,130,000 Commerce Asset Holdings Berhad 2,899,380
97,000 IOI Properties Berhad 218,253
475,000 MAA Holdings Berhad+ 925,012
205,000 Unisem (M) Berhad 1,316,333
-----------
7,042,158
-----------
</TABLE>
<TABLE>
<CAPTION>
No. of Value
Country Shares Securities (a) (Note 1)
- -------------------------------------------------------------------------------
<C> <C> <S> <C>
MEXICO: 10.2%
120,000 Cemex S.A. (Sponsored ADR) $ 3,345,000
6,250 Cemex S.A. Warrants ( expiring 12/13/02)+ 25,977
300,000 Controladora Comercial Mexicana S.A. de C.V.
(UBC UNIT) 400,863
483,205 Corp Interamericana de Entretenimiento S.A.
(Series B) 1,924,279
300,000 Corporacion GEO S.A. de C.V.+ 1,126,835
38,180 Fomento Economico Mexicano, S.A. de C.V. (ADR) 1,699,010
500,000 Grupo Continential S.A. 725,972
100,000 Grupo Elektra S.A. (Sponsored GDR) 975,000
613,000 Grupo Financiero Banamex Accival, S.A. de C.V. 2,450,839
5,500,000 Grupo Financiero Bancomer S.A. (GDR) 2,291,546
380,000 Grupo Mexico S.A. (Series B) 1,877,111
37,000 Grupo Televisa S.A. (GDR)+ 2,525,250
25,000 Telefonos de Mexico (ADR) 2,812,500
290,000 TV Azteca S.A. (Sponsored ADR) 2,610,000
-----------
24,790,182
-----------
PHILIPPINES: 1.2%
1,100,000 ABS-CBN Broadcasting (GDR) Corp. (Depository
Receipts)+ 1,364,764
222,600 Benpres Holdings Corp. (GDR)+ 667,800
40,000 Philippine Long Distance Telephone Co. 1,021,777
-----------
3,054,341
-----------
POLAND: 0.8%
15,000 Bank Rozwoju Eksportu S.A. 475,212
50 Central European Foods, Inc. (b)(c)+ 275,000
61,500 Elektrim Spolka Akcyjna S.A. 609,794
15,250 Softbank S.A. 508,948
-----------
1,868,954
-----------
ROMANIA: 0.1%
7,486,425 SNP Petrom (b)(c)+ 254,333
48,544 The Romanian Growth Fund (c)+ 60,680
-----------
315,013
-----------
</TABLE>
See Notes to Financial Statements
<PAGE>
Worldwide Emerging Markets Fund
Schedule of Portfolio Investments (continued)
December 31, 1999
- --------------------------------------------------------------------------------
See Notes to Financial Statements
<TABLE>
<CAPTION>
No. of Value
Country Shares Securities (a) (Note 1)
- ---------------------------------------------------------------------------
<C> <C> <S> <C>
RUSSIA: 1.3%
200,000 AO Taftneft (ADR) $ 1,900,000
13,000 Lukoil Holding (ADR) 523,900
54,400 Surgutneftegaz (ADR) 756,350
-----------
3,180,250
-----------
SINGAPORE: 9.2%
115,000 Creative Technologies Ltd. 2,085,260
390,000 Datacraft Asia Ltd. 3,237,000
114,000 DBS Group Holdings Ltd. 1,868,628
280,000 Natsteel Electronics Ltd. 1,479,436
751,000 Pacific Century Regional Development Ltd.+ 10,776,884
425,000 Singapore Land Ltd. 1,117,682
181,000 Star Cruises PLC 1,846,200
-----------
22,411,090
-----------
SOUTH AFRICA: 4.2%
100,000 Comparex Holdings Ltd. 701,098
70,000 Datatec Ltd.+ 1,236,600
247,670 Dimension Data Holdings Ltd. 1,555,114
1,205,000 FirstRand Ltd. 1,724,929
35,487 Liberty International PLC 266,984
111,113 Liberty Life Association of Africa Ltd. 1,283,290
150,000 MIH Holdings Ltd. 854,006
974,900 Softline Ltd.+ 1,562,060
105,000 South African Breweries Ltd. PLC 1,069,214
-----------
10,253,295
-----------
SOUTH KOREA: 13.1%
20,000 Cheil Communications, Inc. 1,512,990
11,900 Cheil Jedang Corp. 1,372,875
122,578 Daou Technologies, Inc. 4,264,052
85,000 Haansoft, Inc. 3,937,472
50,000 Hanaro Telecom, Inc. 865,258
54,650 Housing & Commercial Bank, Korea 1,732,629
89,283 Hyundai Electronics
Industries Co. 1,894,954
50,000 Hyundai Motors Co., Inc. 792,602
19,000 Korea Telecom Corp. 2,995,156
22,800 Samsung Electronics 5,341,083
2,039 SK Telecom Co. Ltd. 7,308,437
-----------
32,017,508
-----------
</TABLE>
<TABLE>
<CAPTION>
No. of Value
Country Shares Securities (a) (Note 1)
- -----------------------------------------------------------------------------
<C> <C> <S> <C>
TAIWAN: 5.7%
263,250 Acer, Inc. (GDR) $ 3,751,313
177,169 Asustek Computers, Inc. 2,467,078
83,000 Evergreen Marine Corp. 705,500
134,000 Powerchip Semiconductor Corp. (GDR)+ 1,825,750
520,000 R.O.C. Taiwan Fund+ 4,387,500
30,000 Winbond Electronics Corp. (GDR) 693,750
-----------
13,830,891
-----------
THAILAND: 1.7%
40,000 Golden Land Property Development PLC "F"+ 19,733
1,900,000 Golden Land Property Development PLC+ 696,667
5,150,000 National Finance & Securities 2,163,000
122,400 Shin Corp. PLC+ 1,161,984
-----------
4,041,384
-----------
TURKEY: 5.9%
148,750,000 Akbank T.A.S. 4,387,907
14,000,000 Aksigorta A.S. 851,770
18,250,000 Carsi Buyuk Magazacilik A.S. 2,220,686
70,000,000 Dogan Sirketler Grubu Holding A.S. 2,064,897
30,500,000 Hurriyet Gazetecilik ve Matbaacilik A.S. 562,316
500,000 Migros Turk T.A.S. 322,640
40,498,000 Turkiye Garanti Bankasi A.S.+ 612,249
14,000,000 Vestel Elektronik Sanayi ve Ticoret. A.S.+ 3,355,456
-----------
14,377,921
-----------
Total Stocks and Other Investments: 94.4%
(cost: $151,514,265)........................................... 229,899,824
</TABLE>
<PAGE>
Worldwide Emerging Markets Fund
Schedule of Portfolio Investments (continued)
December 31, 1999
- --------------------------------------------------------------------------------
See Notes to Financial Statements
<TABLE>
<CAPTION>
No. of Call Options Value
Country Contracts Purchased (Note 1)
- --------------------------------------------------------
<S> <C> <C> <C>
SINGAPORE: 1.0%
103,000 Development Bank of
Singapore Ltd,
Zero Strike Call
Option
(expiring 4/19/00) $ 1,675,659
75,000 Singapore Airlines Ltd,
Zero Strike Call Option
(expiring 6/08/00) 851,096
------------
Total Call Options Purchased
(cost: $1,266,625) 2,526,755
------------
Total Investments: 95.4%
(cost: $152,780,890) 232,426,579
Other assets less liabilities: 4.6% 11,089,761
------------
Net Assets: 100% $243,516,340
============
</TABLE>
<TABLE>
<CAPTION>
Summary of % of
Investments Net
By Industry Assets
- ----------- ------
<S> <C>
Advertising 0.6%
Automotive 0.3%
Building and
Construction 1.8%
Chemicals 0.3%
Communications,
Equipment &
Software 0.8%
Computer Soft-
ware & Technol-
ogy 19.3%
Conglomerates 2.0%
Consumer Prod-
ucts & Services 0.5%
Electronics &
Electrical
Equipment 9.2%
Engineering &
Construction 1.3%
Entertainment &
Leisure 2.9%
Financial Serv-
ices &
Insurance 14.4%
</TABLE>
<TABLE>
<CAPTION>
Summary of % of
Investments Net
By Industry Assets
- ----------- ------
<S> <C>
Food & Beverages 2.9%
Forest Products 1.1%
Investment Fund 1.8%
Manufacturing 1.8%
Media 3.4%
Metals & Mining 0.8%
Oil & Gas 4.1%
Pharmaceuticals 1.0%
Real Estate 1.9%
Retail 2.3%
Steel 1.3%
Telecommunications 17.7%
Utilities 0.9%
Call Options 1.0%
Other assets less
liabilities 4.6%
------
100.0%
======
</TABLE>
- -------
(a) Unless otherwise indicated, securities owned are shares of common stock.
(b) Fair value as determined by the Board of Trustees.
(c) Restricted security, see Note 9.
+ Non-income producing.
Glossary:
ADR-American Depositary Receipt
"F"-Foreign Registry
GDR-Global Depositary Receipt
<PAGE>
Worldwide Emerging Markets Fund Financial Statements
- --------------------------------------------------------------------------------
Statement of Assets and Liabilities
<TABLE>
<S> <C> <C>
December 31, 1999
Assets:
Investments, at value (cost, $152,780,890) (Note 1)............. $232,426,579
Cash and foreign currency....................................... 4,598,269
Cash--initial margin for equity swap (Note 8)................... 2,584,869
Receivables:
Capital shares sold............................................ 11,546,058
Securities sold................................................ 678,007
Due from broker (Note 8)....................................... 838,509
Dividends...................................................... 121,849
Deferred organization costs (Note 1)............................ 1,470
------------
Total assets.................................................. 252,795,610
------------
Liabilities:
Payables:
Line of credit (Note 10)....................................... 4,000,000
Securities purchased........................................... 2,753,443
Capital shares redeemed........................................ 1,431,018
Foreign taxes.................................................. 1,037,532
Due to adviser................................................. 3,297
Accounts payable............................................... 53,980
------------
Total liabilities............................................. 9,279,270
------------
Net assets...................................................... $243,516,340
============
Shares outstanding.............................................. 17,071,136
============
Net asset value, redemption and offering price per share........ $14.26
============
Net assets consist of:
Aggregate paid in capital...................................... $198,223,212
Unrealized appreciation of investments, equity swaps and
foreign denominated assets, liabilities....................... 79,448,895
Net investment loss............................................ (9,785)
Accumulated realized loss...................................... (34,145,982)
------------
$243,516,340
============
Statement of Operations
Year Ended December 31, 1999
Income: (Note 1)
Dividends (net of foreign taxes withheld of
$100,948).......................................... $ 2,046,020
Interest............................................ 695,065
------------
Total income...................................... 2,741,085
Expenses:
Management (Note 2)................................. $1,172,736
Administration (Note 2)............................. 3,257
Custodian........................................... 270,079
Interest............................................ 237,469
Professional........................................ 34,830
Reports to shareholders............................. 34,336
Trustees' fees and expenses......................... 34,331
Amortization of deferred organization costs (Note
1)................................................. 1,500
Other............................................... 17,019
----------
Total expenses.................................... 1,805,557
------------
Net investment income............................. 935,528
------------
Realized and Unrealized Gain (Loss) on Investments
(Note 3):
Realized gain from security transactions (net of
foreign taxes withheld of $256,100)................ 15,482,982
Realized loss from foreign currency transactions.... (1,247,018)
Realized gain on options............................ 45,106
Realized gain on foreign futures contracts.......... 40,550
Change in unrealized depreciation of foreign
denominated assets, liabilities and foreign forward
currency transactions (net of foreign taxes
withheld of $1,037,532)............................ (1,019,358)
Change in unrealized appreciation of investments and
equity swaps....................................... 84,419,384
------------
Net gain on investments and foreign currency
transactions....................................... 97,721,646
------------
Net Increase in Net Assets Resulting from
Operations......................................... $ 98,657,174
============
</TABLE>
See Notes to Financial Statements
<PAGE>
Worldwide Emerging Markets Fund Financial Statements
- --------------------------------------------------------------------------------
Statements of Changes in Net Assets
<TABLE>
<CAPTION>
Year Ended Year Ended
December 31, December 31,
1999 1998
------------- -------------
Increase (Decrease) in Net Assets From:
Operations:
<S> <C> <C>
Net investment income.......................... $ 935,528 $ 693,525
Realized gain (loss) from security
transactions.................................. 15,482,982 (36,487,046)
Realized loss from foreign currency
transactions.................................. (1,247,018) (358,972)
Realized gain (loss) on options................ 45,106 (720,000)
Realized gain (loss) on equity swaps and
foreign futures contracts..................... 40,550 (108,570)
Change in unrealized depreciation of foreign
denominated assets, liabilities and foreign
forward currency contracts.................... (1,019,358) (15,832)
Change in unrealized appreciation of
investments, futures and equity swaps......... 84,419,384 10,290,532
------------- -------------
Net Increase (decrease) in net assets resulting
from operations................................ 98,657,174 (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.............. 416,658,982 95,273,382
Reinvestment of dividends and distributions.... -- 1,388,962
Cost of shares reacquired...................... (326,312,676) (106,487,078)
------------- -------------
Increase (decrease) in net assets resulting
from capital share transactions............... 90,346,306 (9,824,734)
------------- -------------
Total increase (decrease) in net assets........ 189,003,480 (37,920,059)
Net Assets:
Beginning of year............................... 54,512,860 92,432,919
------------- -------------
End of year (including net investment loss of
$(9,785) and $(522,533), respectively)......... $ 243,516,340 $ 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.................................... 42,362,326 11,726,158
Reinvestment of dividends and distributions.... -- 142,166
Shares reacquired.............................. (32,950,683) (12,610,129)
------------- -------------
Net increase (decrease)........................ 9,411,643 (741,805)
============= =============
</TABLE>
See Notes to Financial Statements
<PAGE>
Worldwide Emerging Markets Fund
- -------------------------------------------------------------------------------
Financial Highlights
For a share outstanding throughout each period
<TABLE>
<CAPTION>
For The Period
For The Eight December 21,
Year Ended December 31, Months Ended 1995(a) to
----------------------------- December 31, April 30,
1999 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... 0.10(b) 0.09 0.14 0.01(b) 0.07(b)
Net Gain (Loss) on In-
vestments (both Real-
ized and Unrealized)... 7.04 (3.80) (1.58) 1.59 0.88
-------- ------- -------- -------- ------
Total From Investment
Operations............. 7.14 (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 Real-
ized Capital Gains..... -- (0.08) -- -- --
-------- ------- -------- -------- ------
Total Distributions..... -- (0.17) (0.05) (0.06) --
-------- ------- -------- -------- ------
Net Asset Value, End of
Period................. $ 14.26 $ 7.12 $ 11.00 $ 12.49 $10.95
======== ======= ======== ======== ======
Total Return (c)........ 100.28% (34.15%) (11.61%) 14.66% 9.50%
- --------------------------------------------------------------------------------------
Ratios/Supplementary
Data
Net Assets, End of Pe-
riod (000)............. $243,516 $54,513 $ 92,433 $ 15,355 $ 597
Ratio of Gross Expenses
to Average Net Assets.. 1.54% 1.61% 1.34% 2.64%(d) 2.06%(d)
Ratio of Net Expenses
(excluding interest ex-
pense) to Average Net
Assets................. 1.34% 1.50% 0.00% 0.00%(d) 0.00%(d)
Ratio of Net Investment
Income to Average Net
Assets................. 0.80% 1.02% 0.91% 0.74%(d) 1.89%(d)
Portfolio Turnover Rate. 143.03% 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 return for a period of less than one year
are not annualized.
(d) Annualized.
See Notes to Financial Statements
- -------------------------------------------------------------------------------
Notes to Financial Statements
Note 1--Significant Accounting Policies:
Van Eck Worldwide Insurance Trust (the "Trust"), organized as a Massachusetts
business trust on January 7, 1987, is registered under the Investment Company
Act of 1940. The following is a summary of significant accounting policies
consistently followed by the Worldwide Emerging Markets Fund, a diversified
fund (the "Fund") of the Trust, in the preparation of its financial
statements. The preparation of financial statements in conformity with
accounting principles generally accepted in the United States 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 year. 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, other than investments, 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. Dividends on foreign
securities are recorded when the Fund is informed of such dividends. 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. To reflect reclassifications,
arising from permanent "book/tax" differences for the year ended December 31,
1999, undistributed net investment income was decreased by $422,780,
accumulated net realized loss was decreased by $1,503,118 and capital stock
decreased by $1,080,338.
<PAGE>
Worldwide Emerging Markets Fund
- -------------------------------------------------------------------------------
Notes to Financial Statements (continued)
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
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.
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. There are no
options written outstanding at December 31, 1999.
Note 2--Management Agreement--Van Eck Associates Corporation (the "Adviser")
earns fees for investment management and advisory services provided to the
Fund. 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--Investments--Purchases and sales of securities, other than short-term
obligations, aggregated $243,408,805 and $160,694,364, respectively, for the
year ended December 31, 1999. For federal income tax purposes, the identified
cost of investments owned at December 31, 1999 was $153,466,068. As of
December 31, 1999, net unrealized appreciation for federal income tax purposes
aggregated $78,960,511 of which $85,509,555 related to appreciated securities
and $6,549,044 related to depreciated securities.
As of December 31, 1999, the Fund had a capital loss carry forward of
$33,460,804 available, expiring December 31, 2006.
Note 4--Concentration of Risk--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--Warrants--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 December 31,
1999, the Fund had no 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.
As of December 31, 1999 the total value of the asset and corresponding
liability of the Fund's portion of the Plan is $35,564.
Note 8--Equity Swaps--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 (notional amount)
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
<PAGE>
Worldwide Emerging Markets Fund
- -------------------------------------------------------------------------------
Notes to Financial Statements (continued)
December 31, 1999, the Fund had the following outstanding swaps (stated in
U.S. dollars):
<TABLE>
<CAPTION>
Underlying Number of Notional Termination Unrealized
Securities Shares Amount Date Appreciation
- ---------------------------- ---------- ----------- ------------
<S> <C> <C> <C> <C>
United Microelectronics
Corp.:
436,000 $1,075,786 6/23/00 $464,557
533,000 1,509,083 11/16/00 373,952
---------- --------
$2,584,869 $838,509
========== ========
</TABLE>
Note 9--Restricted Securities
The following securities are restricted as to sale and deemed illiquid:
<TABLE>
<CAPTION>
Percent
of Net
Date Total Assets at
Acquired Cost Value 12/31/99
-------- ---------- -------- ---------
<S> <C> <C> <C> <C>
Central European Foods, Inc. 6/01/98 $ 275,000 $275,000 0.1%
SNP Petrom 10/27/97 1,936,469 254,333 0.1
The Romanian Growth Fund................. 5/12/97 500,000 60,680 0.0
---
0.2%
===
</TABLE>
Note 10--Bank Line of Credit--The Trust may participate with other funds
managed by Van Eck in a $15 million committed credit facility ("Facility") to
be utilized for temporary financing until the settlement of sales or purchases
of portfolio securities, the repurchase or redemption of shares of the Series,
including the Fund, at the request of the shareholders and other temporary or
emergency purposes. In connection therewith, the Series have agreed to pay
commitment fees, pro rata, based on usage. Interest is charged to the Series
at rates based on prevailing market rates in effect at the time of borrowings.
On December 31, 1999, the Fund borrowed $4,000,000 under the Facility. The
interest rate on the borrowing was 6.0%.
<PAGE>
Worldwide Emerging Markets Fund
- --------------------------------------------------------------------------------
Report of Ernst & Young LLP, Independent Auditors
To the Board of Trustees and Shareholders
Worldwide Emerging Markets Fund
We have audited the accompanying statement of assets and liabilities of
Worldwide Emerging Markets Fund (one of the Funds comprising Van Eck Worldwide
Insurance Trust) (the "Fund"), including the schedule of portfolio investments,
as of December 31, 1999, and the related statement of operations, statement of
changes in net assets, and the financial highlights for the year then ended.
These financial statements and the financial highlights are the responsibility
of the Fund's management. Our responsibility is to express an opinion on these
financial statements and the financial highlights based on our audit. The
statement of changes in net assets for the year ended December 31, 1998 and the
financial highlights for each of the four periods in the period then ended,
were audited by other auditors whose report, dated February 12, 1999, expressed
an unqualified opinion on those statements.
We conducted our audit in accordance with auditing standards generally accepted
in the United States. Those standards require that we plan and perform the
audit to obtain reasonable assurance about whether the financial statements and
financial highlights are free of material misstatement. An audit includes
examining on a test basis, evidence supporting the amounts and disclosures in
the financial statements and financial highlights. Our procedures include
confirmation of securities owned as of December 31, 1999, by correspondence
with the custodian and brokers. An audit also includes assessing the accounting
principles used and significant estimates made by management, as well as
evaluating the overall financial statement presentation. We believe that our
audit provides a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above, and audited by us, present fairly, in all material respects, the
financial position of Worldwide Emerging Markets Fund at December 31, 1999, the
results of its operations, the changes in its net assets, and the financial
highlights for the year then ended, in conformity with accounting principles
generally accepted in the United States.
/s/ Ernst & Young LLP
New York, New York
January 27, 2000
<PAGE>
Van Eck Global [LOGO] [GRAPHIC]
Retire on Your Terms/TM/
Variable Annuities
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.
