<PAGE>
================================================================================
Van Eck Global
================================================================================
Worldwide Insurance Trust
--------------------------------------------------------------------------------
[GRAPHIC]
SEMI-ANNUAL REPORT
June 30, 2000
discipline
Worldwide Hard Assets Fund
allocation
diversity
GLOBAL INVESTMENTS SINCE 1955
<PAGE>
Worldwide Hard Assets Fund
--------------------------------------------------------------------------------
Dear Shareholder:
We are pleased to report that the Worldwide Hard Assets Fund had a total return
of 3.93% for the six months ended June 30, 2000, compared with a 0.42% decline
for the S&P 500 Index.* During this period, hard assets had mixed results, with
exceptional returns on most energy securities and healthy performance in the
real estate sector, but disappointing results in most other hard asset sectors.
Large allocations to the energy and real estate sectors and reductions in
forest products and industrial metals holdings proved beneficial to portfolio
performance during the period.
Review
In the first half of the year, energy commodities and stocks were the clear
winners, particularly those that were natural gas related. Natural gas prices
soared, up 92% during the period. Natural gas-oriented exploration and
production companies, having languished in the first quarter, suddenly exploded
higher in April and May as it became clear that the natural gas supply and
demand equation was turning dramatically positive. A confluence of events was
responsible for this, including favorable weather during April and May (30%
warmer-than-normal weather led to increased natural gas usage for air
conditioning and electricity generation), declining supplies, and a longer-
than-expected maintenance period for nuclear generators, which resulted in
greater demand for natural gas. These factors led to a significant inventory
decline that continues to worsen.
The price of crude oil climbed over 35% during the six month period as OPEC
agreed to limit production, inventories were at historical lows, and oil
producers were reluctant to increase production. Exploration and production
stocks were up approximately 52% and oil services stocks were up on average
almost 40% over the last six months.
During the first half of the year, we increased the Fund's allocation to energy
shares from 36% to 48% of Fund assets at the beginning of 2000, a move that
helped performance. We continued to emphasize exploration and production
companies, which have been prime beneficiaries of higher energy prices.
Real estate securities substantially outperformed the general market in the
first half of the year, providing returns of over 13%. Strong fundamentals,
very attractive valuations and 7% yields all contributed to the sector's strong
performance. Another strong positive influence was an investor shift in focus
from growth stocks to defensive value stocks, such as property stocks, in a
highly volatile market in the second quarter. The top performing sectors among
real estate securities in the first half were hotel and apartment stocks;
office properties also performed well. Our emphasis on these sectors and our
decision to increase the Fund's real estate allocation from about 15% in the
beginning of the year to 20% by the end of June both boosted Fund returns.
The forest and paper products sector was down sharply overall in the first half
of the year in spite of rising pulp prices. Lumber prices fell substantially
lower and forest product stocks declined over 38% for the period despite strong
fundamentals, promising supply/demand pictures and healthy corporate
restructuring activity. Rather than focusing on these strengths, the market
rejected cyclical stocks as central banks worldwide continued to raise interest
rates and investors began to worry about a possible global economic slowdown.
We reduced the Fund's position in forest and paper product stocks from 24% in
January to the current weighting of approximately 10% as market direction
became clear in the second quarter.
Being cyclical in nature, industrial metals shares experienced much of the same
negative bias as the forest and paper products sector. As a result, they were
down dramatically in the first half of the year, despite only a slight decline
in related commodity prices and low inventories. We reduced the Fund's
industrial metals weighting from over 12% at the start of the year to about 7%
by June 30.
Precious metals have had mixed results so far this year with a slight decline
in the price of gold, but record highs for platinum prices and strength in
palladium prices as well. Precious metals shares, however, had disappointing
performance. We have maintained a small position of about 8% in this sector,
primarily in those metals shares that have an industrial demand base, such as
palladium.
<PAGE>
Worldwide Hard Assets Fund
--------------------------------------------------------------------------------
The Outlook
Looking forward, fundamentals for most hard asset sectors remain strong. Most
commodity companies have very healthy earnings momentum. This momentum will
probably slow in coming quarters, but we expect earnings to continue to
surprise on the upside.
In terms of the macroeconomic picture, forecasts of a slowdown in global
economic growth, we believe, have been exaggerated. The accelerated growth
rates of the last two years may not be repeated, but we do not believe we are
heading into a global recession. Thus, in general, hard asset securities should
perform well.
We plan to continue to favor energy companies in the near future, which are
expected to post second quarter earnings that are up sharply and which are
substantially higher than those of the general market or even those of the
technology sector. A reversion back to colder winters this year (with the end
of La Nina), increasing demand for natural gas-fired electricity and declining
supplies should support higher natural gas prices. On the oil side, current
high prices of $30 per barrel for crude may not be maintained. We expect prices
to be supported in the mid-$20 range due primarily to a lack of excess capacity
as well as a dearth of reinvestment in the industry. We will continue to focus
on those energy companies that will benefit the most from these elevated
prices.
We expect real estate securities to continue to provide competitive returns in
the second half of the year, driven by healthy fundamentals, attractive
dividend yields and continued rotation into the sector as a defensive play in
an uncertain market.
We would like to thank you for your participation in the Worldwide Hard Assets
Fund and look forward to helping you meet your investment objectives in the
future.
[PHOTO]
/s/ Derek S. van Eck
Derek S. van Eck
Portfolio Manager
July 20, 2000
*The Standard & Poor's 500 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 S&P 500 Index consists of 500 widely held common stocks, covering four
broad sectors (industrials, utilities, financial and transportation). It is a
market value-weighted index (stock price times shares outstanding), with each
stock affecting the index in proportion to its market value. Construction of
the S&P 500 Index proceeds from industry group to the whole. Since some
industries are characterized by companies of relatively small stock
capitalization, the Index is not comprised of the 500 largest companies on the
New York Stock Exchange. This Index, calculated by Standard & Poor's, is a
total return index with dividends reinvested.
<PAGE>
Worldwide Hard Assets Fund
--------------------------------------------------------------------------------
The performance data represents past performance and is not indicative of
future results. 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 to life insurance and annuity companies to fund
their variable annuity and variable life insurance products. 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.
[GRAPH]
Sector Weightings
as of June 30, 2000
Energy 48.3%
Real Estate 19.8%
Forest Products 9.8%
Precious Metals 7.6%
Industrial Metals 6.9%
Cash/Equivalents 5.5%
Electrical Equipment 1.7%
Transportation 0.4%
[GRAPH]
Geographical Weightings
as of June 30, 2000
United States 58.3%
Canada 19.7%
Cash/Equivalents 5.5%
Australia 5.1%
Other 4.5%
Russia 3.8%
United Kingdom 3.1%
<PAGE>
Worldwide Hard Assets Fund
Representative Holdings as of June 30, 2000*
--------------------------------------------------------------------------------
Global Industries Ltd.
(U.S., 2.4%)
Global Industries provides oil field construction services. These services
include pipeline construction, platform installation and removal, diving
services and construction support. The company provides its services to the
offshore oil and gas industry in the U.S. Gulf of Mexico and select
international areas.
Alcoa, Inc.
(U.S., 2.3%)
Alcoa is an integrated aluminum company. The company produces aluminum and
alumina. It is involved in mining, refining, smelting, fabricating and
recycling. Alcoa serves customers worldwide in the packaging, automotive,
aerospace, construction and other markets with a variety of fabricated and
finished products.
Talisman Energy, Inc.
(Canada, 2.3%)
Talisman Energy is an independent oil and gas producer. The company has
operations in Canada, the North Sea, Indonesia and Sudan. Talisman is also
conducting exploration in Algeria and Trinidad.
Boston Properties, Inc.
(U.S., 2.2%)
Boston Properties develops, redevelops, acquires, manages, operates and leases
office, industrial and hotel properties. The company has a significant presence
in the Boston, Washington, D.C., San Francisco and midtown Manhattan real
estate markets.
BP Amoco PLC
(United Kingdom, 2.1%)
BP Amoco is an oil and petrochemicals company. The company explores for and
produces oil and natural gas, refines, markets and supplies petroleum products,
and manufactures and markets chemicals. BP Amoco has operations in more than 70
countries.
Equity Office Properties Trust
(U.S., 2.1%)
Equity Office Properties is a fully integrated, self-administered and self-
managed real estate investment trust (REIT) engaged in acquiring, owning,
managing, leasing and renovating office properties and parking facilities. The
company's assets are owned by, and its operations are conducted through, EOP
Operating Limited Partnership.
Anadarko Petroleum Corp.
(U.S., 2.1%)
Anadarko is an independent oil and gas exploration and production company. The
company explores for oil in Kansas, Oklahoma and Texas, as well as offshore in
the Gulf of Mexico and Alaska. Anadarko also owns and operates gas-gathering
systems in its U.S. core producing areas. It also develops crude oil reserves
in Algeria.
Ensco International, Inc.
(U.S., 2.0%)
Ensco, an international offshore contract drilling company, provides marine
transportation services in the Gulf of Mexico. The company serves the oil and
gas industry.
Canadian Natural Resources Ltd.
(Canada, 2.0%)
Canadian Natural Resources acquires, explores for, develops and produces
natural gas, crude oil and related products. The company operates in the
Canadian provinces of Alberta, northeastern British Columbia and Saskatchewan.
Canadian Natural also operates in areas that have access for exploration
activities and where pipeline systems already exist.
Apache Corp.
(U.S., 2.0%)
Apache explores for and produces natural gas, crude oil and natural gas
liquids. The company has operations in North America, Egypt, western Australia,
Poland, China and Cote d'Ivoire.
-------
*Portfolio is subject to change.
<PAGE>
Worldwide Hard Assets Fund
Schedule of Portfolio Investments
June 30, 2000 (Unaudited)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
No. of Value
Shares Securities (a) (Note 1)
--------------------------------------------------------------
<C> <S> <C>
AUSTRALIA: 5.1%
Energy: 2.3%
514,506 Origin Energy Ltd. $ 495,480
2,021,000 Portman Ltd. 967,089
422,000 United Energy Ltd. 822,887
------------
2,285,456
------------
Industrial Metals: 1.3%
74,500 Capral Aluminum Ltd. 111,183
581,750 Mayne Nickless Ltd. 1,193,550
------------
1,304,733
------------
Precious Metals: 1.5%
535,000 Newcrest Mining Ltd. 1,440,046
------------
5,030,235
------------
BERMUDA: 0.4%
Transportation: 0.4%
22,000 Knightsbridge Tankers Ltd. 440,000
------------
BRAZIL: 0.9%
Forest Products: 0.9%
44,450 Aracruz Celulose S.A. 858,441
------------
CANADA: 19.7%
Energy: 8.5%
34,532 Alberta Energy Co. Ltd. 1,394,431
67,500 Canadian Natural Resources Ltd. 1,959,957
284,600 Cypress Energy, Inc. 1,287,609
26,550 Ensign Resources Service Group, Inc. 874,900
75,000 NQL Drilling Tools, Inc. 455,804
67,650 Talisman Energy, Inc. 2,240,686
706,000 Windsor Energy Corp. (b)* 185,927
------------
8,399,314
------------
Forest Products: 3.8%
116,000 Abitibi-Consolidated, Inc. 1,087,500
115,000 Canfor Corp. 1,021,170
94,050 Tembec, Inc. 917,700
100,000 Timberwest Forest Corp. 702,276
------------
3,728,646
------------
Industrial Metals: 0.9%
28,800 Alcan Aluminum Ltd. 892,800
------------
Precious Metals: 2.9%
26,000 Barrick Gold Corp. 472,875
1,614,800 Brazilian Resources, Inc. 905,047
160,900 Placer Dome, Inc. 1,538,606
------------
2,916,528
------------
</TABLE>
<TABLE>
<CAPTION>
No. of Value
Shares Securities (a) (Note 1)
-----------------------------------------------------------------
<C> <S> <C>
CANADA (continued)
Real Estate: 3.6%
75,000 Brookfield Properties Corp. $ 995,172
100,000 Oxford Properties Group, Inc. 1,144,574
81,000 TrizecHahn Corp. 1,447,875
------------
3,587,621
------------
19,524,909
------------
FINLAND: 0.7%
Forest Products: 0.7%
72,000 Stora Enso Oyj (R Shares) 657,242
------------
NETHERLANDS: 1.2%
Energy: 1.2%
20,000 Royal Dutch Petroleum Co. 1,231,250
------------
NORWAY: 0.3%
Energy: 0.3%
24,100 Stolt Comex Seaway S.A. 340,413
------------
RUSSIA: 3.8%
Energy: 3.8%
64,100 AO Tatneft (ADR) 628,981
4,299 Khanty-Mansiysk Oil Co. (b)* 2,042,054
7,400 Lukoil Holding Corp. (ADR) 374,884
7,400 Lukoil Holding Corp. Pfd. (ADR) 147,124
22,200 Surgutneftegaz, Inc. (Sponsored ADR) 292,834
22,200 Surgutneftegaz, Inc. Pfd. (Sponsored ADR) 250,394
------------
3,736,271
------------
SOUTH AFRICA: 1.0%
Forest Products: 0.7%
90,000 Sappi Ltd. (ADR) 663,750
------------
Precious Metals: 0.3%
688 Anglo American Platinum Corp. (ADR) 19,828
15,818 Anglogold Ltd. 325,258
1,011 Western Areas Gold Mining Co. Ltd. (ADR) 2,349
------------
347,435
------------
1,011,185
------------
UNITED KINGDOM: 3.1%
Energy: 2.1%
37,600 BP Amoco PLC (ADR) 2,126,750
------------
Industrial Metals: 1.0%
229,900 Billiton PLC 937,696
------------
3,064,446
------------
</TABLE>
See Notes to Financial Statements
<PAGE>
Worldwide Hard Assets Fund
Schedule of Portfolio Investments
June 30, 2000 (Unaudited)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
No. of Value
Shares Securities (a) (Note 1)
---------------------------------------------------------------------------
<C> <S> <C>
UNITED STATES: 58.3%
Electrical Equipment: 1.7%
50,300 Honeywell International Ltd. $ 1,694,481
-----------
Energy: 30.1%
41,650 Anadarko Petroleum Corp. 2,053,866
33,100 Apache Corp. 1,946,694
16,000 Cooper Cameron Corp. 1,056,000
12,600 Enron Corp. 812,700
55,200 Ensco International, Inc. 1,976,850
17,758 Exxon Mobil Corp. 1,394,003
59,000 Falcon Drilling Co., Inc. 1,390,188
128,000 Global Industries Ltd. 2,416,000
50,500 Global Marine, Inc. 1,423,469
72,000 Grant Prideco, Inc. 1,800,000
35,000 J.P. Morgan & Co., Crude Oil Commodity-Indexed Pref.
Security 3/04/02 1,380,313
40,700 Nabors Industries, Inc. 1,691,594
87,200 Ocean Energy, Inc. 1,237,150
44,600 Santa Fe International Corp. 1,558,213
11,600 Schlumberger Ltd. 865,650
9,520 Smith International, Inc. 693,175
10,000 Texaco, Inc. 532,500
37,980 Tidewater, Inc. 1,367,280
32,807 Transocean Sedco Forex, Inc. 1,753,124
20,000 USX-Marathon Group 501,250
21,500 Valero Energy Corp. 682,625
34,000 Williams Companies, Inc. (The) 1,417,375
-----------
29,950,019
-----------
Forest Products: 3.7%
37,000 Fort James Corp. 855,625
32,000 Georgia-Pacific Corp. 840,000
63,000 Louisiana-Pacific Corp. 685,125
30,000 Weyerhaeuser Co. 1,290,000
-----------
3,670,750
-----------
Industrial Metals: 3.7%
171,338 AK Steel Holding Corp. 1,370,704
78,820 Alcoa, Inc. 2,285,780
-----------
3,656,484
-----------
Insurance: 0.0%
3,000 Highlands Insurance Group, Inc. 28,125
-----------
</TABLE>
<TABLE>
<CAPTION>
No. of Value
Shares Securities (a) (Note 1)
------------------------------------------------------------
<C> <S> <C>
UNITED STATES (continued)
Precious Metals: 2.9%
145,000 Homestake Mining Corp. $ 996,875
66,975 Stillwater Mining Co. 1,866,928
-----------
2,863,803
-----------
Real Estate: 16.2%
32,000 AMB Property Corp. 730,000
16,000 Apartment Investment & Management Co. 692,000
22,000 Bedford Property Investors, Inc. 408,375
57,500 Boston Properties, Inc. 2,220,938
58,500 Brandywine Realty Trust 1,118,813
36,000 Crescent Real Estate Equities Co. 738,000
76,831 Equity Office Properties Trust 2,117,656
28,000 Equity Residential Properties Trust 1,288,000
60,000 Host Marriott Corp. 562,500
44,000 Macerich Co. (The) 970,750
35,000 Mack-Cali Realty Corp. 899,062
64,500 Prentiss Properties Trust 1,548,000
35,000 Prologis Trust 745,938
65,000 Simon Property Group, Inc. 1,442,187
236,692 Wyndham International, Inc. 591,730
-----------
16,073,949
-----------
57,937,611
-----------
Total Stocks and Other Investments: 94.5%
(Cost: $87,240,024) 93,832,003
-----------
</TABLE>
<TABLE>
<CAPTION>
Short-Term Date of
Obligation: 6.0% Maturity Coupon
------------------------------------------------------------------------------
<S> <C> <C> <C>
Repurchase Agreement (Note 10): Purchased on
6/30/00; maturity value $5,926,000 (with State
Street Bank & Trust Co., collateralized by
$5,995,000 Federal National Mortgage Associa-
tion--5.94% due 9/04/01 with a value of
$6,055,474)
(Cost: $5,926,000) 7/03/00 6.45% 5,926,000
------------
Total Investments: 100.5%
(Cost: $93,166,024) 99,758,003
Other assets less liabilities: (0.5)% (464,200)
------------
Net Assets: 100% $ 99,293,803
============
</TABLE>
See Notes to Financial Statements
<PAGE>
Worldwide Hard Assets Fund
Schedule of Portfolio Investments
June 30, 2000 (Unaudited)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Summary of
Net Assets % of
By Industry Net Assets
----------- ----------
<S> <C>
Electrical
Equipment 1.7%
Energy 48.3%
Forest Products 9.8%
Industrial Met-
als 6.9%
Precious Metals 7.6%
Real Estate 19.8%
</TABLE>
<TABLE>
<CAPTION>
Summary of
Net Assets % of
By Industry Net Assets
----------- ----------
<S> <C>
Transportation 0.4%
Short-term Obligation 6.0%
Other assets less liabilities (0.5)%
-----
100.0%
=====
</TABLE>
-------
(a) Unless otherwise indicated, securities owned are shares of common stock.
(b) Restricted security, see Note 6.
* Fair value as determined by the Board of Trustees.
Glossary:
ADR-American Depositary Receipt
See Notes to Financial Statements
<PAGE>
Worldwide Hard Assets Fund Financial Statements
--------------------------------------------------------------------------------
Statement of Assets and Liabilities
June 30, 2000 (Unaudited)
<TABLE>
<S> <C>
Assets:
Investments, at value (cost, $93,166,024) (Note 1)............... $ 99,758,003
Cash and foreign currency........................................ 61,206
Cash--initial margin for equity swap (Note 8).................... 110,970
Receivables:
Securities sold................................................. 3,133,514
Dividends and interest.......................................... 160,728
Capital shares sold............................................. 81,461
Due from broker (Note 8)........................................ 66,106
------------
Total assets................................................... 103,371,988
------------
Liabilities:
Payables:
Securities purchased............................................ 3,399,418
Capital shares redeemed......................................... 536,373
Due to broker (Note 1).......................................... 94,600
Unrealized depreciation on forward foreign currency contracts
(Note 5)....................................................... 5,342
Due to adviser.................................................. 3,424
Accounts payable................................................ 39,028
------------
Total liabilities.............................................. 4,078,185
------------
Net assets....................................................... $ 99,293,803
============
Shares outstanding............................................... 8,818,247
============
Net asset value, redemption and offering price per share......... $ 11.26
============
Net assets consist of:
Aggregate paid in capital....................................... $116,610,161
Unrealized appreciation of investments, swaps and foreign
currencies..................................................... 6,552,064
Undistributed net investment income............................. 544,223
Accumulated realized loss....................................... (24,412,645)
------------
$ 99,293,803
============
</TABLE>
Statement of Operations
Six Months Ended June 30, 2000 (Unaudited)
<TABLE>
<S> <C> <C>
Income (Note 1):
Dividends (less foreign taxes withheld of $34,962)....... $1,040,657
Interest................................................. 184,249
----------
Total income........................................... 1,224,906
Expenses:
Management (Note 2)...................................... $479,314
Administration (Note 2).................................. 1,772
Reports to shareholders.................................. 18,766
Trustees' fees and expenses.............................. 15,758
Professional............................................. 15,512
Custodian................................................ 15,112
Interest (Note 9)........................................ 6,708
Other.................................................... 10,076
--------
Total expenses......................................... 563,018
----------
Net investment income.................................. 661,888
----------
Realized and Unrealized Gain (Loss) on Investments (Note
3):
Realized gain from security transactions................. 1,939,965
Realized loss from foreign currency transactions......... (43,497)
Realized gain from options............................... 712,876
Realized loss from futures contracts..................... (89,375)
Change in unrealized appreciation of forward foreign
currency contracts and foreign currency transactions.... (11,646)
Change in unrealized appreciation of investments, swaps
and options written..................................... (804,504)
----------
Net gain on investments, forward foreign currency
contracts and foreign currency transactions............. 1,703,819
----------
Net Increase in Net Assets Resulting from Operations..... $2,365,707
==========
</TABLE>
See Notes to Financial Statements
<PAGE>
Worldwide Hard Assets Fund Financial Statements
--------------------------------------------------------------------------------
Statement of Changes in Net Assets
<TABLE>
<CAPTION>
Six Months
Ended
June 30, 2000 Year Ended
(Unaudited) December 31, 1999
------------- -----------------
<S> <C> <C>
Increase in Net Assets:
Operations:
Net investment income........................ $ 661,888 $ 1,402,621
Realized gain (loss) from security
transactions................................ 1,939,965 (9,700,166)
Realized gain (loss) from foreign currency
transactions................................ (43,497) 147,521
Realized gain from options................... 712,876 769,188
Realized gain from futures contracts......... (89,375) 985,307
Change in unrealized appreciation of forward
foreign currency contracts and foreign
currency transactions....................... (11,646) (6,374)
Change in unrealized appreciation of
investments, swaps and options written...... (804,504) 23,987,889
------------- -------------
Increase in net assets resulting from
operations.................................. 2,365,707 17,585,986
------------- -------------
Dividends to shareholders from:
Net investment income........................ (1,112,083) (1,337,036)
------------- -------------
Capital share transactions*:
Net proceeds from sales of shares............ 111,895,947 227,914,783
Reinvestment of dividends and distributions.. 1,112,083 1,337,036
Cost of shares reacquired.................... (113,878,400) (232,402,878)
------------- -------------
Decrease in net assets resulting from capital
share transactions.......................... (870,370) (3,151,059)
------------- -------------
Total increase in net assets................. 383,254 13,097,891
Net Assets:
Beginning of period........................... 98,910,549 85,812,658
------------- -------------
End of period (including undistributed net
investment income of $544,223 and $1,037,915,
respectively)................................ $ 99,293,803 $ 98,910,549
============= =============
* Shares of Beneficial Interest Issued and
Redeemed (unlimited number of $.001 par
value shares authorized):
Shares sold.................................. 10,130,842 22,221,297
Reinvestment of dividends and distributions.. 107,864 149,724
Shares reacquired............................ (10,441,234) (22,675,520)
------------- -------------
Net decrease................................. (202,528) (304,499)
============= =============
</TABLE>
See Notes to Financial Statements
<PAGE>
Worldwide Hard Assets Fund
-------------------------------------------------------------------------------
Financial Highlights
For a share outstanding throughout each period
<TABLE>
<CAPTION>
Six Months Eight Months Year Ended
Ended June 30, Year Ended December 31, Ended April 30,
2000 -------------------------- December 31, --------------------
(Unaudited) 1999 1998 1997 1996 1996 1995
-------------- ------- ------- -------- ------------ -------- --------
<S> <C> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period.... $ 10.96 $ 9.20 $ 15.72 $ 16.72 $ 16.92 $ 13.49 $ 13.11
------- ------- ------- -------- -------- -------- --------
Income from Investment
Operations:
Net Investment Income.. 0.07 0.15 0.21 0.09 0.02 0.12 0.08
Net Gain (Loss) on
Investments (both
Realized and
Unrealized)........... 0.35 1.75 (4.43) (0.36) 0.09 3.44 0.37
------- ------- ------- -------- -------- -------- --------
Total from Investment
Operations............. 0.42 1.90 (4.22) (0.27) 0.11 3.56 0.45
------- ------- ------- -------- -------- -------- --------
Less Dividends and
Distributions:
Dividends from Net
Investment Income..... (0.12) (0.14) (0.09) (0.31) (0.16) (0.13) (0.07)
Distributions from
Realized Capital
Gains................. -- -- (2.21) (0.42) (0.15) -- --
Total Distributions..... (0.12) (0.14) (2.30) (0.73) (0.31) (0.13) (0.07)
------- ------- ------- -------- -------- -------- --------
Net Asset Value, End of
Period................. $ 11.26 $ 10.96 $ 9.20 $ 15.72 $ 16.72 $ 16.92 $ 13.49
======= ======= ======= ======== ======== ======== ========
Total Return (a)........ 3.93% 21.00% (30.93%) (1.67%) 0.60% 26.66% 3.43%
-------------------------------------------------------------------------------------------------------
Ratios/Supplementary
Data
Net Assets, End of
Period (000)........... $99,294 $98,911 $85,813 $155,933 $167,417 $186,370 $127,320
Ratio of Gross Expenses
to Average Net Assets.. 1.17%* 1.26% 1.20% 1.18% 1.24%* 1.08% --
Ratio of Net Expenses
(excluding interest
expense) to Average Net
Assets................. 1.16%* 1.26% 1.16% 1.17% 1.23%* 1.08%(b) 0.96%
Ratio of Net Investment
Income to Average Net
Assets................. 1.38%* 1.39% 1.64% 0.64% 0.10%* 0.81% 0.71%
Portfolio Turnover Rate. 52.38% 199.43% 153.25% 102.82% 46.14% 26.37% 23.30%
</TABLE>
-------
(a) Total return is calculated assuming an initial investment made at the net
asset value at the beginning of the period, reinvestment of dividends and
distributions at net asset value during the period and a redemption on the
last day of the period. Total return for periods of less than one year are
not annualized.
(b) The ratio was not impacted by the directed brokerage arrangement.
* Annualized.
See Notes to Financial Statements
-------------------------------------------------------------------------------
Notes to Financial Statements (Unaudited)
Note 1--Significant Accounting Policies:
Van Eck Worldwide Insurance Trust (the "Trust"), organized as a Massachusetts
business trust on January 7, 1987, is registered under the Investment Company
Act of 1940. The following is a summary of significant accounting policies
consistently followed by the Worldwide Hard Assets Fund, a diversified fund
(the "Fund") of the Trust, in the preparation of its financial statements. The
policies are in conformity with accounting principles generally accepted in
the United States. The preparation of financial statements in conformity with
generally accepted accounting principles requires management to make estimates
and assumptions that effect the reported amounts in the financial statements.
Actual results could differ from those estimates.
A. Security Valuation--Securities traded on national exchanges or traded on
the NASDAQ National Market System are valued at the last sales prices reported
at the close of business on the last business day of the period. Over-the-
counter securities not included in the NASDAQ National Market System and
listed securities for which no sale was reported are valued at the mean of the
bid and asked prices. Short-term obligations purchased with more than sixty
days remaining to maturity are valued at market. Short-term obligations
purchased with sixty days or less to maturity are valued at amortized cost
which with accrued interest approximates value. Futures are valued using the
closing price reported at the close of the respective exchange. Forward
foreign currency contracts are valued at the spot currency rate plus an amount
("points") which reflects the differences in interest rates between the U.S.
and the foreign markets. Securities for which quotations are not available are
stated at fair value as determined by the Board of Trustees.
B. Federal Income Taxes--It is the Fund's policy to comply with the provisions
of the Internal Revenue Code applicable to regulated investment companies and
to distribute all of its taxable income to its shareholders. Therefore, no
federal income tax provision is required.
C. Currency Translation--Assets and liabilities denominated in foreign
currencies and commitments under forward foreign currency contracts are
translated into U.S. dollars at the mean of the quoted bid and asked prices of
such currencies on the last business day of the period. Purchases and sales of
investments are translated at the exchange rates prevailing when such
investments were acquired or sold. Income and expenses are translated at the
exchange rates prevailing when accrued. The portion of realized and unrealized
gains and losses on investments that results from fluctuations in foreign
currency exchange rates is not separately disclosed. Recognized gains or
<PAGE>
Worldwide Hard Assets Fund
-------------------------------------------------------------------------------
Notes to Financial Statements (continued)
losses attributable to foreign currency fluctuations on foreign currency
denominated assets, other than investments and liabilities are recorded as net
realized gains and losses from foreign currency transactions.
D. Dividends and Distributions--Dividend income and distributions to
shareholders are recorded on the ex-dividend date. Dividends on foreign
securities are recorded when the Fund is informed of such dividends. Income
distributions and capital gain distributions are determined in accordance with
income tax regulations which may differ from such amounts reported in
accordance with generally accepted accounting principles.
E. Other--Security transactions are accounted for on the date the securities
are purchased or sold. Interest income is accrued as earned.
F. Use of Derivative Instruments
Option Contracts--The Fund may invest, for hedging and other purposes, in call
and put options on securities, currencies and commodities. Call and put
options give the Fund the right but not the obligation to buy (calls) or sell
(puts) the instrument underlying the option at a specified price. The premium
paid on the option, should it be exercised, will, on a call, increase the cost
of the instrument acquired and, on a put, reduce the proceeds received from
the sale of the instrument underlying the option. If the options are not
exercised, the premium paid will be recorded as a capital loss upon
expiration. The Fund may incur additional risk to the extent the value of the
underlying instrument does not correlate with the movement of the option
value.
The Fund may also write call or put options. As the writer of an option, the
Fund receives a premium. The Fund keeps the premium whether or not the option
is exercised. The premium will be recorded, upon expiration of the option, as
a short-term capital gain. If the option is exercised, the Fund must sell, in
the case of a written call, or buy, in the case of a written put, the
underlying instrument at the exercise price. The Fund may write only covered
puts and calls. A covered call option is an option in which the Fund owns the
instrument underlying the call. A covered call sold by the Fund exposes it
during the term of the option to possible loss of opportunity to realize
appreciation in the market price of the underlying instrument or to possible
continued holding of an underlying instrument which might otherwise have been
sold to protect against a decline in the market price of the underlying
instrument. A covered put exposes the Fund during the term of the option to a
decline in price of the underlying instrument. A put option sold by the Fund
is covered when, among other things, cash or short-term liquid securities are
placed in a segregated account to fulfill the obligations undertaken. The Fund
may incur additional risk from investments in written currency options if
there are unanticipated movements in the underlying currencies.
Futures Contracts--The Fund may buy and sell financial futures contracts for
hedging purposes. When a fund enters into a futures contract, it must make an
initial deposit ("initial margin") as a partial guarantee of its performance
under the contract. As the value of the futures contract fluctuates, the Fund
is required to make additional margin payments ("variation margin") to cover
any additional obligation it may have under the contract. In the remote chance
a broker cannot fulfill its obligation, the Fund could lose the variation
margin due to it. Risks may be caused by an imperfect correlation between the
movements in price of the futures contract and the price of the underlying
instrument and interest rates.
Structured Notes--The Fund may invest in indexed securities whose value is
linked to one or more currencies, interest rates, commodities or financial or
commodity indices. When the Fund purchases a structured note (a non-publicly
traded indexed security entered into directly between two parties) it will
make a payment of principal to the counterparty. The Fund will purchase
structured notes only from counterparties rated A or better by S&P, Moody's or
another nationally recognized statistical rating organization. Van Eck
Associates Corp. will monitor the liquidity of structured notes under
supervision of the Board of Trustees and structured notes determined to be
illiquid will be aggregated with other illiquid securities limited to 15% of
the net assets of the Fund. Indexed securities may be more volatile than the
underlying instrument itself, and present many of the same risks as investing
in futures and options. Indexed securities are also subject to credit risks
associated with the issuer of the security with respect to both principal and
interest. At June 30, 2000, the Fund had a JP Morgan & Co., Crude Oil
Commodity--Indexed Preferred Security with a value of $1,380,313 that
represented 1.4% of the net assets of the Fund.
Commodity Swaps--The Fund entered into the following commodity swap to gain
investment exposure to the relevant spread of the commodity refernce prices. A
swap is an agreement that obligates the parties to exchange cash flows at
specified intervals. At termination date, a final payment is made based on the
swap's notional amount on trade date versus the value on termination date.
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 reference prices. The Fund
records a net receivable or payable daily, based on the change in the value of
the swap. The net receivable or payable for financial statement purposes is
shown as due to or from broker. At June 30, 2000, the Fund had the following
outstanding commodity swap (stated in U.S. dollars):
<TABLE>
<CAPTION>
Number Termi- Unrealized
of Notional nation Deprecia-
Underlying Prices Shares Amount Date tion
----------------- ------ ---------- ------- ----------
<C> <S> <C> <C> <C>
Oil-Brent (DTD)--
Platts Crude Oil
Marketwire Price vs
the Oil-WTI-
NYMEXPrice 1,010 $1,155,100 9/30/00 $(94,600)
</TABLE>
Note 2--Management Agreement--Van Eck Associates Corporation (the "Adviser")
earns fees for investment management and advisory services provided to the
Fund. This fee is based on an annual rate of 1% of the first $500 million of
average daily net assets, .90 of 1% on the next $250 million and .70 of 1% on
the excess over $750 million. Certain of the officers and trustees of the
Trust are officers, directors or stockholders of the Adviser and Van Eck
Securities Corporation. In accordance with the advisory agreement, the Fund
paid the Adviser for costs incurred in connection with certain administrative
functions for the six months ended June 30, 2000.
The Fund directs certain portfolio trades to a broker that, in turn, pays a
portion of the Fund's operating expenses.
Note 3--Investments--Purchases and sales of securities other than short-term
obligations aggregated $46,940,609 and $49,183,029, respectively, for the six
months ended June 30, 2000. For federal income tax purposes, the identified
cost of investments owned at June 30, 2000 was $93,166,024.As of June 30,
2000, net unrealized appreciation for federal income tax purposes aggregated
$6,591,979,
<PAGE>
Worldwide Hard Assets Fund
-------------------------------------------------------------------------------
Notes to Financial Statements (continued)
of which $15,504,982, related to appreciated securities and $8,913,003 related
to depreciated securities.
As of December 31, 1999, the Fund had a capital loss carry forward of
$23,536,779 available, $7,560,621 expiring December 31, 2006 and $15,976,158,
expiring December 31, 2007.
Transactions in put/call options written for the six months ended June 30,
2000 were as follows:
<TABLE>
<CAPTION>
Number of Premiums
Contracts Received
--------- ----------
<S> <C> <C>
Options outstanding at beginning of Period 1,200 $1,396,000
------ ----------
Options written 480 480,000
Options expired (480) (480,000)
Options closed (1,200) (1,396,000)
------ ----------
Options outstanding at end of period 0 $ 0
====== ==========
</TABLE>
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.
The Fund may concentrate its investments in companies which are significantly
engaged in the exploration, development, production and distribution of gold
and other natural resources such as strategic and other metals, minerals,
forest products, oil, natural gas and coal and by investing in gold bullion
and coins. Since the Fund may so concentrate, it may be subject to greater
risks and market fluctuations than other more diversified portfolios. The
production and marketing of gold and other natural resources may be affected
by actions and changes in governments. In addition, gold and natural resources
may be cyclical in nature.
Note 5--Forward Foreign Currency Contracts--The Fund may buy and sell forward
currency contracts to settle purchases and sales of foreign denominated
securities. In addition, the Fund may enter into forward currency contracts to
hedge foreign denominated assets. Realized gains and losses from forward
currency contracts are included in realized gain (loss) from foreign currency
transactions. At June 30, 2000, the Fund had the following outstanding forward
foreign currency contract:
<TABLE>
<CAPTION>
Value At
Settlement Current Unrealized
Contracts Date Value Depreciation
--------- ---------- -------- ------------
<S> <C> <C> <C>
Forward Foreign Currency Sale Contract:
AUD 1,463,664
expiring 7/05/00 $870,149 $875,491 $(5,342)
</TABLE>
The Fund may incur additional risk from investments in forward foreign
currency contracts if the counterparty is unable to fulfill its obligation or
there are unanticipated movements of the foreign currency relative to the U.S.
dollar.
Note 6--Restricted Securities
The following securities are restricted as to sale and deemed illiquid:
<TABLE>
<CAPTION>
Percent of
Net Assets
Dates Total at
Acquired Cost Value 6/30/00
-------- ---------- ---------- ----------
<C> <S> <C> <C> <C>
1/31/97 Khanty-Mansiysk Oil Co. $1,410,006 $2,042,054 2.1%
7/09/96-
5/27/98 Windsor Energy Corp. 1,906,154 185,927 0.2%
---
2.3%
===
</TABLE>
Note 7--Trustee Deferred Compensation Plan--The Trust established a Deferred
Compensation Plan (the "Plan") for Trustees. Commencing January 1, 1996, the
Trustees can elect to defer receipt of their Trustee fees until retirement,
disability or termination from the board. The Fund's contributions to the Plan
are limited to the amount of fees earned by the participating Trustees. The
fees otherwise payable to the participating Trustees are invested in shares of
the Van Eck Funds as directed by the Trustees. The Plan has been approved by
the Internal Revenue Service.
The Fund has elected to show the deferred liability net of the asset for
financial statement purposes. As of June 30, 2000 the total value of the
assets and corresponding liability of the Fund's portion of the Plan is
$60,111.
Note 8--Equity Swap--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, 2000, the Fund had the
following outstanding equity swap (stated in U.S. dollars):
<TABLE>
<CAPTION>
Number Termi-
Underlying of Notional nation Unrealized
Security Shares Amount Date Appreciation
---------- ------- -------- ------- ------------
<C> <S> <C> <C> <C>
Gazprom Oil Co. 680,800 $110,970 3/15/01 $66,106
</TABLE>
Note 9--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
<PAGE>
Worldwide Hard Assets Fund
--------------------------------------------------------------------------------
Notes to Financial Statements (continued)
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
has 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. For the six months ended June 30, 2000, the Fund
borrowed an average daily amount of $149,063 at a weighted average interest
rate of 6.22% under the Facility.
Note 10--Repurchase Agreements--Collateral for repurchase agreements, the value
of which must be at least 102% of the underlying debt obligation, is held by
the Fund's custodian. In the remote chance the counterparty should fail to
complete the repurchase agreement, realization and retention of the collateral
may be subject to legal proceedings and the Fund would become exposed to market
fluctuations on the collateral.
<PAGE>
[GRAPHIC]
Retire on Your Terms
Variable Annuities
Van Eck Global[LOGO]
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.
