<PAGE>
Van Eck Global
--------------------------------------------------------------------------------
Worldwide Insurance Trust
--------------------------------------------------------------------------------
[GRAPHIC] SEMI-ANNUAL REPORT
June 30, 2000
discipline
Worldwide Bond Fund
allocation
diversity
GLOBAL INVESTMENTS SINCE 1955
<PAGE>
Worldwide Bond Fund
--------------------------------------------------------------------------------
Dear Shareholder:
The year 2000 started out as a bit of a respite for bond investors following a
difficult 1999. Almost all of the global bond markets turned in positive
performances in local terms for the first half of 2000, but the strength of the
U.S. dollar continued to counteract those gains for U.S. dollar-based
investors. Bond prices around the world headed higher (and yields lower) during
the first quarter and into mid-April as global central bankers tightened
monetary policy in what was seen by investors as a vigilant stance against
inflation. A strong U.S. Consumer Price Index report on April 14 dealt the
global bond markets their first significant setback of the year as investors
became nervous that inflation might get the better of global central bankers
and bond yields headed higher. Following the U.S. Federal Reserve's 50-basis-
point (0.50%) rate hike on May 16, bond yields once again headed lower but
ended the quarter essentially unchanged. The Van Eck Worldwide Bond Fund lost
0.19% during the period under review, versus a gain of 0.03% for the benchmark
Salomon Smith Barney World Government Bond Index.*
Bond Market Review
During the first half of the year, the Federal Reserve continued its gradualist
approach to tightening monetary policy. Interest rates have been raised a total
of six times in twelve months--three of which occurred in 2000, including an
aggressive step of a single 50-basis point increase during May. The Fed left
rates unchanged at its June meeting, as some signs of slowing economic growth
became evident toward the end of the second quarter.
The U.S. bond market was the best performer during the first half of the year
(in US$ terms). The U.S. Treasury announced a larger-than-expected program of
buying back government bonds, which diminished the supply of these debt
instruments. This, coupled with the strength of the U.S. dollar, a continued
budget surplus, and the preemptive nature of the Federal Reserve, helped make
the U.S. bond market an attractive choice for global bond investors. Treasury
buying on stock-related weakness also buoyed prices as the Nasdaq Composite
Index** plunged over 1,900 points from its March high to its initial low in
April. We maintained an overweight position in the U.S. throughout the first
half (29.7% of Fund assets at June 30), which helped boost Fund performance. In
particular, the Fund had a heavy weighting to the 30-year bond sector.
European economies experienced a pickup in growth and inflation. As a result,
the European Central Bank raised rates four times during the first six months
of the year (a total of 125 basis points), which in effect flattened the yield
curve and dampened inflation expectations. While the European bond markets
(44.7% of Fund assets) performed positively in local currency terms, the
strength of the U.S. dollar continued to hurt U.S. dollar-based returns. The
euro continued to weaken versus the dollar on the back of unfavorable growth
differentials, investor apathy, and questions over the political resolve of
member countries through the end of May. However, recent signs of a slowing
U.S. economy and increased growth in Europe have narrowed both growth and
interest rate differentials and helped to rally the euro over 7% versus the
U.S. dollar from its May 4 low. The euro strengthened slightly during the
second quarter, however the currency still finished relatively flat for the
quarter and down 5.3% year to date. We added to the Fund's existing exposure to
the euro in the second quarter and the absolute performance of the Fund was
negatively impacted. Relative to the Index, however, the Fund was underweight
the euro in the first quarter (at approximately 23%) and ended the second
quarter with a neutral weighting (of about 32%).
We continued to maintain overweight positions in the non-euro countries of the
United Kingdom (14.7% of Fund assets) and Sweden (4.9% of assets). These bond
markets had the best local currency performances among the developed European
bond markets, with both markets gaining 4.2% for the first half of 2000. Sweden
was also the best performing European bond market in U.S. dollar terms, turning
in a positive 1.5% performance for the first half of 2000. Performance of the
UK bond market in dollar terms was in line with most other European bond
markets (down 2.2%). The British pound sterling fell 6.4% versus the U.S.
dollar during the period as
<PAGE>
Worldwide Bond Fund
--------------------------------------------------------------------------------
investors began to speculate that UK growth and base rates were peaking in the
second quarter.
Japanese bonds managed a modestly positive return for the six months ended June
30 and rose 0.7% in local terms (-2.6% in US$ terms). The government's program
of fiscal stimulus resulted in significant issuance of government bonds. A
deteriorating fiscal position was a major factor in leading Moody's and Fitch
IBCA, the rating agencies, to downgrade Japan's credit rating one notch from
the most secure AAA rating. The Japanese yen performed strongly at the end of
the first quarter on signs of improving economic activity and at the end of the
second quarter on suggestions that Japan's zero interest rate policy may soon
come to an end, although it ended the half down 3.4% versus the U.S. dollar.
After two consecutive quarters of negative growth in the third and fourth
quarters of 1999, the Japanese economy rebounded in the first three months of
2000 with an annualized GDP growth rate of 10%. Some signs of further economic
pickup are evident. We added Japanese currency exposure to the portfolio at
favorable levels toward the end of the first quarter, which improved Fund
performance. At June 30, the Fund had a 19% weighting in Japanese yen. We
continued to hold no Japanese bonds as low yields, a poor fiscal situation, and
the potential for stronger growth continue to make Japanese government bonds
unattractive in our view.
The bond markets of commodity-related economies had some of the best
performances, in local currency terms, of developed bond markets. However,
currencies of these countries were battered in the first half of 2000 and the
poor performance of these currencies more than negated the positive bond
performances. In South Africa (0% of Fund assets), political turmoil began to
take its toll and interest rate hikes began to slow the economy. As a result,
we sold our South Africa exposure in the second quarter in an effort to cut the
commodity currency most leveraged to economic growth.
Outlook
We believe that the Federal Reserve will maintain its shift toward tightening
monetary policy as the U.S. fiscal environment continues to improve, domestic
demand remains strong and tight labor markets continue. However, recent signs
of slowing economic growth will likely reduce the degree of future hikes, and
the presidential elections may weigh in as a factor helping to leave rates
unchanged through November. We continue our bullish view of the U.S. bond
market and plan to maintain an overweight exposure into the second half of the
year.
Again, we continue to hold a negative view on the Japanese bond market as very
low yield levels combined with a worsening fiscal position serve to make the
market relatively unattractive.
We are encouraged by continued evidence of improved growth in European
economies and we look for the euro to outperform in the second half of 2000. We
also look for European bond markets to perform relatively well in the second
half as we feel that the inflationary pressures associated with the strong
rally in energy prices may be subsiding, thus providing a supportive backdrop
for the bond markets.
We appreciate your participation in the Worldwide Bond Fund and look forward to
helping you meet your investment goals in the future.
[PHOTO] [PHOTO]
/s/ Charles /s/ Gregory
Cameron Krenzer
Charles T. Cameron Gregory F. Krenzer
Co-Portfolio Co-Portfolio
Manager Manager
July 15, 2000
<PAGE>
Worldwide Bond Fund
--------------------------------------------------------------------------------
The Salomon Smith Barney World Government Bond Index and the Nasdaq
Composite Index are unmanaged indices and include the reinvestment of all
dividends, but do not reflect the payment of transaction costs, advisory
fees or expenses that are associated with an investment in the Fund. The
Indices' performance is not illustrative of the Fund's performance. Indices
are not securities in which investments can be made.
* The SSB World Government Bond Index is a market capitalization-weighted
benchmark that tracks the performance of approximately 20 world government
bond markets.
** The Nasdaq Composite Index is a broad-based capitalization weighted index of
all Nasdaq national market and small-cap stocks.
[GRAPH]
Geographical Breakdown
as of June 30, 2000
United States 29.7%
Germany 14.8%
United Kingdom 14.7%
Cash/Equivalents 6.8%
Australia 5.9%
Canada 5.6%
Sweden 4.9%
France 4.7%
Spain 3.2%
Brazil 2.6%
Mexico 2.6%
Ireland 2.4%
New Zealand 2.1%
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.
<PAGE>
Worldwide Bond Fund
Schedule of Portfolio Investments
June 30, 2000 (Unaudited)
-------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal Value
Country Amount Bonds (Note 1)
----------------------------------------------------------
<S> <C> <C> <C>
BONDS AND NOTES: 93.2%
AUSTRALIA: 5.9%
Australia Government Bond
AUD 7,400,000 7.50% due 7/15/05 $ 4,700,856
-----------
BRAZIL: 2.6%
Republic of Brazil Bond
USD 2,000,000 11.625% due 4/15/04 2,025,000
-----------
CANADA: 5.6%
Government of Canada Bond
CAD 6,500,000 7.00% due 9/01/01 4,446,195
-----------
FRANCE: 4.7%
French Government Bond
EUR 3,899,695 5.50% due 10/12/01 3,756,647
-----------
GERMANY: 14.8%
Bundesrepublik Deutschland Bonds
EUR 3,579,043 7.375% due 1/03/05 3,715,411
2,709,847 6.00% due 1/04/07 2,694,533
3,000,000 4.75% due 7/04/28 2,566,105
3,000,000 4.50% due 7/04/09 2,724,571
-----------
11,700,620
-----------
IRELAND: 2.4%
Irish Government Bond
EUR 1,714,146 8.00% due 8/18/06 1,861,089
-----------
MEXICO: 2.6%
United Mexican States Bond
USD 2,000,000 9.75% due 4/06/05 2,085,000
-----------
NEW ZEALAND: 2.1%
New Zealand Government Bond
NZD 3,350,000 10.00% due 3/15/02 1,649,101
-----------
SPAIN: 3.2%
Spanish Government Bond
EUR 3,000,000 4.00% due 1/31/10 2,546,316
-----------
SWEDEN: 4.9%
Swedish Government Bonds
SEK 5,000,000 10.25% due 5/05/03 642,528
28,000,000 6.00% due 2/09/05 3,274,357
-----------
3,916,885
-----------
</TABLE>
<TABLE>
<CAPTION>
Principal Value
Country Amount Bonds (Note 1)
-------------------------------------------------------------
<S> <C> <C> <C>
UNITED KINGDOM: 14.7%
Great Britain Government Bonds
GBP 2,250,000 8.00% due 6/10/03 $ 3,590,710
4,800,000 7.50% due 12/07/06 8,031,397
-----------
11,622,107
-----------
UNITED STATES: 29.7%
U.S. Treasury Notes
USD 8,600,000 6.50% due 8/15/05* 8,694,066
1,000,000 5.875% due 9/30/02* 988,750
5,000,000 5.50% due 5/15/09* 4,782,815
U.S. Treasury Bonds
6,000,000 6.625% due 2/15/27* 6,363,750
3,000,000 5.25% due 2/15/29* 2,662,500
-----------
23,491,881
-----------
Total Bonds and Notes: 93.2%
(Cost: $79,246,649) 73,801,697
-----------
</TABLE>
<TABLE>
<CAPTION>
Date of Value
Short-Term Obligation: 4.2% Maturity Coupon (Note 1)
-------------------------------------------------------------------------------
<S> <C> <C> <C>
Repurchase Agreement (Note 8): Purchased on
6/30/00; maturity value USD3,320,000 (with State
Street Bank & Trust Co., collateralized by
USD3,395,000 Federal National Mortgage Association
- 5.80% due 3/15/02 with a value of USD3,395,463)
(Cost: $3,320,000) 7/03/00 6.45% 3,320,000
-----------
Total Investments: 97.4% (Cost: $82,566,649) 77,121,697
Other assets less liabilities: 2.6% 2,097,628
-----------
Net Assets: 100% $79,219,325
===========
</TABLE>
-------
* These securities are segregated as collateral for forward foreign currency
contracts.
See Notes to Financial Statements
<PAGE>
Worldwide Bond Fund Financial Statements
--------------------------------------------------------------------------------
Statement of Assets and Liabilities
June 30, 2000 (Unaudited)
<TABLE>
<S> <C>
Assets:
Investments, at value (cost, $82,566,649) (Note 1)................ $77,121,697
Cash and foreign currency......................................... 410,298
Receivables:
Interest......................................................... 1,757,614
Capital shares sold.............................................. 167,641
-----------
Total assets...................................................... 79,457,250
-----------
Liabilities:
Payables:
Capital shares redeemed.......................................... 115,972
Unrealized depreciation on forward foreign currency contracts
(Note 4)........................................................ 69,910
Due to Advisor................................................... 4,025
Accounts payable................................................. 48,018
-----------
Total liabilities................................................. 237,925
-----------
Net assets........................................................ $79,219,325
===========
Shares outstanding................................................ 7,798,390
===========
Net asset value, redemption price and offering price per share.... $ 10.16
===========
Net assets consist of:
Aggregate paid in capital........................................ $85,835,142
Unrealized depreciation of investments, forward foreign currency
contracts and foreign currencies................................ (5,537,290)
Undistributed net investment income.............................. 1,115,656
Accumulated realized loss........................................ (2,194,183)
-----------
$79,219,325
===========
</TABLE>
Statement of Operations
Six Months Ended June 30, 2000 (Unaudited)
<TABLE>
<S> <C> <C>
Income (Note 1):
Interest income (Note 1) (net of foreign taxes withheld
of $4,851).............................................. $ 2,571,866
Expenses:
Management (Note 2)...................................... $396,845
Administration (Note 2).................................. 1,504
Custodian................................................ 18,583
Professional fees........................................ 17,194
Reports to shareholders.................................. 16,618
Trustees' fees and expenses.............................. 12,186
Interest (Note 7)........................................ 4,024
Other.................................................... 11,861
--------
Total expenses........................................... 478,815
-----------
Net investment income.................................... 2,093,051
-----------
Realized and Unrealized Gain (Loss) on Investments (Note
3):
Realized loss from security transactions................. (551,635)
Realized loss from foreign currency transactions......... (1,142,110)
Change in unrealized depreciation of investments......... (1,062,129)
Change in unrealized depreciation of forward foreign
currency contracts and foreign currency transactions.... 8,347
-----------
Net loss on investments and foreign currency
transactions............................................ (2,747,527)
-----------
Net Decrease in Net Assets Resulting from Operations..... $ (654,476)
===========
</TABLE>
See Notes to Financial Statements
<PAGE>
Worldwide Bond Fund Financial Statements
--------------------------------------------------------------------------------
Statements of Changes in Net Assets
<TABLE>
<CAPTION>
Six Months
Ended Year Ended
June 30, 2000 December 31,
(unaudited) 1999
------------- ------------
<S> <C> <C>
Decrease in Net Assets:
Operations:
Net investment income............................. $ 2,093,051 $ 4,908,346
Realized gain (loss) from security transactions... (551,635) 1,747,285
Realized loss from foreign currency transactions.. (1,142,110) (3,708,838)
Change in unrealized appreciation (depreciation)
of investments................................... (1,062,129) (11,326,799)
Change in unrealized appreciation (depreciation)
of forward foreign currency contracts and foreign
currency transactions............................ 8,347 (316,520)
------------ ------------
Net decrease in net assets resulting from
operations....................................... (654,476) (8,696,526)
------------ ------------
Dividends and Distributions to shareholders from:
Net investment income............................. (4,089,654) (4,563,103)
Net realized gains................................ -- (2,038,833)
------------ ------------
Total dividends and distributions................. (4,089,654) (6,601,936)
------------ ------------
Capital share transactions*:
Net proceeds from sales of shares................. 47,742,916 65,420,051
Reinvestment of dividends and distributions....... 4,089,654 6,601,936
Cost of shares reacquired......................... (52,744,094) (91,131,055)
------------ ------------
Decrease in net assets resulting from capital
share transactions............................... (911,524) (19,109,068)
------------ ------------
Total decrease in net assets...................... (5,655,654) (34,407,530)
Net Assets:
Beginning of period............................... 84,874,979 119,282,509
------------ ------------
End of period (including undistributed net
investment income of $1,115,656 and $3,780,283
respectively).................................... $ 79,219,325 $ 84,874,979
============ ============
*Shares of Beneficial Interest Issued and Redeemed
(unlimited number of $.001 par value shares
authorized).......................................
Shares sold....................................... 4,673,724 5,915,699
Reinvestment of dividends and distributions....... 410,608 571,596
Shares reacquired................................. (5,222,428) (8,265,435)
------------ ------------
Net decrease...................................... (138,096) (1,778,140)
============ ============
</TABLE>
See Notes to Financial Statements
<PAGE>
Worldwide Bond Fund
-------------------------------------------------------------------------------
Financial Highlights
For a share outstanding throughout each period
<TABLE>
<CAPTION>
Six Months For the
Ended Eight Months
June 30, Year Ended December 31, Ended Year 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.... $ 10.69 $ 12.28 $ 10.99 $ 11.10 $ 10.88 $ 11.46 $ 10.05
------- ------- -------- -------- -------- ---------- ----------
Income From Investment
Operations:
Net Investment Income.. 0.25 0.61 0.57 0.48 0.36 0.58 0.68*
Net Gain (Loss) on
Investments (both
realized and
unrealized)........... (0.28) (1.52) 0.82 (0.23) 0.17 (0.34) 0.77
------- ------- -------- -------- -------- ---------- ----------
Total from Investment
Operations............. (0.03) (0.91) 1.39 0.25 0.53 0.24 1.45
------- ------- -------- -------- -------- ---------- ----------
Less Dividends and
Distributions:
Dividends from Net
Investment Income..... (0.50) (0.47) (0.10) (0.36) (0.31) (0.82) (0.04)
Distributions from
Realized Capital
Gains................. -- (0.21) -- -- -- -- --
------- ------- -------- -------- -------- ---------- ----------
Total Dividends and
Distributions.......... (0.50) (0.68) (0.10) (0.36) (0.31) (0.82) (0.04)
------- ------- -------- -------- -------- ---------- ----------
Net Asset Value, End of
Period................. $ 10.16 $ 10.69 $ 12.28 $ 10.99 $ 11.10 $ 10.88 $ 11.46
======= ======= ======== ======== ======== ========== ==========
Total Return (a)........ (0.19%) (7.82%) 12.75% 2.38% 4.98% 2.07% 14.51%
------------------------------------------------------------------------------------------------------------
Ratios/Supplementary
Data...................
Net Assets, End of
Period (000)........... $79,219 $84,875 $119,283 $112,461 $118,676 $ 107,541 $ 113,466
Ratio of Gross Expenses
to Average Net Assets.. 1.21%(b) 1.22% 1.15% 1.12% 1.17%(b) 1.10% 0.99%
Ratio of Net Expenses
(excluding interest
expense) to Average Net
Assets................. 1.20%(b) 1.22% 1.15% 1.12% 1.16%(b) 1.08% 0.98%
Ratio of Net Investment
Income to Average Net
Assets................. 5.27%(b) 4.92% 4.72% 4.31% 4.99%(b) 5.26% 6.24%
Portfolio Turnover Rate. 9.75% 46.84% 30.59% 135.36% 73.95% 208.05% 265.87%
</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 a period of less than one year is
not annualized.
(b) Annualized.
* Based on average shares outstanding.
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 Bond Fund (the "Fund"), a non-
diversified series 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 affect the reported
amounts in the financial statements. Actual results could differ from those
estimates.
A. Security Valuation--Securities traded on national exchanges or 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
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. Dividend and Distributions--Dividend income and distributions to
shareholders are recorded on the ex-dividend date. Income
<PAGE>
Worldwide Bond Fund
-------------------------------------------------------------------------------
Notes to Financial Statements (unaudited) (continued)
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.
Note 2--Management Agreement--Van Eck Associates Corporation (the "Adviser")
earned fees for investment management and advisory services provided to the
Fund. The fee is based on an annual rate of 1% on 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.
Note 3--Investments--Purchases and proceeds from sales of securities, other
than short-term obligations, aggregated $7,404,008 and $10,123,880
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
$82,566,649. At June 30, 2000, net unrealized depreciation for federal income
tax purposes aggregated $5,444,952, of which $576,857 related to appreciated
securities and $6,021,809 related to depreciated securities.
As of December 31, 1999, the Fund had a capital loss carryforward of
$1,176,682 available, expiring December 31, 2007.
Note 4--Forward Foreign Currency Contracts--The Fund may buy and sell forward
foreign currency contracts to settle purchases and sales of foreign
denominated securities. In addition, the Fund may enter into forward foreign
currency contracts to hedge foreign denominated assets. Realized gains and
losses from forward foreign currency contracts are included in realized gain
(loss) from foreign currency transactions. At June 30, 2000, the Fund had the
following outstanding forward foreign currency contracts:
<TABLE>
<CAPTION>
Value At
Settlement Current Unrealized
Contracts Date Value Depreciation
--------- ----------- ----------- ------------
<S> <C> <C> <C>
Forward Foreign Currency Buy Contracts:
EUR 5,000,000 expiring 9/20/00 $ 4,822,700 $ 4,795,750 $(26,950)
JPY 1,600,000,000 expiring 9/20/00 15,384,615 15,346,068 (38,547)
Forward Foreign Currency Sale Contract:
GBP 1,250,000 expiring 9/20/00 1,894,375 1,898,788 (4,413)
--------
$(69,910)
========
</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 5--Concentration of Risk--The Fund invests in foreign securities.
Investments in foreign securities may involve a greater degree of risk than
investments in domestic securities due to political, economic or social
instability. Foreign investments may also be subject to foreign taxes and
settlement delays. Since the Fund may have significant investments in foreign
debt securities it may be subject to greater credit and interest risks and
greater currency fluctuations than portfolios with significant investments in
domestic debt securities.
Note 6--Trustee Deferred Compensation Plan--The Trust established a Deferred
Compensation Plan (the "Plan") for Trustees. Commencing January 1, 1996, the
Trustees can elect to defer receipt of their Trustee fees until retirement,
disability or termination from the board. The Fund's contributions to the Plan
are limited to the amount of fees earned by the participating Trustees. The
fees otherwise payable to the participating Trustees are invested in shares of
the Van Eck Funds as directed by the Trustees. The Plan has been approved by
the Internal Revenue Service.
The Fund has elected to show the deferred liability net of the asset for
financial statement purposes.
As of June 30, 2000, the total value of the assets and corresponding liability
of the Fund's portion of the Plan is $57,611.
Note 7--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 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 $137,185 at a weighted average interest rate of 6.69% under the
Facility.
Note 8--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>
Van Eck Global [LOGO] [LOGO]
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Investment Adviser: Van Eck Associates Corporation Variable Annuities
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.
