<PAGE>
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Van Eck Global
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Worldwide Insurance Trust
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[GRAPHIC]
SEMI-ANNUAL REPORT
June 30, 2000
discipline
Worldwide Emerging Markets Fund
allocation
diversity
GLOBAL INVESTMENTS SINCE 1955
<PAGE>
Worldwide Emerging Markets Fund
--------------------------------------------------------------------------------
Dear Shareholder:
After a year of exceptional performance in 1999, the emerging markets
experienced profit-taking during the first six months of 2000. A number of
factors contributed to this market adjustment, including hikes in U.S. interest
rates, the possibility of a U.S. economic slowdown, and the extreme volatility
of the U.S. markets. Technology stocks, which were particularly volatile, are a
primary driver of the Asian markets. In this environment, the Van Eck Worldwide
Emerging Markets Fund declined 12.41% in the first half of the year, compared
with a loss of 7.99% for the MSCI Emerging Markets Free Index.*
Review
We continue to have a very positive outlook for the emerging markets overall.
Most emerging markets are experiencing strong economic growth due to a sharp
rebound in domestic demand, sustained low interest rates and subdued inflation.
Demand from developed economies has added to this strength. In terms of the
markets, company earnings remain strong, corporate restructuring continues and
stock valuations are attractive. Therefore, we view the recent market
correction as just that, a correction in the middle of a bull market cycle.
As we forecasted both economic and market recoveries in the end of 1998, the
Fund was fully invested, with an emphasis on growth stocks and the technology
sector. These strategies helped the Fund outperform in 1999. However, the
Fund's bias towards growth and technology stocks hurt performance in the second
quarter of 2000, as investors realigned their portfolios in favor of cheaper
value stocks.
We have maintained the portfolio's growth and technology emphases since company
fundamentals remain strong. We believe that these stocks continue to offer the
most promising results. In terms of country weightings, we have favored those
markets that are benefiting from the technology boom, in particular those of
Taiwan, Korea, India and Israel. We have also emphasized those countries that
have been in the beginnings of a cyclical recovery, such as Brazil, China
(through both Chinese companies and China-related Hong Kong companies) and
Russia. We have maintained a substantial allocation to the Mexican market as
growth there remains healthy and the country's economy is converging with that
of the U.S.
The best performing Asian markets for the first half were those of Greater
China (China, +48%; Taiwan, -0.3%; and Hong Kong, -5.0%+), whereas the
Southeast Asian countries generally suffered from a lack of interest. One
exception to this was Malaysia, which gained 2.6%. One of the reasons for the
relative outperformance of Malaysia and Taiwan was their weighting increase in
the main benchmark index (and hence, their increased weighting in many
investment portfolios) as of May 31.
The Taiwanese market (13.4% of the Fund's total net assets at June 30)
performed well over the first quarter, but gave back those gains in the second.
We were underweight through the first half, but less so in the second quarter,
which contributed negatively to returns. Fears of slackening demand for
electronics goods as the U.S. economy slows down appears to have been part of
the reason for this. However, the sector, which is crucial to the country's
economy, appears to be performing very strongly, with many companies showing
record sales. The technology sector did not fully participate in the rally that
many U.S. technology stocks experienced in June, but we hope that there will be
an element of "catch-up" in the next few months. Certainly, earnings growth has
been very strong. In the political arena, elections at the end of the second
quarter saw the incumbent party's candidate defeated, paving the way for some
progress in stalled cross-straits negotiations.
China (2.0% of assets) is responding well to monetary stimulus and exports are
benefiting from strengthening external demand. Consumers appear to be spending
again, and the savage deflation that has been a feature of the Chinese economy
may be lifting. It appears as though the Chinese economy may be in its best
shape since the early nineties. Hong Kong (6.3% of assets) appears to be
recovering nicely, with office demand showing notable strength. Further
economic strength on the mainland should reinforce this. Our total exposure to
<PAGE>
Worldwide Emerging Markets Fund
--------------------------------------------------------------------------------
Hong Kong is nearly twice the benchmark weighting, as we feel strongly that
these markets will do well in the second half of the year.
In Malaysia (3.0% of assets), the economy continues to recover well with low
inflation. Interest rates should remain at very subdued levels, providing
valuation support for equities. On the negative side, most international money
managers are skeptical of corporate reform efforts, and remain underweight. We
entered the year with an overweight position in Malaysia and cut the exposure
to underweight in the second quarter.
India's government budget is always keenly watched for signs of government
direction and ability to control the large fiscal deficit. By and large, most
observers were disappointed this year, and the market sold off heavily toward
the end of the first quarter. A relatively strong performance in the second
quarter left the broad market down less than 1% for the first half.
Unfortunately, however, many software stocks were especially hard hit. The
issue for software stocks has essentially been a valuation one, as their
business outlook remains very attractive. At June 30, 8.2% of the portfolio was
invested in Indian securities.
The South Korean market (11.7% of assets) remains something of an enigma. For
most of the first half, the market performed poorly despite strong fundamentals
and, in particular, good valuations, ending the period down 20.1%. In June, the
market recovered somewhat. Although foreign investors were not large sellers,
local retail investors took money out of the market, forcing redemptions at the
investment trust companies. The motivating factor behind the move to cash,
domestically, appears to be fears of further strains in the financial sector.
In our opinion, the market has sufficiently priced in these problems and we
expect the market to continue to rally.
In Latin America, the major markets of Mexico and Brazil (12.1% and 9.7% of
assets, respectively) started the first half with gains, only to fall back in
the second quarter. Mexico finished the first half of the year with a loss of
5.8%. The most important domestic event for the market was the presidential
elections that took place at the end of the first half. As we write this, it
appears that the 70-year rule of the PRI party will come to an end, with a
decisive victory for Vincente Fox. The peaceful changeover in power exemplifies
Mexico's increasing political stability, which should be positive for the
Mexican market.
In Eastern Europe, the Russian market (4.0% of assets) was extremely volatile.
After strong first quarter performance (+25%), the market gave all of its gains
back in the second quarter to finish the half with a decline of 2.2%.
Macroeconomic data, however, points to a continuing recovery from the crisis of
1998. The strong oil price has helped, and improved tax collection has
bolstered the government's finances. Putin's election looks broadly positive in
terms of political stability and economic reform. However, there are fears that
he is attempting to tackle too many vested interests too quickly. A lower risk
premium should benefit the equity market in the second half.
Other European markets put in mixed performances, ranging from +13.5% for
Israel (5.1% of assets) to -32% for Greece. The Fund has been underweight the
Greek market during the first half with no assets allocated to the country at
June 30 as we were concerned about valuations. We expect Greece to graduate to
"developed" market status sometime toward the end of the year.
South Africa took a hit with its currency, the rand, declining approximately
10% in the first half. Much of this loss can be attributed to a more bearish
view on the direction of interest rates as well as the political instability of
its neighbor, Zimbabwe. The Fund remains underweight with a 5.2% allocation to
this market. We do not favor South Africa's commodity-related stocks since
there are some signs of lower expectations for OECD growth.
The Outlook
We are positive on the outlook for both the emerging market economies and
markets. Emerging market economies are clearly moving to a more sustainable
growth rate after the sharp rebound of the last eighteen months. Nonetheless,
export growth
<PAGE>
Worldwide Emerging Markets Fund
--------------------------------------------------------------------------------
remains strong, most countries have current account surpluses, and consumer
strength and investment are growing. The markets may be volatile over the next
few months, particularly until the outlook for the U.S. economy and interest
rates becomes clearer. Exogenous factors may still dominate the performance of
emerging markets near term. However, with less uncertainty and less volatility
in the major global markets, we believe the emerging markets will continue to
perform due to overwhelmingly positive domestic and corporate news in these
regions.
We would like to thank you for your participation in the Van Eck Worldwide
Emerging Markets Fund, and we look forward to working with you in the future.
[PHOTO] [PHOTO]
/s/ David A. Semple /s/ David M. Hulme
David A. Semple David M. Hulme
Co-Portfolio Co-Portfolio Manager
Manager
July 6, 2000
Investors should be aware that emerging market investments can be extremely
volatile. Because of this, they should be viewed as a complement to a broad-
based portfolio. Shareholders should be aware that investing in the equity and
fixed income markets of developing countries involves exposure to potentially
unstable governments, economies based on only a few industries and securities
markets that trade a small number of securities and may therefore at times be
illiquid.
*The Morgan Stanley Capital International (MSCI) 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.
+All individual country returns are in U.S. dollar terms and are based on
country-specific stock markets; for example, the Hong Kong market is measured
by the Hang Seng Index.
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.
At certain times in the past, the Adviser waived certain or all expenses of the
Fund. Had the Fund incurred all expenses, investment returns would have been
reduced.
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 Emerging Markets Fund
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Geographical Weightings
as of June 30, 2000
[GRAPH]
Taiwan 13.4%
Mexico 12.1%
South Korea 11.7%
Brazil 9.7%
India 8.2%
Hong Kong 6.3%
Cash/Equivalents 6.1%
Singapore 5.4%
South Africa 5.2%
Israel 5.1%
Other 4.2%
Russia 4.0%
Turkey 3.6%
Malaysia 3.0%
China 2.0%
<PAGE>
Worldwide Emerging Markets Fund
Top Ten Equity Holdings as of June 30, 2000*
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Samsung Electronics
(South Korea, 3.1%)
Samsung Electronics manufactures and exports a wide range of consumer and
industrial electronic equipment such as memory chips, semiconductors, personal
computers, telecommunication equipment and televisions.
Telefonos de Mexico S.A. de C.V. (Telmex)
(Mexico, 2.9%)
Telmex is the dominant telecom carrier in Mexico with over 12 million fixed
line customers and over seven million cellular subscribers. Recent initiatives
have included a focus on profitability, overseas expansion into Central and
South America and development of Internet and data services. Telmex trades at a
substantial discount to its Western peers.
Pacific Century Regional Development Ltd.
(Singapore, 2.3%)
Pacific Century is an investment holding and property development and
management company. Pacific Century Cyberworks is its largest subsidiary and is
involved in the provision of venture capital to Asian Internet and technology
start-ups.
SK Telecom Co., Ltd.
(South Korea, 2.1%)
SK Telecom is Korea's market leader in mobile communications, with over 10
million subscribers and a market share of 43%.
Dimension Data Holdings Ltd.
(South Africa, 2.1%)
Dimension Data is an investment holding company operating in the information
technology industry worldwide. The group focuses on communications networking
infrastructures and electronic commerce software applications.
Satyam Computer Services Ltd.
(India, 2.1%)
Satyam is a software services company specializing in IBM, Windows and Unix
platforms. The company undertakes turnkey execution of projects in India and
abroad, and has pioneered offshore software developments in India using its
high-speed satellite data communication. Satyam also provides Internet access
and services through Satyam Infoway.
R.O.C. Taiwan Fund
(Taiwan, 1.9%)
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.
United Microelectronics Corp.
(Taiwan, 1.9%)
United Microelectronics designs, manufactures and markets integrated circuits
(ICs) and related electronics products. The company's main products are
consumer electronics ICs, memory ICs, personal computer peripheral ICs and
communication ICs.
TV Azteca S.A.
(Mexico, 1.7%)
TV Azteca owns and operates two national television networks through two anchor
stations in Mexico, and numerous other stations throughout the country. The
company also produces television programming for broadcast over its networks
and for international sale.
Grupo Financiero Banamex Accival, S.A. (GF Banacci)
(Mexico, 1.6%)
GF Banacci is a full-range financial services group with banking, insurance and
asset management activities. It is the second-largest bank in Mexico and has
recently launched a number of e-business initiatives. The Mexican banking
system is beginning to grow again after several years of rebuilding since the
Tequila Crisis in 1995. Banacci is well positioned to take advantage of this
growth.
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*Portfolio is subject to change.
<PAGE>
Van Eck Worldwide Emerging Markets Fund
Schedule of Portfolio Investments
June 30, 2000 (unaudited)
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<TABLE>
<CAPTION>
No. of Value
Country Shares Securities (a) (Note 1)
--------------------------------------------------------------------------------
<C> <C> <S> <C>
BRAZIL: 9.7%
15,000 CBD (Pao de Azucar) (ADR) $ 481,875
3,300,000 Celular CRT Participacoes Pfd. 1,430,397
46,000,000 Companhia Energetica de Minas Gerais Pfd. 797,811
17,111,100 CIA Eletricidade de Bahia (b) 584,792
130,000 CIA Paranaense de Energia (Copel) Pfd. (ADR) 1,210,625
82,700 Embratel Participacoes S.A. 1,953,788
40,000,000 Gerdau Metalurgica PN 844,679
98,552,090 Gerdau S.A. Pfd. 1,209,242
920,000 Industrias Klabin de Papel e Celulose PN 766,880
150,000 Industrias Klabin de Papel e Celulose PN (ADR) 1,247,265
55,000 Petroleo Brasileiro S.A. Pfd. 1,665,740
12,300 Starmedia Network, Inc. 232,163
30,000 Tele Centro Oeste Celular Participacoes S.A.
(ADR) 360,000
37,000 Tele Centro Sul
Participacoes S.A. (ADR) 2,703,313
117,745 Tele Norte Leste Participacoes S.A. (ADR) 2,781,726
300,000,000 Telecelular Sul Participacoes PN 1,343,707
45,000 Uniao de Bancos Brasileiros S.A. 1,293,750
----------
20,907,753
----------
CHILE: 0.2%
75,000 Antofagasta Holdings PLC 403,702
----------
CHINA: 2.0%
2,000,000 Matrix8848.net Holdings, LLC (b)(c)(d) 2,000,000
6,350,000 Yizheng Chemical Fibre Co. Ltd. 1,262,571
6,850,000 Zhenhai Refining & Chemical Co. Ltd. 1,063,228
----------
4,325,799
----------
EGYPT: 0.8%
60,000 Commercial International Bank (Sponsored GDR) 645,000
32,000 Mobinil-Egyptian Mobile Services 1,041,412
----------
1,686,412
----------
</TABLE>
<TABLE>
<CAPTION>
No. of Value
Country Shares Securities (a) (Note 1)
------------------------------------------------------------------------------
<C> <C> <S> <C>
HONG KONG: 6.3%
548,500 Asia Satellite Telecommunications Holdings
Ltd. $ 1,875,099
3,000,000 Brilliance China Automotive Holdings Ltd. 515,676
206,000 Cheung Kong (Holdings)
Ltd. 2,279,170
100,000 China Telecom (Hong Kong) Ltd. 881,908
313,000 Citic Pacific Ltd. 1,638,155
415,000 Dah Sing Financial Group 1,671,584
475,000 Li & Fung Ltd. 2,376,341
1,857,800 New World Infrastructure Ltd. 1,644,366
1,260,000 Wheelock & Co. Ltd. 824,311
-----------
13,706,610
-----------
HUNGARY: 0.5%
11,000 EGIS Rt. 460,818
17,200 Magyar Tavkozlesi Rt. (Sponsored ADR) 593,400
-----------
1,054,218
-----------
INDIA: 8.2%
65,500 Dr. Reddy's Laboratories Ltd. 1,924,658
58,000 HCL Technologies Ltd. 1,674,141
50 Hindustan Lever Ltd. 3,188
444,500 Hindustan Petroleum Corp. Ltd. 1,222,002
140,500 Housing Development Finance Corporation Ltd. 1,739,808
12,000 Infosys Technologies Ltd. 2,241,433
100 ITC Ltd. 1,774
36,500 NIIT Ltd. 1,791,075
67,300 Satyam Computer Services Ltd. 4,491,691
67,000 Sonata Software Ltd. 945,353
62,363 Videsh Sanchar Nigam Ltd. 1,683,033
-----------
17,718,156
-----------
INDONESIA: 1.1%
2,466,827 PT Astra International Tbk 774,625
1,860,000 PT Bank Pan Indonesia Tbk Warrants (expiring
7/08/02) 17,628
43,000,000 PT Lippo Bank Tbk 613,760
2,500,000 PT Telekomunikasi Indonesia 877,819
-----------
2,283,832
-----------
</TABLE>
See Notes to Financial Statements
<PAGE>
Worldwide Emerging Markets Fund
Schedule of Portfolio Investments (continued)
June 30, 2000 (unaudited)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
No. of Value
Country Shares Securities (a) (Note 1)
-------------------------------------------------------------------------------
<C> <C> <S> <C>
ISRAEL: 5.1%
32,500 Elbit Ltd. $ 300,625
80,000 Fundtech Corp. 2,080,000
65,000 Geo Interactive Media Group PLC 1,241,809
30,000 Gilat Satellite Networks Ltd. 2,081,250
43,000 Nice Systems Ltd. (ADR) 3,319,063
14,000 Orbotech, Ltd. 1,300,250
125,000 Sapiens International Corporation N.V. 789,063
-----------
11,112,060
-----------
MALAYSIA: 3.0%
685,000 Berjaya Sports Toto Berhad 1,117,632
595,000 Commerce Asset Holdings Berhad 1,722,368
904,000 MAA Holdings Berhad 2,378,947
190,000 Unisem (M) Berhad 1,350,000
-----------
6,568,947
-----------
MEXICO: 12.1%
800,000 Carso Global Telecom 2,291,422
106,521 Cemex S.A. (Sponsored ADR) 2,489,928
6,250 Cemex S.A. Warrants (expiring 12/13/02) 16,602
850,000 Consorcio ARA S.A. de C.V. 1,005,046
530,000 Corporacion GEO S.A. de C.V. 869,782
573,205 Corporation Interamericana de Entretenimento
S.A. de C.V. (Series B) 2,249,467
400,000 Grupo Continential S.A. 407,726
100,000 Grupo Elektra S.A. (Sponsored GDR) 1,025,000
830,000 Grupo Financiero Banamex Accival, S.A. de C.V. 3,502,574
2,651,000 Grupo Financiero Bancomer S.A. (GDR) 1,351,103
310,000 Grupo Mexico S.A. (Series B) 875,287
109,900 Telefonos de Mexico S.A. de C.V. (Sponsored
ADR) 6,278,038
282,000 TV Azteca S.A. (Sponsored ADR) 3,718,875
-----------
26,080,850
-----------
PHILIPPINES: 0.3%
1,500,000 Benpres Holdings Corp. 143,931
222,600 Benpres Holdings Corp. (GDR) 417,375
-----------
561,306
-----------
</TABLE>
<TABLE>
<CAPTION>
No. of Value
Country Shares Securities (a) (Note 1)
-------------------------------------------------------------------------------
<C> <C> <S> <C>
POLAND: 1.0%
50 Central European Foods, Inc. (b)(c) $ 275,000
10,000 Computerland S.A. 282,434
11,500 Optimus S.A. 533,410
20,250 Softbank S.A. 1,050,861
-----------
2,141,705
-----------
ROMANIA: 0.1%
48,544 Romanian Growth Fund, The (c) 48,544
7,486,425 SNP Petrom (b)(c) 217,252
-----------
265,796
-----------
RUSSIA: 4.0%
175,000 AO Tatneft (Sponsored ADR) 1,717,188
17,000 Golden Telecom, Inc. 505,750
38,000 Lukoil Holding (ADR) 1,925,082
100,000 Norilsk Nickel 732,500
110,000 RAO Unified Energy System (GDR) 1,265,000
189,400 Surgutneftegaz, Inc. (Sponsored ADR) 2,498,324
-----------
8,643,844
-----------
SINGAPORE: 5.4%
384,800 Datacraft Asia Ltd. 3,386,240
280,000 Natsteel Electronics Ltd. 858,548
368,000 Pacific Century Regional Development Ltd. 5,024,472
75,000 Singapore Airlines Ltd. 741,973
85,000 Singapore Land Ltd. Warrants (expiring 3/23/05
) 76,714
281,000 Star Cruises PLC 1,517,400
-----------
11,605,347
-----------
SOUTH AFRICA: 5.2%
1,050,000 African Bank Investments Ltd. 1,372,124
1,000,000 Comparex Holdings Ltd. 1,762,537
552,670 Dimension Data Holdings Ltd. 4,572,977
215,000 Sappi Ltd. 1,617,257
2,074,900 Softline Ltd. 1,909,642
-----------
11,234,537
-----------
SOUTH KOREA: 11.7%
18,300 Cheil Communications, Inc. 2,387,973
115,575 Daou Technology, Inc. 1,119,446
28,500 Daum Communications Corp. 2,709,356
135,115 Housing & Commercial Bank, Korea 3,162,711
114,283 Hyundai Electronics Industries Co. 2,254,861
28,000 Korea Telecom Corp. 2,465,954
</TABLE>
See Notes to Financial Statements
<PAGE>
Worldwide Emerging Markets Fund
Schedule of Portfolio Investments (continued)
June 30, 2000 (unaudited)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
No. of Value
Country Shares Securities (a) (Note 1)
---------------------------------------------------------------------------
<C> <C> <S> <C>
SOUTH KOREA (continued)
20,000 Samsung Electronics $ 6,618,686
13,990 SK Telecom Co. 4,579,583
-----------
25,298,570
-----------
TAIWAN: 13.4%
343,250 Acer, Inc. (GDR) 3,209,388
225,000 Ambit Microsystems Corp. 2,233,523
1,130,700 Compal Electronics, Inc. 2,778,449
83,000 Evergreen Marine Corp. 817,550
190,000 Hon Hai Precision Industry Co. Ltd. 1,719,121
1,603,000 Polaris Securities Co. Ltd. 1,466,047
481,300 R.O.C. Taiwan Fund 4,181,294
375,000 Siliconware Precision Industries Co. (ADR) 3,468,750
1,501,800 United Microelectronics Corp. 4,179,135
203,000 Via Technologies, Inc. 3,138,324
542,000 Zyxel Communications Corp. 1,781,676
-----------
28,973,257
-----------
</TABLE>
<TABLE>
<CAPTION>
No. of Value
Country Shares Securities (a) (Note 1)
---------------------------------------------------------------------------
<C> <C> <S> <C>
THAILAND: 0.2%
2,638,600 Golden Land Property Development PLC $ 356,841
-----------
TURKEY: 3.6%
81,500,000 Akbank T.A.S. 630,932
34,000,000 Aksigorta A.S. 671,736
16,500,000 Carsi Buyuk Magazacilik A.S. 479,005
25,000,000 Dogan Sirketler Grubu Holding A.S. 604,805
41,000,000 Dogan Yayin Holding A.S. 694,316
8,000,000 Enka Holding Yatirim A.S. 1,774,085
80,498,000 Turkiye Garanti Bankasi A.S. 973,711
6,856,000 Vestel Elektronik Sanayi ve Ticoret. A.S. 2,073,270
-----------
7,901,860
-----------
Total Stocks and Other Investments: 93.9%
(cost: $178,137,085)......................................... 202,831,402
-----------
</TABLE>
See Notes to Financial Statements
<PAGE>
Worldwide Emerging Markets Fund
Schedule of Portfolio Investments (continued)
June 30, 2000 (unaudited)
--------------------------------------------------------------------------------
See Notes to Financial Statements
<TABLE>
<CAPTION>
Short-Term Date of Value
Obligation: 1.0% Maturity Coupon (Note 1)
-----------------------------------------------------------------------------
<S> <C> <C> <C>
Repurchase Agreement (Note 12): Purchased on
6/30/00; maturity value $2,201,000 (with State
Street Bank & Trust Co., collateralized by
$2,235,000 Federal National Mortgage
Association--6.00%due 9/24/01 with a value of
$2,250,894)
(Cost: $2,201,000) 7/03/00 6.45% $ 2,201,000
------------
Total Investments: 94.9%
(cost: $180,338,085) 205,032,402
Other assets less liabilities: 5.1% 11,076,270
------------
Net Assets: 100% $216,108,672
============
</TABLE>
<TABLE>
<CAPTION>
Summary of % of
Investments Net
By Industry Assets
----------- ------
<S> <C>
Advertising 1.1%
Airlines 0.3%
Automotive 0.6%
Building and
Construction 2.4%
Chemicals 0.6%
Commercial
Services 1.1%
Computer
Software &
Technology 19.6%
Conglomerates 1.9%
Electric
Utilities 0.4%
Electronics &
Electrical
Equipment 8.5%
Engineering &
Construction 0.8%
Entertainment &
Leisure 2.3%
Financial
Services &
Insurance 10.7%
Food & Beverages 0.3%
Forest Products 1.7%
</TABLE>
<TABLE>
<CAPTION>
Summary of % of
Investments Net
By Industry Assets
----------- ------
<S> <C>
Investment Fund 2.0%
Manufacturing 1.0%
Media 2.0%
Metals & Mining 0.7%
Oil & Gas 4.8%
Pharmaceuticals 1.1%
Real Estate 1.7%
Retail 0.9%
Semiconductors & Semiconductor Equipment 8.1%
Steel 1.0%
Telecommunications 16.5%
Transportation 0.4%
Utilities 1.4%
Short-term Obligation 1.0%
Other assets less liabilities 5.1%
------
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.
(d) Affiliated company. See Schedule of Affiliated Company Transactions (Note
11).
Glossary:
ADR-American Depositary Receipt
GDR-Global Depositary Receipt
<PAGE>
Worldwide Emerging Markets Fund Financial Statements (unaudited)
--------------------------------------------------------------------------------
Statement of Assets and Liabilities
<TABLE>
<S> <C> <C>
June 30, 2000
Assets:
Investments, at value (cost, $180,338,085) (Note 1)............ $205,032,402
Cash and foreign currency...................................... 6,082,096
Cash--initial margin for equity swap (Note 8).................. 1,509,083
Receivables:
Securities sold............................................... 4,120,498
Capital shares sold........................................... 3,169,672
Due from broker (Note 8)...................................... 252,966
Dividends and interest........................................ 241,382
Deferred organization costs (Note 1)........................... 722
------------
Total assets................................................. 220,408,821
------------
Liabilities:
Payables:
Securities purchased.......................................... 3,277,899
Foreign taxes................................................. 690,993
Capital shares redeemed....................................... 240,536
Unrealized depreciation on forward foreign currency contracts
(Note 6)..................................................... 9,675
Due to adviser................................................ 3,804
Accounts payable.............................................. 77,242
------------
Total liabilities............................................ 4,300,149
------------
Net assets..................................................... $216,108,672
============
Shares outstanding............................................. 17,296,700
============
Net asset value, redemption and offering price per share....... $12.49
============
Net assets consist of:
Aggregate paid in capital..................................... $202,630,802
Unrealized appreciation of investments, equity swaps, forward
foreign currency contracts and foreign denominated assets,
liabilities.................................................. 24,343,740
Net investment loss........................................... (458,119)
Accumulated realized loss..................................... (10,407,751)
------------
$216,108,672
============
Statement of Operations
Six Months Ended June 30, 2000
Income: (Note 1)
Dividends (net of foreign taxes withheld of
$113,213)......................................... $ 1,375,061
Interest........................................... 203,780
------------
Total income..................................... 1,578,841
Expenses:
Management (Note 2)................................ $1,241,972
Administration (Note 2)............................ 1,225
Custodian.......................................... 234,655
Interest (Note 10)................................. 55,293
Trustees' fees and expenses........................ 42,331
Reports to shareholders............................ 22,100
Professional....................................... 17,531
Amortization of deferred organization costs (Note
1)................................................ 748
Other.............................................. 23,274
----------
Total expenses................................... 1,639,129
Expenses reduced by a brokerage arrangement (Note 2) (8,540)
----------
Net expenses..................................... 1,630,589
------------
Net investment loss.............................. (51,748)
------------
Realized and Unrealized Gain (Loss) on Investments
(Note 3):
Realized gain from security transactions (net of
foreign taxes withheld of $802,275)............... 23,349,779
Realized loss from foreign currency transactions... (396,586)
Realized gain on equity swaps...................... 388,452
Change in unrealized depreciation of foreign
denominated assets, liabilities and foreign
forward currency transactions..................... 431,760
Change in unrealized appreciation of investments
and equity swaps.................................. (55,536,915 )
------------
Net loss on investments and foreign currency
transactions...................................... (31,763,510)
------------
Net Decrease in Net Assets Resulting from
Operations........................................ $(31,815,258)
============
</TABLE>
See Notes to Financial Statements
<PAGE>
Worldwide Emerging Markets Fund
--------------------------------------------------------------------------------
Statements of Changes in Net Assets
<TABLE>
<CAPTION>
Six Months
Ended Year Ended
June 30, 2000 December 31,
(unaudited) 1999
------------- -------------
Increase (Decrease) in Net Assets From:
Operations:
<S> <C> <C>
Net investment income (loss)................... $ (51,748) $ 935,528
Realized gain from security transactions....... 23,349,779 15,482,982
Realized loss from foreign currency
transactions.................................. (396,586) (1,247,018)
Realized gain on options....................... -- 45,106
Realized gain on equity swaps and foreign
futures contracts............................. 388,452 40,550
Change in unrealized depreciation of foreign
denominated assets, liabilities and foreign
forward currency contracts.................... 431,760 (1,019,358)
Change in unrealized appreciation of
investments, futures and equity swaps......... (55,536,915) 84,419,384
------------- -------------
Net Increase (decrease) in net assets resulting
from operations................................ (31,815,258) 98,657,174
------------- -------------
Capital share transactions*:
Net proceeds from sales of shares.............. 346,304,830 416,658,982
Cost of shares reacquired...................... (341,897,240) (326,312,676)
------------- -------------
Increase in net assets resulting from capital
share transactions............................ 4,407,590 90,346,306
------------- -------------
Total increase (decrease) in net assets........ (27,407,668) 189,003,480
Net Assets:
Beginning of period............................. 243,516,340 54,512,860
------------- -------------
End of period (including net investment loss of
$(458,119) and $(9,785), respectively)......... $ 216,108,672 $ 243,516,340
============= =============
*Shares of Beneficial Interest Issued and
Redeemed (unlimited number of $.001 Par Value
Shares Authorized, Issued and Redeemed):
Shares sold.................................... 24,906,082 42,362,326
Shares reacquired.............................. (24,680,518) (32,950,683)
------------- -------------
Net increase................................... 225,564 9,411,643
============= =============
</TABLE>
See Notes to Financial Statements
<PAGE>
Worldwide Emerging Markets Fund
-------------------------------------------------------------------------------
Financial Highlights
For a share outstanding throughout each period
<TABLE>
<CAPTION>
Six Months For The Period
Ended For The Eight December 21,
June 30, Year Ended December 31, Months Ended 1995(a) to
2000 ---------------------------- December 31, April 30,
(unaudited) 1999 1998 1997 1996 1996
----------- -------- ------- ------- ------------- --------------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period.... $ 14.26 $ 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
Investments (both
Realized and
Unrealized)............ (1.77) 7.04 (3.80) (1.58) 1.59 0.88
-------- -------- ------- ------- ------- ------
Total From Investment
Operations............. (1.77) 7.14 (3.71) (1.44) 1.60 0.95
-------- -------- ------- ------- ------- ------
Less Dividend and
Distributions:
Dividend from Net
Investment Income...... -- -- (0.09) (0.05) (0.06) --
Distributions from
Realized Capital Gains. -- -- (0.08) -- -- --
-------- -------- ------- ------- ------- ------
Total Distributions..... -- -- (0.17) (0.05) (0.06) --
-------- -------- ------- ------- ------- ------
Net Asset Value, End of
Period................. $ 12.49 $ 14.26 $ 7.12 $ 11.00 $ 12.49 $10.95
======== ======== ======= ======= ======= ======
Total Return (c)........ (12.41%) 100.28% (34.15%) (11.61%) 14.66% 9.50%
--------------------------------------------------------------------------------------------------
Ratios/Supplementary
Data
Net Assets, End of
Period (000)........... $216,109 $243,516 $54,513 $92,433 $15,355 $ 597
Ratio of Gross Expenses
to Average Net Assets.. 1.32%(d) 1.54% 1.61% 1.34% 2.64%(d) 2.06%(d)
Ratio of Net Expenses
(excluding interest
expense) to Average Net
Assets................. 1.27%(d) 1.34% 1.50% 0.00% 0.00%(d) 0.00%(d)
Ratio of Net Investment
Income to Average Net
Assets................. (0.04)%(d) 0.80% 1.02% 0.91% 0.74%(d) 1.89%(d)
Portfolio Turnover Rate. 61.83% 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 is
not annualized.
(d) Annualized.
See Notes to Financial Statements
-------------------------------------------------------------------------------
Notes to Financial Statements (unaudited)
Note 1--Significant Accounting Policies:
Van Eck Worldwide Insurance Trust (the "Trust"), organized as a Massachusetts
business trust on January 7, 1987, is registered under the Investment Company
Act of 1940. The following is a summary of significant accounting policies
consistently followed by the Worldwide Emerging Markets Fund, 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 period. Over-the-
counter securities not included in the NASDAQ National Market System and
listed securities for which no sale was reported are valued at the mean of the
bid and asked prices. Short-term obligations purchased with more than sixty
days remaining to maturity are valued at market. Short-term obligations
purchased with sixty days or less to maturity are valued at amortized cost,
which with accrued interest approximates value. Forward 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
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.
<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 June 30, 2000.
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.
The Fund also directs certain portfolio trades to a broker that, in turn, pays
a portion of the Fund's operating expenses. For the six months ended June 30,
2000, the portion of the Fund's expenses reduced by this directed brokerage
agreement amounted to $8,540.
Note 3--Investments--Purchases and sales of securities, other than short-term
obligations, aggregated $144,722,345 and $142,257,118, 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 $180,338,085. As of
June 30, 2000, net unrealized appreciation for federal income tax purposes
aggregated $24,694,317 of which $46,912,666 related to appreciated securities
and $22,218,349 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 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 Sale Contracts:
BRL 245,964 expiring 7/03/00 $ 492,136 $ 499,829 $(7,693)
IDR 10,169,821,630 expiring 7/03/00-7/05/00 1,160,142 1,161,270 (1,128)
PLN 466,710 expiring 7/05/00 106,312 107,166 (854)
-------
$(9,675)
=======
</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 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
<PAGE>
Worldwide Emerging Markets Fund
-------------------------------------------------------------------------------
Notes to Financial Statements (continued)
for financial statement purposes. The Plan has been approved by the Internal
Revenue Service.
As of June 30, 2000 the total value of the asset and corresponding liability
of the Fund's portion of the Plan is $58,119.
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.
<TABLE>
<CAPTION>
Number
Underlying of Notional Termination Unrealized
Securities Shares Amount Date Appreciation
---------- ------- ---------- ----------- ------------
<S> <C> <C> <C> <C>
United
Microelectronics
Corp.: 639,600 $1,509,083 11/16/00 $252,966
</TABLE>
Note 9--Restricted Securities
The following securities are restricted as to sale and deemed illiquid:
<TABLE>
<CAPTION>
Percent
of Net
Assets
Date Total at
Acquired Cost Value 6/30/00
-------- ---------- ---------- -------
<S> <C> <C> <C> <C>
Central European Foods, Inc.............. 6/01/98 $ 275,000 $ 275,000 0.1%
Matrix8848.net Holdings, LLC............. 6/14/00 2,000,000 2,000,000 0.9
Romanian Growth Fund (The)............... 5/12/97 500,000 48,544 0.0
SNP Petrom............................... 10/27/97 1,936,469 217,252 0.1
---
1.1%
===
</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 June 30, 2000, the Fund borrowed an average daily amount of $931,180 at a
weighted average interest rate of 6.46% under the Facility.
Note 11--Schedule of Affiliated Company
Transactions--Transactions with affiliates (as defined by the Investment
Company Act of 1940) for the six months ended June 30, 2000:
<TABLE>
<S> <C>
Matrix 8848.net Holdings, LLC
12/31/99 Share Balance --
Purchases:Shares 2,000,000
Cost $2,000,000
Sales: Shares --
Cost --
Realized Gain (Loss) --
6/30/00 Share Balance 2,000,000
----------
Market Value $2,000,000
----------
Dividend Income --
</TABLE>
Note 12--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.
