<PAGE>
Van Eck Global
- -----------------------------------------------------------------------------
Worldwide Insurance Trust
- -----------------------------------------------------------------------------
ANNUAL REPORT
December 31, 1999
discipline
Worldwide Hard Assets Fund
allocation
diversity
GLOBAL INVESTMENTS SINCE 1955
<PAGE>
Van Eck Worldwide Hard Assets Fund
- --------------------------------------------------------------------------------
Dear Shareholder:
We are pleased to report that hard assets provided good risk-adjusted returns
in 1999. Both commodities and related stocks performed well in the first half
of the year, while most stocks had a volatile second half despite the
continuing climb of many commodity prices. The Van Eck Worldwide Hard Assets
Fund had a total return of 21.00% for the twelve months ended December 31,
1999, compared to 21.04% for the S&P 500 Index*.
Two key factors drove hard asset performance in the first half of the year:
unexpectedly strong global economic growth and an increasingly favorable
supply/demand scenario for most hard asset sectors. A year ago, most analysts
were predicting slowing economic growth in the U.S., fair growth in Europe and
continued recession in Asia after a year of extreme market declines and
economic contractions in that region. Instead, the U.S. continued into its
ninth year of expansion, Europe's recovery and restructuring trend gained
momentum and Asia surprised the world with a spectacular recovery. Even Japan,
which had been in a multi-year battle with recession, experienced a strong
rebirth. This worldwide growth pushed commodity demand higher and hard asset-
related equities largely followed suit. For most of the second half of the
year, however, despite a continuation of these positive trends, tech-stock
fever took hold and investors ignored most other market sectors, including
cyclical and value stocks. Thus, most of the gains from hard assets were
realized in the first half of the year and, although some declined a bit in the
second half, a late fourth quarter rebound helped and three of the five sectors
provided good performance for the year.
Energy prices rose sharply in 1999, trending upward throughout the year. Crude
oil traded at about $11 a barrel in February and ended the year near $25 a
barrel, primarily the result of an OPEC agreement (announced in March) to limit
supplies. Through the second quarter of the year, energy stocks also rose
sharply. However, for most of the second half of the year, while crude oil
prices held up, most energy stocks declined sharply as investors took profits,
possibly remembering previous crude oil price declines and OPEC "cheating."
Energy stock prices rebounded again late in the fourth quarter, ending the year
up 20% overall. These equities were the Fund's largest weighting in 1999. We
increased the position from about 22% of total Fund assets in January to
approximately 35% in the second quarter, in response to the OPEC agreement, and
maintained nearly a 40% position throughout the rest of the year. While
volatile, this proved beneficial. The Fund also benefited from commodity
positions in crude oil and natural gas.
The paper and forest products sector turned in exceptional gains of 35% in
1999. Paper stocks were driven by both increased paper demand due to the pickup
in global economic growth and decreased supply as some companies shut down
excess capacity, a trend driven by mergers and acquisitions activity in this
industry. Lumber and building materials companies fared well in the early part
of the year as a result of the strong housing market in the U.S. Pulp prices,
the key commodity driver for most of the paper grades, moved up all year, but
the stocks were volatile, particularly during the second half. We began the
year with under 10% of total portfolio assets dedicated to this sector. We
substantially increased the weighting to approximately 24%, mostly in the third
and fourth quarters as we became more convinced that the supply/demand scenario
was improving and as the industry appeared to be truly refocused on shareholder
concerns. The Fund's Canadian holdings in this sector (7.2% of Fund assets at
year end) further boosted performance due to the Canadian dollar's strength.
While a larger position in paper and forest product companies earlier in the
year would have augmented Fund performance, this sector's contribution was very
positive.
Industrial metals stocks performed exceptionally well during the year, up 77%.
The sector was primarily driven by Aluminum Company of America (Alcoa), the
leading aluminum manufacturer, which announced it was buying Reynolds, the
third-largest aluminum company. Alcoa was, in fact, the best performing stock
in the Dow Jones Industrial Average last year, gaining over 100%, while
Reynolds was up
<PAGE>
Van Eck Worldwide Hard Assets Fund
- --------------------------------------------------------------------------------
50%. We held Alcoa in the portfolio for much of the year and added Reynolds in
the fourth quarter as a cheaper way to own Alcoa (Alcoa and Reynolds accounted
for 1.7% and 2.6% of assets, respectively, at December 31). The industrial
metals stocks held up better than other hard assets equities during the periods
of investor flight out of cyclical stocks. Unfortunately, we underweighted the
Fund's position in industrial metals throughout 1999, averaging under 10% of
assets, partly due to the limited number and capitalization of industrial
metals stocks available, and also because metals prices were actually declining
through midyear.
Real estate stocks endured a difficult 1999 despite the fact that the real
estate business has been extremely strong in North America. In the U.S., for
example, the real estate business experienced stable occupancies and solid rent
growth, leading to strong cash flow growth and growing dividends.
Underperformance was not based on underlying fundamentals--it was largely due
to the fact that investors continued to view real estate equities as small-
capitalization value stocks, a sector they ignored in 1999 as they embraced
growth and technology. The NAREIT Equity Index declined 4.6% during the year.
We began the year with an approximate 30% position in real estate stocks, but
reduced this allocation throughout the year, ending with a 15% weighting to the
sector. Seeing better immediate upside potential in paper stocks given market
conditions, we reallocated most of these assets there, a strategy that worked
quite well.
Precious metals also had a difficult 1999, particularly gold, which ended the
year flat after some false starts. The most notable event in the gold market
was the European Central Bank announcement in the end of the third quarter in
which the European countries agreed to limit gold sales and forward sales into
the market over the next five years. Since central bank sales had been one of
the primary depressants of the gold market in recent years, this announcement
was greeted with immediate price rises and general enthusiasm. However, it
later became apparent that many gold companies had hedged much of their future
gold production forward, expecting continued bullion price weakness, a strategy
that not only severely reduced expected profit increases from rising gold
prices, but jeopardized the solvency of a few particularly aggressive
companies. By the end of the year, the metal had also retraced some of its
previous gains, ending the year flat as did gold stocks. The Fund's precious
metals position, including stocks and bullion, ranged from 5%-20% of total
assets during the year, with the highest emphasis in January and again during
the latter half of the year after the European Central Bank announcement. We
ended the year with a 9.3% weighting to the sector.
The Outlook
The western world's continued strength and Asia's surprisingly strong recovery
continue to push global growth to unexpectedly high rates. In fact, there has
been a complete reversal of the economic outlook from one of recession and
deflation a year ago to one of strong growth and even hints of inflation today.
Therefore, as we enter the new millennium, we are optimistic about the
prospects for hard assets.
At this time, we particularly favor paper companies as demand increases, pulp
prices continue to rise around the world and the industry continues to
restructure. We are selective in our exposure since certain forest products,
such as lumber and other wood products, may be past their peak, while others,
such as newsprint, are early in their cycle. Energy stocks offer both a strong
commodity story and attractive valuations. While crude oil may not hold at $25
a barrel, it appears that most energy stocks are discounting oil prices in the
teens, a level we do not expect to see again in the near future. We remain
selective in terms of the industrial metals sector, focusing on aluminum and
steel. Despite strong real estate business fundamentals and attractive
valuations, the market continues to favor larger-capitalization growth stocks,
and is not paying a premium for the stable income and defensive characteristics
that real estate securities offer. Therefore, we remain neutral on this sector,
but may increase the allocation if market sentiment turns. Precious metals also
offer selective opportunity. The only catalyst to gold would probably be a
meaningful weakening of the dollar. Still, certain metals and
<PAGE>
Van Eck Worldwide Hard Assets Fund
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related companies, such as platinum and palladium, which tend to have a strong
industrial demand base, look promising. We believe the Fund is well positioned
to take advantage of these near-term positive market conditions as we enter
2000.
We would like to thank you for your participation in the Worldwide Hard Assets
Fund, and we look forward to helping you meet your investment goals in the
future.
[PHOTO OF DEREK S. VAN ECK]
/S/ DEREK S. VAN ECK
Derek S. van Eck
Co-Portfolio
Manager
[PHOTO OF KEVIN L. REID]
/S/ KEVIN L. REID
Kevin L. Reid
Co-Portfolio
Manager
January 25, 2000
* The S&P 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 Standard & Poor's 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>
Van Eck Worldwide Hard Assets Fund
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Van Eck Worldwide Hard Assets Fund
vs. Ibbotson Hard Assets Index
12/89 $10000
3/90 9512 $ 9385
6/90 8791 $ 9272
9/90 9440 $ 9812
12/90 8589 $ 9354
3/91 8346 $ 9657
6/91 8743 $ 9854
9/91 8309 $ 9834
12/91 8337 $ 9769
3/92 7950 $ 9601
6/92 8584 $ 9957
9/92 8622 $ 9673
12/92 7996 $ 9278
3/93 9371 $10325
6/93 11562 $11093
9/93 10670 $10904
12/93 13179 $11458
3/94 13160 $11684
6/94 12464 $12099
9/94 13933 $12809
12/94 12548 $12463
3/95 12701 $12667
6/95 12979 $12976
9/95 14017 $13393
12/95 13928 $13705
3/96 16014 $14689
6/96 15389 $14472
9/96 15330 $14507
12/96 16441 $15378
3/97 15786 $15040
6/97 16393 $15522
9/97 18789 $16417
12/97 16167 $13795
3/98 16071 $14493
6/98 14019 $13299
9/98 11349 $12746
12/98 11167 $12248
3/99 11576 $12474
6/99 13203 $14055
9/99 13117 $14996
12/99 13512 $15481
Average Annual
Total Return 12/31/99 1 Year 5 Years 10 Years
- -----------------------------------------------------------------------
Van Eck Worldwide
Hard Assets Fund 21.00% 1.49% 3.06%
- -----------------------------------------------------------------------
Ibbotson Hard Assets Index 26.39% 4.43% 4.47%
- -----------------------------------------------------------------------
This graph compares a hypothetical $10,000 investment in the Van Eck Worldwide
Hard Assets Fund made ten years ago with a similar investment in the Ibbotson
Hard Assets Index.
Inception date for the Van Eck Worldwide Hard Assets Fund was 9/1/89.
Performance does not fully reflect the impact of the Fund's expenses, as they
have been fully or partially reimbursed by the Adviser at certain times since
the Fund's inception.
The Ibbotson Hard Assets Index is an unmanaged index and includes the
reinvestment of all dividends, but does not reflect the payment of the
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 Ibbotson Hard Assets Index is 75% equities of global companies whose
primary business is linked to hard assets and 25% commodity futures. The equity
component consists of equal weightings of the MSCI Gold Mines, Non-Ferrous
Metals, Energy Sources, and Forest Products and Paper Indices, and the National
Association of Real Estate Investment Trust Equity Index. The commodity
component consists of equal weightings of the Goldman Sachs Energy, Precious
Metals and Industrial Metals Indices.
Past performance is not indicative of future results. Performance data quoted
represents past performance; the investment return and principal value of an
investment in the Fund will vary so that shares, when redeemed, may be worth
more or less than their original cost. These returns do not take variable
annuity/life fees and expenses into account.
The Fund is only available as an option under various insurance contracts
issued by life insurance and annuity companies. These contracts offer life and
tax benefits to the beneficial owners of the Fund. Your insurance or annuity
company charges fees and expenses for these benefits which are not reflected in
this report or in the Fund's performance, since they are not direct expenses of
the Fund. Had these fees been included, returns would have been lower. A review
of your particular life and/or annuity contract will provide you with much
greater detail regarding these costs and benefits.
<PAGE>
Van Eck Worldwide Hard Assets Fund
- --------------------------------------------------------------------------------
[PIE CHART]
Sector Weightings+
as of December 31, 1999
Energy 35.8%
Forest Products & Paper 24.0%
Industrial Metals 12.4%
Precious Metals 9.3%
Real Estate 15.0%
Cash/equivalents 3.5%
[PIE CHART]
Geographical Weightings*
as of December 31, 1999
Australia 5.2%
Canada 22.9%
Other 4.6%
Russia 2.9%
Finland 3.6%
United Kingdom 2.9%
United States 54.4%
Cash/equivalents 3.5%
+Weightings take options positions into account (see "Schedule of Portfolio
Investments").
<PAGE>
Van Eck Worldwide Hard Assets Fund
Representative Holdings as of December 31, 1999*
- --------------------------------------------------------------------------------
Exxon Mobil Corporation
(U.S., 2.8%)
Exxon Mobil operates petroleum and petrochemicals businesses on a worldwide
basis. The company's operations include exploration and production of oil and
gas, electric power generation, and coal and minerals operations. Exxon Mobil
also manufactures and markets fuels, lubes and chemicals.
Reynolds Metals Company
(U.S., 2.6%)
Reynolds produces aluminum and aluminum foil. The company serves customers in
the aluminum fabricating, packaging and consumer, commercial construction,
distribution, and automotive markets. Reynolds produces a variety of aluminum,
plastic and other products.
International Paper Company
(U.S., 2.5%)
International Paper produces printing paper, packaging, and forest products.
The company operates specialty businesses in global markets as well as a
broadly based distribution network. International Paper exports its products
worldwide.
Alberta Energy Company Ltd.
(Canada, 2.3%)
Alberta Energy is an oil and gas company. The company explores and produces oil
and gas properties. It also invests in pipelines, natural gas storage, and gas
liquids processing.
AK Steel Holding Corporation
(U.S., 2.3%)
AK Steel Holding, through its wholly-owned subsidiary, AK Steel Corporation,
produces flat rolled carbon steel. The company produces coated, cold rolled,
and hot rolled carbon steel for the automotive, appliance, construction, and
manufacturing markets. AK Steel also cold rolls and aluminum coats stainless
steel for automotive industry customers.
Talisman Energy, Inc.
(Canada, 2.3%)
Talisman Energy is an independent oil and gas producer. The company has
operations in Canada, Indonesia, Sudan and the North Sea. Talisman is also
conducting exploration in Algeria and Trinidad.
UPM-Kymmene Oyj
(Finland, 2.3%)
UPM-Kymmene is an international forest industry company created from the merger
of Kymmene Corporation and Repola Ltd. The company manufactures pulp,
publication and fine papers for newspapers and magazines, plywood, timber,
packaging and other forest products. UPM-Kymmene operates worldwide.
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.
Billiton PLC
(UK, 2.0%)
Billiton is an international mining and metals group that specializes in the
exploration, production and marketing of alumina and aluminum products. They
also produce titanium minerals, steel, ferroalloys, nickel, coal and base
metals. Billiton supplies the group with a number of marketing and trading
services, as well as new business exploration and development services.
St. Laurent Paperboard, Inc.
(Canada, 1.8%)
St. Laurent Paperboard manufactures, supplies and converts paperboard products
worldwide. The company operates mills, converting plants, and sales and
administrative offices in Canada and the United States.
- -------
*Portfolio is subject to change.
<PAGE>
Worldwide Hard Assets Fund
Schedule of Portfolio Investments
December 31, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
No. of Value
Shares Securities (a) (Note 1)
- -------------------------------------------------------------
<C> <S> <C>
AUSTRALIA: 5.2%
Industrial Metals: 1.7%
303,000 WMC Ltd. $ 1,671,306
-----------
Precious Metals: 3.5%
33,109 Anglogold Ltd. 1,663,212
340,000 Gullewa Gold NL + 16,521
1,055,000 Lihir Gold Ltd. + 768,970
1,480,750 Normandy Mining Ltd. 1,050,121
-----------
3,498,824
-----------
5,170,130
-----------
BRAZIL: 1.0%
Forest Products: 1.0%
36,950 Aracruz Celulose S.A. 969,938
-----------
CANADA: 22.9%
Energy: 9.6%
74,532 Alberta Energy Co. Ltd. 2,321,066
67,500 Canadian Natural Resources Ltd. 1,646,626
284,600 Cypress Energy, Inc. + 1,201,426
26,550 Ensign Resources Service Group, Inc. 615,519
240,000 Kappa Energy Co., Inc. 71,419
75,000 NQL Drilling Tools, Inc. + 363,322
32,000 Precision Drilling Corp. + 819,377
89,500 Talisman Energy, Inc. 2,285,502
706,000 Windsor Energy Corp. (b)*+ 190,547
-----------
9,514,804
-----------
Forest Products: 7.2%
107,500 Abitibi-Consolidated, Inc. 1,276,563
151,000 Canfor Corp. 1,766,021
135,000 St. Laurent Paperboard, Inc. + 1,798,443
138,650 Tembec, Inc. 1,544,820
100,000 Timberwest Forest Corp. 657,439
-----------
7,043,286
-----------
Precious Metals: 3.2%
88,000 Barrick Gold Corp. 1,556,500
1,614,800 Brazilian Resources, Inc. + 575,517
96,000 Placer Dome, Inc. 1,032,000
-----------
3,164,017
-----------
Real Estate: 2.9%
75,000 Brookfield Properties Corp. 786,332
112,000 Oxford Properties Group, Inc. + 1,081,246
60,000 TrizecHahn Corp. 1,012,500
-----------
2,880,078
-----------
22,602,185
-----------
FINLAND: 3.6%
Forest Products: 3.6%
72,000 Stora Enso Oyj (R Shares) 1,255,667
56,500 UPM-Kymmene Oyj 2,276,950
-----------
3,532,617
-----------
</TABLE>
<TABLE>
<CAPTION>
No. of Value
Shares Securities (a) (Note 1)
- ---------------------------------------------------------------------
<C> <S> <C>
ITALY: 0.7%
Energy: 0.7%
13,000 Ente Nazionale Idrocaburi S.p.A.
(ADR) $ 716,625
----------
NETHERLANDS: 1.1%
Energy: 1.1%
18,000 Royal Dutch Petroleum Co. 1,087,875
----------
NORWAY: 0.3%
Energy: 0.3%
24,100 Stolt Comex Seaway S.A. + 266,606
----------
RUSSIA: 2.9%
Energy: 2.9%
4,299 Khanty-Mansiysk Oil Co. (b)* + 2,042,054
7,400 Lukoil Holding Corp. (ADR) 298,220
7,400 Lukoil Holding Corp. Pfd. (ADR) 67,845
22,200 Surgutneftegaz, Inc. (Sponsored ADR) 190,115
22,200 Surgutneftegaz, Inc. Pfd.
(Sponsored ADR) 308,658
----------
2,906,892
----------
SOUTH AFRICA: 0.7%
Forest Products: 0.7%
70,000 Sappi Ltd. (ADR) + 673,750
----------
Precious Metals: 0.0%
688 Anglo American Platinum Corp. (ADR) 20,812
1,011 Western Areas Gold Mining Co.
Ltd. (ADR) + 3,766
----------
24,578
----------
698,328
----------
UNITED KINGDOM: 2.9%
Energy: 0.9%
15,000 BP Amoco PLC (ADR) 889,688
----------
Industrial Metals: 2.0%
329,900 Billiton PLC 1,959,087
----------
2,848,775
----------
UNITED STATES: 54.4%
Energy: 19.5%
41,650 Anadarko Petroleum Corp. 1,421,306
33,100 Apache Corp. 1,222,631
15,000 Atlantic Richfield Co. 1,297,500
7,500 Chevron Corp. 649,688
20,000 Conoco, Inc. 495,000
30,000 Cooper Cameron Corp. + 1,468,125
48,000 Ensco International, Inc. 1,098,000
34,008 Exxon Mobil Corp. 2,739,770
80,500 Global Marine, Inc. + 1,338,313
65,385 JP Morgan & Co., Crude Oil
Commodity-Indexed Pref. Security 3/04/02 + 1,724,529
</TABLE>
See Notes to Financial Statements
<PAGE>
Worldwide Hard Assets Fund
Schedule of Portfolio Investments
December 31, 1999 (continued)
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
No. of Value
Shares Securities (a) (Note 1)
- -------------------------------------------------------------------------------
<C> <S> <C> <C> <C> <C> <C> <C> <C>
UNITED STATES (continued)
74,200 Ocean Energy, Inc. + $ 575,050
50,000 Santa Fe International Corp. 1,293,750
14,500 Schlumberger Ltd. 815,625
20,120 Smith International, Inc. 999,713
10,000 Texaco, Inc. 543,125
2,807 Transocean Sedco Forex, Inc. 94,568
20,000 USX-Marathon Group 493,750
83,000 Vintage Petroleum, Inc. 1,001,188
----------
19,271,631
----------
Forest Products: 11.5%
30,400 Bowater, Inc. 1,651,100
18,000 Champion International Corp. 1,114,875
37,000 Fort James Corp. 1,012,875
18,000 Georgia-Pacific Corp. 913,500
43,000 International Paper Co. 2,426,813
30,000 Plum Creek Timber Co., Inc. 750,000
40,000 Smurfit-Stone Container Corp. + 980,000
7,300 Temple-Inland, Inc. 481,344
15,000 Weyerhaeuser Co. 1,077,188
22,000 Willamette Industries, Inc. 1,021,625
----------
11,429,320
----------
Industrial Metals: 8.7%
122,338 AK Steel Holding Corp. 2,309,130
28,800 Alcan Aluminum Ltd. 1,186,200
Aluminum Co. of America (Alcoa,
20,000 Inc.) 1,660,000
37,000 Inco Ltd. 869,500
33,280 Reynolds Metals Co. 2,550,080
----------
8,574,910
----------
Insurance: 0.0%
3,000 Highlands Insurance Group, Inc. + 28,500
----------
Precious Metals: 2.6%
145,000 Homestake Mining Corp. 1,132,813
44,775 Stillwater Mining Co. + 1,427,203
----------
2,560,016
----------
Real Estate: 12.1%
32,000 AMB Property Corp. 638,000
12,000 Apartment Investment & Management
Co. 477,750
22,000 Bedford Property Investors, Inc. 375,375
70,000 Boston Properties, Inc. 2,178,743
58,500 Brandywine Realty Trust 957,938
63,000 Cornerstone Properties, Inc. 921,375
36,000 Crescent Real Estate Equities Co. 661,500
45,000 Equity Office Properties Trust 1,108,125
Equity Residential Properties
18,000 Trust 768,375
60,000 Host Marriott Corp. 495,000
22,000 Macerich Co. (The) 457,875
25,000 Mack-Cali Realty Corp. 651,563
35,000 Prologis Trust 673,750
40,000 Simon Property Group, Inc. 917,500
</TABLE>
<TABLE>
<CAPTION>
No. of Value
Shares Securities (a) (Note 1)
- ------------------------------------------------------------------------------
<C> <S> <C>
UNITED STATES (continued)
236,692 Wyndham International, Inc. + $ 695,283
-----------
11,978,152
-----------
53,842,529
-----------
Total Stocks and Other Investments: 95.7% (Cost: $ 87,866,372) 94,642,500
-----------
<CAPTION>
No. of
Contracts
--------- Call Options Purchased: 2.4%
<C> <S> <C>
800 Crude Oil Call @USD23.25 expiring 1/17/00+ 2,016,000
291 Crude Oil Call @USD25 expiring 1/17/00+ 369,570
-----------
Total Call Options Purchased: 2.4% (cost:$1,638,487) 2,385,570
-----------
Total Investments: 98.1%
(Cost: $89,504,859) 97,028,070
-----------
<CAPTION>
No. of
Contracts Value
--------- Options Written: (1.6%) (Note 1)
<C> <S> <C>
800 Crude Oil Call @USD24.25 expiring 1/20/00+ (1,392,000)
400 Crude Oil Put @USD17 expiring 8/22/00+ (232,000)
-----------
Total Options Written: (1.6%) (premiums received
$1,396,000) (1,624,000)
-----------
Total Investments Net of Options Written: 96.5%
(Cost: $88,108,859) 95,404,070
-----------
Other assets less liabilities: 3.5%............................ 3,506,479
-----------
Net Assets: 100%............................................... $98,910,549
===========
</TABLE>
<TABLE>
<CAPTION>
Summary of
Net Assets % of
By Industry Net Assets
- ----------- ----------
<S> <C>
Energy 35.8%
Forest Products
& Paper 24.0%
Industrial Met-
als 12.4%
Insurance 0.0%
Precious Metals 9.3%
Real Estate 15.0%
</TABLE>
<TABLE>
<CAPTION>
Summary of
Net Assets % of
By Industry Net Assets
- ----------- ----------
<S> <C>
Other assets less liabilities 3.5%
-----
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
+Non-income producing.
See Notes to Financial Statements
<PAGE>
Worldwide Hard Assets Fund Financial Statements
- --------------------------------------------------------------------------------
Statement of Assets and Liabilities
December 31, 1999
<TABLE>
<S> <C>
Assets:
Investments, at value (cost, $89,504,859) (Note 1)............... $ 97,028,070
Cash--initial margin for equity swap (Note 8).................... 110,970
Receivables:
Capital shares sold............................................. 3,475,498
Dividends....................................................... 141,209
Due from broker (Note 8)........................................ 72,778
Other assets..................................................... 236,900
------------
Total assets................................................... 101,065,425
------------
Liabilities:
Payables:
Due to custodian................................................ 11,275
Options written (premiums received, $1,396,000)................. 1,624,000
Capital shares redeemed......................................... 457,579
Due to adviser.................................................. 2,560
Accounts payable................................................ 59,462
------------
Total liabilities.............................................. 2,154,876
------------
Net assets....................................................... $ 98,910,549
============
Shares outstanding............................................... 9,020,775
------------
Net asset value, redemption and offering price per share......... $ 10.96
============
Net assets consist of:
Aggregate paid in capital....................................... $117,480,531
Unrealized appreciation of investments, swaps, options written
and foreign currencies......................................... 7,368,214
Undistributed net investment income............................. 1,037,915
Accumulated realized loss....................................... (26,976,111)
------------
$ 98,910,549
============
</TABLE>
Statement of Operations
<TABLE>
<S> <C> <C>
Year Ended December 31, 1999
Income: (Note 1)
Dividends (less foreign taxes withheld of $56,000).... $ 2,203,725
Interest.............................................. 465,877
-----------
Total income........................................ 2,669,602
Expenses:
Management (Note 2)................................... $1,006,500
Administration (Note 2)............................... 1,823
Custodian............................................. 106,162
Professional.......................................... 65,434
Trustees' fees and expenses........................... 34,828
Reports to shareholders............................... 33,932
Other................................................. 18,302
----------
Total expenses...................................... 1,266,981
-----------
Net investment income............................... 1,402,621
-----------
Realized and Unrealized Gain (Loss) on Investments
(Note 3):
Realized loss from security transactions.............. (9,700,166)
Realized gain from foreign currency transactions...... 147,521
Realized gain from options............................ 769,188
Realized gain from futures contracts.................. 985,307
Change in unrealized depreciation of forward foreign
currency contracts and foreign currency transactions. (6,374)
Change in unrealized appreciation of investments,
swaps and options written............................ 23,987,889
-----------
Net gain on investments forward foreign currency
contracts and foreign currency transactions.......... 16,183,365
-----------
Net Increase in Net Assets Resulting from Operations.. $17,585,986
===========
</TABLE>
See Notes to Financial Statements
<PAGE>
Worldwide Hard Assets Fund Financial Statements
- --------------------------------------------------------------------------------
Statements of Changes in Net Assets
<TABLE>
<CAPTION>
Year Ended Year Ended
December 31, 1999 December 31, 1998
----------------- -----------------
<S> <C> <C>
Increase (decrease) in Net Assets:
Operations:
Net investment income.................... $ 1,402,621 $ 1,946,094
Realized loss from security transactions. (9,700,166) (16,221,058)
Realized gain from foreign currency
transactions............................ 147,521 512,577
Realized gain (loss) from options........ 769,188 (657,012)
Realized gain (loss) from futures con-
tracts.................................. 985,307 (40,085)
Change in unrealized appreciation
(depreciation) of forward foreign
currency contracts and foreign currency
transactions............................ (6,374) 45,665
Change in unrealized appreciation (depre-
ciation) of investments, swaps and op-
tions written........................... 23,987,889 (28,023,387)
------------- -------------
Increase (decrease) in net assets result-
ing from operations..................... 17,585,986 (42,437,206)
------------- -------------
Dividends and distributions to
shareholders from:
Net investment income.................... (1,337,036) (892,481)
Net realized gains....................... -- (21,915,372)
------------- -------------
Total dividends and distributions........ (1,337,036) (22,807,853)
------------- -------------
Capital share transactions*:
Net proceeds from sales of shares........ 227,914,783 125,168,914
Reinvestment of dividends and distribu-
tions................................... 1,337,036 22,807,853
Cost of shares reacquired................ (232,402,878) (152,851,736)
------------- -------------
Decrease in net assets resulting from
capital share transactions.............. (3,151,059) (4,874,969)
------------- -------------
Total increase (decrease) in net assets.. 13,097,891 (70,120,028)
Net Assets:
Beginning of year......................... 85,812,658 155,932,686
------------- -------------
End of year (including undistributed net
investment income of $1,037,915 and
$1,183,174, respectively)................ $ 98,910,549 $ 85,812,658
============= =============
* Shares of Beneficial Interest Issued and
Redeemed (with an unlimited number of
$.001 par value shares authorized):
Shares sold.............................. 22,221,297 11,346,475
Reinvestment of dividends and
distributions........................... 149,724 1,787,449
Shares reacquired........................ (22,675,520) (13,725,658)
------------- -------------
Net decrease............................. (304,499) (591,734)
============= =============
</TABLE>
See Notes to Financial Statements
<PAGE>
Worldwide Hard Assets Fund
- -------------------------------------------------------------------------------
Financial Highlights
For a share outstanding throughout each period
<TABLE>
<CAPTION>
Eight Months
Year Ended Ended Year Ended
December 31, December 31, April 30,
-------------------------- ------------ ---------------------
1999 1998 1997 1996 1996 1995
------- ------- -------- ------------ -------- --------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period.... $ 9.20 $ 15.72 $ 16.72 $ 16.92 $ 13.49 $ 13.11
------- ------- -------- -------- -------- --------
Income from Investment
Operations:
Net Investment Income.. 0.15 0.21 0.09 0.02 0.12 0.08
Net Gain (Loss) on
Investments (both
Realized and
Unrealized)........... 1.75 (4.43) (0.36) 0.09 3.44 0.37
------- ------- -------- -------- -------- --------
Total from Investment
Operations............. 1.90 (4.22) (0.27) 0.11 3.56 0.45
------- ------- -------- -------- -------- --------
Less Dividends and
Distributions:
Dividends from Net
Investment Income..... (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..... (0.14) (2.30) (0.73) (0.31) (0.13) (0.07)
------- ------- -------- -------- -------- --------
Net Asset Value, End of
Period................. $ 10.96 $ 9.20 $ 15.72 $ 16.72 $ 16.92 $ 13.49
======= ======= ======== ======== ======== ========
Total Return (a)........ 21.00% (30.93%) (1.67%) 0.60% 26.66% 3.43%
- -----------------------------------------------------------------------------------------
Ratios/Supplementary
Data
Net Assets, End of
Period (000)........... $98,911 $85,813 $155,933 $167,417 $186,370 $127,320
Ratio of Gross Expenses
to Average Net Assets.. 1.26% 1.20% 1.18% 1.24%* 1.08% --
Ratio of Net Expenses to
Average Net Assets..... 1.26% 1.16% 1.17% 1.23%* 1.08%(b) 0.96%
Ratio of Net Investment
Income to Average Net
Assets................. 1.39% 1.64% 0.64% 0.10%* 0.81% 0.71%
Portfolio Turnover Rate. 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
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 year. Over-the-
counter securities not included in the NASDAQ National Market System and
listed securities for which no sale was reported are valued at the mean of the
bid and asked prices. Short-term obligations purchased with more than sixty
days remaining to maturity are valued at market. Short-term obligations
purchased with sixty days or less to maturity are valued at amortized cost
which with accrued interest approximates value. Futures are valued using the
closing price reported at the close of the Chicago Board of Trade. 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 year. Purchases and sales of
investments are translated at the exchange rates prevailing when such
investments were acquired or sold. Income and expenses are translated at the
exchange rates prevailing when accrued. The portion of realized and unrealized
gains and losses on investments that results from fluctuations in foreign
currency exchange rates is not separately disclosed. Recognized gains or
losses attributable to foreign currency fluctuations on foreign currency
denominated assets, other than investments and liabilities are recorded as 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. To reflect
reclassifications, arising from permanent "book/tax" differences for the year
ended December 31, 1999 undistributed net investment income was decreased by
$210,844, accumulated net realized loss was increased by $261,789 and capital
stock increased by $472,633.
<PAGE>
Worldwide Hard Assets 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. 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 December 31, 1999, the Fund had a JP Morgan & Co., Crude Oil
Commodity--Indexed Preferred Security with a value of $1,724,529 that
represented 0.6% of the net assets of the Fund.
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 year ended December 31, 1999.
The Fund has a fee arrangement based on cash balances left on deposit with the
custodian, which reduced the Fund's operating expenses. The Fund also 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 $189,702,689 and $184,761,528, respectively, for the
year ended December 31, 1999. For federal income tax purposes, the identified
cost of investments owned at December 31, 1999 was $90,973,850.
As of December 31, 1999, net unrealized appreciation for federal income tax
purposes aggregated $6,054,220, of which $12,617,477, related to appreciated
securities and $6,563,257 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 year ended December 31, 1999
were as follows:
<TABLE>
<CAPTION>
Number of Premiums
Contracts Received
--------- ----------
<S> <C> <C>
Options outstanding at beginning of year 0 $ 0
Options written 1,200 1,396,000
Options expired 0 0
----- ----------
Options outstanding at end of year 1,200 $1,396,000
===== ==========
</TABLE>
Note 4--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. In addition, some foreign companies are not generally subject to
the same uniform accounting, auditing and financial reporting rules as are
American companies and there may be less government supervision and
regulation. Foreign investments may also be subject to foreign taxes, dividend
collection fees and settlement delays.
The Fund invests in South African securities. South African securities may be
subject to greater political, social and economic risks than investments in
more developed foreign markets. Emerging market countries, such as South
Africa, may present the risk of nationalization of businesses, or prohibitions
of repatriation of assets, and may have less protection of property rights
than more developed countries.
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
<PAGE>
Worldwide Hard Assets Fund
- -------------------------------------------------------------------------------
Notes to Financial Statements (continued)
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 December 31, 1999, the Fund did
not have any outstanding forward foreign currency contracts.
The Fund may incur additional risk from investments in forward foreign
currency contracts if the counterparty is unable to fulfill its obligation or
there are unanticipated movements of the foreign currency relative to the U.S.
dollar.
Note 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 12/31/99
- -------- ---------- ---------- ----------
<S> <C> <C> <C> <C>
1/31/97 Khanty-Mansiysk
Oil Co. $1,410,006 $2,042,054 2.1%
7/09/96- Windsor Energy
5/27/98 Corp. 1,906,154 190,547 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 December 31, 1999 the total value of the
assets and corresponding liability of the Fund's portion of the Plan is
$53,617.
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 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 December 31, 1999, the Fund had
the following outstanding swap (stated in U.S. dollars):
<TABLE>
<CAPTION>
Number Termi-
Underlying of Notional nation Unrealized
Security Shares Amount Date Appreciation
- --------------- ------- -------- ------- ------------
<S> <C> <C> <C> <C>
Gazprom Oil Co. 680,800 $110,970 3/15/00 $72,778
</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 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 year ended December 31, 1999, the Fund did not borrow under the
Facility.
Note 10--Subsequent Events--An income dividend of $0.12 a share, was paid on
January 31, 2000 to shareholders of record date January 27, 2000 with a
reinvestment date of January 31, 2000.
<PAGE>
Worldwide Hard Assets Fund
- -------------------------------------------------------------------------------
Report of Ernst & Young LLP, Independent Auditors
To the Board of Trustees and Shareholders
Worldwide Hard Assets Fund
We have audited the accompanying statement of assets and liabilities of
Worldwide Hard Assets Fund (one of the Funds comprising Van Eck Worldwide
Insurance Trust) (the "Fund"), including the schedule of portfolio
investments, as of December 31, 1999, and the related statement of operations,
statement of changes in net assets, and the financial highlights for the year
then ended. These financial statements and the financial highlights are the
responsibility of the Fund's management. Our responsibility is to express an
opinion on these financial statements and the financial highlights based on
our audit. The statement of changes in net assets for the year ended, December
31, 1998 and the financial highlights for each of the five periods in the
period then ended, were audited by other auditors whose report, dated February
12, 1999, expressed an unqualified opinion on those statements.
We conducted our audit in accordance with auditing standards generally
accepted in the United States. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the financial
statements and financial highlights are free of material misstatement. An
audit includes examining on a test basis, evidence supporting the amounts and
disclosures in the financial statements and financial highlights. Our
procedures include confirmation of securities owned as of December 31, 1999,
by correspondence with the custodian and brokers. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for our
opinion.
In our opinion, the financial statements and financial highlights referred to
above, and audited by us, present fairly, in all material respects, the
financial position of Worldwide Hard Assets Fund at December 31, 1999, the
results of its operations, the changes in its net assets, and the financial
highlights for the year then ended, in conformity with accounting principles
generally accepted in the United States.
/s/ Ernst & Young LLP
New York, New York
January 27, 2000
<PAGE>
VAN ECK GLOBAL [LOGO] [LOGO]
Investment Adviser: Van Eck Associates Corporation Retire on Your Terms
Distributor: Van Eck Securities Corporation VARIABLE ANNUITIES
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.
