Income, expenses (excluding class-specific expenses) and realized/ unrealized gains/losses are allocated proportionately to each class of shares based upon the relative net asset value of outstanding shares of each class at the beginning of the day (after adjusting for current capital share activity of the respective classes). Class-specific expenses are charged directly to the applicable class of shares.
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 realized 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
Worldwide Hard Assets Fund
Notes To Financial Statements (unaudited) (continued)
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. 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 were no written options outstanding at June 30, 2006.
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 that 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 the price of the futures contract and the price of the underlying instrument and interest rates. Realized gains and losses from futures contracts are reported separately. There were no futures contracts outstanding at June 30, 2006.
Structured Notes—The Fund may invest in indexed securities whose value is linked to one or more currencies, interest rates, commodities or financial 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 Corporation will monitor the liquidity of structured notes under the 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 counterparty of the security with respect to both principal and interest. The Fund had no outstanding structured notes at June 30, 2006.
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 1.00% on the first $500 million of average daily net assets, 0.90 of 1% on the next $250 million and 0.70 of 1% on the excess over $750 million. The Class S shares are subject to a distribution fee at an annual rate of 0.15% of average daily net assets in the Class S shares. The Adviser agreed to assume expenses exceeding 1.20% of average daily net assets except interest, taxes, brokerage commissions and extraordinary expenses for the period May 1, 2006 through April 30, 2007. For the six months ended June 30, 2006, the Adviser assumed expenses in the amount of $5,217. Certain of the officers and trustees of the Trust are officers, directors or stockholders of the Adviser and Van Eck Securities Corporation, the Distributor.
Note 3—Investments—For the six months ended June 30, 2006, purchases and sales of securities other than U.S. government securities and short-term obligations aggregated $321,842,189 and $239,007,898, respectively.
The identified cost of investments owned at June 30, 2006 was $499,174,104 and net unrealized appreciation aggregated $190,656,159 of which $199,584,432 related to appreciated securities and $8,928,273 related to depreciated securities.
Note 4—Income Taxes—The tax character of distributions paid to shareholders were as follows:
| | | During the | | | | |
| | | Six Months | | | During the | |
| | | Ended | | | Year Ended | |
| | | June 30, | | | December 31, | |
| | | 2006 | | | 2005 | |
|
|
| |
|
| |
| Ordinary income | $ | 11,326,361 | | $ | 843,497 | |
| Long term capital gains | | 21,843,695 | | | — | |
|
|
| |
|
| |
| Total | $ | 33,170,056 | | $ | 843,497 | |
|
|
| |
|
| |
Note 5—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 transaction clearance and settlement practices, and future adverse political and economic developments. These risks are heightened for investments in emerging market countries. Moreover, securities of many foreign issuers and their markets may be less liquid and their prices more volatile than those of comparable U.S. issuers.
The Fund may concentrate its investments in companies which are significantly engaged in the exploration, development, production and distribution of gold and other natural resources such as strategic and other metals, minerals, forest products, oil, natural gas and coal and by investing in gold bullion and coins. Since the Fund may so concentrate, it may be subject to greater risks and market fluctuations than other more diversified portfolios. The production and marketing of gold and other natural resources may be affected by actions and changes in governments. In addition, gold and natural resources may be cyclical in nature.
At June 30, 2006, the aggregate shareholder accounts of two insurance companies own approximately 55% and 26% of the Initial Class shares and one insurance company owns approximately 99% of the Class R1 shares. Additionally the Adviser owns all of the outstanding Class S shares.
Note 6—Warrants—The Fund may invest in warrants whose values are linked to indices or underlying instruments. The Fund may use 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 7—Forward Foreign Currency Contracts—The Fund may buy and sell forward foreign currency contracts to settle purchases and sales of
19
Worldwide Hard Assets Fund
Notes To Financial Statements (unaudited) (continued)foreign denominated securities. In addition, the Fund may enter into forward foreign currency contracts to hedge foreign denominated assets. Realized gains and losses from forward foreign currency contracts are included in realized gain (loss) from foreign currency transactions on the Statement of Operations. 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. At June 30, 2006, the Fund had no forward foreign currency contracts outstanding.
Note 8—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 of Trustees. 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 and are reflected in the accompanying statement of Assets and Liabilities.
Note 9—Equity Swap—The Fund may enter into an 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 on the Statement of Assets and Liabilities. At June 30, 2006, the Fund had no outstanding equity swaps.
Note 10—Commodity Swap—The Fund may enter into a commodity swap to gain investment exposure to the relevant spread of the commodity reference prices. A swap is an agreement that obligates the parties to exchange cash flows at specified intervals. At termination date, a final payment is made based on the swap’s notional amount on trade date versus the value on termination date. Risks may arise as a result of the failure of the counterparty to the contract to comply with the terms of the swap contract. The Fund bears the risk of loss of the amount expected to be received under a swap agreement in the event of the default of the counterparty. Therefore, the Fund considers the credit worthiness of each counterparty to a swap contract in evaluating potential credit risk. Additionally, risks may arise from unanticipated movements in the value of the swap relative to the underlying reference prices. The Fund records a net receivable or payable daily, based on the change in the value of the swap. The net receivable or payable for financial statement purposes is shown as due to or from broker on the Statement of Assets and Liabilities. At June 30, 2006, the Fund had no outstanding commodity swaps.
Note 11—Bank Line of Credit—The Trust may participate with other funds managed by the Adviser (the “Van Eck Funds”) in a $10 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 Van Eck Funds, including the Fund, at the request of the shareholders and other temporary or emergency purposes. The Van Eck Funds have agreed to pay commitment fees, pro rata, based on the unused but available balance. Interest is charged to the Van Eck Funds at rates based on prevailing market rates in effect at the time of borrowings. During the six months ended June 30, 2005, the Fund borrowed under this Facility. The average daily balance during the 47 day period during which the loan was outstanding amounted to $5,782,000 and the weighted average interest rate was 5.60% . At June 30, 2006, there were no outstanding borrowings by the Fund under the Facility.
Note 12—Repurchase Agreement—Collateral for repurchase agreements, in the form of U.S. government obligations, 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.
Note 13—Regulatory Matters—In connection with their investigations of practices identified as “market timing” and “late trading” of mutual fund shares, the Office of the New York State Attorney General (“NYAG”) and the United States Securities and Exchange Commission (“SEC”) have requested and received information from the Adviser. The investigations are ongoing, and the Adviser is continuing to cooperate with such investigations. If it is determined that the Adviser or its affiliates engaged in improper or wrongful activity that caused a loss to a Fund, the Board of Trustees of the Funds will determine the amount of restitution that should be made to a Fund or its shareholders. At the present time, the amount of such restitution, if any, has not been determined.
In July 2004, the Adviser received a “Wells Notice” from the SEC in connection with the SEC’s investigation of market-timing activities. This Wells Notice informed the Adviser that the SEC staff is considering recommending that the SEC bring a civil or administrative action alleging violations of the U.S. securities laws against the Adviser and two of its senior officers.
There cannot be any assurance that if the SEC or NYAG were to assess sanctions against the Adviser, such sanctions would not materially and adversely affect the Adviser.
Note 14—Reimbursement from Adviser—During 2005, the Adviser reimbursed the Fund $34,118 in connection with dividends paid in January 2003 to shareholders redeeming on the day between record date and ex-dividend date.
20
Van Eck Worldwide Insurance Trust
Worldwide Bond Fund
Worldwide Emerging Markets Fund
Worldwide Hard Assets Fund
Worldwide Real Estate Fund
Approval of Advisory Agreements
The Investment Company Act of 1940, as amended (the “1940 Act”), provides, in substance, that each investment advisory agreement between a Fund and its investment adviser will continue in effect from year to year only if its continuance is approved at least annually by the Board of Trustees (the “Board”), including by a vote of a majority of the Trustees who are not “interested persons” of the Funds (“Independent Trustees”), cast in person at a meeting called for the purpose of considering such approval.
In considering the renewal of the investment advisory agreements, the Board, comprised exclusively of Independent Trustees, reviewed and considered information that had been provided by Van Eck Associates Corporation, the Funds’ Adviser (the “Adviser”), throughout the year at regular Board meetings, as well as information furnished for the meetings of the Board held on June 13 and 14, 2006 to specifically consider the renewal of each Fund’s investment advisory agreement. This information included, among other things, the following:
- Information about the overall organization of the Adviser and the Adviser’s short-term and long-term business plan with respect to its mutual fund operations;
- The Adviser’s consolidated financial statements for the past 3 fiscal years;
- A description of the advisory agreements with the Funds, their terms and the services provided under each agreement;
- Descriptions of the qualifications, education and experience of the individual investment professionals whose responsibilities include portfolio management and investment research for the Funds, and information relating to their compensation and responsibilities with respect to managing other mutual funds and investment accounts;
- Presentations by the Adviser’s key investment personnel with respect to the Adviser’s investment strategies and general investment outlook in relevant markets, and the resources available to support the implementation of such investment strategies;
- An independently prepared report comparing the management fees and non- investment management expenses of each Fund during its fiscal year ended December 31, 2005 with those of (i) the universe of funds with a similar investment strategy, offered in connection with variable insurance products (the “Expense Universe”), and (ii) a sub-group of the Expense Universe consisting of funds of comparable size and fees and expense structure (the “Peer Group”);
- An independently prepared report comparing each Fund’s annualized investment performance for the one- through five-year periods ended December 31, 2005 with those of (i) the universe of funds with a similar investment strategy, offered in connection with variable insurance products (the “Performance Universe”), (ii) its Peer Group, and (iii) appropriate benchmark indices as identified by an independent data provider;
- An analysis of the profitability of the Adviser with respect to the services it provides to each Fund and the Van Eck complex of mutual funds as a whole;
- Information regarding other accounts and investment vehicles managed by the Adviser, their investment strategy, the net assets under management in each such account and vehicle, and the individuals that are performing investment
21
Van Eck Worldwide Insurance Trust
Approval of Advisory Agreements (continued)management functions with respect to each such account and vehicle;- Information concerning the Adviser’s compliance program, the resources devoted to compliance efforts undertaken by the Adviser and its affiliates on behalf of the Funds, and reports regarding a variety of compliance-related issues;
- Reports with respect to the Adviser’s brokerage practices, including the benefits received by the Adviser from research acquired with soft dollars; and
- Other information provided by the Adviser in its response to a comprehensive questionnaire prepared by independent legal counsel on behalf of the Independent Trustees.
In considering whether to approve the investment advisory agreements, the Board evaluated the following factors: (1) the quality, nature, cost and character of the investment management as well as the administrative and other non-investment management services provided by the Adviser and its affiliates; (2) the nature, quality and extent of the services performed by the Adviser in interfacing with, and monitoring the services performed by, third parties, such as the Funds’ custodian, transfer agent, sub-accounting agent and independent auditors, and the Adviser’s commitment and efforts to review the quality and pricing of third party service providers to the Funds with a view to reducing non-management expenses of the Funds; (3) the terms of the advisory agreements and the reasonableness and appropriateness of the particular fee paid by each Fund for the services described therein; (4) the Adviser’s willingness to subsidize the operations of the Funds from time to time by means of waiving a portion of its management fees or paying expenses of the Funds; (5) the services, procedures and processes used to determine the value of Fund assets, and the actions taken to monitor and test the effectiveness of such services, procedures and processes; (6) the ongoing efforts of, and resources devoted by, the Adviser with respect to the development of a comprehensive compliance program and written compliance policies and procedures, and the implementation of recommendations of independent consultants with respect to a variety of compliance issues; (7) the responsiveness of the Adviser and its affiliated companies to inquiries from, and examinations by, regulatory agencies such as the SEC, the NASD and the office of the New York Attorney General (“NYAG”); (8) the Adviser’s record of compliance with its policies and procedures; and (9) the ability of the Adviser to attract and retain quality professional personnel to perform investment advisory and administrative services for the Funds.
The Board considered the fact that the Adviser has received a Wells Notice from the SEC in connection with on-going investigations concerning market timing and related matters. The Board determined that the Adviser continues to cooperate with the SEC, the NYAG and the Board in connection with these matters and that the Adviser has taken appropriate steps to implement policies and procedures reasonably designed to prevent harmful market timing activities by investors in the Funds. In addition, the Board concluded that the Adviser has acted in good faith in providing undertakings to the Board to make restitution of damages, if any, that may have resulted from any prior wrongful actions of the Adviser and that it would be appropriate to permit the SEC and the NYAG to bring to conclusion their pending regulatory investigations prior to the Board making any final determination of its own with respect to these same matters.
The Board considered the fact that the Adviser is managing other investment products and vehicles, including hedge funds and separate accounts, that invest in the same financial markets and are managed by the same investment professionals according to a similar investment strategy as certain of the Funds. The Board concluded that the management of these products contributes to the Adviser’s financial stability and is helpful to the Adviser in attracting and retaining quality portfolio management personnel for the Funds. In addition, the Board concluded that the
22
Van Eck Worldwide Insurance Trust
Approval of Advisory Agreements (continued)Adviser has established appropriate procedures to monitor conflicts of interest involving the management of the Funds and the other products and for resolving any such conflicts of interest in a fair and equitable manner.
In evaluating the investment performance and fees and expenses of each Fund, the Board considered the specific factors set forth below. The Board concluded, with respect to each Fund, that the performance of the Fund is satisfactory, and that the management fee charged to, and the total expense ratio of, the Fund are reasonable. In reaching its conclusions the Board took specific note of the following information with respect to each Fund:
Worldwide Bond Fund
The Board noted that: (1) the Fund had outperformed its Performance Universe average for the annualized four-year period ended December 31, 2005; (2) the Adviser has agreed to waive from May 2006 through April 2007 a portion of its management fee such that the Fund’s overall expense ratio will be capped at 1.10%; and (3) the Fund’s expense ratio, while higher than the median for its Peer Group, is within the range of expense ratios for its Peer Group and is not unreasonable in view of the relatively small size of the Fund and the nature of the global investment strategy used to pursue the Fund’s objective.
Worldwide Emerging Markets Fund
The Board noted that: (1) the Fund had outperformed its Performance Universe average and its benchmark index for the annualized two- through five-year periods ended December 31, 2005; (2) the Adviser has agreed to waive, and will continue to waive through April 2007, a portion of its management fee; and (3) the Fund’s overall management fee and expense ratio, net of fee waivers, were lower than the median for its Peer Group.
Worldwide Hard Assets Fund
The Board noted that: (1) the Fund had outperformed its Performance Universe average for the annualized one- through five-year periods ended December 31, 2005 and was in the top quintile of its Performance Universe for the annualized one- through four-year periods ended December 31, 2005; (2) the Adviser has agreed to waive from May 2006 through April 2007 a portion of its management fee such that the Fund’s overall expense ratio will be capped at 1.20%; and (3) the Fund’s expense ratio is higher than the median for its Peer Group, but within the range of expense ratios for its Peer Group.
Worldwide Real Estate Fund
The Board noted that: (1) the Fund had outperformed its Performance Universe average, and was in the top quintile for its Performance Universe, for the annualized one- through three-year periods ended December 31, 2005; (2) the Adviser has agreed to waive, and will continue to waive through April 2007, a portion of its management fee; (3) the Fund’s overall management fee during 2005, net of fee waivers, was lower than the median for its Peer Group; and (4) the Fund’s expense ratio, net of fee waivers, was higher than the median for its Peer Group, but within the range of expense ratios for its Peer Group.
The Board considered the profits, if any, realized by the Adviser from managing the Funds, in light of the services rendered and the costs associated with providing such services, and concluded that the profits realized by the Adviser from managing the Funds are not excessive. In this regard, the Board also considered the extent to which the Adviser may realize economies of scale as each Fund grows, and whether each Fund’s fee levels reflect these economies of scale for the benefit of shareholders. The Board concluded that, with respect to Worldwide Bond Fund and Worldwide Hard Assets Fund, the advisory fee breakpoints in place will allow the Funds to share the benefits of economies of scale as they grow in a fair and equitable manner. The Board also concluded that neither of Worldwide Emerging Markets Fund nor the Worldwide Real Estate Fund currently has sufficient assets, or in the foreseeable future is likely to have sufficient assets, for the Adviser to realize material benefits from economies of scale,
23
Van Eck Worldwide Insurance Trust
Approval of Advisory Agreements (continued)and, therefore, the implementation of breakpoints would not be warranted at this time for either Fund.
The Board did not consider any single factor as controlling in determining whether or not to renew the investment advisory agreement. Nor are the items described herein all of the matters considered by the Board. Based on its consideration of the foregoing factors and conclusions, and such other factors and conclusions as it deemed relevant, and assisted by the advice of its independent counsel, the Board concluded that the renewal of the investment advisory agreements, including the fee structures (described herein) is in the interests of shareholders, and accordingly, the Board approved the continuation of the advisory agreements for an additional one-year period.
24
Van Eck Worldwide Insurance Trust
Worldwide Hard Assets Fund
On March 9, 2006, at a Special Meeting of Shareholders, the following proposals were voted:
| | | | | % of Outstanding | | | % of Shares | |
| | | No. of Shares | | Shares | | | Present | |
| |
| |
|
| |
|
|
| |
1. To elect the following nominees as Trustees | | | | |
| |
| Richard C. Cowell | | | | | | |
| Affirmative | | 17,281,783.228 | | 93.519 | % | | 97.912 | % |
| Withhold | | 368,590.970 | | 1.995 | % | | 2.088 | % |
| TOTAL | | 17,650,374.198 | | 95.514 | % | | 100.000 | % |
| |
| Jon Lukomnik | | | | | | | | |
| Affirmative | | 17,300,422.750 | | 93.620 | % | | 98.017 | % |
| Withhold | | 349,951.448 | | 1.894 | % | | 1.983 | % |
| TOTAL | | 17,650,374.198 | | 95.514 | % | | 100.000 | % |
| |
| David J. Olderman | | | | | | |
| Affirmative | | 17,289,516.403 | | 93.561 | % | | 97.956 | % |
| Withhold | | 360,857.795 | | 1.953 | % | | 2.044 | % |
| TOTAL | | 17,650,374.198 | | 95.514 | % | | 100.000 | % |
| |
| Ralph F. Peters | | | | | | | | |
| Affirmative | | 17,289,516.403 | | 93.561 | % | | 97.956 | % |
| Withhold | | 360,857.795 | | 1.953 | % | | 2.044 | % |
| TOTAL | | 17,650,374.198 | | 95.514 | % | | 100.000 | % |
| |
| Wayne H. Shaner | | | | | | |
| Affirmative | | 17,306,940.919 | | 93.656 | % | | 98.054 | % |
| Withhold | | 343,433.279 | | 1.858 | % | | 1.946 | % |
| TOTAL | | 17,650,374.198 | | 95.514 | % | | 100.000 | % |
| |
| R. Alastair Short | | | | | | |
| Affirmative | | 17,292,785.214 | | 93.579 | % | | 97.974 | % |
| Withhold | | 357,588.984 | | 1.935 | % | | 2.026 | % |
| TOTAL | | 17,650,374.198 | | 95.514 | % | | 100.000 | % |
| |
| Richard D. Stamberger | | | | | | |
| Affirmative | | 17,302,282.403 | | 93.630 | % | | 98.028 | % |
| Withhold | | 348,091.795 | | 1.884 | % | | 1.972 | % |
| TOTAL | | 17,650,374.198 | | 95.514 | % | | 100.000 | % |
25
| Van Eck Worldwide Insurance Trust |
| Worldwide Hard Assets Fund |
|
| | | | | | % of Outstanding | | % of Shares | |
| | | | No. of Shares | | Shares | | Present | |
| | | |
| |
| |
| |
| |
2. To modify or eliminate fundamental investment restrictions to modernize the investment restrictions of the Funds: |
| |
(2A) | Borrowing | | | | | | |
| Affirmative | | 16,734,808.806 | | 90.560 | % | | 94.813 | % |
| Against | | 333,648.749 | | 1.805 | % | | 1.890 | % |
| Abstain | | 581,916.643 | | 3.149 | % | | 3.297 | % |
| TOTAL | | 17,650,374.198 | | 95.514 | % | | 100.000 | % |
| |
(2B) | Underwriting | | | | | | |
| Affirmative | | 16,767,329.583 | | 90.735 | % | | 94.997 | % |
| Against | | 302,291.849 | | 1.636 | % | | 1.713 | % |
| Abstain | | 580,752.766 | | 3.143 | % | | 3.290 | % |
| TOTAL | | 17,650,374.198 | | 95.514 | % | | 100.000 | % |
| |
(2C) | Lending | | | | | | | | |
| Affirmative | | 16,783,764.626 | | 90.824 | % | | 95.090 | % |
| Against | | 290,687.889 | | 1.573 | % | | 1.647 | % |
| Abstain | | 575,921.683 | | 3.117 | % | | 3.263 | % |
| TOTAL | | 17,650,374.198 | | 95.514 | % | | 100.000 | % |
| |
(2D) | Senior securities | | | | | | |
| Affirmative | | 16,798,749.843 | | 90.906 | % | | 95.175 | % |
| Against | | 275,702.672 | | 1.491 | % | | 1.562 | % |
| Abstain | | 575,921.683 | | 3.117 | % | | 3.263 | % |
| TOTAL | | 17,650,374.198 | | 95.514 | % | | 100.000 | % |
| |
(2E) | Real estate | | | | | | |
| Affirmative | | 16,851,606.297 | | 91.192 | % | | 95.474 | % |
| Against | | 223,060.677 | | 1.207 | % | | 1.264 | % |
| Abstaln | | 575,707.224 | | 3.115 | % | | 3.262 | % |
| TOTAL | | 17,650,374.198 | | 95.514 | % | | 100.000 | % |
| |
(2F) | Real estate limited partnerships, oil, gas, and minerals | |
| Affirmative | | 16,787,144.438 | | 90.843 | % | | 95.109 | % |
| Against | | 285,265.343 | | 1.543 | % | | 1.616 | % |
| Abstain | | 577,964.417 | | 3.128 | % | | 3.275 | % |
| TOTAL | | 17,650,374.198 | | 95.514 | % | | 100.000 | % |
26
| Van Eck Worldwide Insurance Trust |
| Worldwide Hard Assets Fund |
|
| | | | | | % of Outstanding | | % of Shares | |
| | | | No. of Shares | | Shares | | Present | |
| | | |
| |
| |
| |
| |
(2G) | Investing for the purposes of exercising control | | | |
| Affirmative | | 16,841,467.481 | | 91.137 | % | 95.417 | % |
| Against | | 232,985.034 | | 1.260 | % | 1.320 | % |
| Abstain | | 575,921.683 | | 3.117 | % | 3.263 | % |
| TOTAL | | 17,650,374.198 | | 95.514 | % | 100.000 | % |
| |
(2H) | Commodities | | | | | |
| Affirmative | | 16,826,001.419 | | 91.053 | % | 95.329 | % |
| Against | | 248,665.555 | | 1.346 | % | 1.409 | % |
| Abstain | | 575,707.224 | | 3.115 | % | 3.262 | % |
| TOTAL | | 17,650,374.198 | | 95.514 | % | 100.000 | % |
| |
(2 I) | Concentration | | | | | |
| Affirmative | | 16,850,042.376 | | 91.183 | % | 95.466 | % |
| Against | | 224,624.598 | | 1.216 | % | 1.272 | % |
| Abstain | | 575,707.224 | | 3.115 | % | 3.262 | % |
| TOTAL | | 17,650,374.198 | | 95.514 | % | 100.000 | % |
| |
(2 J) | Diversification | | | | | |
| Affirmative | | 16,852,872.143 | | 91.198 | % | 95.482 | % |
| Against | | 219,537.638 | | 1.188 | % | 1.243 | % |
| Abstain | | 577,964.417 | | 3.128 | % | 3.275 | % |
| TOTAL | | 17,650,374.198 | | 95.514 | % | 100.000 | % |
27
| Investment Adviser: | | Van Eck Associates Corporation |
| Distributor: | | Van Eck Securities Corporation |
| | | 99 Park Avenue, New York, NY 10016 www.vaneck.com |
| Account Assistance: | | 1.800.544.4653 |
This report must be preceded or accompanied by a Van Eck Worldwide Insurance Trust Prospectus, which includes more complete information. An investor should consider the investment objective, risks, and charges and expenses of the Fund carefully before investing. The prospectus contains this and other information about the investment company. Please read the prospectus carefully before investing.
Additional information about the Fund’s Board of Trustees/Officers and a description of the policies and procedures the Fund uses to determine how to vote proxies relating to portfolio securities are provided in the Statement of Additional Information and information regarding how the Fund voted proxies relating to portfolio securities during the most recent twelve month period ending June 30 is available, without charge, by calling 1.800.826.2333, or by visiting www.vaneck.com, or on the Securities and Exchange Commission’s website at http://www.sec.gov.
The Fund files its complete schedule of portfolio holdings with the Securities and Exchange Commission for the first and third quarters of each fiscal year on Form N-Q. The Fund’s Form N-Qs are available on the Commission’s website at http://www.sec.gov and may be reviewed and copied at the Commission’s Public Reference Room in Washington, D.C. Information on the operation of the Public Reference Room may be obtained by calling 1.800. SEC.0330. The Fund’s complete schedule of portfolio holdings is also available by calling 1.800.826.2333 or by visiting www.vaneck.com.
Item 2. CODE OF ETHICS.
Not applicable.
Item 3. AUDIT COMMITTEE FINANCIAL EXPERT.
Not applicable.
Item 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
Not applicable.
Item 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
Not applicable.
Item 6. SCHEDULE OF INVESTMENTS.
Information included in Item 1.
Item 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES.
Not applicable.
Item 8. PORTFOLIO MANAGER OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Not applicable.
Item 9. PURCHASE OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT
COMPANY AND AFFILIATED PURCHASERS.
Not applicable.
Item 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
No changes.
Item 11. CONTROLS AND PROCEDURES.
(a) The Chief Executive Officer and the Chief Financial Officer have concluded
that the Worldwide Hard Assets Fund disclosure controls and procedures (as
defined in Rule 30a-3(c) under the Investment Company Act) provide
reasonable assurances that material information relating to the Worldwide
Hard Assets Fund is made known to them by the appropriate persons, based on
their evaluation of these controls and procedures as of a date within 90
days of the filing date of this report.
(b) There were no significant changes in the registrant's internal controls
over financial reporting or in other factors that could significantly
affect these controls over financial reporting subsequent to the date of
our evaluation.
Item 12. EXHIBITS.
(a)(1) Not applicable.
(a)(2) A separate certification for each principal executive officer and
principal financial officer of the registrant as required by Rule 30a-2
under the Act (17 CFR 270.30a-2) is attached as Exhibit 99.CERT.
(b) Certification pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 is
furnished as Exhibit 99.906CERT.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) WORLDWIDE INSURANCE TRUST - WORLDWIDE HARD ASSETS FUND
By (Signature and Title) /s/ Bruce J. Smith, SVP & CFO
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Date August 28, 2006
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Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By (Signature and Title) /s/ Keith J. Carlson, CEO
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Date August 28, 2006
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By (Signature and Title) /s/ Bruce J. Smith, CFO
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Date August 28, 2006
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