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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSRS
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES
Investment Company Act file number 811-05083
WORLDWIDE INSURANCE TRUST - WORLDWIDE EMERGING MARKETS FUND
(Exact name of registrant as specified in charter)
99 Park Avenue, New York, NY 10016
(Address of principal executive offices) (Zip code)
Van Eck Associates Corporation
99 PARK AVENUE, NEW YORK, NY 10016
(Name and address of agent for service)
Registrant's telephone number, including area code: (212) 687-5200
Date of fiscal year end: DECEMBER 31, 2004
Date of reporting period: JUNE 30, 2004
Item 1. Report to Shareholders.
- --------------------------------------------------------------------------------
VAN ECK GLOBAL
- --------------------------------------------------------------------------------
Worldwide Insurance Trust
- --------------------------------------------------------------------------------
SEMI-ANNUAL REPORT
JUNE 30, 2004
WORLDWIDE EMERGING MARKETS FUND
GLOBAL INVESTMENTS SINCE 1955
The information in the shareholder letter represents the personal opinions of
the individual portfolio manager(s) and may differ from those of other portfolio
managers or of the firm as a whole. This information is not intended to be a
forecast of future events, a guarantee of future results or investment advice.
Also, please note that any discussion of the Fund's holdings, the Fund's
performance, and the views of the portfolio manager(s) are as of June 30, 2004,
and are subject to change.
WORLDWIDE EMERGING MARKETS FUND
- --------------------------------------------------------------------------------
Dear Shareholder:
The Van Eck Worldwide Emerging Markets Fund provided a total return of -2.33%
for the six months ended June 30, 2004. In comparison, emerging markets in
general returned -0.78% for the same period, as measured by the Morgan Stanley
Capital International (MSCI) Emerging Markets Free Index.(1)
The primary factors affecting the Fund's relative performance were disappointing
results from Fund holdings in South Korea and Taiwan, and underweighted
positions in Mexico and the Eastern European markets, excluding Russia, which
performed well during the semi-annual period. Further affecting relative results
was the portfolio's bias toward cyclical stocks that we believed would benefit
most from rebounding global economies. Domestically oriented, more defensive,
late-cycle sectors, such as telecommunications, utilities, and healthcare,
performed better during the first half of the year.
MARKET REVIEW
The global emerging equity markets produced modestly positive returns during the
first quarter of 2004, but fell dramatically during the second quarter, as the
environment quickly shifted from risk seeking to risk aversion. Concerns over
potentially imminent increases in U.S. interest rates, ongoing conflict in Iraq,
and rising oil prices dominated. Higher energy prices and their potential impact
on developed market demand for oil was of particular concern to several of the
emerging markets that depend on oil exports for a significant portion of their
Gross Domestic Product. Perhaps the major issue affecting the emerging markets
during the period was China, as government authorities there sought to slow down
its economy through increases in reserve and capital requirements in several
industries, including steel, aluminum, cement, and real estate. Given the
experience of the last economic landing and the more recent contradictory
remarks made by officials, there developed a great deal of skepticism about
authorities' ability to engineer a "soft landing," I.E., a moderate slowdown.
Cyclical stocks as well as emerging market equities geared toward developments
in China were hit hard.
Another factor that dragged down the emerging markets' semi-annual performance
was significant profit-taking after a strong run in 2003 and as the yield curve
flattened and leading indicators led many to believe that global economies may
be peaking. Finally, corporate earnings prospects for the third quarter of 2004
were relatively muted.
REGIONAL FUND REVIEW
The Fund's four largest allocations at the end of the period were in South
Korea, Taiwan, South Africa, and Brazil (representing 26.2%, 13.0%, 12.7% and
10.0% of Fund net assets, respectively, as of June 30). South Korea's equity
market(2) was flat for the six months, while the remaining markets produced
total returns of -0.33%, +6.01%, and -10.86% in U.S. dollar terms, respectively,
during the first half of 2004. In terms of regional weightings, we continued to
favor Asia at the expense of Latin America, Emerging Europe, and Africa. The
Fund's weighting in Asia detracted from its relative six-month performance, as
the other regions performed comparatively better during the period.
The following is a review of several of the key emerging markets, in approximate
order of the Fund's allocation to each.
SOUTH KOREA's exports did well, but the economy faced difficulties on the
domestic side. Consumer confidence was low due primarily to banking sector
troubles that began with over-distribution of credit cards and continued with
high levels of debt owed after charging binges by much of the populace. The
equity market was also affected for a short while by the General Assembly's vote
to impeach South Korea's president, although the president's party subsequently
won the majority in the Assembly making the prior vote a non-issue. Equities
were de-rated based on lingering corporate governance issues, a rise in small
and medium-sized enterprise delinquencies, weaker pricing in the technology
sector, the impact of higher oil prices on its economy, growing concerns about
stagflation, and the ripple effects of China's economic situation.
TAIWAN's equity market was heavily geared toward the technology sector, which
experienced pressures on its profit margins during the period and uncertainty
regarding its second half of 2004 performance.
1
WORLDWIDE EMERGING MARKETS FUND
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Taiwan was also affected by political events, as the KMT party, perceived to be
more friendly toward China, did not win the nation's presidential election as
anticipated, and the incumbent party was re-elected instead. A close, disputed
election and an assassination attempt on the new president only added to the
unrest in the market. On the other hand, Taiwan's market was boosted by a
substantial prospective increase in its weighting in the MSCI Emerging Markets
Free Index.
The SOUTH AFRICAN equity market performed relatively well, although the
dollar-based prices of several commodities declined in the second quarter. The
Fund prudently had little exposure to South African resource stocks, but an
underweighted exposure to the market detracted.
BRAZILIAN stocks were the most significant outperformers in 2003, but struggled
during the first half of 2004 for several reasons. Due to its high external debt
burden, the market was quite sensitive to global risk aversion. In addition, its
domestic economic recovery remained elusive, and there were ongoing pricing
pressures on several of its exported resources, such as iron ore and pulp.
Finally, President Luiz Inacio Lula da Silva's administration was tainted by
allegations of corruption and lost some of its former popularity.
MEXICO (6.0% of Fund net assets) was one of the best-performing markets during
the first half of 2004, climbing 14.28% in U.S. dollar terms. Key reforms
appeared to have lost momentum and are yet to be passed through the political
process. However, stocks performed well, based largely on an economy that
finally began to benefit from the U.S. economic recovery, belying some of the
worst fears about its losing competitiveness to China.
The HONG KONG equity market (3.3% of Fund net assets) was down 2.76% in U.S.
dollar terms for the six-month period. While impacted by events in China, the
Hong Kong market benefited from the early stages of a two-way flow of capital
with the Mainland. The Hong Kong market also benefited from relatively high
index weightings in utilities and property stocks as well as signs that the
nation was coming out of its deflationary cycle and was experiencing some
domestic price recovery.
In contrast to their strong relative performance in 2003, INDIAN stocks (3.3% of
Fund net assets) were the second worst performers of the emerging markets during
the first half of 2004. India has what many consider to be among the best-run
companies in the emerging market universe, but equity valuations during the
period were not compelling. Also, as seen elsewhere, India was affected by
political events. The incumbent party was defeated in its general elections, and
the market did not respond favorably to the winning Congress party, perceived to
be less reform friendly. The Fund was prudently underweighted in the Indian
equity market.
THAILAND (3.1% of Fund net assets) also reversed course, having been the world's
third best market in 2003 but the worst performer of the emerging markets during
the six months ended June 30 with a total return of -18.93% in U.S. dollar
terms. Thailand's equity market was affected during the first quarter in
particular by an outbreak of bird flu, violence in the southern part of the
country, and declining popularity of its prime minister. During the second
quarter, the impact of these factors was somewhat ameliorated.
CHINA (2.9% of Fund net assets) produced a total return of -14.92% in U.S.
dollar terms for the first half of 2004, due primarily to the government's
austerity measures discussed above. To its benefit, the Fund was underweighted,
but was nevertheless impacted by its holding in the poorly performing Chalco
(Aluminum Corporation of China, 1.0% of Fund net assets), an aluminum producer
with attractive long-term fundamentals, but a company that found itself in the
front line of government slow-down measures.
Overall, the first six months of 2004 was a challenging period for the emerging
markets. However, emerging markets equities, in our opinion, can be an excellent
way to position a portfolio for an upturn in global leading indicators. We
maintain that portfolio diversification is a key element to successful
investing, particularly in the volatile investment environment of the past
several years.
2
WORLDWIDE EMERGING MARKETS FUND
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Investors should be aware that emerging markets 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.
Settlement and clearance practices may be less efficient than more developed
markets.
We appreciate your participation in the Van Eck Worldwide Emerging Markets Fund
and look forward to helping you meet your investment goals in the future.
[PHOTO OMITTED]
/s/ DAVID A. SEMPLE
DAVID A. SEMPLE
PORTFOLIO MANAGER
July 16, 2004
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS; CURRENT PERFORMANCE MAY BE
LOWER OR HIGHER THAN THE PERFORMANCE DATA QUOTED. Performance information
reflects waivers of expenses and/or fees. Investment return and value of shares
of the Fund will fluctuate so that an investor's shares, when redeemed, may be
worth more or less than their original cost. These returns do not reflect the
deduction of taxes that a shareholder would pay on Fund dividends and
distributions or the redemption of Fund shares. THESE RETURNS DO NOT TAKE
VARIABLE ANNUITY/LIFE FEES AND EXPENSES INTO ACCOUNT. Performance information
current to the most recent month end is available by calling 1-800-826-2333.
The Adviser is currently waiving certain or all expenses on 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 insurance 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. For insurance products, performance figures do not reflect the
cost for insurance and if they did, the performance shown would be significantly
lower. A review of your particular life and/or annuity contract will provide you
with much greater detail regarding these costs and benefits.
3
WORLDWIDE EMERGING MARKETS FUND
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All indices listed are unmanaged indices and include the reinvestment of all
dividends where available, but do not reflect the payment of transaction costs,
advisory fees or expenses that are associated with an investment in the Fund. An
index's performance is not illustrative of the Fund's performance. Indices are
not securities in which investments can be made.
(1) The Morgan Stanley Capital International (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.
(2) All regional and market returns are in U.S. dollar terms (unless otherwise
specified) and are based on country-specific stock market indices. For example,
the South Korean market is measured by the Korean Composite Index (KOSPI).
4
WORLDWIDE EMERGING MARKETS FUND
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GEOGRAPHICAL WEIGHTINGS*
AS OF JUNE 30, 2004 (UNAUDITED)
[The data below represent a pie chart in the printed report.]
South Korea 26.2%
Taiwan 13.0%
South Africa 12.7%
Brazil 10.0%
Cash/Equivalents plus
Other Assets Less Liabilities 9.0%
Other 1.7%
Indonesia 1.3%
Israel 1.4%
Venezuela 1.7%
Singapore 1.7%
Malaysia 2.7%
China 2.9%
Thailand 3.1%
India 3.3%
Hong Kong 3.3%
Mexico 6.0%
- ----------
*Portfolio is subject to change.
5
WORLDWIDE EMERGING MARKETS FUND
TOP TEN EQUITY HOLDINGS AS OF JUNE 30, 2004*
- --------------------------------------------------------------------------------
SAMSUNG ELECTRONICS CO. LTD.
(SOUTH KOREA, 4.5%)
Samsung Electronics manufactures and exports a wide range of consumer and
industrial electronic equipment such as memory chips, semiconductors, personal
computers, telecommunications equipment and televisions.
HYUNDAI MOTOR CO. LTD.
(SOUTH KOREA, 3.8%)
Hyundai Motor manufactures, sells, and exports passenger cars, trucks and
commercial vehicles.The company also sells various auto parts and operates auto
repair service centers throughout South Korea; it also provides financial
services through its subsidiaries.
AFRICAN BANK INVESTMENTS LTD.
(SOUTH AFRICA, 3.3%)
African Bank Investments is a bank holding company. The group provides financial
services to the under-serviced areas of the South African population, and
specializes in making consumer loans and micro-lending products to individuals
and small businesses.
KANGWON LAND, INC.
(SOUTH KOREA, 2.5%)
Kangwon Land is a casino and hotel services provider located in the Kangwon
province of South Korea. Kangwon operates, under their gaming licenses, a number
of gaming tables and slot machines for domestic and international customers.
VOTORANTIM CELULOSE E PAPEL S.A. (VCP)
(BRAZIL, 2.5%)
VCP is principally engaged in the production, manufacturing, distribution,
marketing and export of pulp, cellulose, short fiber, special and writing paper,
cardboard and other related products. The company also has activities in
forestry management and exploration.
HYUNDAI MOBIS
(SOUTH KOREA, 2.5%)
Hyundai Mobis manufactures and markets automotive parts and equipment. The
company also produces industrial machinery, military vehicles and transportation
containers.
CHEIL COMMUNICATIONS, INC.
(SOUTH KOREA, 2.5%)
Cheil Communications is the largest advertising agency in South Korea. An
affiliate of Samsung Electronics, the company provides advertising, strategy and
consulting, creative media promotion and sports marketing services.
FIRSTRAND LTD.
(SOUTH AFRICA, 2.2%)
FirstRand provides diverse financial services in the areas of retail, corporate,
investment and merchant banking, life insurance, employee benefits, health
insurance and asset and property management. The banking and insurance
activities of the group are consolidated in the wholly owned subsidiaries
FirstRand Bank Holdings Limited and Momentum Group Limited.
CONSORCIO ARA S.A. DE C.V.
(MEXICO, 2.1%)
Consorcio ARA's activities are the purchase of land, the design and development
of affordable entry-level, middle-income and residential housing as well as the
construction, promotion and marketing of such housing developments and the
operation as a constructor in industrial and tourist developments. The company
is also involved in the leasing of commercial centers, uni-centers and
mini-centers. Consorcio ARA also has built other projects of a public and
private nature such as hospitals, hotels, industrial plants, administrative
offices and infrastructure works.
CNOOC LTD.
(HONG KONG, 2.1%)
CNOOC explores, develops, and produces crude oil and natural gas. The company is
involved in the petroleum industry's upstream operating activities comprising of
production-sharing contracts with foreign partners and independent operations.
- ----------
*Portfolio is subject to change
6
WORLDWIDE EMERGING MARKETS FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
JUNE 30, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
NO. OF VALUE
COUNTRY SHARES SECURITIES (a) (NOTE 1)
- --------------------------------------------------------------------------------
BRAZIL: 10.0%
5,750,000 Caemi Mineracao e Metalurgia S.A. $ 2,187,299
73,000 Cia Vale Do Rio Doce (ADR) 2,854,300
51,519 Embraer Aircraft Corp. (Sponsored ADR) 1,472,928
149,000 Gerdau S.A. (Preferred Stock) 1,784,446
2,223,468 Itausa Investimentos Itau S.A. 2,580,427
19,400 Petroleo Brasileiro S.A. (Preferred Stock) 483,499
120,000 Votorantim Celulose
e Papel S. A. (Sponsored ADR) 3,816,000
------------
15,178,899
------------
CHINA: 2.9%
2,900,000 Aluminum Corporation of China Ltd. 1,552,283
1,950,000 Denway Motors Ltd. 706,268
2,850,000 Global Bio-Chem Technology Group Co. Ltd. 2,064,476
418,750 Global Bio-Chem Technology
Group Co. Ltd. Warrants
(HKD 9.80, expiring 5/31/07) 27,381
------------
4,350,408
------------
HONG KONG: 3.3%
840,000 Asia Aluminium Holdings Ltd. 81,848
1,570,000 Chen Hsong Holdings Ltd. 885,664
7,500,000 CNOOC Ltd. 3,173,158
4,600,000 Media Partners International Holdings, Inc. 230,006
2,800,000 Solomon Systech International
Ltd. Industries Ltd. 692,838
------------
5,063,514
------------
INDIA: 3.3%
1,250,000 Ashok Leyland Ltd. 620,172
80,000 Bharat Electronics Ltd. 680,579
95,000 Bharat Heavy Electricals Ltd. 1,037,444
200,000 Gail India Ltd. 740,289
6,829 Infosys Technologies Ltd. 820,713
118,987 State Bank of India 1,115,042
------------
5,014,239
------------
INDONESIA: 1.3%
1,900,000 PT Telekomunikasi Indonesia $ 1,495,745
1,000,000 Unilever Indonesia Tbk 417,553
------------
1,913,298
------------
ISRAEL: 1.4%
32,700 Teva Pharmaceutical Industries Ltd. 2,200,383
------------
MALAYSIA: 2.7%
485,000 Genting Berhad 1,952,763
795,000 MAA Holdings Berhad 1,108,816
3,289,000 Multi-Purpose Holdings Berhad 978,045
328,900 Multi-Purpose Holdings Berhad Rights
(MYR 1.00, expiring 2/26/09) 38,949
------------
4,078,573
------------
MEXICO: 6.0%
60,000 America Movil S.A. de C.V. 2,182,200
1,125,000 Consorcio ARA S.A. de C.V. 3,237,586
2,003,500 Corporacion GEO S.A. de C.V. (Series B) 2,635,040
50,000 Grupo Aeroportuario del Dureste S.A de C.V. 925,000
70,000 Grupo Industrial Saltillo de C.V. 113,334
------------
9,093,160
------------
PHILIPPINES: 0.8%
60,000 Philippine Long Distance Telephone Co. 1,251,600
------------
SINGAPORE: 1.7%
1,871,000 First Engineering Ltd. 1,119,904
2,612,000 Noble Group Ltd. 1,426,825
------------
2,546,729
------------
SOUTH AFRICA: 12.7%
205,000 ABSA Group Ltd. 1,677,497
2,666,000 African Bank Investments Ltd. 5,047,541
1,215,000 Alexander Forbes Ltd. 1,986,498
75,000 Anglo American PLC 1,534,939
240,000 Bidvest Group Ltd. 2,021,661
2,050,000 FirstRand Ltd. 3,351,705
13,500 Impala Platinum Holdings Ltd. 1,020,217
175,000 Sappi Ltd. 2,659,045
------------
19,299,103
------------
See Notes to Financial Statements
7
WORLDWIDE EMERGING MARKETS FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
JUNE 30, 2004 (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
NO. OF VALUE
COUNTRY SHARES SECURITIES (a) (NOTE 1)
- --------------------------------------------------------------------------------
SOUTH KOREA: 26.2%
27,500 Cheil Communications, Inc. $ 3,736,478
690,000 Curitel Communications Inc. 1,370,446
63,000 Honam Petrochemical Corp. 2,148,161
84,500 Hyundai Mobis 3,751,493
150,000 Hyundai Motor Co. Ltd. 5,770,229
115,000 Insun ENT Co. Ltd. 1,472,955
348,740 Kangwon Land, Inc. 3,863,152
1,537 Kookmin Bank (Sponsored ADR) 48,231
160,000 Korean Air Lines Co. Ltd. 2,077,023
20,000 Orion Corp. 1,235,829
5,500 POSCO 709,217
45,000 POSCO (Sponsored ADR) 1,507,950
16,650 Samsung Electronics Co. Ltd. 6,873,258
185,000 SFA Engineering Corp. 1,657,075
7,800 Shinsegae Co. Ltd. 1,876,590
10,000 SK Telecom Co. Ltd. 1,644,310
------------
39,742,397
------------
TAIWAN: 13.0%
1,185,693 Advantech Co. Ltd. 2,416,542
850,000 Amtran Technology Co. Ltd. 581,672
550,000 Benq Corp. 621,839
660,000 Hon Hai Precision Industry Co. Ltd. 2,454,627
254,950 MediaTek, Inc. 2,032,925
100,000 Novatek Microelectronics Ltd. 330,259
1,242,105 Quanta Computer, Inc. 2,642,383
417,250 Siliconware Precision Industries Co. (ADR) 1,694,035
900,000 Taiwan Fu Hsing Industrial Co. Ltd. 830,110
1,697,172 Taiwan Semiconductor Manufacturing Co. Ltd. 2,444,008
2,000,000 United Microelectronics Corp. 1,487,652
610,000 Waffer Technology Co. Ltd. 1,234,157
1,527,750 Yuanta Core Pacific Securities Co. 954,560
------------
19,724,769
------------
THAILAND: 3.1%
10,250,000 Asian Property Development Public Co. Ltd. $ 1,081,319
355,000 Bangkok Bank Public Co. Ltd. 814,896
2,500,000 Bumrungrad Hospital Public Co. Ltd. 805,861
20,550,000 Quality Houses Public Co. Ltd. 627,289
4,110,000 Quality Houses Public Co. Ltd.
Warrants (THB 1.20, expiring 9/11/08) 36,132
5,701,500 Royal Garden Resort Public Co. Ltd. 350,862
175,000 Siam Cement Public Co. Ltd. 991,453
------------
4,707,812
------------
TURKEY: 0.9%
4,775,000 Haci Omer Sabanci Holding A.S.(b) 1,415,291
------------
VENEZUELA: 1.7%
125,000 Compania Anonima Nacional
Telefonos de Venezuela 2,518,750
------------
TOTAL INVESTMENTS: 91.0%
(Cost: $108,219,677) ............................................. $138,098,925
------------
See Notes to Financial Statements
8
WORLDWIDE EMERGING MARKETS FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
JUNE 30, 2004 (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
PRINCIPAL DATE OF VALUE
AMOUNT MATURITY COUPON (NOTE 1)
- --------------------------------------------------------------------------------
SHORT-TERM OBLIGATION: 4.0%
Repurchase Agreement (Note 11):
Purchased on 6/30/04;
Maturity value $6,149,231
(with State Street Bank &
Trust Co., collateralized by
$5,985,000 Federal National
Mortgage Association
6.00% due 12/15/05 with
a value of $6,276,769)
(Cost: $6,149,000) 7/01/04 1.35% $ 6,149,000
------------
TOTAL INVESTMENTS: 95.0%
(COST: $114,368,677) 144,247,925
OTHER ASSETS LESS LIABILITIES: 5.0% 7,597,960
------------
NET ASSETS: 100% $151,845,885
============
- --------------------------------------------------------------------------------
SUMMARY OF % OF SUMMARY OF % OF
INVESTMENTS NET INVESTMENTS NET
BY INDUSTRY ASSETS BY INDUSTRY ASSETS
- ---------------------------- -------- ---------------------------- --------
Autos 7.1% Materials 15.3%
Banks 3.0% Media 2.6%
Basic Hardware 0.1% Multi Industry 1.6%
Biotechnology 1.4% Petrochemicals 1.4%
Capital Goods 2.7% Pharmaceuticals 1.5%
Consumer Products 2.2% Real Estate 7.0%
Diversified Financial 9.3% Retail 1.2%
Energy 2.9% Software 0.5%
Food, Beverage and Tobacco 0.8% Technology Hardware 17.7%
Hospital Management 0.6% Telecommunications 6.0%
Hotel and Leisure 1.3% Transportation 2.0%
Manufacturing 2.8% Short-Term Obligation 4.0%
Other assets less liabilities 5.0%
-------
100.0%
=======
- ----------
(a) Unless otherwise indicated, securities owned are shares of common stock.
(b) These shares are denominated in blocks of 100.
Glossary:
ADR-American Depositary Receipt
GDR-Global Depositary Receipt
See Notes to Financial Statements
9
WORLDWIDE EMERGING MARKETS FUND
- --------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES
JUNE 30, 2004 (UNAUDITED)
ASSETS:
Investments, at value (cost $114,368,677) (Note 1) ............. $ 144,247,923
Foreign currency (cost $3,978,223) ............................. 3,952,434
Cash--initial margin on equity swap (Note 9) ................... 486,051
Receivables:
Due from broker-swap (Note 9) ............................... 2,861,717
Capital shares sold ......................................... 1,951,772
Securities sold ............................................. 242,586
Dividends ................................................... 236,351
Prepaid expense ............................................. 99,803
-------------
Total assets ............................................ 154,078,637
-------------
LIABILITIES:
Payables:
Capital shares redeemed ..................................... 1,834,448
Due to Adviser .............................................. 117,956
Accounts payable ............................................ 280,348
-------------
Total liabilities ....................................... 2,232,752
-------------
Net assets ..................................................... $ 151,845,885
=============
INITIAL CLASS SHARES:
Net Assets ..................................................... $ 144,207,088
=============
Shares outstanding ............................................. 12,224,955
=============
Net asset value, redemption and offering price per share ....... $ 11.80
=============
R1 CLASS SHARES:
Net Assets ..................................................... $ 7,638,797
=============
Shares Outstanding ............................................. 647,368
=============
Net asset value, redemption and offering price per share ....... $ 11.80
=============
Net assets consist of:
Aggregate paid in capital ................................... $ 146,190,125
Unrealized appreciation of investments, equity swaps,
forward foreign currency contracts and foreign
currency transactions ..................................... 32,561,928
Undistributed net investment income ......................... 511,750
Accumulated realized loss ................................... (27,417,918)
-------------
$ 151,845,885
=============
See Notes to Financial Statements
10
WORLDWIDE EMERGING MARKETS FUND
- --------------------------------------------------------------------------------
STATEMENT OF OPERATIONS
SIX MONTHS ENDED JUNE 30, 2004 (UNAUDITED)
INCOME (NOTE 1):
Dividends (net of foreign taxes withheld of $195,798) .. $ 2,008,587
Interest ............................................... 2,603
-----------
Total income ....................................... 2,011,190
-----------
EXPENSES:
Management (Note 2) .................................... $ 876,764
Administration (Note 2) ................................ 1,175
Custodian .............................................. 154,064
Professional ........................................... 69,676
Interest (Note 10) ..................................... 35,491
Report to shareholders ................................. 30,020
Trustees' fees and expenses ............................ 15,504
Transfer agency--Initial Class Shares .................. 6,293
Transfer agency--R1 Class Shares ....................... 1,808
Other .................................................. 19,766
----------
Total expenses ..................................... 1,210,561
Expenses assumed by the Adviser (Note 2) ........... (20,727)
----------
Net expense ......................................... 1,189,834
-----------
Net investment income ............................... 821,356
-----------
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS (NOTE 3):
Realized gain from security transactions ................ 26,151,206
Realized loss from foreign currency transactions ........ (184,494)
Realized gain from swaps ................................ 1,513,514
Change in unrealized depreciation of foreign
denominated assets and liabilities and
forward foreign currency contracts .................... (50,744)
Change in unrealized appreciation of investments
and swaps ............................................. (32,878,354)
-----------
Net realized and unrealized gain on investments,
swap, futures and foreign currency transactions ....... $(5,448,872)
-----------
Net Increase in Net Assets Resulting from Operations .... $(4,627,516)
===========
See Notes to Financial Statements
11
WORLDWIDE EMERGING MARKETS FUND
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
SIX MONTHS ENDED YEAR ENDED
JUNE 30, 2004 DECEMBER 31,
(UNAUDITED) 2003
---------------- --------------
INCREASE IN NET ASSETS FROM:
OPERATIONS:
Net investment income .......................... $ 821,356 $ 2,089,602
Realized gain from security transactions ....... 26,151,206 16,968,020
Realized losses from forward currency
contracts and foreign currency transactions .. (184,494) (208,291)
Realized gain from futures and swaps ........... 1,513,514 821,526
Change in unrealized appreciation of
investments and swaps ........................ (32,878,354) 57,160,283
Change in unrealized depreciation of foreign
denominated assets and liabilities and
forward currency contracts ................... (50,744) (267,090)
------------ --------------
Net increase (decrease) in net assets resulting
from operations ................................ (4,627,516) 76,564,050
------------ --------------
DIVIDENDS TO SHAREHOLDERS FROM:
Net investment income
Initial Class Shares ......................... (1,017,032) (294,007)
Class R1 Shares .............................. -- --
------------ --------------
(1,017,032) (294,007)
------------ --------------
CAPITAL SHARE TRANSACTIONS*:
Proceeds from sales of shares
Initial Class Shares ......................... 33,766,494 2,605,371,707
Class R1 Shares .............................. 10,573,516 --
------------ --------------
44,340,010 2,605,371,707
------------ --------------
Reinvestment of dividends and distributions
Initial Class Shares ......................... 1,017,032 294,007
Class R1 Shares .............................. -- --
------------ --------------
1,017,032 294,007
------------ --------------
Cost of shares reacquired
Initial Class Shares ......................... (61,351,363) (2,654,890,446)
Class R1 Shares .............................. (2,853,043) --
Redemption fees .............................. 30,073 --
------------ --------------
(64,174,333) (2,654,890,446)
------------ --------------
Net decrease in net assets resulting from
capital share transactions ................ (18,817,291) (49,224,732)
------------ --------------
Total increase (decrease) in net assets ...... (24,461,839) 27,045,311
NET ASSETS:
Beginning of Period .............................. 176,307,724 149,262,413
------------ --------------
End of Period (including undistributed net
investment income of $511,750 and $891,920,
respectively) .................................. $151,845,885 $ 176,307,724
============ ==============
* SHARES OF BENEFICIAL INTEREST ISSUED AND
REACQUIRED (UNLIMITED NUMBER OF $.001 PAR
VALUE SHARES AUTHORIZED):
INITIAL SHARES:
Shares sold .................................... 2,646,345 321,948,823
Reinvestment of dividends ...................... 81,887 37,122
Shares reacquired .............................. (5,017,233) (326,400,677)
------------ --------------
Net increase (decrease) ........................ (2,289,001) (4,414,732)
============ ==============
R1 SHARES:+
Shares sold .................................... 903,950
Shares reacquired .............................. (256,582)
------------
Net increase (decrease) ........................ 647,368
============
+ Inception date of Class R1 shares May 1, 2004
See Notes to Financial Statements
12
WORLDWIDE EMERGING MARKETS FUND
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD:
INITIAL CLASS SHARES CLASS R1 SHARES
--------------------------------------------------------------------------- ---------------
SIX MONTHS FOR THE PERIOD
ENDED MAY 1, 2004(e)
JUNE 30, YEAR ENDED DECEMBER 31, THROUGH
2004 ---------------------------------------------------------- JUNE 30, 2004
(UNAUDITED) 2003 2002 2001 2000 1999 UNAUDITED)
----------- ------- ------- ------- ------- ------- ---------------
Net Asset Value,
Beginning of Period ................ $ 12.15 $ 7.89 $ 8.15 $ 8.29 $ 14.26 $ 7.12 $11.94
------- ------- ------- ------- ------- ------- ------
Income From Investment Operations:
Net Investment Income (Loss) ....... 0.07 0.13 0.04 0.08 (0.03) 0.10(g) 0.01
Net Realized and Unrealized Gain
(Loss) on Investments, Swaps,
Futures and Foreign Currency
Transactions ....................... (0.35) 4.14 (0.28) (0.22) (5.94) 7.04 (0.15)
------- ------- ------- ------- ------- ------- ------
Total From Investment Operations ...... (0.28) 4.27 (0.24) (0.14) (5.97) 7.14 (0.14)
------- ------- ------- ------- ------- ------- ------
Less Dividends and Distributions:
Dividend from Net Investment
Income ............................. (0.07) (0.01) (0.02) -- -- -- --
------- ------- ------- ------- ------- ------- ------
Redemption fees ....................... --(f) -- -- -- -- -- --(f)
------- ------- ------- ------- ------- ------- ------
Net Asset Value, End of Period ........ $ 11.80 $ 12.15 $ 7.89 $ 8.15 $ 8.29 $ 14.26 $11.80
======= ======= ======= ======= ======= ======= ======
Total Return (a) ...................... (2.33)% 54.19% (3.02)% (1.69)% (41.87)% 100.28% (1.17)%
===================================================================================================================================
RATIOS/SUPPLEMENTARY DATA
Net Assets, End of Period (000) ....... $144,207 $176,308 $149,262 $134,424 $129,047 $243,516 $7,639
Ratio of Gross Expenses to Average
Net Assets ......................... 1.38%(d) 1.43% 1.36% 1.30% 1.33% 1.54% 1.73%(d)
Ratio of Net Expenses to Average
Net Assets (c) ..................... 1.32%(b)(d) 1.30%(b) 1.30%(b) 1.28% 1.26%(b) 1.34%(b) 1.40%(b)(d)
Ratio of Net Investment Income
(Loss) to Average Net Assets (c) ... 0.94%(d) 1.27% 0.39% 1.04% (0.22)% 0.80% 0.51%(d)
Portfolio Turnover Rate ............... 36% 63% 125% 135% 113% 143% 36%
- ----------
(a) Total return is calculated assuming an initial investment of $10,000 made at
the net asset value at the beginning of the period, reinvestment of
dividends and distributions at net asset value on the dividend payment date
and a redemption on the last day of the period. The return does not reflect
the deduction of taxes that a shareholder would pay on Fund dividends and
distributions or the redemption of Fund shares.
(b) Excluding interest expense.
(c) Net effect of expense waiver to average net assets of the Initial Class
shares for the six months ended June 30, 2004 and for the years ended
December 31, 2003 and December 31, 2002 was 0.02%, 0.09% and 0.03%,
respectively and for the period ending June 30, 2004 for the Class R1 shares
was 0.28%.
(d) Annualized
(e) Inception date of Class R1 shares.
(f) Amount represents less than $0.01 per share.
(g) Based on average shares outstanding.
See Notes to Financial Statements
13
WORLDWIDE EMERGING MARKETS FUND
- --------------------------------------------------------------------------------
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, as amended. The Fund offers
two classes of shares: shares that have been continuously offered since the
inception of the Fund, the Initial Class and Class R1 shares that became
available for purchase on May 1, 2004. The two classes are identical except
Class R1 shares are, under certain circumstances subject to a redemption fee on
redemptions within 60 days. The following is a summary of significant accounting
policies consistently followed by the Worldwide Emerging Markets Fund (the
"Fund"), a diversified 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 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. As of June 23,
2003, the portfolio began pricing securities traded on the NASDAQ Stock Market
using the NASDAQ official close price. 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 ask prices. Securities in which
the Fund invests are traded in markets that close before 4:00 p.m. Eastern Time.
Normally, developments that occur between the close of the foreign market and
4:00 p.m. Eastern Time will not be reflected in the Fund's NAV. However, if a
Fund determines that such developments are so significant that they will
materially affect the value of the Fund's securities, the Fund may adjust the
previous closing prices to reflect what the Board of Trustees believes to be the
fair value of the securities as of 4:00 p.m. Eastern Time. The Fund may also
fair value securities in other situations, for example, when a particular
foreign market is closed but the Fund is open. The price which the Fund may
realize upon sale may differ materially from the value presented in the schedule
of portfolio investments. 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 market valued at amortized
cost, which with accrued interest approximates market value. 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 ask 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 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
accounting principles generally accepted in the United States.
E. OTHER--Security transactions are accounted for on the date the securities are
purchased or sold. Realized gains and losses are calculated based on the
identified cost basis. Interest income is accrued as earned.
F. 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 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 price of the futures contract and the price of the underlying instrument and
interest rates. Gains and losses on futures contracts, if any, are separately
disclosed. There were no futures outstanding at June 30, 2004.
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 realized 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 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
14
WORLDWIDE EMERGING MARKETS 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 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,
2004.
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. The
Adviser agreed to assume expenses exceeding 1.30% of average daily net assets
except interest, taxes, brokerage commission and extraordinary expenses for the
period January 1, 2004 through April 30, 2004 and 1.40% from May 1, 2004 through
April 30, 2005. For the six months ended June 30, 2004, the Adviser assumed
expenses in the amount of $20,727. 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 other
administrative functions.
NOTE 3--INVESTMENTS--Purchases and sales of securities, other than U.S.
government securities and short-term obligations, aggregated $60,396,049 and
$88,346,399 respectively, for the six months ended June 30, 2004.
NOTE 4--INCOME TAXES--For federal income tax purposes, the identified cost of
investments owned at June 30, 2004 was $114,368,677. As of June 30, 2004, net
unrealized appreciation for federal income tax purposes aggregate $29,879,246 of
which $37,487,309 relate to appreciated securities and $7,608,063 related to the
depreciated securities
Because federal income tax regulations differ from accounting principals
generally accepted in the United States of America, income and capital gains
distributions determined in accordance with tax regulations may differ from net
investment income and realized gains recognized for finical reporting purposes.
Accordingly, the character of distributions and composition of net assets for
tax purposes differs from those reflected in the accompanying financial
statements.
The Fund intends to retain realized capital gains that may be offset against
available capital loss carryforwards for federal income tax purpose.
At December 31, 2003, the Fund had a capital loss carryforward of $51,105,505
available $33,909,513 expiring December 31, 2009 and $17,195,992 expiring
December 31,2010.
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 transactions clearance and settlement practices,
and future adverse political and economic developments. These risks are
heightened for investments in emerging market countries. Moreover, securities of
many foreign issuers and their markets may be less liquid and their prices more
volatile than those of comparable U.S. issuers.
The aggregate shareholder accounts of a single insurance company own
approximately 83% of the Initial Class and approximately 99% of the Class R1
shares.
NOTE 6--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 7--FORWARD FOREIGN CURRENCY CONTRACTS--The Fund may buy and sell forward
foreign currency contracts to settle purchases and sales of foreign denominated
securities. In addition, the Fund may enter into forward foreign currency
contracts to hedge foreign denominated assets. Realized gains and losses from
forward foreign currency contracts are included in realized loss from foreign
currency transactions. At June 30, 2004, there were no forward foreign currency
contracts outstanding.
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 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.
The Fund has elected to show this deferred liability net of the corresponding
asset for financial statement purposes. As of June 30, 2004, the net value of
the asset and corresponding liability of the Fund's portion of the Plan is
$117,161.
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
15
WORLDWIDE EMERGING MARKETS FUND
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
(CONTINUED)
counterparty. Therefore, the Fund considers the credit worthiness of each
counterparty to a swap contract in evaluating potential credit risk.
Additionally, risks may arise from unanticipated movements in the value of the
swap relative to the underlying securities. The Fund records a net receivable or
payable daily, based on the change in the value of the underlying securities.
The net receivable or payable for financial statement purposes is shown as due
to or from broker.
At June 30, 2004, the Fund had the following outstanding swap (stated in U.S.
dollars):
NUMBER
UNDERLYING OF NOTIONAL TERMINATION UNREALIZED
SECURITIES SHARES AMOUNT DATE APPRECIATION
- -------------- -------- -------- --------- -----------
Gazprom Oil Co. 1,600,000 $485,851 Open $2,861,717
NOTE 10--BANK LINE OF CREDIT--The Trust may participate with other funds managed
by the Adviser (the "Van Eck Funds") in a $45 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. In connection therewith,
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. For the
six months ended June 30, 2004 the Fund borrowed an average daily amount of
$4,706,008 at an average interest rate of 1.66% under the Facility. At June 30,
2004, there are no outstanding borrowings under the facility.
NOTE 11--REPURCHASE AGREEMENTS--Collateral for the repurchase agreement 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 agreements,
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 12--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 and the United States
Securities and Exchange Commission have requested and received information from
the Adviser. The investigations are ongoing. At the present time, the Adviser is
unable to estimate the impact, if any, that the outcome of these investigations
may have on the Fund's results of operations or financial condition.
The Adviser has received a so-called "Wells Notice" from the Securities and
Exchange Commission ("SEC") in connection with the SEC's investigation of
market-timing activities in the securities industry as described in the Funds'
prospectus and prospectus supplements. 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 U.S. securities laws against the
Adviser and two of its senior officers. Under SEC procedures, the Adviser has an
opportunity to respond to the SEC staff before the staff makes a formal
recommendation. The Adviser is currently considering whether to provide such a
response, while continuing to cooperate fully with the SEC investigation.
Costs associated with the investigations have been and will continue to be paid
by the Adviser.
16
[GRAPHIC OMITTED] [GRAPHIC OMITTED]
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 preceded or accompanied by a Van Eck Worldwide Insurance
Trust 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. Investors should consider the investment objectives,
risks and charges and expenses of the Fund. Please read the prospectus carefully
before you invest. 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. The Statement of Additional
Information and information regarding how the Fund voted proxies relating to
portfolio securities during the most recent 12 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.
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
Not applicable.
Item 7. Disclosure of Proxy Voting Policies and Procedures For Closed-End
Management Investment Companies
Not applicable.
Item 8. Purchases of Equity Securities by Closed-End Management Investment
Companies and Affiliated Purchases
Not applicable.
Item 9. Submission of Matters to a Vote of Security Holders
Not applicable.
Item 10. Controls and Procedures.
(a) The Chief Executive Officer and the Chief Financial Officer have concluded
that the Worldwide Emerging Markets 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
Emerging Markets 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) For the period ending June 30, 2004, the Chief Executive Officer and the
Chief Financial Officer are aware of no significant changes in the
registrant's internal controls over financial reporting that has materially
affected or is reasonably likely to materially affect internal controls
over financial reporting.
Item 11. Exhibits.
(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 EMERGING MARKETS FUND
By (Signature and Title) /s/ Bruce J. Smith, VP & Treasurer
----------------------------------
Date August 27, 2004
---------------
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
--------------------------
Date August 27, 2004
---------------
By (Signature and Title) /s/ Bruce J. Smith, CFO
---------------------------
Date August 27, 2004
---------------