N-CSRS 1 c43567_n-csrs.htm 



                                  UNITED STATES

                       SECURITIES AND EXCHANGE COMMISSION

                             Washington, D.C. 20549

                                   FORM N-CSR

              CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT

                              INVESTMENT COMPANIES

Investment Company Act file number  811-05083

                 WORLDWIDE INSURANCE TRUST - WORLDWIDE BOND 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

Date of reporting period: JUNE 30, 2006




Item 1. REPORT TO SHAREHOLDERS.

 

SEMI-ANNUAL REPORT

J U N E 3 0 , 2 0 0 6

 


Worldwide Insurance Trust

        WORLDWIDE BOND FUND

 

 

 




The information in the shareholder letter represents the personal opinions of the management team members 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 management team members are as of June 30, 2006, and are subject to change.


Worldwide Bond Fund

Dear Shareholder:

The Initial Class shares of the Van Eck Worldwide Bond Fund gained 2.05% for the six months ended June 30, 2006. The Fund modestly underperformed the benchmark Citigroup World Government Bond Index1, which advanced 2.75% in U.S. dollar terms. During the six months, the global bond markets were characterized by two general investment themes: (1) 10-year yields trended higher across most major bond markets; and (2) the U.S. dollar weakened relative to most major currencies. The declining U.S. dollar was more than enough to offset the negative local currency returns in most bond markets and ended up bringing most major bond markets from the negative returns they produced during 2005 into positive territory for the first half of 2006. Indeed, the wide return differential in dollar versus local currency terms indicates the positive contribution that dollar weakness made to global bond returns during the period. (The benchmark Index returned +2.75% in U.S. dollar terms and -2.09% in local currency terms.) The Fund’s underperformance versus the benchmark Index during the semi-annual period was largely driven by its lack of exposure to the Japanese market during the first calendar quarter, its overweighted position in the New Zealand bond market and its overweighted allocation to the U.S. dollar.

Market and Economic Review

The first half of 2006 was challenging for global bond investors, as bond yields moved higher across most major markets, consequently causing bond prices to fall lower. In fact, the semi-annual period offered bond investors a level of suspense not seen in years, as the outlook for inflation and the U.S. Federal Reserve Board’s (the Fed’s) interest rate policies became sources of rising uncertainty. In the end, the Fed raised short-term interest rates four more times during the semi-annual period as a whole, increasing the federal funds rate from 4.25% to 5.25% . The yield on 10-year U.S. Treasuries rose by approximately 75 basis points (+0.75%), beginning the year at 4.39% and ending June at 5.14% . Inflationary pressures heightened, with commodity prices continuing to soar and the CPI (Consumer Price Index) moving higher to a measure of 4.3% year over year at June 30, 2006, compared to 3.4% at yearend 2005. Similarly, the German 10-year bond yield rose 76 basis points, from 3.31% to 4.07% over the six months ended June 30, 2006, and the Japanese 10-year bond yield rose 45 basis points, from 1.48% to 1.93% over the same time frame.

After a weak growth rate of 1.7% for the fourth quarter of 2005, U.S. economic growth accelerated to an annualized rate of 5.6% for the first quarter of 2006. Market expectations for the second quarter, at the time of this writing, are for a moderated growth rate of about 3.0%, partly reflecting a gradual cooling of the housing market and less robust consumer spending. As stated by the Fed following its June 29th interest rate hike, “Recent indicators suggest that economic growth is moderating from its quite strong pace earlier this year....and inflation expectations remain contained. However, the high levels of resource utilization and of the prices of energy and other commodities have the potential to sustain inflation pressures.” Economic activity in the U.S. was strong relative to Japan and the economies of Europe. Still, economic conditions similarly led the European Central Bank to raise its interest rates twice more during the six-month period, bringing its repo rate to 2.75% at the end of June 2006. The Bank of Japan took the first step to move away from its zero interest rate policy, removing quantitative easing.

Meanwhile, a significant support to bond market performance for U.S. dollar-based global bond investors was the U.S. dollar’s weakening relative to most major currencies, due in part to the abundance of uncertainty regarding new Fed Chairman Bernanke’s next move. The markets gyrated first from an outlook of further rate increases, which was positive for the U.S. dollar, to a view that the Fed would hold rates steady, which was negative for the U.S. dollar. Interpretations of Fed policy changed with virtually every waffling comment on inflation and monetary policy issued from Chairman Bernanke. Also contributing to U.S. dollar weakness was the view that central bank tightening cycles would continue in Europe and that Japan’s zero interest rate policy was coming to an

1


Worldwide Bond Fund

end. During the semi-annual period, relative to the U.S. dollar, the euro strengthened by 7.95%, the Japanese yen by 2.91% and the British pound by 7.28% . The Canadian and Australian currencies strengthened relative to the U.S. dollar by 4.09% and 1.30%, respectively. The exceptions to this trend were the New Zealand dollar, the South African rand and the Mexican peso, which actually weakened relative to the U.S. dollar by 11.03%, 11.77% and 6.22%, respectively.

Fund Review

Throughout the first half of 2006, the Fund had an overweighted position relative to the Index in terms of U.S. duration and currency. The Fund ended June with a 28.8% allocation to the U.S. market. After being one of the best performing constituents of the Index in U.S. dollar terms for 2005, the U.S. bond market was the second worst performing constituent of the Index in U.S. dollar terms for the six-month period ended June 30, 2006, and so this strategy detracted from the Fund’s relative performance. The Citigroup U.S. Government Bond Index2 returned -1.26%. The U.S. Treasury yield curve continued to flatten over the semi-annual period, as the Fed continued tightening monetary policy, economic expansion continued at a brisk pace, and the yields of longer-term maturity bonds rose less than those of shorter-term maturities. Also, the U.S. Dollar Index (DXY)3, which has been declining since November 16, 2005, fell precipitously in April and May of 2006, as the financial markets sensed the Fed might be nearing an end to its current cycle of interest rate increases. The U.S. dollar subsequently strengthened, but the DXY declined by approximately 6.59% for the semi-annual period overall.

The Fund had an underweighted duration exposure compared to the Index for the Eurozone and shifted from a neutral to an overweighted Eurozone currency exposure over the period. The Fund’s increased allocation to the euro benefited relative results, as the euro appreciated. This positive was partially offset by the Fund’s Eurozone duration positioning, which detracted on an absolute basis. Still, on a relative basis, the Fund’s duration positioning in the region helped given the rising interest rate environment. The European Government Bond Index fell 2.85% in local currency terms, but gained 5.31% in U.S. dollar terms. In all, the Fund ended June with a weighting of 43.1% in Eurozone bonds, represented in the Fund by its holdings in Germany, Italy, Spain, France and Ireland.

The Fund was overweighted currency exposure and underweighted duration exposure within the United Kingdom bond market during the first half of 2006. This positioning helped relative performance for the six months, as this market was up 5.61% in U.S. dollar terms for the semi-annual period. The Fund ended June with an 8.1% weighting in the U.K. bond market.

We maintained a higher allocation in the Fund to the dollar bloc bond markets relative to the Index in terms of both duration and currency during the semi-annual period. We remained overweight the bond markets of Canada (6.9% of Fund net assets at June 30) and New Zealand (5.1% of Fund net assets at June 30), while maintaining zero exposure to the Australian bond market. The Aussie currency strengthened against the U.S. dollar but to a lesser degree than the euro and Japanese yen, and the New Zealand kiwi actually weakened relative to the U.S. dollar. The New Zealand bond market was also the worst performing bond market during the period with a return of -8.62% in U.S. dollar terms. The Canadian currency strengthened relative to the U.S. dollar to a lesser extent than the euro but to a greater extent than the Japanese yen, and the Canadian bond market returned 3.05% in U.S. dollar terms for the six-month period. Thus, in all, the Fund’s positioning in Canada helped absolute and relative performance, as negative local market returns were more than offset by a rising Canadian dollar. As the Australian bond market, with a return in U.S. dollar terms of 1.37%, underperformed the broad Index, the Fund’s underweighted position helped modestly as well. The Fund’s overweighted position in the poorly-performing New Zealand bond market detracted from its results.

Japan’s economy seemed to continue to gain some traction during the first half of the year in response to expectations of more structural reform and an end to Japan’s decade of deflation. The Fund

2


Worldwide Bond Fund

continued to avoid the Japanese market during the first calendar quarter, a strategy which did not prove beneficial to performance, as the yen generally strengthened. In April, the Fund re-entered the Japanese bond market by purchasing some Japanese yen-denominated bonds issued by U.S. and Austrian corporations. These corporate bonds are benchmarked and traded against the Japanese yield curve. As the Japanese currency continued to strengthen in April and May but then weakened in June, such positioning had only modestly positive results for the second quarter. At the end of June, the Fund had a 9.6% weighting in Japanese yen-denominated bonds, half of which (4.8% of Fund net assets at June 30) was in an Austrian corporate bond and half of which was in a U.S. corporate bond (this 4.8% of Fund net assets is included in the total U.S. allocation mentioned above). The Fund’s exposure to Japanese yen-denominated bonds is still a significantly underweighted allocation relative to the Index in terms of both duration and currency. For the six-month period, the Japanese bond market fell by 1.75% in local currency terms and gained 1.44% in U.S. dollar terms.

Quite early in the semi-annual period, the Fund exited its only emerging markets bond position, a bond issued by Mexico’s (0% of Fund net assets at June 30) telephone provider Telmex. The bond matured.

* * *

We continue to believe that asset allocation can play a crucial role in successful portfolio planning, particularly during uncertain economic times. Since high-quality bond markets move in different cycles with varying supply/demand characteristics, global bonds can add balance to a diversified fixed income strategy. The Worldwide Bond Fund invests primarily in high-quality debt instruments of bond markets worldwide, with heavy emphasis on government bonds of developed nations.

Investors should be aware that the Fund is subject to certain risks associated with international bond markets. Prices of fixed income securities, and with them the Fund’s share value, tend to fall when interest rates go up and to rise when interest rates fall. The longer the maturity or duration of the debt security, the higher the risk of price fluctuations due to changes in interest rates. Bonds rated below investment grade are viewed as speculative because their issuers are more vulnerable to financial setbacks and economic pressures than issuers with higher ratings.

Foreign investments may be subject to volatility from political or economic factors or from changing currency values. The Fund may engage in active and frequent trading to achieve its investment objectives. Consequently, the Fund may suffer adverse tax consequences and increased transaction costs that may affect performance. Because the Fund may borrow in amounts not to exceed 30% of its net assets to buy more securities, it is subject to leverage risk. Long-term investments entail greater risk of loss than short-term investments.

The Fund is classified as a non-diversified fund under the Investment Company Act of 1940 (the “1940 Act”) to enable it to concentrate its assets in a narrower group of bonds than a diversified fund, and is thus also subject to nondiversification risk. Thus, a large loss in an individual bond may cause a much larger loss in a non-diversified fund’s value. An investment in the Fund should be considered part of an overall investment program, rather than a complete investment program.

We appreciate your continued investment in Van Eck Worldwide Bond Fund, and we look forward to helping you meet your investment goals in the future.

 
Charles T. Cameron
Investment Team Member		   Gregory F. Krenzer
Investment Team Member

July 24, 2006
   

3


Worldwide Bond Fund

The performance quoted represents past performance. Past performance is no guarantee of future results; current performance may be lower or higher than the performance data quoted. 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 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’s charges, fees and expenses for these benefits that 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.

All reference to Fund assets refer to Total Net Assets.

All indices listed are unmanaged indices and include the reinvestment of all dividends, but do not reflect the payment of transaction costs, advisory fees or expenses that are associated with an investment in the Fund. An index’s performance is not illustrative of the Fund’s performance. Indices are not securities in which investments can be made.

1 The Citigroup World Government Bond Index is a market capitalization-weighted benchmark that tracks the performance of approximately 20 world government bond markets.

2 All country and regional bond market returns are Citigroup Government Bond Indices.

3 The U.S. Dollar Index (DXY) indicates the general international value of the U.S. dollar. The DXY does this by averaging the exchange rates between the U.S. dollar and six major world currencies.

4


Worldwide Bond Fund


Geographical Weightings*
as of June 30, 2006 (unaudited)

Sector Breakdown*
as of June 30, 2006 (unaudited)

Foreign Government Bonds    63.2 % 
U.S. Government Bonds    24.0 % 
International Banks    9.6 % 
Cash/Equivalents Plus Other Assets     
   Less Liabilities    3.2 % 

*Percentage of net assets.
Portfolio is subject to change.

5


Worldwide Bond Fund
Explanation of Expenses (unaudited)

Hypothetical $1,000 investment at beginning of period

As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including program fees on purchase payments; and (2) ongoing costs, including management fees and other Fund expenses. This disclosure is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.

The disclosure is based on an investment of $1,000 invested at the beginning of the period and held for the entire period, January 1, 2006 to June 30, 2006.

Actual Expenses

The first line in the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over a period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

The second line in the table below provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as program fees. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

        Expenses Paid 
    Beginning  Ending  During Period* 
    Account Value  Account Value  January 1, 2006- 
    January 1, 2006  June 30, 2006  June 30, 2006 
Initial Class  Actual  $1,000.00  $1,020.50  $5.96 
  Hypothetical (5% return before expenses)  $1,000.00  $1,018.89  $5.96 
Class R1  Actual  $1,000.00  $1,020.50  $6.21 
  Hypothetical (5% return before expenses)  $1,000.00  $1,018.65  $6.21 

* Expenses are equal to the Fund’s annualized expense ratio (for the six months ended June 30, 2006) of 1.19% for the Initial Class shares and 1.24% for the Class R1 shares and multiplied by the average account value over the period, multiplied by 181 divided by 365 (to reflect the one-half year period)
 

6


Worldwide Bond Fund
Schedule of Portfolio Investments
June 30, 2006 (unaudited)

  Principal    
Value 
 
Country  Amount    Bonds and Notes 
(Note 1) 
 
 
BONDS AND NOTES:     
Austria 4.8%         
JPY 300,000,000    Oester Kontroll Bank Bond     
    1.80% due 3/22/10  $ 2,677,744   
 
Canada 6.9%         
CAD 4,000,000    Canadian Government Bond     
    6.00% due 6/1/11  3,816,823   
 
France 6.9%         
EUR 3,000,000    French Treasury Note     
    3.75% due 1/12/07  3,847,411   
 
Germany 17.1%         
    Bundesrepublik     
Deutschland Bonds:
EUR 2,709,847    6.00% due 1/4/07  3,513,310   
EUR 1,500,000    4.50% due 7/4/09  1,962,117   
EUR 3,000,000    4.75% due 7/4/28  4,065,568   
 
      9,540,995   
 
Ireland 4.0%         
EUR 1,714,146    Irish Government Bond     
    8.00% due 8/18/06  2,205,033   
 
Italy 8.1%         
EUR 3,500,000    Italian Government Bond     
    4.50% due 3/1/07  4,512,506   
 
New Zealand 5.1%         
NZD 4,500,000    New Zealand     
    Government Bond     
    6.50% due 4/15/13  2,838,709   
 
Spain 7.0%         
EUR 3,000,000    Spanish Government Bond     
    4.00% due 1/31/10  3,868,131   
 
United Kingdom 8.1%     
GBP 2,400,000    Great Britain Government     
    Bond     
    7.50% due 12/7/06  4,491,587   
 

  
Principal
  
Value
 
Country  
Amount 
  
Bonds and Notes
(Note 1)
 
United States 28.8%         
JPY 300,000,000    KFW International   
    Finance, Inc. Bond $ 2,672,981  
    1.75% due 3/23/10  
    U.S. Treasury Notes/Bonds:  
$5,000,000    5.50% 5/15/09  5,052,150  
$5,000,000    4.00% 3/15/10  4,816,215  
$3,000,000    6.625% 2/15/27  3,494,064  
        16,035,410  
Total Bonds and Notes 96.8%   
(Cost: $45,099,894)        53,834,349  
 
Short-Term      Date of   
Obligations 1.4%      Maturity Coupon    
     
Repurchase Agreement     
(Note 9):         
Purchased on 6/30/06;     
maturity value $779,279     
(with State Street Bank &     
Trust Co., collateralized by     
$820,000 Federal Home     
Loan Bank 4.375% due     
9/17/10 with a value of     
 797,956) (Cost: $779,000)  7/3/06  4.30%   779,000  
Total Investments 98.2%    54,613,349  
(Cost: $45,878,894)     
Other assets less liabilities 1.8%  981,251  
Net Assets 100.0%    $ 55,594,600  
 
Glossary:     
CAD – Canadian Dollar     
EUR – Euro     
GBP – British Pound     
JPY – Japanese Yen     
NZD – New Zealand Dollar     
 
Summary of Investments    % of Net  
By Industry    Assets    
Foreign Governments    63.2 % 
U.S. Government    24.0 % 
International Banks    9.6 % 
Short-Term Obligations    1.4 % 
Other Assets Less Liabilities    1.8 % 
        100.0 % 

See Notes to Financial Statements

7


Worldwide Bond Fund

Statement of Assets and Liabilities
June 30, 2006 (unaudited)

Assets:   
Investments, at value (cost $45,878,894) (Note 1)  $ 54,613,349  
Cash  547  
Receivables:   
       Capital shares sold  124,400  
       Interest  988,838  
Prepaid expenses and other assets  30,356  
             Total assets  55,757,490  
Liabilities:   
Payables:   
       Capital shares redeemed  67,936  
       Due to Adviser  36,525  
       Due to Trustees  32,196  
       Accrued expenses  26,233  
             Total liabilities  162,890  
Net Assets  $ 55,594,600  
Initial Class Shares:   
Net Assets  $ 42,754,828  
Shares outstanding  3,785,570  
Net asset value, redemption price and offering price per share  $ 11.29  
Class R1 Shares:   
Net Assets  $ 12,839,772  
Shares outstanding  1,138,437  
Net asset value, redemption price and offering price per share  $ 11.28  
Net Assets consist of:   
       Aggregate paid in capital  $ 49,580,377  
       Unrealized appreciation of investments and foreign currency transactions  8,765,378  
       Undistributed net investment income  921,670  
       Accumulated net realized loss  (3,672,825 ) 
  $ 55,594,600  

See Notes to Financial Statements

8


Worldwide Bond Fund

Statement of Operations
Six Months Ended June 30, 2006 (unaudited)

Income (Note 1):     
Interest income    $ 1,400,887  
Expenses:     
Management (Note 2)  $ 277,914    
Insurance  22,774    
Reports to shareholders  10,679    
Trustees’ fees and expenses  8,929    
Custodian  7,911    
Transfer agent - Initial Class Shares  6,582    
Transfer agent - Class R1 Shares  6,046    
Professional fees  1,090    
Other  4,766    
       Total expenses  346,691    
Expenses assumed by the Adviser (Note 2)  (12,390 )   
       Net expenses    334,301  
Net investment income    1,066,586  
Realized and Unrealized Gain (Loss) on Investments (Note 3):     
Realized gain from security transactions    218,772  
Realized loss from foreign currency transactions    (136,257 ) 
Change in unrealized appreciation of investments    (61,175 ) 
Change in unrealized appreciation of foreign denominated assets and liabilities    57,597  
 
Net realized and unrealized gain on investments    78,937  
 
Net Increase in Net Assets Resulting from Operations    $ 1,145,523  

See Notes to Financial Statements

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Worldwide Bond Fund

Statements of Changes in Net Assets

 
Six Months Ended
 
Year Ended
 
 
June 30,
December 31,
 
 
2006
2005
 
 
 
(unaudited)
   
Change in Net Assets from:     
Operations:     
   Net investment income  $ 1,066,586   $ 2,477,806  
   Realized gain from security transactions  218,772   45,381  
   Realized gain (loss) from foreign currency transactions  (136,257 )  2,147,882  
   Change in unrealized appreciation of investments  (61,175 )  (6,628,320 ) 
   Change in unrealized appreciation of forward foreign denominated assets and liabilities  57,597   (178,960 ) 
 
 
   Net increase (decrease) in net assets resulting from operations  1,145,523   (2,136,211 ) 
 
 
Distributions to shareholders from:     
   Net investment income     
       Initial Class Shares  (3,707,444 )  (4,381,128 ) 
       Class R1 Shares  (905,458 )  (622,970 ) 
 
 
           Total distributions  (4,612,902 )  (5,004,098 ) 
 
 
Capital share transactions*:     
   Proceeds from sales of shares     
       Initial Class Shares  3,382,493   5,428,790  
       Class R1 Shares  3,011,141   5,300,909  
 
 
  6,393,634   10,729,699  
 
 
   Reinvestment of distributions     
      Initial Class Shares  3,707,444   4,381,128  
      Class R1 Shares  905,458   622,970  
 
 
  4,612,902   5,004,098  
 
 
   Cost of shares reacquired     
      Initial Class Shares  (7,885,913 )  (21,607,683 ) 
      Class R1 Shares  (1,299,595 )  (2,592,703 ) 
      Redemption fees  1,697   1,621  
 
 
  (9,183,811 )  (24,198,765 ) 
 
 
   Net increase (decrease) in net assets resulting from capital share transactions  1,822,725   (8,464,968 ) 
 
 
Total decrease in net assets  (1,644,654 )  (15,605,277 ) 
Net Assets:     
   Beginning of year  57,239,254   72,844,531  
 
 
   End of period (including accumulated net investment income of $921,670     
      and $4,604,243, respectively)  $ 55,594,600   $ 57,239,254  
 
 
* Shares of Beneficial Interest Issued and Reacquired (unlimited number of $.001 par     
   value shares authorized):-     
   Initial Class Shares:     
   Shares sold  302,254   439,213  
      Reinvestment of distributions  331,317   358,521  
      Shares reacquired  (699,869 )  (1,772,387 ) 
 
 
          Net decrease  (66,298 )  (974,653 ) 
 
 
   Class R1 Shares:     
       Shares sold  267,341   431,751  
       Reinvestment of distributions  80,989   50,979  
       Shares reacquired  (115,776 )  (213,806 ) 
 
 
           Net increase  232,554   268,924  
 
 
 
 

See Notes to Financial Statements

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Worldwide Bond Fund

Financial Highlights
For a share outstanding throughout each period:
 
Initial Class Shares
   
Class R1 Shares
 
 
                           
For the
 
                                 
Period
 
 
Six Months
                       
Six Months
May 1, 2004*
 
 
Ended
   
Year Ended December 31,
   
Ended
Year Ended
through
 
June 30,
June 30,
December 31,
December 31,
 
2006
   
2005
2004
 
2003
2002
 
2001
   
2006
2005
 
2004
 
 
 
 
 
 
 
 
(unaudited)
                       
(unaudited)
       
Net Asset Value,                           
         
   Beginning of Period  $  12.03     $ 13.33     $ 13.31     $ 11.46   $  9.42     $ 10.37     $
12.02
    $ 13.33     $ 11.82  
 
 
 
 
 
 
Income (Loss) From                           
         
    Investment Operations:                           
         
    Net Investment Income    0.24     0.58     0.64     0.53     0.35     0.57    
0.24
    0.76     0.18  
    Net Realized and Unrealized                           
         
    Gain (Loss) on Investments    — (c)   (0.97 )    0.48     1.52     1.69     (1.08 )   
—
(c)   (1.16 )    1.33  
 
 
 
 
 
 
 
 
 
Total from Investment Operations    0.24     (0.39 )    1.12     2.05     2.04     (0.51 )   
0.24
    (0.40 )    1.51  
 
 
 
 
 
 
 
 
 
Less Distributions from:                           
         
    Net Investment Income    (0.98 )    (0.91 )    (1.10 )    (0.20 )    —     (0.44 )   
(0.98
)    (0.91 )    —  
 
 
 
 
 
 
 
 
 
Total Distributions    (0.98 )    (0.91 )    (1.10 )    (0.20 )    —     (0.44 )   
(0.98
)    (0.91 )    —  
 
 
 
 
 
 
 
 
 
Redemption fees    — (c)  
—
(c)  
—
(c)   —     —     —    
—
(c)   — (c)   — (c)
 
 
 
 
 
 
 
 
 
Net Asset Value, End of Period  $  11.29     $ 12.03     $ 13.33     $ 13.31   $  11.46     $ 9.42     $
11.28
    $ 12.02     $ 13.33  
 
 
 
 
 
 
 
 
 
Total Return (a)    2.05 %    (3.03 )%    9.15 %    18.16 %    21.66 %    (5.11 )%   
2.05
%    (3.11 )%    12.77 % 
Ratios/Supplementary Data                           
         
Net Assets, End of Period (000)  $ 42,755     $ 46,350     $ 64,353     $ 85,385     $ 95,040     $ 52,127     $
12,840
    $ 10,889     $ 8,492  
Ratio of Gross Expenses                           
         
    to Average Net Assets    1.23
%(d)
     1.29 %    1.27 %    1.21 %    1.24 %    1.24 %   
1.30%(d)
    1.38 %    1.59%(d)  
Ratio of Net Expenses   
                     
         
    to Average Net Assets (b)    1.19
%(d)
     1.29 %    1.27 %    1.21 %    1.24 %    1.24 %   
1.24%(d)
    1.38 %    1.33%(d)  
Ratio of Net Investment Income   
                     
         
    to Average Net Assets    3.85
%(d)
     3.67 %    3.96 %    3.58 %    4.06 %    4.62 %   
3.80%(d)
    3.63 %    3.89%(d)  
Portfolio Turnover Rate    10 %    16 %    0 %    6 %    18 %    22 %   
10
%    16 %    0 % 

(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 any dis- tributions at net asset value on the distribution 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 distributions or the redemption of Fund shares.
 
(b) Excluding interest expense, the ratio of net expenses to average net assets would be 1.19%, 1.21% and 1.19% for the Initial Class Shares for the years ended December 31, 2003, 2002 and 2001. The ratio for all other periods shown would be unchanged if any interest expense incurred during those periods were excluded.
 
(c) Amount represents less than $0.01 per share
 
(d) Annualized
   
* Inception date of Class R1 Shares
 

See Notes to Financial Statements

11


Worldwide Bond 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 Worldwide Bond Fund (the “Fund”) is a non-diversified series of the Trust and seeks high total return-income plus capital appreciation-by investing globally, primarily in a variety of debt securities. 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 Fund in the preparation of its financial statements. The policies are in conformity with U.S. generally accepted accounting principles. The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts in the financial statements. Actual results could differ from those estimates.

A. Security Valuation—Securities traded on national exchanges or on the NASDAQ National Market System are valued at the last sales price as reported at the close of each business day. Securities traded on the NASDAQ Stock Market are valued at the NASDAQ official closing 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 for which market values are not readily available, or whose values have been affected by events occurring before the Fund’s pricing time (4:00 p.m. Eastern Time) but after the close of the securities’ primary market, are valued using methods approved by the Board of Trustees. 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 of an investment may differ materially from the value presented on the Schedule of Portfolio Investments. Short-term obligations purchased with more than sixty days remaining to maturity are valued at market value. Short-term obligations purchased with sixty days or less to maturity are valued at amortized cost, which with accrued interest approximates market value. Futures are valued using the closing price reported at the close of the respective exchange. Forward foreign currency contracts are valued at the spot currency rate plus an amount (“points”) which reflects the differences in interest rates between the U.S. and foreign markets. Securities for which quotations are not available are stated at fair value as determined by a Pricing Committee of the Adviser appointed by the Board of Trustees. Certain factors such as economic conditions, political events, market trends and security specific information are used to determine the fair value for these securities.

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 as of the close of each business day. Purchases and sales of investments are translated at the exchange rates prevailing when such investments were acquired or sold. Income and expenses are translated at the exchange rates prevailing when accrued. The portion of realized and unrealized gains and losses on investments that results from fluctuations in foreign currency exchange rates is not separately disclosed. Recognized gains or losses attributable to foreign currency fluctuations on foreign currency denominated assets, other than investments, and liabilities are recorded as net realized gains and losses from foreign currency transactions.

D. Distributions to Shareholders—Distributions to shareholders from net investment income and realized gains, if any, are recorded on the ex-dividend date. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from such amounts determined in accordance with U.S. generally accepted accounting principles.

E. Other—Security transactions are accounted for on trade date. Realized gains and losses are calculated on the identified cost basis. Interest income, including amortization on premiums and discounts, is accrued as earned. Estimated foreign taxes that are expected to be withheld from proceeds at the sale of certain foreign investments are accrued by the Fund and decrease the unrealized gain on investments.

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.

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 1.00% on the next $250 million and 0.70 of 1.00% on the excess over $750 million. The Adviser agreed to assume expenses exceeding 1.10% of average daily net assets except for 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 $12,390. 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 proceeds from sales of securities, other than U.S. government securities and short-term obligations, aggregated $5,248,200 and $5,011,016, respectively.

The identified cost of investments owned at June 30, 2006 was $45,878,894 and net unrealized appreciation aggregated $8,734,455 of which $8,869,701 related to appreciated securities and $135,246 related to the depreciated securities.

12


Worldwide Bond Fund

Notes To Financial Statements (unaudited) (continued)

Note 4—Income Taxes—The tax character of distributions paid to shareholders during the six months ended June 30, 2006 and the year ended December 31, 2005 consisted of ordinary income of $4,612,902 and $5,004,098, respectively.

At December 31, 2005, the Fund had a capital loss carryforward of $3,882,361 available, $599,025 expiring December 31, 2008; $2,541,134 expiring December 31, 2009; and $742,202 expiring December 31, 2010.

Note 5—Concentration of Risk—The Fund invests in foreign securities. Investments in foreign securities may involve a greater degree of risk than investments in domestic securities due to political, economic or social instability. Foreign investments may also be subject to foreign taxes and settlement delays. Since the Fund may have significant investments in foreign debt securities it may be subject to greater credit and interest risks and greater currency fluctuations than portfolios with significant investments in domestic debt securities.

At June 30, 2006, the aggregate shareholder accounts of two insurance companies own approximately 84% and 13% of the Initial Class shares and one insurance company owns approximately 99% of the Class R1 shares.

Note 6—Forward Foreign Currency Contracts—The Fund may buy and sell forward foreign currency contracts to settle purchases and sales of foreign denominated securities. In addition, the Fund may enter into forward foreign currency contracts to hedge foreign denominated assets. Realized gains and losses from forward foreign currency contracts are included in realized gain (loss) from foreign currency transactions 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 outstanding forward foreign currency contracts.

Note 7—Trustee Deferred Compensation Plan—The Trust established a Deferred Compensation Plan (the “Plan”) for Trustees. Commencing January 1, 1996, the Trustees can elect to defer receipt of their Trustee fees until retirement, disability or termination from the board. The Fund’s contributions to the Plan are limited to the amount of fees earned by the participating Trustees. The fees otherwise payable to the participating Trustees are invested in shares of the Van Eck Funds as directed by the Trustees and are reflected in the accompanying Statement of Assets and Liabilities.

Note 8—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, 2006, there were no borrowings by the Fund under the Facility.

Note 9—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 10—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.

13


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 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

14


Van Eck Worldwide Insurance Trust

Approval of Advisory Agreements (continued)

that are performing investment 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

15


Van Eck Worldwide Insurance Trust

Approval of Advisory Agreements (continued)

Funds. In addition, the Board concluded that the 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,

16


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.

17


Van Eck Worldwide Insurance Trust
Worldwide Bond 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  4,221,433.416    88.917 %    89.598 % 
Withhold  490,113.043    10.323 %    10.402 % 
TOTAL  4,711,546.459    99.240 %    100.000 % 
 
Jon Lukomnik           
Affirmative  4,306,794.704    90.715 %    91.409 % 
Withhold  404,751.755    8.525 %    8.591 % 
TOTAL  4,711,546.459    99.240 %    100.000 % 
 
David J. Olderman         
Affirmative  4,306,794.704    90.715 %    91.409 % 
Withhold  404,751.755    8.525 %    8.591 % 
TOTAL  4,711,546.459    99.240 %    100.000 % 
 
Ralph F. Peters           
Affirmative  4,221,433.416    88.917 %    89.598 % 
Withhold  490,113.043    10.323 %    10.402 % 
TOTAL  4,711,546.459    99.240 %    100.000 % 
 
Wayne H. Shaner           
Affirmative  4,306,794.704    90.715 %    91.409 % 
Withhold  404,751.755    8.525 %    8.591 % 
TOTAL  4,711,546.459    99.240 %    100.000 % 
 
R. Alastair Short           
Affirmative  4,306,794.704    90.715 %    91.409 % 
Withhold  404,751.755    8.525 %    8.591 % 
TOTAL  4,711,546.459    99.240 %    100.000 % 
 
Richard D. Stamberger         
Affirmative  4,306,794.704    90.715 %    91.409 % 
Withhold  404,751.755    8.525 %    8.591 % 
TOTAL  4,711,546.459    99.240 %    100.000 % 

18


Van Eck Worldwide Insurance Trust
Worldwide Bond 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  4,342,103.023    91.458 %    92.159 % 
Against  349,220.992    7.356 %    7.412 % 
Abstain  20,222.444    .426 %    .429 % 
TOTAL  4,711,546.459    99.240 %    100.000 % 
 
(2B) Underwriting         
Affirmative  4,344,763.951    91.514 %    92.215 % 
Against  349,220.992    7.356 %    7.412 % 
Abstain  17,561.516    .370 %    .373 % 
TOTAL  4,711,546.459    99.240 %    100.000 % 
 
(2C) Lending           
Affirmative  4,342,103.023    91.458 %    92.159 % 
Against  349,220.992    7.356 %    7.412 % 
Abstain  20,222.444    .426 %    .429 % 
TOTAL  4,711,546.459    99.240 %    100.000 % 
 
(2D) Senior securities         
Affirmative  4,297,612.054    91.521 %    91.214 % 
Against  396,372.889    8.349 %    8.413 % 
Abstain  17,561.516    .370 %    .373 % 
TOTAL  4,711,546.459    99.240 %    100.000 % 
 
(2E) Real estate           
Affirmative  4,344,763.951    91.514 %    92.215 % 
Against  349,220.992    7.356 %    7.412 % 
Abstain  17,561.516    .370 %    .373 % 
TOTAL  4,711,546.459    99.240 %    100.000 % 
 
(2F) Real estate limited partnerships, oil, gas, and minerals      
Affirmative  4,344,763.951    91.514 %    92.215 % 
Against  349,220.992    7.356 %    7.412 % 
Abstain  17,561.516    .370 %    .373 % 
TOTAL  4,711,546.459    99.240 %    100.000 % 

19


Van Eck Worldwide Insurance Trust
Worldwide Bond Fund
           
     
% of Outstanding
% of Shares
  No. of Shares   
Shares
Present
 
(2G) Investing for the purposes of exercising control      
Affirmative  4,307,070.416    90.720 %    91.415 % 
Against  386,914.527    8.150 %    8.212 % 
Abstain  17,561.516    .370 %    .373 % 
TOTAL  4,711,546.459    99.240 %    100.000 % 
 
(2H) Commodities         
Affirmative  4,302,262.918    90.619 %    91.313 % 
Against  391,722.025    8.251 %    8.314 % 
Abstain  17,561.516    .370 %    .373 % 
TOTAL  4,711,546.459    99.240 %    100.000 % 
 
(2I) Concentration Affirmative         
Affirmative  4,257,771.949    89.682 %    90.369 % 
Against  436,212.994    9.188 %    9.258 % 
Abstain  17,561.516    .370 %    .373 % 
TOTAL  4,711,546.459    99.240 %    100.000 % 

20




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 Bond 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 Bond 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 BOND FUND

By (Signature and Title) /s/ Bruce J. Smith, SVP and CFO
                         -------------------------------
Date August 28, 2006
     ---------------

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 28, 2006
     ---------------

By (Signature and Title)  /s/ Bruce J. Smith, CFO
                        ---------------------------

Date August 28, 2006
     ---------------