N-CSRS/A 1 c43570_ncsrsa.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 REAL ESTATE 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 REAL ESTATE FUND

 

 

 

 

 


 

 

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

Worldwide Real Estate Fund

Dear Shareholder:

We are pleased to report that the Initial Class shares of the Van Eck Worldwide Real Estate Fund gained 12.42% for the six months ended June 30, 2006. The Fund handily outpaced the broader stock market’s semi-annual total return of 2.71%, as measured by the S&P 500 Index1, and closely tracked the 12.48% total return posed by the benchmark Citigroup World Property Index.2 This semi-annual period now marks six and one-half consecutive calendar years in which real estate investments outperformed the general stock market. Real estate investments once again demonstrated that they can provide attractive diversification benefits to an investment portfolio, especially given their low correlation to more traditional equities. It is also noteworthy that, in contrast to 2005, domestic real estate companies outperformed global real estate investments, as illustrated by the 13.47% gain of the Morgan Stanley Capital International (MSCI) US REIT Index.3

Global demand for real estate property companies and REITs* has grown substantially in recent years, given that they are one of the few ways to invest directly in commercial real estate. In addition to providing opportunities for growth, they offer attractive income potential and are generally more liquid than direct investments in property. The Van Eck Worldwide Real Estate Fund takes a global approach to real estate investing. At the end of June 2006, 48.5% of the Fund’s assets was invested outside of the U.S. As the Fund has international exposure, we are able to seek out the world’s most compelling real estate investments, which continue to expand. More than a dozen countries currently offer REITs or REIT-like structures, and we expect this number to rise. During the semi-annual period, the U.K. government announced that the U.K. would have a REIT structure in play for the first time at the start of 2007. India, through its Associated Chambers of Commerce and Industry of India (ASSOCHAM), has plans to introduce REITs over the near term as well.

Market and Economic Review

With the broader stock market’s lackluster showing during the first half of 2006, investors continued to embrace real estate investments during these months. European real estate stocks led for the period, followed by North American stocks, with U.S. stocks significantly outpacing Canadian companies. Asian real estate stocks had modestly negative returns for the six-month period, as Japan’s real estate market performance was muted by the Bank of Japan’s talk of higher interest rates. Still, Singapore, Hong Kong and New Zealand each produced double-digit positive results. Lured by strong relative performance and attractive dividend yields, net flows into the sector were positive for the semi-annual period. Throughout much of the first half of 2006, investors bid up higher quality REITs.

Real estate companies in general and REITs in particular benefited most during the six-month period from strong demand, brisk merger and acquisition activity and healthy fundamentals within the sector.

That said, the first half of 2006 was not without volatility, marked by a monthly zigzag of ups and downs. For example, while real estate companies generally produced positive results during the first calendar quarter, they struggled during the second quarter overall, as concerns of global liquidity potentially drying up kept returns in negative territory. The U.S. Federal Reserve Board 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 European Central Bank also raised interest rates multiple times, and the Bank of Japan took the first step to move away from its zero interest rate policy, removing quantitative easing. Given that interest rates and REIT stock prices have historically moved inversely, the ongoing tightening campaign by central banks was reason for concern. But it is a complex balance, as higher interest rates are also a sign that the economy is growing, and this usually translates into higher occupancy rates for commercial property owners.

Among the asset class’ sub-sectors, apartment, office and diversified REITs posted the strongest gains for the six-month period; health care and retail REITs lagged. U.S. real estate stocks headed up the global top performers list in the last two months of the period. Also, as the period ended, office vacancies in Tokyo fell to their lowest point since February 2001, as demand for space remained strong—a sign of the fundamental strength of the Japanese real estate market and the country’s economy. Within European real estate, France led the way followed by the U.K. and the Netherlands.

*Real estate investment trusts (REITs) are publicly traded companies with portfolios of commercial property that distribute most of their income to shareholders.

1

Worldwide Real Estate Fund

Fund Review

In terms of its regional weightings, the Fund concentrated most of its investment in the U.S. for the six-month period (48.5% of Fund net assets as of June 30, 2006), followed by Japan (16.7%) and Canada (9.3%) . The North American real estate market in general and the U.S. real estate market especially benefited from strong industry consolidation, though at lower premiums compared to past years, indicating, in our view, less undervaluation. While the Fund’s overweighted position in Japanese real estate stocks detracted from relative performance during the period, fundamentally, little changed. Japanese real estate stocks had experienced significant strength in the last half of 2005 and were due to consolidate some of these gains with profit-taking. Further cooling Japan’s real estate market were expectations of the end of the Bank of Japan’s zero interest rate policy. Also hurting the Fund’s relative performance somewhat was an underweighted allocation to the strongly-performing U.K. real estate market (3.1% of Fund net assets as of June 30). On the other hand, a significantly underweighted exposure to Hong Kong real estate equities contributed positively to the Fund’s relative results (3.9% of Fund net assets as of June 30). Finally, throughout the period, the Fund maintained a slightly overweighted position in Spanish real estate equities (3.7% of Fund net assets as of June 30), which for the most part, helped the Fund’s performance, as Spain continued to benefit from industry consolidation.

On an individual stock basis, one of the top contributors to the Fund’s performance for the period was U.S. hotel & motel company Lodgian (5.2% of Fund net assets at June 30, +32.8% for the six months ended June 30), which produced strong results as hotel fundamentals remained strong. For example, there has been little new construction among U.S. hotels along with better room occupancy and revenue per room. Another strong performer for the Fund during the semi-annual period was SL Green Realty (2.4% of Fund net assets at June 30). This office property REIT was up 43.3% for the six months ended June 30 on continued strength in the New York City office market. IVG Immobilien (2.0% of Fund net assets at June 30, +45.9% for the six months ended June 30), a German real estate management and services company, further contributed to the Fund’s results, benefiting from the bullish European real estate market overall.

Of course, there were disappointments as well. Detracting from the Fund’s relative results were Canadian private timberland owner Timberwest Forest Corp. (2.2% of Fund net assets at June 30; -3.0% for the six months ended June 30), Canadian apartment buildings and manufactured home community developer Killam Properties (2.9% of Fund net assets at June 30; -4.2% for the six months ended June 30) and U.S. regional mall REIT General Growth Properties (1.9% of Fund net assets at June 30; -4.1% for the six months ended June 30). Each of these three holdings saw their share price decline upon lower than anticipated earnings and/or funds from operations.

During the semi-annual period, we established a position in Multiplex Group upon weakness in the stock (5.3% of Fund net assets at June 30). Problems with its construction business made the Australian integrated property company inexpensive relative to the underlying assets in the company’s property division, thereby making it attractive. Multiplex announced delays to the Wembley Stadium project, which will be the world’s most expensive sports ground upon its completion. We also added U.S. mortgage finance REIT New Century Financial Corp. (4.1% of Fund net assets at June 30) and U.S. mortgage-backed securities REIT Annaly Mortgage Management (2.5% of Fund net assets at June 30) to the Fund’s portfolio during the period, as we believe these holdings should benefit from the Federal Reserve Board nearing an end to its current interest rate tightening cycle. We sold the Fund’s position in U.S. hotel REIT MeriStar Hospitality, as it was bought by the Blackstone Group during the period.

Within its allocation to U.S. real estate companies, the Fund had significant exposure to the hotel sub-sector at the end of June 2006. The Fund had more modest allocations to the regional mall and community shopping center sub-sectors and rather neutral weightings in the office and apartment sub-sectors at the end of the period. That said, it is important to remember that as a diversified portfolio of global real estate securities, the Van Eck Worldwide Real Estate Fund is positioned to move into what it believes are the most attractive markets as they emerge, while attempting to diversify against adverse conditions in any single real estate market. Though the Fund remains concentrated in North American real estate companies, we continue

2

Worldwide Real Estate Fund

to seek favorable real estate market trends worldwide, ranging from short-term cyclical opportunities to broader long-term trends.

* * *

Slightly cooling economies and higher interest rates somewhat dampen our short-term view for real estate. Although industry consolidation continues, global valuations are less attractive than they were at the start of 2006, and generally speaking, capitalization rates have not risen with interest rates, thereby reducing the attractiveness of investments. That said, individual real estate companies continue to offer good opportunity—both in North America and globally. Not long ago, real estate was thought of as a local investment. Today, real estate has become a truly global investment sector, with business models, tax-advantaged corporate structures, and converging real estate and property stock valuations making international real estate investment activity a reality. The evolutionary speed of the global real estate market has really been quite remarkable. The U.K. and Hong Kong have had established public property sectors for quite some time, but even the U.S. real estate investment market, which currently represents approximately 35% of the world’s listed property market capitalization, only went national in the early 1990s, as the REIT structure expanded. With strong industry consolidation and merger & acquisition activity ongoing within the sector, globally owned, locally operated real estate may well be the trend within the real estate investment market during the second half of this decade.

Real estate investing can be risky by definition, and the Fund takes on additional risk by investing in real estate companies in emerging markets. If certain investment vehicles fail, the Fund may end up holding actual real estate in settlement of investment claims, and this property may be hard to sell. In addition, the Fund is subject to all the risks associated with companies in the real estate industry such as declines in property values, adverse economic conditions, overbuilding and competition. The Fund is also subject to the risks associated with investment in junk bonds. The Fund may engage in active and frequent trading to achieve its investment objectives. As a result, the Fund may suffer increased transaction costs that may affect performance.

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 stocks than a diversified fund, and is thus also subject to the nondiversification risk. A large loss in an individual stock 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 Real Estate Fund, and we look forward to helping you meet your investment goals in the future.

Samuel R. Halpert
Investment Team Member

July 24, 2006

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. Performance information reflects current temporary waivers of expenses and/or fees. Had the Fund incurred all expenses, investment returns would have been reduced. 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.

3

Worldwide Real Estate Fund

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 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 S&P (Standard & Poor’s) 500 Index consists of 500 widely held common stocks, covering four broad sectors (industrials, utilities, financial and transportation). It is a market value-weighted index (stock price times shares outstanding), with each stock affecting the Index in proportion to its market value. Construction of the S&P 500 Index proceeds from industry group to the whole. Since some industries are characterized by companies of relatively small stock capitalization, the Index is not comprised of the 500 largest companies on the New York Stock Exchange. This Index, calculated by Standard & Poor’s, is a total return index with dividends reinvested.

2 The Citigroup World Property Index is made up of nearly 400 real estate companies in approximately 20 countries, weighted according to each country’s total “float” (share total) of companies eligible for the Index.

3 The Morgan Stanley Capital International (MSCI) US REIT Index is calculated with dividends reinvested on a daily basis. The Index is a total return index of the most actively traded REITs in the U.S., and is designed to be a measure of real estate equity performance.

4

Worldwide Real Estate Fund

Geographical Weightings*
as of June 30, 2006 (unaudited)
Sector Breakdown*
as of June 30, 2006 (unaudited)
Diversified    36.7 % 
Apartments    12.4 % 
Hotels and Motels    11.5 % 
Office    10.9 % 
Regional Malls    6.0 % 
Industrial    2.7 % 
Forest Products    2.2 % 
Storage    1.8 % 
Healthcare    1.0 % 
Land    0.9 % 
Other    10.9 % 
Cash/Equivalents Plus     
Other Assets Less Liabilities    3.0 % 

 

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

5

Worldwide Real Estate Fund
Top Ten Equity Holdings as of June 30, 2006* (unaudited)

Multiplex Group
(Australia, 5.3%)

Multiplex Group is an integrated property group with operations in construction, property development, facilities management and investment management in Australia and New Zealand. The group also holds a portfolio of investment properties encompassing retail and commercial properties.

Lodgian, Inc.
(U.S., 5.2%)

Lodgian owns and operates full and mid-priced hotels in the United States and Canada. The company operates hotels under franchises such as Holiday Inn, Marriott, Hilton and Crowne Plaza.

Mitsubishi Estate Co. Ltd.
(Japan, 5.0%)

Mitsubishi Estate invests in real estate properties in Japan and the United States. The company leases, manages and develops commercial buildings in central Tokyo. Mitsubishi Estate also develops and sells residential properties and parking lots and manages recreational facilities including golf and tennis clubs.

Mitsui Fudosan Co. Ltd.
(Japan, 4.9%)

Mitsui Fudosan provides overall real estate services, such as leasing, subdivision, construction, sales and maintenance of office buildings and residential housing. The company also manufactures building materials, operates commercial facilities, including hotels and golf courses, and provides financial services.

Sumitomo Realty & Development Co. Ltd.
(Japan, 4.3%)

Sumitomo Realty & Development develops, manages, and sells houses and condominiums. The company also develops and manages real estate in overseas markets. Sumitomo undertakes infrastructure projects, manages real estate properties, provides financing services to its customers and operates fitness clubs and restaurants.

New Century Financial Corp.
(U.S., 4.1%)

New Century Financial is a full-service mortgage finance company that provides first and second mortgage products to borrowers nationwide through its operating subsidiaries.

Mills Corporation
(U.S., 4.1%)

The Mills Corporation owns, develops, leases, manages, and markets a portfolio of properties consisting of super-regional retail and entertainment-oriented centers under the Mills and Block names. Mills also owns community shopping centers.

Post Properties, Inc.
(U.S., 3.9%)

Post Properties develops and operates upscale multi-family apartment communities in the Southeastern and Southwestern United States. The company operates as a self-administered and self-managed real estate investment trust, whose primary business consists of developing and managing Post brand-name apartment communities for its own account.

Boston Properties, Inc.
(U.S., 3.5%)

Boston Properties develops, redevelops, acquires, manages, operates and leases office, industrial and hotel properties. The company has a significant presence in the Massachusetts, Washington, D.C., California, Maryland, New Jersey and Virginia markets.

Denny’s Corp.
(U.S., 3.2%)

Denny’s Corp. is a full-service family restaurant chain, operating directly and through franchisees. The company’s restaurants operate under the Denny’s name in the United States, Canada, Costa Rica, Guam, Mexico, New Zealand and Puerto Rico.

*Portfolio is subject to change.
Company descriptions courtesy of Bloomberg.com.

6

Worldwide Real Estate 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 
$1,124.20 
$5.58 
  Hypothetical (5% return before expenses)  $1,000.00 
$1,019.54 
$5.31 
Class R1  Actual  $1,000.00 
$1,123.70 
$5.69 
  Hypothetical (5% return before expenses)  $1,000.00 
$1,019.44 
$5.41 

*      Expenses are equal to the Fund’s annualized expense ratio (for the six months ended June 30, 2006) of 1.06% on the Initial Class shares and 1.08% on the Class R1 shares, multiplied by the average account value over the period, multiplied by 181 divided by 365 (to reflect the one-half-year period).
 

7

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

                   No. of 
     
Value 
Country      Shares        Securities   
(Note 1) 
Common Stocks:     
AUSTRALIA 8.0%   
61,324    Lend Lease Corp. Ltd. # 
$ 
637,017 
500,000    Multiplex Group #   
1,213,951 
       
1,850,968 
CANADA 9.3% 
 
22,250    Brookfield Properties Corp. (USD)   
715,783 
283,200    Killam Properties, Inc. † R   
672,292 
36,800    Mainstreet Equity Corp. †   
253,839 
39,400    Timberwest Forest Corp.   
    (Stapled Units) R   
506,133 
       
2,148,047 
FRANCE 0.9% 
 
1,250    Unibail #   
217,782 
GERMANY 2.0%     
15,000    IVG Immobilien AG #   
459,754 
HONG KONG 3.9%   
30,000    Cheung Kong Holdings Ltd. #   
325,479 
200,000    Hang Lung Properties Ltd. #   
359,229 
20,000    Sun Hung Kai Properties Ltd. #   
204,168 
       
888,876 
ITALY 0.9% 
 
200,000    Beni Stabili S.p.A. #   
203,366 
JAPAN 16.7%       
12,000    Goldcrest Co. Ltd. #   
589,478 
54,000    Mitsubishi Estate Co. Ltd. #   
1,149,193 
52,000    Mitsui Fudosan Co. Ltd. #   
1,130,109 
40,000    Sumitomo Realty &   
   
     Development Co. Ltd. # 
 
987,008 
       
3,855,788 
SPAIN 3.7% 
 
5,000    Inmobiliaria Colonial #   
397,034 
17,540    Inmobiliaria Urbis, S.A. #   
455,580 
       
852,614 
UNITED KINGDOM 3.1%   
16,160    British Land Co. PLC #   
376,907 
10,562    Land Securities Group PLC #   
349,992 
       
726,899 
         
                   No. of 
     
Value 
Country      Shares   
Securities 
 
(Note 1) 
UNITED STATES 48.5%     
45,000    Annaly Mortgage Management, Inc.  $  576,450 
10,000    Apartment Investment &     
   
     Management Co. (Class A) 
  434,500 
9,000    Boston Properties, Inc.    813,600 
200,000    Denny’s Corp. †    738,000 
30,000    Equity Inns, Inc    496,800 
10,000    General Growth Properties, Inc.    450,600 
20,300    Hilton Hotels Corp.    574,084 
3,061    Host Hotels & Resorts, Inc.    66,944 
10,000    Liberty Property Trust    442,000 
84,400    Lodgian, Inc †    1,202,699 
10,000    LTC Properties, Inc.    223,500 
11,500    Mesabi Trust    213,325 
35,000    Mills Corp.    936,250 
20,000    MVC Capital Inc.    268,800 
20,500    New Century Financial Corp.    937,875 
20,000    Post Properties, Inc.    906,800 
12,000    Prologis    625,440 
5,500    Public Storage, Inc.    417,450 
5,000    SL Green Realty Corp.    547,350 
5,000    Starwood Hotels & Resorts     
         Worldwide, Inc.     
   
     (Paired Certificate) 
  301,700 
        11,174,167 
Total Common Stocks 97.0%     
(Cost: $13,272,439)      22,378,261 

See Notes to Financial Statements

8

Worldwide Real Estate Fund
Schedule of Portfolio Investments
June 30, 2006 (unaudited) (continued)

Short-Term 
Date of 
  Interest     Value 
Obligations 2.6% 
Maturity 
  Rate     (Note 1) 
Repurchase Agreement (Note 10):         
Purchased on 6/30/06; maturity           
value $591,212 (with State Street         
Bank & Trust Co., collateralized           
by $620,000 Federal Home Loan         
Bank 4.375% due 9/17/10 with           
a value of $603,333)           
(Cost $591,000) 
7/3/06 
 
4.30%
  $ 591,000 
   
Total Investments 99.6%           
(Cost: $13,863,439)          22,969,261 
Other assets less           
   liabilities 0.4%          82,384 
   
Net Assets 100.0%         
$
23,051,645 
   

Summary of        Summary of     
Investments   
% of
  Investments   
% of
by Industry   
Net
  by Industry   
Net
(unaudited)    Assets   (unaudited)   
Assets
Apartments    12.4 %    Office    10.9 % 
Diversified    36.7 %    Other    10.9 % 
Forest Products    2.2 %    Regional Malls    6.0 % 
Healthcare    1.0 %    Storage    1.8 % 
Hotels and Motels    11.5 %    Short-Term Obligations    2.6 % 
Industrial    2.7 %    Other Assets Less     
Land    0.9 %       Liabilities    0.4 % 
            100.0 % 
 

† - Non-income producing 
# - Indicates a fair valued security which has not been valued using an independent quote, but has been valued pursuant to guidelines 
   established by the Board of Trustees. The aggregate value for fair valued securities is $9,056,047, which represented 39.3% of net 
   assets. 
R - All or a portion of the security is exempt from registration under Rule 144A of the Securities Act of 1933, as amended, or otherwise 
    restricted. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At 
    June 30, 2006, these securities are considered liquid and the market value amounted to $769,416 or 3.3% of total net assets. 
     
    Restricted securities held by the Fund are as follow: 

         Acquisition       
Acquisition 
     
Value as % of
  Security    Date   
Shares 
 
Cost 
  Value   
Net Assets
 
  Killam Properties, Inc.    11/11/03   
270,000 
 
$
 337,932   
$
640,956 
  2.8 % 
  Timberwest Forest Corp.    1/24/02   
10,000 
  69,361   
128,460 
  0.5 % 
                 
$
769,416 
  3.3 % 

See Notes to Financial Statements

9

Worldwide Real Estate Fund
Statement of Assets and Liabilities
June 30, 2006 (unaudited)
Assets:           
Investments, at value (cost $13,863,439) (Note 1)        $  22,969,261 
Cash          694 
Foreign currency (cost: $6,178)          6,178 
Receivables:           
 Capital shares sold          17,547 
 Dividends and interest          132,541 
Prepaid expenses and other assets          3,627 
           Total assets          23,129,848 
Liabilities:           
Payables:           
 Capital shares redeemed          15,195 
 Due to Adviser          48,866 
 Due to Trustees.          3,038 
 Accrued expenses          11,104 
           Total liabilities          78,203 
Net Assets        $  23,051,645 
Initial Class Shares:           
Net Assets        $  17,056,613 
Shares outstanding          1,054,772 
Net asset value, redemption and offering price per share        $ 16.17 
Class R1 Shares:           
Net Assets        $  5,995,032 
Shares outstanding          372,602 
Net asset value, redemption and offering price per share        $ 16.09 
Net Assets consist of:           
 Aggregate paid in capital        $  11,588,228 
 Unrealized appreciation of investments and foreign currency transactions          9,106,696 
 Undistributed net investment income          309,828 
 Undistributed net realized gain          2,046,893 
        $  23,051,645 
Statement of Operations           
Six Months Ended June 30, 2006 (unaudited)           
Income (Note 1):           
Dividends (net of foreign taxes withheld of $18,668)        $  336,583 
Interest          26,187 
           Total income          362,770 
Expenses:           
Management (Note 2)   
$
 113,685        
Transfer agency — Initial Class Shares    6,212        
Transfer agency — R1 Class Shares    6,082        
Custodian    5,846        
Other    267        
 
           Total expenses    132,092        
Expenses assumed by the Adviser (Note 2)    (10,910 )       
 
           Net expenses          121,182 
Net investment income          241,588 
Realized and Unrealized Gain on Investments (Note 3):           
Realized gain from security transactions          2,121,251 
Realized gain from foreign currency transactions.          840 
Change in unrealized appreciation of investments.          251,527 
Change in unrealized appreciation of foreign denominated assets and liabilities          844 
Net realized and unrealized gain on investments          2,374,462 
Net Increase in Net Assets Resulting from Operations        $  2,616,050 

See Notes to Financial Statements

10

Worldwide Real Estate 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   
$
 241,588    
$
 579,756  
   Realized gain from security transactions   
2,121,251    
6,327,714  
   Realized gain (loss) from foreign currency transactions   
840    
(5,419 ) 
   Change in unrealized appreciation of investments   
251,527    
(2,042,044 ) 
   Change in unrealized appreciation of foreign denominated assets and liabilities   
844    
(449 ) 
 
 
         Net increase in net assets resulting from operations   
2,616,050    
4,859,558  
 
 
Distributions to shareholders from:   
   
 
   Net investment income   
   
 
         Initial Class Shares   
(266,382 )   
(600,182 ) 
         Class R1 Shares   
(89,065 )   
(65,302 ) 
 
 
   
(355,447 )   
(665,484 ) 
 
 
   Net realized gains   
   
 
         Initial Class Shares   
(4,961,274 )   
(284,297 ) 
         Class R1 Shares   
(1,658,797 )   
(30,932 ) 
 
 
   
(6,620,071 )   
(315,229 ) 
 
 
   Total distributions   
(6,975,518 )   
(980,713 ) 
 
 
Capital share transactions*:   
   
 
   Proceeds from sales of shares   
   
 
         Initial Class Shares   
2,783,092    
5,811,403  
         Class R1 Shares   
910,281    
2,425,449  
 
 
   
3,693,373    
8,236,852  
 
 
   Reinvestment of distributions   
   
 
         Initial Class Shares   
5,227,656    
884,479  
         Class R1 Shares   
1,747,862    
96,234  
 
 
   
6,975,518    
980,713  
 
 
   Cost of shares reacquired   
   
 
         Initial Class Shares   
(4,180,821 )   
(21,476,519 ) 
         Class R1 Shares   
(766,841 )   
(1,022,297 ) 
         Reimbursement of transaction costs (Note 12)   
—    
13,585  
         Redemption fees   
163    
1,473  
 
 
   
(4,947,499 )   
(22,483,758 ) 
 
 
         Net increase (decrease) in net assets resulting from capital share transactions   
5,721,392    
(13,266,193 ) 
 
 
         Total increase (decrease) in net assets   
1,361,924    
(9,387,348 ) 
Net Assets:   
   
 
Beginning of year   
21,689,721    
31,077,069  
 
 
End of period (including undistributed net investment income of $309,828 and $422,847, respectively) . 
 
$
 23,051,645    
$
 21,689,721  
 
 
* Shares of Beneficial Interest Issued and Reaquired (unlimited number of $.001 par value   
   
 
   shares authorized):-   
   
 
   Initial Class Shares:   
   
 
   Shares sold   
173,712    
335,085  
         Reinvestment of distributions   
339,458    
53,122  
         Shares reacquired   
(251,325 )   
(1,181,477 ) 
 
 
         Net increase (decrease)   
261,845    
(793,270 ) 
 
 
   Class R1 Shares:   
   
 
         Shares sold   
55,142    
136,011  
         Reinvestment of distributions   
114,090    
5,801  
         Shares reacquired   
(48,149 )   
(54,967 ) 
 
 
         Net increase   
121,083    
86,845  
 
 

See Notes to Financial Statements

11

Worldwide Real Estate 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   
$
20.78    
$
17.75    
$
13.24    
$
10.07    
$
10.87    
$
10.62    
$
20.72    
$
17.70    
$
13.55  
 
 
 
 
 
 
 
 
 
Income (Loss) From                                     
   Investment Operations: 
                                   
   Net Investment Income 
  0.15     0.73     0.49     0.33     0.38     0.35     0.24     0.41     0.18  
   Net Realized and Unrealized 
                                   
          Gain (Loss) on Investments 
  2.09     2.86     4.24     3.06     (0.85 )    0.20     1.98     3.17     3.97  
 
 
 
 
 
 
 
 
 
Total from                                     
   Investment Operations 
  2.24     3.59     4.73     3.39     (0.47 )    0.55     2.22     3.58     4.15  
 
Less Distributions from:                                     
   Net Investment Income 
  (0.35 )    (0.38 )    (0.22 )    (0.22 )    (0.33 )    (0.30 )    (0.35 )    (0.38 )    —  
   Net Realized Gains    (6.50 )    (0.18 )    —     —     —     —     (6.50 )    (0.18 )    —  
 
 
 
 
 
 
 
 
 
Total Distributions    (6.85 )    (0.56 )    (0.22 )    (0.22 )    (0.33 )    (0.30 )    (6.85 )    (0.56 )    —  
 
 
 
 
 
 
 
 
 
Redemption fees    — (c)  
—
(c)  
—
(c)   —     —     —     — (c)   — (c)   — (c)
 
 
 
 
 
 
 
 
 
Net Asset Value, End of Period   
$
16.17    
$
20.78    
$
17.75    
$
13.24    
$
10.07    
$
10.87    
$
16.09    
$
20.72    
$
17.70  
 
 
 
 
 
 
 
 
 
Total Return (a)    12.42 %    21.01 %    36.21 %    34.50 %    (4.48 )%    5.34 %    12.37 %    21.01 %    30.63 % 
Ratios/Supplementary Data                                           
Net Assets,                                           
   End of Period (000)   
$
17,057
    $
16,479
     $
28,163
     $
19,344
     $
15,309
     $
13,947
     $ 5,995     $ 5,210     $ 2,915  
Ratio of Gross Expenses to                                           
   Average Net Assets 
  1.13 %(d)     1.36 %      1.45 %      1.49 %      1.48 %      1.62 %    1.24 %(d)   1.62 %    2.46 %(d)
Ratio of Net Expenses to                                           
   Average Net Assets (b) 
  1.06 %(d)     1.10 %      1.20 %      1.49 %      1.48 %      1.50 %    1.08 %(d)   1.10 %    1.10 %(d)
Ratio of Net Investment                                           
   Income to Average                                           
   Net Assets    2.13 %(d)     1.99 %      3.52 %      2.68 %      3.04 %      4.17 %    2.14 %(d)   2.23 %    4.01 %(d)
Portfolio Turnover Rate    16 %      22 %      29 %      19 %      139 %      74 %    16 %    22 %    29 % 

(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 distributions 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 1.46% for the Initial Class Shares for the year ended December 31, 2002. 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

12

Worldwide Real Estate 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 Real Estate Fund (the “Fund”) is a non-diversified fund of the Trust and seeks to maximize return by investing in equity securities of domestic and foreign companies that own significant real estate assets or that are principally engaged in the real estate industry. 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 effect the reported amounts in the financial statements. Actual results could differ from those estimates.

A. Security Valuation—Securities traded on national exchanges or traded on the NASDAQ National Market System are valued at the last sales 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. 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. Dividend income is recorded on the ex-dividend date. Dividends on foreign securities are recorded when the Funds are informed of such dividends. 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 Corp. (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% of the average daily net assets. The Adviser agreed to assume expenses exceeding 1.10% of the average daily net assets except for interest, taxes, brokerage commissions and extraordinary expenses for the period January 1, 2005 through April 30, 2007. For the six months ended June 30, 2006, the Adviser assumed expenses in the amount of $10,910. Certain of the officers and trustees of the Trust are officers, directors or stockholders of the Adviser and Van Eck Securities Corporation, the Distributor.

Note 3—Investments—For the six months ended June 30, 2006, purchases and sales of securities, other than U.S. government securities and short-term obligations, aggregated $3,490,353 and $4,538,762 respectively.

The identified cost of investments owned at June 30, 2006 was $13,863,439 and net unrealized appreciation aggregated $9,105,822 of which $9,434,149 related to appreciated securities and $328,327 related to depreciated securities.

13

Worldwide Real Estate Fund

Notes To Financial Statements (unaudited) (continued)

Note 4—Income Taxes—The tax character of distributions paid to shareholders were as follows:

   
During the Six 
 
During the 
   
Months Ended 
 
Year Ended 
   
June 30, 2006 
 
December 31, 2005 
          
Ordinary income   
$
870,794 
 
$
796,829 
Long term capital gains   
6,104,724 
 
183,884 
   Total   
$
6,975,518 
 
$
980,713 

Note 5—Concentration of Risk—The Fund may purchase securities on foreign exchanges. Securities of foreign issuers involve special risks and considerations not typically associated with investing in U.S. issuers. These risks include devaluation of currencies, less reliable information about issuers, different securities transaction clearance and settlement practices, and future adverse political and economic developments. These risks are heightened for investments in emerging market countries. Moreover, securities of many foreign issuers and their markets may be less liquid and their prices more volatile than those of comparable U.S. issuers.

At June 30, 2006, the aggregate shareholder accounts of two insurance companies own approximately 50% and 30% of the Initial Class shares and the aggregate shareholder accounts of one insurance company owns approximately 99% of the Class R1 shares.

Note 6—Warrants—The Fund may invest in warrants whose values are linked to indices or underlying instruments. The Fund may use these warrants to gain exposure to markets that might be difficult to invest in through conventional securities. Warrants may be more volatile than their linked indices or underlying instruments. Potential losses are limited to the amount of the original investment.

Note 7—Forward Foreign Currency Contracts—The Fund may buy or sell forward foreign currency contracts to settle purchases and sales of foreign denominated securities. The Fund may incur additional risk from investments in forward foreign currency contracts if the counterparty is unable to fulfill its obligations or there are unanticipated movements of the foreign currency relative to the U.S. dollar. Realized gains and losses from forward foreign currency contracts are included in realized gains and losses from foreign currency transactions on the Statement of Operations. At June 30, 2006, the Fund had no forward foreign currency contracts outstanding.

Note 8—Trustee Deferred Compensation Plan—The Trust established a Deferred Compensation Plan (the “Plan”) for Trustees. Commencing January 1, 1996, the Trustees can elect to defer receipt of their trustee fees until retirement, disability or termination from the Board of Trustees. The Fund’s contributions to the Plan are limited to the amount of fees earned by the participating Trustees. The fees otherwise payable to the participating Trustees are invested in shares of the Van Eck Funds as directed by the Trustees and are reflected in the accompanying Statement of Assets and Liabilities.

Note 9—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 10—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 repurchase agreement, 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 11—Regulatory Matters—In connection with their investigations of practices identified as “market timing” and “late trading” of mutual fund shares, the Office of the New York State Attorney General (“NYAG”) and the United States Securities and Exchange Commission (“SEC”) have requested and received information from the Adviser. The investigations are ongoing, and the Adviser is continuing to cooperate with such investigations. If it is determined that the Adviser or its affiliates engaged in improper or wrongful activity that caused a loss to a Fund, the Board of Trustees of the Funds will determine the amount of restitution that should be made to a Fund or its shareholders. At the present time, the amount of such restitution, if any, has not been determined.

In July 2004, the Adviser received a “Wells Notice” from the SEC in connection with the SEC’s investigation of market-timing activities. This Wells Notice informed the Adviser that the SEC staff is considering recommending that the SEC bring a civil or administrative action alleging violations of the U.S. securities laws against the Adviser and two of its senior officers.

There cannot be any assurance that if the SEC or NYAG were to assess sanctions against the Adviser, such sanctions would not materially and adversely affect the Adviser.

Note 12—Reimbursement to the Fund—In connection with a full redemption of its shares in the Fund by an insurance company during 2005, the Fund was reimbursed for the transaction costs of $13,585 incurred in selling securities to meet the redemption.

14

Van Eck Worldwide Insurance Trust

Worldwide Bond Fund

Worldwide Emerging Markets Fund

Worldwide Hard Assets Fund

Worldwide Real Estate Fund

Approval of Advisory Agreements

The Investment Company Act of 1940, as amended (the “1940 Act”), provides, in substance, that each investment advisory agreement between a Fund and its investment adviser will continue in effect from year to year only if its continuance is approved at least annually by the Board of Trustees (the “Board”), including by a vote of a majority of the Trustees who are not “interested persons” of the Funds (“Independent Trustees”), cast in person at a meeting called for the purpose of considering such approval.

In considering the renewal of the investment advisory agreements, the Board, comprised exclusively of Independent Trustees, reviewed and considered information that had been provided by Van Eck Associates Corporation, the Funds’ Adviser (the “Adviser”), throughout the year at regular Board meetings, as well as information furnished for the meetings of the Board held on June 13 and 14, 2006 to specifically consider the renewal of each Fund’s investment advisory agreement. This information included, among other things, the following:

  • Information about the overall organization of the Adviser and the Adviser’s short-term and long-term business plan with respect to its mutual fund operations;

  • The Adviser’s consolidated financial statements for the past 3 fiscal years;

  • A description of the advisory agreements with the Funds, their terms and the services provided under each agreement;

  • Descriptions of the qualifications, education and experience of the individual investment professionals whose responsibilities include portfolio management and investment research for the Funds, and information relating to their compensation and responsibilities with respect to managing other mutual funds and investment accounts;
  • Presentations by the Adviser’s key investment personnel with respect to the Adviser’s investment strategies and general investment outlook in relevant markets, and the resources available to support the implementation of such investment strategies;

  • An independently prepared report comparing the management fees and non- investment management expenses of each Fund during its fiscal year ended December 31, 2005 with those of (i) the universe of funds with a similar investment strategy, offered in connection with variable insurance products (the “Expense Universe”), and (ii) a sub-group of the Expense Universe consisting of funds of comparable size and fees and expense structure (the “Peer Group”);

  • An independently prepared report comparing each Fund’s annualized investment performance for the one- through five-year periods ended December 31, 2005 with those of (i) the universe of funds with a similar investment strategy, offered in connection with variable insurance products (the “Performance Universe”), (ii) its Peer Group, and (iii) appropriate benchmark indices as identified by an independent data provider;

  • An analysis of the profitability of the Adviser with respect to the services it provides to each Fund and the Van Eck complex of mutual funds as a whole;

  • Information regarding other accounts and investment vehicles managed by the Adviser, their investment strategy, the net assets under management in each such account and vehicle, and the individuals that are performing investment

15

Van Eck Worldwide Insurance Trust

Approval of Advisory Agreements (continued)

    management functions with respect to each such account and vehicle;

  • Information concerning the Adviser’s compliance program, the resources devoted to compliance efforts undertaken by the Adviser and its affiliates on behalf of the Funds, and reports regarding a variety of compliance-related issues;

  • Reports with respect to the Adviser’s brokerage practices, including the benefits received by the Adviser from research acquired with soft dollars; and

  • Other information provided by the Adviser in its response to a comprehensive questionnaire prepared by independent legal counsel on behalf of the Independent Trustees.

In considering whether to approve the investment advisory agreements, the Board evaluated the following factors: (1) the quality, nature, cost and character of the investment management as well as the administrative and other non-investment management services provided by the Adviser and its affiliates; (2) the nature, quality and extent of the services performed by the Adviser in interfacing with, and monitoring the services performed by, third parties, such as the Funds’ custodian, transfer agent, sub-accounting agent and independent auditors, and the Adviser’s commitment and efforts to review the quality and pricing of third party service providers to the Funds with a view to reducing non-management expenses of the Funds; (3) the terms of the advisory agreements and the reasonableness and appropriateness of the particular fee paid by each Fund for the services described therein; (4) the Adviser’s willingness to subsidize the operations of the Funds from time to time by means of waiving a portion of its management fees or paying expenses of the Funds; (5) the services, procedures and processes used to determine the value of Fund assets, and the actions taken to monitor and test the effectiveness of such services, procedures and processes; (6) the ongoing efforts of, and resources devoted by, the Adviser with respect to the development of a comprehensive compliance program and written compliance policies and procedures, and the implementation of recommendations of independent consultants with respect to a variety of compliance issues; (7) the responsiveness of the Adviser and its affiliated companies to inquiries from, and examinations by, regulatory agencies such as the SEC, the NASD and the office of the New York Attorney General (“NYAG”); (8) the Adviser’s record of compliance with its policies and procedures; and (9) the ability of the Adviser to attract and retain quality professional personnel to perform investment advisory and administrative services for the Funds.

The Board considered the fact that the Adviser has received a Wells Notice from the SEC in connection with on-going investigations concerning market timing and related matters. The Board determined that the Adviser continues to cooperate with the SEC, the NYAG and the Board in connection with these matters and that the Adviser has taken appropriate steps to implement policies and procedures reasonably designed to prevent harmful market timing activities by investors in the Funds. In addition, the Board concluded that the Adviser has acted in good faith in providing undertakings to the Board to make restitution of damages, if any, that may have resulted from any prior wrongful actions of the Adviser and that it would be appropriate to permit the SEC and the NYAG to bring to conclusion their pending regulatory investigations prior to the Board making any final determination of its own with respect to these same matters.

The Board considered the fact that the Adviser is managing other investment products and vehicles, including hedge funds and separate accounts, that invest in the same financial markets and are managed by the same investment professionals according to a similar investment strategy as certain of the Funds. The Board concluded that the management of these products contributes to the Adviser’s financial stability and is helpful to the Adviser in attracting and retaining quality portfolio management personnel for the Funds. In addition, the Board concluded that the

16

Van Eck Worldwide Insurance Trust

Approval of Advisory Agreements (continued)

Adviser has established appropriate procedures to monitor conflicts of interest involving the management of the Funds and the other products and for resolving any such conflicts of interest in a fair and equitable manner.

In evaluating the investment performance and fees and expenses of each Fund, the Board considered the specific factors set forth below. The Board concluded, with respect to each Fund, that the performance of the Fund is satisfactory, and that the management fee charged to, and the total expense ratio of, the Fund are reasonable. In reaching its conclusions the Board took specific note of the following information with respect to each Fund:

Worldwide Bond Fund

The Board noted that: (1) the Fund had outperformed its Performance Universe average for the annualized four-year period ended December 31, 2005; (2) the Adviser has agreed to waive from May 2006 through April 2007 a portion of its management fee such that the Fund’s overall expense ratio will be capped at 1.10%; and (3) the Fund’s expense ratio, while higher than the median for its Peer Group, is within the range of expense ratios for its Peer Group and is not unreasonable in view of the relatively small size of the Fund and the nature of the global investment strategy used to pursue the Fund’s objective.

Worldwide Emerging Markets Fund

The Board noted that: (1) the Fund had outperformed its Performance Universe average and its benchmark index for the annualized two- through five-year periods ended December 31, 2005; (2) the Adviser has agreed to waive, and will continue to waive through April 2007, a portion of its management fee; and (3) the Fund’s overall management fee and expense ratio, net of fee waivers, were lower than the median for its Peer Group.

Worldwide Hard Assets Fund

The Board noted that: (1) the Fund had outperformed its Performance Universe average for the annualized one- through five-year periods ended December 31, 2005 and was in the top quintile of its Performance Universe for the annualized one- through four-year periods ended December 31, 2005; (2) the Adviser has agreed to waive from May 2006 through April 2007 a portion of its management fee such that the Fund’s overall expense ratio will be capped at 1.20%; and (3) the Fund’s expense ratio is higher than the median for its Peer Group, but within the range of expense ratios for its Peer Group.

Worldwide Real Estate Fund

The Board noted that: (1) the Fund had outperformed its Performance Universe average, and was in the top quintile for its Performance Universe, for the annualized one- through three-year periods ended December 31, 2005; (2) the Adviser has agreed to waive, and will continue to waive through April 2007, a portion of its management fee; (3) the Fund’s overall management fee during 2005, net of fee waivers, was lower than the median for its Peer Group; and (4) the Fund’s expense ratio, net of fee waivers, was higher than the median for its Peer Group, but within the range of expense ratios for its Peer Group.

The Board considered the profits, if any, realized by the Adviser from managing the Funds, in light of the services rendered and the costs associated with providing such services, and concluded that the profits realized by the Adviser from managing the Funds are not excessive. In this regard, the Board also considered the extent to which the Adviser may realize economies of scale as each Fund grows, and whether each Fund’s fee levels reflect these economies of scale for the benefit of shareholders. The Board concluded that, with respect to Worldwide Bond Fund and Worldwide Hard Assets Fund, the advisory fee breakpoints in place will allow the Funds to share the benefits of economies of scale as they grow in a fair and equitable manner. The Board also concluded that neither of Worldwide Emerging Markets Fund nor the Worldwide Real Estate Fund currently has sufficient assets, or in the foreseeable future is likely to have sufficient assets, for the Adviser to realize material benefits from economies of scale,

17

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.

18

Van Eck Worldwide Insurance Trust
Worldwide Real Estate 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    1,013,715.488    97.418 %    97.895 % 
Withhold    21,792.684    2.094 %    2.105 % 
TOTAL    1,035,508,172    99.512 %    100.000 % 
 
Jon Lukomnik             
Affirmative    1,013,715.488    97.418 %    97.895 % 
Withhold    21,792.684    2.094 %    2.105 % 
TOTAL    1,035,508.172    99.512 %    100.000 % 
 
David J. Olderman         
Affirmative    1,013,715.488    97.418 %    97.895 % 
Withhold    21,792.684    2.094 %    2.105 % 
TOTAL    1,035,508.172    99.512 %    100.000 % 
 
Ralph F. Peters             
Affirmative    1,013,715.488    97.418 %    97.895 % 
Withhold    21,792.684    2.094 %    2.105 % 
TOTAL    1,035,508.172    99.512 %    100.000 % 
 
Wayne H. Shaner             
Affirmative    1,013,715.488    97.418 %    97.895 % 
Withhold    21,792.684    2.094 %    2.105 % 
TOTAL    1,035,508.172    99.512 %    100.000 % 
 
R. Alastair Short             
Affirmative    1,013,715.488    97.418 %    97.895 % 
Withhold    21,792.684    2.094 %    2.105 % 
TOTAL    1,035,508.172    99.512 %    100.000 % 
 
Richard D. Stamberger         
Affirmative    1,013,715.488    97.418 %    97.895 % 
Withhold    21,792.684    2.094 %    2.105 % 
TOTAL    1,035,508.172    99.512 %    100.000 % 

19

Van Eck Worldwide Insurance Trust
Worldwide Real Estate 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 
  959,551,525    92.212 %    92.665 % 
Against 
  22,065.244    2.121 %    2.131 % 
Abstain 
  53,891.403    5.179 %    5.204 % 
TOTAL 
  1,035,508.172    99.512 %    100.000 % 
     
(2B)       Underwriting 
       
Affirmative 
  959,551.525    92.212 %    92.665 % 
Against 
  22,065.244    2.121 %    2.131 % 
Abstain 
  53,891.403    5.179 %    5.204 % 
TOTAL 
  1,035,508.172    99.512 %    100.000 % 
     
(2C)       Lending 
           
Affirmative 
  959,551.525    92.212 %    92.665 % 
Against 
  22,065.244    2.121 %    2.131 % 
Abstain 
  53,891.403    5.179 %    5.204 % 
TOTAL 
  1,035,508.172    99.512 %    100.000 % 
     
(2D)       Senior securities 
       
Affirmative 
  959,551.525    92.212 %    92.665 % 
Against 
  22,065.244    2.121 %    2.131 % 
Abstain 
  53,891.403    5.179 %    5.204 % 
TOTAL 
  1,035,508.172    99.512 %    100.000 % 
     
(2E)       Real estate 
       
Affirmative 
  959,551.525    92.212 %    92.665 % 
Against 
  22,065.244    2.121 %    2.131 % 
Abstain 
  53,891.403    5.179 %    5.204 % 
TOTAL 
  1,035,508.172    99.512 %    100.000 % 
     
(2F)       Real estate limited partnerships, oil, gas, and minerals
 
Affirmative 
  959,551.525    92.212 %    92.665 % 
Against 
  22,065.244    2.121 %    2.131 % 
Abstain 
  53,891.403    5.179 %    5.204 % 
TOTAL 
  1,035,508.172    99.512 %    100.000 % 

20

Van Eck Worldwide Insurance Trust
Worldwide Real Estate Fund
       % of Outstanding  
% of Shares
 
No. of Shares 
  Shares   Present
     
(2G)       Investing for the purposes of exercising control
     
Affirmative 
  959,551.525    92.212 %    92.665 % 
Against 
  22,065.244    2.121 %    2.131 % 
Abstain 
  53,891.403    5.179 %    5.204 % 
TOTAL 
  1,035,508.172    99.512 %    100.000 % 
     
(2H)       Commodities 
       
Affirmative 
  957,571.491    92.022 %    92.474 % 
Against 
  24,045.278    2.311 %    2.322 % 
Abstain 
  53,891.403    5.179 %    5.204 % 
TOTAL 
  1,035,508.172    99.512 %    100.000 % 
     
(2I)       Concentration 
       
Affirmative 
  957,571.491    92.022 %    92.474 % 
Against 
  24,045.278    2.311 %    2.322 % 
Abstain 
  53,891.403    5.179 %    5.204 % 
TOTAL 
  1,035,508.172    99.512 %    100.000 % 

See Notes to Financial Statements

21


     
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 Real Estate 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
     Real Estate 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 REAL ESTATE FUND

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