Canadian World Fund Limited
TSX : CWF

Canadian World Fund Limited

March 03, 2010 12:49 ET

Canadian World Fund Limited Reports Audited 2009 Financial Results

TORONTO, CANADA--(Marketwire - March 3, 2010) - Canadian World Fund Limited (CWF) (TSX:CWF) had a net asset value per share (NAV) return for 2009 of 62.7%. By comparison, the return of the benchmark Morgan Stanley Capital International (MSCI) All Country World Index was 12.4%, expressed in Canadian dollar terms. For 2009, CWF's market return was 50.4%. Net asset value at December 31, 2009 was $33,550,000, an increase from $20,626,000 at the end of 2008. The corresponding NAVs at December 31, 2009 and December 31, 2008 were $4.67 and $2.87, respectively.

CWF's outperformance relative to the benchmark was largely due to a significant portfolio concentration in emerging markets, representing 33.4% of CWF's portfolio as at December 31, 2009. These markets were up strongly, as evidenced by the 49.1% return in the MSCI Emerging Markets Index, expressed in Canadian dollar terms. The recovery in world equity markets was largely driven by Brazil, Russia, India and China, where primary equity indices showed return of 108.5%, 96.4%, 62.7% and 54.6%, respectively over the year, also expressed in Canadian dollars. CWF has investments in all four of these countries. The partial recovery in commodity prices benefitted the Canadian market, with the S&P/TSX Composite Index up 35.1% on a total return basis. At December 31, CWF had a 31.1% weighting in Canada. A majority of the assets and operations of the Canadian investee companies are located outside of Canada.

CWF is a TSX-listed global equities fund that provides one of few opportunities for bottom-up investment in securities of publicly traded, primarily growth companies in a global portfolio.

FINANCIAL HIGHLIGHTS

(in thousands of dollars, except per share amounts)

  For the Year Ended  
  December 31,   December 31,  
  2009   2008  
         
Net investment loss (386 ) (551 )
Net gain (loss) on investments 13,354   (34,772 )
Increase (decrease) in net assets resulting from operations 12,968   (35,323 )
         
Increase (decrease)  in net assets resulting from operations – per share 1.80   (4.91 )
   
   
   
  As at
  December 31, December 31,
  2009 2008
     
Selected data (1)    
Net asset value 33,550 20,626
Net asset value per share 4.67 2.87
     
Selected data according to GAAP (1)    
Net assets 33,412 20,465
Net assets per share 4.65 2.85

(1) The Company calculates the net asset value and net asset value per share on the basis of the valuation principles set out in its annual information form. These valuation principles differ from the requirements of Canadian generally accepted accounting principles (GAAP), with the main difference relating to securities that are listed on a public stock exchange. While the Company generally values such securities based on the latest sale price, GAAP requires the use of the closing bid price. Accordingly, bid prices are used in determining net assets and net assets per share for purposes of the interim and annual financial statements.

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