Canadian World Fund Limited

Canadian World Fund Limited

February 23, 2011 14:50 ET

Canadian World Fund Limited Reports Audited 2010 Financial Results

TORONTO, CANADA--(Marketwire - Feb. 23, 2011) - Canadian World Fund Limited (CWF) (TSX:CWF) had a net asset value per share (NAV) return for 2010 of 29.3%. By comparison, the return of the benchmark Morgan Stanley Capital International All Country World Index (MSCI ACWI) was 4.9%, expressed in Canadian dollar terms. For 2010, CWF's market return was 20.7%. Net asset value at December 31, 2010 was $43,462,000, an increase from $33,550,000 at the end of 2009. The corresponding per share NAVs at December 31, 2010 and December 31, 2009 were $6.04 and $4.67, respectively.

Strong advances in concentrated holdings were the main reason for CWF's outperformance of the benchmark during 2010. In addition, CWF's investment portfolio, with a 26.1% weighting in Canadian companies at the end of 2010, had a much greater exposure to Canada than the benchmark. Among developed countries, Canada was one of the best performing markets during 2010, rising 17.6%.

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.

(in thousands of dollars, except per share amounts)
  For the Year Ended  
  December 31,   December 31,  
  2010   2009  
Net investment loss (520 ) (386 )
Net gain on investments 10,380   13,354  
Increase in net assets resulting from operations 9,860   12,968  
Increase in net assets resulting from operations – per share 1.37   1.80  
  As at  
  December 31,   December 31,  
  2010   2009  
Selected data (1)        
Net asset value 43,462   33,550  
Net asset value per share 6.04   4.67  
Selected data according to GAAP (1)        
Net assets 43,293   33,412  
Net assets per share 6.02   4.65  
(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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