Canadian World Fund Limited

Canadian World Fund Limited

July 27, 2011 12:22 ET

Canadian World Fund Limited Reports June 30, 2011 Interim Results

TORONTO, CANADA--(Marketwire - July 27, 2011) - Canadian World Fund Limited's (CWF) (TSX:CWF) net asset value at June 30, 2011 was $42,983,000, a decrease from the $43,462,000 at the end of 2010. CWF's net asset value per share (NAV) at June 30, 2011 was $5.98, down from $6.04 at year end 2010. The NAV return for the six months ended June 30, 2011 was -1.0%, compared with a 0.2% return for the benchmark Morgan Stanley Capital International (MSCI) All Country World Index, expressed in Canadian dollar terms; however, over 12 months, it was 21.3% for CWF versus 15.9% for the Index. CWF's market return to common shareholders for the six months to June 30, 2011 was -3.1%.

CWF's performance was adversely impacted by some of its cyclical and emerging market holdings as commodity prices reacted to China's slowing economy. This, in turn, created negative investor sentiment towards emerging markets which underperformed developed markets. In addition, small to mid-capitalization equities tended to underperform larger and more liquid securities.

In terms of performance of various asset classes, during the second quarter, energy and most hard commodities were consistently weak. Gold was the top asset class as the yellow metal's performance mirrored the "greenback", with all of its gains coming in the final month of the quarter. Bonds outperformed stocks, on concern over a global economic slowdown and the latest flaring up of the European foreign debt crisis. Germany and the U.K. were the top regional performers, followed by the U.S. Commodity-related countries such as Canada, Australia, Russia, and Brazil were among the worst performers.

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)
Six Months Ended
June 30, June 30,
2011 2010
Net investment loss (245 ) (256 )
Net gain (loss) on investments (196 ) 2,160
Increase (decrease) in net assets resulting from operations (441 ) 1,904
Increase (decrease) in net assets resulting from operations – per share (0.06 ) 0.27
As at
June 30,
December 31,
Selected data (1)
Net asset value 42,983 43,462
Net asset value per share 5.98 6.04
Selected data according to GAAP (1)
Net assets 42,852 43,293
Net assets per share 5.96 6.02
(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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