Mulvihill World Financial Split Corp.

Mulvihill World Financial Split Corp.

March 27, 2007 09:00 ET

World Financial Split Corp. Announces Year End Results

TORONTO, ONTARIO--(CCNMatthews - March 27, 2007) - World Financial Split Corp. (the "Fund") (TSX:WFS)(TSX:WFS.PR.A) announces results for the year ended December 31, 2006. Net realized income before income taxes and distributions amounted to $23.5 million or $1.52 per unit. Net assets were $23.31 per unit, net of distributions to shareholders in the amounts of $0.53 per Preferred share and $1.20 per Class A share.

The Fund is a mutual fund corporation which invests in a portfolio that includes common equity securities selected from the ten largest financial services companies by market capitalization in each of Canada, the United States and the Rest of the World (the "Portfolio Universe"). The issuers of securities in the Portfolio, other than Canadian issuers, must have a minimum credit rating of "A" from Standard & Poor's Rating Services or a comparable rating from an equivalent rating agency.

In addition, up to 20% of the Net Asset Value of the Fund may be invested in common equity securities of financial services companies not included in the Portfolio Universe as long as such companies have a market capitalization at the time of investment of at least US$10 billion and for non-Canadian issuers, a minimum credit rating of "A" from Standard & Poors Rating Services or a comparable rating from an equivalent rating agency.

To generate additional returns above the dividend income earned on the portfolio, the Fund may from time to time write covered call options in respect of all or part of the common shares in the Portfolio. In addition, the Fund may write cash covered put options in respect of securities in which the Fund is permitted to invest.

The Fund's investment portfolio is managed by its investment manager, Mulvihill Capital Management Inc. The Fund's Preferred and Class A shares are listed on The Toronto Stock Exchange under the symbols WFS.PR.A and WFS.

Selected Financial Information: ($ Millions)

Statement of Net Assets 2006
Assets $ 338.4
Liabilities 145.7

Net Assets (Unitholders Equity) $ 192.7

Statement of Financial Operations
Income $ 9.5
Expenses (5.3)
Net Investment Income $ 4.2

Net Gain on Investments $ 19.3

Net Realized Income Before Income
Taxes and Distributions $ 23.5


A member of the Mulvihill Capital Management Inc. Group of Funds

Contact Information

  • Mulvihill Structured Products
    John Mulvihill
    President & CEO
    (416) 681-3966 or 1-800-725-7172
    Mulvihill Structured Products
    Don Biggs
    Senior Vice President
    (416) 681-3966 or 1-800-725-7172