TORONTO, CANADA -- (Marketwire) -- 02/14/13 -- Canadian World Fund Limited's (TSX: CWF) net asset value at December 31, 2012 was $38,350,000, an increase from the $35,540,000 at the end of 2011. CWF's net asset value per share (NAV) at December 31, 2012 was $5.33, up from $4.94 at year end 2011. The NAV return for 2012 was 7.9%, compared with an 11.0% return for the benchmark Morgan Stanley Capital International (MSCI) All Country World Index, expressed in Canadian dollar terms. The market price of CWF's common shares declined by 3.1%.
CWF increased its weighting in the consumer discretionary and financials sectors and decreased the exposure in the underperforming energy and materials sectors in 2012. The main positive contributors to the portfolio included Galaxy Entertainment Group Limited (casino operations in Macau), Lojas Renner S.A. (fashion apparel stores in Brazil), HDFC Bank Ltd. (premier Indian retail bank), Groupo Financiero Banorte (one of the largest and oldest financial institutions in Mexico) and Peer 1 Network Enterprises, Inc. (a Canadian internet infrastructure provider with data centers across North America and the United Kingdom), which is being acquired by Cogeco Cable Inc., a Canadian communications company.
The gap between the performance of larger and smaller capitalized stocks has widened, particularly through the Canadian bear market in resources. This had a negative impact on CWF's performance as the Canadian weighting has been high in the CWF portfolio.
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, 2012 2011 --------------------------------Net investment loss (412) (519)Net gain (loss) on investments 3,293 (7,425) --------------- ---------------Increase (decrease) in net assets resulting from operations 2,881 (7,944)Increase (decrease) in net assets resulting from operations - per share 0.40 (1.10) As at December 31, December 31, 2012 2011 --------------------------------Selected data (1)Net asset value 38,350 35,540Net asset value per share 5.33 4.94Selected data according to GAAP (1)Net assets 38,230 35,349Net assets per share 5.32 4.92
(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.
Canadian World Fund Limited
Jonathan A. Morgan
President & CEO
(416) 366-2729 (FAX)