Canadian World Fund Limited Reports Audited 2008 Financial Results

TORONTO, CANADA--(Marketwire - Feb. 11, 2009) - Canadian World Fund Limited (CWF) (TSX:CWF) had a net asset value per share (NAV) return for 2008 of -63.2%. By comparison, the return of the benchmark Morgan Stanley Capital International (MSCI) All Country World Index was -30.0%, expressed in Canadian dollar terms. The Company's net asset value at December 31, 2008 was $20,626,000, decreased from $56,020,000 at the end of 2007. The corresponding NAVs at December 31, 2008 and December 31, 2007 were $2.87 and $7.79.

Given the deteriorating global economic conditions and increasingly negative market sentiment as the year progressed, most sectors, both geographic and industry, were down significantly for the year. CWF's underperformance relative to the benchmark can be largely attributed to high portfolio concentrations in smaller capitalization companies and emerging markets and the negative effect of leverage. Investments in smaller cap companies, which have served to enhance portfolio returns in the past, are not included in the market capitalization-based benchmark. Emerging markets suffered extreme market volatility as evidenced by the MSCI Emerging Markets Index return of -43.6%, expressed in Canadian dollar terms. The leverage provided by the Company's bank borrowings also served to magnify negative portfolio returns.

North America remained the dominant portfolio segment at 55.7%, including a Canadian segment of 37.4%. Generally fully invested, the Canadian segment reflected a 22.9% weighting in cash and short-term investments at year end. Europe was the next largest weighting at 23.1%, with Asia and Latin America at 14.8% and 4.9%, respectively.

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,
                                                      2008            2007
                                              -----------------------------


Net investment loss                                   (551)           (727)
Net gain (loss) on investments                     (34,772)          5,463
                                                   --------          ------
Increase (decrease) in net assets
 resulting from operations                         (35,323)          4,736


Increase (decrease) in net assets
 resulting from operations - per share               (4.91)           0.81





                                                            As at
                                                           ------
                                              December 31,    December 31,
                                                      2008            2007
                                              -----------------------------


Selected data(1)
-----------------
Net asset value                                     20,626          56,020
Net asset value per share                             2.87            7.79


Selected data according to GAAP(1)
----------------------------------
Net assets                                          20,465          55,794
Net assets per share                                  2.85            7.76


(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 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.