-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, RzcrP1onWlYLtPZUVodpTcn6DkDxweLfiPFVZbQW8qug9CCcBoAiWHtuYzzwqkVp O+y4fCP3tDZdAi7PvzsXpg== 0001040674-08-000014.txt : 20080516 0001040674-08-000014.hdr.sgml : 20080516 20080516121221 ACCESSION NUMBER: 0001040674-08-000014 CONFORMED SUBMISSION TYPE: N-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20080331 FILED AS OF DATE: 20080516 DATE AS OF CHANGE: 20080516 EFFECTIVENESS DATE: 20080516 FILER: COMPANY DATA: COMPANY CONFORMED NAME: WORLD FUNDS INC /MD/ CENTRAL INDEX KEY: 0001040674 IRS NUMBER: 000000000 FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: N-Q SEC ACT: 1940 Act SEC FILE NUMBER: 811-08255 FILM NUMBER: 08841033 BUSINESS ADDRESS: STREET 1: 8730 STONY POINT PARKWAY STREET 2: SUITE 205 CITY: RICHMOND STATE: VA ZIP: 23235 BUSINESS PHONE: 8042677400 MAIL ADDRESS: STREET 1: 8730 STONY POINT PARKWAY STREET 2: SUITE 205 CITY: RICHMOND STATE: VA ZIP: 23235 0001040674 S000008418 Eastern European Equity Fund C000023105 Institutional Shares C000023106 Class A Shares VEEEX C000023107 Class C Shares VEECX 0001040674 S000008419 Dividend Capital Realty Income Fund C000023108 Class B Shares C000023109 Class I Shares DCRIX C000023110 Class A Shares DCRAX C000023111 Class C Shares DCRCX 0001040674 S000008421 REMS Real Estate Value Opportunity Fund C000023113 REMS Real Estate Value Opportunity Fund HLRRX N-Q 1 twf033108nq.txt TWF 033108 NQ QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED MANAGEMENT INVESTMENT COMPANIES 811-8255 ------------------------------------------------- Investment Company Act file number THE WORLD FUNDS, INC. -------------------------------------------------- (Exact name of registrant as specified in charter) 8730 STONY POINT PARKWAY, SUITE 205, RICHMOND, VA 23235 -------------------------------------------------------------------- (Address of principal executive offices) (Zip code) Thomas S. Harman Morgan, Lewis, Bockius 1111 Pennsylvania Avenue, Northwest Washington, D.C. 20004 --------------------------------------------------------------------- (Name and address of agent for service) (800) 527-9525 ------------------------------------------------------------------- Registrant's telephone number, including area code: Date of fiscal year end: 12/31 ------------------------------- Date of reporting period: 03/31/08 ----------------------------------- ITEM 1. SCHEDULE OF INVESTMENTS. The World Funds, Inc. QUARTERLY STATEMENTS OF INVESTMENTS March 31, 2008 (UNAUDITED) - ----------------------------------------------------------------------- CONTENTS: Dividend Capital Realty Income Fund; Eastern European Equity Fund; and REMS Real Estate Value-Opportunity Fund DIVIDEND CAPITAL REALTY INCOME FUND SCHEDULE OF INVESTMENTS March 31, 2008 (unaudited) Number of Market shares Security Description Value - ---------- --------------------------------------------------- ---------- - ---------- --------------------------------------------------- ---------- COMMON STOCK 34.37% APARTMENTS: 3.45% 1,000 AVALONBAY COMMUNITIES INC. $ 96,520 1,700 BOARDWALK EQUITIES 62,764 2,200 BRE PROPERTIES CLASS A 100,232 2,600 CANADIAN APARTMENT PROPERTIES REAL ESTATE INVESTMENT TRUST (CA40,146 2,000 ESSEX PROPERTY TRUST 227,960 5,100 NORTHERN PROPERTY REAL ESTATE INVESTMENT TRUST (CANADA) 103,173 ---------- ---------- 630,795 ---------- ---------- HEALTHCARE: 3.24% 4,500 HCP, INC. 152,145 8,700 SENIOR HOUSING PROPERTY 206,190 5,200 VENTAS, INC. 233,532 ---------- ---------- 591,867 ---------- ---------- HOTELS: 1.34% 5,600 GAYLORD ENTERTAINMENT CO. 169,624 2,600 LASALLE HOTEL 74,698 ---------- ---------- 244,322 ---------- ---------- INDUSTRIAL: 1.24% 2,100 AMB PROPERTY CORP. 114,282 1,900 PROLOGIS 111,834 ---------- ---------- 226,116 ---------- ---------- NET LEASE: 2.12% 2,000 ENTERTAINMENT PROPERTIES TRUST 98,660 11,300 REALTY INCOME CORPORATION 289,506 ---------- ---------- 388,166 ---------- ---------- OFFICE/CENTRAL BUSINESS DISTRICT: 3.82% 3,200 BOSTON PROPERTIES INC. 294,624 13,100 DOUGLAS EMMETT INC. 288,986 1,400 SL GREEN REALTY CORP. 114,058 ---------- ---------- 697,668 ---------- ---------- OFFICE/SUBURBAN: 3.21% 1,600 ALEXANDRIA REAL ESTATE EQUITIES, INC. 149,382 2,200 ALLIED PROPERTIES REAL INVESTMENT TRUST (CANADA) 41,633 2,900 CORPORATE OFFICE PROPERTIES TRUS 97,469 8,400 DIGITAL REALTY TRUST INC. 298,200 ---------- ---------- 586,684 ---------- ---------- OTHER REAL ESTATE COMPANIES: 4.40% 80,000 SOCOVESA SA ADR 144A 804,000 ---------- ---------- REALTY/DIVERSIFIED: 3.24% 1,900 CANADIAN REAL ESTATE INVESTMENT TRUST (CANADA) 49,723 1,900 COUSINS PROPERTY 46,949 2,200 DUNDEE REAL ESTATE (CANADA) 69,520 4,200 VORNADO REALTY TRUST 362,082 133,000 ZHONG AN REAL ESTATE LTD. (HONG KONG)\ 64,256 ---------- ---------- 592,530 ---------- ---------- REGIONAL MALLS: 3.47% 1,900 MACERICH CO. 133,513 3,200 RIOCAN REAL ESTATE INVESTMENT TRUST (CANADA) 64,448 3,300 SIMON PROPERTY GROUP INC. 306,603 2,500 TAUBMAN CENTERS INC. 130,250 ---------- ---------- 634,814 ---------- ---------- SELF STORAGE: 1.50% 2,700 EXTRA STORAGE SPACE 43,713 2,600 PUBLIC STORAGE INC. 230,412 ---------- ---------- 274,125 ---------- ---------- SHOPPING CENTER: 3.34% 2,000 CALLOWAY REALTY INVESTMENT TRUST (CANADA) 39,280 5,500 FEDERAL REALTY INVESTMENT TRUST 428,725 2,500 KIMCO REALTY CORP. 97,925 2,800 PRIMARIS RETAIL REAL ESTATE (CANADA) 45,332 ---------- ---------- 611,262 ---------- ---------- TOTAL COMMON STOCK $ 6,282,349 ---------- ---------- PREFERRED STOCK: 65.63% APARTMENTS: 5.13% 200 APARTMENT INVESTMENT & MANAGEMENT CO., SERIES G, 9.375% $ 4,898 18,500 APARTMENT INVESTMENT & MANAGEMENT CO., SERIES U, 7.750% 418,655 21,300 ASSOCIATED ESTATES REALTY CORP., SERIES B, 8.700% 514,395 ---------- ---------- 937,948 ---------- ---------- HOTELS: 11.25% 21,000 ASHFORD HOSPITALITY TRUST, SERIES A, 8.550% 388,500 22,200 FELCOR LODGING TRUST INC., SERIES C, 8.000% 436,230 200 HERSHA HOSPITALITY TRUST, SERIES A, 8.000% 4,200 7,400 STRATEGIC HOTELS & RESORTS INC. 1444A , SERIES A, 8.500% 139,490 56,800 STRATEGIC HOTELS & RESORTS INC., SERIES C, 8.250% 1,058,184 1,600 SUNSTONE HOTEL INVESTORS INC., SERIES A, 8.000% 30,000 ---------- ---------- 2,056,604 ---------- ---------- NET LEASE: 4.34% 35,300 ENTERTAINMENT PROPERTIES TRUST, SERIES B, 7.750% 794,250 ---------- ---------- OFFICE/CENTRAL BUSINESS DISTRICT: 1.94% 30,000 MAGUIRE PROPERTIES INC., SERIES A, 7.625% 354,000 ---------- ---------- OFFICE/SUBURBAN: 24.54% 55,000 BIOMED REALTY TRUST INC., SERIES A, 7.375% 1,221,000 67,900 BRANDYWINE REALTY TRUST, SERIES D, 7.375% 1,337,630 12,900 CORPORATE OFFICE PROPERTIES TRUST, SERIES H, 7.500% 307,407 19,700 DIGITAL REALTY TRUST INC., SERIES A, 8.500% 452,903 45,800 DIGITAL REALTY TRUST INC., SERIES B, 7.875% 984,700 8,200 PS BUSINESS PARKS, INC., SERIES O, 7.375% 182,122 ---------- ---------- 4,485,762 ---------- ---------- REGIONAL MALLS: 2.39% 18,800 TAUBMAN CENTERS INC., SERIES G, 8.000% 436,724 ---------- ---------- SHOPPING CENTER: 2.97% 25,300 DEVELOPERS DIVERSIFIED REALTY CORP., SERIES H, 7.375% 542,179 ---------- ---------- SPECIALTY FINANCE: 13.08% 37,000 CAPITAL LEASE FUNDING INC., SERIES A, 8.125% 778,850 40,000 GRAMERCY CAPITAL CORP., SERIES A, 8.125% 730,000 25,000 NORTHSTAR REALTY FINANCE CORP, SERIES A, 8.750% 352,500 40,000 NORTHSTAR REALTY FINANCE CORP, SERIES B, 8.250% 530,000 ---------- ---------- 2,391,350 ---------- ---------- TOTAL PREFERRED STOCK $ 11,998,817 ---------- ---------- ---------- ---------- TOTAL SECURITIES 100.00% $ 18,281,166 ======= ========== ======= ========== FAS 157 Footnote Disclosure: The Fund adopted Financial Accounting Standards Board Statement of Financial Accounting Standards No. 157, Fair Value Measurements ("FAS 157"), effective January 1, 2008. In accordance with FAS 157, "fair value" is defined as the price that a Fund would receive upon selling an investment in an orderly transaction to an independent buyer in the principal or most advantageous market for the investment. Various inputs are used in determining the value of a Fund's investments. FAS 157 established a three-tier hierarchy of inputs to establish a classification of fair value measurements for disclosure purposes. The three-tier hierarchy of inputs is summarized in the three broad Levels listed below: Level 1 - quoted prices in active markets for identical securities Level 2 - other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.) Level 3 - significant unobservable inputs (including the Fund's own assumptions in determining fair value of investments) The following is a summary of the inputs used to value the Fund's investments as of March 31, 2008: Valuation Inputs: Investment in Securities: ----------------- ------------------------- Level 1 - Quoted Prices $ 18,281,166 Level 2 - Other Significant Observable Inputs - Level 3 - Significant Unobservable Inputs ----------- ----------- Total: $ 18,281,166 ----------- EASTERN EUROPEAN EQUITY FUND SCHEDULE OF PORTFOLIO INVESTMENTS March 31, 2008 (unaudited) Number of % of Market Shares Security Description Net Assets Value - - -------------------- Common Stocks: 76.85% Austria: 23.33% 40,000 CA Immobilien Anlagen $ 854,410 124,527 CA Immobilien International 1,977,239 22,134 Erste Bank Der Oesterspar 1,435,498 150,000 ECO Eastern Europe R/EST 2,369,850 250,000 Immoeast AG 2,409,348 400,000 Meinl European Land Ltd. 2,698,469 280,000 Uralchimplast Beteiligungs 2,658,656 ---------- ---------- 14,403,470 ---------- ---------- Bulgaria: 4.00% 2,090,000Bulgarian Property Development 2,468,944 ---------- ---------- Czech Republic: 6.94% 15,000 ORCO Property Group 1,366,871 4,000 Philip Morris CR 1,120,647 35,000 Telefonica 02 Czech Republic 1,797,528 ---------- ---------- 4,285,046 ---------- ---------- Germany: 1.93% 683,775 Magnat Real Estate Opps 1,188,326 ---------- ---------- Great Britain: 12.33% 144,000 Equest Investments Balkans 3,037,662 136,000 Highland Gold Mining Ltd. 571,755 590,000 Lewis Charles Romania Property Fund Ltd. 1,361,736 570,000 Regal Petroleum PLC 1,380,647 110,000 Ukraine Opportunity Trust PL 1,193,500 22,000 Ukraine Opportunity Trust PL Ord 63,800 ---------- ---------- 7,609,100 ---------- ---------- Hungary: 16.05% 298,020 Ablon Group 1,139,001 12,500 Egis RT 1,357,125 8,000 Gedeon Richter Ltd GDR Reg S 1,654,401 1,170,000Magyar Telekom Telecomm 5,757,132 ---------- ---------- 9,907,659 ---------- ---------- Israel: 5.58% 375,000 Bank Hapoalim Ltd. 1,439,458 470,000 Bank Leumi Le-Israel 2,003,105 ---------- ---------- 3,442,563 ---------- ---------- Poland: 4.82% 300,000 Telekomunikacja Polska SA 2,974,028 ---------- ---------- Russia: 1.04% 1 Joint Stock Company Open GDR 28 20,000 AFK Sistema Regs Spons GDR 642,000 ---------- ---------- 642,028 ---------- ---------- Sweden: 0.84% 50,000 Black Earth Farming Ltd.-SDR 517,250 ---------- ---------- TOTAL SECURITIES 76.85% $47,438,414 CASH AND CASH EQUIVALENTS 23.15% $14,289,520 ---------- ---------- ---------- ---------- TOTAL INVESTMENTS 100.00% $61,727,934 ========== ========== ========== ========== FAS 157 Footnote Disclosure: The Fund adopted Financial Accounting Standards Board Statement of Financial Accounting Standards No. 157, Fair Value Measurements ("FAS 157"), effective January 1, 2008. In accordance with FAS 157, "fair value" is defined as the price that a Fund would receive upon selling an investment in an orderly transaction to an independent buyer in the principal or most advantageous market for the investment. Various inputs are used in determining the value of a Fund's investments. FAS 157 established a three-tier hierarchy of inputs to establish a classification of fair value measurements for disclosure purposes. The three-tier hierarchy of inputs is summarized in the three broad Levels listed below: Level 1 - quoted prices in active markets for identical securities Level 2 - other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.) Level 3 - significant unobservable inputs (including the Fund's own assumptions in determining fair value of investments) The following is a summary of the inputs used to value the Fund's investments as of March 31, 2008: Valuation Inputs: Investment in Securities: Level 1 - Quoted Prices $ 47,438,414 Level 2 - Other Significant Observable Inputs - Level 3 - Significant Unobservable Inputs - ---------- ---------- Total: $ 47,438,414 ---------- REMS REAL ESTATE VALUE-OPPORTUNITY FUND SCHEDULE OF INVESTMENTS March 31, 2008 (unaudited) Number Market of shares Security Description Value - ---------- ------------------------------------------ --------- - ---------- ------------------------------------------ --------- LONG POSITIONS COMMON STOCKS 84.15% DIVERSIFIED/OTHER: 17.26% 85,300 ISHARES DOW JONES U.S. REAL ESTATE INDEX FUND 5,553,030 52,000 MI DEVELOPMENTS 1,493,440 13,800 VORNADO REALTY TRUST 1,189,698 --------- --------- 8,236,168 --------- --------- HEALTHCARE: 7.31% 80,500 BIOMED REALTY TRUST 1,923,145 59,800 HEALTHCARE REALTY TRUST, INC. 1,563,770 --------- --------- 3,486,915 --------- --------- HOTEL: 3.10% 48,800 GAYLORD ENTERTAINMENT CO. 1,478,152 --------- --------- MULTI-FAMILY: 20.72% 53,600 AMERICAN CAMPUS COMMUNITIES, INC. 1,466,496 49,000 APARTMENT INVESTMENT & MANAGEMENT CO. 1,754,690 23,600 BRE PROPERTIES CLASS A 1,075,216 65,900 COLONIAL PROPERTIES TRUST 1,584,895 40,900 POST PROPERTIES INC. 1,579,558 52,400 SUN COMMUNITIES, INC. 1,074,200 55,200 UDR, INC. 1,353,504 --------- --------- 9,888,559 --------- --------- OFFICE/INDUSTRIAL: 18.18% 57,500 ALLIED PROPERTIES REAL ESTATE INVESTMENT TRUST (Cana1,088,124 25,500 DOUGLAS EMMETT INC. 562,530 74,100 DUKE REALTY CORP. 1,690,221 54,900 LIBERTY PROPERTY TRUST 1,707,939 44,200 MACK-CALI REALTY CORP 1,578,382 157,800 MISSION WEST PROPERTIES INC. 1,491,210 10,700 PS BUSINESS PARKS 555,330 --------- --------- 8,673,736 --------- --------- RETAIL: 17.58% 122,500 KITE REALTY GROUP TRUST 1,715,000 66,800 PENNSYLVANIA REAL ESTATE INVESTMENT TRUST 1,629,252 76,900 RAMCO-GERSHENSON PROPERTIES TRUST 1,623,359 44,300 TANGER FACTORY OUTLET 1,704,221 49,900 WEINGARTEN REALTY 1,718,556 --------- --------- 8,390,388 --------- --------- TOTAL COMMON STOCKS $ 40,153,918 --------- --------- PREFERRED STOCK: 18.97% DIVERSIFIED/OTHER: 2.07% 25,800 COUSINS PROPERTIES INC., SERIES A, 7.75% $ 545,412 17,500 PUBLIC STORAGE INC., SERIES A, 6.125% 439,425 --------- --------- 984,837 --------- --------- HEALTHCARE: 2.67% 18,800 BIOMED REALTY TRUST, SERIES A, 7.375% 417,360 20,300 HCP INC., SERIES F, 7.100% 444,367 16,900 HEALTHCARE REIT, INC., SERIES D, 7.875% 413,205 --------- --------- 1,274,932 --------- --------- HOTEL: 0.89% 21,800 LASALLE HOTEL PROPERTIES, SERIES G, 7.250% 425,100 --------- --------- INDUSTRIAL: 0.89% 19,200 DUKE REALTY CORP., SERIES L, 6.60% 424,128 --------- --------- MORTGAGE: 0.83% 25,200 ISTAR FINANCIAL INC., SERIES D, 8.000% 396,396 --------- --------- MULTI-FAMILY: 3.50% 19,200 APARTMENT INVESTMENT & MANAGEMENT CO., SERIES Y, 7.87426,048 20,700 BRE PROPERTIES, SERIES C, 6.750% 440,496 15,600 COLONIAL PROPERTIES TRUST, SERIES D, 8.125% 380,640 17,700 MID-AMERICAN APARTMENT COMMUNITIES, SERIES H, 8.30% *429,225 --------- --------- 1,676,409 --------- --------- OFFICE: 3.20% 18,600 BRANDYWINE REALTY TRUST SERIES C, 7.50% 382,974 14,700 DIGITAL REALTY SERIES B, 7.875% 316,050 19,300 KILROY REALTY CORP., SERIES F, 7.500% 408,967 18,400 SL GREEN REALTY CORP., SERIES C, 7.625% 417,128 --------- --------- 1,525,119 --------- --------- RETAIL: 4.91% 20,100 CBL & ASSOCIATES PROPERTIES, SERIES C, 7.75% 414,060 15,700 DEVELOPERS DIVERSIFIED REALTY, SERIES H, 7.375% 336,451 19,000 REGENCY CENTERS CORP, SERIES E, 6.70% 413,630 17,600 TANGER FACTORY OUTLET SERIES C, 7.50% 409,200 16,800 URSTADT BIDDLE PROPERTIES, INC., SERIES D, 7.50% 381,360 18,700 WEINGARTEN REALTY INVESTMENT, SERIES F, 6.500% 389,895 --------- --------- 2,344,596 --------- --------- TOTAL PREFERRED STOCKS $ 9,051,517 --------- --------- TOTAL LONG POSITIONS $ 49,205,435 --------- --------- SECURITIES SOLD SHORT COMMON STOCK -6.48% DIVERSIFIED/OTHER: -4.20% (10,800) COUSINS PROPERTIES INC. (266,868) (12,300) CB RICHARD ELLIS GROUP, INC. (266,172) (3,600) JONES LANG LASALLE INC. (278,424) (6,100) PLUM CREEK TIMBER CO. (248,270) (7,300) SPDR DOW JONES WILSHIRE INTERNATIONAL REAL ESTATE ET (385,805) (6,300) ST. JOE COMPANY (270,459) (4,600) VANGUARD REIT VIPERS (289,938) --------- --------- (2,005,936) --------- --------- HOTEL: -0.46% (2,200) WYNN RESORTS, LTD. (221,408) --------- --------- MORTGAGE: -0.68% (6,800) FIRSTFED FINANCIAL CORP. (184,620) (17,100) VINEYARD NATIONAL BANCORP COMPANY (138,852) --------- --------- (323,472) --------- --------- OFFICE/INDUSTRIAL: -0.58% (4,700) PROLOGIS SHS (276,642) --------- --------- RETAIL: -0.55% (6,900) GENERAL GROWTH (263,373) --------- --------- TOTAL SECURITIES SOLD SHORT $ (3,090,831) --------- --------- TOTAL SECURITIES 96.64% $ 46,114,604 CASH AND CASH EQUIVALENTS 3.36% 769,008 -------- --------- -------- --------- TOTAL INVESTMENTS 100.00% $ 47,718,930 ======== ========= ======== ========= FAS 157 Footnote Disclosure: The Fund adopted Financial Accounting Standards Board Statement of Financial Accounting Standards No. 157, Fair Value Measurements ("FAS (157)"), effective January 1, 2008. In accordance with FAS 157, "fair value" is defined as the price that a Fund would receive upon selling an investment in an orderly transaction to an independent buyer in the principal or most advantageous market for the investment. Various inputs are used in determining the value of a Fund's investments. FAS 157 established a three-tier hierarchy of inputs to establish a classification of fair value measurements for disclosure purposes. The three-tier hierarchy of inputs is summarized in the three broad Levels listed below: Level 1 - quoted prices in active markets for identical securities Level 2 - other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.) Level 3 - significant unobservable inputs (including the Fund's own assumptions in determining fair value of investments) The following is a summary of the inputs used to value the Fund's investments as of March 31, 2008: Valuation Inputs: Investment in Securities: Level 1 - Quoted Prices $ 46,114,604 Level 2 - Other Significant Observable Inputs - Level 3 - Significant Unobservable Inputs - --------- --------- Total: $ 46,114,604 --------- For information on the Fund's policy regarding valuation of investments and other significant accounting policies, please refer to the Fund's most recent semi-annual or annual shareholder report. ITEM 2. CONTROLS AND PROCEDURES. (a) EVALUATION OF DISCLOSURE CONTROLS AND PROCEDURES. The Registrant maintains disclosure controls and procedures that are designed to ensure that information required to be disclosed in the Registrant's filings under the Securities Exchange Act of 1934 and the Investment Company Act of 1940 is recorded, processed, summarized and reported within the periods specified in the rules and forms of the U.S. Securities and Exchange Commission. Such information is accumulated and communicated to the Registrant's management, including its principal executive officer and principal financial officer, as appropriate, to allow timely decisions regarding required disclosure. The Registrant's management, including the principal executive officer and the principal financial officer, recognizes that any set of controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives. Within 90 days prior to the filing date of this Quarterly Schedule of Portfolio Holdings on Form N-Q, the Registrant had carried out an evaluation, under the supervision and with the participation of the Registrant's management, including the Registrant's principal executive officer and the Registrant's principal financial officer, of the effectiveness of the design and operation of the Registrant's disclosure controls and procedures. Based on such evaluation, the Registrant's principal executive officer and principal financial officer concluded that the Registrant's disclosure controls and procedures are effective. (b) CHANGES IN INTERNAL CONTROLS. There have been no significant changes in the Registrant's internal controls or in other factors that could significantly affect the internal controls subsequent to the date of their evaluation in connection with the preparation of this Quarterly Schedule of Portfolio Holdings on Form N-Q. ITEM 3. EXHIBITS. A separate certification for each principal executive officer and principal financial officer of the registrant as required by Rule 30a-2(a) under the Investment Company Act (17 CFR 270.30a-2(a), exactly as set forth below: Attached hereto. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. (Registrant) The World Funds, Inc. ----------------------------- By: /s/ John Pasco, III ------------------------------------- John Pasco, III Principal Executive Officer Date: May 16, 2008 ------------------------------------ Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated. By: /s/ John Pasco, III ------------------------------------- John Pasco, III Principal Executive Officer Date: May 16, 2008 ------------------------------------ By: /s/ Karen Shupe ------------------------------------- Karen Shupe Principal Financial Officer Date: May 16, 2008 ------------------------------------ EX-99.CERT 2 twf033108_nqofficerscert.txt TWF 033108 NQ OFFICERS CERT I, John Pasco, III, certify that: 1. I have reviewed this report on Form N-Q of The World Funds; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the schedule of investments included in this report fairly present in all material respects the investments of the registrant as of the end of the fiscal quarter for which the report is filed; 4. The registrant's other certifying officer(s)and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have: (a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; (b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; (c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report, based on such evaluation; and (d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and 5. The registrant's other certifying officer(s) and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): (a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and (b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. Date: May 16, 2008 /s/ John Pasco, III - --------------------- John Pasco, III Principal Executive Officer I, Karen Shupe, certify that: 1. I have reviewed this report on Form N-Q of The World Funds; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the schedule of investments included in this report fairly present in all material respects the investments of the registrant as of the end of the fiscal quarter for which the report is filed; 4. The registrant's other certifying officer(s)and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have: (a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; (b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; (c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report, based on such evaluation; and (d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and 5. The registrant's other certifying officer(s) and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): (a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and (b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. Date: May 16, 2008 /s/ Karen Shupe - --------------------- Karen Shupe Principal Financial Officer -----END PRIVACY-ENHANCED MESSAGE-----