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Chartwell Global 30 Adds Diageo (DEO)

By Carl Delfeld of Chartwell Partners Asset Management

Created to be an alternative to the Dow Jones Industrial Index, the Chartwell Global 30 is a blend of thirty equal-weighted companies with the twist of having exposure to fifteen American and fifteen international companies representing twelve different countries.

With its premium and super premium brands, Diageo (DEO) earns higher margins than more commodity-like products. These brands should hold up better in a global slowdown and also have ample room to grow in fast-growing Asian and Latin American consumer markets. It also makes sense that these premium brands should be able to pass on higher costs more readily. After all, what's a few bucks more when you are already paying $50 for a premium bottle of vodka?

Even so, the Financial Times reports that Diageo trimmed forward-year guidance from 9% organic operating profit growth to 7-9% – though the upper end remained intact. It is also confident of delivering double-digit earnings per share growth, helped by a planned $750m share buyback. This trim in earnings has hit the stock and I see it as a good entry point. A 2009 price/earnings ratio of over 14 times seems to represent good value.

Chartwell Global 30 Adds Peru and Brazil

By Rick Leonida of Chartwell ETF

The Chartwell Global 30 added a company from Peru and Brazil to its stable of 30 global companies yesterday in order to capture some value from the pull back in commodities and energy.

Carl Delfeld, fund manager of the Chartwell Global 30, stated "Our timing was excellent in gaining copper and more energy exposure and the 15 international companies in the fund are now headquartered in 12 different countries: Germany, Mexico, Australia, Brazil, Japan, India, Switzerland, Netherlands, Norway, Israel, Peru and the United Kingdom."

The Chartwell Global 30 is a basket of 30 equally-weighted multinational companies split evenly between leading U.S. and international companies. Founded in April, 2005, the Chartwell Global 30 has handily outperformed the Dow, the S&P 500, and the popular EAFE index.

The most popular and largest international exchange-traded fund on the market is the iShares MSCI Europe, Australia and Far East (EFA) ETF which is a basket of 23 well developed markets. One issue is that the countries in the (EFA) ETF basket are weighted by their market capitalization or market value.

This leads to the UK and Japan together accounting for 42% of an EFA investor's total exposure. Add Germany and France and you are up to 62%. Meanwhile, your exposure to some promising markets is miniscule; Singapore, 1.1%, Ireland, 0.65% and Sweden 2.3%.

For more information about the Chartwell Global 30, please contact Carl Delfeld at 719.264.1503.

Chartwell Global 30 Portfolio Changes and Updates

By Carl Delfeld of the Chartwell ETF Advisorand Chartwell Partners Asset Management.

The Chartwell Global 30 portfolio is a basket of 30 equally weighted multinational companies split evenly between leading U.S. and overseas companies. Founded in 2005, the Chartwell Global 30 portfolio is up 14.46% during the past 12 months versus 0.27% for the S&P 500 index including dividends.

Tata Motors (TTM) and Ford Motor (F) were added earier this year to the Chartwell Global 30 to take advantage of the two companies increasing strength and growing strategic cooperation.

Meanwhile, one of Chartwell 's long-time holdings, Johnson & Johnson (JNJ)is a stalwart that has seen an incredible compounded annual sales growth of more than 11 per cent since it was founded in 1887. I wish my great great grandfather would have left me some shares.

Increasing scientific, regulatory, pricing and cost pressures have added to the task facing for CEO Mr. Bill Weldon, who was interviewed by the Financial Times. He has recently restructured J&J, cutting 4,000 jobs, in an effort to keep the company’s profits growing robustly in the next two potentially difficult years. But while J&J is financially conservative, Weldon believes his biggest impact may be on the company’s approach to innovation and its growing emphasis on emerging markets.

There are eighty projects in their R&D pipeline of which about six could be chosen for fast-track development. One involves J&J’s contact lens business working on a lens that delivers a drug directly to the eyes. Wow!

Meanwhile, another Chartwell Global 30 holding, General Electric (GE) announced today that it plans to double its investments in renewable energies to $6 billion by 2010 in the latest sign of a push by big companies to capitalize on concerns over global warming and pollution.

GE believes that within two years alternative sources such as wind and solar power will account for almost a quarter of its total investments in energy and water, up from 10 per cent in 2006. They estimate a market for renewable energy worth $60billion a year which is expected to expand rapidly.

For more information on the Chartwell Global 30, please contact Carl Delfeld at cdelfeld@comcast.net or 719.264.1503.