ChartwellAdvisor.com Shakes Up Investment Industry by Introducing a New Breed of Global Indexes

In a David and Goliath story, ChartwellAdvisor.com, a global investment advisory firm and ETF specialist, has introduced a new breed of global index benchmarks. The two new global indexes challenge the industrys market capitalization weighting system as well as provide an alternative to U.S. only indexes such as the Dow Jones Industrial Average (DJIA).

(PRWEB) April 10, 2005 -- In a David and Goliath story, ChartwellAdvisor.com, a global investment advisory firm and ETF specialist, has introduced a new breed of global index benchmarks. The two new global indexes challenge the industrys market capitalization weighting system as well as provide an alternative to U.S. only indexes such as the Dow Jones Industrial Average (DJIA).

The Chartwell MSCI EAFE (Europe, Asia and Far East) Index weights each of the 21 developed countries in the MSCI EAFE index equally rather than by each countrys stock market value.

Chartwell President Carlton Delfeld points out that the widely used MSCI EAFE index leads to two countries, Japan and the U.K., accounting for almost 50% of the value of the index leaving countries like Hong Kong and Ireland under weighted.

The current bias towards market capitalization weighting reflects a preoccupation with the size of a company or a countrys stock market and its past performance" stated Delfeld in a recent interview. We are much more interested in future prospects for growth in the next three or five or ten years and even try to look ahead into the next quarter century".

In 2004, The Chartwell MSCI EAFE index was up 26.7% versus 17.6% for the MSCI EAFE market cap weighted index. In 2003, the Chartwell MSCI EAFE index was up 41.1% versus 35.3% for the MSCI EAFE index. An index fund to track the Chartwell index is scheduled for late 2005 pending talks with potential partners.

Chartwell has also introduced the Chartwell Global 30 Average as a benchmark alternative to the Dow Jones Industrial Average (DJIA) and the S&P Global 100.

While the DJIA is composed of 30 U.S. companies, the Chartwell Global 30 Average is made up of 15 U.S. based multinationals and 15 leading multinationals headquartered overseas. The 30 companies in the Chartwell Global 30 Average Index are drawn from the 100 companies in the S&P Global 100 Index but again are equally weighted rather than weighted by market capitalization.

In the last 12 months, the Chartwell Global 30 Average was up 17.84% versus --0.63% for the DJIA and so far this year it is up 3.2% versus --2.13% for the DJIA. Investors can now purchase the index fund through Chartwells partnership with FOLIOfn.

Delfeld stated that it makes more sense to have the global leaders of each industry in your portfolio than restrict yourself to only U.S. based companies. For example, own Toyota rather than GM and Nokia rather than Verizon. He also mentioned that investors should tap into Asian growth through companies such as the Hong Kong Shanghai Banking Corporation (HSBC).

About ChartwellAdvisor.com

ChartwellAdvisor.com is the web-based investment advisory platform that helps investors build smart, low cost global portfolios using ETFs and iShares as a core investment tool. Members receive the Chartwell Advisor Global ETF Report and gain access to four model portfolios that were up 25.4%, 41.3%, 45.4% and 43.5 % in 2003 and 18.6%, 27.6%, 27.7% and 25% in 2004.

About Carlton Delfeld

Before founding Chartwell Partners, Carl Delfeld was an international stockbroker with UBS and Northwestern Mutual in Tokyo, Hong Kong, London and Sydney. He was an advisor to the U.S. Treasury and U.S. Senate Finance Committee and also served on the Board of Directors of the Asian Development Bank in Manila. Carl is a frequent speaker on global investment and is the author of the recently released book, The New Global Investor: Building a Smart, Simple and Safer Global Portfolio."

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