The top five holdings in this fund are Tesla Inc (TSLA, 11.96% of assets); Honeywell International Inc (HON, 7.71%); Danaher Corp (DHR, 5.14%); Eaton Corp PLC (ETN, 4.44%); and 3M Co (MMM, 4.34%).
Fidelity Envir and Alt Energy Fund (FSLEX)
From Moneyletter
Sustainability is a subset of thematic investing, which enables investors to participate in long-term trends. At Fidelity, they have a stable of funds which cover a range of strategies to appeal to different investing objectives.
Where appropriate and aligned with a fund’s investment objectives, Fidelity applies an ESG perspective directly to the products they offer. In broad terms, that means the Boston-based fund company has incorporated one or all the ESG factors into their fundamental research.
These factors include:
- Environmental themes, such as investing in companies that are responding to consumer demand for sustainable practices.
- Social themes, such as investing in companies committed to a diverse and inclusive workplace.
- Governance themes, such as investing in companies committed to diverse board composition, strong oversight, and shareholder friendly policies.
According to Fidelity’s research two-thirds of retail customers say social impact is a key to their investing decisions. Company management is responding quickly as well. Fidelity has found that the heads of some of America’s largest companies have committed to lead their companies for the benefit of all stakeholders ––customers, employees, suppliers, communities, and shareholders.
There are several funds at Fidelity that focus on long-term themes broadly tied to specific areas of sustainability. The first one below is already in our Specialty List.
Fidelity Environment & Alternative Energy Fund focuses on alternative and renewable energy, energy efficiency, pollution control, water infrastructure, waste and recycling technologies, or other environmental support services.
YTD Return (through 7/31) = 17.8%
1-Year Return = 54.0%
Brian W. Kelly, Moneyletter, moneyletter.com, 800-890-9670, August 2021