A Fidelity news release said that as a result, the fund likely will have a broader investment universe and a higher allocation to foreign markets due to the global nature of the alternative and renewable energy industries. With these changes, Fidelity has renamed the fund, Fidelity Select Environment and Alternative Energy Portfolio, to better reflect its new investment policies and focus, the company said.
“In recent years, there has been substantial progress within the environment and alternative energy industries,” said Brian B. Hogan, president, Equity Group, in the news release. “The rapid pace of technological advancements, the increased social and political focus on environmental protection, as well as the growing demand for energy and other natural resources from industrializing economies has led to increased investment interest in the sector as well as a broader investment universe in these areas. We believe those developments present exciting opportunities for Select Environment and Alternative Energy Portfolio and its shareholders.”
Effective July 1, Fidelity Select Environment and Alternative Energy Portfolio will invest at least 80% of its assets in securities of companies engaged in business activities related to alternative and renewable energy, energy efficiency, pollution control, water infrastructure, waste and recycling technologies, or other environmental support services.
In addition, the fund’s performance benchmark will be changed to the FTSE Environmental Opportunities & Alternative Energy Index.
The Select Environment and Alternative Energy Portfolio is managed by Anna Davydova, who has been covering the energy sector for Fidelity since 2005 and renewable energy sector since 2007.