By Paula Aven Gladych
Fidelity Investments has published a report that identifies the top 30 investment themes it believes are likely to have the greatest influence on the performance of each sector in 2012 and beyond.
Fidelity manages more than $40 billion in 44 sector-based strategies across the 10 major market sectors, such as consumer discretionary, health care and energy and subsectors such as gold and biotechnology, with 39 funds representing its Select Portfolios product line.
Over the past three years, nine out of the 10 Fidelity sector level Select Portfolios have outperformed their ETF peers, according to Fidelity. In addition, Fidelity’s Select Health Care Portfolio, Select Technology Portfolio and Select Utilities Portfolio have beaten the S&P 500’s historical average since their inception.
“Active sector investing continues to be a performance-driven opportunity for investors looking to diversify their portfolios
to the best sector stocks over short- and long-term horizons,” said Brian B. Hogan, president of Fidelity’s Equity Group. “By employing a deep, bottom-up global research process, Fidelity’s sector funds can provide investors the opportunity to invest within a specific segment of the economy, allowing for targeted exposure to certain industries and the potential to reduce some of the company-specific risk of investing in an individual stock.”
In its report Fidelity lists three investment themes per sector. For example, in Consumer Discretionary, it lists Internet disruption, sustainable revenue growth driven by emerging markets and strength in high-end consumers as investment themes.
“Identifying the most compelling themes within each sector can be a critical component to the stock selection process,” said Chris Bartel, senior vice present, Global Equity Research, Fidelity’s Equity Group. “At Fidelity, we believe in-depth, fundamental research at the company level can determine the best investment opportunities
within each sector. Maintaining a global equity sector staff also provides a comprehensive point of view on the key themes and ongoing dynamics within each sector.”
Fidelity Investments is one of the world’s largest providers of financial services, with assets under administration of $3.4 trillion, including managed assets of $1.5 trillion, as of Nov. 30, 2011.
Originally published on BenefitsPro.com