Fidelity^® Equity Sector Portfolio Managers Identify 30 Investment Themes Likely to Influence Performance in 2012 And Beyond

Firm Celebrates 30th Anniversary of Fidelity^® Select Portfolios^®; Nine out of 10 Fidelity Sector Level Funds Outperforming ETF Peers over Past Three Yearsⁱ

BOSTON -- Fidelity Investments^®, a leading global asset management firm and provider of the largest lineup of actively managed sector fundⁱⁱ, today published a new report that articulates the top 30 investment themes the firm’s equity sector specialists believe are likely to have the greatest influence on the performance of each sector in 2012 and beyond. Available to investors and their advisors, the paper, “Equity Sectors: Investment Themes for 2012 and Beyond,” was developed to commemorate the 30th anniversary of the Fidelity Select Portfolios^®.

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 the Select Portfolios product line.ⁱⁱⁱ

Over the past three years, nine out of 10 of the Fidelity sector level Select Portfolios have outperformed their ETF peers.^iv In addition, Fidelity’s Select Health Care Portfolio (FSPHX), Select Technology Portfolio (FSPTX) and Select Utilities Portfolio (FSUTX), which were all launched in 1981, have beaten the S&P 500’s historical average since their inception^.v

“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, 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.”

“Over time Fidelity’s sector fund track record has had impressive performance,” said Chris Bartel, senior vice present, Global Equity Research, Fidelity’s Equity Group. “We have an incredibly deep bench of investment professionals that are both sector-based and globally focused, enabling them to find valuable sector-specific stocks that can deliver on behalf of shareholders.”

Pioneer in Sector Investing and Research
Fidelity’s Select Portfolios are designed to provide exposure to companies across each of the 10 major market sectors: consumer discretionary, consumer staples, energy, financials, health care, industrials, information technology, materials, telecommunications and utilities. The 10 broadly invested sector funds are supported by additional industry-specific funds that focus on a certain segment, or subsector, within the overall industry (e.g., gold, automotive, etc.). Subsector opportunities often are identified through a unique set of attributes, including a distinct cycle or growth opportunity.

A deep, global research team supports Fidelity’s portfolio managers, including more than 420 research professionals in Boston, London, Miami, Hong Kong, Tokyo and Toronto.^vi Organized by sectors, the research organization helps generate investment ideas from all over the world — in all sectors, styles and market capitalization ranges. For example, more than 30 analysts around the globe support the commodity sector.

“Many of Fidelity’s Select funds have largely outperformed their benchmarks over the long-term, delivering alpha during various market cycles,” said Hogan. “We believe our sector team can fine-tune the Select Portfolios and set them up to own both the best ideas and take advantage of the biggest opportunities in a particular sector.”

Following are the 30 equity sector investment themes identified by Fidelity’s sector team in the report “Equity Sectors: Investment Themes for 2012 and Beyond.” Learn more by clicking on the below icons.

Sector Investment Themes

Consumer Discretionary

• Internet disruption
• Sustainable revenue growth driven by emerging markets
• Strength in high-end consumers

Consumer Staples

• Growth in emerging markets
• Competitive industry structure
• Brand power

Energy

• The emergence of more productive new drilling techniques
• The growth of the liquid natural gas market
• The renaissance in deepwater exploration

Financials

• The growth of Chinese banks
• The age of austerity
• Potential restructuring of government sponsored enterprises (GSEs)

Health Care

• Increased health care utilization
• Deflationary business models
• Personalized medicine

Industrials

• Competitive threat from China
• Energy efficiency
• Infrastructure

Information Technology

• Cloud computing
• Software as a service
• Big data

Materials

• Agriculture demand
• United States as a low-cost chemical producer
• Gold as a reserve currency

Telecommunications

• Wireless data consumption
• Ownership of spectrum
• The opportunity in towers

Utilities

• Stricter environmental regulations and an expected shift in power generation
• Abundant low-cost natural gas
• Alluring yield growth
   

“Identifying the most compelling themes within each sector can be a critical component to the stock selection process,” said Bartel. “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.”

Investors can get a copy of the report and learn more about the Select Portfolios by visiting the sector page on Fidelity.com (additional sector performance information is available here). Financial advisors can get more information by visiting Fidelity Financial Advisor Solutions’ client web site (advisor.fidelity.com) or calling 800-544-9999.

About Fidelity Investments
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 November 30, 2011. Founded in 1946, the firm is a leading provider of investment management, retirement planning, portfolio guidance, brokerage, benefits outsourcing and many other financial products and services to more than 20 million individuals and institutions, as well as through 5,000 financial intermediary firms. For more information about Fidelity Investments, visit www.fidelity.com.

i The funds are ranked based on total return as of November 30, 2011. Each fund is ranked within a universe of funds with similar objectives. Rankings include the reinvestment of dividends and capital gains but exclude the effect of the fund's sales load, if applicable. Past performance is no guarantee of future results.
ii Strategic Insight as of February 28, 2011; the universe is all direct marketed, open-end mutual funds; includes commodity and global real estate funds.
iii As of November 30, 2011.
iv The funds are ranked based on total return as of November 30, 2011. Each fund is ranked within a universe of funds with similar objectives. Rankings include the reinvestment of dividends and capital gains but exclude the effect of the fund's sales load, if applicable. Past performance is no guarantee of future results.
v Source: As of November 30, 2011, Morningstar Direct and WebPV. Performance is annualized, net of fees. vi Research professionals include research analysts and associates and reflect the combined resources of Pyramis and Fidelity Investments as of September 30, 2011.

Before investing, consider the funds investment objectives, risks, charges and expenses. Please visit www.fidelity.com or advisor.fidelity.com for a prospectus or if available, a summary prospectus, containing this information.
 
Investment decisions should be based on an individual’s own goals, time horizon and tolerance for risk.

Past performance is no guarantee of future results.

Investing involves risk, including risk of loss. Diversification does not ensure a profit or guarantee against loss.

Because of their narrow focus, investment in one sector tends to be more volatile than investment that diversifies across many sectors and companies.

Shareholders may be subject to certain short-term trading fees. Please consult the prospectus for more information.

ETFs may trade at a discount to their NAV and are subject to the market fluctuations of their underlying investments.

The S&P 500® Index, a market-capitalization-weighted index of common stocks, is a registered service mark of the McGraw-Hill Companies, Inc. and has been licensed for use by Fidelity Distributors Corporation.

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