So far this year, the spotlight has been on oil prices, but natural gas prices have fallen as well. This week, we have chosen the Fidelity Select Natural Gas Portfolio (FSNGX) as the fund of the week.
Inside the Fund
The fund was launched in 1993 and is managed by Ted Davis. Currently, it has about $510 million in assets under management (AUM).
The fund is comprised primarily of U.S-based holdings in the energy sector. To the right is a 1-year chart of the U.S. National Average Natural Gas Price.
Historical Performance
| 2010 | 2011 | 2012 | 2013 | 2014 |
|---|---|---|---|---|
| 6.43% | -7.67% | 2.44% | 24.66% | -13.29% |
Fidelity Select Natural Gas Portfolio’s Largest Holdings
Over 35% of the fund’s portfolio are in its top five holdings. The majority of these holdings are flat so far in 2015. YTD, the fund is up about 1%.
| Symbol | Stock | Portfolio Weight | 2015 Performance |
|---|---|---|---|
| BHI | Baker Hughes | 8.92% | +9% |
| DVN | Devon Energy | 8.41% | +5% |
| ECA | Encana | 6.73% | -3% |
| CNQ | Canadian Natural Resources | 6.56% | - |
| SWN | Southwestern Energy | 5.19% | - |
The Bottom Line
While we are not bullish on this fund, it is an interesting sector to look into. For more information, check out Beginner’s Guide to Commodity Mutual Funds.
