How the Fund diversifies.Why it matters.
Most mutual funds make it possible for investors, including those with small- and medium-sized portfolios, to diversify their holdings at an affordable cost. Each and every Fund share represents a spread of securities, which could help lessen the impact of the fluctuations of any one security. Of course, diversification cannot prevent fluctuations and possible market loss, but it is recommended as a wise investment step.
Since the Energy Alternatives Fund emphasizes holdings in the specific area of sustainable investing, it diversifies by hunting for opportunities around the globe and by including three types of energy-related investments: eco-technology leaders, critical-path companies, and resource-based investments (see "three-tiered sustainable investing strategy").
Diversification matrices
The matrices below illustrate how the Fund spreads its portfolio holdings among (1) regions of the world such as North America including the United States, Central and South America, Europe, Asia, and Australia; (2) the three types of sustainable energy investment opportunities described in the three-tiered strategy; (3) some 15 categories of energy-related companies such as solar investments, wind investments, and utilities. Fund diversification changes to adapt to changing market outlooks.While diversifying internationally poses its own set of risks, it also offers opportunities not available in the U.S. Percentages as of 7/1/08
Fund holdings and sector allocations are subject to change at any time and should not be considered a recommendation to buy or sell any security.