Insights from Fidelitys portfolio manager Preeti Sayana

The economics of solar energy have transformed dramatically, according to Fidelity Portfolio Manager Preeti Sayana, who believes generating power from the sun is no longer just an environmentally conscious choice, it is now a cost-competitive alternative to traditional fossil fuels in a world starved for reliable, affordable power sources.

“The sun is rising on a new era of energy, and with it may come a meaningful investment opportunity,” says Sayana, who manages Fidelity^® Women’s Leadership Fund (FWOMX). “Capital typically flows to where potential returns are strongest, and solar-related stocks have demonstrated significant strength of late.”

Launched in 2019, the fund is a thematic equity strategy dedicated to advancing women’s leadership and gender diversity. Accordingly, Sayana seeks companies with women in key roles in the C-suite, firms with at least one-third of their board seats held by women, and businesses with best-in-class gender-diversity initiatives.

Sayana points out that solar energy has shone bright in recent months, with several indicators seemingly overshadowing negative political rhetoric and a general lack of enthusiasm for renewable energy and sustainability trends.

“China now generates roughly 25% of its power from solar, gaining independence from foreign oil and securing access to cheap, reliable energy,” explains Sayana. “Meanwhile, demand has surged in the U.S., with backlogs in gas turbine production stretching into 2030, putting solar power in what I see as a potentially unique position to fill that gap.”