10 Questions With Utilitarian Bern Fleming

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Bern Fleming used to work in a nuclear sub. Now he runs a utilities fund, which hasn't felt much safer this year.

Utilities used to be thought of as a sleepy pocket of the market reserved for widows and orphans, but that's not the case today. Between the telecom sector's collapse, the California power crunch and the bankruptcy of energy trading giant Enron(ENE Quote), the sector is looking downright volcanic. The average utilities fund has lost a quarter of its value over the past year, and averages a 3% annual loss over the past three years.

To sort through this mess we sat down with Bern Fleming, who has run American Express'(AXP Quote) (INUTX Quote)AXP Utilities Income fund for seven years. Unlike some of his colleagues, the former engineer doesn't make outsize bets on companies or industries, and his diversified approach has worked out pretty well. The fund tops its average peer over the past one, three and five years.

But like most utilities funds, his is under water this year, and he's not afraid to point out the sector's "Enronitis." What's he buying, what's he avoiding, and what does he see down the road? Read on. ...