Fidelity Global Innovators Class
- Morningstar Medalist Rating: Silver
- Morningstar Rating: ★★★★★
- Morningstar Category: Global Equity
- MER: 1.1%
Fidelity Global Innovators, including its exchange-traded fund, earns an upgrade to its People Pillar rating to High from Above Average, reflecting portfolio manager Mark Schmehl’s many strengths. A drop in the Morningstar Medalist Rating of several share classes is not caused by diminished conviction in the strategy’s People or Process ratings but reflects a change in the way Morningstar calculates the excess return opportunity for funds.
Mark Schmehl has managed this strategy since its 2017 inception. He draws on decades of investment experience and broad sector knowledge developed since joining Fidelity in 1999. He also runs other successful funds, including Fidelity Canadian Growth Company and Fidelity Special Situations. His background and experience fuel the strategy’s requirement for fast thinking, high conviction, and familiarity with multiple areas of the market. Schmehl works closely with Fidelity’s massive team of experienced analysts.
Schmehl’s process is hard to replicate. It focuses on companies with weak fundamentals that are starting to improve, as well as firms at the forefront of innovation with high expectations. The fund usually favors the latter, driving a momentum bias, but Schmehl has shown skill in guiding the high-octane strategy with the necessary conviction. Risk management relies on his judgment and swift sell discipline, which has helped limit downside. He is comfortable with lofty valuations and will likely underperform the market when cheap stocks are in vogue.
Fidelity Global Innovators can invest globally, but US stocks have typically accounted for 80%-95% of assets, reflecting Schmehl’s awareness of the strategy’s Nasdaq Composite Index benchmark. Schmehl has shown flexibility, however, going beyond typical growth sectors to invest meaningfully in areas like energy and regions outside the US at times.
Performance has been outstanding under Schmehl. From December 2017 through September 2025, the fund’s F series returned 24.4% annualized, well ahead of the global equity Morningstar Category average of 9.0%, the Morningstar Global Markets Index’s 12.0%, and the Nasdaq Composite Index’s gain of 18.6%.
Investors should carefully weigh the potential for strong returns against the fund’s high volatility and active risk. Schmehl’s central role here makes key-person risk significant; under a different skipper, the strategy’s prospects could change materially.
