Morningstar has downgraded the £223.2m Edinburgh Worldwide Investment Trust but said it still thinks “shareholders are in good hands”.
The rating agency had put its silver rating on the investment trust under review following the trust’s mandate change in January 2014.
The mandate change saw the trust change from a global large-cap equity trust to a global small cap trust.
Baillie Gifford remained as managers of the trust but Douglas Brodie took over from Mark Urquhart, with John MacDougall coming in as deputy manager.
Morningstar has downgraded the trust from a silver rating to a bronze rating following its review.
However, Morningstar analyst Szymon Idzikowski was positive about the outlook for the trust.
He said: “Both managers are experienced investors who are well supported by both the fund house and the board.
“Their process is thorough and robust and the fund benefits from a simple, shareholder-friendly and competitive fee structure.”
A spokesperson for Baillie Gifford said the trust’s mandate had changed because the “board and ourselves felt that the trust needed greater differentiation in the market place if it were to be attractive to investors over the long term”.
The spokesperson added: “The change was well received by investors and the discount has subsequently shrunk to low single figures.
“Morningstar have acknowledged the change and downgraded their rating on a wait and see basis.”
