Baillie Gifford is to take over management of the £227 million Witan Pacific Investment Trust and focus its holdings predominantly on Chinese stocks.
The trust's board decided to drop fund manager Witan after it consistently underperformed its benchmark.
The fund will be renamed Baillie Gifford China Growth Trust PLC. The trust said it hoped the brand would attract new investors.
Chair Susan Platts-Martin said it had selected Baillie Gifford because of the Edinburgh-based manager's track record in Far East investment, particularly the Baillie Gifford China Fund.
She said: "Following an extensive and competitive review of the Company's management arrangements, the Board is pleased to appoint Baillie Gifford as the Company's investment manager, subject to certain Shareholder approvals.
"The Board believes that China provides a compelling investment opportunity that is currently underrepresented in global portfolios. China's domestic stock market and economy have grown to become the second largest in the world and we believe that China will be one of the most important markets of the next decade.
"We are delighted that the Company will be able to access Baillie Gifford's proven experience investing in China given its strong track record in this area. The Board believes that the move to a China growth strategy will provide Shareholders with a truly differentiated investment proposition that should lead to a tightening of the discount and growth of the Company through superior investment returns."
