Before Monday’s opening bell, KeyBanc lowered its rating on Tiffany & Co. Here’s what the move means for mutual fund investors.

KeyBanc has downgraded Tiffany & Co. (TIF) from “Buy” to “Hold.”

According to analyst Edward Yruma : "Among the key themes for ‘15 we have identified within our Softlines coverage (detailed below), we highlight the likelihood of slower spending growth within the higher-end demographic in critical international geographies, namely Europe, Japan, and China. Given its overlap/leverage to this dynamic, we downgrade TIF from Buy to HOLD, citing potential for weakness overseas to impact EPS growth in FY15. We now believe upside in shares is more limited despite continued momentum in its Americas region, strong innovation within its fashion jewelry collection, and brand strength. We think BUY-rated WWW (NYSE: WWW) and LULU (Nasdaq: LULU) present particularly compelling opportunities for ’15.

“TIF updates investors on Jan. 12th with its F4Q sales through Dec. While the Company will not provide its initial FY15 EPS outlook until it reports final F4Q results (in Mar.), our analysis suggests that continued sluggishness in Europe, Japan, and China could lead to a $0.30+/sh. headwind relative to our base case FY15 EPS scenario. Our current FY15E is $4.78 (FC $4.91).”

While we do not argue with the valuation call, we see the international concerns as partially overblown. We agree that concerns will continue in Europe, but the Japan and China markets should offset some of the weakness in Europe.

This stock may be more attractive to a fund manager on a pullback. Until a pullback occurs, this stock may be off the radar for some fund managers.

For investors seeking exposure to TIF, a mutual fund investment may be a good alternative. The funds below currently own the largest stakes in the company.

The funds listed above allow investors to gain exposure to TIF while remaining diversified. Investors interested in TIF may also be interested in Signet Jewelers (SIG).