As it begins to merge its own Nations Funds with the Columbia Funds it acquired through its FleetBoston Financial purchase, Bank of America is eliminating some of the poorly performing funds from Fleet.
However, according to the Boston Globe, some of the Nations Funds replacing the Columbia Funds aren't that much better.
BoA is taking 13 of the Columbia Funds and merging them into a similar fund from that family, and another 13 Columbia Funds and merging them into a like Nations fund. Nearly all of the surviving funds are larger, with slightly lower fees. Two fixed-income Columbia Funds, meanwhile, are being liquidated.
Trouble is, according to the Globe, most of the funds BoA is keeping on the table aren't exceptionally strong performers. Many of them have only two or three Morningstar star ratings. Two even have only one.