Standard & Poors of New York announced last week that it had removed its 'Select Fund' designation from the Fifth Third: Pinnacle Fund/A, a series of Fifth Third Funds, of Pittsburgh, because of its continuous under-performance in comparison to funds with the same investment style.
Standard & Poors 'Select Funds' is a trademarked label awarded to a small number of funds whose consistency of performance and quality of management indicate a continuing level of excellence, according to Standard & Poor's . About 300 mutual funds have been awarded the status.
Fifth Third: Pinnacle Fund/A received the designation in March 1999. Since then, it has under-performed its large cap growth competitors in each of the past two years, Standard & Poors announced.
The funds under-weighting in technology hurt the fund in 1999
and its increased weighting in technology in 2000, both hurt the fund, said Rosanne Pane, director of fund services for Standard & Poors.
Removal of the 'Select Fund' designation is not permanent, Standard & Poors said. However, funds seeking 'Select Fund' reinstatement must pass once again Standard & Poors criteria that require a complete review of the fund and a reassessment of the stability of the management team and investment process, according to Standard & Poors.