Six months after they were named as part of the opening-round, Canary Capital portion of the mutual fund scandal, Bank One’s One Group funds are no longer sell material, a Morningstar analyst said on Friday.

By tackling its improper trading problems internally – first with an investigation, then with the firing of key executives, and later with the creation of chief compliance and chief legal officer positions – Bank One improved One Group funds to the point where they "can now be evaluated on their merits," according to Morningstar analyst Dan McNeela.

The One Group funds are original pieces of New York Attorney Eliot Spitzer’s attack against the fund industry’s credibility, though they have yet to become involved in any sort of legal action stemming from their association with Canary. Since September 2003, though, Morningstar had recommended that One Group shareholders consider selling.

Bank One’s preemption seems to be what swayed Morningstar the most in rescinding the sell recommendation. "Although industry regulators have not yet officially charged the firm with wrongdoing, One Group has taken many steps to win back investors' trust," McNeela wrote.

Subscribe Now

Access to premium content including in-depth coverage of mutual funds, hedge funds, 401(K)s, 529 plans, and more.

3-Week Free Trial

Insight and analysis into the management, marketing, operations and technology of the asset management industry.