Citing New York State Attorney General Eliot Spitzer's charges against Canary Capital Partners and his related investigation into Janus, Bank of America's Nations Funds, Bank One and Strong, Morningstar has suspended its recommendation on the four families' funds indefinitely. Furthermore, Morningstar is urging investors to consider selling their shares in these funds. However, Morningstar said the funds will still qualify for its top "star" ratings, should they deliver performance that merits them.

"Spitzer has indicated that he is at the beginning of his investigation of the fund industry, but in our opinion, the evidence he has presented already is sufficiently damning for those implicated in his complaint," said Morningstar Analyst Brian Portnoy, in a piece posted on Morningstar's Web site.

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.