Funds to run fixed income for Schwab

Eight fund companies will run a $3.3 billion fixed income fund for Charles Schwab Corp., John Sturiale, a senior Schwab executive told Reuters.
Dwight Asset Management Co., a wholly owned but independently operated subsidiary of the London-based Old Mutual Plc., will run the biggest part of the fixed income Charles Schwab Stable Value Fund — about $1.3 billion.
Schwab, a San Francisco-based stockbroker, picked Standish Mellon Asset, a Bank of New York Mellon Corp. unit, and Lehman Brothers Asset Management Co., associated with Lehman Brothers Holdings, Inc., to run about $495 million each of the fund, Mr. Sturiale told Reuters.
The investment firm also chose Dodge & Cox, Western Asset Management Co., Aberdeen Asset Management, Loomis Sayles & Co., and PIMCO to run the fund’s different segments.
Different managers running the fund will cushion it against too much risk.