Schwab Gets Mutually Exclusive

In your face, Fidelity. On May 9, giant discount broker Charles Schwab will expand OneSource, its successful no-broker-fee mutual-fund service, to institutional customers such as 401(K) plans. In a display of muscle aimed at grabbing the prized pension dollar, OneSource has bagged exclusive no-fee broker's rights to offer some hot funds. That's 34 of its 78 funds enlisted for the institutional market so far. Schwab execs pointedly note these funds--including Alger, SoGen, and Vista--aren't available from its main competitor, Fidelity Funds Network, the mutual-fund brokerage arm of the Fidelity fund family. Plus, many institutional OneSource funds are dropping their sales loads for OneSource clients.

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