Charles Schwab To Close Stable Value Fund
The Charles Schwab Corp. will be liquidating its $7.6 billion Schwab Stable Value Fund by April-end.
The Charles Schwab Corp. will be liquidating its $7.6 billion Schwab Stable Value Fund by April-end, Pensions & Investments reports. Charles Schwab provides securities, brokerage, banking, money management and financial advisory services.
The decision comes against the backdrop of an unfavorable climate for stable value products marred with low interest rates, and because of difficulties in obtaining needed wrap coverage. The funds clients have six months’ time to choose another capital preservation vehicle, such as a money market fund or another stable value fund on Schwab’s open-architecture platform.
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