The Cleveland Foundation, the nation's second-largest charitable foundation with $1.5 billion under management, didn't waste any time joining the three-month-old Merrill Lynch Community Charitable Fund.

Merrill's new separately managed product is designed to compete with Fidelity's Charitable Gift Fund, which has more than $2 billion in assets. However, unlike the Fidelity fund, Merrill's donor-advised fund does not create a proprietary gift fund. Instead, it uses its network of brokers and strengths of existing community foundations.

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.