Charles Schwab Investment Management of San Francisco is taking steps to provide more investment flexibility for the managers of Schwab's four MarketManager funds of funds.

Schwab is asking the SEC for an exemption from federal securities laws that would allow the MarketManager funds to buy more than three percent of the outstanding shares of other funds in which the MarketManager funds invest, according to an application Schwab filed with the SEC Oct. 1. The application, if approved, will enable managers running the MarketManager funds to take a bigger stake both in other Schwab funds and non-Schwab funds in which the MarketManager funds invest, said Morrison Shafroth, a Schwab spokesperson.

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