It is a small part of a big deal but Charles Schwab Corp.'s announcement that it would acquire U.S. Trust Corp. of New York means Schwab will wind up doing something it has tried to avoid.

When the $2.7 billion acquisition is complete, Schwab, of San Francisco, will own U.S. Trust's small, actively-managed fund group, the Excelsior Funds. Excelsior includes 27 no-load funds with approximately $8 billion in assets under management, according to the company.

Traditionally, Schwab has avoided offering its own actively-managed funds so as not to antagonize the actively-managed outside funds that sell through Schwab's mutual fund supermarkets. Instead, Schwab has built its fund business primarily using index funds, money market funds and funds of funds.

Schwab will keep the Excelsior funds under a separate brand name, a Schwab spokesperson said. The operation of the Schwab and Excelsior funds will also remain separate, the spokesperson said.

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