Barclays Global Investors is ceasing its role as a sub-advisor to two small index funds, the $10 million E-Trade Technology Index fund and the $18 million USAA Global Titans Index fund, Reuters reports. In addition, the firm plans to back off of at least two other funds, Barclays spokeswoman Christine Hudacko told Reuters.
"When we began the relationship with [ E-Trade and USAA], both of [the firms] had the intention that assets would grow, but it just didnt materialize," Hudacko told Reuters. "It just wasnt economically feasible."
Barclays, which sub-advises $24 billion worth of assets for other companies, will cease its relationship with at least two of these firms, Hudacko said. She declined to name them but said an announcement would be made shortly.
USAA said it is closing the Global Titans fund because it has been unable to find another manager. E*Trade, meanwhile, is moving management of its Technology Index fund to a division of Munder Capital Management.