Barclays Global Investors is losing a subadvisory mandate of some $1.9 billion for Well Fargo. The loss comes as Wells Fargo is moving the assets of three funds to its internal asset management unit.

Wells Capital Management will take over the subadvisory role on Wells Fargo Asset Allocation Fund, Wells Fargo Index Allocation Fund and Wells Fargo Variable Trust Asset Allocation portfolio if shareholders approve the change as expected at the firm's March 8 shareholder meeting.

The funds' trustees said in filings that they made the switch because Wells offered a superior asset allocation model than Barclays. The trustees will also replace Barclays as the custodian of the funds with Wells Fargo Bank.

However, industry sources suggest that the move was also made to recapture the asset management fees paid by the fund to Barclays. Those fees came to $2.9 million during the twelve months ended in September.  

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