Subadvising other distributors index funds is apparently no longer as attractive a proposition as it once ways. That is the takeaway from the recent decision by Barclays Global Investors to drop at least four funds from the roster of those for which it acts as subadvisor.

The decision by the San Francisco-based asset manager to cut back on the number of outside funds it advises came to light when two firms filed paperwork with the SEC notifying shareholders of the change in subadvisors.

Palo Alto, California-based E*Trade hired Munder Capital Management's World Asset Management to take over from Barclays as subadvisor to its $10 million E-Trade Technology Index. Meanwhile, USAA decided to close its $18 million Global Titans Index when it could not find a suitable subadvisor to replace Barclays.

The remaining two funds dropped by Barclays have yet to file paperwork with the SEC. Barclays is expected to announce their identities soon. Barclays spokespeople have told reporters that the firm decided not to renew the contracts with the funds because they lack assets and show no signs of growth.  

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