Fund manager Perpetual has blamed a weak local sharemarket for a 2.7 per cent drop in its June quarter funds under management.
The fall puts the group's portfolio for the period at $25.3 billion - down from $26 billion in the March quarter.
Perpetual said the decrease was due in part to a lower domestic equity market, which it said ripped a $200 million chunk out of its portfolio. However, the group said this was partly offset by extra returns delivered by the majority of the group's Australian Equity funds.
Perpetual also blamed net fund outflows for $500 million of its losses for the period. It said $200 million had been taken out of its equities asset class, and $200 million from its cash and fixed income asset class.
Fund managers get a commission for the size of their portfolio, therefore a decrease in funds represents a smaller commission.
Despite the quarterly fall, the group's funds increased on a year-on-year basis by 11.9 per cent - or $2.7 billion - from $22.6 billion in the previous year.
Perpetual said its fund ratings for the quarter were strong, with its Diversified Funds and the Pure Equity Alpha Fund receiving upgrades and all other funds maintaining their ratings.
Perpetual shares closed 1.59 per cent down at $39.51 in Friday's trading.