Funds under management (FUM) across superannuation and wholesale trusts have fallen for the third consecutive month, according to data from research firm, Dexx&R.
The Dexx&R Wholesale Pooled Funds Report found for the 900 funds it covers, total FUM had fallen by 2.5 per cent during July 2008 - from $294.4 billion to $287 billion.
Property FUM dropped 2.6 per cent to $16. 9 billion for the month of July, and fell a substantial 26.6 per cent from $23.1 billion in the 12 months from July 31, 2007.
Many of these property funds are invested in listed property trusts and have decreased significantly due to a rapid fall in the value of companies like Centro, Dexx&R managing director Mark Kachor said.
Australian Shares FUM were down 6.4 per cent to $68.2 billion for the month of July, and international shares FUM declined 1.2 per cent to $88.9 billion.
The multi-sector market bucked the trend with an increase over the past year, despite a decrease of 1.3 per cent since June 30, 2008. Multi-sector FUM were $47,295 million at July 31, 2008, up 2.3 per cent from the same time last year.
"Multi-sector funds have performed better because they are diversified and have less exposure to equity-type investments," Kachor said.
Across the 900 funds monitored by Dexx&R, the net cash flow for the 12 months to July 2008 was $-6.5 billion.
