The pool of money managed by Australia's managed funds fell 2.4 per cent, or $22 billion, to $936 billion in the June quarter, the first quarter of negative growth since September 2010, according to a Morningstar report.
"Domestic and international share markets experienced significant volatility during the June 2011 quarter, which resulted in a combined $17.20 billion flowing out of Australian and international equities," Morningstar associate analyst Jemima Joseph said in the report.
"Cash and mortgages have both endured four consecutive quarters of asset reductions, $16.50 billion and $3.30 billion flowing out of these asset classes over the last financial year."
Meanwhile, Commonwealth Bank of Australia's (CBA) share of Australia's $936 billion managed fund market fell slightly to 10.2 per cent in the June quarter, but it remained Australia's biggest fund manager.
CBA and its Colonial First State wealth management arm had a total of $95.8 billion in managed fund assets as of 30 June, down $2.7 billion over the quarter.
"Commonwealth/Colonial still maintained a $35.10 billion lead on State Street, the second-largest manager at 30 June 2011," Joseph said.
AMP Group remained the nation's biggest retail fund manager with 18.2 per cent of that market, and CBA was the biggest wholesale manager with 18 per cent of Australia's $225 billion wholesale funds under management.
National Australia's Bank's MLC/Navigator Group remained the country's largest platform manager with $109.2 billion, or 24 per cent, of the nation's total $450.5 billion in funds under administration (FUA) as of 30 June.
"Despite its stranglehold on this market, the shop's market share fell by 0.2 per cent to 24.2 per cent at 30 June 2011," Joseph said.
She said CBA and Perpetual were the only top 10 managers measured by FUA to increase their market share and size over the quarter.
"Perpetual was the notable outlier, recording a $4.1 billion increase in FUA over the June 2011 quarter, or a 0.91 percentage point increase in market share," she said.
