Perpetual is the latest fund manager to post outflows as institutional and retail investors fled equities in favour of cash and other safe havens.
The company's funds under management (FUM) for the three months to 31 December fell to $22.9 billion from $23.5 billion the previous quarter.
It said the FUM decline over the quarter stemmed mainly from $900 million in outflows, including $800 million from equities. It said the outflows were largely from its concentrated equity strategy and half the total equities outflows came from institutions.
"It's something the industry as a whole has been grappling with," a Perpetual spokesman said.
Europe's debt woes have made investors even more skittish on equities than they already were, and cash levels have soared as a result.
BT Investment Management reported about $700 million in outflows over the three months to 31 December, but market performance offset the decline, leaving its FUM unchanged over the quarter at $32.7 billion.
Earlier this month, Platinum Asset Management unveiled a slide in December FUM to $15.14 billion from $15.51 billion in November. It also signalled a drop in half-year consolidated operating profit on the back of falling average daily FUM over the six months to 31 December.
However, Perpetual has had additional pressure on flows.
Asked whether the outflows were due in part to news that gun fund manager John Sevior would not return to Perpetual, the spokesman said the matter was "old news to our clients", who had largely reshuffled positions in July.
Perpetual's total FUM over the three months to September fell $3.7 billion.
The spokesman added Perpetual had nearly completed the overhaul of its marketing and distribution teams, which the company regarded as key to inflows.
"We are hoping to finalise that by the end of next month and it is possible that would involve attracting some people from outside," he said.
However, he said investor sentiment was the missing ingredient. "When are you going to see flows turn? That will be a combination of improving market sentiment and a better marketing and distribution capability. You need both," he said.
