Several large Australian global equities and fixed-income retail funds are expected to get hit after the bailout of insurance giant AIG and Lehman Brothers bankruptcy.
Axa's Global Equity Value Fund (GEVF) has 1.84 per cent of its over $4 billion funds under management (FUM) invested in AIG shares, the product's sixth-biggest holding at the end of August, Morningstar data showed.
AIG's shares, already down over 90 per cent, are expected to be severely diluted following an unprecedented US$85 billion loan rescue by the United States Federal Reserve.
The fund has plummeted 26.10 per cent for the year to August, while the MSCI World ex-Australia index has declined 16.99 per cent in the same period.
DWS Investments' Global Thematic Fund has less than 1 per cent of its $438 million FUM in AIG shares. The product has declined 21.29 per cent for the year to August 31.
Falkiner's Global Absolute Returns Fund has less than 1 per cent of its FUM invested in Japan's Mizuho Financial Group, which faces nearly $240 million in losses from the Lehman Brothers collapse.
Mizuho plunged 11 per cent when it revealed its Lehman Brothers exposure during Japan's Topix trading on Monday.
Ipac Asset Management's multi-manager international share strategy has AIG as its fourth-biggest holding at 1 per cent of FUM.
Vanguard Australian Fixed Interest Index and Vanguard International Credit Securities Index (Hedged) Fund have 0.17 per cent and 0.33 per cent in Lehman Brothers bonds.
Colonial First State has also admitted it has exposure to bonds of Lehman Brothers, Merrill Lynch, AIG and Washington Mutual within its fixed interest products.
