Australian wealth management group Perpetual said its funds under management dropped 3.6 per cent in March as the domestic stock market fell and institutional clients withdrew investments.

The company said its funds fell to A$32 billion ($30 billion) as of 31 March from A$33.2 billion on 29 February.

Perpetual's announcement follows rival wealth funds manager AXA Asia Pacific Holdings' disclosure to shareholders that market conditions were challenging and would affect the short-term performance of companies in the financial sector.