Global equity funds witness biggest-ever exodus

Globe

Investors yanked $29.5 billion out of global equity funds in the week that ended Aug 26, the biggest single-week outflow on record as markets around the world over went into meltdown mode, according to data from Citi.

On a regional basis, U.S. funds suffered the highest level of outflows at $12.3 billion, followed by Asia funds, which saw $4.9 million in redemptions.

European funds, which broke their chain of 14 weeks of inflows, witnessed $3.6 billion in outflows for the week.

Concerns around the outlook for the Chinese economy and jitters around the U.S. Federal Reserve's impending rate hike have sent global markets into a tailspin over the past week.

The MSCI World Index and MSCI Emerging Market Index both slid over 7 percent between August 19 and August 26.

China, the market at the heart of the global selloff, saw losses of a far higher magnitude.

The notoriously volatile benchmark Shanghai Composite tumbled 22 percent over this period, leading to outflows of $1.2 billion from China and Greater China funds during the week.

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