Investors pulled a combined $75 billion from U.S. and emerging market equity funds in the third quarter, wiping a record $10 trillion off the value of global equities in the period, according to EPFR Global and Bank of America Merrill Lynch.
In data released late on Thursday, Boston-based fund tracker EPFR Global said European and Japanese funds were the only equity classes to receive net inflows between July and September, most likely motivated by the possibility of more central bank money-printing.
Funds pulled $35.2 billion from dedicated U.S. equity funds over the quarter, according to EPFR, bringing year-to-date outflows to $138 billion.
That along with September losses in European markets has led to a $10 trillion drop in global equity market capitalisation, the largest quarterly fall ever, BAML said.
Global equity market cap now stands at $60 trillion, a two-year low, after peaking at $71 trillion in April, the bank said.
The latest week saw global equity fund redemptions of $6.6 billion, the bank said in its weekly report, which also uses EPFR figures. This coincides with a setback for European stocks that have been hit by troubles at mining firm Glencore and German automaker Volkswagen.
European equities remain broadly in favor however. Dedicated Europe funds saw tiny $20 million outflows in the past week, but Q3 inflows amounted to $31.3 billion or 190 percent of the full-year record set in 2013.
EPFR added also that Japan equity inflows of $25 billion were the biggest quarterly figure since it started tracking them at the start of 2002.
Japanese and European equities have absorbed $56.4 billion and $104.5 billion year-to-date, well above last year's levels, the data shows. U.S. outflows are running at $138 billion, dwarfing the $32 billion received last year.
"Mutual fund investors continued to pin what faith they have on markets and asset classes supported by robust quantitative easing programs," EPFR said.