The EM equity exodus accelerated during the quarter, with outflows of $39.7 billion bringing year-to-date losses to $59.8 billion. The biggest losses were in Asia which saw outflows of over $20 billion.
The lossmaking streak now extends for 12 straight weeks for emerging equity funds, with $1.7 billion pulled out in the most recent week, BAML said.
Emerging bond funds shed $15 billion in the third quarter, versus $4.5 billion outflows in the first nine months of 2014. They have seen redemptions for 10 straight weeks, with $1.4 billion pulled out this past week.
Allocations to Brazil in emerging equity funds were on the brink of falling below 7 percent for the first time in more than a decade, EPFR noted, amid fears of a currency and political crisis in the country.
Brazil's bonds, equities and currency are among this year's worst performers.
"Latin America's largest economy currently offers investors a toxic mixture of stalled growth, political gridlock, soft demand for commodities, above-target inflation and sliding credit ratings," EPFR said.
Net capital flows to emerging markets will be negative this year for the first time since 1988, the Institute of International Finance said on Thursday, highlighting the extent of problems faced by the developing world.