Emerging market equity funds continued to see outflows as investors pulled out $1 billion last week on worries over Eurozone debt crisis.
This was the second straight week of outflows from the emerging market equity funds. Investors withdrew $1.64 billion in the week ended May 18.
During the week ended May 25, emerging market equity funds lost $1 billion, taking the year-to-date net redemptions to $8.6 billion, according to the data complied by the international fund tracking firm EPFR.
"Concerns about the impact of Eurozone debt crisis on regional growth and the willingness of richer European countries to support the development of poorer ones hit emerging market equity funds hard," the report noted.
The funds investing in Russia have fared well until recently. China, Brazil, India and Russia dedicated equity funds have posted year-to-date outflows ranging from $449 million to USD 2.6 billion.
Besides, Asia-excluding Japan equity funds were the only major emerging markets fund group to post inflows during the week under review as some investors decided that the recent correction has created some value.
Overall, global equity funds posted collective outflows for the week of $9.27 billion as they extended their longest outflow streak since late third quarter of 2010, while bond funds took in a net $4.53 billion.
In developed countries, Japan and Europe equity funds too witnessed an outflow during the week ended May 25.
The report attributed the outflows from developed nation to Greece's debt problems and weaker economic growth in key markets.
In terms of sectors, maximum investors pulled money out of financial and healthcare segment.
