Global equity funds recorded heavy disposals in the week ended Aug. 31, on concerns that major central banks would continue to hike rates, with inflation levels showing no signs of abatement.

Investors jettisoned global equity funds worth $21.41 billion, posting their biggest weekly net selling since the week ended June 15, data from Refinitiv Lipper showed.

Last week, Federal Reserve Board chair Jerome Powell said the U.S. central bank will raise rates as high as needed, and that people should not expect it to dial back its monetary policy quickly until inflation is fixed.

Economic data from the euro zone this week signaled the region's inflation scaled a record high in August, while another set of numbers from the United States showed that job openings had increased in July.

Investors offloaded European and U.S. equity funds worth $12.64 billion and $10.21 billion, respectively, but purchased funds worth net $1.51 billion in Asia.

Healthcare and tech sector funds suffered withdrawals of $522 million and $414 million, respectively, although financials recorded $989 million as inflows.

Bond funds also recorded outflows, amounting to $6.46 billion in a second straight week of net selling.

High yields and short- and medium-term bond funds faced outflows of $5.44 billion and $2.46 billion, respectively, but government- and inflation-linked funds received inflows of $1.3 billion and $162 million.

Money market funds were also out of favor, as investors sold about $1.34 billion in their fourth consecutive week of net selling.

Data of commodity funds showed precious metal funds recorded outflows of $890 million, the biggest net selling in six weeks, while energy funds posted an outflow of $118 million.

An analysis of 24,482 emerging market funds showed equity and bonds faced outflows worth $738 million and $933 million, respectively.