Equity Mutual Funds Post Second-Biggest Weekly Inflows

Equity mutual funds recorded the second-highest inflows on record in the first week of the year as stocks rallied on signs that the global economy is gaining momentum.

About $22 billion flowed into equity funds around the world, according to data compiled by research firm EPFR Global going back to 1996. Emerging-market equity funds took in the most money on record in the week ended Jan. 9, Morgan Stanley wrote in a report today that cited EPFR data. The MSCI All- Country World Index (MXWD) jumped 3.1 percent in first week of 2013 and the Standard & Poor’s 500 Index reached a five-year high yesterday.

The flows represent a turnaround for investors who have pulled cash from U.S. shares, the world’s biggest equity market, for the past six years. About $150 billion was withdrawn from mutual funds that invest in American stocks in 2012, according to data from Washington-based Investment Company Institute.

The record for equity fund inflows globally was the third week of September 2007, when $23 billion was added, the data show.

To contact the reporter on this story: Alexis Xydias in London at axydias@bloomberg.net

To contact the editor responsible for this story: Lynn Thomasson at lthomasson@bloomberg.net

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