CORRECTED-Investors keep faith with U.S. and EM stocks- BAML
(Corrects second par to clarify weekly flows data)
By Claire Milhench
LONDON Aug 19 (Reuters) - Equity funds attracted $5.1 billion of net inflows this week, building on last week's $6.5 billion of inflows as investors continued to pile into U.S. and emerging market stocks, Bank of America Merrill Lynch (BAML) said on Friday.
The combined $11.6 billion is the largest two-week inflow in the year to date, BAML said. In the week to Wednesday, EM equity funds pulled in $5.1 billion and U.S. equity funds $1.9 billion, partly offset by outflows from European and Japanese equity funds.
Emerging market stocks funds are in their seventh straight week of inflows, totalling $14.6 billion - their best inflow period since September 2014.
The benchmark emerging equity index is up over 14 percent so far this year as investors have chased the rebound after three years of losses.
The risk-on move chimed with the findings of BAML's latest fund manager survey, published on Tuesday, which showed investors cutting cash positions and taking a more optimistic view of the global economy.
"Investors (are) significantly less bearish but not yet euphoric," BAML's global strategy team, led by Michael Hartnett in New York, said in a note to clients.
EM debt funds continued to pull in money, with $2 billion of inflows in the week to Wednesday, the bank, which also uses data from Boston-based EPFR Global, said. Total inflows over the past seven weeks stand at $20.2 billion, the largest on record. Continuación...