Net inflows to international and global equity mutual funds are projected to approach $150 billion this year, which would be a 40% increase from last year, Strategic Insight estimates.

"Inflows to international equity funds in 2005 exceeded those to U.S. equity funds. And global diversification efforts will continue in 2006 due to rising recommended allocations to such funds," said Avi Nachmany, Strategic Insight's director of research. But despite recent gains, only 18% of all equity fund assets are invested in international equity funds, he added.

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