UK All Companies managers are in fear of further fall in financial stocks

Latest Morningstar figures show a sector-wide avoidance of financials stocks by majority of UK equity managers

UK equity fund managers are nervous of bank stocks, despite low valuations, fearing further drops in 2009. Funds in the IMA's UK All Companies sector range from around 1.5% to 44% in financials, according to latest Morningstar figures, which vary by fund from the end of September 2008 to the end of January 2009. The smallest allocation is Marlborough's UK Large Cap Growth fund, which was at 1.68% at the end of December. Manager Greg Bennet says it is now closer to 1%, all in the London Stock Exchange, which he claims is set to benefit from rights issues in 2009. But he warns against...