Financial stocks still hold a dominant 22 per cent position in the UK All Companies sector, forcing fund managers to show their hand. To underweight or overweight, that is the question.

For the £941m (€1bn, $1.5bn) Newton Income fund, a thematic fund that benefited from its since retired debt and credit theme, underweighting banks bolstered performance last year, but March’s bounce in cyclicals and financials hit hard.