By Laurence Fletcher

LONDON (Reuters) - British fund managers cut equity holdings to a 12-month low and raised bonds in June and said it was still too early to buy battered financial stocks as markets sank on fears of further writedowns.

A poll of 12 fund management firms, conducted between June 18 and 29, showed equity holdings fell to 65.8 percent in June from 70.6 percent in May, while bond positions rose to 20.9 percent from 16.3 percent.

Cash positions fell to 8.0 from 9.7 percent.

On a like-for-like basis, bond holdings still rose and equities and cash fell, but by smaller amounts.

The survey came as the FTSE 100 .FTSE index, which is down around 8.5 percent over the past month, fell on fears that the credit crisis was not over and that banks and other financials would have to reveal a further round of writedowns as economic conditions deteriorated.

Asset allocators said battered financial stocks, many of which stand on low single-digit price/earnings ratios, still did not look good value.

"It's still too soon to buy financials. More bad news is to emerge," said Robert Talbut, chief investment officer at Royal London Asset Management.

Andrew Cole, director of asset allocation at Baring Asset Management, said financial firms looked set for further fund raisings from investors.