Among those he classed as ‘dinosaurs’ were BP, Shell, Vodafone, GlaxoSmithKline and AstraZeneca, which he said were ‘not disasters, but persistent losers’.
King said bonds would face more of a struggle this year than in 2012 and he was looking to commodities and alternatives to hedge against that.
‘We are ever hopeful of seeing some movement in the gold price. We also like the platinum and palladium price,’ he said. ‘There might be a spike in oil, we like infrastructure funds in the long term and we are keen on private equity.’
King holds physical gold and gold mining equities, and said that both continued to be disappointing. While he has nudged up his equity weighting, he had chosen gold rather than cash as an insurance policy.
‘On fully invested funds we have pushed cash down as far as 1%, as we would rather hold gold,’ he said.