The recommendation follows the introduction of new regulation and legislation which could impact certain sectors, including the dispute over energy prices and measures introduced in last month’s Budget.

The wealth manager said the outlook for utilities companies is improving following a low in January, driven partly by a recovery in Centrica and SSE as political risk becomes priced in, and helped further by the recovery in water stocks as Ofwat’s regulatory review provided some clarity.

However, it warned investors should be wary of the ramifications of Scottish independence, which could result in stranded generation and network assets.

The firm said the retail sector was being bolstered by improving sales growth, particularly at large industry players Kingfisher and Next. However, it cautioned the sector’s valuation remains high relative to its history. 

Regarding mining companies, Brewin Dolphin said commodities and companies could benefit from a cyclical rally. It said the higher quality miners have improved capital discipline, cut capital expenditure and are now free cash flow positive.

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Meanwhile, the wealth manager has downgraded pharmaceuticals and life insurance companies.

It said a recent rally in the pharmaceutical sector has left the short term growth outlook poor for this year, while relatively full valuations and uncertainty introduced by the 2014 Budget are negatives for life insurers.