Five income stocks Majedie's Reid is backing to outperform

Chris Reid, manager of the Majedie UK Income fund has revealed five key stocks that he expects will help his fund maintain its top ranking in the UK Equity Income sector in the coming year.

Following last month's shock announcement that Neil Woodford is to leave Invesco Perpetual in April, some investors have started looking for alternatives to his popular Income and High Income funds. Majedie's has returned 39.4% over the year to 18 October, according to Morningstar, while Woodford's Income and High Income funds have lagged the sector, returning 23.7% and 23%, respectively. Reid (pictured) focuses on looking for undervalued companies that are about to undergo a transformation, and are generating income along the way. While his fund has outperformed the majority of co...