2. JPMorgan Equity Income Fund Class A (NASDAQ:OIEIX)
JPMorgan Equity Income Fund Class A (NASDAQ:OIEIX) is a New York-based mutual fund that invests at least 80% of net assets in companies that pay a regular dividend. The fund mostly invests in large-cap firms though it is also allowed to invest in smaller firms.
JPMorgan Equity Income Fund Class A (NASDAQ:OIEIX) has more than $46 billion in net assets under management with a holdings turnover of 22%. The expense ratio for the fund is 0.98%.
A top holding of the fund is UnitedHealth Group Incorporated (NYSE:UNH), the Minnesota-based healthcare firm. At the end of the third quarter of 2021, 95 hedge funds in the database of Insider Monkey held stakes worth $11.7 billion in UnitedHealth Group Incorporated (NYSE:UNH).
In its Q2 2021 investor letter, ClearBridge Investments, an asset management firm, highlighted a few stocks and UnitedHealth Group Incorporated (NYSE:UNH) was one of them. Here is what the fund said:
“A good way to conceptualize how we think about portfolio construction is to picture a pyramid. At the bottom of the pyramid are the durable compounding growth companies that form the strong foundation, resilience and consistency for the Strategy. We think these companies should comprise just under half of portfolio assets and feature annual revenue growth rates ranging from two times GDP up to 20% as well as healthy free cash flow generation.
UnitedHealth Group Incorporated (NYSE:UNH), a name we have owned in the Strategy since 1992, is a good example of a long-term compounder, having grown its revenue base from approximately $600 million to north of $260 billion over that time frame. UnitedHealth Group Incorporated (NYSE:UNH) remains constantly focused on investing in new growth drivers such as telemedicine and health care analytics. Broadcom and Comcast have delivered similar long-term appreciation through a combination of organic growth, capital deployment into new and adjacent opportunities through merger and acquisition activity as well as returning capital to shareholders through buybacks and dividends.”
