The Reaves Utility Income Fund (NYSE MKT: UTG) announced today the next three monthly dividends at a rate of $0.17 per common share per month, unchanged from the per share rate paid for the previous quarter. As of October 8, 2018, the Funds market price was $30.78 per share and its net asset value was $32.96 per share.
Ronald J. Sorenson, the Fund’s portfolio manager and Chief Investment Officer of Reaves Asset Management, the Fund’s investment adviser, commented on the outlook for the portfolios holdings in 2018. The Funds net asset value increased in the third quarter while interest rates rose. The Funds equity holdings have continued to grow their earnings and increase dividends largely in line with our expectations. Our view is that the portfolios diversification and underlying growth in earnings and dividends significantly contributed to the increase in net value in the face of moderately rising interest rates.
The Fund has formally implemented the 19b-1 exemption received from the Securities and Exchange Commission in 2009. A portion of each distribution may be treated as paid from sources other than net income, including but not limited to short-term capital gain, long-term capital gain and return of capital. The final determination of the source of these distributions, including the percentage of qualified dividend income, will be made after the Funds year end.
Not less than eighty percent of the Funds assets will continue to be invested in the securities of domestic and foreign companies involved to a significant extent in providing products, services or equipment for (i) the generation or distribution of electricity, gas or water, (ii) telecommunications activities or (iii) infrastructure operations, such as airports, toll roads and municipal services (Utilities or the Utility Industry). As a policy, the Fund continues to strive to provide a high level of after-tax income and total return consisting primarily of tax-advantaged distributions and capital appreciation.
The following dates apply to the upcoming dividends that have been declared:
Ex-Distribution Date: October 19, 2018 Record Date: October 22, 2018 Payable Date: October 31, 2018
Ex-Distribution Date: November 16, 2018 Record Date: November 19, 2018 Payable Date: November 30, 2018
Ex-Distribution Date: December 17, 2018 Record Date: December 18, 2018 Payable Date: December 31, 2018
The Reaves Utility Income Fund
The investment objective of the Fund is to provide a high level of income and total return consisting primarily of tax-advantaged distributions and capital appreciation. There were approximately $2.1 billion of total assets under management and 48.7 million common shares outstanding as of October 8, 2018.
An investor should consider investment objectives, risks, charges and expenses carefully before investing. To obtain an annual report or semi-annual report which contains this and other information visit www.utilityincomefund.com or call 1-800-644-5571. Read them carefully before investing.
ALPS Portfolio Solutions Distributor, Inc., FINRA Member Firm.
The Reaves Utility Income Fund is a closed-end fund and closed-end funds do not continuously issue shares for sale as open-end mutual funds do. Since the initial public offering, the Fund now trades in the secondary market. Investors wishing to buy or sell shares need to place orders through an intermediary or broker. The share price of a closed-end fund is based on the markets value.
Reaves Utility Income Fund
Ned Burke, ALPS