Reaves Utility Income Fund Initiation Of Breakpoint Fees

Rhea-AI Summary

The Reaves Utility Income Fund has announced a new fee breakpoint effective for gross assets above $2.5 billion, reducing the advisory and administrative fee from 0.84% to 0.765%. This initiative aims to enhance monthly distributions and maintain competitive long-term returns. The Fund, with approximately $2.3 billion in total assets under management and 57.6 million common shares outstanding as of April 6, 2021, seeks to provide high income through tax-advantaged distributions and capital appreciation.

Positive

• The fee reduction will lower costs for investors, enhancing net returns.
• The Fund has increased distributions 11 times without a return of capital.

Negative

• None.

DENVER, May 11, 2021 /PRNewswire/ -- The Reaves Utility Income Fund is pleased to announce the initiation of a breakpoint in fees. The advisory and administrative fee on gross assets greater than $2.5 billion will be 0.765%, down from the current rate of 0.84%. The reduction is in line with the Fund's goal of providing a monthly distribution and competitive long-term total returns while being amongst the lowest cost funds in its peer group.

Tim Porter, Chief Investment Officer of Reaves Asset Management and co-Portfolio Manager of the Reaves Utility Income Fund, remarked, "Successfully investing the Fund's assets has allowed us to increase the distribution 11 times while never having a return of capital on an annual basis. The breakpoint is another way to reward the owners of the Fund."

Brad Swenson, Head of Registered Fund Services at SS&C ALPS and President of the Reaves Utility Income Fund, added, "We are happy to initiate a fee breakpoint. We are committed to providing best-in-class service at competitive rates. As it grows, these actions will help ensure
that the Reaves Utility Income Fund remains amongst the highest quality choices in the closed-end fund market."

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 $2.3 billion of total assets under management and 57.6 million common shares outstanding as of April 6, 2021.

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.

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SOURCE Reaves Utility Income Fund

FAQ

What is the new advisory fee for the Reaves Utility Income Fund?

The new advisory fee is 0.765% for gross assets over $2.5 billion.

How much are the total assets under management for the Reaves Utility Income Fund?

The total assets under management are approximately $2.3 billion.

What is the objective of the Reaves Utility Income Fund?

The objective is to provide a high level of income through tax-advantaged distributions and capital appreciation.

When was the fee breakpoint announced for the Reaves Utility Income Fund?

The fee breakpoint was announced on May 11, 2021.