The Reaves Utility Income Fund Announces Regular Monthly Dividend of $0.13 Per Share
DENVER--(BUSINESS WIRE)-- The Reaves Utility Income Fund (UTG) announced today the next three monthly dividends, at a rate of $0.13125 per common share per month, unchanged from the per share rate paid for the previous quarter. As of June 25, 2013, the Funds market price was $24.35 per share and its net asset value was $25.76 per share.
Ron Sorenson, CEO and CIO of Reaves Asset Management, noted that the recent decline in utility share prices over the past several weeks has not impacted the Funds portfolio companies ability to pay their dividends or their ability to periodically increase their dividends. The Funds dividend, paid monthly, consists largely of earned income. Very little has changed fundamentally. The interest rate on the Funds Committed Facility Agreement rate is based on the one-month LIBOR (London-Interbank Offered Rate) which is currently less than 0.20% compared to 0.24% one year ago.
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 utility companies. 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 dividend income and capital appreciation.
The following dates apply to the upcoming dividends that have been declared:
|Ex-Distribution Date: July 16, 2013|
|Record Date: July 18, 2013|
|Payable Date: July 31, 2013|
|Ex-Distribution Date: August 15, 2013|
|Record Date: August 19, 2013|
|Payable Date: August 30, 2013|
|Ex-Distribution Date: September 18, 2013|
|Record Date: September 20, 2013|
|Payable Date: September 30, 2013|
The fund declares that $0.065 per share of the $0.13125 per share July distribution will be paid as long-term capital gain in accordance with Internal Revenue Code section 855(a), for the fiscal year ended October 31, 2012.
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 dividend income and capital appreciation. There were approximately $1.0 billion of total assets under management and 29.0 million common shares outstanding as of June 25, 2013.
An investor should consider investment objectives, risks, charges and expenses carefully before investing. To obtain a prospectus, 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.
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, 303-623-2577
Source: Reaves Utility Income FundCopyright Business Wire 2013