The Reaves Utility Income Fund Announces Regular Monthly Dividend.DENVER -- The Reaves Utility Income Fund (AMEX AMEX See: American Stock Exchange : UTG (UnixWare Technology Group) An organization formed in 1994 to establish UnixWare as an open standard. UnixWare was then owned by Novell who later sold it to SCO. UTG has since folded. ) today announced the next three monthly dividends at a rate of $0.11 per common share per month. The dividend represents an annualized annualized Of or relating to a variable that has been mathematically converted to a yearly rate. Inflation and interest rates are generally annualized since it is on this basis that these two variables are ordinarily stated and compared. yield of 5.2% based on the current market price. As of September 28, 2007, the Fund's market price was $25.30 per share and its net asset value was $29.16. A portion of the distribution may be treated as paid from sources other than net income, including but not limited to short-term capital gain Short-term capital gain A profit on the sale of a security or mutual fund share that has been held for one year or less. A short-term capital gain is taxed as ordinary income. , long-term capital gain Long-term capital gain A profit on the sale of a security or mutual fund share that has been held for more than one year. and return of capital. The final determination of the source of all distributions in 2007, including the percentage of qualified dividend income, will be made after year-end. Not less than eighty percent of the Fund's 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. Ronald Sorenson, CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. , Chief Investment Officer of W. H. Reaves & Co., and portfolio manager of the Fund, fully expects the Fund to continue earning the income necessary to pay a dividend characterized primarily by tax advantaged income. Mr. Sorenson noted that the recent volatility in the equity markets resulting from the uncertainty surrounding sub-prime credits provided ample opportunities to improve the yield and growth characteristics of the Fund. He emphasized that the overwhelming majority of the securities held by the Fund are of high-quality, dividend-paying companies that provide essential elements of the infrastructure in the U.S. and abroad. "We own none of the collateralized debt obligations Collateralized Debt Obligation (CDO) A general inclusive term which covers Collateralized Bond Obligations, Collateralized Loan Obligations, and Collateralized Mortgage Obligations, or other asset backed securities now roiling the markets," Mr. Sorenson said, adding, "...we think the required investment in the nation's telecom and energy infrastructure will provide support during this period of market uncertainty." The following dates apply to the upcoming dividends that have been declared: Ex-Distribution Date: October 15, 2007 Record Date: October 17, 2007 Payable Date: October 31, 2007 Ex-Distribution Date: November 14, 2007 Record Date: November 16, 2007 Payable Date: November 30, 2007 Ex-Distribution Date: December 12, 2007 Record Date: December 14, 2007 Payable Date: December 31, 2007 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 $905 million of total assets under management Assets Under Management (AUM) is a term used by financial services companies in the mutual fund and money management or investment management business to gauge how much money they are managing. and 22.7 million common shares outstanding as of September 28, 2007. An investor should consider investment objectives, risks, charges and expenses carefully before investing. To obtain a prospectus which contains this and other information, visit www.utilityincomefund.com or call 1-800-644-5571. Read the prospectus carefully before investing or sending money. The Reaves Utility Income Fund is a closed-end fund Closed-end fund An investment company that issues shares like any other corporation and usually does not redeem its shares. A publicly traded fund sold on stock exchanges or over the counter that may trade above or below its net asset value. Related: Open-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 Intermediary See: Financial intermediary intermediary See financial intermediary. or broker. The share price of a closed-end fund is based on the market's value. |
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion