The Reaves Utility Income Fund Declares Next Three Monthly Dividends.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 $0.105 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 6.32% based on the current market price. As of March 15, 2006, the Fund's market price was $19.94 per share and its net asset value was $23.12. 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 2006, 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, continues to believe that the earnings outlook for selected utilities companies remains strong. He is cautiously optimistic op·ti·mist n. 1. One who usually expects a favorable outcome. 2. A believer in philosophical optimism. op that recent legislative and regulatory developments will enable some utilities to earn higher rates of return on new investment in the nation's aging electric and gas infrastructure. For selected utilities, Mr. Sorenson thinks returns on the new investment will be a continuing source of earnings and dividend growth. The following dates apply to the upcoming dividends that have been declared: Ex-Distribution Date: April 11, 2006 Record Date: April 13, 2006 Payable Date: April 28, 2006 Ex-Distribution Date: May 11, 2006 Record Date: May 15, 2006 Payable Date: May 31, 2006 Ex-Distribution Date: June 13, 2006 Record Date: June 15, 2006 Payable Date: June 30, 2006 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 $774 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 March 15, 2006. 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 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 or broker. The share price of a closed-end fund is based on the market's value. |
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