*Inception date of 2/24/2004
The market price of a closed-end fund is based on the market's value.
Past performance cannot predict future results. Performance will fluctuate with changes in market conditions. Current performance may be lower or higher than the performance data shown. Performance information shown does not reflect the deduction of taxes that shareholders would pay on Fund distributions or the sale of Fund shares. An investment in the Fund involves risk, including loss of principal.
* Holdings are subject to change.
According to the Fund's holding disclosure policy, as approved by the Board of Trustees, the release of the partial holdings information will be delayed at least 15 days.
The Fund's objective is to provide a high level of after-tax total return consisting primarily of tax-advantaged dividend income and capital appreciation. It intends to invest at least 80% of its total assets in dividend-paying common and preferred stocks and debt instruments of companies within the utility industry. The remaining 20% of its assets may be invested in other securities including stocks, money market instruments and debt instruments, as well as certain derivative instruments in the utility industry or other industries.
The Jobs and Growth Tax Relief Reconciliation Act was signed into law on May 28, 2003. One provision of the Act provides that qualifying dividend income received by individual taxpayers will now be taxed at long-term capital gain tax rates which are a maximum of 15%. Currently, interest income and non-qualifying dividend income can reach federal tax rates as high as 35%.
Qualified dividend tax rates have fallen dramatically (to 15%), yet only certain dividends qualify for this tax treatment. Dividends from real estate investment trusts (REITs), master limited partnerships and trust preferred securities generally do not qualify. Also, the period in which the investor holds a security can determine whether or not a dividend is qualified. The Reaves Utility Income Fund is managed with these taxation issues in mind in seeking the objective of maximizing qualified dividend income.
One advantage of closed-end mutual funds is the ability to use financial leverage as part of the overall investment strategy. The Fund expects to use financial leverage through the issuance of preferred shares and/or through borrowings, including the issuance of debt securities. The Fund intends to use leverage initially of up to approximately 38% of its total assets.
| Ex-Date | Record Date | Payable Date | Amount | Distribution Type | Section 19a Notices |
|---|---|---|---|---|---|
| Section 19a |
Note: There can be no guarantee that dividends will be paid or that the rate will remain the same.