Reaves Utility Income Fund Section 19(a) Notice

Rhea-AI Summary

Reaves Utility Income Fund (NYSE American:UTG) announced a $0.20 per-share monthly distribution paid February 27, 2026 to holders of record February 18, 2026.

Current distribution composition: $0.18366 (91.83%) long-term capital gain, $0.01088 (5.44%) net investment income, and $0.00546 (2.73%) return of capital. Fiscal YTD distributions total $0.80 per share with 52.85% as return of capital. NAV metrics: annualized distribution rate 6.38%, cumulative total return on NAV -1.69%, five-year average annual total return 11.20%.

Positive

• Current distribution largely funded by long-term capital gains 91.83%
• Monthly distribution $0.20 maintains predictable cash payout
• Five-year average annual total return of 11.20% on NAV

Negative

• Fiscal YTD distributions include 52.85% return of capital, indicating potential capital depletion
• Cumulative total return on NAV is -1.69% fiscal year-to-date
• Cumulative distribution rate on NAV only 2.13% for the period

Statement Pursuant to Section 19(a) of the Investment Company Act of 1940

DENVER, CO / ACCESS Newswire / February 27, 2026 / On February 27, 2026, the Reaves Utility Income Fund (NYSE American:UTG) (the "Fund"), a closed-end sector fund, paid a monthly distribution on its common stock of $0.20 per share to shareholders of record at the close of business on February 18, 2026.

The following table sets forth the estimated amount of the sources of distribution for purposes of Section 19 of the Investment Company Act of 1940, as amended, and the related rules adopted thereunder. In accordance with generally accepted accounting principles ("GAAP"), the Fund estimates the following percentages, of the total distribution amount per share, attributable to (i) current and prior fiscal year net investment income, (ii) net realized short-term capital gain, (iii) net realized long-term capital gain and (iv) return of capital or other capital source as a percentage of the total distribution amount. These percentages are disclosed for the current distribution as well as the fiscal year-to-date cumulative distribution amount per share for the Fund.

Current Distribution from:
		Per Share ($)				%
Net Investment Income			0.01088				5.44	%
Net Realized Short-Term Capital Gain			0.00000				0.00	%
Net Realized Long-Term Capital Gain			0.18366				91.83	%
Return of Capital or other Capital Source			0.00546				2.73	%
Total (per common share)			0.20000				100.00	%
Fiscal Year-to-Date Cumulative
Distributions from:
		Per Share ($)				%
Net Investment Income			0.07832				9.79	%
Net Realized Short-Term Capital Gain			0.00000				0.00	%
Net Realized Long-Term Capital Gain			0.29892				37.36	%
Return of Capital or other Capital Source			0.42276				52.85	%
Total (per common share)			0.80000				100.00	%

The timing and character of distributions for federal income tax purposes are determined in accordance with income tax regulations which may differ from GAAP. As such, all or a portion of this distribution may be reportable as taxable income on your 2026 federal income tax return. The final tax character of any distribution declared in 2026 will be determined in January 2027 and reported to you on IRS Form 1099-DIV.

The amounts and sources of distributions reported in this 19(a) Notice are only estimates and not for tax reporting purposes. The actual amounts and sources of the amounts for tax reporting purposes will depend upon the Fund's investment experience during the remainder of its fiscal year and may be subject to changes based on tax regulations. The Fund will send you a Form 1099-DIV for the calendar year that will tell you how to report these distributions for federal income tax purposes. The Fund estimates that it has distributed more than its income and net realized capital gains; therefore, a portion of your distribution may be a return of capital. A return of capital may occur for example, when some or all of the money that you invested in the Fund is paid back to you. A return of capital distribution does not necessarily reflect the Fund's investment performance and should not be confused with 'yield' or 'income.'

Presented below are return figures, based on the change in the Fund's Net Asset Value per share ("NAV"), compared to the annualized distribution rate for this current distribution as a percentage of the NAV on the last day of the month prior to distribution record date.

Fund Performance & Distribution Information

Fiscal Year to Date (11/01/2025 through 1/31/2026)
Annualized Distribution Rate as a Percentage of NAV^			6.38	%
Cumulative Distribution Rate on NAV^+			2.13	%
Cumulative Total Return on NAV*			-1.69	%
Average Annual Total Return on NAV for the 5 Year Period Ended 1/31/2026**			11.20	%

^ Based on the Fund's NAV as of January 31, 2026.

⁺Cumulative distribution rate is based on distributions paid to date for the period November 1, 2025 through February 28, 2026.

*Cumulative fiscal year-to-date return is based on the change in NAV including distributions paid and assuming reinvestment of these distributions for the period November 1, 2025 through January 31, 2026.

**The 5 year average annual total return is based on change in NAV including distributions paid and assuming reinvestment of these distributions and is through the last business day of the month prior to the month of the current distribution record date.

While the NAV performance may be indicative of the Fund's investment performance, it does not measure the value of a shareholder's investment in the Fund. The value of a shareholder's investment in the Fund is determined by the Fund's market price, which is based on the supply and demand for the Fund's shares in the open market. Past performance does not guarantee future results. Shareholders should not draw any conclusions about the Fund's investment performance from the amount of this distribution or from the terms of the Fund's Managed Distribution Plan.

Furthermore, the Board of Trustees reviews the amount of any potential distribution and the income, capital gain or capital available. The Board of Trustees will continue to monitor the Fund's distribution level, taking into consideration the Fund's net asset value and the financial market environment. The Fund's distribution policy is subject to modification by the Board of Trustees at any time. The distribution rate should not be considered the dividend yield or total return on an investment in the Fund.

Paralel Distributors LLC, FINRA Member Firm.

Contact info:
Website: https://www.utilityincomefund.com
Email: reavesclientinquiries@paralel.com

SOURCE: Reaves Utility Income Fund

View the original press release on ACCESS Newswire

FAQ

What did Reaves Utility Income Fund (UTG) announce on February 27, 2026 regarding distributions?

The fund paid a $0.20 per-share monthly distribution on February 27, 2026 to holders of record February 18, 2026. According to the company, the distribution is funded mainly by long-term capital gains and includes a small return of capital component.

How much of the UTG February 2026 distribution is return of capital?

A small portion, $0.00546 per share (2.73%), is estimated as return of capital for the current distribution. According to the company, fiscal year-to-date return of capital is materially higher at 52.85% of cumulative distributions.

What is the fiscal year-to-date distribution amount per share for UTG through February 2026?

Fiscal year-to-date distributions total $0.80 per share for the period. According to the company, that $0.80 breaks down into net investment income, long-term gains, and a $0.42276 return of capital component.

How does UTG’s distribution rate compare to its NAV as of January 31, 2026?

The annualized distribution rate is approximately 6.38% of NAV based on NAV as of January 31, 2026. According to the company, the cumulative distribution rate on NAV for the period was 2.13%.

Is UTG’s distribution taxable for 2026 and how will shareholders be informed?

Distributions may be taxable and the final tax character will be determined in January 2027 for reporting. According to the company, shareholders will receive IRS Form 1099-DIV showing the tax treatment for 2026 distributions.

What does UTG’s fiscal year-to-date NAV performance indicate for investors?

Fiscal year-to-date cumulative total return on NAV is -1.69%, reflecting NAV change including distributions through January 31, 2026. According to the company, market price may differ from NAV and past performance does not guarantee future results.