Ticker: UTG

1.800.644.5571

About Us

Fund Manager

W.H. Reaves & Company, Inc. (dba Reaves Asset Management) - Investment Management

Philosophy

Reaves Asset Management believes that an information advantage can be created when experience analysts focus their fundamental, quantitative and qualitative, bottom-up research within the utility sector. Furthermore, the identification of utility companies that are disciplined enough to supply growing dividend income to their shareholders is a key component in the management process.

Investment Process

Qualitative Process

Management Interviews

  • Gauge competence, track record, and alignment with shareholders' interests
  • Assess viability of management strategy and judge likelihood of meeting goals
  • Assess robustness of corporate governance

Field Research

  • Extract nuance through conversations with competitors, customers, and suppliers
  • Conduct industry research such as contact with regulators and performing supply chain analysis

Macro Factor Analysis

  • Evaluate industry prospects
  • Assess factor biases such as interest rates or commodity prices
  • Evaluate regulatory climate

Quantitative Process

Modeling and Analysis

  • Carefully model business drivers and financial statements to assess business viability, company robustness under differing business scenarios, and the level of realism imbedded in street expectations
  • Independent and original earnings projections made
  • Assess potential changes in cash, dividend and earnings generation capability

Valuation

  • Utilize historical P/E, EV/EBITDA, P/B and P/CF
  • Utilize historical absolute and relative dividend yield analysis
  • Assess M&A attractiveness through NAV calculation

Technicals

  • Assess shareholder base, short interest and liquidity

Internal Review by Team Conducted Weekly

Investment Philosophy