Performance

Cumulative Month End as of 12/31/2011

	1 month	3 month	YTD	Since Inception^*
Market Price	3.70%	10.32%	25.54%	137.29%
NAV	3.75%	13.66%	16.32%	131.54%

Average Annualized Quarter End as of 12/31/2011

	1 year	5 year	Since Inception^*
Market Price	25.54%	10.28%	11.63%
NAV	16.32%	6.31%	11.28%

*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.

The Reaves Utility Income Fund is a closed-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 and intermediary or broker. The share price of a closed-end fund is based on the market's value. The Fund's investment objective is fundamental and may not be changed without the vote of the Fund's shareholders.

An investor should consider investment objectives, risks, charges and expenses carefully before investing. To obtain a prospectus, annual report or semi-annual report which contains this and other information visit www.utilityincomefund.com or call 1-800-644-5571. Read them carefully before investing.

Closed-end Funds: Not FDIC Insured No Bank or Other Guarantee May Lose Money