Sep 19, 8:15 AM ET
UTG Replaces ALPS with Paralel as Administrator and Sets New 8 Million Share Offering
Reaves Utility Income Fund (UTG) signed a new distribution agreement for up to 8,000,000 common shares sold at the market through Paralel Distributors, and named Paralel Technologies as its administrator, replacing ALPS Fund Services, effective September 19, 2022. Three officer positions also changed hands, with Paralel employees appointed to Treasurer, Secretary and Chief Compliance Officer roles after the prior officers resigned. The filing describes the new terms as materially similar to the prior agreements, and the Fund's administration fee rate is lower under the new agreement.
- New distribution agreement covers up to 8,000,000 common shares; commission is 1.00% of gross proceeds, with up to 0.80% paid to UBS Securities on UBS sales
- Prior ADI and UBS agreements, which allowed up to 23,000,000 shares, terminated September 19, 2022; 5,077,802 shares were sold under them from November 24, 2021 through September 16, 2022
- Paralel Technologies administration fee is 0.15% of average daily total assets on the first $2 billion, versus 0.265% on the first $2.5 billion under ALPS
- Jill Kerschen, Christopher Moore and Bradley Swenson appointed Treasurer, Secretary and Chief Compliance Officer effective September 19, 2022