Reaves Utility Income Fund targets rising electricity demand with 12% upside and 5% yield potential

The Reaves Utility Income Fund is an aggressive, actively managed fund focused on companies benefiting from increasing electricity demand, particularly driven by data center growth. The fund's portfolio aligns with top sector picks and shows potential for over 12% upside alongside a 5% distribution yield. Its strong returns have been driven by leverage and careful stock selection, outperforming market and peer benchmarks. The main risk to the fund's outlook is a slowdown in data center construction and electricity demand growth.