Reaves CEO: Look beyond UK headwinds in utilities

Build on US experience on investing, manager argues

Concerns surrounding heavy-handed regulation and an ever-increasing demand for renewable energy sources could mean some investors are unfairly shunning the utilities sector, according to Reaves Asset Management's CEO Jay Rhame.

However, Rhame, who took over the helm of Reaves at the start of the year, decided to launch a Dublin-domiciled version of the Reaves Utility Income fund - which until last month was available only to US investors - because he believes the 'lower for longer' interest rate environment, as well as UK-specific headwinds for the utilities sector, will encourage investors to look overseas - and specifically towards the US to benefit from the sector's attractive dividend yields and steady returns. Rhame argued that investing in the US helps to mitigate regulation headwinds because each state h...