<PAGE> 1
[ZWEIG LOGO]
1995 SEMI-ANNUAL REPORT
<PAGE> 2
DEAR FELLOW SHAREHOLDER
Falling interest rates and strong corporate earnings fueled domestic
stocks to their best half-year gain since the first six months of 1987.
The blue chip Standard & Poor's 500 Index gained 20.2%. By comparison,
the average stock fund gained 16.6%. Increasing evidence of a slowing
economy and the prospect of a Federal Reserve cut in short-term rates
(which did in fact occur in early July) sparked a rally in the bond
market.
Despite our defensive posture coming into 1995, I'm pleased to
report that we responded to improvements in our research and became more
invested. As a result, our mutual funds solidly participated in the
market gains, and we generated exceptional risk-adjusted returns for our
shareholders.
As recently as February, the conventional wisdom was that the
economy would continue to expand. In fact the Fed, in an effort to fight
inflation, hiked interest rates in February for the seventh time in 12
months. One of our cardinal rules is, "Don't fight the Fed." This means
that when the Fed raises short-term interest rates, it generally pays to
remain defensive. We therefore entered 1995 with a significant cash
position in our mutual funds. But as the economy withered, bond prices
took off and stocks followed. We responded by increasing our market
exposure and participating in the rise.
One of the hallmarks of our style is flexibility. We gradually
and continually adjust the asset mix of each of our funds in response to
changing market conditions. We don't attempt to predict the future, we
react to the changes as they occur. The key to my success over the past
25 years of managing money has been to follow my indicators faithfully.
This strategy paid off in 1995, as shareholders gave up very little in
return for a defensive approach.
Another rule of thumb is, "Don't fight the tape," or, "The trend
is your friend." As the number of stocks advancing in price marched
ahead of those declining in price, we were unwilling to fight the tape.
This was yet another reason to further increase our exposure.
It's important to note that our priority is not to match the
market or to deliver headline-grabbing returns during bull market
phases. Our priority is to deliver above-average returns over complete
market cycles. If we earn reasonable returns during bull markets, and
preserve most of that money during bear markets, we'll achieve our
<TABLE>
<CAPTION>
C O N T E N T S
<S> <C>
ZWEIG STRATEGY FUND 2
ZWEIG MANAGED ASSETS 4
ZWEIG APPRECIATION FUND 6
GOVERNMENT SECURITIES 8
ZWEIG CASH FUND 8
STATEMENT OF NET ASSETS 9
STATEMENT OF OPERATIONS 39
STATEMENT OF CHANGES IN NET ASSETS 40
NOTES TO FINANCIAL STATEMENTS 42
FINANCIAL HIGHLIGHTS 47
</TABLE>
<PAGE> 3
objective. More importantly, we'll do it with much less risk.
As you'll see in the letter for Zweig Managed Assets, Timothy
Clark has resigned as portfolio manager of that fund and of Government
Securities Series. Tim was a valued member of the Zweig team for nine
years. We wish him well in his future endeavors. Carlton Neel
succeeds Tim at the helm of the two funds. Carlton joins us from J.P.
Morgan, where he was a Vice President and had experience in foreign
markets and U.S. Government securities. He holds a dual B.A. in
Economics and Political Science from Brown University.
<TABLE>
<S> <C> <C>
PERFORMANCE THROUGH 6/30/95 AVERAGE
MARKET
YEAR-TO-DATE EXPOSURE
ZWEIG STRATEGY FUND (A) 16.5% 51%
ZWEIG MANAGED ASSETS (A) 9.0% BONDS 38%
STOCKS 22%
CASH 40%
ZWEIG APPRECIATION FUND (A) 11.3% 51%
GOVERNMENT SECURITIES (A) 7.0% 3.1 YEARS*
</TABLE>
We'll continue to follow the dictates of our research and
adjust the asset mix of our mutual funds as market conditions warrant.
We appreciate your confidence and support. I hope you and your
families are enjoying a terrific summer.
Sincerely,
MARTIN E. ZWEIG, PH.D.
President
July 20, 1995
MARTY ZWEIG WILL BE A
PANELIST ON PBS'S WALL $TREET
WEEK WITH LOUIS RUKEYSER ON
SEPTEMBER 1ST AND 29TH.
* Average duration.
This report has been prepared for the information of
shareholders of Zweig Series Trust and is not authorized for
distribution to prospective investors unless preceded or
accompanied by an effective prospectus that includes
information regarding the Trust's objectives, policies,
management, records and other information.
Past performance is no guarantee of future results. Investment
return and principal value will fluctuate so that an
investor's shares, when redeemed, may be worth more or less
than their original cost. Returns shown in this report do not
include any initial or contingent deferred sales charges.
<PAGE> 4
ZWEIG STRATEGY FUND
We're extremely pleased with our performance during the first
six months of 1995. Strategy A Shares were up 16.5%
year-to-date through June 30. The C Shares gained 16.1%. That
compares with 20.2% for the S&P 500 and 17.5% for the average
growth fund. For the second quarter, we returned 11.4% and
11.2% for the A and C Shares, respectively. These numbers were
significantly higher than the average growth fund's return of
9.3% and the S&P 500's gain of 9.5%.
Our mission is to deliver better-than-average returns
with far less volatility than most growth funds. In order to
achieve this goal, we need to do two things: participate in
rising markets, and protect capital by moving into cash
equivalents during market declines. So far this year, we can
claim success in bull market participation. We've captured
more than 80% of the S&P 500's advance and posted returns
comparable to the average growth fund. What's more, we did so
while taking far less risk than our fully invested
competitors. First, our average cash position was 49% during
the period. Second, the risk profile of the stocks we held was
very low, as reflected in P/E ratios and price-to-book-value
ratios that were among the lowest in the growth fund category.
Third, we maintained prudent industry diversification
throughout the period.
Our investment results this year reflect, in part,
our flexibility. As Marty Zweig mentions in his letter earlier
in this report, we've been increasing our market exposure
throughout the year. We finished the second quarter at 70%
invested in stocks and, as of this writing, we are at 75%.
We could not have achieved our solid gains given our
cash position without excellent stock selection. The
proprietary stock selection model utilized in the fund added
significant value during the first half by focusing on
technology and bank stocks. Within the technology sector, we
paid special attention to semiconductor stocks, as well as
some hardware manufacturers. This area continues to show
growth far in excess of the general economy. We also
maintained significant exposure to the defense/aerospace
industry. These com- panies have benefited from wider profit
margins in an improving business climate. Lately, we've also
focused on certain cyclical industries, including airlines
and paper companies, both beneficiaries of a firmer pricing
environment.
Our stock selection style, too, is flexible. The
model analyzes both growth and valuation characteristics of
companies without bias. We are just as comfortable buying
cyclical stocks as we are growth stocks--as long as the
research suggests that that's where outperformance is likely.
/s/ DAVID KATZEN
---------------------
DAVID KATZEN
Senior Vice President
July 20, 1995
2
<PAGE> 5
PERFORMANCE through 6/30/95
YEAR-TO-DATE
[FIGURE 1]
AVERAGE MARKET EXPOSURE: 51%
<TABLE>
<S> <C>
ANNUALIZED SINCE INCEPTION
ZWEIG STRATEGY FUND (A) 10.8%
AVERAGE MARKET EXPOSURE 65%
LIPPER GROWTH FUND AVERAGE 11.0%+
S&P 500 INDEX 11.4%
ZWEIG STRATEGY FUND (C) 10.6%
AVERAGE MARKET EXPOSURE 62%
INCEPTION DATES: A SHARES-12/29/89
C SHARES-2/3/92
</TABLE>
[FIGURE 2]
The Lipper Growth Fund Average is based on the total
return of 585 growth funds.
+ The period measured is from 12/31/89 due to Lipper's
weekly data. For purposes of determining asset mix
and market exposure, the fund's short stock futures
position is treated as reducing stock exposure and
increasing cash.
* Sources: Morningstar and Micropal Inc. Maximum NAV
decline measures the greatest high-to-low drop in a
fund's value during a certain period, and is based
upon monthly data. P/E is the ratio of the market
price of a share of stock to the actual earnings per
share.
+ Percentage of the stock portion of the fund.
RISK PROFILEAS OF 6/30/95*
- THREE-YEAR BETA IN THE LOWEST 2% OF ALL GROWTH FUNDS.
- FIVE-YEAR STANDARD DEVIATION IN THE LOWEST 1% OF ALL GROWTH
FUNDS.
- SECOND LOWEST MAXIMUM NAV DECLINE OF 275 GROWTH FUNDS.
- SIXTH LOWEST P/E RATIO OF 824 GROWTH FUNDS.
[FIGURE 3]
[FIGURE 4]
3
<PAGE> 6
ZWEIG MANAGED ASSETS
During the first half of 1995, the fund solidly participated
in rising stock and bond markets in the U.S. and abroad. The A
Shares and the C Shares returned 9.0% and 8.6%, respectively,
surpassing the Lipper Global Flexible Fund Average's gain of
8.2%. The fund earned these returns while holding an average
of 40% of its assets in cash. The 40/60 Index, a domestic
benchmark, benefited from the relative strength of the U.S.
markets, earning 16.2% through June.
For the second quarter, Zweig Managed Assets gained
3.6% for the A Shares and 3.5% for the C Shares. The Lipper
Global Flexible Fund Average earned 5.6%, in comparison, and
the 40/60 Index rose 9.2%. Since inception, however, the fund
has earned most of the gains of its benchmark, and has kept
pace with its peers, while holding an average of 43% cash.
As a global asset allocation fund, we invest in
domestic and foreign stocks and bonds in an effort to increase
returns and decrease risk over the long term. During the first
half of 1995, U.S. stocks and bonds were the best performers
among the world's major markets. As the U.S. economy slowed,
the bond market rallied and stocks hit new highs. By
comparison, most foreign stock markets have not yet rallied
enough to reach their late '93-early '94 highs. International
interest rates did not fall as much as those in the U.S., so
foreign bonds and stocks lagged. In keeping with our
risk-averse approach, however, we don't make big bets on any
single country--even our own. We kept a portion of our assets
in each of the major countries, and remained broadly
diversified. Over much of the six-month period, the fund's
holdings in foreign securities benefited from a decline in the
U.S. dollar.
Effective in early September, we will increase the
fund's allowable investment in foreign securities from 40% to
50% of the fund's assets. We will also increase the fund's
allowable allocation of assets in stocks from 50% to 60%. We
are making these changes in order to further increase the
fund's flexibility, and to allow the fund to take advantage of
more investment opportunities. A neutral mix will then consist
of 35% stocks, 35% bonds and 30% cash. This will occur when
our research indicates that conditions do not favor one asset
class over another.
As Marty Zweig notes in his letter earlier in this
report, I've resigned as portfolio manager in order to pursue
other interests. I'm very pleased with what we've accomplished
with Zweig Managed Assets. I leave the fund in the very
capable hands of my successor, Carlton Neel.
/s/ TIMOTHY CLARK
-----------------
TIMOTHY CLARK
July 5, 1995
4
<PAGE> 7
PERFORMANCE through 6/30/95
YEAR-TO-DATE
[FIGURE 5]
<TABLE>
<S> <C> <C>
ANNUALIZED SINCE INCEPTION (2/8/93)
ZWEIG MANAGED ASSETS (A) 7.4%
ZWEIG MANAGED ASSETS (C) 6.6%
AVERAGE BONDS 33%
MARKET STOCKS 24%
EXPOSURE CASH 43%
LIPPER GLOBAL FLEXIBLE FUND AVG. 8.7%+
40/60 INDEX 5.2%
</TABLE>
[FIGURE 6]
The Lipper Global Flexible Fund Average is based on
the total return of 21 funds.
The 40/60 Index is a representative index consisting
of 40% S&P 500 stocks and 60% Lehman Composite
Government bonds.
+ The period measured is from 2/11/93 due to Lipper's
weekly data.
For purposes of determining asset mix, the fund's
short futures position is treated as reducing stock
exposure and increasing cash.
* Source: Micropal Inc. Maximum NAV decline measures
the greatest high-to-low drop in a fund's value
during a certain period, and is based upon monthly
data.
FUND HIGHLIGHTS
- THIRD LOWEST MAXIMUM NAV DECLINE OF 18 GLOBAL ASSET
ALLOCATION FUNDS AS OF JUNE 30TH.*
- AS OF JULY 10TH, THE FUND'S FOREIGN HOLDINGS HAVE
BEEN EXPANDED TO INCLUDE STOCKS IN FINLAND AND
SWITZERLAND, AND BONDS IN BELGIUM.
COUNTRY ALLOCATIONS as of 6/30/95
<TABLE>
<CAPTION>
Cash
Bonds Stocks Equivalents
<S> <C> <C> <C>
UNITED STATES 15.2 15.3 30.6
AUSTRALIA 3.4 3.0 0.1
CANADA 0.0 2.2 0.0
FRANCE 3.4 2.9 2.0
GERMANY 3.1 1.1 2.1
JAPAN 5.2 3.0 0.2
SPAIN 0.0 0.8 0.9
UNITED KINGDOM 1.3 2.7 1.4
HONG KONG 0.0 0.1 0.0
TOTAL 31.6 31.1 37.3
</TABLE>
5
<PAGE> 8
ZWEIG APPRECIATION FUND
The fund's A Shares were up 11.3% in the first half of 1995,
earning 73% of what the Lipper Small-Company Fund Average
returned during the period. The C Shares returned 10.9%. The
Value Line Geometric Index was up an estimated 13.1% through
June. For the quarter, we gained 8.1% and 8.0% for the A and C
Shares, respectively. The average small-company fund gained
9.0%, and the Value Line earned 7.0%.
We're proud of these results. Our job as a defensive
manager is to keep a weather-eye out for risk. This
responsibility does not go away just because we've entered a
period where it is unfashionable to be concerned with risk.
The fact is that the recent environment has discouraged any
effort to reduce risk. For example, the best-performing stock
index during the first half of 1995 was the most volatile
one--the NasdaqComposite Index. One of the best-performing
industry groups was the volatile technology sector. Even a
hint of prudence among bullish investors carried a penalty:
Through June, there was not so much as a 2% correction in the
S&P 500. In short, so far in 1995, the market has rewarded
those who bought the most volatile industry groups, in the
most volatile segment of the market, without regard for price.
In none of our funds is the difference between the
Zweig approach and our peers' style more striking than in the
Appreciation Fund. Whereas most other funds remain almost
fully invested regardless of market conditions, we gradually
adjust the market exposure of the fund as conditions warrant.
Indeed, Appreciation Fund's performance in the first half of
the year was accomplished with an average effective market
exposure of 51%. In addition, the beta, or volatility relative
to the market, of the stocks we now hold is 15% to 20% less
than that of the average small-company fund. The proprietary
stock selection model utilized in the fund favored technology
stocks during the first half of 1995. But while we were
overweighted in this group, our peak exposure to technology
was about half that of the average small-company fund. In
fact, upon closer examination, many "small-company funds"
could almost be characterized as sector funds because of their
willingness to load up on hot industry groups. In contrast,
the portion of our fund that is invested in stocks is broadly
diversified. We currently hold approximately 600 different
stocks.
One final point: Please don't mistake caution for
bearishness. We are simply flexible and responsive to changing
market conditions. As of this writing, our fund's effective
market exposure is 79%.
/s/ DAVID KATZEN
---------------------
DAVID KATZEN
Senior Vice President
July 20, 1995
6
<PAGE> 9
PERFORMANCE through 6/30/95
YEAR-TO-DATE
[FIGURE 7]
<TABLE>
<S> <C>
ANNUALIZED SINCE INCEPTION
ZWEIG APPRECIATION FUND (A) 10.6%
AVERAGE MARKET EXPOSURE 63%
LIPPER SMALL-CO. FUND AVERAGE 15.0%+
VALUE LINE GEOMETRIC INDEX 8.5%
ZWEIG APPRECIATION FUND (C) 8.0%
AVERAGE MARKET EXPOSURE 62%
INCEPTION DATES: A SHARES-10/8/91
C SHARES-2/3/92
</TABLE>
[FIGURE 8]
The Lipper Small-Company
Fund Average is based on the total return of 303
funds. The Value Line Geometric Index measures the
returns of 1,700 stocks ranging from large-cap to
small-cap on an unweighted basis. The returns include
an estimate for dividends reinvested.
+ The period measured is from 10/10/91 due to Lipper's
weekly data.
For purposes of determining asset mix and market
exposure, the fund's short stock futures position is
treated as reducing stock exposure and increasing
cash.
* Sources: Morningstar and Micropal Inc. P/E is the
ratio of the market price of a share of stock to the
actual earnings per share.
+ Percentage of the stock portion of the fund.
RISK PROFILEAS of 6/30/95*
- THREE-YEAR BETA IN THE LOWEST 2% OF ALL SMALL-COMPANY
FUNDS.
- THREE-YEAR STANDARD DEVIATION IN THE LOWEST 2% OF ALL
SMALL-COMPANY FUNDS.
- FIFTH LOWEST MAXIMUM NAV DECLINE OF 131 SMALL-COMPANY
FUNDS.
- SIXTH LOWEST P/E RATIO OF 312 SMALL-COMPANY FUNDS.
[FIGURE 9]
[FIGURE 10]
7
<PAGE> 10
GOVERNMENT SECURITIES
After enduring the worst bear market in decades in 1994, bonds
rallied in price in the first half of 1995. The slowing
economy had a lot to do with it. By June the bond market,
bolstered by lower-than-expected economic data, began to
anticipate a Fed interest rate cut. The Fed obliged in early
July with the first cut since September of 1992.
Government Securities A Shares earned 7.0% through
June, capturing 70% of the average government bond fund's
return. The C Shares returned 6.7%. For the second quarter, A
Shares were up 4.3%, C Shares gained 4.2%, and the average
government bond fund rose 5.7%.
The major economic indicators that we rely on to
determine our market exposure and duration react to data
rather than forecast. While the bond market rallied during the
first quarter, most of the data reflected an unfavorable
risk/reward relationship, and we remained cautious. As we
moved into the second quarter, however, evidence of a slowing
economy mounted. We increased the fund's market exposure and
duration, and more fully participated in the bond market
rally.
As noted earlier in this report, I've resigned as
portfolio manager in order to pursue other interests. I leave
the fund in the capable hands of my successor, Carlton Neel.
/s/ TIMOTHY CLARK
-----------------
TIMOTHY CLARK
July 5, 1995
<TABLE>
<CAPTION>
PERFORMANCE through 6/30/95
ANNUALIZED
YEAR-TO-DATE SINCE INCEPTION
<S> <C> <C>
GOVERNMENT SECURITIES (A) 7.0% 7.0%
LIPPER U.S. GOV'T. FUND AVERAGE 10.5% 8.1%+
GOVERNMENT SECURITIES (C) 6.7% 5.6%
INCEPTION DATES: A SHARES-9/1/89*, C SHARES-2/3/92
</TABLE>
[FIGURE 11]
FUND HIGHLIGHTS as of 6/30/95**
- THE FUND'S MAXIMUM NAV DECLINE FROM 9/1/89 THROUGH
6/30/95 WAS -4.8%, COMPARED TO -7.0% FOR THE AVERAGE
GOVERNMENT BOND FUND.
- ELEVENTH LOWEST MAXIMUM NAV DECLINE OF 84 GOVERNMENT
BOND FUNDS.
ZWEIG CASH FUND
The annualized net yield for the year-to-date ending June 30
was 5.04% for Class A and C Shares, and 5.26% for Class M
Shares.
+ The period measured is from 8/31/89 due to lipper's
weekly data.
The Lipper U.S. Government Fund Average is based on
the total return of 186 funds.
* Zweig/Glaser advisers assumed responsibility for
managing the fund on september 1, 1989.
Duration measures a fund's sensitivity to changes in
interest rates.
** Source: Micropal Inc. Maximum NAV decline measures
the greatest high-to-low drop in a fund's value
during a certain period, and is based upon monthly
data.
8
<PAGE> 11
ZWEIG STRATEGY FUND
Statement of Net Assets as of June 30, 1995
(Unaudited)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Number Value
of Shares (Note 2)
<S> <C> <C>
-----------------------------------------------
COMMON STOCKS: 75.62%
AEROSPACE: 2.14%
Allied-Signal,
Inc. ............. 5,000 $ 222,500
McDonnell Douglas
Corp. ............ 171,700 13,177,975
Northrop Corp. ..... 45,200 2,356,050
United Technologies
Corp. ............ 37,400 2,921,875
------------
18,678,400
------------
AIR FREIGHT: 0.56%
*Federal Express
Corp. ............ 81,000 4,920,750
------------
AIRLINES: 2.88%
*AMR Corp. ......... 165,800 12,372,825
*British Airways,
Plc. ............. 3,900 262,275
Delta Air Lines
Inc. ............. 142,600 10,516,750
*Northwest Airlines
Corp. ............ 57,500 2,034,063
------------
25,185,913
------------
AUTOMOBILES: 1.26%
Chrysler Corp. ..... 53,500 2,561,312
Ford Motor Co. ..... 285,000 8,478,750
------------
11,040,062
------------
AUTOMOTIVE PARTS AND
EQUIPMENT: 0.35%
Dana Corp. ......... 7,600 217,550
Magna International,
Inc. ............. 47,500 2,095,938
TRW, Inc. .......... 8,800 702,900
------------
3,016,388
------------
BANKS: 11.57%
Bank of New York,
Inc. ............. 250,300 10,105,862
Bank of Boston
Corp. ............ 262,700 9,851,250
BankAmerica Corp. .. 79,500 4,183,688
Barnett Banks
Inc. ............. 27,100 1,388,875
*Bay Ridge Bancorp
Inc. ............. 262,700 5,451,025
BayBanks, Inc. ..... 33,100 2,623,175
Boatmen's Bancshares
Inc. ............. 30,200 1,064,550
Chase Manhattan
Corp. ............ 23,000 1,081,000
Chemical Banking
Corp. ............ 208,800 9,865,800
Citicorp............ 245,100 14,185,162
Comerica Inc. ...... 25,900 832,038
Crestar Financial
Corp. ............ 19,500 955,500
First American
Corp.,
Tennessee......... 16,900 606,287
First Bank Systems
Inc. ............. 18,100 742,100
First Chicago
Corp. ............ 103,100 6,173,113
First Interstate
Bancorp. ......... 131,900 10,584,975
First Tennessee
National Co. ..... 9,200 426,650
Fleet Financial
Group, Inc. ...... 39,600 1,470,150
Hibernia Corp. ..... 156,800 1,391,600
Michigan National
Corp. ............ 15,971 1,698,915
Midlantic Corp. .... 140,800 5,632,000
National City
Corp. ............ 4,400 129,250
NationsBank
Corp. ............ 25,100 1,345,987
NBD Bancorp, Inc.... 79,500 2,544,000
Norwest Corp. ...... 11,100 319,125
Old Kentucky
Financial
Corp. ............ 7,800 265,200
Republic New York
Corp. ............ 25,000 1,400,000
SouthTrust Corp. ... 33,300 770,063
SunTrust Banks
Inc. ............. 11,000 640,750
UJB Financial
Corp. ............ 20,600 625,725
Wells Fargo & Co. .. 12,400 2,235,100
West One Bancorp.... 12,000 400,500
------------
100,989,415
------------
BUILDING MATERIALS AND
PRODUCTS: 0.68%
Armstrong World
Industries
Inc. ............. 14,300 716,787
Johnson Controls
Inc. ............. 7,300 412,450
Lafarge Corp. ...... 10,600 198,750
*National Gypsum
Co. .............. 52,000 2,717,000
*Southdown, Inc. ... 5,900 112,837
*USG Corp. ......... 62,000 1,472,500
*Waban Inc. ........ 21,100 313,863
------------
5,944,187
------------
CASINO OPERATORS:
0.62%
*Grand Casinos
Inc. ............. 81,200 2,872,450
*Players
International
Inc. ............. 125,800 2,516,000
------------
5,388,450
------------
CATALOG
DISTRIBUTION: 0.48%
Premark
International
Inc. ............. 81,400 4,222,625
------------
CHEMICALS: 2.91%
Akzo Nobel N.V.,
ADS............... 6,200 371,225
Cabot Corp.......... 22,800 1,202,700
*Cytec Industries
Inc. ............. 20,400 833,850
Dupont (E. I.) De
Nemours & Co.,
Inc. ............. 14,200 976,250
Eastman Chemical
Co. .............. 39,700 2,362,150
First Mississippi
Corp. ............ 66,400 2,265,900
</TABLE>
9
<PAGE> 12
ZWEIG STRATEGY FUND
Statement of Net Assets as of June 30, 1995
(Unaudited) (Continued)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Number Value
of Shares (Note 2)
<S> <C> <C>
-----------------------------------------------
CHEMICALS: (CONTINUED)
Geon Co. ........... 56,700 $ 1,630,125
Georgia Gulf
Corp. ............ 28,900 942,863
Goodrich B. F.,
Co................ 3,200 171,600
IMC Fertilizer Group
Inc. ............. 50,300 2,722,487
*Methanex Corp. .... 333,300 2,791,388
Monsanto Co. ....... 12,200 1,099,525
Olin Corp........... 28,700 1,478,050
Praxair, Inc. ...... 29,000 725,000
*Sterling Chemicals
Inc. ............. 77,100 896,287
Terra Industries
Inc. ............. 116,100 1,407,713
Union Carbide
Corp. ............ 89,300 2,980,387
Wellman, Inc. ...... 18,500 506,437
------------
25,363,937
------------
COMPUTER COMPONENTS AND
SOFTWARE: 9.74%
Advanced Micro
Devices Inc. ..... 269,000 9,784,875
*Cadence Design
Systems Inc. ..... 23,900 773,762
*Cypress
Semiconductor
Corp. ............ 36,400 1,474,200
*Cyrix Corp. ....... 20,200 487,325
*Electronics for
Imaging, Inc. .... 18,100 945,725
*Exabyte Corp. ..... 80,300 1,114,163
*Frame Technology
Corp. ............ 19,900 582,075
*In Focus Systems
Inc. ............. 41,100 1,109,700
*International
Rectifier
Corp. ............ 5,900 191,750
LSI Logic Corp. .... 214,600 8,396,225
Micron Technology
Inc. ............. 262,900 14,426,637
*National
Semiconductor
Corp. ............ 355,000 9,851,250
*OPTI Inc. ......... 73,500 1,672,125
*Printronix Inc. ... 25,100 696,525
*Proxima Corp. ..... 58,300 1,391,912
*Quantum Corp. ..... 158,700 3,630,262
*Seagate
Technology........ 352,600 13,839,550
*Symbol
Technologies,
Inc. ............. 4,000 153,500
Texas Instruments
Inc. ............. 79,100 10,589,513
*Western Digital
Corp. ............ 174,000 3,023,250
*Zitel Corp. ....... 85,600 952,300
------------
85,086,624
------------
CONGLOMERATES: 2.20%
Canadian Pacific
Ltd. ............. 40,600 705,425
ITT Corp. .......... 54,600 6,415,500
Loews Corp. ........ 39,600 4,791,600
Norsk Hydro AS,
ADR............... 68,100 2,843,175
Pittston Services
Group............. 86,900 2,085,600
Textron Inc. ....... 41,000 2,383,125
------------
19,224,425
------------
CONSTRUCTION EQUIPMENT:
1.97%
Case Corp. ......... 8,800 261,800
Caterpillar Inc. ... 93,700 6,020,225
Cummins Engine Co.
Inc. ............. 103,600 4,519,550
Deere & Co. ........ 23,600 2,020,750
*Navistar
International
Corp. ............ 94,400 1,427,800
PACCAR Inc. ........ 55,200 2,580,600
*Varity Corp. ...... 8,300 365,200
------------
17,195,925
------------
CONTAINERS AND
PACKAGING: 0.59%
Ball Corp. ......... 46,200 1,611,225
Federal Paper Board
Co., Inc. ........ 99,900 3,533,963
------------
5,145,188
------------
DATA PROCESSING
SYSTEMS: 7.76%
*Amdahl Corp. ...... 146,800 1,633,150
Apple Computer
Inc. ............. 144,100 6,691,644
*Compaq Computer
Corp. ............ 119,100 5,404,162
*Dell Computer
Corp. ............ 208,200 12,518,025
*Digital Equipment
Corp. ............ 157,600 6,422,200
*Gateway 2000
Inc. ............. 38,500 875,875
Hewlett-Packard
Co. .............. 15,100 1,124,950
International
Business Machines
Corp. ............ . 148,500 14,256,000
*Micron Electronics
Inc. ............. 49,700 944,300
*Sequent Computer
Systems, Inc. .... 120,300 2,142,844
Sun Microsystems
Inc. ............. 292,900 14,205,650
Tandem Computers
Inc. ............. 93,300 1,504,463
------------
67,723,263
------------
ELECTRICAL PRODUCTS:
1.50%
Pacific Scientific
Co. .............. 2,700 48,263
Philips Electronics
N. V. ............ 305,600 13,064,400
------------
13,112,663
------------
ELECTRONICS: 3.85%
Avnet Inc. ......... 7,200 348,300
*Cellstar Corp. .... 59,200 1,383,800
*Credence Systems
Corp. ............ 15,300 462,825
</TABLE>
10
<PAGE> 13
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Number Value
of Shares (Note 2)
<S> <C> <C>
-----------------------------------------------
ELECTRONICS:
(CONTINUED)
*Electro Scientific
Industries,
Inc. ............. 31,900 $ 1,060,675
General Motors
Corp., Class H.... 61,300 2,421,350
Harris Corp. ....... 80,100 4,135,162
*Komag Inc. ........ 156,800 8,153,600
*Kulicke & Soffa
Industries........ 39,000 2,586,188
Loral Corp. ........ 126,700 6,556,725
*Novellus Systems
Inc. ............. 26,600 1,802,150
*SCI Systems
Inc. ............. 75,800 1,895,000
*Silicon Valley
Group Inc. ....... 20,800 754,000
*Teledyne, Inc. .... 49,900 1,222,550
Teradyne, Inc. ..... 3,700 241,887
Varian Associates
Inc. ............. 11,200 618,800
------------
33,643,012
------------
FARMING AND MILLING:
0.56%
Archer-Daniels-
Midland Co. ...... 263,000 4,898,375
------------
FINANCE: 1.20%
American Express
Co. .............. 53,300 1,872,163
Dean Witter,
Discover & Co. ... 25,700 1,207,900
Finova Group
Inc. ............. 5,600 196,000
Green Tree Financial
Inc. ............. 8,000 355,000
Household
International
Inc. ............. 107,700 5,331,150
Transamerica
Corp. ............ 26,100 1,520,325
------------
10,482,538
------------
FOOD AND BEVERAGES:
0.53%
IBP, Inc. .......... 98,500 4,284,750
Panamerican
Beverages Inc. ... 6,700 201,000
WLR Foods Inc. ..... 10,800 155,250
------------
4,641,000
------------
FOREST AND PAPER
PRODUCTS: 4.23%
Boise Cascade
Corp. ............ 148,700 6,022,350
Bowater, Inc. ...... 144,700 6,493,412
Champion
International
Corp. ............ 175,200 9,132,300
Chesapeake Corp. ... 29,600 921,300
Georgia-Pacific
Corp. ............ 35,300 3,062,275
International Paper
Co. .............. 68,100 5,839,575
*Mercer
International
Inc. ............. 52,300 1,098,300
Reynolds & Reynolds
Inc. ............. 2,800 82,600
Westvaco Corp. ..... 17,400 769,950
Weyerhaeuser Co. ... 20,200 951,925
Willamette
Industries,
Inc. ............. 45,800 2,541,900
------------
36,915,887
------------
HEALTH CARE FACILITIES
AND PRODUCTS: 0.48%
Becton Dickinson &
Co. .............. 9,600 559,200
*Beverly
Enterprises,
Inc. ............. 15,800 195,525
*Maxicare Health
Plans Inc. ....... 49,200 762,600
*OrNda Healthcorp... 44,300 758,638
*Sun Healthcare
Group Inc. ....... 120,800 1,902,600
------------
4,178,563
------------
HOUSEHOLD PRODUCTS:
0.71%
Black & Decker
Corp. ............ 147,800 4,563,325
Briggs & Stratton
Corp. ............ 44,800 1,545,600
*Fieldcrest Cannon
Inc. ............. 4,800 103,800
------------
6,212,725
------------
INDUSTRIAL PRODUCTS:
0.13%
Kennametal Inc. .... 9,300 327,825
Parker Hannifin
Corp.............. 6,700 242,875
Tecumseh Products
Co, Class A....... 11,800 519,200
TRINOVA Corp. ...... 1,900 66,500
------------
1,156,400
------------
INSURANCE: 3.25%
Aetna Life &
Casualty Co. ..... 144,700 9,098,012
AFLAC Inc. ......... 15,200 665,000
Allstate Corp. ..... 85,400 2,529,975
AMBAC Inc. ......... 11,000 441,375
Aon Corp. .......... 2,450 91,262
CIGNA Corp. ........ 56,200 4,362,525
EXEL Limited. ...... 30,000 1,560,000
Old Republic
International
Corp. ............ 1,800 47,025
PartnerRe Holdings
Ltd. ............. 58,500 1,528,313
St. Paul Companies
Inc. ............. 83,700 4,122,225
SunAmerica Inc. .... 15,200 775,200
TIG Holdings
Inc. ............. 1,000 23,000
USF&G Corp. ........ 183,900 2,988,375
Western National
Corp. ............ 11,300 139,838
------------
28,372,125
------------
</TABLE>
11
<PAGE> 14
ZWEIG STRATEGY FUND
Statement of Net Assets as of June 30, 1995
(Unaudited) (Continued)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Number Value
of Shares (Note 2)
<S> <C> <C>
-----------------------------------------------
METALS AND MINING:
3.10%
Alcan Aluminium
Ltd. ............. 25,000 $ 756,250
Aluminum Co. of
America........... 69,600 3,488,700
Amax Gold Inc. ..... 47,100 1,465,987
ASARCO Inc. ........ 74,100 2,260,050
Cyprus Amax Minerals
Co. .............. 139,400 3,972,900
*Magma Copper Co. .. 180,400 2,931,500
Phelps Dodge
Corp. ............ 96,800 5,711,200
Potash Corp. of
Saskatchewan,
Inc. ............. 116,300 6,498,263
------------
27,084,850
------------
OFFICE AUTOMATION AND
EQUIPMENT: 0.65%
*FileNet Corp. ..... 11,100 448,163
*Mentor Graphics
Corp. ............ 109,800 1,894,050
*Network Equipment
Technologies
Inc. ............. 58,200 1,382,250
*Standard
Microsystems
Inc. ............. 125,800 1,949,900
------------
5,674,363
------------
OIL AND GAS: 0.84%
British Petroleum
Plc., ADR......... 33,975 2,909,109
Coastal Corp. ...... 60,800 1,846,800
Panhandle Eastern
Corp. ............ 41,500 1,011,563
*Smith International
Inc. ............. 51,100 855,925
Total 'B', ADS...... 1,161 35,120
USX-Marathon
Group............. 36,200 714,950
------------
7,373,467
------------
PRECISION INSTRUMENTS:
0.45%
*Coherent Inc. ..... 36,100 1,060,438
*Dynatech Corp. .... 22,900 429,375
Tektronix, Inc. .... 49,100 2,418,175
------------
3,907,988
------------
RAILROADS: 1.46%
Conrail Inc. ....... 130,700 7,270,187
CSX Corp. .......... 32,500 2,441,563
Norfolk Southern
Corp. ............ 9,200 619,850
*Santa Fe Pacific
Corp. ............ 93,817 2,392,333
------------
12,723,933
------------
RECREATIONAL PRODUCTS:
0.39%
Brunswick Corp. .... 4,400 74,800
*Cobra Golf Inc. ... 58,300 1,843,737
*First Team Sports
Inc. ............. 64,400 1,481,200
------------
3,399,737
------------
RETAIL TRADE: 1.47%
*Eckerd Corp. ...... 5,600 179,200
*Federated
Department Stores
Inc. ............. 97,000 2,497,750
*Kroger Co. ........ 36,700 986,313
Mercantile Stores
Inc. ............. 20,200 939,300
*Safeway Inc. ...... 17,700 661,537
Sears, Roebuck and
Co. .............. 125,700 7,526,288
------------
12,790,388
------------
SAVINGS AND LOAN
ASSOCIATIONS: 0.51%
*Astoria Financial
Corp. ............ 20,000 715,000
Charter One
Financial Inc. ... 6,300 154,350
*Dime Bancorp.
Inc. ............. 57,700 577,000
GP Financial
Corp. ............ 38,000 897,750
Standard Federal
Bank Corp. ....... 61,800 2,078,025
------------
4,422,125
------------
STEEL: 0.31%
*AK Steel Holdings
Corp. ............ 37,800 1,030,050
Inland Steel
Industries
Inc. ............. 4,300 131,150
*LTV Corp. ......... 69,200 1,012,050
*WHX Corp. ......... 49,000 575,750
------------
2,749,000
------------
TELECOMMUNICATIONS:
0.39%
Telefonica de Espana
ADS............... 79,300 3,072,875
*U.S. Long Distance
Corp. ............ 18,200 295,750
------------
3,368,625
------------
TRUCKING: 0.16%
Ryder Systems
Inc. ............. 37,800 902,475
TNT Freightways
Corp. ............ 24,000 477,000
------------
1,379,475
------------
UTILITIES: 3.74%
American Electric
Power Co. ........ 7,600 266,950
Centerior Energy
Corp. ............ 142,600 1,372,525
Chesapeake Utilities
Corp. ............ 31,800 818,850
CMS Energy Corp. ... 47,700 1,174,613
*Columbia Gas
Systems Inc. ..... 70,400 2,235,200
Consolidated Edison
Co. .............. 23,600 696,200
FPL Group Inc. ..... 22,800 880,650
</TABLE>
12
<PAGE> 15
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Number Value
of Shares (Note 2)
<S> <C> <C>
-----------------------------------------------
UTILITIES: (CONTINUED)
General Public
Utilities Inc. ... 40,000 $ 1,190,000
Illinois Power
Co. .............. 67,700 1,717,887
New England Electric
System Co. ....... 15,400 531,300
Northeast Utilities
Corp. ............ 4,800 108,000
Northern States
Power Co. ........ 700 32,288
Ohio Edison Co. .... 37,600 850,700
Oklahoma Gas &
Electric Co. ..... 11,500 403,937
Pacific Enterprises
Inc. ............. 48,700 1,193,150
Pacific Gas &
Electric Co. ..... 202,100 5,860,900
Pinnacle West
Capital Corp. .... 88,400 2,165,800
Portland General
Corp. ............ 700 15,487
Public Service Co.
of Colorado....... 12,700 412,750
SCE Corp. .......... 268,600 4,599,775
Unicom Corp. ....... 221,700 5,902,763
Western Resources
Inc. ............. 6,100 188,337
------------
32,618,062
------------
TOTAL COMMON STOCKS
(Cost $537,418,256).......... 660,230,853
------------
</TABLE>
<TABLE>
<CAPTION>
Principal
Amount
-------------------------------------------
<S> <C>
SHORT-TERM OBLIGATIONS: 3.42%
FEDERAL HOME LOAN MORTGAGE
CORP.: 1.60%
5.93%, 7/7/95..... $9,500,000 $ 9,490,611
5.91%, 7/13/95.... 2,000,000 1,996,060
5.86%, 7/27/95.... 2,500,000 2,489,419
------------
13,976,090
------------
FEDERAL NATIONAL MORTGAGE
ASSN.: 1.36%
5.86%, 8/14/95.... 2,000,000 1,985,676
5.90%, 8/17/95.... 10,000,000 9,922,972
------------
11,908,648
------------
UNITED STATES TREASURY BILLS:
0.46%
5.65%, 7/6/95..... 1,000,000(a) 999,216
5.66%, 7/27/95.... 1,000,000(a) 995,912
5.46%, 9/14/95.... 2,000,000(a) 1,978,098
------------
3,973,226
------------
TOTAL SHORT-TERM OBLIGATIONS
(Cost $29,857,116)........... 29,857,964
------------
<CAPTION>
Principal Value
Amount (Note 2)
<S> <C>
-------------------------------------------
REPURCHASE AGREEMENTS: 17.57%
With Morgan Stanley & Co.,
Inc., (dated 6/30/95), 6.05%,
due 7/3/95 (Repurchase
proceeds $73,411,993);
collateralized by:
$73,145,000 United States
Treasury Notes, with interest
rates ranging from
7.25%-7.75% and maturities
ranging from 3/31/96-11/30/96
(Market value
$74,912,726)......$73,375,000
$73,375,000
With Prudential Securities
Inc., (dated 6/30/95), 6.16%,
due 7/5/95 (Repurchase
proceeds $80,068,444);
collateralized by:
$81,701,394 various United
States Government Agency
Obligations, with interest
rates ranging from
5.50%-6.738% and maturities
ranging from 8/1/98-6/1/2025
(Market value
$81,600,000).......80,000,000
80,000,000
------------
TOTAL REPURCHASE
AGREEMENTS
(Cost $153,375,000).......... 153,375,000
------------
<CAPTION>
Number
of
Contracts
<S> <C> <C>
-------------------------------------------
NET UNREALIZED
DEPRECIATION ON
FUTURES CONTRACTS:
(0.03)%
Standard & Poor's 500
September 1995
Short futures.............179
(278,944)
------------
TOTAL INVESTMENTS
(Cost
$720,650,372)... 96.58% 843,184,873
Other Assets........ 3.63 31,697,635
----- ------------
Total Assets...... 100.21% 874,882,508
Total
Liabilities..... (0.21) (1,864,886)
----- ------------
NET ASSETS.......... 100.00% $873,017,622
====== ============
</TABLE>
13
<PAGE> 16
ZWEIG STRATEGY FUND
Statement of Net Assets as of June 30, 1995
(Unaudited) (Concluded)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
<S> <C>
-----------------------------------------------
CLASS A SHARES
Net asset value and redemption
price per share
($484,111,178/34,086,614).... $14.20
=====
Maximum public offering
price per share
NAV/(1-maximum sales
charge) ($14.20/.945)........ $15.03
=====
CLASS C SHARES
Net asset value and offering
price per share
($388,906,444/27,372,313).... $14.21
=====
Redemption price per share..... **
=====
</TABLE>
------------
* Non-income producing security
** Varies by length of time shares are held. (Note 3b)
(a) Pledged as collateral for futures transactions.
For Federal income tax purpose, the tax basis of investments owned at June 30,
1995 was $724,347,102 and unrealized appreciation on investments consisted of:
<TABLE>
<S> <C>
Gross unrealized appreciation............................... $124,993,683
Gross unrealized depreciation............................... (6,155,912)
------------
Net unrealized appreciation................................. $118,837,771
============
</TABLE>
See notes to financial statements.
14
<PAGE> 17
ZWEIG APPRECIATION FUND
Statement of Net Assets as of June 30, 1995
(Unaudited)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Number Value
of Shares (Note 2)
<S> <C> <C>
-----------------------------------------------
COMMON STOCKS:
86.01%
ADVERTISING: 0.14%
Grey Advertising
Inc. ............. 2,300 $ 441,600
*Heritage Media
Corp., Class A.... 5,100 147,263
------------
588,863
------------
AEROSPACE: 0.95%
Gencorp Inc. ....... 4,500 48,375
McDonnell Douglas
Corp. ............ 29,700 2,279,475
*Moog Inc., Class
A ................ 4,000 50,500
Northrop Corp. ..... 6,900 359,663
United Technologies
Corp. ............ 15,900 1,242,187
------------
3,980,200
------------
AIR FREIGHT: 0.34%
*Federal Express
Corp. ............ 23,600 1,433,700
------------
AIRLINES: 1.60%
*AMR Corp. ......... 32,000 2,388,000
Delta Air Lines
Inc. ............. 32,600 2,404,250
*KLM Royal Dutch
Airlines N.V. .... 32,900 1,073,363
*Northwest Airlines
Corp. ............ 15,800 558,925
*Worldcorp Inc. .... 27,800 274,525
------------
6,699,063
------------
APPAREL: 0.30%
*Hartmarx Corp. .... 49,900 249,500
*Quicksilver,
Inc. ............. 38,900 1,021,125
------------
1,270,625
------------
AUTO PARTS AND
EQUIPMENT: 0.51%
Dana Corp. ......... 17,600 503,800
Douglas & Lomason
Co. .............. 12,700 190,500
*Durakon Industries
Inc. ............. 28,100 428,525
*Lear Seating
Corp. ............ 3,000 68,625
Magna International
Class A........... 14,700 648,638
Simpson Industries
Inc. ............. 21,900 246,375
Smith (A.O.),
Corp. ............ 2,400 56,400
------------
2,142,863
------------
AUTOMOBILES: 0.86%
Chrysler Corp. ..... 39,400 1,886,275
Ford Motor Co. ..... 50,700 1,508,325
Volvo Aktiebolaget,
Class B, ADR ..... 10,400 198,900
------------
3,593,500
------------
AUTOMOTIVE PARTS AND
EQUIPMENT: 0.59%
Barnes Group
Inc. ............. 10,000 402,500
Carlisle Cos
Inc. ............. 7,700 294,525
Goodyear Tire &
Rubber. .......... 26,700 1,101,375
SPX Corp. .......... 7,400 84,175
Standard Motor
Products Inc. .... 5,300 107,325
Treadco Inc. ....... 7,900 110,600
Wynn's International
Inc. ............. 15,400 358,050
------------
2,458,550
------------
BANKS: 12.28%
Bank of New York,
Inc. ............. 50,100 2,022,787
Bank of Boston
Corp. ............ 58,200 2,182,500
BankAmerica Corp. .. 21,000 1,105,125
Banponce Corp. ..... 30,600 1,086,300
*Barclays plc,
ADR............... 700 30,450
Barnett Banks
Inc. ............. 37,700 1,932,125
*Bay Ridge Bancorp
Inc. ............. 21,400 444,050
BayBanks, Inc. ..... 16,900 1,339,325
Boatmen's Bancshares
Inc. ............. 34,200 1,205,550
Centura Banks
Inc. ............. 24,600 685,725
Chase Manhattan
Corp. ............ 16,400 770,800
Chemical Banking
Corp. ............ 46,400 2,192,400
Citicorp............ 39,200 2,268,700
City National
Corp. ............ 16,400 186,550
Comerica Inc. ...... 35,100 1,127,588
Commerce Bancshares
Inc. ............. 6,930 218,295
Compass Bancshares
Inc. ............. 16,400 473,550
Crestar Financial
Corp. ............ 19,100 935,900
Cullen Frost Bankers
Inc. ............. 12,400 502,200
CVB Financial
Corp. ............ 17,110 218,152
Deposit Guaranty
Corp. ............ 32,400 1,263,600
First American
Corp.,
Tennessee ........ 30,300 1,087,013
First Bank Systems
Inc. ............. 26,600 1,090,600
First Chicago
Corp. ............ 23,700 1,419,037
First Citizens
Bancshares
Inc. ............. 7,700 381,150
First Empire State
Corp. ............ 3,100 531,650
First Fidelity
Bancorp. ......... 19,500 1,150,500
First Interstate
Bancorp. ......... 23,500 1,885,875
First Tennessee
National Corp. ... 7,400 343,175
</TABLE>
15
<PAGE> 18
ZWEIG APPRECIATION FUND
Statement of Net Assets as of June 30, 1995
(Unaudited) (Continued)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Number Value
of Shares (Note 2)
<S> <C> <C>
-----------------------------------------------
BANKS: (CONTINUED)
First Union
Corp. ............ 25,200 $ 1,140,300
First Virginia Banks
Inc. ............. 100 3,750
Firstier Financial
Inc. ............. 21,150 777,263
Fleet Financial
Group, Inc. ...... 29,100 1,080,337
Hibernia Corp.,
Class A .......... 130,100 1,154,638
Hubco Inc. ......... 64,801 1,158,318
Liberty Bancorp
Inc. ............. 10,900 351,525
Magna Group Inc. ... 19,900 437,800
Mercantile
Bancorporation
Inc. ............. 11,800 529,525
Mercantile
Bankshares
Corp. ............ 20,700 465,750
Michigan National
Corp. ............ 5,253 558,788
Mid American
Bancorp. ......... 24,200 408,375
Midlantic Corp. .... 34,600 1,384,000
National Australia
Bank. ............ 500 20,000
National Westminster
Bank. ............ 6,400 334,400
NationsBank
Corp. ............ 10,700 573,787
NBD Bancorp Inc. ... 58,600 1,875,200
North Fork
Bancorp. ......... 64,756 1,173,703
*Premier Bancorp,
Inc. ............. 28,000 504,000
Republic New York
Corp. ............ 20,500 1,148,000
*Riggs National
Corp. ............ 20,400 201,450
Southern National
Corp. ............ 38,900 933,600
SouthTrust Corp. ... 38,325 886,266
SunTrust Banks
Inc. ............. 17,200 1,001,900
UJB Financial
Corp. ............ 9,900 300,712
Wells Fargo & Co. .. 5,700 1,027,425
West One Bancorp. .. 18,900 630,787
Westamerica
Bancorp. ......... 20,700 765,900
Westpac Banking
Corp. ............ 3,500 64,313
Zions Bancorp. ..... 9,000 450,000
------------
51,422,484
------------
BUILDING MATERIALS AND
PRODUCTS: 1.52%
Armstrong World
Industries
Inc. ............. 1,700 85,212
Florida Rock
Industries
Inc. ............. 15,000 425,625
International
Aluminum Co. ..... 17,000 539,750
Johnson Controls
Inc. ............. 12,800 723,200
Lafarge Corp. ...... 20,100 376,875
*Lamson & Sessions
Co. .............. 34,200 196,650
Lone Star Industries
Inc. ............. 19,800 425,700
*Manville Corp. .... 33,500 460,625
Medusa Corp. ....... 1,000 24,875
*Mestek Inc. ....... 14,100 178,894
*National Gypsum
Co. .............. 11,300 590,425
*Nortek Inc. ....... 38,500 332,063
Puerto Rican Cement
Inc. ............. 7,600 231,800
Republic Gypsum
Co. .............. 30,300 303,000
Shelter Components
Corp. ............ 49,887 586,172
*Southdown, Inc. ... 10,900 208,462
*USG Corp. ......... 7,200 171,000
*Waban Inc. ........ 11,700 174,038
Wolohan Lumber
Co. .............. 27,800 326,650
------------
6,361,016
------------
CASINO OPERATORS:
0.31%
*Grand Casinos
Inc. ............. 12,200 431,575
*Players
International
Inc. ............. 43,050 861,000
------------
1,292,575
------------
CATALOG
DISTRIBUTION:
0.33%
*Inmac Corp. ....... 7,100 52,363
Premark
International
Inc. ............. 25,200 1,307,250
------------
1,359,613
------------
CHEMICALS: 2.06%
Aceto Corp. ........ 16,800 247,800
AEP Industries
Inc. ............. 55,950 1,188,937
Akzo Nobel NV,
ADR............... 13,100 784,363
Cabot Corp. ........ 8,000 422,000
Cambrex Corp. ...... 22,100 745,875
*Cytec Industries
Inc. ............. 4,400 179,850
Eastman Chemical
Co. .............. 7,800 464,100
*Electrochemical
Industries
Inc. ............. 54,200 210,025
First Mississippi
Corp. ............ 12,600 429,975
Geon Co. ........... 3,900 112,125
Georgia Gulf
Corp. ............ 10,100 329,512
IMC Fertilizer Group
Inc. ............. 4,400 238,150
*Methanex Corp. .... 18,700 156,613
*Rexene Corp. ...... 11,400 141,075
Stepan Co. ......... 7,968 136,452
*Sterling Chemicals
Inc. ............. 20,600 239,475
Terra Industries
Inc. ............. 35,200 426,800
</TABLE>
16
<PAGE> 19
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Number Value
of Shares (Note 2)
<S> <C> <C>
-----------------------------------------------
CHEMICALS: (CONTINUED)
Union Carbide
Corp. ............ 52,300 $ 1,745,512
Vigoro Corp. ....... 2,100 87,150
Wellman, Inc. ...... 12,000 328,500
------------
8,614,289
------------
COAL MINING: 0.14%
*Ashland Coal
Inc. ............. 15,000 401,250
Pennsylvania
Virginia Corp. ... 5,800 163,125
------------
564,375
------------
COMMERCIAL SERVICES:
0.70%
*ADT Ltd. .......... 58,800 690,900
*C D I Corp. ....... 16,900 346,450
*Comdata Holdings
Corp. ............ 23,700 364,387
International
Recovery Corp. ... 39,450 581,888
M A R C Inc. ....... 19,897 258,661
*Union Corp. ....... 19,700 312,738
*Volt Information
Scientific
Inc. ............. 12,400 378,200
------------
2,933,224
------------
COMPUTER COMPONENTS AND
SOFTWARE: 4.65%
Advanced Micro
Devices Inc. ..... 62,600 2,277,075
Computer Language
Research Corp. ... 62,100 582,187
*Computervision
Corp. ............ 84,100 557,163
*Cypress
Semiconductor
Corp. ............ 11,600 469,800
*Exabyte Corp. ..... 9,200 127,650
*International
Rectifier
Corp. ............ 11,000 357,500
*LSI Logic Corp. ... 54,400 2,128,400
Micron Technology
Inc. ............. 51,000 2,798,625
*National
Semiconductor
Corp. ............ 59,200 1,642,800
*OPTI Inc. ......... 24,500 557,375
*Phoenix
Technologies
Ltd. ............. 80,800 868,600
*Printronix Inc. ... 9,600 266,400
*Proxima Corp. ..... 15,900 379,613
*Quantum Corp. ..... 27,600 631,350
*Seagate Technology
Corp. ............ 37,900 1,487,575
*Siliconix Inc. .... 31,300 602,525
*Software Spectrum
Inc. ............. 16,400 340,300
*Sterling Software
Inc. ............. 6,800 261,800
*Supertex Inc. ..... 21,400 179,225
Texas Instruments
Inc. ............. 11,100 1,486,012
*Western Digital
Corp. ............ 58,200 1,011,225
*Zitel Corp. ....... 39,900 443,887
------------
19,457,087
------------
CONGLOMERATES: 1.81%
Canadian Pacific
Ltd. ............. 8,600 149,425
*Great American
Management &
Investment
Corp. ............ 6,400 238,400
ITT Corp. .......... 15,400 1,809,500
Loews Corp. ........ 18,000 2,178,000
Norsk Hydro A. S.,
ADS .............. 18,600 776,550
Nova Corp. ......... 49,000 416,500
Pittston Services
Group. ........... 38,500 924,000
Textron Inc. ....... 18,900 1,098,563
------------
7,590,938
------------
CONSTRUCTION
EQUIPMENT: 1.96%
AGCO Corp. ......... 32,550 1,220,625
Cascade Corp. ...... 26,300 420,800
Case Corp. ......... 4,200 124,950
Cummins Engine Co.
Inc. ............. 6,300 274,837
Deere & Co. ........ 25,100 2,149,188
JLG Industries
Inc. ............. 47,800 1,266,700
NACCO Industries Inc. 3,100 185,612
*Navistar
International
Corp. ............ 26,900 406,863
Oshkosh Truck Corp.,
Class B........... 76,500 946,687
PACCAR Inc. ........ 10,700 500,225
*Raymond Corp. ..... 16,485 337,943
*Varity Corp. ...... 8,400 369,600
------------
8,204,030
------------
CONSUMER ELECTRICAL:
0.60%
Black & Decker
Corp. ............ 11,200 345,800
Electrolux A. B. ... 700 32,025
Boston Acoustics
Inc. ............. 2,100 39,900
Dynamics Corp. ..... 19,900 455,212
*Fedders Corp. ..... 23,900 140,413
*Fedders Corp.,
Class A........... 5,975 24,647
Harman International
Industries
Inc. ............. 14,300 579,150
*Helen Of Troy
Ltd. ............. 11,200 235,200
*International
Jensen............ 3,300 24,750
Maytag Corp. ....... 14,100 225,600
Windmere Corp. ..... 49,600 409,200
------------
2,511,897
------------
CONTAINERS AND
PACKAGING: 0.37%
Ball Corp. ......... 13,500 470,812
</TABLE>
17
<PAGE> 20
ZWEIG APPRECIATION FUND
Statement of Net Assets as of June 30, 1995
(Unaudited) (Continued)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Number Value
of Shares (Note 2)
<S> <C> <C>
-----------------------------------------------
CONTAINERS AND
PACKAGING: (CONTINUED)
*Continental Can
Inc. ............. 16,500 $ 398,063
Federal Paper Board
Co., Inc. ........ 6,000 212,250
Tranzonic Co. ...... 6,800 102,850
Tuscarora Inc. ..... 6,300 149,625
*U. S. Can Corp. ... 12,600 196,875
------------
1,530,475
------------
DATA PROCESSING
SYSTEMS: 3.98%
*Amdahl Corp. ...... 19,500 216,937
Apple Computer
Inc. ............. 46,500 2,159,344
*CACI International
Inc., Class A..... 59,800 732,550
*Compaq Computer
Corp. ............ 48,100 2,182,538
*Computer Task Group
Inc. ............. 19,200 268,800
*Dell Computer
Corp. ............ 9,600 577,200
*Digital Equipment
Corp. ............ 48,600 1,980,450
International
Business Machines
Corp. ............ 23,800 2,284,800
Microcom Inc. ...... 40,500 607,500
*Micron Electronics
Inc. ............. 19,000 361,000
*Sequent Computer
Systems, Inc. .... 46,900 835,406
*Sun Microsystems
Inc. ............. 47,400 2,298,900
*Tandem Computers
Inc. ............. 61,700 994,912
*Triad Systems
Corp. ............ 159,700 1,147,844
------------
16,648,181
------------
ELECTRICAL PRODUCTS:
0.86%
Charter Power
Systems Inc. ..... 21,200 508,800
*Genlyte Group
Inc. ............. 31,900 185,419
Philips Electronics
N. V. ............ 67,600 2,889,900
------------
3,584,119
------------
ELECTRONICS: 5.25%
*Advanced Circuits
Inc............... 30,700 552,600
*Altron Inc. ....... 49,700 1,192,800
*Bell Industries
Inc. ............. 11,077 236,771
Burr Brown Corp. ... 70,500 1,903,500
*Compucom Systems
Inc. ............. 21,800 103,550
*Computer Products
Inc. ............. 102,600 641,250
CTS Corp. .......... 16,700 509,350
*Electro Scientific
Industries,
Inc. ............. 16,200 538,650
*Electromagnetic
Science Inc. ..... 37,100 570,412
*Esterline
Technologies
Corp. ............ 21,700 490,963
General Motors
Corp., Class H.... 39,400 1,556,300
*Hadco Corp. ....... 21,900 544,762
Harris Corp. ....... 21,800 1,125,425
Helix Technology
Corp. ............ 40,800 1,754,400
*Kemet Corp. ....... 21,000 1,102,500
*Komag Inc. ........ 15,500 806,000
*Kulicke & Soffa
Industries. ...... 9,900 656,494
Loral Corp. ........ 26,600 1,376,550
*LTX Corp. ......... 23,100 205,013
*Novellus Systems
Inc. ............. 7,200 487,800
Park Electrochemical
Co. .............. 16,800 850,500
*Photronics Inc. ... 22,950 705,712
Pioneer Electronics
ADR............... 55,425 1,357,913
*SCI Systems
Inc. ............. 5,000 125,000
*Silicon Valley
Group Inc. ....... 17,700 641,625
*Tech-Sym Corp. .... 28,500 780,187
*Teradyne, Inc. .... 4,500 294,188
Varian Associates
Inc. ............. 2,600 143,650
Watkins Johnson
Co. .............. 16,600 738,700
------------
21,992,565
------------
ENGINEERING: 0.39%
Butler Manufacturing
Company. ......... 27,200 1,128,800
Granite Construction
Inc. ............. 21,700 482,825
------------
1,611,625
------------
ENTERTAINMENT: 0.13%
*Carmike Cinemas
Inc. ............. 9,600 232,800
*Viacom Inc., Class
B................. 6,770 313,959
------------
546,759
------------
ENVIRONMENTAL
SERVICES: 0.32%
BHA Group Inc. Class
A................. 18,700 233,750
*Envirosource
Inc. ............. 100,900 466,663
*Mid-American Waste
Systems Inc. ..... 19,700 96,037
*Republic Waste
Industries
Inc. ............. 6,300 81,900
*Tetra Technologies
Inc. ............. 34,300 415,888
*Western Waste
Industries
Inc. ............. 3,100 62,387
------------
1,356,625
------------
</TABLE>
18
<PAGE> 21
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Number Value
of Shares (Note 2)
<S> <C> <C>
-----------------------------------------------
FARMING AND MILLING:
0.63%
American Maize
Products, Class
A................. 16,500 $ 558,937
Archer-Daniels-
Midland Co. ...... 111,100 2,069,238
*Orange Co, Inc. ... 2,500 15,625
------------
2,643,800
------------
FINANCE: 2.18%
American Express
Co. .............. 27,200 955,400
Dean Witter,
Discover & Co. ... 24,700 1,160,900
Finova Group
Inc. ............. 11,300 395,500
Foothill Group Inc.,
Class A. ......... 28,200 719,100
Household
International
Inc. ............. 32,400 1,603,800
Money Store Inc. ... 55,250 1,978,641
Transamerica
Corp. ............ 19,300 1,124,225
Travelers Inc. ..... 24,300 1,063,125
United Cos.
Financial
Corp. ............ 3,000 135,000
------------
9,135,691
------------
FLUID CONTROLS:
0.37%
*Central Sprinkler
Corp. ............ 20,700 507,150
Graco Inc. ......... 15,600 419,250
Parker Hannifin
Corp. ............ 5,900 213,875
Robbins & Myers
Inc. ............. 14,600 401,500
------------
1,541,775
------------
FOOD AND BEVERAGES:
1.54%
*Chock Full O' Nuts
Corp. ............ 24,500 168,437
Coca Cola
Enterprises
Inc. ............. 19,600 428,750
Goodmark Foods
Inc. ............. 63,600 1,017,600
Hudson Foods Inc.,
Class A........... 57,150 792,956
IBP, Inc. .......... 31,800 1,383,300
International
Multifoods
Corp. ............ 23,000 517,500
Seaboard Corp. ..... 1,500 387,750
*Seneca Foods
Corp. ............ 34,800 1,244,100
*Smithfield Foods
Inc. ............. 300 6,394
WLR Foods Inc. ..... 34,800 500,250
------------
6,447,037
------------
FOREST AND PAPER
PRODUCTS: 2.90%
*American Israeli
Paper Co. ........ 500 26,500
Boise Cascade
Corp. ............ 9,800 396,900
Bowater, Inc. ...... 13,800 619,275
Champion
International
Corp. ............ 45,800 2,387,325
Chesapeake Corp. ... 2,600 80,925
*Domtar Inc. ....... 53,000 503,500
Georgia-Pacific
Corp. ............ 12,200 1,058,350
International Paper
Co. .............. 27,700 2,375,275
Macmillan Bloedell
Ltd. ............. 45,300 639,862
*Mercer
International
Inc. ............. 39,000 819,000
Mosinee Paper
Corp. ............ 7,260 156,090
Rayonier Inc. ...... 6,300 223,650
Scott Paper Co. .... 16,600 821,700
Westvaco Corp. ..... 2,700 119,475
Willamette
Industries
Inc. ............. 34,500 1,914,750
------------
12,142,577
------------
HOME BUILDING AND LAND
DEVELOPMENT: 0.43%
*Champion
Enterprises
Inc. ............. 34,400 546,100
M. D. C. Holdings
Inc. ............. 76,200 476,250
*Patten Corp. ...... 23,361 75,923
*Toll Brothers
Inc. ............. 3,000 48,375
*U. S. Home
Corp. ............ 23,800 547,400
*U. S. Home Corp.
Warrants. ........ 7,529 57,409
Webb (Del) Corp. ... 2,700 62,775
------------
1,814,232
------------
HOSPITAL AND
HEALTHCARE: 0.23%
*Maxicare Health
Plans Inc. ....... 24,900 385,950
*OrNda
Healthcorp. ...... 12,400 212,350
*Sun Healthcare
Group Inc. ....... 23,700 373,275
------------
971,575
------------
HOTELS AND RESORTS:
0.29%
Club Med Inc. ...... 500 15,937
*Marcus Corp. ...... 33,950 1,026,988
*Prime Hospitality
Corp. ............ 18,200 179,725
------------
1,222,650
------------
HOUSEHOLD FURNITURE:
0.31%
Bush Industries
Inc., Class A..... 8,437 94,916
*Chromcraft
Revington Inc. ... 19,500 414,375
Falcon Products
Inc. ............. 1,400 17,850
Haverty Furniture
Inc. ............. 33,500 343,375
Oneida Ltd. ........ 28,000 413,000
------------
1,283,516
------------
</TABLE>
19
<PAGE> 22
ZWEIG APPRECIATION FUND
Statement of Net Assets as of June 30, 1995
(Unaudited) (Continued)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Number Value
of Shares (Note 2)
<S> <C> <C>
-----------------------------------------------
INDUSTRIAL PRODUCTS,
SERVICES AND
MACHINERY: 1.98%
A. P. Green
Industries
Inc. ............. 8,000 $ 158,000
Acme-Cleveland
Corp. ............ 5,700 134,662
*American Filtrona
Corp. ............ 6,200 182,900
Ampco-Pittsburgh
Corp. ............ 21,700 198,013
Applied Power Inc.,
Class A........... 16,000 462,000
BMC Industries
Inc. ............. 71,000 1,783,875
Brady W.H. & Co. ... 6,700 455,600
Commercial Intertech
Co. .............. 19,500 312,000
Furon Co. .......... 11,500 253,000
Gleason Corp. ...... 23,000 508,875
Kysor Industrial
Corp. ............ 25,100 520,825
MacDermid Inc. ..... 23,000 1,058,000
*O'Sullivan
Corp. ............ 17,800 204,700
Regal Beloit
Corp. ............ 8,000 124,000
*Rogers Corp. ...... 3,700 204,887
Tecumseh Products
Co., Class A...... 20,500 902,000
Varlen Corp. ....... 23,320 548,020
*Vista Resources
Inc. ............. 14,500 293,625
------------
8,304,982
------------
INSURANCE: 4.70%
Aegon N.V. ADR...... 8,500 296,437
Aetna Life &
Casualty Co. ..... 34,200 2,150,325
Allstate Corp. ..... 34,400 1,019,100
American National
Insurance Co. .... 12,500 762,500
American Re Corp. .. 10,400 387,400
CIGNA Corp. ........ 29,000 2,251,125
*CNA Financial
Corp. ............ 10,000 863,750
*EXEL Limited. ..... 8,700 452,400
Guaranty National
Corp. ............ 26,900 497,650
*Independent
Insurance
Group. ........... 16,900 249,275
Kansas City Life
Insurance Co. .... 13,600 652,800
*Meridian Insurance
Group Inc. ....... 34,900 453,700
Midland Co. ........ 700 30,625
NAC Re Corp. ....... 2,100 65,363
National Re
Corp. ............ 13,300 445,550
Old Republic
International
Corp. ............ 30,600 799,425
PartnerRE Holdings
Ltd. ............. 19,100 498,987
Pioneer Financial
Services Inc. .... 31,500 464,625
Poe & Brown Inc. ... 10,000 232,500
Protective Life
Corp. ............ 44,800 1,220,800
PXRE Corp. ......... 17,100 401,850
Reliastar Financial
Corp. ............ 2,483 94,975
RLI Corp. .......... 20,250 460,688
*Selective Insurance
Group Inc. ....... 14,200 468,600
St. Paul Companies
Inc. ............. 42,400 2,088,200
SunAmerica Inc. .... 6,100 311,100
TIG Holdings
Inc. ............. 3,000 69,000
Transatlantic
Holdings Inc. .... 6,400 416,000
USF&G Corp. ........ 62,300 1,012,375
Washington National
Corp. ............ 24,700 509,437
Western National
Corp. ............ 5,700 70,538
------------
19,697,100
------------
INVESTMENT BANKING AND
BROKERAGE: 1.05%
Alex Brown Inc. .... 37,200 1,543,800
Eaton Vance Corp. .. 7,200 232,200
Fahnestock Viner
Holdings.......... 25,000 178,125
Jefferies Group
Inc. ............. 11,400 410,400
Quick & Reilly Group
Inc. ............. 44,583 1,616,134
*Sherwood Group
Inc. ............. 39,300 324,225
*White River
Corp. ............ 3,100 107,725
------------
4,412,609
------------
LAWN CARE PRODUCTS:
0.22%
Briggs & Stratton
Corp. ............ 15,400 531,300
Toro Co. ........... 14,300 400,400
------------
931,700
------------
MANUFACTURING: 0.79%
*ACX Technologies
Inc. ............. 5,200 217,100
Blount Inc. Class
A................. 6,200 276,675
*Core Industries
Inc. ............. 19,400 208,550
*Griffon Corp. ..... 102,400 819,200
*Indresco Inc. ..... 30,200 468,100
Mark IV Industries
Inc. ............. 4,232 90,988
Olin Corp. ......... 4,800 247,200
Standex
International
Corp. ............ 7,600 239,400
Synalloy Corp. ..... 3,450 64,688
Teledyne Inc. ...... 5,000 122,500
Tredegar Industries
Inc. ............. 17,800 442,775
Valmont Industries
Inc. ............. 4,500 97,312
------------
3,294,488
------------
</TABLE>
20
<PAGE> 23
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Number Value
of Shares (Note 2)
<S> <C> <C>
-----------------------------------------------
MARINE
TRANSPORTATION:
0.35%
International
Shipholding....... 24,200 $ 505,175
Oglebay Norton
Co. .............. 10,100 345,925
Stolt Nielsen
Co. .............. 20,900 600,875
------------
1,451,975
------------
MEDICAL INSTRUMENTS
AND SUPPLIES: 0.67%
Allied Healthcare
Products Co. ..... 68,300 1,109,875
Bindley Western
Industries
Inc. ............. 18,000 285,750
*Bio-Radiology Labs
Inc. ............. 2,900 104,400
Kinetic Concepts
Inc. ............. 41,900 298,537
*Medrad Inc. ....... 2,100 35,438
*North American
Biologicals
Inc. ............. 64,700 606,562
Owens & Minor
Inc. ............. 30,000 375,000
------------
2,815,562
------------
METAL FABRICATION:
0.88%
*Alltrista Corp. ... 5,200 100,100
Amcast Industrial
Corp. ............ 12,300 233,700
Brenco Inc. ........ 25,800 312,825
Commercial Metals
Co. .............. 12,933 349,191
Elco Industrial
Inc. ............. 27,400 513,750
Handy & Harman
Co. .............. 2,000 31,000
*Intermet Corp. .... 12,600 119,700
*Mueller Industrial
Inc. ............. 8,300 408,775
Pitt-Des Moines
Inc. ............. 12,100 409,887
Precision Castparts
Inc. ............. 13,950 489,994
*SPS Technologies
Inc. ............. 13,700 515,462
Timken Co. ......... 4,700 216,788
------------
3,701,172
------------
METALS AND STEELS:
3.04%
*AK Steel Holdings
Corp. ............ 15,800 430,550
Alcan Aluminium
Ltd. ............. 18,200 550,550
Aluminum Company Of
America........... 23,900 1,197,987
*Amax Gold Inc. .... 13,200 410,850
*Armco Inc. ........ 11,200 75,600
ASARCO Inc. ........ 11,600 353,800
Brush Wellman
Inc. ............. 12,000 256,500
Carpenter Technology
Corp. ............ 7,000 476,875
Chaparral Steel
Co. .............. 9,700 95,788
*Cleveland Cliffs
Inc. ............. 10,200 392,700
*Cominco Ltd. ...... 28,400 521,850
Cyprus Amax Minerals
Co. .............. 78,100 2,225,850
*LTV Corp. ......... 38,800 567,450
*Magma Copper Co. .. 37,600 611,000
*National Steel
Corp. Class B..... 16,000 248,000
Phelps Dodge
Corp. ............ 23,900 1,410,100
Potash Corp. of
Saskatchewan,
Inc. ............. 1,800 100,575
*Quanex Corp. ...... 1,500 37,125
Roanoke Electric
Steel Corp. ...... 49,800 560,250
*Steel of West
Virginia Inc. .... 67,100 771,650
Texas Industries
Inc. ............. 19,400 754,175
*WHX Corp. ......... 56,500 663,875
------------
12,713,100
------------
OFFICE AUTOMATION AND
EQUIPMENT: 0.67%
*Apertus
Technologies
Inc. ............. 20,200 176,750
*FileNet Corp. ..... 19,400 783,275
Nam Tai Electronics
Inc. ............. 22,800 213,750
*Network Equipment
Technologies
Inc. ............. 6,300 149,625
Oce Van Der Griten
N.V. ............. 10,000 562,500
*Proteon Inc. ...... 68,800 404,200
*Standard
Microsystems
Inc. ............. 33,600 520,800
------------
2,810,900
------------
OIL AND GAS: 1.84%
*Atwood Oceanics
Inc. ............. 40,800 655,350
British Petroleum
Plc., ADR......... 11,772 1,007,977
*Canadian Occidental
Petroleum Ltd. ... 900 28,012
Coastal Corp. ...... 39,300 1,193,738
*Crystal Oil Co. ... 7,000 215,250
Diamond Shamrock
Inc. ............. 20,400 525,300
Fina Inc., Class
A................. 5,800 270,425
*Lufkin Industries
Inc. ............. 11,100 208,125
Phoenix Resource
Co. .............. 17,400 552,450
*Pride Petroleum
Services Inc. .... 48,300 362,250
*RPC Energy Services
Inc. ............. 54,500 493,906
*Smith International
Inc. ............. 10,100 169,175
Total 'B' ADS....... 11,200 338,800
</TABLE>
21
<PAGE> 24
ZWEIG APPRECIATION FUND
Statement of Net Assets as of June 30, 1995
(Unaudited) (Continued)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Number Value
of Shares (Note 2)
<S> <C> <C>
-----------------------------------------------
OIL AND GAS:
(CONTINUED)
*Tuboscope Vetco
International
Co. .............. 63,000 $ 401,625
Williams Companies
Inc. ............. 36,899 1,286,853
------------
7,709,236
------------
PRECISION
INSTRUMENTS: 0.68%
*Coherent Inc. ..... 29,000 851,875
*Dynatech Corp. .... 20,200 378,750
Newport Corp. ...... 49,000 459,375
Technitrol Inc. .... 28,200 401,850
Tektronix, Inc. .... 15,300 753,525
------------
2,845,375
------------
PRINTING AND FORMS:
0.81%
American Business
Products Inc. .... 6,375 121,125
Banta Corp. ........ 3,450 114,713
*Devon Group
Inc. ............. 37,400 1,103,300
Graphic Industries
Inc. ............. 90,100 889,737
Reynolds & Reynolds
Inc. ............. 38,600 1,138,700
------------
3,367,575
------------
PUBLISHING: 0.24%
*Franklin Electronic
Publishing Co. ... 21,100 540,688
Media General Inc.,
Class A........... 2,700 84,375
Plenum Publishing
Corp. ............ 11,200 392,000
------------
1,017,063
------------
RAILROADS: 0.85%
Conrail Inc. ....... 40,900 2,275,062
CSX Corp. .......... 9,100 683,638
Norfolk Southern
Corp. ............ 8,400 565,950
*Santa Fe Pacific
Corp. ............ 1,828 46,614
------------
3,571,264
------------
REAL ESTATE INVESTMENT
TRUSTS: 0.40%
Centerpoint
Properties
Corp. ............ 22,600 466,125
Countrywide Credit
Industries
Inc. ............. 22,400 285,600
CV REIT Inc. ....... 37,100 333,900
HRE Properties
Inc. ............. 13,300 179,550
Health & Retirement
Properties
Trust............. 1,500 22,500
Storage Equities
Inc. ............. 24,300 397,912
------------
1,685,587
------------
RECREATIONAL
PRODUCTS: 0.40%
Brunswick Corp. .... 21,300 362,100
Coachmen Industries
Inc. ............. 24,400 372,100
*First Team Sports
Inc. ............. 9,300 213,900
Fuji Photo Film,
ADR............... 2,200 104,500
Outboard Marine
Corp. ............ 6,700 131,487
Thor Industries
Inc. ............. 15,300 302,175
Winnebago Industries
Inc. ............. 20,400 178,500
------------
1,664,762
------------
RENTAL AND LEASING:
1.57%
Amplicon Inc. ...... 31,100 489,825
Comdisco Inc. ...... 49,900 1,515,712
*Electro Rent
Corp. ............ 68,050 1,497,100
GATX Corp. ......... 6,200 292,175
McGrath Rentcorp.... 36,200 633,500
PHH Corp. .......... 8,700 387,150
Rollins Truck
Leasing Corp. .... 29,025 312,019
Ryder Systems
Inc. ............. 38,600 921,575
Xtra Corp. ......... 10,900 504,125
------------
6,553,181
------------
RESTAURANTS: 0.22%
*Quantum Restaurant
Group............. 37,300 424,287
Sizzler
International
Inc. ............. 74,500 474,938
------------
899,225
------------
RETAIL TRADE: 3.23%
Big B Discount Drug
Inc. ............. 77,200 1,090,450
*Bon-Ton Stores
Inc. ............. 22,700 236,931
Casey's General
Stores Inc. ...... 60,200 1,083,600
*Fabri-Centers
America Inc. ..... 22,300 462,725
*Federated
Department Stores
Inc. ............. 72,500 1,866,875
*Good Guys Inc. .... 35,300 388,300
*Great Atlantic &
Pacific Tea
Co. .............. 16,700 440,462
*Intertan Inc. ..... 68,600 514,500
*Kroger Co. ........ 41,300 1,109,938
*MacFrugals Bargains
Inc. ............. 25,200 441,000
Mercantile Stores
Inc. ............. 6,700 311,550
Pier 1 Imports
Inc. ............. 10,710 99,067
*Regis Corp. ....... 15,600 300,300
*Revco Department
Stores Inc. ...... 4,300 103,200
*Rex Stores
Corp. ............ 5,000 70,000
*Riser Foods Inc.
Class A........... 24,800 251,100
*Safeway Inc. ...... 28,200 1,053,975
</TABLE>
22
<PAGE> 25
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Number Value
of Shares (Note 2)
<S> <C> <C>
-----------------------------------------------
RETAIL TRADE:
(CONTINUED)
Schultz Sav-O Stores
Inc. ............. 5,000 $ 112,500
Sears, Roebuck and
Co. .............. 38,100 2,281,238
*Shopko Stores
Inc. ............. 20,600 221,450
Smith's Food & Drug
Centers., Class
B................. 8,200 161,950
*Super Rite
Corp. ............ 40,500 875,812
*Trak Auto Corp. ... 2,200 36,300
------------
13,513,223
------------
SAVINGS & LOAN
ASSOCIATIONS: 1.39%
*Astoria Financial
Corp. ............ 13,200 471,900
*Charter One
Financial Inc. ... 16,900 414,050
*Dime Bancorp,
Inc. ............. 100,900 1,009,000
Eagle Financial
Corp. ............ 42,883 954,147
G P Financial
Corp. ............ 17,600 415,800
*Poughkeepsie
Savings Bank
Corp. ............ 37,100 213,325
Standard Federal
Bank Corp. ....... 36,100 1,213,862
TCF Financial
Corp. ............ 12,500 593,750
Westcorp Inc. ...... 34,900 545,313
------------
5,831,147
------------
SHOES: 0.18%
*Cache, Inc. ....... 51,700 213,263
Weyco Group Inc. ... 800 28,800
Wolverine Worldwide
Inc. ............. 23,700 491,775
------------
733,838
------------
TELECOMMUNICATIONS:
0.55%
*Applied Digital
Access Corp. ..... 29,500 383,500
*Norstan Inc. ...... 16,000 388,000
Telefonica de Espana
ADS............... 24,300 941,625
*VTEL Corp. ........ 45,600 604,200
------------
2,317,325
------------
TEXTILES: 0.29%
Culp Inc. .......... 28,900 223,975
*Fieldcrest Cannon
Inc. ............. 3,400 73,525
*Guilford Mills
Inc. ............. 15,600 380,250
Lilly Industrial
Coatings, Class
A................. 34,400 404,200
Springs Industries
Inc., Class A..... 3,700 137,825
------------
1,219,775
------------
TRUCKING: 0.51%
*Buiders Transport
Inc. ............. 26,800 314,900
*FRP Properties
Inc. ............. 34,100 733,150
*Landstar Systems
Inc. ............. 14,100 363,075
*M. S. Carriers
Inc. ............. 12,600 239,400
*Matlack Systems
Inc. ............. 47,250 472,500
------------
2,123,025
------------
UTILITIES: 6.14%
American Electric
Power Inc. ....... 48,700 1,710,587
Atlantic Energy..... 15,000 283,125
Baltimore Gas &
Electric.......... 39,800 995,000
Boston Edison
Co. .............. 14,300 373,588
Centerior Energy
Corp. ............ 16,800 161,700
Chesapeake Utilities
Corp. ............ 6,300 162,225
CMS Energy Corp. ... 19,300 475,262
*Columbia Gas
Systems Inc. ..... 37,700 1,196,975
Consolidated Edison
Co. .............. 23,100 681,450
*DQE Inc. .......... 7,500 176,250
Duke Power Co. ..... 30,700 1,274,050
*Eastern
Enterprises....... 2,400 71,700
Empresa Nacional de
Electricidad,
ADR............... 11,000 541,750
Florida Progress
Corp. ............ 37,100 1,159,375
FPL Group Inc. ..... 21,000 811,125
General Public
Utilities Inc. ... 22,500 669,375
*Illinois Power
Co. .............. 15,900 403,463
Indiana Energy
Inc. ............. 400 7,600
Midwest Resources
Inc. ............. 7,300 108,587
Niagara Mohawk Power
Co. .............. 27,900 411,525
Nipsco Industries
Inc. ............. 15,300 520,200
Northeast Utilities
Corp. ............ 54,400 1,224,000
Northwest Natural
Gas Co. .......... 13,600 425,000
Ohio Edison Co. .... 47,300 1,070,163
Pacific Enterprises
Inc. ............. 9,600 235,200
Pacific Gas &
Electric Co. ..... 74,400 2,157,600
Pennsylvania
Enterprise........ 6,300 195,300
Pinnacle West
Capital Corp. .... 20,000 490,000
Portland General
Corp. ............ 47,400 1,048,725
*Public Service Co.
of New Mexico..... 32,300 460,275
</TABLE>
23
<PAGE> 26
ZWEIG APPRECIATION FUND
Statement of Net Assets as of June 30, 1995
(Unaudited) (Continued)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Number Value
of Shares (Note 2)
<S> <C> <C>
-----------------------------------------------
UTILITIES:
(CONTINUED)
Rochester Gas &
Electric Co. ..... 8,700 $ 184,875
SCE Corp. .......... 122,500 2,097,812
Sierra Pacific
Resources......... 8,300 180,525
South Western
Energy Co. ....... 11,000 152,625
*Southern Union
Co. .............. 22,900 415,063
St. Joseph Light &
Power Co. ........ 13,200 372,900
Unicom Corp. ....... 79,100 2,106,038
Westcoast Energy
Inc. ............. 25,300 373,175
Western Resources
Inc............... 9,500 293,312
Wicor Inc. ......... 1,400 39,375
------------
25,716,875
------------
WATER SUPPLY: 0.09%
American Water Works
Inc. ............. 12,000 381,000
------------
WHOLESALE
DISTRIBUTORS:
0.44%
Bearings Inc. ...... 1,600 49,000
Castle A. M. &
Co. .............. 29,300 531,062
Hawkins Chemical
Inc. ............. 54,074 365,000
Hughes Supply
Inc. ............. 10,500 231,000
Noland Co. ......... 32,400 680,400
------------
1,856,462
------------
TOTAL COMMON STOCKS
(Cost $289,783,710).......... 360,091,620
------------
</TABLE>
<TABLE>
<CAPTION>
Principal
Amount
<S> <C>
-----------------------------------------------
SHORT-TERM OBLIGATIONS: 2.85%
FEDERAL FARM CREDIT BANK: 1.19%
5.85%, 7/7/95..... $5,000,000 $ 4,995,125
------------
FEDERAL NATIONAL MORTGAGE
ASSN.: 0.48%
5.86%, 8/14/95.... 2,000,000 1,985,675
------------
UNITED STATES TREASURY BILLS:
1.18%
5.50%, 8/31/95.... 1,000,000(a) 991,280
5.46%, 9/14/95.... 2,000,000(a) 1,978,098
5.37%, 9/21/95.... 2,000,000(a) 1,976,176
------------
4,945,554
------------
TOTAL SHORT-TERM
OBLIGATIONS
(Cost $11,924,268)........... 11,926,354
------------
<CAPTION>
Principal Value
Amount (Note 2)
<S> <C>
-----------------------------------------------
REPURCHASE AGREEMENTS: 11.12%
With Morgan Stanley & Co.,
Inc., (dated 6/30/95), 6.05%,
due 7/3/1995 (Repurchase
proceeds $21,575,872)
collateralized by:
$22,285,000 United States
Treasury Notes with interest
rates ranging from
5.75%-7.75% and maturities
ranging from
3/31/96-8/15/2003
(Market Value
$22,017,372)......$21,565,000
$ 21,565,000
With Prudential Securities
Inc., (dated 6/30/95), 6.16%,
due 7/5/1995 Repurchase
proceeds $25,021,389
collateralized by:
$25,354,434 of various United
States Government Agency
Obligations with interest
rates ranging from
6.00%-7.59% and maturities
ranging from
12/01/2003-7/1/2024
(Market Value
$25,500,000).......25,000,000
25,000,000
------------
TOTAL REPURCHASE
AGREEMENTS
(Cost $46,565,000)........... 46,565,000
------------
<CAPTION>
Number of
Contracts
<S> <C>
-----------------------------------------------
NET UNREALIZED DEPRECIATION
ON FUTURES CONTRACTS: (0.20)%
Standard & Poor's 500
September 1995
Short futures.............144
(240,207)
Mid-Cap 400
September 1995
Short futures.............271
(577,889)
------------
TOTAL FUTURES CONTRACTS........ (818,096)
------------
TOTAL INVESTMENTS
(Cost
$348,272,978)... 99.78% 417,764,878
Other Assets........ 0.64 2,655,756
------ ------------
Total Assets...... 100.42% 420,420,634
Total
Liabilities..... (0.42) (1,745,547)
------ ------------
NET ASSETS.......... 100.00% $418,675,087
====== ============
</TABLE>
24
<PAGE> 27
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
<S> <C>
-----------------------------------------------
CLASS A
Net asset value and redemption
price per share
($254,674,152/17,106,052).... $14.89
======
Maximum public offering
price per share
NAV/(1-maximum sales
charge) ($14.89/.945)........ $15.76
======
CLASS C
Net asset value and offering
price per share
($164,000,935/11,112,538).... $14.76
======
Redemption price per share..... **
======
</TABLE>
------------
* Non-income producing security.
** Varies by length of time shares are held. (Note 3b)
(a) Pledged as collateral for futures transactions.
For Federal income tax purpose, the tax basis of investments owned at June 30,
1995 was $348,318,891 and unrealized appreciation on investments consisted of:
<TABLE>
<S> <C>
Gross unrealized appreciation................................ $74,018,946
Gross unrealized depreciation................................ (4,572,959)
-----------
Net unrealized appreciation.................................. $69,445,987
===========
</TABLE>
See notes to financial statements.
25
<PAGE> 28
ZWEIG MANAGED ASSETS
Statement of Net Assets as of June 30, 1995
(Unaudited)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Number Value
of Shares (Note 2)
<S> <C> <C>
--------------------------------------------------
COMMON STOCKS: 31.07%
UNITED STATES: 17.38%
AEROSPACE: 0.65%
Textron Inc. ........ 26,700 $ 1,551,938
United Technologies
Corp. .............. 38,800 3,031,250
------------
4,583,188
------------
AIRLINES: 0.13%
Delta Air Lines
Inc. ............... 6,300 464,625
Southwest Airlines
Inc. ............... 17,900 427,362
------------
891,987
------------
AUTOMOBILES: 0.87%
Ford Motor Corp. .... 55,300 1,645,175
General Motors
Corp. .............. 95,400 4,471,875
------------
6,117,050
------------
BANKS: 0.76%
BankAmerica Corp. ... 62,000 3,262,750
Bankers Life Holding
Corp. .............. 4,900 93,100
Bankers Trust NY
Corp. .............. 12,200 756,400
Mellon Bank Corp. ... 23,600 982,350
US Bancorp. ......... 10,000 240,625
------------
5,335,225
------------
BIOTECHNOLOGY: 0.07%
*Chiron Corp. ....... 1,600 104,000
*Lam Research
Corp. .............. 6,000 384,000
------------
488,000
------------
BROADCASTING: 0.10%
Comcast Corp., Class
A................... 7,200 130,950
Turner Broadcasting
Corp., Class B...... 4,700 96,350
*Viacom Inc., Class
B................... 10,500 486,938
------------
714,238
------------
BUILDING MATERIALS &
PRODUCTS: 0.17%
Johnson Controls
Inc. ............... 21,500 1,214,750
------------
CASINO OPERATORS:
0.06%
*Promus Co. ......... 11,100 432,900
------------
CHEMICALS: 0.26%
Albemarle Corp. ..... 3,800 59,375
Ethyl Corp. ......... 6,800 72,250
Georgia Gulf
Corp. .............. 2,400 78,300
IMC Global Corp. .... 1,700 92,012
Olin Corp. .......... 1,200 61,800
PPG Industries
Inc. ............... 16,500 709,500
Rohm & Haas Inc. .... 4,500 246,938
*Teledyne Inc. ...... 7,900 193,550
Union Carbide
Corp. .............. 9,700 323,737
------------
1,837,462
------------
COMPUTERS & SOFTWARE:
0.57%
*Lotus Development
Corp. .............. 8,500 541,875
*Oracle Systems
Inc. ............... 84,200 3,252,225
*Sybase Inc. ........ 9,100 267,313
------------
4,061,413
------------
CONGLOMERATES: 0.66%
Tenneco Inc. ........ 58,400 2,686,400
Westinghouse Electric
Corp. .............. 132,700 1,940,738
------------
4,627,138
------------
COSMETICS: 0.40%
Avon Products
Inc. ............... 3,000 201,000
*Perrigo Co. ........ 2,600 28,762
Procter & Gamble
Corp. .............. 36,200 2,601,875
------------
2,831,637
------------
CONSTRUCTION EQUIPMENT:
0.05%
Stewart & Stevenson
Inc. ............... 10,700 389,213
------------
CONTAINERS: 0.10%
*Stone Container
Corp. .............. 14,900 316,625
Temple-Inland
Corp. .............. 7,900 376,238
------------
692,863
------------
DATA PROCESSING:
0.07%
*Dell Computer
Corp. .............. 7,700 462,962
------------
ELECTRICAL EQUIPMENT:
0.34%
*American Power
Conversion Corp. ... 30,000 686,250
Exide Corp. ......... 5,400 232,200
Whirlpool Corp. ..... 27,300 1,501,500
------------
2,419,950
------------
ELECTRONICS: 1.66%
Intel Corp. ......... 55,600 3,520,175
*Micron Technology
Corp. .............. 45,200 2,480,350
Motorola Inc. ....... 79,200 5,316,300
Tyco International
Ltd. ............... 5,000 270,000
Western Digital
Corp. .............. 9,100 158,112
------------
11,744,937
------------
ENGINEERING: 0.28%
Cincinnati Milacron
Corp. .............. 15,800 426,600
Harnischfeger
Industries, Inc. ... 20,800 720,200
*Varity Corp. ....... 18,900 831,600
------------
1,978,400
------------
FINANCE: 0.09%
Countrywide Credit
Corp. .............. 29,000 609,000
------------
</TABLE>
26
<PAGE> 29
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Number Value
of Shares (Note 2)
<S> <C> <C>
--------------------------------------------------
FOOD & BEVERAGES:
1.03%
Anheuser-Busch
Companies........... 5,700 $ 324,187
Brown-Forman Corp.,
Class A............. 500 16,500
Brown-Forman Corp.,
Class B............. 800 26,700
ConAgra Inc. ........ 32,400 1,129,950
Lancaster Colony
Inc. ............... 13,000 464,750
Pepsico Inc. ........ 114,300 5,214,938
Tyson Foods Inc.,
Class A............. 4,000 92,500
------------
7,269,525
------------
FOREST & PAPER
PRODUCTS: 0.30%
Weyerhaeuser Co. .... 36,300 1,710,637
Willamette
Industries, Inc. ... 7,800 432,900
------------
2,143,537
------------
HOSPITAL & HEALTHCARE:
0.65%
*Foundation Health
Corp. .............. 58,800 1,587,600
*Health Systems
International
Inc. ............... 28,600 829,400
*Oxford Health Plans
Inc. ............... 46,100 2,178,225
------------
4,595,225
------------
HOUSEHOLD PRODUCTS:
0.20%
Black & Decker
Corp. .............. 44,800 1,383,200
------------
INSURANCE: 0.31%
American Re Corp. ... 500 18,625
Conseco Inc. ........ 16,900 766,837
Marsh & McLennan
Co. ................ 1,000 81,125
Old Republic
International
Inc. ............... 49,400 1,290,575
------------
2,157,162
------------
INVESTMENT BANKING
& BROKERAGE: 0.84%
JP Morgan & Co. ..... 31,700 2,222,963
Morgan Stanley Co.,
Inc. ............... 11,600 939,600
Paine Webber Group
Inc. ............... 22,100 417,137
*PNC Financial
Corp. .............. 37,600 991,700
Salomon Brothers
Inc. ............... 33,600 1,348,200
------------
5,919,600
------------
LEISURE & ENTERTAINMENT:
0.33%
Fleetwood Enterprises
Inc. ............... 200 3,950
Time Warner Corp. ... 56,200 2,311,225
*U.S. Industries
Corp. .............. 763 10,396
------------
2,325,571
------------
METALS: 0.09%
*Bethlehem Steel
Corp. .............. 35,400 575,250
*Freeport McMoran
Corp. .............. 5,200 91,650
------------
666,900
------------
MINING: 0.11%
*Freeport McMoran
Copper & Gold Corp.,
Class A............. 2,700 55,688
Santa Fe Pacific Gold
Corp. .............. 60,200 729,925
------------
785,613
------------
NATURAL GAS: 0.05%
Equitable Resources
Inc. ............... 1,000 28,875
Sonat, Inc. ......... 10,000 305,000
------------
333,875
------------
OFFICE AUTOMATION
& EQUIPMENT: 0.07%
Pitney Bowes Inc. ... 3,900 149,663
Xerox Corp........... 2,700 316,575
------------
466,238
------------
OIL & GAS: 0.71%
Enron Corp. ......... 25,100 881,638
Occidental Petroleum
Corp. .............. 43,200 988,200
Phillips Petroleum
Corp. .............. 11,400 380,475
Texaco Inc. ......... 35,300 2,316,563
Tosco Corp. ......... 5,200 165,750
USX-Marathon Group... 12,500 246,875
------------
4,979,501
------------
PHARMACEUTICALS:
1.15%
Ivax Corp. .......... 4,700 115,738
Merck & Co. ......... 128,000 6,272,000
Schering-Plough
Inc. ............... 38,200 1,685,575
Witco Corp. ......... 2,300 74,175
------------
8,147,488
------------
PHOTOGRAPHIC PRODUCTS:
0.12%
Polaroid Corp. ...... 21,300 867,975
------------
RAILROADS: 0.12%
Burlington Northern
Corp. .............. 7,600 481,650
Conrail Inc. ........ 6,700 372,687
------------
854,337
------------
RESTAURANTS: 0.07%
*Host Marriott
Corp. .............. 19,000 201,875
Morrison Restaurants
Inc. ............... 4,300 103,200
Wendy's International
Inc. ............... 12,600 225,225
------------
530,300
------------
</TABLE>
27
<PAGE> 30
ZWEIG MANAGED ASSETS
Statement of Net Assets as of June 30, 1995
(Unaudited) (Continued)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Number Value
of Shares (Note 2)
<S> <C> <C>
--------------------------------------------------
RETAIL TRADE: 1.55%
*K-Mart Corp. ....... 45,000 $ 658,125
*Meyer (Fred)
Inc. ............... 2,900 78,662
Sears, Roebuck and
Co. ................ 61,600 3,688,300
*Wal-Mart Stores
Co. ................ 226,100 6,048,175
Woolworth Co. ....... 30,000 453,750
------------
10,927,012
------------
SAVINGS & LOAN
ASSOCIATIONS: 0.24%
Great Western
Financial Corp. .... 42,700 880,688
H.F. Ahmanson
Corp. .............. 37,200 818,400
------------
1,699,088
------------
TELECOMMUNICATIONS:
0.41%
*Bay Networks
Inc. ............... 6,100 252,387
MCI Communications
Corp. .............. 36,300 798,600
SBC Communications
Inc. ............... 37,100 1,766,888
*Vanguard Cellular
Systems, Inc. ...... 2,100 50,400
------------
2,868,275
------------
TOBACCO: 0.80%
Philip Morris
Companies........... 56,500 4,202,187
RJR Nabisco Holdings
Corp. .............. 38,080 1,061,480
UST Inc. ............ 13,000 386,750
------------
5,650,417
------------
TRANSPORTATION: 0.00%
Alexander & Baldwin
Inc. ............... 700 15,575
Tidewater Inc. ...... 800 20,100
------------
35,675
------------
UTILITIES: 0.94%
Centerior Energy
Corp. .............. 30,900 297,412
CMS Energy Corp. .... 18,100 445,712
Northeast Utilities
Corp. .............. 34,100 767,250
Public Service
Colorado Co. ....... 13,100 425,750
SCE Corp. ........... 127,700 2,186,863
Texas Utilities
Corp. .............. 64,500 2,217,187
Utilicorp............ 9,300 261,562
Valero Energy
Corp. .............. 1,300 26,325
------------
6,628,061
------------
TOTAL UNITED STATES
(Cost $116,894,529)............. 122,666,888
------------
FOREIGN STOCKS: 13.69%
AUSTRALIA: 1.82%
BANKS: 0.24%
National Australia
Bank................ 158,586 1,249,991
Westpac Banking
Corp. .............. 133,470 481,546
------------
1,731,537
------------
BUILDING MATERIALS:
0.05%
Boral Ltd., Co. ..... 133,622 333,387
------------
CHEMICALS: 0.03%
ICI Australia
Inc. ............... 36,230 236,263
------------
CONGLOMERATES: 0.23%
CRA Ltd. ............ 66,432 901,283
CSR Ltd. ............ 124,809 389,254
Pacific Dunlop Ltd.,
Co. ................ 173,286 363,571
------------
1,654,108
------------
FOOD & BEVERAGES: 0.11%
Fosters Brewing
Group............... 391,537 346,902
Goodman Fielder
Ltd. ............... 397,939 330,011
*SouthCorp
Holdings............ 46,593 92,804
------------
769,717
------------
FOREST AND PAPER
PRODUCTS: 0.11%
Amcor Ltd., Co. ..... 104,751 770,716
------------
METALS AND MINING: 0.20%
*Australia National
Industries.......... 75,518 65,300
Mim Holdings Ltd.,
Corp. .............. 179,692 221,614
*Newcrest Mining
Ltd. ............... 11,700 49,511
Western Mining
Corp. .............. 197,904 1,084,356
------------
1,420,781
------------
OIL AND GAS: 0.44%
*Ampolex Ltd.,
Inc. ............... 20,543 46,596
Broken Hill
Properties Ltd.,
Inc. ............... 235,802 2,894,917
Santos Ltd., Inc. ... 54,061 129,519
------------
3,071,032
------------
NEWSPAPERS &
PUBLISHING: 0.25%
News Corp., Ltd. .... 214,854 1,197,038
News Corp., Ltd.,
Preferred........... 109,249 539,745
------------
1,736,783
------------
REAL ESTATE: 0.08%
Lend Lease Corp. .... 24,083 306,931
*Westfield Trust..... 130,227 227,077
------------
534,008
------------
RETAIL TRADE: 0.08%
Coles Myer Ltd.,
Co. ................ 175,840 549,658
------------
Total Australia.................. 12,807,990
------------
</TABLE>
28
<PAGE> 31
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Number Value
of Shares (Note 2)
<S> <C> <C>
--------------------------------------------------
CANADA: 2.22%
BANKS: 0.37%
Bank of Montreal..... 54,300 $ 1,136,287
Royal Bank of
Canada.............. 66,900 1,497,349
------------
2,633,636
------------
CONGLOMERATES: 0.26%
Canadian Pacific
Ltd. ............... 69,589 1,209,109
Imasco Corp. ........ 34,406 610,421
------------
1,819,530
------------
FOOD & BEVERAGES: 0.21%
Labatt (John)
Ltd. ............... 19,147 388,479
Seagram Ltd., Co. ... 31,900 1,104,538
------------
1,493,017
------------
FOREST & PAPER PRODUCTS:
0.04%
Macmillan Bloedel
Ltd. ............... 20,835 291,928
------------
METALS AND MINING: 0.41%
Alcan Aluminum
Corp. .............. 46,137 1,395,644
Barrick Gold Inc. ... 59,100 1,494,834
------------
2,890,478
------------
OIL AND GAS: 0.34%
Canadian Occidental
Petroleum Corp. .... 7,000 217,177
Imperial Oil Ltd. ... 35,201 1,306,837
Transcanada Pipelines
Inc. ............... 67,704 905,507
------------
2,429,521
------------
RAILROADS: 0.04%
Bombardier Inc.,
Class B............. 10,000 242,925
------------
TELECOMMUNICATIONS:
0.48%
BCE Inc. ............ 39,514 1,269,387
Thomson Corp. ....... 80,900 1,104,083
Northern Telecom
Inc. ............... 27,700 1,011,050
------------
3,384,520
------------
UTILITIES: 0.07%
Laidlaw Inc., Class
B................... 23,000 221,375
Nova Corp. .......... 31,500 267,750
------------
489,125
------------
Total Canada..................... 15,674,680
------------
FRANCE: 2.91%
AUTOMOBILES: 0.20%
*Peugeot SA.......... 4,500 624,754
Renault Ord. ........ 24,600 771,365
------------
1,396,119
------------
BANKS: 0.46%
*Banque National..... 16,900 815,800
Cie Fin Paribas...... 9,650 580,492
Compagnie Bancaire... 1,229 147,049
Compagnie De Suez.... 5,100 283,958
Credit Commercial.... 7,257 325,011
Credit Local De
France.............. 2,450 227,436
Societe Generale..... 7,750 906,497
------------
3,286,243
------------
BROADCASTING: 0.02%
Canal Plus........... 1,150 157,761
------------
BUILDING MATERIALS &
PRODUCTS: 0.08%
LaFarge Coppee....... 7,050 548,582
------------
CHEMICALS: 0.20%
Air Liquide Co. ..... 6,350 1,015,212
*Rhone Poulenc....... 16,900 381,055
------------
1,396,267
------------
CONGLOMERATES: 0.22%
AXA.................. 13,750 743,164
Lyonnais Des Eaux-
Dumez............... 8,650 818,692
------------
1,561,856
------------
CONSUMER PRODUCTS AND
SERVICES: 0.56%
Cie Generale Des
Eaux................ 9,200 1,024,856
Groupe Danone Co. ... 6,300 1,060,504
Loreal Co. .......... 5,150 1,292,943
*Pinault-Printemps... 1,200 257,452
Sanofi SA............ 5,300 293,563
------------
3,929,318
------------
ELECTRONICS: 0.19%
Alcatel Alsthom...... 11,900 1,072,286
*Michelin Inc. ...... 5,550 246,043
------------
1,318,329
------------
FOOD AND BEVERAGES: 0.19%
LVMH Moet Hennessy... 7,300 1,314,675
------------
INSURANCE: 0.09%
Compagnie UAP........ 25,100 658,629
------------
OIL AND GAS: 0.21%
Societe National Elf
Aquitane............ 20,400 1,508,692
------------
RETAIL TRADE: 0.27%
Carrefour............ 2,050 1,050,901
Cie De St. Gobain.... 7,300 882,474
------------
1,933,375
------------
TOURISM: 0.05%
Accor................ 2,600 346,487
------------
UTILITIES-ELECTRIC:
0.17%
*Eurotunnel SA....... 43,150 120,168
Total SA, Class B.... 18,200 1,096,315
------------
1,216,483
------------
Total France..................... 20,572,816
------------
GERMANY: 1.14%
AUTOMOBILES: 0.14%
Daimler-Benz AG...... 1,570 720,276
Volkswagen AG........ 1,047 302,196
------------
1,022,472
------------
</TABLE>
29
<PAGE> 32
ZWEIG MANAGED ASSETS
Statement of Net Assets as of June 30, 1995
(Unaudited) (Continued)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Number Value
of Shares (Note 2)
<S> <C> <C>
--------------------------------------------------
BANKS: 0.20%
*Bayer Hypoth........ 1,629 $ 445,464
Deutsche Bank AG..... 12,180 591,346
Dresdner Bank AG..... 13,574 392,276
------------
1,429,086
------------
CHEMICALS: 0.22%
Bayer AG............. 2,195 545,530
Hoechst AG........... 4,509 973,389
------------
1,518,919
------------
CONGLOMERATES: 0.02%
*Viag AG............. 417 164,435
------------
CONSUMER PRODUCTS AND
SERVICES: 0.01%
*Karstadt AG......... 189 82,885
------------
ELECTRONICS: 0.14%
Siemens AG........... 1,966 975,101
------------
INSURANCE: 0.18%
Allianz AG Holding... 666 1,187,531
Allianz AG Holding
Rights.............. 864 64,295
------------
1,251,826
------------
MACHINERY AND EQUIPMENT:
0.12%
*Mannesmann AG....... 2,682 818,674
------------
UTILITIES-ELECTRIC:
0.11%
*RWE AG.............. 2,259 784,215
------------
Total Germany.................... 8,047,613
------------
HONG KONG: 0.10%
BANKS: 0.01%
Bank of East Asia.... 82 247
HSBC Holdings........ 4,146 53,181
------------
53,428
------------
CONGLOMERATES: 0.04%
Jardine Matheson &
Co. ................ 38,355 281,909
------------
FOOD & BEVERAGES: 0.01%
Dairy Farm
International
Holdings............ 116,383 100,089
------------
REAL ESTATE: 0.04%
Hong Kong Land
Holdings............ 159,240 289,817
New World
Development......... 468 1,558
------------
291,375
------------
Total Hong Kong.................. 726,801
------------
JAPAN: 1.97%
APPAREL: 0.06%
Japan Wool Textile... 8,000 72,555
*Kanebo Corp. ....... 44,000 96,910
Nisshinbo Corp. ..... 28,000 220,634
------------
390,099
------------
AUTOMOBILES: 0.14%
Suzuki Motor
Corp. .............. 21,000 233,745
Toyota Motor
Corp. .............. 37,000 732,152
------------
965,897
------------
BANKS: 0.19%
*Fuji Bank........... 12,000 241,696
Mitsubishi Bank...... 52,000 1,120,844
------------
1,362,540
------------
BUILDING MATERIALS
& PRODUCTS: 0.06%
Toto Ltd., Co. ...... 28,000 399,056
------------
CHEMICALS: 0.27%
Asahi Denka Kogyo
KK.................. 115,000 956,294
*Kuraray Co. ........ 16,000 173,568
Nippon Chemical
Industries.......... 69,000 454,310
*Shin-Etsu
Chemical............ 10,000 175,500
Sumitomo Chemical
Co. ................ 38,000 148,595
------------
1,908,267
------------
CONSUMER PRODUCTS AND
SERVICES: 0.21%
*Mitsukoshi Corp. ... 14,000 99,929
Noritake Co. ........ 53,000 353,955
Sony Corp. .......... 21,600 1,035,476
------------
1,489,360
------------
ELECTRONICS: 0.08%
*Pioneer Electronic
Co. ................ 5,000 84,805
Sumitomo Electric
Industries Inc. .... 16,000 190,341
Yokogawa Electric
Co. ................ 38,000 266,312
------------
541,458
------------
FINANCE: 0.05%
*Japan Securities
Finance............. 8,000 89,517
Mitsubishi Trust &
Banking............. 19,000 268,550
------------
358,067
------------
FOOD AND BEVERAGES: 0.16%
Ajinomoto Co.
Inc. ............... 20,000 205,182
Asahi Breweries...... 1,000 11,508
*Kikkoman Corp. ..... 57,000 395,437
Nisshin Oil Mills
Co. ................ 73,000 505,576
------------
1,117,703
------------
FOREST AND PAPER
PRODUCTS: 0.09%
New OJI Paper Co.
Ltd. ............... 67,000 643,166
------------
HOMEBUILDERS: 0.09%
*Daiwa House
Industrial Corp. ... 7,000 107,185
Kajima Corp. ........ 20,000 198,350
Shimizu Corp. ....... 34,000 328,386
------------
633,921
------------
</TABLE>
30
<PAGE> 33
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Number Value
of Shares (Note 2)
<S> <C> <C>
--------------------------------------------------
MACHINERY AND
EQUIPMENT: 0.17%
*Ebara Corp. ........ 6,000 $ 72,791
Ishikawajima Co. .... 66,000 258,865
*Japan Steel Works
Co. ................ 146,000 325,011
*Kawasaki Steel...... 42,000 137,525
*Okuma Corp. ........ 46,000 292,578
*Shinagawa Refract... 19,000 138,751
------------
1,225,521
------------
METALS: 0.03%
*Mitsubishi Steel
Manufacturing....... 16,000 77,832
*Shimura Kako Co. ... 19,000 90,636
*Sumitomo Metal
Manufacturing....... 10,000 73,733
------------
242,201
------------
PHARMACUETICALS:
0.01%
*Yamanouchi
Pharmacueticals..... 4,000 89,988
------------
PHOTOGRAPHIC PRODUCTS:
0.04%
Fuji Photo Film
Ltd. ............... 13,000 307,774
------------
PRINTING AND
PUBLISHING: 0.02%
Dai Nippon
Printing............ 10,000 159,010
------------
RAILROADS: 0.09%
Keisei Electric
Railway Co. ........ 71,000 468,309
*Odakyu Electric
Railway Co. ........ 20,000 145,110
------------
613,419
------------
RETAIL TRADE: 0.10%
Itochu Corp. ........ 124,000 722,957
------------
TRANSPORTATION: 0.05%
*Kawasaki Kisen
Kaisha Corp. ....... 126,000 326,491
------------
UTILITIES-ELECTRIC:
0.06%
Osaka Gas Co. ....... 46,000 169,584
Showa Shell Sekiyu... 21,850 208,976
*Tokyo Gas Co. ...... 7,000 27,538
------------
406,098
------------
Total Japan...................... 13,902,993
------------
SPAIN: 0.76%
BANKS: 0.16%
*Banco Bilbao
Vizcaya............. 19,722 569,232
Banco Central
Hispano............. 13,805 292,424
Banco De Santander
SA.................. 5,719 225,520
*Banco Espanol
Credito............. 8,743 60,217
------------
1,147,393
------------
BUSINESS SERVICES:
0.05%
*Autopistas Cesa
Co. ................ 35,500 344,474
------------
CHEMICALS: 0.02%
Fin Alba Corp. ...... 2,563 132,288
------------
ENERGY: 0.17%
Gas Natural.......... 3,222 384,756
*Repsol Petroleo
SA.................. 26,296 827,380
------------
1,212,136
------------
HOMEBUILDERS: 0.03%
*Fomento De
Construcion......... 2,827 240,466
------------
REAL ESTATE: 0.03%
Inmobil Metro
Vasco............... 6,442 191,520
------------
TELECOMMUNICATIONS:
0.11%
Telefonica De
Espana.............. 60,809 783,396
------------
UTILITIES-ELECTRIC:
0.19%
Empresa Nacional
Electridad.......... 16,632 821,366
Sevillana
Electridad.......... 45,294 278,667
*Unionelectrica SA... 45,623 214,004
------------
1,314,037
------------
Total Spain...................... 5,365,710
------------
UNITED KINGDOM: 2.77%
BANKS: 0.31%
Abbey National Plc.... 78,046 581,084
HSBC Holdings........ 56,287 725,776
HSBC Holdings, Class
A................... 21,900 282,731
*National Westminster
Bank................ 47,269 410,593
Royal Bank of
Scotland............ 12,251 83,319
Warburg (SG) Group... 9,700 112,497
------------
2,196,000
------------
BUILDING MATERIAL
& PRODUCTS:
0.15%
Redland Corp. ....... 73,800 483,722
*RMC Group Inc. ..... 23,600 396,478
Williams Holdings
Co. ................ 37,514 188,290
------------
1,068,490
------------
BROADCASTING: 0.08%
*Reed International
Corp. .............. 37,800 530,999
------------
CHEMICALS: 0.08%
BOC Group............ 15,372 196,376
*Imperial Chemical
Industries Inc. .... 28,400 348,349
------------
544,725
------------
CONGLOMERATES: 0.09%
Hanson Co. .......... 76,328 267,140
Siebe................ 20,114 200,315
TI Group............. 28,215 174,611
------------
642,066
------------
CONSUMER PRODUCTS
AND SERVICES: 0.40%
BAA Plc. ............ 94,248 737,698
De La Rue Plc. ...... 11,700 174,222
Glaxo Holdings
Plc. ............... 107,415 1,318,379
MB-Caradon........... 29,261 109,860
</TABLE>
31
<PAGE> 34
ZWEIG MANAGED ASSETS
Statement of Net Assets as of June 30, 1995
(Unaudited) (Continued)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Number Value
of Shares (Note 2)
<S> <C> <C>
--------------------------------------------------
Smithkline Beecham... 20,242 $ 183,235
*Tomkins Corp. ...... 87,900 314,638
------------
2,838,032
------------
FOOD AND BEVERAGES:
0.46%
Allied Domecq
Plc. ............... 50,900 442,535
BASS Plc. ........... 21,408 204,857
Bat Industries
Inc. ............... 121,472 929,528
Cadbury Schweppes
Inc. ............... 112,426 820,957
*Unilever Plc. ...... 30,800 623,521
*United Biscuits
Corp. .............. 42,500 217,035
------------
3,238,433
------------
FOREST AND PAPER
PRODUCTS: 0.03%
*Bowater Plc. ....... 23,700 182,111
------------
INSURANCE: 0.13%
*Prudential Corp. ... 100,200 534,016
*Royal Insurance
Co. ................ 56,200 276,268
Sun Alliance Group
Inc. ............... 25,624 136,563
------------
946,847
------------
METALS & MINING:
0.04%
3 I Group Inc. ...... 44,400 257,112
------------
OIL AND GAS: 0.32%
British Petroleum
Plc. ............... 214,991 1,540,841
*Enterprise Oil
Co. ................ 16,700 105,342
Shell Transport...... 52,696 629,591
------------
2,275,774
------------
RETAIL TRADE: 0.28%
Boots Co. ........... 25,384 205,549
*Great Universal
Stores Inc. ........ 33,900 317,114
Marks & Spencer
Corp. .............. 157,806 1,015,497
Sears Plc. .......... 56,328 89,162
*Tesco Corp. ........ 79,400 366,320
------------
1,993,642
------------
TELECOMMUNICATIONS:
0.22%
*British
Telecommunications
Corp. .............. 202,673 1,263,930
Cable & Wireless..... 43,142 295,126
------------
1,559,056
------------
TOURISM: 0.08%
Forte................ 48,759 176,469
Ladbroke Group....... 39,411 105,960
*Rank Organization
Inc. ............... 38,900 245,685
------------
528,114
------------
UTILITIES-ELECTRIC:
0.10%
National Power
Corp. .............. 75,782 $ 537,097
*Southern Electric
Plc. .............. 18,000 183,843
------------
720,940
------------
Total United Kingdom............. 19,522,341
------------
TOTAL FOREIGN STOCKS
(Cost $97,302,778).............. 96,620,944
------------
TOTAL COMMON STOCKS
(Cost $214,197,307)............. 219,287,832
------------
PREFERRED STOCK: 0.21%
*RJR Nabisco Holdings
Corp. Conv. Series C
(Cost $1,601,120)... 244,000 1,494,500
------------
<CAPTION>
Principal
Amount
--------------------------------------------------
<S> <C>
BONDS: 31.74%
UNITED STATES: 15.38%
CORPORATE BONDS:
0.92%
Exxon Capital Corp.,
7.875%, 8/15/97..... $3,030,000 $ 3,132,126
General Electric
Capital Corp.,
8.375%, 3/1/2001.... 3,050,000 3,337,700
------------
TOTAL CORPORATE BONDS
(Cost $6,586,011)............... 6,469,826
------------
UNITED STATES
GOVERNMENT & AGENCY
OBLIGATIONS: 14.46%
FEDERAL HOME LOAN MORTGAGE CORP.:
1.63%
7.05%, 3/24/2004.... 8,535,000 8,554,938
7.61%, 9/1/2004..... 2,900,000 2,969,954
------------
11,524,892
------------
FEDERAL NATIONAL MORTGAGE ASSN.:
2.61%
6.20%, 7/10/2003.... 2,380,000 2,288,556
6.48%, 2/18/2004.... 2,900,000 2,765,330
6.90%, 3/10/2004.... 2,900,000 2,917,681
6.85%, 4/05/2004.... 7,080,000 7,284,265
7.60%, 4/14/2004.... 3,115,000 3,176,060
------------
18,431,892
------------
UNITED STATES TREASURY BONDS:
10.03%
7.625%, 2/15/2025... 62,700,000 70,752,937
------------
UNITED STATES TREASURY NOTES:
0.19%
4.625%, 2/15/96..... 1,340,000 1,331,625
------------
TOTAL UNITED STATES GOVERNMENT &
AGENCY OBLIGATIONS (Cost
$99,335,645).................... 102,041,346
------------
TOTAL UNITED STATES
(Cost $105,921,656)............. 108,511,172
------------
</TABLE>
32
<PAGE> 35
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal Value
Amount (Note 2)
<S> <C>
----------------------------------------------
FOREIGN GOVERNMENT
OBLIGATIONS: 16.36%
AUSTRALIAN GOVERNMENT
BONDS: 3.31%
6.75%,
11/15/2006.. A$ 39,919,000 $ 23,343,753
DEUTSCHLAND REPUBLIC
GOVERNMENT
BONDS: 3.13%
6.00%,
9/15/2003... DM 350,000 236,886
7.50%,
11/11/2004.. DM29,400,000 21,884,478
FRANCE O.A.T.
BONDS: 3.42%
8.25%,
2/27/2004... ff 34,650,000 7,460,353
7.50%,
4/25/2005... ff 22,050,000 4,514,605
7.75%,
10/25/2005.. ff 58,300,000 12,113,341
EXPORT-IMPORT BANK
OF JAPAN: 4.06%
4.375%,
10/1/2003... Y2,178,000,000 28,666,836
JAPANESE IBRD
BONDS: 1.18%
4.375%,
10/1/2003... Y 610,000,000 8,329,550
UNITED KINGDOM
TREASURY BONDS: 1.26%
7.75%,
9/8/2006.... L 5,926,000 8,923,881
------------
TOTAL FOREIGN GOVERNMENT
OBLIGATIONS
(Cost $106,952,331)......... 115,473,683
------------
TOTAL BONDS (Cost
$212,873,987)............... 223,984,855
------------
SHORT-TERM OBLIGATIONS
UNITED STATES:
4.66%
FEDERAL HOME LOAN MORTGAGE
CORP.: 0.71%
5.91%,
7/13/95..... 5,000,000 4,990,150
------------
FEDERAL NATIONAL MORTGAGE
ASSN.: 3.53%
5.90%,
7/7/95...... 15,000,000 14,985,250
5.86%,
8/17/95..... 10,000,000 9,923,494
------------
24,908,744
------------
UNITED STATES TREASURY BILLS:
0.42%
5.58%,
7/13/95..... 1,000,000(a) 998,140
5.625%,
8/3/95...... 1,000,000(a) 994,844
5.34%,
8/31/95..... 1,000,000(a) 991,280
------------
2,984,264
------------
TOTAL SHORT-TERM OBLIGATIONS
(Cost $32,882,830).......... 32,883,158
------------
REPURCHASE AGREEMENTS: 29.99%
UNITED STATES:
22.53%
With Prudential Securities
Inc., (dated 6/30/95),
6.16%, due 7/3/95
(Repurchase proceeds
$5,002,567); collateralized
by: $5,406,000 various
United States Government
Agency Obligations,
6.375%-8.00%,
6/30/97-11/29/2019 (Market
Value
$5,100,035).......$5,000,000 $ 5,000,000
With Prudential Securities
Inc., (dated 6/30/95),
6.16%, due 7/5/95
(Repurchase proceeds
$154,079,053);
collateralized by:
$154,845,095 various United
States Government Agency
Obligations, 5.665%-9.00%,
8/1/99-6/1/2025 (Market
Value
$157,080,000)....154,000,000 154,000,000
AUSTRALIA: 1.18%
With Morgan Stanley & Co.,
Inc., (dated 6/29/95),
5.50%, due 7/6/95
(Repurchase proceeds
A$11,727,529);
collateralized by:
A$8,350,000 of various long
term Corporate and
Government Bonds and Notes,
5.63%-7.25%, 9/15/98-8/1/99
(Market Value
A$11,952,045)...A$11,715,000
8,303,955
FRANCE: 2.01%
With Morgan Stanley & Co.,
Inc., (dated 6/29/95),
7.00%, due 7/6/95
(Repurchase proceeds
ff69,065,483);
collateralized by:
ff18,873,000 of various long
term Corporate and
Government Bonds and Notes,
3.38%-8.38%, 1/31/97-
11/23/2005 (Market Value
ff70,408,747)...ff68,985,000 14,231,054
GERMANY: 0.60%
With Morgan Stanley & Co.,
Inc., (dated 6/29/95),
4.375%, due 7/6/95
(Repurchase proceeds
DM5,854,977); collateralized
by: DM10,307,000 of various
long term Corporate Bonds
and Notes, 6.125%-9.50%,
4/2/98-8/19/2003 (Market
Value
DM5,967,781).....DM5,850,000 4,226,508
</TABLE>
33
<PAGE> 36
ZWEIG MANAGED ASSETS
Statement of Net Assets as of June 30, 1995
(Unaudited) (Continued)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal Value
Amount (Note 2)
<S> <C>
----------------------------------------------
JAPAN: 1.22%
With Morgan Stanley & Co.,
Inc., (dated 6/29/95),
0.90%, due 7/6/95
(Repurchase proceeds
Y731,766,283);
collateralized by:
Y2,281,154,000 of various
long term Corporate Bonds
and Notes, 6.125%-7.375%,
4/2/98-11/2/2000 (Market
Value
Y747,094,402)...Y731,640,000 $ 8,617,988
SPAIN: 0.52%
With Morgan Stanley & Co.,
Inc., (dated 6/29/95),
7.75%, due 7/6/95
(Repurchase proceeds
Ep446,677,105);
collateralized by:
Ep24,300,000 of various long
term Corporate Bonds and
Notes, 6.125%-8.75%, 4/2/98-
7/29/2002 (Market Value
Ep456,201,456) Ep446,005,000 3,683,109
UNITED KINGDOM:
1.93%
With Morgan Stanley & Co.,
Inc., dated 6/29/95),
6.375%, due 7/6/95
(Repurchase proceeds
L8,585,484); collateralized
by: L9,538,000 of various
long term Corporate Bonds
and Notes, 8.125%-9.50%,
6/19/98-8/19/2003 (Market
Value
L8,748,559).......L8,575,000 13,641,967
------------
TOTAL REPURCHASE AGREEMENTS
(Cost $211,706,939)......... 211,704,581
------------
NET UNREALIZED DEPRECIATION ON
FOREIGN FORWARD CURRENCY
CONTRACTS: (0.54)%.......... (3,793,825)
------------
</TABLE>
<TABLE>
<CAPTION>
Foreign
Currency
<S> <C>
----------------------------------------------
FOREIGN
CURRENCY:
0.03%
Australian
Dollar........ A$ 4,563 3,235
Canadian
Dollar........ Can$ 148,301 107,943
French Franc.... ff 4,985 1,029
German Deutsche
Mark.......... DM 1,398 1,010
Hong Kong
Dollar........ HK$ 154,914 20,021
Japanese Yen.... Y 4,568,653 53,814
Spanish
Peseta........ Ep 1,941 16
U.K. Pound
Sterling...... L 3,803 6,050
------------
TOTAL FOREIGN CURRENCY
(Cost $194,341)............. 193,118
------------
</TABLE>
<TABLE>
<CAPTION>
Number of
Futures Value
Contracts (Note 2)
<S> <C>
--------------------------------------------------
NET UNREALIZED
DEPRECIATION ON
FUTURES CONTRACTS:
(0.13)%
Australia All Ords
Sept.
1995 Long Futures... 221 $ (136,326)
Simex Nikkei Japan
Sept. 1995
Long Futures........ 85 (728,384)
Standard & Poor's
500 Sept. 1995
Short Futures....... 57 (19,075)
------------
TOTAL FUTURES CONTRACTS.......... (883,785)
------------
TOTAL INVESTMENTS
(Cost
$673,456,524) ...... 97.03% 684,870,434
Other Assets......... 7.37 52,006,185
----- ------------
Total Assets........ 104.40% 736,876,619
Total Liabilities... (4.40) (31,075,812)
----- ------------
NET ASSETS........... 100.00% $705,800,807
====== ============
CLASS A SHARES
Net asset value and redemption
price per share
($153,510,328/12,225,683)....... $12.56
======
Maximum public offering price
per share NAV/(1-Maximum
sales charge) ($12.56/.945)..... $13.29
======
CLASS C SHARES
Net asset value and redemption
price per share
($552,290,479/44,007,265)....... $12.55
======
Redemption price per share....... **
======
</TABLE>
-------------------------------------------
* Non-income producing security.
** Varies by length of time shares are held (Note 3b).
(a) Pledged as collateral for futures transactions.
For Federal income tax purposes, the tax basis of investments owned at June
30,1995 was $675,355,954 and unrealized appreciation on investments consisted
of:
<TABLE>
<S> <C>
Gross unrealized
appreciation............. $27,168,951
Gross unrealized
depreciation............. (17,472,573)
-----------
Net unrealized
appreciation............. $ 9,696,378
===========
</TABLE>
See notes to financial statements.
34
<PAGE> 37
ZWEIG MANAGED ASSETS
Statement of Assets and Liabilities as of
June 30, 1995 (Unaudited) (In thousands)
--------------------------------------------------------------------------------
<TABLE>
<S> <C>
ASSETS:
Investments in securities at value (identified cost $461,555, Note 2)........ $477,650
Repurchase agreements at value (identified cost $211,707).................... 211,705
Foreign currency holdings (identified cost $194)............................. 193
Unrealized appreciation on foreign forward currency contracts................ 2,368
Cash......................................................................... 44
Receivables:
Investment securities sold................................................. 41,996
Dividends and interest..................................................... 7,376
Capital shares sold, Class A............................................... 445
Capital shares sold, Class C............................................... 860
With brokers for futures contracts......................................... 884
Unamortized organization and offering expenses (Note 2a)..................... 402
-------------------------------------------------------------------------------------------
Total Assets............................................................. 743,923
-------------------------------------------------------------------------------------------
LIABILITIES:
Net unrealized depreciation on futures contracts............................. 884
Unrealized depreciation on foreign forward currency contracts................ 6,162
Payables:
Advisory fee............................................................... 39
Distribution and service fees.............................................. 499
Investment securities purchased............................................ 27,715
Capital shares redeemed, Class A........................................... 482
Capital shares redeemed, Class C........................................... 1,553
Accrued expenses........................................................... 788
-------------------------------------------------------------------------------------------
Total Liabilities........................................................ 38,122
-------------------------------------------------------------------------------------------
NET ASSETS................................................................... $705,801
===========================================================================================
NET ASSETS CONSIST OF:
Capital paid-in.............................................................. $675,499
Undistributed net investment income.......................................... 5,417
Undistributed net realized gain.............................................. 13,289
Net unrealized appreciation of investments................................... 11,596
-------------------------------------------------------------------------------------------
NET ASSETS................................................................... $705,801
===========================================================================================
CLASS A
Net asset value and redemption price per share ($153,510,328/12,225,683)..... $12.56
===========================================================================================
Maximum public offering price per share (NAV/(1-Maximum sales charge)
($12.56/.945).............................................................. $13.29
===========================================================================================
CLASS C
Net asset value and redemption price per share ($552,290,479/44,007,265)..... $12.55
===========================================================================================
Redemption price per share................................................... *
===========================================================================================
</TABLE>
* Varies by length of time shares are held (Note 3b).
See notes to financial statements.
35
<PAGE> 38
GOVERNMENT SECURITIES SERIES
Statement of Net Assets as of June 30, 1995
(Unaudited)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal Value
Amount (Note 2)
<S> <C>
-----------------------------------------------
UNITED STATES GOVERNMENT
& AGENCY OBLIGATIONS:
79.43%
OVER ONE YEAR: 33.93%
FEDERAL HOME LOAN MORTGAGE
CORP., MODIFIED
MTGE. PASS-THROUGH
SECURITIES: 0.70%
10.50%,
1/1/2001....... $ 51,206 $ 53,497
10.50%,
6/1/2011....... 144,804 157,475
12.00%,
4/1/2014....... 29,415 32,816
11.50%,
10/1/2015...... 93,133 103,144
12.00%,
11/1/2015...... 115,679 129,054
-----------
475,986
-----------
FEDERAL NATIONAL MORTGAGE
ASSN., MODIFIED MTGE.
PASS-THROUGH SECURITIES:
0.13%
12.50%,
10/01/2014..... 77,648 87,839
-----------
FEDERAL NATIONAL MORTGAGE
ASSN.: 6.07%
Deb., 8.25%,
12/18/2000..... 950,000 1,045,645
Notes, 6.95%,
9/10/2002...... 1,100,000 1,108,567
Notes, 6.38%,
6/25/2003...... 2,000,000 1,963,294
-----------
4,117,506
-----------
GOVERNMENT NATIONAL
MORTGAGE ASSN., MODIFIED
MTGE.
PASS-THROUGH SECURITIES: 0.35%
12.50%,
11/20/2013..... 48,578 54,938
12.00%,
9/15/2015...... 136,532 155,391
8.00%,
8/15/2022...... 27,770 28,438
-----------
238,767
-----------
PRIVATE EXPORT FUNDING
CORP.: 1.58%
7.90%,
3/31/2000...... 1,000,000 1,071,277
-----------
UNITED STATES TREASURY
BONDS: 23.31%
10.75%,
2/15/2003...... 1,000,000 1,274,686
7.25%,
5/15/2004...... 1,036,000 1,105,930
12.00%,
8/15/2013...... 1,025,000 1,517,641
7.625%,
11/15/2022..... 1,145,000 1,278,822
6.25%,
8/15/2023...... 1,478,000 1,398,093
7.50%,
11/15/2024..... 300,000 332,344
7.625%,
2/15/2025...... 7,900,000 8,914,644
-----------
15,822,160
-----------
UNITED STATES TREASURY
NOTES: 1.79%
6.375%,
8/15/2002...... $1,200,000 $ 1,213,500
-----------
17,035,660
-----------
TOTAL OVER ONE YEAR (Cost
$22,499,360) 23,027,035
-----------
LESS THAN ONE YEAR: 45.50%
FEDERAL FARM CREDIT BANK.,
DISCOUNT NOTES:
11.73%
5.88%, 7/27/95... 5,000,000 4,978,767
5.84%, 8/8/95.... 3,000,000 2,981,506
-----------
7,960,273
-----------
FEDERAL HOME LOAN
MORTGAGE CORP.,
DISCOUNT NOTES: 16.15%
5.77%, 7/7/95.... 2,000,000 1,998,077
5.91%, 7/13/95... 3,000,000 2,994,090
5.89%, 7/20/95... 4,000,000 3,987,565
5.82%, 8/18/95... 2,000,000 1,984,480
-----------
10,964,212
-----------
FEDERAL NATIONAL MORTGAGE
ASSOCIATION., DISCOUNT
NOTES: 17.62%
5.85%, 7/5/95.... 4,000,000 3,997,400
5.86%, 7/11/95... 2,000,000 1,996,745
5.86%, 7/28/95... 3,000,000 2,986,815
5.86%, 8/14/95... 3,000,000 2,978,513
-----------
11,959,473
-----------
TOTAL LESS THAN ONE YEAR (Cost
$30,883,958).................. 30,883,958
-----------
TOTAL UNITED STATES GOVERNMENT &
AGENCY OBLIGATIONS (Cost
$53,383,318).................. 53,910,993
-----------
REPURCHASE AGREEMENTS: 20.06%
With Morgan Stanley & Co., Inc.,
(dated 6/30/95), 6.05%, due
7/3/95 (Repurchase proceeds
$6,623,338); collateralized
by: $6,590,000 United States
Treasury Notes, 5.125%- 6.50%,
3/31/98- 9/30/99
(Market value
$6,765,037)..........6,620,000
6,620,000
</TABLE>
36
<PAGE> 39
GOVERNMENT SECURITIES SERIES
Statement of Net Assets as of June 30, 1995
(Unaudited) (Concluded)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal Value
Amount (Note 2)
<S> <C>
-----------------------------------------------
With Prudential Securities Inc.,
(dated 6/30/95), 6.16%, due
7/5/95 (Repurchase proceeds
$7,005,989); collateralized
by: $7,230,118 Federal
National Mortgage Assn.,
6.25%, 3/1/2018
(Market value
$7,140,000).........$7,000,000
$ 7,000,000
-----------
TOTAL REPURCHASE AGREEMENTS
(Cost $13,620,000)............ 13,620,000
-----------
TOTAL INVESTMENTS
(Cost
$67,003,318)....... 99.49% 67,530,993
Other Assets......... 0.77 527,311
------ -----------
Total Assets....... 100.26% 68,058,304
Total
Liabilities...... (0.26) (178,832)
------ -----------
NET ASSETS........... 100.00% $67,879,472
====== ===========
WEIGHTED AVERAGE DURATION....... 3.0 years
=========
CLASS A SHARES
Net asset value and
redemption per share
($45,556,881/4,537,215)....... $10.04
======
Maximum public offering price
per share NAV/(1-maximum sales
charge) ($10.04/.9525)........ $10.54
======
CLASS C SHARES
Net asset value and offering
price share
($22,322,591/2,225,220)....... $10.03
======
Redemption price per share...... *
======
</TABLE>
-------------------------------------------
* Varies by length of time shares are held. (Note 3b)
For Federal income tax purpose, the tax basis of investments owned at June 30,
1995 was $67,003,318 and unrealized appreciation on investments consisted of:
<TABLE>
<S> <C>
Gross unrealized
appreciation............... $ 690,129
Gross unrealized
depreciation............... (162,454)
---------
Net unrealized
appreciation............... $ 527,675
=========
</TABLE>
See notes to financial statements.
37
<PAGE> 40
ZWEIG CASH FUND
Statement of Net Assets as of June 30, 1995
(Unaudited)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal Value
Amount (Note 2)
<S> <C>
-----------------------------------------------
UNITED STATES GOVERNMENT
AGENCY OBLIGATIONS: 83.83%
FEDERAL FARM CREDIT
CORP., DISCOUNT
NOTE: 1.56%
5.73%, 9/5/95...... 1,000,000 $ 989,495
-----------
FEDERAL HOME LOAN
BANK: 3.11%
6.03%, 10/5/95..... 1,000,000 983,920
5.99%, 10/10/95.... 1,000,000 983,195
-----------
1,967,115
-----------
FEDERAL HOME LOAN MORTGAGE
CORP.,
DISCOUNT NOTES: 25.79%
5.93%, 7/5/95...... 1,000,000 999,341
5.77%, 7/7/95...... 2,000,000 1,998,077
5.91%, 7/13/95..... 3,000,000 2,994,090
5.86%, 7/20/95..... 5,500,000 5,482,990
5.87%, 7/24/95..... 2,000,000 1,992,499
5.80%, 8/4/95...... 2,900,000 2,884,114
-----------
16,351,111
-----------
FEDERAL NATIONAL MORTGAGE ASSN.,
DISCOUNT NOTES: 42.33%
5.88%, 7/11/95..... 7,000,000 6,988,567
6.51%, 7/11/95..... 4,000,000 3,992,766
5.89%, 7/26/95..... 2,000,000 1,991,819
5.83%, 8/3/95...... 2,000,000 1,989,312
5.90%, 8/17/95..... 5,000,000 4,961,486
5.84%, 8/25/95..... 2,000,000 1,982,156
5.97%, 9/11/95..... 2,000,000 1,976,120
5.88%, 10/10/95.... 3,000,000 2,950,510
-----------
26,832,736
-----------
FEDERAL NATIONAL MORTGAGE ASSN.,
VARIABLE RATE NOTES
(SEE (A) BELOW): 11.04%
4.795%, 8/25/95
(final maturity
2/25/98)......... 5,000,000 5,000,000
4.765%, 7/27/95
(final maturity
4/27/98)......... 2,000,000 2,000,000
-----------
7,000,000
-----------
TOTAL UNITED STATES GOVERNMENT
AGENCY OBLIGATIONS (Cost
$53,140,457).................. 53,140,457
-----------
REPURCHASE AGREEMENTS: 16.60%
With Morgan Stanley & Co., Inc.
(dated 6/30/95), 6.05%, due
7/3/95 (Repurchase proceeds
$4,527,281); collateralized
by: $3,054,000 United States
Treasury Bonds and Notes,
5.125%-12.0%,
3/31/98-8/15/2013
(Market value
$4,625,662).........$4,525,000
$4,525,000
With Prudential Securities, Inc.
(dated 6/30/95), 6.16%, due
7/5/95 (Repurchase proceeds
$6,005,133); collateralized
by: $5,997,551 Federal
National Mtge. Assn., 7.50%,
6/1/2002
(Market value
$6,120,001)..........6,000,000
6,000,000
-----------
TOTAL REPURCHASE AGREEMENTS
(Cost $10,525,000)............ 10,525,000
-----------
TOTAL INVESTMENTS
(Cost
$63,665,457)....... 100.43% 63,665,457
Other Assets......... 0.07 43,955
------ -----------
Total Assets....... 100.50% 63,709,412
Total
Liabilities...... (0.50) (315,452)
------ -----------
NET ASSETS........... 100.00% $63,393,960
====== ===========
Net Asset Value, offering and
redemption price per share
(4,020,234 Class A, 5,139,611
Class C and 54,234,115 Class M
shares)....................... $1.00
=====
Weighted average days to
maturity...................... 31
=====
</TABLE>
------------
(a) The interest rates shown are the rates last set according to the formula for
these variable rate notes, and are determined quarterly by taking one-half
of the rate for the 10 year U.S. Treasury Note, as calculated by the Federal
Reserve, and adding 1 1/2% for the $5 million issue and 1 1/4% for the $2
million issue. The maturity date shown is the next date upon which the
interest rate is reset. The Manager has arranged, at no cost to the Fund,
for an irrevocable Letter of Credit in the amount of $1 million that the
Fund could draw on if for any reason the variable rate notes had to be sold
and the proceeds were less than the Fund's cost.
See notes to financial statements.
38
<PAGE> 41
ZWEIG SERIES TRUST
Statement of Operations for the Six Months Ended
June 30, 1995 (Unaudited) (In thousands)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Zweig Zweig Zweig Government Zweig
Strategy Appreciation Managed Securities Cash
Fund Fund Assets Series Fund
-------- ------------ ------- ---------- -----
<S> <C> <C> <C> <C> <C>
INVESTMENT INCOME:
Income:
Dividends*............................... $ 4,393 $ 2,807 $ 2,346 $ -- $ --
Interest................................. 10,164 2,936 17,693** 2,209 2,347
---------------------------------------------------------------------------------------------------
Total income........................... 14,557 5,743 20,039 2,209 2,347
---------------------------------------------------------------------------------------------------
Expenses: (Note 2)
Advisory fees (Note 3)................... 2,893 1,872 3,551 200 198
Distribution fees, Class A (Note 3)...... 659 341 231 69 6
Distribution fees, Class C (Note 3)...... 1,661 734 2,782 78 8
Distribution fees, Class M (Note 3)...... -- -- -- -- 29
Transfer agent fees...................... 508 346 406 50 19
Amortization of organization expenses.... -- 74 77 -- --
Custodian fees........................... 54 48 239 11 12
Insurance................................ 48 25 49 5 7
Portfolio accounting fees................ 97 86 102 24 5
Professional fees........................ 51 31 55 6 8
Registration fees........................ 25 23 40 16 18
Reports to shareholders.................. 167 88 167 14 14
Trustees' fees........................... 11 6 11 1 1
Miscellaneous............................ 9 5 10 1 1
---------------------------------------------------------------------------------------------------
Total expenses......................... 6,183 3,679 7,720 475 326
Less: Expenses reimbursed by
investment adviser (Note 3).......... -- -- -- -- (45)
---------------------------------------------------------------------------------------------------
Net expenses........................... 6,183 3,679 7,720 475 281
---------------------------------------------------------------------------------------------------
Net investment income.................. 8,374 2,064 12,319 1,734 2,066
---------------------------------------------------------------------------------------------------
NET REALIZED AND UNREALIZED GAINS (LOSSES)
ON INVESTMENTS AND FOREIGN CURRENCY:
Net realized gains (losses):
Security transactions.................... 10,593 6,038 30,419 1,172 --
Option transactions...................... (848) (418) (705) -- --
Futures transactions..................... (7,930) (14,733) 2,064 -- --
Currency transactions.................... -- -- (477) -- --
---------------------------------------------------------------------------------------------------
Net realized gains (losses)............ 1,815 (9,113) 31,301 1,172 --
---------------------------------------------------------------------------------------------------
Increase in unrealized appreciation of
investments and foreign currency......... 109,795 48,382*** 15,851 1,573 --
---------------------------------------------------------------------------------------------------
Net realized and unrealized gains on
investments and foreign currency......... 111,610 39,269 47,152 2,745 --
---------------------------------------------------------------------------------------------------
Net increase in net assets
resulting from operations................ $119,984 $ 41,333 $59,471 $4,479 $2,066
===================================================================================================
* Net of taxes withheld on foreign
dividends. $ 56 $ 31 $ 183 -- --
=======================================================
</TABLE>
** Net of taxes withheld on foreign interest of $127.
*** Excludes net unrealized appreciation on investments of $1,746 acquired in
the merger with Priority Selection List Series. (Note 5)
See notes to financial statements.
39
<PAGE> 42
ZWEIG SERIES TRUST
Statement of Changes in Net Assets for the Six Months
Ended
June 30, 1995 and for the Year Ended December 31, 1994
(Unaudited) (In thousands)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Zweig Appreciation
Zweig Strategy Fund Fund
--------------------- ---------------------
1995 1994 1995 1994
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
Operations:
Net investment income...................... $ 8,374 $ 11,482 $ 2,064 $ 3,048
Net realized gains (losses) on
investments.............................. 1,815 (8,953) (9,113) 10,311
Unrealized appreciation (depreciation) of
investments and foreign currency......... 109,795 1,536 48,382 (21,532)
----------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
resulting from operations................ 119,984 4,065 41,333 (8,173)
----------------------------------------------------------------------------------------------
Additions to capital paid-in (Notes 3D and
9)......................................... -- 67 -- 11
----------------------------------------------------------------------------------------------
Dividends to shareholders from net investment
income:
Class A................................ (5,967) (6,766) (2,459) (962)
Class C................................ (2,856) (2,373) (563) --
Class M................................ -- -- -- --
Distributions to shareholders from net
realized gains on investments:
Class A................................ -- (3,243) -- (7,097)
Class C................................ -- (1,505) -- (4,677)
----------------------------------------------------------------------------------------------
Total dividends and distributions to
shareholders............................. (8,823) (13,887) (3,022) (12,736)
----------------------------------------------------------------------------------------------
Capital share transactions:
Net proceeds from sale of shares........... 100,419 313,689 21,280 161,190
Net proceeds from reorganization and merger
(Notes 4 and 5).......................... -- -- 57,544 --
Net asset value of shares issued to
shareholders in reinvestment of dividends
and distributions........................ 6,887 10,855 2,566 10,678
----------------------------------------------------------------------------------------------
107,306 324,544 81,390 171,868
Cost of shares redeemed...................... (77,265) (177,488) (53,823) (134,360)
----------------------------------------------------------------------------------------------
Increase (decrease) in net assets derived
from capital share transactions........ 30,041 147,056 27,567 37,508
----------------------------------------------------------------------------------------------
Net increase (decrease) in net assets.... 141,202 137,301 65,878 16,610
NET ASSETS:
Beginning of period...................... 731,816 594,515 352,797 336,187
----------------------------------------------------------------------------------------------
End of period............................ $873,018 $ 731,816 $418,675 $ 352,797
==============================================================================================
Undistributed net investment income.......... $ 4,769 $ 5,218 $ 2,083 $ 3,041
==============================================================================================
</TABLE>
See notes to financial statements.
40
<PAGE> 43
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Government Securities
Zweig Managed Assets Series Zweig Cash Fund
---------------------------- -------------------------- ---------------------------
1995 1994 1995 1994 1995 1994
<S> <C> <C> <C> <C> <C>
$ 12,319 $ 15,293 $ 1,734 $ 3,793 $ 2,066 $ 3,495
31,301 (15,872) 1,172 (3,559) -- (415)
15,851 (25,567) 1,573 (2,764) -- --
-------------------------------------------------------------------------------------------
59,471 (26,146) 4,479 (2,530) 2,066 3,080
-------------------------------------------------------------------------------------------
-- -- -- 11 -- 415
-------------------------------------------------------------------------------------------
(3,094) (3,209) (1,208) (2,742) (104) (245)
(8,272) (8,472) (488) (1,055) (137) (96)
-- -- -- -- (1,825) (3,154)
-- -- -- -- -- --
-- -- -- -- -- --
-------------------------------------------------------------------------------------------
(11,366) (11,681) (1,696) (3,797) (2,066) (3,495)
-------------------------------------------------------------------------------------------
45,167 339,737 5,338 17,854 152,491 595,278
-- -- -- -- -- 13,504
8,241 8,390 958 2,196 996 1,421
-------------------------------------------------------------------------------------------
53,408 348,127 6,296 20,050 153,487 610,203
(120,864) (135,856) (11,422) (25,020) (177,585) (615,182)
-------------------------------------------------------------------------------------------
(67,456) 212,271 (5,126) (4,970) (24,098) (4,979)
-------------------------------------------------------------------------------------------
(19,351) 174,444 (2,343) (11,286) (24,098) (4,979)
725,152 550,708 70,222 81,508 87,492 92,471
-------------------------------------------------------------------------------------------
$ 705,801 $ 725,152 $ 67,879 $ 70,222 $ 63,394 $ 87,492
===========================================================================================
$ 5,417 $ 4,465 $ (33) $ (70) $ -- $ --
===========================================================================================
</TABLE>
See notes to financial statements.
41
<PAGE> 44
NOTES TO FINANCIAL STATEMENTS
June 30, 1995 (Unaudited)
--------------------------------------------------------------------------------
NOTE 1--ORGANIZATION
Zweig Series Trust (the "Trust"), a Massachusetts business trust, is
registered under the Investment Company Act of 1940 as a diversified, open-end
management investment company. The Trust presently consists of five separate
investment portfolios ("Series"): Zweig Strategy Fund; Zweig Appreciation Fund;
Zweig Managed Assets; Government Securities Series and Zweig Cash Fund. Each
Series has distinct investment objectives and policies. A shareholder's interest
is limited to the Series in which she or he owns shares. Each Series offers both
Class A and Class C shares and Zweig Cash Fund also offers Class M shares. All
classes of shares have identical rights to earnings, assets and voting
privileges, except that each class has its own distribution and/or service plan,
bears expenses directly attributable to that class, and has exclusive voting
rights with respect to matters affecting only that class. On May 1, 1994, shares
formerly designated Class B shares were redesignated Class C Shares to conform
with standards generally adopted in the mutual fund industry.
NOTE 2--SIGNIFICANT ACCOUNTING POLICIES
A. GENERAL
Securities transactions are recorded on trade date. Realized gains and losses on
sales of investments are determined on the identified cost basis. Distributions
to shareholders and dividend income are recorded on the ex-dividend date, except
that certain dividends from foreign securities are recorded as soon as the
Series is informed of the ex-dividend date. Interest income is recorded on the
accrual basis and includes amortization of premiums and discounts. Direct
expenses are charged to each class or Series and general expenses are allocated
in proportion to net assets. Organization expenses are amortized on a
straight-line basis over the first 60 months of operations of a Series.
B. PORTFOLIO VALUATION
Stocks, futures and options are valued at the closing prices reported on
recognized securities exchanges or if no sale was reported, and for unlisted
securities, at the mean between the last-reported bid and asked prices. Bonds
and other fixed-income securities are valued at prices obtained from an
established bond-pricing service when such prices are available. Forward foreign
currency contracts are valued using forward currency exchange rates supplied by
a quotation service. Securities for which market quotations are not readily
available are valued at fair value as determined by the Board of Trustees.
Short-term obligations having a remaining maturity of 60 days or less are valued
at amortized cost (which approximates market value). Zweig Cash Fund values all
short-term investments using the amortized cost method pursuant to Rule 2a-7
under the Investment Company Act of 1940.
C. FUTURES CONTRACTS AND OPTION ACCOUNTING PRINCIPLES
Initial margin deposits on futures contracts are recorded as assets. Changes in
the value of such contracts are recognized and "marked to market" daily as
unrealized gains or losses. Variation margin payments are recognized as assets
or liabilities, depending upon whether unrealized gains or losses are incurred.
When a futures contract is closed, the Series realizes a gain or loss equal to
the difference between the proceeds from (or cost of) the closing transaction
and its basis in the contract. When a Series writes an option, an amount equal
to the premium received is recorded as an asset and a corresponding liability.
The liability is subsequently "marked to market" daily. When an option written
is exercised, the proceeds of sale of the underlying security are increased by
the premium originally received and the Series realizes a gain or loss. When an
option written expires or the Series enters into a closing purchase transaction,
the liability is extinguished and the Series realizes a gain or loss.
D. FOREIGN CURRENCY TRANSLATION
Assets and liabilities denominated in a foreign currency are translated into
U.S. dollars using exchange rates on the valuation date. Purchases and sales of
securities, expense payments and income receipts are translated into U.S.
dollars using the exchange rate on the transaction date. The Trust does not
segregate that portion of the results of operations resulting from changes in
foreign exchange rates from the portion resulting from changes in market prices
of securities held; both are included in net realized and unrealized gains or
losses.
E. OFF-BALANCE-SHEET RISK, REPURCHASE AGREEMENTS AND DERIVATIVES
Foreign securities and forward foreign currency contracts may involve risks
relating to the level of governmental supervision and regulation of foreign
markets, and the possibility of political or economic instability. With respect
to forward foreign currency contracts and repurchase agreements, losses may
arise if the counterparty does not perform under the contract or agreement. The
Trust's investment manager monitors the requirement that the market value of the
securities used to collateralize a repurchase agreement exceed the dollar amount
of the counterparty's obligation to repurchase. A Series' use of futures
contracts, forward foreign currency contracts and options involves, to varying
degrees, elements of market risk in excess of the amount recognized in the
statement of net assets. These derivative financial instruments ("derivatives")
are used to adjust the risk and
42
<PAGE> 45
--------------------------------------------------------------------------------
return characteristics of a Series' portfolio. Derivatives are not used for the
purpose of leverage. The objective in buying or selling a derivative instrument
is to increase or decrease a Series' exposure to changing security prices,
interest rates or currency exchange rates. If the Manager misjudges market
conditions or employs a strategy that does not correlate well with the Series'
other investments, use of these derivatives could result in a loss, regardless
of the Manager's original intent to reduce risk.
F. FEDERAL INCOME TAXES
It is the policy of each Series to continue to comply with the requirements of
the Internal Revenue Code applicable to regulated investment companies and to
distribute all of its net taxable income, including any net realized gain on
investments, to its shareholders; therefore, no provision for federal income tax
is required.
G. DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS
Dividends and distributions are declared separately for each class of shares of
a Series. Dividends from net investment income are declared and paid monthly by
Government Securities Series, quarterly by Zweig Strategy Fund and Zweig Managed
Assets and at least annually by Zweig Appreciation Fund. Any net realized
capital gain distributions are declared and paid annually, except that amounts
attributable to net short-term capital gains may be included with dividends from
net investment income. Zweig Cash Fund declares daily dividends of all net
investment income, plus or minus realized gains or losses, and pays dividends
monthly. The character of distributions made during the year from net investment
income or net realized gains may differ from their ultimate characterization for
federal income tax purposes due to differences in the recognition of income and
expense items for financial statement and federal income tax purposes.
At October 31, 1994 (each Series' tax fiscal year-end): Zweig Strategy Fund
had loss carryforwards of $2,576,207 expiring October 31, 2002, Zweig Managed
Assets had capital loss carryforwards of $13,285,612 expiring October 31, 2002,
Zweig Appreciation Fund had acquired capital loss carryforwards of $1,565,880,
and $863,405 expiring October 31, 1997 and 1998, respectively, and Government
Securities Series had capital loss carryforwards, including acquired loss
carryforwards, of $3,218,398, $28,444,648, $13,506,401, $2,631,923, $249,274 and
$7,227,155 expiring October 31, 1995, 1996, 1997, 1998, 1999 and 2002,
respectively; available, subject to certain limitations, to offset any net
capital gains subsequently realized.
NOTE 3 -- INVESTMENT ADVISORY FEES AND OTHER TRANSACTIONS WITH AFFILIATES
A. INVESTMENT MANAGER
The Trust's investments are managed by Zweig/Glaser Advisers (the "Manager").
The Manager's investment advisory fee is based on the average daily net assets
of each Series at the following annual rates: Zweig Strategy Fund--.75%; Zweig
Appreciation Fund--1.00%; Zweig Managed Assets--1.00%; Government Securities
Series--.60%; and Zweig Cash Fund--.50%. The fee is accrued daily and paid
monthly. Investment advisory fees for the six-months ended June 30, 1995
aggregated $8,713,661.
The Manager has undertaken voluntarily to limit expenses of Zweig Cash Fund
(exclusive of taxes, interest, brokerage commissions or transaction costs, the
distribution fees described below and extraordinary expenses) to .60% of its
average daily net assets. During the six-months ended June 30, 1995, the
Manager's reimbursements to Zweig Cash Fund aggregated $45,492 under this
voluntary expense limitation. The Manager reserves the right to discontinue the
expense limitation at any time after November 1, 1995.
B. PRINCIPAL DISTRIBUTOR
Zweig Securities Corp. (the "Distributor") serves as principal distributor of
shares of the Trust. The Trust's Class A Shares (excluding Zweig Cash Fund
shares) are sold with an initial sales charge. Class C Shares are sold subject
to a contingent deferred sales charge of 1.25% (which may be imposed on shares
redeemed within one year of purchase date), and Class M shares of Zweig Cash
Fund are sold without a sales charge. The Distributor's share of sales charges
paid by the purchasers of Class A shares was $279,546 and contingent deferred
sales charges paid by the redeemers of Class C shares aggregated $3,944 during
the six-months ended June 30, 1995.
Pursuant to a Rule 12b-1 plan of distribution, the Trust pays the Distributor
a combined service and distribution fee equal to an annual rate of .30% of
average daily net assets for each Series of Class A shares and 1.00% for Class C
shares of Zweig Strategy Fund, Zweig Appreciation Fund and Zweig Managed Assets,
.75% for Class C shares of Government Securities Series and .30% for Class C
shares of Zweig Cash Fund, respectively. The Distributor's aggregate fees under
this plan for the six-months ended June 30, 1995, amounted to $1,306,321 for
Class A shares and $5,262,099 for Class C shares. A separate Rule 12b-1
distribution sharing plan for Class M shares of Zweig Cash Fund provides that
the Manager may enter into service agreements with various service organizations
for distribution, promotion, administration
43
<PAGE> 46
NOTES TO FINANCIAL STATEMENTS
June 30, 1995 (Unaudited) (Continued)
--------------------------------------------------------------------------------
and/or servicing investors in Class M shares. The service organizations are paid
by the Class M shares and by the Manager. During the six-months ended June 30,
1995, the Class M shares paid $29,223 under this plan.
C. During the six-months ended June 30, 1995, the Trust paid Zweig Securities
Corp. brokerage commissions of $249,761 in connection with portfolio
transactions effected by it.
D. In March, 1994, the Manager contributed $416,250 to the Zweig Cash Fund to
offset losses incurred by it on the sale of certain variable rate reset notes.
E. One Trustee and all of the officers of the Trust are also officers of the
Manager and/or the Distributor. The Trustee and officers so affiliated receive
compensation from the Manager or its affiliates, and not from the Trust, for
services as a Trustee or officer of the Trust.
NOTE 4 -- REORGANIZATION
On May 1, 1994, Zweig Cash Fund, a newly formed Series of Zweig Series Trust,
exchanged its Class A and Class C Shares for the net assets of the Money Market
Series of the Trust and exchanged its Class M Shares for the net assets of Zweig
Cash Fund Inc. The Class A and Class C shares of the newly formed Series were
distributed to shareholders of the Money Market Series and the Class M shares
were distributed to the shareholders of Zweig Cash Fund Inc. in liquidation of
those entities.
================================================================================
NOTE 5 -- MERGER
On April 4, 1995, Zweig Appreciation Fund ("Appreciation") acquired all of the
net assets of Zweig Series Trust Priority Selection List Series ("Priority")
pursuant to a plan of reorganization approved by the shareholders of Priority on
March 28, 1995. The acquisition was accomplished by a tax-free exchange of
Appreciation shares for all the net assets of Priority and has been accounted
for as a pooling of interest without restatement for financial reporting
purposes. The selected financial information and shares outstanding for the
funds immediately before and after the acquisition were as follows:
<TABLE>
<CAPTION>
Net Asset
Value Shares Exchange
Net Assets Per Share Outstanding Ratio
------------ --------- ----------- ---------
<S> <C> <C> <C> <C>
Priority Class A......................... $ 41,711,769 $ 12.47 3,344,959 .90442368
Appreciation Class A..................... 207,349,503 13.79 15,038,440
------------ --------- -----------
Combined................................. $249,061,272 13.79 18,063,200
------------ --------- -----------
Priority Class C......................... $ 15,831,830 $ 12.44 1,272,171 .90935221
Appreciation Class C..................... 139,760,128 13.69 10,212,445
------------ --------- -----------
Combined................................. $155,591,958 $ 13.69 11,369,297
------------ --------- -----------
</TABLE>
The net assets of Priority included unrealized appreciation on investments of
$1,745,945 and accumulated net realized losses of $1,314,728.
================================================================================
<TABLE>
<CAPTION>
Zweig Zweig Zweig Government Zweig
NOTE 6 -- NET ASSETS--JUNE 30, 1995 Strategy Appreciation Managed Securities Cash
(IN THOUSANDS) Fund Fund Assets Series Fund
-------- -------- -------- -------- -------
<S> <C> <C> <C> <C> <C>
Net Assets consist of:
Capital paid-in..................... $753,230 $350,412 $675,499 $118,436 $63,394
Undistributed net investment income
(loss)............................ 4,769 2,083 5,417 (33) --
Accumulated net realized gain
(loss)............................ (7,516) (3,312) 13,289 (51,052) --
Net unrealized appreciation of
investments....................... 122,535 69,492 11,596 528 --
-------- -------- -------- -------- -------
$873,018 $418,675 $705,801 $ 67,879 $63,394
================================================================================================
</TABLE>
44
<PAGE> 47
--------------------------------------------------------------------------------
NOTE 7 -- PURCHASES AND SALES OF SECURITIES AND FORWARD CURRENCY CONTRACTS
During the six months ended June 30, 1995, purchase and sale transactions of the
Trust, excluding repurchase transactions, short-term instruments held to
maturity, options written and futures contracts, were:
<TABLE>
<CAPTION>
Zweig Zweig Zweig Government
Strategy Appreciation Managed Securities
Fund Fund Assets Series
------------ ------------ ------------ -----------
<S> <C> <C> <C> <C>
Securities purchases............... $416,780,102 $173,863,049 $624,360,115 $28,687,043
Securities sales................... 132,637,700 95,871,114 575,081,864 36,113,435
</TABLE>
Transactions in options written during the six months ended June 30, 1995, were:
<TABLE>
<CAPTION>
Zweig Appreciation
Zweig Strategy Fund Fund
--------------------- ----------------------
Number of Number of
Contracts Premiums Contracts Premiums
--------- -------- --------- ---------
<S> <C> <C> <C> <C>
Options outstanding at December 31, 1994........ 333 $613,526 164 $ 302,157
Options written................................. -- -- -- --
Closing purchase transactions................... (333) (613,526) (164) (302,157)
Options expired................................. -- -- -- --
--- -------- --- ---------
Options outstanding at June 30, 1995............ -- $ -- -- $ --
======== ======== ======== =========
</TABLE>
Forward currency contracts outstanding at June 30, 1995, for Zweig Managed
Assets were:
<TABLE>
<CAPTION>
Net Unrealized
Contracts to Settlement Appreciation
Deliver In Exchange For Date Value (Depreciation)
------------------ ----------------- ------- ------------- --------------
<S> <C> <C> <C> <C> <C>
Sales......... aus$ 63,100,000 $ 45,744,097 07/31/95 $ (44,662,432) $ 1,081,665
can$ 42,000,000 30,137,850 07/31/95 (30,545,340) (407,490)
ff 294,000,000 60,488,889 07/31/95 (60,595,752) (106,863)
DM 129,000,000 92,193,777 07/31/95 (93,331,887) (1,138,110)
Y 10,200,000,000 121,415,385 07/31/95 (120,747,600) 667,785
Ep 2,800,000,000 21,967,867 07/31/95 (23,049,600) (1,081,733)
L 63,000,000 99,755,700 07/31/95 (100,161,369) (405,669)
----------------- ------------- --------------
$ 471,703,565 $(473,093,980) $ (1,390,415)
================ ============ ===========
Purchases..... $15,174,507 can $21,000,000 07/31/95 $ 15,272,670 $ 98,163
49,581,225 DM 68,000,000 07/31/95 49,198,204 (383,021)
62,086,849 Y 5,100,000,000 07/31/95 60,373,800 (1,713,049)
22,528,716 Ep 2,800,000,000 07/31/95 23,049,600 520,884
62,454,085 L 38,700,000 07/31/95 61,527,698 (926,387)
------------------ ------------- --------------
$211,825,382 $ 209,421,972 $ (2,403,410)
================= ============ ===========
====================================================================================================
<CAPTION>
NOTE 8--LIABILITIES--JUNE 30, 1995 Zweig Zweig Government Zweig
(IN THOUSANDS) Strategy Appreciation Securities Cash
Fund Fund Series Fund
-------- ------------ ---------- -----
<S> <C> <C> <C> <C>
Advisory Fee.................... $ 36 $ 23 $ 2 $ 2
Distribution and Service Fees... 425 194 24 5
Capital Shares Redeemed......... 821 915 88 --
Dividends....................... -- -- -- 283
Securities Purchased............ 8 138 -- --
Accrued Expenses................ 575 476 65 25
------ ------ ---- ----
Total Liabilities........... $1,865 $1,746 $179 $315
====== ====== ==== ====
</TABLE>
Liabilities for Zweig Managed Assets are presented on page 35.
45
<PAGE> 48
NOTES TO FINANCIAL STATEMENTS
June 30, 1995 (Unaudited) (Concluded)
--------------------------------------------------------------------------------
NOTE 9--SHARE CAPITAL
The Trust has unlimited authorized shares of beneficial interest ($0.10 par
value), divided into series and issued in classes (see note 1). Share capital
transactions for the six months ended June 30, 1995 and for the year ended
December 31, 1994 are set forth below.
On June 8, 1993, Zweig Strategy Fund, Zweig Appreciation Fund, Government
Securities Series and Zweig Cash Fund's predecessor were all beneficiaries of a
settlement with the Trust's former distributor. The proceeds from the settlement
were treated as additions to capital paid-in.
<TABLE>
<CAPTION>
Class A Class C
--------------------------- --------------------------
<S> <C> <C> <C> <C>
1995 1994 1995 1994
---------- ------------ ----------- ----------
ZWEIG STRATEGY FUND
Sold.................................. 2,642,977 12,364,078 5,018,961 12,642,547
Issued in reinvestment of dividends
and distributions................... 373,424 628,409 174,064 250,204
Redeemed.............................. (3,289,848) (11,060,548) (2,677,039) (3,119,586)
-------------------------------------------------------------------------------------------------
Net increase (decrease)........... (273,447) 1,931,939 2,515,986 9,773,165
=================================================================================================
ZWEIG APPRECIATION FUND
Sold.................................. 517,833 7,174,228 1,013,270 4,144,686
Issued in reinvestment of dividends
and distributions................... 160,055 524,760 32,467 277,178
Issued in merger of Priority Selection
List Series (Note 5)................ 3,025,260 -- 1,156,851 --
Redeemed.............................. (2,359,322) (7,997,504) (1,523,049) (1,454,951)
-------------------------------------------------------------------------------------------------
Net increase (decrease)........... 1,343,826 (298,516) 679,539 2,966,913
=================================================================================================
ZWEIG MANAGED ASSETS
Sold.................................. 1,024,685 5,744,271 2,694,673 22,216,871
Issued in reinvestment of dividends
and distributions................... 213,451 219,494 480,788 484,734
Redeemed.............................. (2,148,318) (2,648,985) (7,830,165) (8,761,943)
-------------------------------------------------------------------------------------------------
Net increase (decrease)........... (910,182) 3,314,780 (4,654,704) 13,939,662
=================================================================================================
GOVERNMENT SECURITIES SERIES
Sold.................................. 91,648 642,988 447,711 1,129,396
Issued in reinvestment of dividends... 70,078 159,828 28,415 61,844
Redeemed.............................. (570,104) (1,628,976) (600,620) (890,029)
-------------------------------------------------------------------------------------------------
Net increase (decrease)........... (408,378) (826,160) (124,494) 301,211
=================================================================================================
ZWEIG CASH FUND(1)(2)
Sold.................................. 4,696,895 192,766,579 3,805,430 5,977,650
Issued in reinvestment of dividends... 83,105 197,578 114,769 67,653
Issued in merger of Money Market
Series (Note 4)..................... -- 10,892,661 -- 2,611,345
Redeemed.............................. (5,062,591) (199,553,993) (3,820,256) (3,616,980)
-------------------------------------------------------------------------------------------------
Net increase (decrease)........... (282,591) 4,302,825 99,943 5,039,668
=================================================================================================
</TABLE>
(1) For the six months ended June 30, 1995 and for the year ended December 31,
1994, respectively, shares of Zweig Cash Fund Class M sold were 143,988,177
and 396,533,855; shares issued in reinvestment of dividends were 798,456 and
1,155,299 and shares redeemed were 168,701,873 and 412,010,758 for net
decreases of 23,915,240 and 14,231,600 shares.
(2) Class A and Class C shares commenced operations on May 1, 1994.
================================================================================
NOTE 10--DIVIDENDS SUBSEQUENT TO JUNE 30, 1995
On June 30, 1995, the Board of Trustees declared the following dividends to
shareholders of record June 30, 1995, payable July 7, 1995. Shares traded
ex-dividend on July 3, 1995.
<TABLE>
<CAPTION>
Government
Zweig Strategy Zweig Managed Securities
Fund Assets Series
---------------- ---------------- ----------------
Class Class Class Class Class Class
A C A C A C
------ ------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C> <C>
From Net Investment Income.......... $0.060 $0.040 $0.080 $0.070 $0.041 $0.037
</TABLE>
46
<PAGE> 49
FINANCIAL HIGHLIGHTS
(Unaudited)
--------------------------------------------------------------------------------
Selected Data for each share of capital stock outstanding throughout the six
months ended June 30, 1995 and the years ended December 31, 1994, 1993, 1992,
1991 and 1990.
<TABLE>
<CAPTION>
Net Net
Asset Realized Dividends Distributions
Value and Total from from
Beginning Net Unrealized from Net Realized
Period of Investment Gains Investment Investment Capital Total
Ended Period Income (Losses) Operations Income Gains Distributions
------ --------- ---------- ---------- ----------- ----------- ------------- -------------
<S> <C> <C> <C> <C> <C> <C> <C>
ZWEIG STRATEGY
FUND CLASS A
1995 $12.36 $ 0.18 $ 1.92 $ 2.08 $(0.24) $ -- $(0.24)
1994 12.52 0.24 (0.10) 0.14 (0.20) (0.10) (0.30)
1993 13.60 0.13 1.72 1.85 (0.12) (2.81) (2.93)
1992 13.03 0.17 0.80 0.97 (0.21) (0.19) (0.40)
1991 10.81 0.21 2.27 2.48 (0.26) -- (0.26)
1990 11.36 0.42 (0.67) (0.25) (0.30) -- (0.30)
ZWEIG STRATEGY
FUND CLASS C
1995 12.35 0.16 1.86 2.02 (0.16) -- (0.16)
1994 12.51 0.15 (0.10) 0.05 (0.11) (0.10) (0.21)
1993 13.61 0.05 1.71 1.76 (0.05) (2.81) (2.86)
1992(1) 12.89 0.08 0.69 0.77 (0.05) -- (0.05)
ZWEIG
APPRECIATION
FUND CLASS A
1995 13.54 0.09 1.42 1.51 (0.16) -- (0.16)
1994 14.33 0.16 (0.43) (0.27) (0.06) (0.46) (0.52)
1993 13.10 0.07 1.83 1.90 (0.06) (0.61) (0.67)
1992 12.03 0.06 1.07 1.13 (0.03) (0.03) (0.06)
1991(2) 11.34 0.03 0.66 0.69 -- -- --
ZWEIG
APPRECIATION
FUND CLASS C
1995 13.36 0.05 1.40 1.45 (0.05) -- (0.05)
1994 14.19 0.06 (0.43) (0.37) -- (0.46) (0.46)
1993 13.01 (0.01) 1.80 1.79 -- (0.61) (0.61)
1992(1) 12.33 (0.02) 0.70 0.68 -- -- --
ZWEIG MANAGED
ASSETS CLASS A
1995 11.76 0.32 0.80 1.12 (0.32) -- (0.32)
1994 12.38 0.33 (0.69) (0.36) (0.26) -- (0.26)
1993(3) 11.34 0.22 1.13 1.35 (0.14) (0.17) (0.31)
ZWEIG MANAGED
ASSETS CLASS C
1995 11.73 0.28 0.79 1.07 (0.25) -- (0.25)
1994 12.36 0.23 (0.68) (0.45) (0.18) -- (0.18)
1993(3) 11.34 0.15 1.13 1.28 (0.09) (0.17) (0.26)
</TABLE>
<TABLE>
<CAPTION>
Net Ratios to
Assets Average End of
Value Net Assets Period
End Total ------------------------------ Portfolio Net
Period of Return Investment Turnover Assets
Ended Period *** Expenses Income Rate (in thousands)
------ ------- ------ --------- ------------ --------- ---------------
<S> <C> <C> <C> <C> <C> <C>
ZWEIG STRATEGY
FUND CLASS A
1995 $14.20 16.49% 1.30%* 3.78%* 60%* $484,111
1994 12.36 1.14 1.40 1.90 70 424,805
1993 12.52 14.97 1.43 1.00 359 405,884
1992 13.60 7.61 1.63 1.32 249 358,318
1991 13.03 23.34 1.58 1.79 179 367,343
1990 10.81 (2.16) 1.67 3.89 105 298,734
ZWEIG STRATEGY
FUND CLASS C
1995 14.21 16.10 2.00* 3.76* 60* 388,906
1994 12.35 0.41 2.10 1.20 70 307,011
1993 12.51 14.18 2.13 0.30 359 188,631
1992(1) 13.61 6.00 2.43* 0.40* 249 64,697
ZWEIG APPRECIATION
FUND CLASS A
1995 14.89 11.26 1.69* 3.07* 69* 254,674
1994 13.54 (1.83) 1.70 1.09 97 213,400
1993 14.33 14.65 1.73 0.52 69 230,230
1992 13.10 9.52 1.96 0.49 61 200,656
1991(2) 12.03 6.08 2.19* 1.27* 8 157,948
ZWEIG APPRECIATION
FUND CLASS C
1995 14.76 10.93 2.39* 3.07* 69* 164,001
1994 13.36 (2.55) 2.40 0.39 97 139,397
1993 14.19 13.84 2.43 (0.18) 69 105,957
1992(1) 13.01 5.52 2.80* (0.32)* 61 42,089
ZWEIG MANAGED
ASSETS CLASS A
1995 12.56 8.97 1.63* 5.65* 308* 153,510
1994 11.76 (2.93) 1.68 2.70 299 154,441
1993(3) 12.38 11.98 1.67* 1.93* 196 121,620
ZWEIG MANAGED
ASSETS CLASS C
1995 12.55 8.57 2.33* 5.65* 308* 552,290
1994 11.73 (3.66) 2.38 2.00 299 570,710
1993(3) 12.36 11.34 2.37* 1.23* 196 429,088
</TABLE>
47
<PAGE> 50
FINANCIAL HIGHLIGHTS
(Unaudited) (Concluded)
-------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Net Net
Asset Realized Dividends Distributions
Value and Total from from
Beginning Net Unrealized from Net Realized
Period of Investment Gains Investment Investment Capital
Ended Period Income (Losses) Operations Income Gains
------ --------- ---------- ---------- ----------- ----------- -------------
<S> <C> <C> <C> <C> <C> <C>
GOVERNMENT SECURITIES
SERIES CLASS A
1995 $ 9.63 $ 0.30 $ 0.40 $ 0.70 $(0.29) --
1994 10.43 0.50 (0.79) (0.29) (0.51) --
1993 10.01 0.55 0.46 1.01 (0.59) --
1992 10.21 0.65 (0.22) 0.43 (0.63) --
1991 9.60 0.68 0.62 1.30 (0.69) --
1990 9.75 0.70 (0.15) 0.55 (0.70) --
GOVERNMENT SECURITIES
SERIES CLASS C
1995 9.62 0.27 0.41 0.68 (0.27) --
1994 10.40 0.46 (0.79) (0.33) (0.45) --
1993 10.02 0.52 0.41 0.93 (0.55) --
1992(1) 9.86 0.52 0.09 0.61 (0.45) --
ZWEIG CASH FUND CLASS A
1995 1.00 0.03 -- 0.03 (0.03) --
1994(4) 1.00 0.03 -- 0.03 (0.03) --
ZWEIG CASH FUND CLASS C
1995 1.00 0.03 -- 0.03 (0.03) --
1994(4) 1.00 0.03 -- 0.03 (0.03) --
ZWEIG CASH FUND CLASS M(5)
1995 1.00 0.03 -- 0.03 (0.03) --
1994 1.00 0.04 -- 0.04 (0.04) --
1993 1.00 0.03 -- 0.03 (0.03) --
1992 1.00 0.03 -- 0.03 (0.03) --
1991 1.00 0.06 -- 0.06 (0.06) --
1990 1.00 0.07 -- 0.07 (0.07) --
</TABLE>
<TABLE>
<CAPTION>
Net Ratios to
Assets Average End of
Value Net Assets Period
End Total ------------------------------ Portfolio Net
Period Total of Return Investment Turnover Assets
Ended Distributions Period *** Expenses Income Rate (in thousands)
------ --------- ------- ------ --------- ------------ --------- ---------------
<S> <C> <C> <C> <C> <C> <C> <C>
GOVERNMENT SECURITIES
SERIES CLASS A
1995 $(0.29) $10.04 6.99% 1.28%* 6.61%* 227%* $ 45,557
1994 (0.51) 9.63 (2.83) 1.28 5.07 191 47,622
1993 (0.59) 10.43 10.35 1.30 5.46 256 60,207
1992 (0.63) 10.01 4.51 1.30 6.58 200 70,062
1991 (0.69) 10.21 14.35 1.42 7.10 361 83,859
1990 (0.70) 9.60 6.09 1.44 7.44 263 102,209
GOVERNMENT SECURITIES
SERIES CLASS C
1995 (0.27) 10.03 6.73 1.73* 6.62* 227* 22,323
1994 (0.45) 9.62 (3.18) 1.73 4.62 191 22,599
1993 (0.55) 10.40 9.48 1.75 5.01 256 21,301
1992(1) (0.45) 10.02 6.31 1.81* 5.93* 200 9,210
ZWEIG CASH FUND CLASS A
1995 (0.03) 1.00 2.53 0.90* 5.93* N/A 4,020
1994(4) (0.03) 1.00 2.55** 0.62** 2.52** N/A 4,303
ZWEIG CASH FUND CLASS C
1995 (0.03) 1.00 2.53 0.90* 5.93* N/A 5,140
1994(4) (0.03) 1.00 2.55** 0.61** 2.52** N/A 5,040
ZWEIG CASH FUND CLASS M(5)
1995 (0.03) 1.00 2.64 0.68* 5.93* N/A 54,234
1994 (0.04) 1.00 3.67 0.70 3.58 N/A 78,149
1993 (0.03) 1.00 2.86 0.70 2.83 N/A 92,471
1992 (0.03) 1.00 3.40 0.70 3.35 N/A 145,169
1991 (0.06) 1.00 5.63 0.66 5.63 N/A 126,019
1990 (0.07) 1.00 7.53 0.72 7.27 N/A 186,943
</TABLE>
--------------------------------------------------------------------------------
(1) Commenced operations February 4, 1992.
(2) Commenced operations October 7, 1991.
(3) Commenced operations February 8, 1993.
(4) Commenced operations May 1, 1994.
(5) During 1995, 1994, 1993, 1992 and 1991, the Manager voluntarily reimbursed
Zweig Cash Fund Class M $.001 per share (.08% ratio of operating expenses to
average net assets), $.002 per share (.15% ratio of operating expenses to
average net assets) $.001 per share (.08% ratio of operating expenses to
average net assets) $.002 per share (.15% ratio of operating expenses to
average net assets) and $.001 per share (.15% ratio of operating expenses to
average net assets), respectively.
* Annualized
** Not Annualized
*** Total Return does not consider the effect of any initial or contingent
deferred sales charge.
48
<PAGE> 51
TRUSTEES
Claire B. Benenson
Richard E. Deems
S. Leland Dill
Eugene J. Glaser
Donald B. Romans
OFFICERS
Eugene J. Glaser
Chairman, Chief Executive Officer
& Trustee
Martin E. Zweig
President
David Katzen
Senior Vice President
Barry M. Mandinach
First Vice President
Carlton B. Neel
First Vice President
Alfred J. Ratcliffe
First Vice President & Treasurer
Charles I. Leone
Vice President & Assistant Secretary
Annemarie Gilly
Vice President
Maureen McQuaid
Assistant Vice President
Thomas Disbrow
Assistant Treasurer
Marc Baltuch
Secretary
INVESTMENT MANAGER
Zweig/Glaser Advisers
5 Hanover Square-17th Floor
New York, New York 10004
PRINCIPAL DISTRIBUTOR
Zweig Securities Corp.
5 Hanover Square-17th Floor
New York, New York 10004
CUSTODIAN
The Bank of New York
48 Wall Street
New York, New York 10015
TRANSFER AGENT
State Street Bank & Trust Co.
225 Franklin Street
Boston, Massachusetts 02110
SERVICING AGENT
Boston Financial Data Services, Inc.
2 Heritage Drive
North Quincy, Massachusetts 02171
COUNSEL
Shearman & Sterling
599 Lexington Avenue
New York, New York 10022
<PAGE> 52
[ZWEIG LOGO]
5 Hanover Square-17th Floor
New York, New York 10004
