<PAGE>
OFFICERS AND DIRECTORS
Martin E. Zweig, Ph.D.
Chairman of the Board and President
Jeffrey Lazar
Vice President and Treasurer
Stuart B. Panish
Vice President and Secretary
Christopher M. Capano
Assistant Vice President
Eugene J. Glaser
Director
Elliot S. Jaffe
Director
Alden C. Olson, Ph.D.
Director
James B. Rogers, Jr.
Director
Anthony M. Santomero, Ph.D.
Director
Robert E. Smith
Director
INVESTMENT ADVISER
Zweig Advisors Inc.
900 Third Avenue
New York, New York 10022
FUND ADMINISTRATOR
Zweig/Glaser Advisers
900 Third Avenue
New York, New York 10022
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
LEGAL COUNSEL
Rosenman & Colin LLP
575 Madison Avenue
New York, New York 10022
This report is transmitted to the shareholders of The Zweig Fund, Inc. for
their information. This is not a prospectus, circular or representation intend-
ed for use in the purchase of shares of the Fund or any securities mentioned in
this report.
4902-3Q-
[LOGO OF THE ZWEIG FUND]
QUARTERLY REPORT
SEPTEMBER 30, 1997
<PAGE>
October 16, 1997
Dear Shareholder:
The Zweig Fund's net asset value increased 10.0% during the three months
ended September 30, 1997, including the $0.30 distribution paid on July 25,
1997. During the same period, the Standard & Poor's 500 Index gained 7.5%,
including dividends. Maintaining our risk-averse policy, the Fund's equity
exposure during the third quarter averaged approximately 74%.
For the nine months ended September 30, 1997, the Fund's net asset value
increased 23.0%, including $0.87 in distributions. During this span, the S&P's
500 Index increased 29.6%, including dividends. Our average exposure for this
period was 66%.
I am pleased that we beat the market in the third quarter with significantly
less than a fully invested position. With the broad market doing a lot better
than the blue chips, our stock selection approach came back into favor. We
pick liquid stocks with attractive values relative to their earnings growth
which pay the highest dividends. These are the equities that showed the best
performance last quarter.
DISTRIBUTION DECLARED
On September 22, 1997, the Fund announced a distribution of $0.33 per share
payable on October 27, 1997, to shareholders of record on October 10, 1997.
Including this distribution, our total payout since the Fund's inception is
now $12.25.
MARKET OUTLOOK
At this writing we are about 90% invested--approximately 83% in stocks and
7% in bonds, a bullish position for us. We have increased our exposure
primarily because the bond market is acting better and the inflation numbers,
by and large, have behaved. The low interest rate environment has created a
fairly decent atmosphere for bonds and that has helped stocks as well.
On the economic outlook, I am slightly more concerned about deflation than
inflation, but that is just a hunch. I think there is a chance that we will
see moderate deflation, which would not be bad for stocks if earnings hold up.
The risk is what would the economy have to do to get deflation. If it is going
to take an earnings collapse and a recession, that certainly would not be
bullish. There is also risk of inflation but with a lot of deflationary
pressures around the world, I am more worried about deflation for the moment.
The financial crisis in Southeast Asia is probably a plus for U.S. stocks if
it doesn't lead to a world-wide recession. I call the crisis positive because
it has bolstered the dollar. This helps our imports and hurts our exports.
Because people abroad have to pay more in dollars to buy our goods, this
serves as a damper on our economy and on the inflation numbers. While this is
bad news for companies that get the bulk of their sales from overseas, the
broad list of stocks depends primarily on domestic sales.
Volatility in the stock market, which frightens a lot of people, has perked
up recently and I went back to the computer to see if it is bullish or
bearish. I found that generally you get the most volatility either late in a
bear market or early in a bull market. For sure we are not late in a bear
market--the last one was seven years ago. And we certainly are not early in
the bull market. However, the market has gotten more volatile. A note of
reassurance--historically, the market tends to do better during periods of
high volatility but that is not always the case.
I am keeping a watchful eye on valuation. With price/earnings ratios so
high, it is as though the valuation rubber band is being stretched further and
further. As long as it does not snap, everything remains fine. If inflation
stays in check and earnings continue to grow, valuation alone should not be a
serious problem.
<PAGE>
Among my key indicators, the monetary model is moderately bullish but the
sentiment components are not so terrific. Although the sentiment indicators
are below average, they are not extremely negative. Basically, sentiment is
lower because the market rally has brought a return to some optimism. However
it is not the kind of optimism that you generally see at the top. Because of
recent market activity, my tape indicators are, of course, very solid.
Summing up, I see the market positives as low inflation, generally
satisfactory bond action, and the strong tape. The negatives would include
valuation and the mixed sentiment indicators. Overall, I don't see these as
any real problems.
Right now the market looks O.K. to me but I don't think it necessarily will
go straight up. Meanwhile, I am fairly bullish on at least the short-term
outlook. As a defensive money manager, I will always be prepared to reduce our
exposure if my indicators point to rising risk.
PORTFOLIO COMPOSITION
The majority of our stocks are acquired or sold on the basis of a
proprietary computer-driven model that is weighted toward a value approach
with secondary emphasis on growth. Various criteria are used to evaluate and
rank the most liquid stocks with the highest dividend yields.
Although our holdings have grown because of appreciation and acquisitions to
increase our exposure, the composition of our largest industry groups showed
little change during the third quarter. Our leading sectors continue to in-
clude oil, financial services, utilities, manufacturing, investment companies
and metals.
Our top individual positions include Ford, Sun, USX-Marathon, YPF S.A. (a
leading Argentine oil and gas company), Bear Stearns, USX-US Steel, Telefonos
de Mexico, Ashland, ARCO (Atlantic Richfield), RJR/Nabisco and Cummins Engine.
ARCO is the only new position in the above listing. In this group we have
increased our holdings in Ford, Sun, YPF S.A., Ashland, and Cummins Engine.
In the financial services area, our performance benefited from the gains in
Bear Stearns, PaineWebber, A.G. Edwards, and Salomon. This sector was
strengthened by the pending merger of Travelers Group (which already owns
Smith Barney) with Salomon, leading to the possibility of further takeovers in
this field.
The UPS strike was a plus for other trucking companies. Here we profited by
higher prices for CNF Transportation and Caliber Systems. Caliber, which owns
RPS, Viking Freight and Roberts Express, is a new addition to our portfolio.
It is slated to be acquired by FedEx.
Our holdings in the oil sector saw significant gains in Sun, YPF S.A., and
USX-Marathon. During the quarter we reduced our positions in Telefonos de
Mexico, Royal Dutch, and Chrysler.
Our portfolio also includes a number of closed-end funds that are selling at
significant discounts from their net asset values. When the market again
places a premium on valuation, as it has done historically, discounts should
narrow and more closely reflect the net asset values. This would enhance the
profitability of these holdings.
Sincerely,
LOGO
Martin E. Zweig, Ph.D.
Chairman
2
<PAGE>
THE ZWEIG FUND, INC.
STATEMENT OF NET ASSETS
SEPTEMBER 30, 1997
(UNAUDITED)
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
--------- ------------
<S> <C> <C>
COMMON STOCKS 81.45%
AEROSPACE & DEFENSE 0.79%
Gencorp Inc. ......................................... 31,800 $ 904,312
General Motors Corp., Class H......................... 67,600 4,470,050
------------
5,374,362
------------
AUTOMOTIVE 4.49%
Chrysler Corp. ....................................... 167,200 6,155,050
Ford Motor Co. ....................................... 257,800 11,665,450
General Motors Corp. ................................. 118,700 7,945,481
Volvo AB, ADR......................................... 175,100 4,968,463
------------
30,734,444
------------
CHEMICALS 1.67%
Albemarle Corp. ...................................... 79,800 1,995,000
Millenium Chemicals Inc. ............................. 87,700 1,929,400
Rohm & Haas Co. ...................................... 63,800 6,120,813
Wellman Inc. ......................................... 58,600 1,358,787
------------
11,404,000
------------
CONSUMER DURABLES 2.14%
Cooper Tire & Rubber Co. ............................. 193,500 5,139,844
Goodyear Tire & Rubber Co. ........................... 56,700 3,898,125
Huffy Corp. .......................................... 28,500 470,250
Whirlpool Corp. ...................................... 77,000 5,106,062
------------
14,614,281
------------
CONTAINERS & PACKAGING 0.10%
Sea Containers Ltd., Class A.......................... 25,200 715,050
------------
ELECTRONICS 0.55%
Hitachi Ltd., ADR..................................... 2,900 255,744
Philips Electronics N.V., ADR......................... 41,400 3,477,600
------------
3,733,344
------------
FINANCIAL SERVICES 10.97%
A.G. Edwards, Inc. ................................... 123,100 6,324,263
Bear, Stearns & Co., Inc. ............................ 221,736 9,756,384
Charter One Financial, Inc. .......................... 29,700 1,756,012
CIGNA Corp. .......................................... 26,900 5,010,125
Fremont General Corp. ................................ 67,050 3,201,638
GATX Corp. ........................................... 20,500 1,385,031
H. F. Ahmanson & Co. ................................. 136,600 7,760,588
Lincoln National Corp. ............................... 63,500 4,421,187
Old Republic International Corp. ..................... 89,500 3,490,500
Orion Capital Corp. .................................. 58,000 2,628,125
PaineWebber Group Inc. ............................... 150,000 6,984,375
PIMCO Advsors L.P. ................................... 47,600 1,496,425
Providian Corp. ...................................... 147,200 5,842,000
</TABLE>
3
<PAGE>
THE ZWEIG FUND, INC.
STATEMENT OF NET ASSETS--(CONTINUED)
SEPTEMBER 30, 1997
(UNAUDITED)
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
--------- ------------
<S> <C> <C>
FINANCIAL SERVICES (CONTINUED)
Ryder System, Inc. ................................... 150,800 $ 5,419,375
Salomon Inc. ......................................... 102,200 7,684,162
Selective Insurance Group, Inc. ...................... 24,000 1,236,000
St. Paul Bancorp. .................................... 26,700 667,500
------------
75,063,690
------------
FOOD & BEVERAGE 0.52%
Adolph Coors Co., Class B............................. 93,200 3,529,950
------------
HOME BUILDERS & MATERIALS 0.55%
Kaufman & Broad Home Corp. ........................... 98,600 2,138,388
Lafarge Corp. ........................................ 50,400 1,625,400
------------
3,763,788
------------
INDUSTRIAL SERVICES 0.40%
Browning Ferris Industries Inc. ...................... 30,700 1,168,519
Ogden Corp. .......................................... 67,600 1,597,050
------------
2,765,569
------------
INVESTMENT COMPANIES 5.50%
Argentina Fund, Inc. ................................. 31,100 462,613
Blackrock 2001 Term Trust, Inc. ...................... 52,600 447,100
Blackrock Strategic Term Trust, Inc. ................. 52,600 437,237
Brazil Fund, Inc. .................................... 59,500 1,666,000
Central European Equity Fund, Inc. ................... 30,800 793,100
Chile Fund, Inc. ..................................... 61,400 1,561,862
China Fund Inc. ...................................... 47,700 849,656
Clemente Global Growth Fund, Inc. .................... 23,400 245,700
Emerging Markets Infrastructure Fund, Inc. ........... 133,800 1,856,475
Emerging Markets Telecommunications Fund, Inc. ....... 61,500 1,110,844
Emerging Mexico Fund, Inc. ........................... 36,200 416,300
Fidelity Advisor Emerging Asia Fund Inc. ............. 57,500 697,187
G.T. Global Developing Markets Fund, Inc. ............ 27,800 545,575
Gabelli Equity Trust, Inc. ........................... 149,500 1,625,813
Gabelli Global Multimedia Trust Fund, Inc. ........... 97,100 831,419
Greater China Fund, Inc. ............................. 21,500 463,594
Italy Fund, Inc. ..................................... 16,200 169,088
Mexico Fund, Inc. .................................... 89,800 2,054,175
Morgan Stanley Asia-Pacific Fund, Inc. ............... 121,900 1,119,956
Morgan Stanley Emerging Markets Fund, Inc. ........... 144,800 2,488,750
New Germany Fund, Inc. ............................... 125,400 1,967,212
Portgugal Fund, Inc. ................................. 41,100 760,350
R.O.C. Taiwan Fund.................................... 106,300 1,288,888
Royce Value Trust Inc. ............................... 144,155 2,342,519
Scudder New Asia Fund Inc. ........................... 32,100 397,237
Southern Africa Fund, Inc. ........................... 34,400 610,600
Spain Fund Inc. ...................................... 52,000 793,000
</TABLE>
4
<PAGE>
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
---------- ------------
<S> <C> <C>
INVESTMENT COMPANIES (CONTINUED)
Swiss Helvetia Fund, Inc. .......................... 77,000 $ 1,973,125
Taiwan Fund Inc. ................................... 94,800 2,405,550
Templeton China World Fund, Inc. ................... 91,300 1,238,256
Templeton Dragon Fund, Inc. ........................ 172,200 2,755,200
Templeton Vietnam Opportunities Fund, Inc. ......... 32,900 376,294
Tri-Continental Corp. .............................. 30,700 899,894
------------
37,650,569
------------
LEISURE 0.78%
Brunswick Corp. .................................... 95,800(c) 3,376,950
Royal Caribbean Cruises Ltd. ....................... 44,300 1,938,125
------------
5,315,075
------------
LODGING 0.12%
Marcus Corp. ....................................... 27,700 806,763
------------
MANUFACTURING 6.37%
Borg-Warner Automotive, Inc. ....................... 42,700 2,428,563
Brown Group, Inc. .................................. 59,000 1,073,062
Cummins Engine Company, Inc. ....................... 110,400 8,618,100
Dexter Corp. ....................................... 36,700 1,470,294
Excel Industries, Inc. ............................. 38,500 767,594
Herman Miller, Inc. ................................ 92,600 4,954,100
Johnson Controls, Inc. ............................. 55,800 2,765,587
PACCAR Inc. ........................................ 77,800 4,356,800
Simpson Industries, Inc. ........................... 43,000 497,187
Standard Products Co. .............................. 46,300 1,218,269
Stewart & Stevenson Services Inc. .................. 52,200 1,256,062
Timken Co. ......................................... 159,900 6,405,994
Trinity Industries Inc. ............................ 110,400 5,326,800
TRW, Inc. .......................................... 44,300 2,430,963
------------
43,569,375
------------
METALS & MINING 5.48%
ASARCO, Inc. ....................................... 225,100 7,203,200
Birmingham Steel Corp. ............................. 59,100 1,023,169
British Steel Plc, ADR.............................. 138,800 4,042,550
Cleveland-Cliffs Inc. .............................. 14,700 641,287
Cyprus Amax Minerals Co. ........................... 195,800 4,699,200
Oregon Steel Mills, Inc. ........................... 90,600 2,457,525
Phelps Dodge Corp. ................................. 104,400 8,104,050
USX-U.S. Steel Group................................ 266,700 9,267,825
------------
37,438,806
------------
OIL & OIL SERVICES 12.02%
Ashland Inc. ....................................... 162,600 8,841,375
Atlantic Richfield Co. ............................. 103,000 8,800,062
Elf Aquitaine S.A., ADR............................. 97,700 6,515,369
</TABLE>
5
<PAGE>
THE ZWEIG FUND, INC.
STATEMENT OF NET ASSETS--(CONTINUED)
SEPTEMBER 30, 1997
(UNAUDITED)
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
--------- ------------
<S> <C> <C>
OIL & OIL SERVICES (CONTINUED)
Equitable Resources Inc. ........................... 12,300 $ 387,450
Helmerich & Payne, Inc. ............................ 49,400 3,952,000
Murphy Oil Corp. ................................... 56,900 3,250,413
Occidental Petroleum Corp. ......................... 137,400 3,563,812
Pennzoil Co. ....................................... 89,400 7,124,063
Quaker State Corp. ................................. 84,400 1,440,075
Royal Dutch Petroleum Co., ADR...................... 135,200 7,503,600
Sun Company, Inc. .................................. 243,700 10,677,106
USX-Marathon Group.................................. 271,700 10,103,844
YPF Sociedad Anonima, ADR........................... 270,800 9,985,750
------------
82,144,919
------------
PAPER & FOREST PRODUCTS 2.94%
Bowater Inc. ....................................... 123,200 6,283,200
Fort James Corp. of Virginia........................ 179,400 8,218,762
International Paper Co. ............................ 54,700 3,011,919
Pope & Talbot, Inc. ................................ 35,200 745,800
Westvaco Corp. ..................................... 50,950 1,837,384
------------
20,097,065
------------
RETAIL TRADE & SERVICES 2.73%
American Stores Co. ................................ 122,800 2,993,250
Dayton Hudson Corp. ................................ 104,100 6,239,494
Heilig-Meyers Co. .................................. 58,000 891,750
Ross Stores Inc. ................................... 74,600 2,545,725
Shopko Stores Inc. ................................. 68,400 1,778,400
Supervalu Inc. ..................................... 106,500 4,180,125
------------
18,628,744
------------
TECHNOLOGY 3.59%
Applied Materials Inc. ............................. 20,800(a) 1,981,200
Dell Computer Corp. ................................ 72,000(a) 6,975,000
Digital Equipment Corp. ............................ 57,600(a) 2,494,800
Harris Corp. ....................................... 81,600 3,733,200
Intel Corp. ........................................ 45,600 4,209,450
Microsoft Corp. .................................... 38,700(a) 5,120,494
------------
24,514,144
------------
TELECOMMUNICATIONS 4.25%
BCE Inc. ........................................... 79,000 2,360,125
Comsat Corp. ....................................... 137,100 3,264,694
Telecomunicacoes Brasileiras S.A. .................. 41,800 5,381,750
Telefonica de Espana S.A., ADR...................... 90,500 8,518,312
Telefonos de Mexico S.A., ADR....................... 184,400 9,542,700
------------
29,067,581
------------
</TABLE>
6
<PAGE>
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
--------- ------------
<S> <C> <C>
TOBACCO 1.43%
RJR Nabisco Holdings Corp. ........................... 255,900 $ 8,796,562
Universal Corp. of Virginia........................... 26,200 949,750
------------
9,746,312
------------
TRANSPORTATION 3.84%
British Airways Plc, ADR.............................. 18,600 2,032,050
Caliber System, Inc. ................................. 138,300 7,502,775
Canadian Pacific Ltd. ................................ 210,000 6,208,125
CNF Transportation, Inc. ............................. 143,300 6,242,506
CSX Corp. ............................................ 28,700 1,678,950
KLM Royal Dutch Airlines N.V., ADR.................... 51,933 1,781,951
Rollins Truck Leasing Corp. .......................... 46,200 788,288
------------
26,234,645
------------
UTILITIES--ELECTRIC & NATURAL GAS 10.22%
American Electric Power Co., Inc. .................... 93,000 4,231,500
Columbia Gas System, Inc. ............................ 4,600 322,000
CMS Energy Corp. ..................................... 144,600 5,350,200
DQE Inc. ............................................. 85,950 2,900,813
DTE Energy Co. ....................................... 72,400 2,203,675
Edison International.................................. 268,400 6,777,100
FPL Inc. ............................................. 84,300 4,320,375
GPU, Inc. ............................................ 222,100 7,967,837
Illinova Corp. ....................................... 100,400 2,164,875
New York State Electric & Gas Corp. .................. 228,000 6,127,500
Ohio Edison Co. ...................................... 99,700 2,336,719
Pacific Enterprises................................... 61,300 2,076,538
PacifiCorp. .......................................... 92,500 2,069,687
Pinnacle West Capital Corp. .......................... 141,900 4,771,388
Public Service Co. of New Mexico...................... 89,500 1,728,469
Sierra Pacific Resources Inc. ........................ 59,800 1,917,337
Transcanada Pipelines Ltd. ........................... 101,500 1,966,562
United Illuminating Co. .............................. 29,300 1,067,619
UtiliCorp United Inc. ................................ 88,100 2,654,012
Valero Energy Corp. .................................. 124,500 4,085,156
Western Resources Inc. ............................... 81,600 2,799,900
------------
69,839,262
------------
TOTAL COMMON STOCKS................................. 556,751,738
------------
</TABLE>
7
<PAGE>
THE ZWEIG FUND, INC.
STATEMENT OF NET ASSETS--(CONCLUDED)
SEPTEMBER 30, 1997
(UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
---------------- ------------
<S> <C> <C>
UNITED STATES GOVERNMENT & AGENCY
OBLIGATIONS 6.37%
Federal National Mortgage Association, 6.85%,
4/5/2004...................................... $ 2,765,000 $ 2,848,318
United States Treasury Bonds, 10.750%,
5/15/2003..................................... 4,000,000 4,883,748
United States Treasury Bonds, 7.25%, 8/15/2022. 1,600,000 1,749,000
United States Treasury Bonds, 7.50%,
11/15/2024.................................... 17,600,000 19,882,491
United States Treasury Notes, 6.875%,
5/15/2006..................................... 11,900,000 12,446,650
United States Treasury Notes, 6.50%, 1,736,656
10/15/2006.................................... 1,700,000 ------------
Total United States Government & Agency 43,546,863
Obligations................................. ------------
SHORT-TERM INVESTMENTS 11.82%
Ford Motor Credit Co., 5.55%, 10/02/97......... 19,100,000 19,097,055
Goldman, Sachs & Co., 5.58%, 10/02/97.......... 16,700,000 16,697,412
PepsiCo, Inc., 5.50%, 10/03/97................. 30,000,000 29,990,833
Sara Lee Corp., 6.30%, 10/01/97................ 15,000,000 15,000,000
------------
TOTAL SHORT-TERM INVESTMENTS................. 80,785,300
------------
TOTAL INVESTMENTS IN SECURITIES.................. 99.64% 681,083,901
CASH AND OTHER ASSETS LESS LIABILITIES........... .36 2,493,747
----------- ------------
NET ASSETS (Equivalent to $13.06 per share based
on 52,327,313 shares of capital stock outstand- 100% $683,577,648
ing)............................................ =========== ============
<CAPTION>
NUMBER OF
SHARES/CONTRACTS
----------------
<S> <C> <C>
SECURITIES SOLD SHORT
Brunswick Corp. ............................... 95,800(c) $ 3,376,950
Goodyear Tire & Rubber Co. .................... 56,700(c) 3,898,125
Helig-Myers Co. ............................... 58,000(c) 891,750
International Paper Co. ....................... 54,700(c) 3,011,919
Pennzoil Co. .................................. 46,400(c) 3,697,500
Royal Dutch Petroleum Co., ADR................. 135,200(c) 7,503,600
Telefonica de Espana S.A., ADR................. 14,300(c) 1,345,987
Telefonos de Mexico S.A., ADR.................. 59,800(c) 3,094,650
Webs Hong Kong................................. 184,600 2,872,838
------------
TOTAL SECURITIES SOLD SHORT 29,693,319
(Proceeds $28,685,571)...................... ------------
NET UNREALIZED APPRECIATION ON FUTURES CONTRACTS
Standard and Poor's 500 December 1997 Long $ 1,098,200
futures....................................... 76(b) ============
</TABLE>
- --------
(a) Non-income producing security.
(b) The market value of the long futures was $36,274,800 (representing 5.31% of
the Fund's net assets) with a cost of $35,176,600.
(c) Short against the box.
8
<PAGE>
THE ZWEIG FUND, INC.
FINANCIAL HIGHLIGHTS
SEPTEMBER 30, 1997
(UNAUDITED)
<TABLE>
<CAPTION>
NET ASSET VALUE
TOTAL NET ASSETS PER SHARE
-------------------------- ----------------
<S> <C> <C> <C> <C>
NET ASSET VALUE
Beginning of period: December 31,
1996............................. $589,080,510 $ 11.45
Net investment income............ $ 12,526,818 $ 0.24
Net realized and unrealized gains
on investments.................. 116,676,090 2.24
Dividends from net investment
income and distributions from
net long-term and short-term
capital gains................... (44,892,791) (0.87)
Net asset value of shares issued
to shareholders for reinvestment
of dividends and distributions.. 10,187,021 --
------------ -------
Net increase in net assets/net
asset value.................... 94,497,138 1.61
------------ -------
End of period: September 30, 1997. $683,577,648 $ 13.06
============ =======
</TABLE>
9
<PAGE>
KEY INFORMATION
1-800-272-2700 ZWEIG SHAREHOLDER RELATIONS:
For general information and literature
(212) 644-2188 THE ZWEIG FUND HOT LINE:
For updates on net
asset value, share
price, major industry
groups and other key
information
REINVESTMENT PLAN
Many of you have questions
about the reinvestment plan. We
urge shareholders who want to
take advantage of this plan and
whose shares are held in "Street
Name" to consult your broker as
soon as possible to determine if
you must change registration in-
to your own name to participate.
----------------
Notice is hereby given in accordance with Section 23(c) of the Investment
Company Act of 1940 that the Fund may from time to time purchase its shares of
common stock in the open market when Fund shares are trading at a discount of
10% or more from their net asset value.
10
