<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
Charles H. Brunie
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 Total Return Advisors, Inc.
900 Third Avenue
New York, New York 10022
FUND ADMINISTRATOR
Zweig/Glaser Advisers
900 Third Avenue
New York, New York 10022
CUSTODIAN
Boston Safe Deposit and Trust Company
One Boston Place
Boston, MA 02109
TRANSFER AGENT
First Data Investor Services Group, Inc.
P.O. Box 1376
Boston, MA 02104
LEGAL COUNSEL
Rosenman & Colin LLP
575 Madison Avenue
New York, New York 10022
- --------------------------------------------------------------------------------
This report is transmitted to the shareholders of The Zweig Total Return
Fund, Inc. for their information. This is not a prospectus, circular or repre-
sentation intended for use in the purchase of shares of the Fund or any securi-
ties mentioned in this report.
[LOGO OF THE ZWEIG TOTAL RETURN FUND, INC.]
QUARTERLY REPORT
MARCH 31, 1997
<PAGE>
May 15, 1997
Dear Shareholder:
The Zweig Total Return Fund's net asset value increased 0.1% during the
quarter ended March 31, 1997, including $0.21 in reinvested distributions.
Consistent with our policy of seeking to minimize risk while earning
reasonable returns, the Fund's average exposure during the period was 63%.
DISTRIBUTION DECLARED
In accordance with our policy of distributing 10% of net asset value per
year, which equals 0.83% per month (10% divided by 12 months), the Fund
recently announced a distribution of $0.07 per share payable on May 27, 1997,
to shareholders of record on May 12, 1997. The amount of a distribution
depends on the exact net asset value at the time of declaration. For the May
distribution, 0.83% of the Fund's net asset value was equivalent to $0.07 per
share. Including this distribution, the Fund's payout since its inception is
now $7.82.
MARKET OUTLOOK
If we were fully invested, our Fund would be 62 1/2% in bonds and 37 1/2% in
stocks. Currently, our bond position is at about 37%, little changed from the
year-end. This means that we are at 59% of a full position (37%/62 1/2%). Our
average duration is about 3.7, which is lower than the average figure of most
bond funds. The lower duration means that we are less sensitive to changes in
interest rates. Our duration management aims to reduce our exposure to a
falling bond market, thus limiting our losses.
Bonds struggled during the first quarter, especially in March. As the
economy seemed to strengthen, interest rate jitters drove prices down. On
March 25 the Fed raised short-term interest rates by a quarter of a percent--
the first hike since February, 1995. The yield on the 30-year Treasury bond
rose one half of a percent to cross the 7% level for the first time since last
November.
To chart the direction of the bond market, we look primarily at commodity
prices and economic activity. On the positive side, the index compiled by the
Commodity Research Bureau is down. Also lower are prices of such key materials
as gold, copper, lead, and oil. Negative factors include the strong economy
and fairly high capacity utilization. Our sentiment indicators are mixed.
Consequently, there really isn't a lot to hang my hat on one way or another,
which is why we are in a neutral position.
Some market watchers are predicting further interest rate hikes by the Fed
in the months to come. We prefer to react rather than predict. If the interest
rate environment becomes more hostile, we'll trim our interest rate exposure
further. However, if the situation improves, we'll respond by moving further
into the market and lengthening our duration.
Our position on equities is also on the neutral side. At this writing, our
stock position is at 28% or roughly 75% of a full position (28%/37 1/2%). This
is little changed from our holdings at year-end.
Positive indicators include the fact that a lot of pessimism has been built
up lately on the correction of nearly 10%, giving the market a really good
shot at a rally. The main weaknesses are the poor performance of the bond
market
<PAGE>
and, more recently, the financial stocks, particularly banks. Lurking in the
background is the long-term factor that the market is clearly overvalued--and
that's not good. Given the poor monetary conditions and the valuation
situation, I can't get too bullish. Of course I will remain flexible and react
in a disciplined manner to changing market conditions.
PORTFOLIO COMPOSITION
In accordance with our investment policy guidelines, all of our bonds are
U.S. Government obligations. The average duration of the bond portion of our
portfolio is about 3.7. Since these bonds are liquid, they give us the
flexibility to adjust quickly to changing market conditions.
Implementing my basic allocation strategy, most of our equities are bought
or sold on the basis of a proprietary computer-driven model that is weighted
toward a value approach with secondary emphasis on growth. We employ various
criteria to evaluate and rank the most liquid stocks with the highest dividend
yields.
Although we have reduced our exposures in utilities, oil and oil services,
and financial services, these industries remain among our leading sectors.
Other top categories include metals and manufacturing, where we have increased
our holdings. We have lightened our positions in the retail and telecommuni-
cations areas, but these groups still occupy prominent positions in our port-
folio.
Our leading individual holdings include USX-Marathon, Salomon, Dayton
Hudson, Telefonos de Mexico, Chrysler, Harris Corp., RJR/Nabisco, General
Motors Hughes, Telefonica de Espana, and Ford.
In the above group, we have increased our positions in Salomon, Telefonos de
Mexico, RJR/Nabisco, and Ford and reduced our holdings in Telefonica de
Espana.
We have sold out our positions in Texaco and Merrill Lynch and cut back our
holdings in BankAmerica, Rohm & Haas, NYNEX, General Motors, and American
Stores.
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 positions.
TRANSFER AGENT CHANGE
Please be advised that the Board of Directors, at their meeting on May 15,
1997, appointed State Street Bank and Trust as Transfer Agent, Registrar and
Dividend Disbursing Agent for The Zweig Total Return Fund, Inc. effective
September 1, 1997. State Street has capably served as Transfer Agent for The
Zweig Series Trust for many years and will now also assume these
responsibilities for our other closed-end fund, The Zweig Fund, Inc. Both
funds will enjoy some cost savings from this consolidation and shareholders
will now have the convenience of the same address and toll-free phone number
for all Zweig Funds.
No action is required on your part as a result of this change. We will
notify shareholders of the new address and toll-free phone number in our June
30, 1997 shareholder report.
Sincerely,
/s/ Martin E. Zweig
Martin E. Zweig, Ph.D.
Chairman
2
<PAGE>
THE ZWEIG TOTAL RETURN FUND, INC.
STATEMENT OF NET ASSETS
MARCH 31, 1997 (UNAUDITED)
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
--------- ----------
<S> <C> <C>
Common Stocks 25.61%
Aerospace & Defense 0.47%
Gencorp, Inc. .......................................... 19,800 $ 376,200
General Motors Corp., Class H........................... 47,400 2,571,450
----------
2,947,650
----------
Apparel Manufacturer 0.07%
Russell Corp. .......................................... 12,200 436,150
----------
Automotive 1.44%
Borg-Warner Automotive Corp. ........................... 13,000 554,125
Chrysler Corp. ......................................... 97,200 2,916,000
Ford Motor Corp. ....................................... 83,300 2,613,538
General Motors Corp. ................................... 40,300 2,231,612
Volvo AB, ADR........................................... 26,300 683,800
----------
8,999,075
----------
Banks 0.67%
Ahmanson, (H.F.) & Co. ................................. 48,900 1,784,850
BankAmerica Corp. ...................................... 18,400 1,853,800
Charter One Financial, Inc. ............................ 12,900 565,988
----------
4,204,638
----------
Chemicals 0.64%
Dexter Corp. ........................................... 14,900 448,863
Olin Corp. ............................................. 25,500 1,013,625
Rohm & Haas Co. ........................................ 30,800 2,306,150
Wellman, Inc. .......................................... 13,000 227,500
----------
3,996,138
----------
Construction & Farm Equipment 0.27%
Caterpillar, Inc. ...................................... 21,100 1,693,275
----------
Consumer Durables 0.36%
Goodyear Tire & Rubber Co. ............................. 39,500 2,063,875
Huffy Corp. ............................................ 13,200 181,500
----------
2,245,375
----------
Consumer Products 0.12%
American Greetings Corp. ............................... 24,000 766,500
----------
Containers & Packaging 0.03%
Sea Containers Ltd., Class A............................ 12,100 187,550
----------
</TABLE>
3
<PAGE>
THE ZWEIG TOTAL RETURN FUND, INC.
STATEMENT OF NET ASSETS--(CONTINUED)
MARCH 31, 1997 (UNAUDITED)
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
--------- -----------
<S> <C> <C>
Finance & Financial Services 1.60%
Bear, Stearns & Co., Inc. ............................. 78,582 $ 2,062,777
Edwards, (A.G.) & Sons, Inc. .......................... 58,400 1,795,800
Fremont General Corp. ................................. 22,100 621,562
GATX Corp. ............................................ 6,600 322,575
Orion Capital Corp. ................................... 12,700 784,225
PaineWebber Group, Inc. ............................... 32,000 904,000
Salomon Inc. .......................................... 62,500 3,117,188
Selective Insurance Group, Inc. ....................... 9,800 406,700
-----------
10,014,827
-----------
Food & Beverage 0.40%
Adolph Coors Co., Class B.............................. 41,700 886,125
Chiquita Brand International, Inc. .................... 77,700 1,214,062
Fleming Companies, Inc. ............................... 24,300 425,250
-----------
2,525,437
-----------
Home Builders & Materials 0.11%
Kaufman & Broad Home Corp. ............................ 44,500 589,625
Ryland Group Inc. ..................................... 12,200 143,350
-----------
732,975
-----------
Investment Companies 1.80%
Adams Express Co. ..................................... 15,500 313,875
Blackrock 2001 Term Trust, Inc. ....................... 29,000 232,000
Blackrock Strategic Term Trust, Inc. .................. 29,000 228,375
Brazil Fund, Inc. ..................................... 41,600 1,024,400
China Fund, Inc. ...................................... 13,800 182,850
Clemente Global Growth Fund, Inc. ..................... 13,100 108,075
Czech Republic Fund, Inc. ............................. 3,800 51,300
Emerging Germany Fund, Inc. ........................... 28,600 250,250
Emerging Markets Infrastructure, Inc. ................. 19,700 231,475
Emerging Markets Telecommunications Fund, Inc. ........ 10,400 166,400
Emerging Mexico Fund, Inc. ............................ 21,700 165,462
France Growth Fund, Inc. .............................. 28,400 315,950
G.T. Global Developing Fund, Inc. ..................... 28,400 337,250
G.T. Global Eastern Europe Fund, Inc. ................. 12,800 193,600
Gabelli Equity Trust, Inc. ............................ 51,700 484,688
Gabelli Global Multimedia Trust Fund, Inc. ............ 50,600 347,875
Indonesia Fund, Inc. .................................. 6,700 66,163
Jakarta Growth Fund, Inc. ............................. 5,100 45,262
</TABLE>
4
<PAGE>
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
--------- -----------
<S> <C> <C>
Investment Companies (Continued)
Jardine Fleming India Fund, Inc. ...................... 10,800 $ 81,000
Mexico Fund, Inc. ..................................... 34,600 566,575
Morgan Stanley Russia & New Europe Fund, Inc. ......... 6,400 152,800
New Germany Fund, Inc. ................................ 68,800 963,200
Portgugal Fund, Inc. .................................. 10,600 157,675
R.O.C. Taiwan Fund..................................... 29,200 346,750
Royce Value Trust, Inc. ............................... 70,160 824,380
Schroder Asian Growth Fund, Inc. ...................... 13,200 155,100
Scudder New Asia Fund, Inc. ........................... 15,000 185,625
Southern Africa Fund, Inc. ............................ 14,900 245,850
Spain Fund, Inc. ...................................... 21,000 238,875
Swiss Helvetia Fund, Inc. ............................. 40,100 827,063
Taiwan Fund, Inc. ..................................... 25,700 632,862
Templeton China World Fund, Inc. ...................... 23,200 290,000
Templeton Dragon Fund, Inc. ........................... 42,400 614,800
Templeton Vietnam Opportunities Fund, Inc. ............ 15,700 176,625
Turkish Investment Fund, Inc. ......................... 12,800 78,400
-----------
11,282,830
-----------
Industrial Services 0.08%
Ogden Corp. ........................................... 23,500 496,438
-----------
Leisure 0.50%
Brunswick Corp. ....................................... 51,700 1,389,437
Fleetwood Enterprises, Inc. ........................... 46,000 1,150,000
Royal Caribbean Cruises, Ltd. ......................... 19,500 594,750
-----------
3,134,187
-----------
Manufacturing 1.46%
Brown Group, Inc. ..................................... 26,000 432,250
Cummins Engine Co., Inc. .............................. 32,500 1,665,625
Excel Industries, Inc. ................................ 15,800 321,925
Herman Miller, Inc. ................................... 14,600 996,450
Ingersoll-Rand Co. .................................... 9,400 410,075
Johnson Controls, Inc. ................................ 13,000 1,046,500
PACCAR Inc. ........................................... 19,300 1,288,275
Simpson Industries, Inc. .............................. 15,900 157,013
Standard Products Co. ................................. 12,200 283,650
Timken Co. ............................................ 14,900 797,150
TRW, Inc. ............................................ 33,000 1,707,750
-----------
9,106,663
-----------
</TABLE>
5
<PAGE>
THE ZWEIG TOTAL RETURN FUND, INC.
STATEMENT OF NET ASSETS--(CONTINUED)
MARCH 31, 1997 (UNAUDITED)
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
--------- -----------
<S> <C> <C>
Metals & Mining 1.52%
ASARCO, Inc. .......................................... 49,700 $ 1,397,812
British Steel, Plc., ADS............................... 65,900 1,754,588
Cleveland-Cliffs, Inc. ................................ 6,400 270,400
Cyprus Amax Minerals Co. .............................. 28,600 679,250
De Beers Consolidated Mines, ADR....................... 3,200 113,200
Oregon Steel Mills Inc. .............................. 61,800 1,073,775
Phelps Dodge Corp. .................................... 22,900 1,674,562
Quanex Corp. .......................................... 22,000 552,750
USX-US Steel Group, Inc. .............................. 75,300 2,004,863
-----------
9,521,200
-----------
Oil & Oil Services 3.56%
Ashland Oil Inc. ...................................... 28,200 1,135,050
Elf Aquitaine, SA, ADR................................. 45,900 2,260,575
Helmerich & Payne, Inc. ............................... 21,400 989,750
Kerr-McGee Corp. ...................................... 32,200 1,992,375
Murphy Oil Corp. ...................................... 24,900 1,170,300
Occidental Petroleum Corp. ............................ 65,400 1,610,475
Pennzoil Co. .......................................... 31,700 1,640,475
Phillips Petroleum Co. ................................ 58,800 2,403,450
Repsol S.A., ADR....................................... 14,300 582,725
Sun Co., Inc. ......................................... 14,500 378,812
Texaco Inc. ........................................... 23,200 2,540,400
USX-Marathon Group, Inc. .............................. 119,000 3,317,125
Valero Energy Corp. ................................... 18,000 654,750
YPF Sociedad Anonima, ADR.............................. 62,400 1,653,600
-----------
22,329,862
-----------
Paper & Forest Products 0.55%
Bowater, Inc. ......................................... 35,400 1,376,175
International Paper Co. ............................... 23,800 925,225
James River Corp. of Virginia.......................... 10,700 311,638
Pope & Talbot Inc. .................................... 13,400 184,250
Westvaco Corp. ........................................ 24,750 621,843
-----------
3,419,131
-----------
Retail Trade & Services 1.37%
American Stores Co. ................................... 53,000 2,358,500
Dayton Hudson Corp. ................................... 67,400 2,813,950
Mercantile Stores, Inc. ............................... 19,800 918,225
</TABLE>
6
<PAGE>
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
--------- -----------
<S> <C> <C>
Retail Trade & Services (Continued)
Ross Stores, Inc. .................................... 37,000 $ 938,875
Shopko Stores, Inc. .................................. 15,900 238,500
Supervalu, Inc. ...................................... 43,300 1,288,175
-----------
8,556,225
-----------
Technology 1.61%
Applied Materials, Inc. .............................. 11,600(a) 537,950
Dell Computer Corp. .................................. 20,400(a) 1,379,550
Digital Equipment Corp. .............................. 32,300(a) 884,213
Harris Corp. ......................................... 36,700 2,821,312
Intel Corp. .......................................... 12,800 1,780,800
Microsoft Corp. ...................................... 21,900(a) 2,007,956
Philips Electronic N.V. ADR........................... 15,000 667,500
-----------
10,079,281
-----------
Telecommunications 1.18%
BCE, Inc. ............................................ 28,400 1,306,400
NYNEX Corp. .......................................... 13,300 606,813
Telefonica de Espana S.A., ADS........................ 36,000 2,583,000
Telefonos de Mexico S.A., ADS......................... 74,700 2,875,950
-----------
7,372,163
-----------
Tobacco 0.42%
RJR Nabisco Holdings Corp. ........................... 81,100 2,615,475
-----------
Transportation 1.08%
Alexander & Baldwin Co. .............................. 4,600 119,025
APL Ltd. ............................................. 19,800 415,800
British Airways Plc, ADR.............................. 8,100 851,512
Canadian Pacific Ltd. ................................ 71,200 1,708,800
Consolidated Freightways, Inc. ....................... 41,500 1,125,688
CSX Corp. ............................................ 42,000 1,953,000
J.B. Hunt Transport Services, Inc. ................... 14,300 198,412
KLM Royal Dutch Airlines, N.V. ADR.................... 12,700 363,538
-----------
6,735,775
-----------
Utilities--Electric & Natural Gas 4.30%
Allegheny Power Systems, Inc. ........................ 17,000 503,625
American Electric Power Co., Inc. .................... 55,100 2,272,875
Baltimore Gas & Electric Co. ......................... 35,200 941,600
CMS Energy Corp. ..................................... 32,000 1,052,000
</TABLE>
7
<PAGE>
THE ZWEIG TOTAL RETURN FUND, INC.
STATEMENT OF NET ASSETS--(CONTINUED)
MARCH 31, 1997 (UNAUDITED)
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
--------- ------------
<S> <C> <C>
Utilities--Electric & Natural Gas (Continued)
DQE, Inc. ............................................ 37,250 $ 1,033,687
DTE Energy Co. ....................................... 18,800 505,250
Edison International, Inc. ........................... 88,900 2,000,250
Entergy Corp. ........................................ 44,300 1,085,350
GPU, Inc. ............................................ 49,100 1,577,338
Illinova Corp. ....................................... 48,400 1,107,150
Montana Power Co. .................................... 19,700 423,550
New York State Gas & Electric Corp. .................. 45,700 988,262
Ohio Edison Co. ...................................... 28,800 608,400
PacifiCorp. .......................................... 28,600 611,325
Pacific Gas & Electric Corp. ......................... 38,900 914,150
Pinnacle West Capital Corp. .......................... 36,100 1,087,513
PP & L Resources, Inc. ............................... 15,700 317,925
Public Service Enterprises Group, Inc. ............... 69,500 1,824,375
Questar Corp. ........................................ 13,200 473,550
Sierra Pacific Resources, Inc. ....................... 9,300 273,187
Sonat, Inc. .......................................... 37,200 2,027,400
Texas Utilities Co. .................................. 55,700 1,907,725
Transcanada Pipeline Ltd. ............................ 46,700 846,438
Unicom Corp. ......................................... 67,500 1,316,250
United Illuminating Co. .............................. 6,500 169,812
UtiliCorp United Inc. ................................ 5,300 135,150
Western Resources, Inc. .............................. 29,500 885,000
------------
26,889,137
------------
Total Common Stocks................................. $160,287,957
------------
</TABLE>
8
<PAGE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
----------- ------------
<S> <C> <C>
United States Government & Agency Obligations 34.67%
Federal National Mortgage Association, 6.85%,
4/5/2004.......................................... $10,385,000 $ 10,287,423
United States Treasury Bills, 5.025%, 5/01/1997.... 2,000,000 1,991,625
United States Treasury Bonds, 10.750%, 5/15/2003... 15,000,000 17,892,180
United States Treasury Bonds, 7.25%, 8/15/2022..... 4,000,000 4,003,748
United States Treasury Bonds, 7.50%, 11/15/2024.... 10,400,000 10,744,500
United States Treasury Notes, 6.25%, 8/31/2000..... 13,500,000 13,339,687
United States Treasury Notes, 5.625%, 11/30/2000... 19,745,000 19,072,426
United States Treasury Notes, 7.50%, 2/15/2005..... 16,300,000 16,860,313
United States Treasury Notes, 6.50%, 5/15/2005..... 7,600,000 7,395,750
United States Treasury Notes, 6.875%, 5/15/2006.... 30,100,000 29,930,688
United States Treasury Notes, 6.50%, 10/15/2006.... 88,200,000 85,416,143
------------
Total United States Government & Agency Obliga-
tions........................................... 216,934,483
------------
Short-Term Investments 38.83%
AIG Credit Corp., 5.25%, 4/14/97................... 25,000,000 24,952,604
Allied Signal, Inc., 5.32%, 4/2/97................. 22,500,000 22,496,675
Allstate Corp., 5.40%, 4/8/97...................... 14,000,000 13,985,300
Bell Atlantic Network Funding Inc., 5.30%, 4/4/97.. 8,200,000 8,196,379
Bell Network Funding, 5.48%, 4/3/97................ 15,100,000 15,095,403
Dow Chemical Co., 6.50%, 4/01/97................... 25,000,000 25,000,000
Ford Motor Credit Corp., 5.65%, 4/9/97............. 20,000,000 19,974,889
General Re Corp., 5.72%, 4/1/97.................... 10,000,000 10,000,000
Goldman Sachs Co., 5.30%, 4/3/97................... 16,600,000 16,595,112
Lucent Technology Corp., 5.28%, 4/7/97............. 19,500,000 19,482,840
Merrill Lynch & Co. Inc., 5.38%, 4/4/97............ 18,700,000 18,691,616
Monsanto Co., 5.30%, 4/2/97........................ 15,750,000 15,747,681
Philip Morris Co., 6.0%, 4/2/97.................... 22,200,000 22,196,300
U. S. West Inc., 5.30%, 4/1/97..................... 10,600,000 10,600,000
------------
Total Short-Term Investments..................... 243,014,799
------------
Total Investments.................................... 99.11% 620,237,239
Cash and Other Assets, Less Liabilities.............. 0.89 5,590,273
----------- ------------
Net Assets (Equivalent to $8.09 per share based on 100.00% $625,827,512
77,336,092 shares of capital stock outstanding)..... =========== ============
</TABLE>
- --------
(a)Non-income producing security.
9
<PAGE>
THE ZWEIG TOTAL RETURN FUND, INC.
FINANCIAL HIGHLIGHTS
MARCH 31, 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............................ $638,767,568 $ 8.29
Net investment income........... $ 6,601,003 $ 0.09
Net realized and unrealized
losses on investments.......... (5,860,574) (0.08)
Dividends from net investment
income and distributions from
net long-term and short-term
capital gains.................. (16,187,354) (0.21)
Net asset value of shares issued
to shareholders for reinvest-
ment of dividends and distribu-
tions.......................... 2,506,869 0.00
----------- -------
Net decrease in net assets/net
asset value................... (12,940,056) (0.20)
------------ -------
End of period: March 31, 1997.... $625,827,512 $ 8.09
============ =======
</TABLE>
10
<PAGE>
KEY INFORMATION
1-800-331-1710 FIRST DATA INVESTOR SERVICES GROUP, INC.:
For questions regarding shareholder accountsP.O. Box 1376 Bos-
ton, MA 02104
(212) 486-3122 THE ZWEIG TOTAL RETURN FUND HOT LINE:
For updates on net asset value, share price, major industry
groups and other key information
1-800-272-2700 ZWEIG SHAREHOLDER RELATIONS: For general information and
literature
REINVESTMENT PLAN
Many of you have questions
about our reinvestment plan. If
you want to take advantage of
this plan and your shares are
held in "Street Name," we urge
you to consult your broker as
soon as possible to determine if
you must change registration 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
from their net asset value.
11
