-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, Rs5q/5Kd0Re/1DRDqxyBWtygo3D47qJrmmrmCGiIZ7/wPvyXp/vOL4EoUyuVxxck pXm50GOg1NrNm5qMGr8F9A== 0000940180-97-000489.txt : 19970521 0000940180-97-000489.hdr.sgml : 19970521 ACCESSION NUMBER: 0000940180-97-000489 CONFORMED SUBMISSION TYPE: N-30B-2 PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19970331 FILED AS OF DATE: 19970520 SROS: NYSE SROS: PSE FILER: COMPANY DATA: COMPANY CONFORMED NAME: ZWEIG TOTAL RETURN FUND INC CENTRAL INDEX KEY: 0000836412 STANDARD INDUSTRIAL CLASSIFICATION: [] IRS NUMBER: 133474242 STATE OF INCORPORATION: MD FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: N-30B-2 SEC ACT: 1940 Act SEC FILE NUMBER: 811-05620 FILM NUMBER: 97612075 BUSINESS ADDRESS: STREET 1: 5 HANOVER SQUARE CITY: NEW YORK STATE: NY ZIP: 10004 BUSINESS PHONE: 2125100360 MAIL ADDRESS: STREET 1: 5 HANOVER SQUARE CITY: NEW YORK STATE: NY ZIP: 10004 N-30B-2 1 QUARTERLY REPORT 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 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 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 THE ZWEIG TOTAL RETURN FUND, INC. STATEMENT OF NET ASSETS MARCH 31, 1997 (UNAUDITED)
NUMBER OF SHARES VALUE --------- ---------- 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 ----------
3 THE ZWEIG TOTAL RETURN FUND, INC. STATEMENT OF NET ASSETS--(CONTINUED) MARCH 31, 1997 (UNAUDITED)
NUMBER OF SHARES VALUE --------- ----------- 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
4
NUMBER OF SHARES VALUE --------- ----------- 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 -----------
5 THE ZWEIG TOTAL RETURN FUND, INC. STATEMENT OF NET ASSETS--(CONTINUED) MARCH 31, 1997 (UNAUDITED)
NUMBER OF SHARES VALUE --------- ----------- 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
6
NUMBER OF SHARES VALUE --------- ----------- 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
7 THE ZWEIG TOTAL RETURN FUND, INC. STATEMENT OF NET ASSETS--(CONTINUED) MARCH 31, 1997 (UNAUDITED)
NUMBER OF SHARES VALUE --------- ------------ 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 ------------
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PRINCIPAL AMOUNT VALUE ----------- ------------ 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)..... =========== ============
- -------- (a)Non-income producing security. 9 THE ZWEIG TOTAL RETURN FUND, INC. FINANCIAL HIGHLIGHTS MARCH 31, 1997 (UNAUDITED)
NET ASSET VALUE TOTAL NET ASSETS PER SHARE ------------------------- ---------------- 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 ============ =======
10 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 -----END PRIVACY-ENHANCED MESSAGE-----