[LOGO] Z
FOR IMMEDIATE RELEASE
FOR FURTHER INFORMATION:
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Zweig Funds Shareholder Services
(800) 272-2700
Patricia Baronowski
The Altman Group
(212) 400-2604
THE ZWEIG FUND, INC. DISCLOSES SOURCES OF DISTRIBUTION
- SECTION 19A NOTICE
NEW YORK, April 6, 2010 - The Board of Directors of The Zweig Fund, Inc. (NYSE:
ZF) declared a distribution of $0.096 per share to shareholders of record on
April 8, 2010, payable April 26, 2010. The Fund has a Managed Distribution Plan
to pay 10 percent of the Fund's net asset value ("NAV") on an annualized basis.
The Board believes that regular, fixed cash payouts will enhance shareholder
value and serve the long-term interests of shareholders.
The following is a required Section 19A notice:
You should not draw any conclusions about the Fund's investment performance
from the amount of this distribution or from the terms of the Fund's Managed
Distribution Plan.
This notice discloses information on the sources of the distribution as
required by SEC Rule 19(a) of the Investment Company Act of 1940 and the Fund's
SEC Exemptive Order under Section 19(b) as follows:
DISTRIBUTION ESTIMATES APRIL 2010 (QTD) YEAR-TO-DATE (YTD) /(1)/
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Percentage Percentage
Per Share of Current Per Share of Current
Amount Distribution Amount Distribution
(Sources) --------- ------------ --------- ------------
Net Investment Income....................... $0.003 2.8% $0.003 2.8%
Net Realized Short-Term Capital Gains....... -- 0.0% -- 0.0%
Net Realized Long-Term Capital Gains........ -- 0.0% -- 0.0%
Return of Capital (or other Capital Source). 0.093 97.2% 0093 97.2%
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TOTAL DISTRIBUTION $0.096 100.0% $0.096 100.0%
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(1) YTD February 1, 2010 to January 10, 2011. (The distribution paid on
January 11, 2009 was reportable for tax on Form 1099 in 2009)
The Fund estimates that it has distributed more than its income and net
realized capital gains; therefore, a portion of your distribution may be a
return of capital. A return of capital may occur, for example, when some or all
of the money that you invested in the Fund is paid back to you. A return of
capital distribution does not necessarily reflect the Fund's investment
performance and should not be confused with "yield" or "income."
The amounts and sources of distributions reported in this Notice are only
estimates and are not being provided for tax reporting purposes. The actual
amounts and sources of the amounts for tax reporting purposes will depend upon
the Fund's investment experience during the remainder of its fiscal year and
may be subject to changes based on tax regulations. The Fund will send you a
Form 1099-DIV for the calendar year that will tell you how to report these
distributions for federal income tax purposes.
Information regarding the Fund's performance and distribution rates is set
forth below. Please note that all performance figures are based on the Fund's
NAV and not the market price of the Fund's shares. Performance figures are not
meant to represent individual shareholder performance.
Average Annual Total Return on NAV for the 5-year period ended March 31, 2010 /(2)/. 3.23%
Current Fiscal YTD Annualized Distribution Rate /(3)/............................... 9.90%
YTD Cumulative Total Return on NAV /(4)/............................................ 2.80%
YTD Cumulative Distribution Rate /(5)/.............................................. 2.47%
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(2)Average Annual Total Return on NAV is the annual compound return for the
five year period. It reflects the change in the Fund's NAV and reinvestment
of all distributions.
(3)Current Fiscal YTD Annualized Distribution Rate is the Cumulative
Distribution Rate annualized as a percentage of the Fund's NAV as of
March 31, 2010.
(4)YTD Cumulative Total Return on NAV is the percentage change in the Fund's
NAV from January 1, 2010 to March 31, 2010, including distributions paid and
assuming reinvestment of those distributions.
(5)YTD Cumulative Distribution Rate is the dollar value of distributions from
January 1, 2010 to March 31, 2010 as a percentage of the Fund's NAV as of
March 31, 2010.
The Zweig Fund, Inc. is a closed-end fund with an investment objective of
increasing capital primarily through investment in equity securities consistent
with the preservation of capital and reduction of risk as determined by the
fund's investment adviser. The Zweig closed-end funds are advised by Zweig
Advisers LLC. For more information on the Fund, please contact Shareholder
Services at 800.272.2700 or visit us on the web at www.virtus.com.
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ZF Cusip: 989834106
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