HARTFORD, Conn., Dec. 19, 2016 /PRNewswire/ -- The Zweig
Fund, Inc. (NYSE: ZF), which recently announced that its board of
directors declared a regular quarterly distribution of $0.361 per share payable January 10, 2017, is providing an estimate of an
additional long-term capital gain distribution of $0.95 to $1.15.
|
Range of
Distribution
|
Ex-Date
|
Record
Date
|
Payable
Date
|
|
$1.31 -
$1.51
|
January 5,
2017
|
December 29,
2016
|
January 10,
2017
|
The fund intends to distribute $1.31 to
$1.51, which will be equal to its regularly quarterly
distribution amount of $0.361 per
share and all available net investment income and net short and
long term capital gains, in accordance with requirements under the
Internal Revenue Code of 1986, as amended. The amount of the exact
supplemental distribution over the $0.361 per share will be announced on
January 3, 2017.
The fund has an outstanding tender offer announced on
November 25, 2016; all shareholders
will be entitled to the distribution payable on January 10, 2017.
Distributions may represent earnings from net investment income,
capital gains, or if necessary, return of capital. In addition,
distributions may include net realized long-term capital gains as
permitted by the Investment Company Act of 1940. There is no
guarantee that the fund will realize capital gains in any given
year. Distributions are subject to re-characterization for tax
purposes after the end of the fiscal year. All shareholders with
taxable accounts will receive written notification regarding the
components and tax treatment for distributions via Form 1099-DIV.
Distributions from the fund are generally subject to federal income
taxes.
About the Fund
The Zweig Fund, Inc. is a diversified closed-end fund whose
investment objective is capital appreciation, with current income
as a secondary objective. It currently targets an allocation of 60
percent of its assets in equity securities and 40 percent fixed
income. The equity allocation invests globally in owners/operators
of infrastructure in the communications, utility, energy, and
transportation industries. The fixed income portion utilizes a
time-tested approach of active sector rotation, extensive credit
research and disciplined risk management designed to capitalize on
opportunities across undervalued areas of the fixed income markets.
The fund also pursues an options income strategy whereby it
purchases and sells out-of-the money puts and calls, creating an
options spread.
Virtus Investment Advisers has been the investment adviser to
the fund and Duff & Phelps Investment Management Co. and
Newfleet Asset Management have been subadvisers since September 7, 2016. Performance and
characteristics prior to that date were attained by the previous
adviser using a different investment strategy.
For more information on the fund, contact shareholder services
at (866) 270-7788, by email at closedendfunds@virtus.com, or
through the closed end fund section on the web at
www.virtus.com.
Fund Risks
An investment in the fund is subject to risk. The fund's shares
may be worth less than what an investor paid for them when they are
sold. The options strategy may not be successful in its objective
of increasing distributable income while limiting the risk of loss
and could result in increased losses for investors.
About Duff & Phelps Investment Management Co.
Duff & Phelps Investment Management is a leader in investing
in real estate investment trusts, infrastructure, and utility
companies and in developing and managing focused investment
strategies for specialized clients. For more information about Duff
& Phelps, visit www.dpimc.com.
About Newfleet Asset Management
Newfleet Asset Management provides comprehensive fixed income
portfolio management in multiple strategies. Newfleet leverages the
knowledge and skill of a team of investment professionals with
expertise in every sector of the bond market, including evolving,
specialized, and out-of-favor sectors. The team employs active
sector rotation and disciplined risk management to portfolio
construction, avoiding interest rate bets, and remaining duration
neutral to each strategy's stated benchmark.
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SOURCE The Zweig Fund, Inc.