Edgar Filing: ZWEIG FUND INC /MD/

ZWEIG FUND INC

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-Q

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED

MANAGEMENT INVESTMENT COMPANY

Investment Company Act file number 811-04739

The Zweig Fund, Inc.

(Exact name of registrant as specified in charter)

101 Munson Street

Greenfield, MA 01301-9683

(Address of principal executive offices) (Zip code)

William Renahan, Esq.

Vice President, Chief Legal Officer and Secretary for Registrant

100 Pearl Street

Hartford, CT 06103-4506

(Name and address of agent for service)

Registrant’s telephone number, including area code: (800) 272-2700

Date of fiscal year end: December 31

Date of reporting period: September 30, 2016

Form N-Q is to be used by management investment companies, other than small business investment companies registered on Form N-5 (§§ 239.24 and 274.5 of this chapter), to file reports with the Commission, not later than 60 days after the close of the first and third fiscal quarters, pursuant to rule 30b1-5 under the Investment Company Act of 1940 (17 CFR 270.30b1-5). The Commission may use the information provided on Form N-Q in its regulatory, disclosure review, inspection, and policymaking roles.

A registrant is required to disclose the information specified by Form N-Q, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-Q unless the Form displays a currently valid Office of Management and Budget (“OMB”) control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to the Secretary, Securities and Exchange Commission, 450 Fifth Street, NW, Washington, DC 20549-0609. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. § 3507.

Item 1. Schedule of Investments.

The Schedule(s) of Investments is attached herewith.

THE ZWEIG FUND, INC.

SCHEDULE OF INVESTMENTS

SEPTEMBER 30, 2016 (Unaudited)

($ reported in thousands)


	Par Value			Value

FOREIGN GOVERNMENT SECURITIES—5.0%
Argentine Republic
144A 7.500%, 4/22/26⁽³⁾	$	650		$	734
8.280%, 12/31/33		757			873
144A 7.125%, 7/6/36⁽³⁾		600			637
Bolivarian Republic of Venezuela
RegS 8.250%, 10/13/24⁽⁴⁾		510			253
RegS 7.650%, 4/21/25⁽⁴⁾		1,050			509
9.375%, 1/13/34		430			225
Federative Republic of Brazil
12.500%, 1/5/22		600	^BRL		204
8.500%, 1/5/24		950	^BRL		270
5.625%, 1/7/41⁽⁹⁾		335			335
Kingdom of Morocco 144A 5.500%, 12/11/42⁽³⁾		400			457
Mongolia 144A 5.125%, 12/5/22⁽³⁾		435			384
Provincia de Buenos Aires 144A 9.125%, 3/16/24⁽³⁾		180	^EUR		202
Republic of Azerbaijan 4.750%, 3/13/23		475			469
Republic of Colombia
4.375%, 3/21/23		553,000	^COP		172
9.850%, 6/28/27		1,050,000	^COP		444
Republic of Costa Rica 144A 7.000%, 4/4/44⁽³⁾		440			471


	Par Value			Value
FOREIGN GOVERNMENT SECURITIES (continued)
Republic of Cote d’Ivoire 144A 6.375%, 3/3/28⁽³⁾	$	440		$	461
Republic of El Salvador 144A 6.375%, 1/18/27⁽³⁾		200			202
Republic of South Africa
Series R203, 8.250%, 9/15/17		2,665	^ZAR		196
Series R208, 6.750%, 3/31/21		4,635	^ZAR		322
Republic of Turkey
6.250%, 9/26/22⁽⁹⁾		425			467
4.875%, 10/9/26⁽⁹⁾		735			750
4.875%, 4/16/43⁽⁹⁾		435			406
State of Qatar 144A 3.250%, 6/2/26⁽³⁾		350			356
Sultanate of Oman 144A 4.750%, 6/15/26⁽³⁾		585			587
Ukraine 144A 7.750%, 9/1/26⁽³⁾		465			440
United Mexican States
Series M, 6.500%, 6/9/22		18,295	^MXN		974
4.750%, 3/8/44		270			281
TOTAL FOREIGN GOVERNMENT SECURITIES (Identified Cost $11,967)					12,081

See the Notes to Schedule of Investments

THE ZWEIG FUND, INC.

SCHEDULE OF INVESTMENTS

SEPTEMBER 30, 2016 (Unaudited)

($ reported in thousands)


	Par Value		Value
MORTGAGE-BACKED SECURITIES—9.4%
Agency—6.8%
FHLMC 3.000%, 11/1/26⁽⁹⁾	$	6,098	$	6,408
FNMA
3.500%, 1/1/46⁽⁹⁾		4,689		4,948
3.000%, 9/1/46⁽⁹⁾		5,000		5,203

				16,559

Non-Agency—2.6%
Agate Bay Mortgage Trust 13-1, A1 144A 3.500%, 7/25/43⁽²⁾⁽³⁾		328		337
Citigroup Commercial Mortgage Trust 16-S, A 2.228%, 9/10/31		440		440
Freddie Mac Structured Agency Credit Risk Debt Notes 16-DNA2, M2 2.725%, 10/25/28⁽²⁾		400		406
Goldman Sachs Mortgage Securities Trust 07-GG10, A1A 5.988%, 8/10/45⁽²⁾		602		612
JPMorgan Chase Commercial Mortgage Securities Trust
06-LDP9, AM 5.372%, 5/15/47		510		512
14-C22, A4 3.801%, 9/15/47		850		928
JPMorgan Chase Mortgage Trust
16-1, M2 144A 3.750%, 4/25/45⁽²⁾⁽³⁾		288		298
16-2, M2 144A 3.750%, 12/25/45⁽²⁾⁽³⁾		430		445
JPMorgan Mortgage Trust
14-OAK4, A16 144A 4.000%, 9/25/44⁽²⁾⁽³⁾		255		262
16-3, A3 144A 3.500%, 10/25/46⁽²⁾⁽³⁾		630		654
Morgan Stanley Capital Barclays Bank Trust 16-MART, A 144A 2.200%, 9/13/31⁽³⁾		225		225
New Residential Mortgage Loan Trust
14-1A, A 144A 3.750%, 1/25/54⁽²⁾⁽³⁾		203		211


	Par Value		Value
Non-Agency (continued)
16-3A, A1 144A 3.750%, 9/25/56⁽²⁾⁽³⁾	$	245	$	255
Towd Point Mortgage Trust 16-4, A1 144A 2.250%, 7/25/56⁽²⁾⁽³⁾		630		633

				6,218
TOTAL MORTGAGE-BACKED SECURITIES (Identified Cost $22,773)				22,777
ASSET-BACKED SECURITIES—2.2%
Applebee’s LLC 14-1, A2 144A 4.277%, 9/5/44⁽³⁾		300		305
BCC Funding XIII LLC 144A, Series 16-1, Class D 4.780%, 8/22/22⁽³⁾		460		460
Capital Auto Receivables Asset Trust 16-3, C 2.350%, 9/20/21		700		700
Centre Point Funding LLC 12-2A,1 144A 2.610%, 8/20/21⁽³⁾		479		475
Conn Funding II LP 16-B, A 144A 3.730%, 10/15/18⁽³⁾		380		380
DT Auto Owner Trust 16-4A C, 144A 2.740%, 10/17/22⁽³⁾		505		505
First Investors Auto Owner Trust 16-2A, C 144A 2.530%, 7/15/22⁽³⁾		760		761
Navistar Financial Dealer Note Master Owner Trust II 16-1, B 144A 2.546%, 9/27/21⁽²⁾⁽³⁾		505		509
Trip Rail Master Funding LLC 14-1A, A1 144A 2.863%, 4/15/44⁽³⁾		377		375
United Auto Credit Securitization Trust 16-2, C 144A 2.480%, 3/10/20⁽³⁾		460		460
VSE VOI Mortgage LLC 16-A, A 144A 2.540%, 7/20/33⁽³⁾		460		462
TOTAL ASSET-BACKED SECURITIES (Identified Cost $5,385)				5,392

See the Notes to Schedule of Investments

THE ZWEIG FUND, INC.

SCHEDULE OF INVESTMENTS

SEPTEMBER 30, 2016 (Unaudited)

($ reported in thousands)


	Par Value		Value
CORPORATE BONDS AND NOTES—29.3%
Consumer Discretionary—4.5%
Allison Transmission, Inc. 144A 5.000%, 10/1/24⁽³⁾	$	80	$	82
Aramark Services, Inc. 144A 4.750%, 6/1/26⁽³⁾		200		201
Beazer Homes USA, Inc. 144A 8.750%, 3/15/22⁽³⁾		90		95
Boyd Gaming Corp. 6.875%, 5/15/23		185		202
Caesars Entertainment Resort Properties LLC 8.000%, 10/1/20		335		348
Caesars Growth Properties Holdings LLC 9.375%, 5/1/22		330		355
CCO Holdings LLC 144A 5.500%, 5/1/26⁽³⁾		185		194
Clear Channel Worldwide Holdings, Inc. Series B 7.625%, 3/15/20⁽⁹⁾		500		498
Columbus Cable Barbados Ltd. Series B, 144A 7.375%, 3/30/21⁽³⁾		425		453
Dana Financing Luxembourg S.a.r.l. 144A 6.500%, 6/1/26⁽³⁾		110		116
DR Horton, Inc. 4.750%, 2/15/23		475		515
Grupo Televisa SAB 4.625%, 1/30/26⁽⁹⁾		430		460
Hanesbrands, Inc.
144A 4.625%, 5/15/24⁽³⁾		65		67
144A 4.875%, 5/15/26⁽³⁾		120		123
International Game Technology plc 144A 6.250%, 2/15/22⁽³⁾⁽⁹⁾		300		321
Landry’s, Inc. 144A 6.750%, 10/15/24⁽³⁾		95		97
Lennar Corp 4.750%, 5/30/25		375		384
Meritor, Inc. 6.750%, 6/15/21		230		234
MGM Growth Properties Operating Partnership LP (MGP Finance Co-Issuer, Inc.)
144A 5.625%, 5/1/24⁽³⁾		65		71
144A 4.500%, 9/1/26⁽³⁾		100		101


	Par Value		Value
Consumer Discretionary (continued)
MGM Resorts International 6.000%, 3/15/23	$	210	$	228
Mohegan Tribal Gaming Authority 9.750%, 9/1/21⁽⁹⁾		300		324
MPG Holdco I, Inc. 7.375%, 10/15/22⁽⁹⁾		385		397
Newell Brands, Inc. 144A 5.000%, 11/15/23⁽³⁾		55		59
PetSmart, Inc. 144A 7.125%, 3/15/23⁽³⁾		350		368
QVC, Inc. 5.125%, 7/2/22⁽⁹⁾		270		286
Scientific Games International, Inc.
6.625%, 5/15/21		255		195
144A 7.000%, 1/1/22⁽³⁾⁽⁹⁾		250		266
SFR (Numericable) Group S.A. 144A 6.000%, 5/15/22⁽³⁾⁽⁹⁾		480		491
Signet UK Finance plc 4.700%, 6/15/24⁽⁹⁾		400		385
Sirius XM Radio, Inc. 144A 5.375%, 7/15/26⁽³⁾⁽⁹⁾		445		458
Six Flags Entertainment Corp. 144A 4.875%, 7/31/24⁽³⁾⁽⁹⁾		305		309
TI Group Automotive Systems LLC 144A 8.750%, 7/15/23⁽³⁾		375		410
Toll Brothers Finance Corp.
5.625%, 1/15/24		75		80
4.875%, 11/15/25⁽⁹⁾		510		524
TRI Pointe Group, Inc. 5.875%, 6/15/24⁽⁹⁾		400		419
VTR Finance BV 144A 6.875%, 1/15/24⁽³⁾⁽⁹⁾		400		415
Ziggo Secured Finance BV 144A 5.500%, 1/15/27⁽³⁾⁽⁹⁾		335		335

				10,866

Consumer Staples—0.9%
Dole Food Co., Inc. 144A 7.250%, 5/1/19⁽³⁾		240		244
ESAL GmbH 144A 6.250%, 2/5/23⁽³⁾⁽⁹⁾		430		419

See the Notes to Schedule of Investments

THE ZWEIG FUND, INC.

SCHEDULE OF INVESTMENTS

SEPTEMBER 30, 2016 (Unaudited)

($ reported in thousands)


	Par Value		Value
Consumer Staples (continued)
Pilgrim’s Pride Corp. 144A 5.750%, 3/15/25⁽³⁾	$	165	$	171
Post Holdings, Inc. 144A 5.000%, 8/15/26⁽³⁾⁽⁹⁾		365		364
Rite Aid Corp. 144A 6.375%, 4/1/23⁽³⁾		110		119
Safeway, Inc. 7.250%, 2/1/31		230		230
Tops Holding LLC (Tops Markets II Corp.) 144A 8.000%, 6/15/22⁽³⁾⁽⁹⁾		415		376
US Foods, Inc. 144A 5.875%, 6/15/24⁽³⁾		75		78
Whole Foods Market, Inc. 144A 5.200%, 12/3/25⁽³⁾⁽⁹⁾		245		266

				2,267

Energy—6.2%
Alberta Energy Co., Ltd. 8.125%, 9/15/30⁽⁹⁾		165		195
Anadarko Petroleum Corp.
4.850%, 3/15/21		65		70
5.550%, 3/15/26		100		114
6.600%, 3/15/46⁽⁹⁾		220		269
Antero Resources Corp. 5.625%, 6/1/23		205		210
Archrock Partners LP 6.000%, 10/1/22⁽⁹⁾		340		317
Blue Racer Midstream LLC 144A 6.125%, 11/15/22⁽³⁾		145		142
Callon Petroleum Co. 144A 6.125%, 10/1/24⁽³⁾		115		119
Carrizo Oil & Gas, Inc. 6.250%, 4/15/23⁽⁹⁾		320		318
Cheniere Corpus Christi Holdings LLC 144A 7.000%, 6/30/24⁽³⁾⁽⁹⁾		360		391
Cimarex Energy Co. 4.375%, 6/1/24⁽⁹⁾		215		225
Concho Resources, Inc. 5.500%, 4/1/23		130		135
CONSOL Energy, Inc. 5.875%, 4/15/22⁽⁹⁾		285		264
Continental Resources, Inc.
5.000%, 9/15/22		250		250
4.500%, 4/15/23		140		135


	Par Value		Value
Energy (continued)
Crestwood Midstream Partners LP (Crestwood Midstream Finance Corp.) 6.250%, 4/1/23⁽⁹⁾	$	420	$	427
Ecopetrol S.A.
5.875%, 9/18/23⁽⁹⁾		315		340
5.375%, 6/26/26⁽⁹⁾		410		427
Encana Corp. 3.900%, 11/15/21⁽⁹⁾		150		150
Energy Transfer Equity LP 5.875%, 1/15/24⁽⁹⁾		410		427
EnLink Midstream Partners LP 4.850%, 7/15/26		45		45
EnQuest plc 144A 7.000%, 4/15/22⁽³⁾		450		236
Gazprom OAO (Gaz Capital S.A.) 144A 6.000%, 11/27/23^(3)(7)(9)		435		471
Gulfport Energy, Corp. 7.750%, 11/1/20		66		69
Helmerich & Payne International Drilling Co. 4.650%, 3/15/25⁽⁹⁾		240		253
KazMunayGas National Co. 144A 6.375%, 4/9/21⁽³⁾		425		470
Laredo Petroleum, Inc. 7.375%, 5/1/22⁽⁹⁾		275		286
Lukoil International Finance BV 144A 4.563%, 4/24/23⁽³⁾		425		440
MPLX LP 144A 4.875%, 12/1/24⁽³⁾⁽⁹⁾		595		616
Newfield Exploration Co. 5.375%, 1/1/26⁽⁹⁾		400		401
NGL Energy Partners LP 5.125%, 7/15/19⁽⁹⁾		276		261
Occidental Petroleum Corp. 4.400%, 4/15/46⁽⁹⁾		285		315
Parker Drilling Co. 7.500%, 8/1/20⁽⁹⁾		355		285
Parsley Energy LLC 144A 6.250%, 6/1/24⁽³⁾⁽⁹⁾		490		508
Petrobras Global Finance BV
5.375%, 1/27/21⁽⁹⁾		315		312
8.375%, 5/23/21		130		143
8.750%, 5/23/26⁽⁹⁾		400		443

See the Notes to Schedule of Investments

THE ZWEIG FUND, INC.

SCHEDULE OF INVESTMENTS

SEPTEMBER 30, 2016 (Unaudited)

($ reported in thousands)


	Par Value		Value
Energy (continued)
Petroleos de Venezuela S.A
RegS 8.500%, 11/2/17	$	210	$	182
144A 6.000%, 5/16/24⁽³⁾		525		225
Petroleos Mexicanos
6.000%, 3/5/20⁽⁹⁾		210		227
144A 6.875%, 8/4/26⁽³⁾⁽⁹⁾		400		451
6.500%, 6/2/41⁽⁹⁾		225		219
QEP Resources, Inc.
6.875%, 3/1/21		190		199
5.250%, 5/1/23		200		198
Regency Energy Partners LP
5.875%, 3/1/22		100		110
5.000%, 10/1/22		120		127
Rosneft Oil Co. 144A 4.199%, 3/6/22⁽³⁾⁽⁹⁾		440		443
Sabine Pass Liquefaction LLC 5.625%, 2/1/21⁽⁹⁾		290		308
SM Energy Co. 6.125%, 11/15/22		155		156
Southern Gas Corridor CJSC 144A 6.875%, 3/24/26⁽³⁾		300		337
Sunoco LP 144A 6.375%, 4/1/23⁽³⁾⁽⁹⁾		800		826
Transocean, Inc.
144A 9.000%, 7/15/23⁽³⁾		110		108
6.800%, 3/15/38		100		67
YPF S.A. 144A 8.500%, 3/23/21⁽³⁾		245		274

				14,936

Financials—6.4%
Allstate Corp. (The) 5.750%, 8/15/53^(2)(5)(9)		320		344
Ally Financial, Inc.
4.250%, 4/15/21		210		214
4.125%, 2/13/22		110		111
5.750%, 11/20/25⁽⁹⁾		350		367
Ares Capital Corp. 3.625%, 1/19/22		210		212
Australia & New Zealand Banking Group Ltd. 144A 4.400%, 5/19/26⁽³⁾⁽⁹⁾		400		425
Banco Bilbao Vizcaya Argentaria Bancomer S.A. 144A 6.500%, 3/10/21⁽³⁾⁽⁹⁾		500		546


	Par Value		Value
Financials (continued)
Banco de Credito del Peru
144A 4.250%, 4/1/23⁽³⁾⁽⁹⁾	$	220	$	236
144A 6.125%, 4/24/27^(2)(3)(9)		210		234
Banco Internacional del Peru SAA Interbank 144A 6.625%, 3/19/29^(2)(3)(9)		320		354
Banco Santander Chile 144A 3.875%, 9/20/22⁽³⁾⁽⁹⁾		340		361
Bancolombia S.A. 5.125%, 9/11/22⁽⁹⁾		360		375
Bank of America Corp. 4.450%, 3/3/26⁽⁹⁾		745		800
Bank of China Ltd. 144A 5.000%, 11/13/24⁽³⁾⁽⁹⁾		435		471
Barclays plc 3.200%, 8/10/21		500		503
Capital One Financial Corp. 3.750%, 7/28/26⁽⁹⁾		365		367
Citigroup, Inc. 4.600%, 3/9/26⁽⁹⁾		545		582
Compass Bank 3.875%, 4/10/25⁽⁹⁾		425		416
Discover Financial Services 3.950%, 11/6/24		600		614
Drawbridge Special Opportunities Fund LP 144A 5.000%, 8/1/21⁽³⁾⁽⁹⁾		350		336
Eurasian Development Bank 144A 4.767%, 9/20/22⁽³⁾		440		462
General Motors Financial Co., Inc. 3.700%, 5/9/23		400		408
GrupoSura Finance S.A. 144A 5.500%, 4/29/26⁽³⁾⁽⁹⁾		275		292
Guanay Finance Ltd. 144A 6.000%, 12/15/20⁽³⁾		453		462
ICAHN Enterprises LP
6.000%, 8/1/20		150		151
5.875%, 2/1/22		250		241
ICICI Bank Ltd. 144A 4.000%, 3/18/26⁽³⁾⁽⁹⁾		300		311
iStar Financial, Inc.
4.875%, 7/1/18		160		161
5.000%, 7/1/19		225		225
Kazakhstan Temir Zholy Finance BV 144A 6.950%, 7/10/42⁽³⁾		430		469

See the Notes to Schedule of Investments

THE ZWEIG FUND, INC.

SCHEDULE OF INVESTMENTS

SEPTEMBER 30, 2016 (Unaudited)

($ reported in thousands)


	Par Value		Value
Financials (continued)
Leucadia National Corp. 5.500%, 10/18/23⁽⁹⁾	$	240	$	252
Manulife Financial Corp. 4.150%, 3/4/26⁽⁹⁾		340		372
Metlife, Inc. 3.600%, 11/13/25		350		369
Morgan Stanley 4.350%, 9/8/26⁽⁹⁾		210		224
Navient Corp. 7.250%, 9/25/23		80		80
OM Asset Management plc 4.800%, 7/27/26⁽⁹⁾		365		366
PKO Finance AB 144A 4.630%, 9/26/22⁽³⁾⁽⁷⁾		435		470
Prudential Financial, Inc.
5.875%, 9/15/42⁽²⁾⁽⁹⁾		470		519
5.625%, 6/15/43⁽²⁾⁽⁹⁾		165		178
Springleaf Finance Corp. 5.250%, 12/15/19		205		210
Toronto-Dominion Bank (The) 3.625%, 9/15/31⁽²⁾		130		130
Trinity Acquisition plc 4.400%, 3/15/26⁽⁹⁾		350		367
Turkiye Garanti Bankasi AS 144A 5.250%, 9/13/22⁽³⁾⁽⁹⁾		400		404
Voya Financial, Inc. 5.650%, 5/15/53⁽²⁾⁽⁹⁾		570		571
Woodside Finance Ltd. 144A 3.700%, 9/15/26⁽³⁾		60		60

				15,622

Health Care—2.1%
Alere, Inc. 6.500%, 6/15/20⁽⁹⁾		260		261
Community Health Systems, Inc. 6.875%, 2/1/22		260		225
Crimson Merger Sub, Inc. (Ortho-Clinical Diagnostics S.A.) 144A 6.625%, 5/15/22⁽³⁾⁽⁹⁾		325		288
Double Eagle Acquisition Sub, Inc. 144A 7.500%, 10/1/24⁽³⁾		180		184
Endo Finance LLC 144A 6.000%, 7/15/23⁽³⁾⁽⁹⁾		355		325


	Par Value		Value
Health Care (continued)
HCA, Inc.
5.375%, 2/1/25⁽⁹⁾	$	440	$	455
5.250%, 6/15/26		130		138
MEDNAX, Inc. 144A 5.250%, 12/1/23⁽³⁾⁽⁹⁾		175		184
Quintiles Transnational Corp. 144A 4.875%, 5/15/23⁽³⁾		185		191
Shire Acquisitions Investments Ireland DAC 3.200%, 9/23/26⁽⁹⁾		385		386
Surgery Center Holdings, Inc. 144A 8.875%, 4/15/21⁽³⁾⁽⁹⁾		290		310
Surgical Care Affiliates, Inc. 144A 6.000%, 4/1/23⁽³⁾⁽⁹⁾		415		438
Teleflex, Inc. 4.875%, 6/1/26		185		192
Tenet Healthcare Corp.
5.500%, 3/1/19		245		242
8.125%, 4/1/22⁽⁹⁾		310		312
Teva Pharmaceutical Finance BV 4.100%, 10/1/46⁽⁹⁾		225		224
Universal Health Services, Inc.
144A 4.750%, 8/1/22⁽³⁾		75		77
144A 5.000%, 6/1/26⁽³⁾⁽⁹⁾		165		172
Valeant Pharmaceuticals International, Inc.
144A 6.375%, 10/15/20⁽³⁾		165		155
144A 7.500%, 7/15/21⁽³⁾		50		49
144A 5.625%, 12/1/21⁽³⁾		45		40
144A 5.875%, 5/15/23⁽³⁾		210		183

				5,031

Industrials—1.8%
ADT Corp. (The) 6.250%, 10/15/21⁽⁹⁾		320		350
AMN Healthcare, Inc. 144A 5.125%, 10/1/24⁽³⁾		55		56
Bombardier, Inc. 144A 6.125%, 1/15/23⁽³⁾⁽⁹⁾		315		281
Builders FirstSource, Inc. 144A 10.750%, 8/15/23⁽³⁾		115		132
Carpenter Technology Corp. 4.450%, 3/1/23⁽⁹⁾		350		346

See the Notes to Schedule of Investments

THE ZWEIG FUND, INC.

SCHEDULE OF INVESTMENTS

SEPTEMBER 30, 2016 (Unaudited)

($ reported in thousands)


	Par Value		Value
Industrials (continued)
DP World Ltd. 144A 6.850%, 7/2/37⁽³⁾	$	210	$	243
Harland Clarke Holdings Corp. 144A 6.875%, 3/1/20⁽³⁾⁽⁹⁾		420		403
Hawaiian Airlines Pass-Through Certificates 13-1B, 4.950%, 1/15/22		431		431
Masco Corp.
5.950%, 3/15/22⁽⁹⁾		300		342
4.450%, 4/1/25		130		138
Owens Corning 3.400%, 8/15/26⁽⁹⁾		450		452
Pelabuhan Indonesia II PT 144A 4.250%, 5/5/25⁽³⁾⁽⁹⁾		435		444
Prime Security Services Borrower LLC (Prime Finance, Inc.) 144A 9.250%, 5/15/23⁽³⁾		270		295
Standard Industries, Inc. 144A 5.500%, 2/15/23⁽³⁾		110		115
TransDigm, Inc.
6.000%, 7/15/22		280		297
6.500%, 5/15/25⁽⁹⁾		120		126

				4,451

Information Technology—0.9%
Diamond 1 Finance Corp. (Diamond 2 Finance Corp.)
144A 5.450%, 6/15/23⁽³⁾		75		80
144A 7.125%, 6/15/24⁽³⁾		75		83
144A 6.020%, 6/15/26⁽³⁾		75		82
144A 8.100%, 7/15/36⁽³⁾		65		77
144A 8.350%, 7/15/46⁽³⁾		80		96
Hewlett Packard Enterprise Co. 144A 4.900%, 10/15/25⁽³⁾⁽⁹⁾		200		214
IMS Health, Inc. 5.000%, 10/15/26⁽³⁾		200		208
Infor US, Inc. 6.500%, 5/15/22		215		219
NXP BV (NXP Funding LLC)
144A 4.125%, 6/1/21⁽³⁾⁽⁹⁾		425		455
144A 4.625%, 6/1/23⁽³⁾⁽⁹⁾		425		466
WESCO Distribution, Inc. 144A 5.375%, 6/15/24⁽³⁾		200		201

				2,181


	Par Value		Value
Materials—3.3%
Alpek SAB de C.V. 144A 5.375%, 8/8/23⁽³⁾⁽⁹⁾	$	495	$	530
ArcelorMittal 6.125%, 6/1/25⁽⁹⁾		400		438
Ardagh Packaging Finance plc 144A 7.250%, 5/15/24⁽³⁾⁽⁹⁾		400		429
Berry Plastics Corp. 5.125%, 7/15/23⁽⁹⁾		375		383
BHP Billiton Finance USA Ltd. 144A 6.750%, 10/19/75^(2)(3)(5)(9)		200		227
BlueScope Steel Finance Ltd. 144A 6.500%, 5/15/21⁽³⁾⁽⁹⁾		305		323
Boise Cascade Co. 144A 5.625%, 9/1/24⁽³⁾⁽⁹⁾		300		306
Cascades, Inc. 144A 5.500%, 7/15/22⁽³⁾⁽⁹⁾		500		511
Cemex SAB de C.V. 144A 7.250%, 1/15/21⁽³⁾⁽⁹⁾		400		427
Fortescue Metals Group (FMG) Resources August 2006 Pty Ltd. 144A 9.750%, 3/1/22⁽³⁾		170		198
Freeport-McMoRan Copper & Gold, Inc.
3.550%, 3/1/22		120		110
3.875%, 3/15/23		185		168
Gerdau Holdings, Inc. 144A 7.000%, 1/20/20⁽³⁾⁽⁹⁾		300		323
Graphic Packaging International, Inc. 4.125%, 8/15/24⁽⁹⁾		355		358
INEOS Group Holdings S.A. 144A 5.625%, 8/1/24⁽³⁾⁽⁹⁾		500		492
Inversiones CMPC S.A. 144A 4.375%, 5/15/23⁽³⁾⁽⁹⁾		435		454
Novelis Corp. 144A 5.875%, 9/30/26⁽³⁾⁽⁹⁾		400		410
Office Cherifien des Phosphates S.A. (OCP) 144A 5.625%, 4/25/24⁽³⁾		350		380
Reynolds Group Issuer, Inc. 144A 7.000%, 7/15/24⁽³⁾		425		457
Standard Industries, Inc. 144A 6.000%, 10/15/25⁽³⁾		250		267

See the Notes to Schedule of Investments

THE ZWEIG FUND, INC.

SCHEDULE OF INVESTMENTS

SEPTEMBER 30, 2016 (Unaudited)

($ reported in thousands)


	Par Value		Value
Materials (continued)
Teck Resources Ltd. 144A 8.500%, 6/1/24⁽³⁾	$	100	$	115
United States Steel Corp. 7.375%, 4/1/20		40		40
Vale Overseas Ltd. 5.875%, 6/10/21⁽⁹⁾		260		273
Vedanta Resources plc 144A 6.000%, 1/31/19⁽³⁾⁽⁹⁾		435		434

				8,053

Real Estate—0.4%
Corporate Office Properties LP 3.600%, 5/15/23⁽⁹⁾		410		410
ESH Hospitality, Inc. 144A 5.250%, 5/1/25⁽³⁾⁽⁹⁾		285		286
MPT Operating Partnership LP 5.500%, 5/1/24⁽⁹⁾		200		210

				906

Telecommunication Services—2.0%
Altice Financing S.A. 144A 6.625%, 2/15/23⁽³⁾⁽⁹⁾		440		453
AT&T, Inc.
4.800%, 6/15/44		140		147
5.650%, 2/15/47⁽⁹⁾		130		154
CenturyLink, Inc. Series Y 7.500%, 4/1/24⁽⁹⁾		310		332
Crown Castle Towers LLC 144A 3.222%, 5/15/22⁽³⁾		250		258
CSC Holdings LLC 144A 5.500%, 4/15/27⁽³⁾		460		472
Digicel Group Ltd. 144A 8.250%, 9/30/20⁽³⁾		500		437
Empresa Nacional de Telecomunicaciones S.A. 144A 4.875%, 10/30/24⁽³⁾⁽⁹⁾		325		335
Frontier Communications Corp.
6.250%, 9/15/21		175		169
10.500%, 9/15/22		100		106
GTH Finance BV 144A 7.250%, 4/26/23⁽³⁾⁽⁹⁾		425		462
Sprint Communications, Inc. 6.000%, 11/15/22⁽⁹⁾		315		296
Sprint Corp. 7.250%, 9/15/21⁽⁹⁾		280		283


	Par Value		Value
Telecommunication Services (continued)
T-Mobile USA, Inc.
6.500%, 1/15/24	$	140	$	152
6.500%, 1/15/26		185		206
Windstream Services LLC 7.750%, 10/15/20⁽⁹⁾		570		584

				4,846

Utilities—0.8%
Lamar Funding Ltd. 144A 3.958%, 5/7/25⁽³⁾		435		412
Majapahit Holding BV 144A 7.750%, 1/20/20⁽³⁾⁽⁹⁾		345		398
NRG Yield Operating LLC 5.375%, 8/15/24		150		155
Southern Power Co. 4.150%, 12/1/25⁽⁹⁾		465		501
Talen Energy Supply LLC 144A 4.625%, 7/15/19⁽³⁾⁽⁹⁾		300		283
TerraForm Power Operating LLC 144A 9.375%, 2/1/23⁽²⁾⁽³⁾		225		233

				1,982
TOTAL CORPORATE BONDS AND NOTES (Identified Cost $70,872)				71,141
LOAN AGREEMENTS—2.0%
Consumer Discretionary—0.6%
Affinity Gaming LLC 0.000%, 7/1/23⁽⁶⁾		200		201
Caesars Entertainment Resort Properties LLC Tranche B, 0.000%, 10/11/20⁽⁶⁾		315		315
CDS U.S. Intermediate Holdings, Inc. First Lien, 0.000%, 7/8/22⁽⁶⁾		125		125
Cengage Learning, Inc. 0.000%, 6/7/23⁽⁶⁾		125		125
Harbor Freight Tools USA, Inc. 0.000%, 8/18/23⁽⁶⁾		125		126
Las Vegas Sands LLC Tranche B, 0.000%, 12/19/20⁽⁶⁾		185		186

See the Notes to Schedule of Investments

THE ZWEIG FUND, INC.

SCHEDULE OF INVESTMENTS

SEPTEMBER 30, 2016 (Unaudited)

($ reported in thousands)


	Par Value		Value
Consumer Discretionary (continued)
Laureare Education, Inc. 2021 Extended, 0.000%, 3/23/21⁽⁶⁾	$	150	$	149
UFC Holdings LLC First Lien 0.000%, 8/18/23⁽⁶⁾		150		152

				1,379

Consumer Staples—0.1%
Amplify Snack Brands, Inc. 0.000%, 9/2/23⁽⁶⁾		315		313
Chobani LLC First Lien, 0.000%, 9/29/23⁽⁶⁾		60		60

				373

Energy—0.2%
EP Energy LLC 0.000%, 6/30/21⁽⁶⁾		255		251
Seadrill Operating LP 0.000%, 2/21/21⁽⁶⁾		250		125

				376

Financials—0.1%
Walter Investment Management Corp. Tranche B, 0.000%, 12/18/20⁽⁶⁾		275		253

Health Care—0.2%
CHG Healthcare Services, Inc. First Lien, 0.000%, 6/7/23⁽⁶⁾		185		187
NVA Holdings, Inc. Second Lien, 0.000%, 8/14/22⁽⁶⁾		180		180
Quorum Health Corp. 0.000%, 4/29/22⁽⁶⁾		130		126

				493

Industrials—0.3%
Brickman Group Ltd. LLC (The) Second Lien, 0.000%, 12/17/21⁽⁶⁾		60		60
Coinstar LLC Tranche B, First Lien 0.000%, 9/27/23		125		126


	Par Value		Value
Industrials (continued)
McGraw-Hill Global Education Holdings LLC Tranche B, First Lien, 0.000%, 5/4/22⁽⁶⁾	$	175	$	176
Navistar, Inc. Tranche B, 0.000%, 8/7/20⁽⁶⁾		200		201
Sedgwick Claims Management Services, Inc. Second Lien, 0.000%, 2/28/22⁽⁶⁾		275		273

				836

Information Technology—0.1%
ON Semiconductor Corp. 2016 New Replacement Term Loan 3.776%, 3/31/23		125		126
Presidio, Inc. Refinancing Term, 0.000%, 2/2/22⁽⁶⁾		215		215

				341

Materials—0.1%
Omnova Solutions, Inc. Tranche B-2, 0.000%, 8/25/23⁽⁶⁾		250		250

Real Estate—0.1%
Capital Automotive LP Second Lien, 0.000%, 4/30/20⁽⁶⁾		155		157

Utilities—0.2%
NRG Energy, Inc. 0.000%, 6/30/23⁽⁶⁾		375		376
Texas Competitive Electric Holdings Co., LLC
0.000%, 10/31/17⁽⁶⁾		110		111
Tranche C 0.000%, 10/31/17⁽⁶⁾		25		25

				512
TOTAL LOAN AGREEMENTS (Identified Cost $4,987)				4,970

See the Notes to Schedule of Investments

THE ZWEIG FUND, INC.

SCHEDULE OF INVESTMENTS

SEPTEMBER 30, 2016 (Unaudited)

($ reported in thousands)


	Shares			Value
PREFERRED STOCKS—1.3%
Energy—0.2%
PTT Exploration & Production PCL 144A, 4.875%⁽²⁾⁽³⁾		435	⁽⁸⁾	$	443

Financials—0.9%
Citigroup, Inc. Series J, 7.125%⁽⁹⁾		15,000			435
Citigroup, Inc. Series T, 6.25%⁽²⁾⁽⁹⁾		500	⁽⁸⁾		539
PNC Financial Services Group, Inc. (The) Series R, 4.850%⁽²⁾⁽⁹⁾		305	⁽⁸⁾		304
Wells Fargo & Co. Series K, 7.980%⁽²⁾⁽⁹⁾		310	⁽⁸⁾		324
Zions Bancorp 6.950%⁽⁹⁾		17,625			523

					2,125

Industrials—0.2%
General Electric Co. Series D, 5.000%⁽²⁾⁽⁹⁾		490	⁽⁸⁾		521
TOTAL PREFERRED STOCKS (Identified Cost $3,108)					3,089
COMMON STOCKS—73.9%
Energy—14.5%
Enbridge, Inc.⁽⁹⁾		139,015			6,149
Inter Pipeline Ltd.		58,660			1,238
Kinder Morgan, Inc.⁽⁹⁾		252,830			5,848
ONEOK, Inc.⁽⁹⁾		20,450			1,051
Pembina Pipeline Corp.		60,610			1,847
Plains GP Holdings LP Class A⁽⁹⁾		119,775			1,550
Spectra Energy Corp.⁽⁹⁾		108,545			4,640
Tallgrass Energy GP LP		57,630			1,386
Targa Resources Corp.⁽⁹⁾		46,745			2,296
TransCanada Corp.⁽⁹⁾		137,105			6,521
Williams Cos., Inc. (The)⁽⁹⁾		85,325			2,622

					35,148

Industrials—20.3%
Abertis Infraestructuras SA		334,620			5,210
Aena SA		38,149			5,627
Atlantia SpA		271,050			6,878
Auckland International Airport Ltd.		686,234			3,678


	Shares		Value
Industrials (continued)
Canadian Pacific Railway Ltd.		12,600	$	1,924
CSX Corp.		77,610		2,367
Ferrovial SA		73,399		1,563
Flughafen Zuerich AG		15,374		3,004
Sydney Airport		724,873		3,885
Transurban Group		1,065,010		9,307
Union Pacific Corp.		39,320		3,835
Vinci SA		25,119		1,922

				49,200

Real Estate—5.1%
American Tower Corp.⁽⁹⁾		61,625		6,984
Crown Castle International Corp.⁽⁹⁾		56,750		5,346

				12,330

Telecommunication Services—3.6%
AT&T, Inc.⁽⁹⁾		81,095		3,293
BCE, Inc.⁽⁹⁾		32,665		1,509
Cellnex Telecom SA		103,250		1,868
TELUS Corp.		65,440		2,159

				8,829

Utilities—30.4%
ALLETE, Inc.⁽⁹⁾		29,805		1,777
American Electric Power Co., Inc.⁽⁹⁾		57,920		3,719
American Water Works Co., Inc.⁽⁹⁾		49,825		3,729
APA Group		246,428		1,614
Aqua America, Inc.⁽⁹⁾		54,440		1,659
Atmos Energy Corp.⁽⁹⁾		30,380		2,262
Black Hills Corp.⁽⁹⁾		35,710		2,186
CMS Energy Corp.		52,610		2,210
Dominion Resources, Inc.⁽⁹⁾		55,110		4,093
DTE Energy Co.⁽⁹⁾		37,650		3,527
Edison International⁽⁹⁾		31,675		2,289
Emera, Inc.		50,745		1,830
Eversource Energy⁽⁹⁾		29,230		1,584
Iberdrola SA		400,458		2,723
National Grid plc		375,133		5,310
NextEra Energy, Inc.⁽⁹⁾		63,930		7,820
NiSource, Inc.⁽⁹⁾		103,090		2,486
ONE Gas, Inc.⁽⁹⁾		20,785		1,285
Red Electrica Corp. SA		64,430		1,390

See the Notes to Schedule of Investments

THE ZWEIG FUND, INC.

SCHEDULE OF INVESTMENTS

SEPTEMBER 30, 2016 (Unaudited)

($ reported in thousands)


	Shares		Value
Utilities (continued)
Scottish & Southern Energy plc		90,014	$	1,829
Sempra Energy⁽⁹⁾		53,575		5,743
SevernTrent plc		54,712		1,776
South Jersey Industries, Inc.⁽⁹⁾		46,745		1,381
Spire, Inc.⁽⁹⁾		28,925		1,844
Vectren Corp.⁽⁹⁾		36,225		1,818
Veolia Environnement SA		80,435		1,852
WEC Energy Group, Inc.⁽⁹⁾		35,490		2,125
XCEL Energy, Inc.		47,655		1,961

				73,822
TOTAL COMMON STOCKS (Identified Cost $181,010)				179,329
EXCHANGE-TRADED FUNDS—2.6%
PowerShares Senior Loan Portfolio⁽⁹⁾⁽¹⁰⁾		193,750		4,497
SPDR Barclays Short-Term High Yield Bond Index Fund⁽⁹⁾⁽¹⁰⁾		69,705		1,930
TOTAL EXCHANGE-TRADED FUNDS (Identified Cost $6,411)				6,427
	Contracts
PURCHASED OPTIONS—0.1%
Call Options—0.0%
S&P 500^® Index expiration 10/05/16 strike price $2,290		317		0
S&P 500^® Index expiration 10/07/16 strike price $2,295		600		3
S&P 500^® Index expiration 10/12/16 strike price $2,275		420		0
S&P 500^® Index expiration 10/14/16 strike price $2,280		781		11

				14

Put Options—0.1%
S&P 500^® Index expiration 10/05/16 strike price $1,995		317		0


	Contracts		Value
Put Options (continued)
S&P 500^® Index expiration 10/07/16 strike price $2,040		600	$	21
S&P 500^® Index expiration 10/12/16 strike price $2,025		420		29
S&P 500^® Index expiration 10/14/16 strike price $2,040		781		99

				149
TOTAL PURCHASED OPTIONS—0.1% (Premiums Paid $292)				163
	Shares
SHORT-TERM INVESTMENTS—11.4%
Money Market Mutual Fund—11.4%
JPMorgan U.S. Government Money Market Fund—Institutional Shares (seven-day effective yield 0.360%)⁽¹⁰⁾		27,639,651		27,640
TOTAL SHORT-TERM INVESTMENTS (Identified Cost $27,640)				27,640
TOTAL INVESTMENTS BEFORE WRITTEN OPTIONS—137.2%
(Identified Cost $334,445)				333,009	⁽¹⁾
	Contracts
WRITTEN OPTIONS—(0.2)%
Call Options—(0.0)%
S&P 500^® Index expiration 10/05/16 strike price $2,230		317		(1	)
S&P 500^® Index expiration 10/07/16 strike price $2,235		600		(6	)
S&P 500^® Index expiration 10/12/16 strike price $2,225		420		(13	)
S&P 500^® Index expiration 10/14/16 strike price $2,230		781		(36	)

				(56	)

See the Notes to Schedule of Investments

THE ZWEIG FUND, INC.

SCHEDULE OF INVESTMENTS

SEPTEMBER 30, 2016 (Unaudited)

($ reported in thousands)


	Contracts		Value
Put Options—(0.2)%
S&P 500^® Index expiration 10/05/16 strike price $2,055		317	$	(8	)
S&P 500^® Index expiration 10/07/16 strike price $2,100		600		(96	)
S&P 500^® Index expiration 10/12/16 strike price $2,075		420		(69	)
S&P 500^® Index expiration 10/14/16 strike price $2,090		781		(230	)

				(403	)
TOTAL WRITTEN OPTIONS—(0.2)%
(Premiums Received $786)				(459	)⁽¹⁾
TOTAL INVESTMENTS NET OF WRITTEN OPTIONS—137.0% (Identified Cost $333,659)				332,550
Other assets and liabilities, net—(37.0)%				(89,880	)

NET ASSETS—100.0%			$	242,670

Footnote Legend:

⁽¹⁾	Federal Income Tax Information: For tax information at September 30, 2016, see Note 3 Federal Income Tax Information in the Notes to Schedules of Investments.

⁽²⁾	Variable or step coupon security; interest rate shown reflects the rate in effect at September 30, 2016.

⁽³⁾	Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At September 30, 2016, these securities amounted to a value of $49,244 or 20.3% of net assets.

⁽⁴⁾	Regulation S security. Security is offered and sold outside of the United States, therefore, it is exempt from registration with the SEC under Rules 903 and 904 of the Securities Act of 1933.

⁽⁵⁾	Interest payments may be deferred.

⁽⁶⁾	This loan will settle after September 30, 2016, at which time the interest rate, based on the London Interbank Offered Rate (“LIBOR”) and the agreed upon spread on trade date, will be reflected.

⁽⁷⁾	This Note was issued for the sole purpose of funding a loan agreement between the issuer and the borrower. As the credit risk for this security lies solely with the borrower, the name represented here is that of the borrower.

⁽⁸⁾	Value shown as par value.

⁽⁹⁾	All or a portion of the security is segregated as collateral for written options and borrowings.

⁽¹⁰⁾	Shares of this fund are publicly offered and its prospectus and annual report are publicly available.


Foreign Currencies:
BRL		Brazilian Real
CAD		Canadian Dollar
COP		Colombian Peso
EUR		Euro
MXN		Mexican Peso
ZAR		South African Rand


Country Weightings^†
United States	63	%
Canada	8
Spain	6
Australia	5
United Kingdom	3
Italy	2
France	1
Other	12
Total	100	%
† % of total investments net of written options as of September 30, 2016

See the Notes to Schedule of Investments

THE ZWEIG FUND, INC.

SCHEDULE OF INVESTMENTS

SEPTEMBER 30, 2016 (Unaudited)

($ reported in thousands)

The following table provides a summary of inputs used to value the Fund’s investments as of September 30, 2016 (See Security Valuation Note 1A in the Notes to Schedules of Investments):


	Total Value at September 30, 2016			Level 1 Quoted Prices			Level 2 Significant Observable Inputs
Debt Securities:
Asset-Backed Securities	$	5,392		$	—		$	5,392
Corporate Bonds And Notes		71,141			—			71,141
Foreign Government Securities		12,081			—			12,081
Loan Agreements		4,970			—			4,970
Mortgage-Backed Securities		22,777			—			22,777
Equity Securities:
Common Stocks		179,329			160,844			18,485
Exchange-traded Funds		6,427			6,427			—
Preferred Stocks		3,089			958			2,131
Purchased Options		163			163			—
Short-Term Investment		27,640			27,640			—

Total Investments before Written Options	$	333,009		$	196,032		$	136,977

Written Options	$	(459	)	$	(459	)	$	—

Total Investments Net of Written Options	$	332,550		$	195,573		$	136,977

There are no Level 3 (significant unobservable inputs) priced securities.

There were no transfers between Level 1 and Level 2 related to securities held at September 30, 2016

See the Notes to Schedule of Investments

THE ZWEIG FUND, INC.

NOTES TO SCHEDULE OF INVESTMENTS

SEPTEMBER 30, 2016 (Unaudited)

NOTE 1 — SIGNIFICANT ACCOUNTING POLICIES

The significant accounting policies consistently followed by the Fund in the preparation of its Schedule of Investments are summarized below and, for derivatives, included in Note 2 below. The preparation of the Schedule of Investments in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, and disclosure of contingent assets and liabilities at the date of the Schedule of Investments. Actual results could differ from those estimates and those differences could be significant.

SECURITY VALUATION

Security valuation procedures for the Fund, which include nightly price variance, as well as back-testing such as bi-weekly unchanged price, monthly secondary source and transaction analysis, have been approved by the Board of Trustees (the “Board”, or the “Trustees”). All internally fair valued securities are approved by a valuation committee (the “Valuation Committee”) appointed by the Board. The Valuation Committee is comprised of certain members of management as identified to the Board and convenes independently from portfolio management. All internally fair valued securities are updated daily and reviewed in detail by the Valuation Committee monthly unless changes occur within the period. The Valuation Committee reviews the validity of the model inputs and any changes to the model. Quarterly fair valuations are reviewed by the Board.

The Fund utilizes a fair value hierarchy which prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. The Fund’s policy is to recognize transfers between levels at the end of the reporting period.

●

Level 1 – quoted prices in active markets for identical securities (security types generally include listed equities).

●

Level 2 – prices determined using other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.).

●

Level 3 – prices determined using significant unobservable inputs (including the Valuation Committee’s own assumptions in determining the fair value of investments).

A description of the valuation techniques applied to the Fund’s major categories of assets and liabilities measured at fair value on a recurring basis is as follows:

Equity securities are valued at the official closing price (typically last sale) on the exchange on which the securities are primarily traded or, if no closing price is available, at the last bid price and are categorized as Level 1 in the hierarchy. Restricted equity securities and private placements that are not widely traded, are illiquid, or are internally fair valued by the Valuation Committee, are generally categorized as Level 3 in the hierarchy.

Certain non-U.S. securities may be fair valued in cases where closing prices are not readily available or are deemed not reflective of readily available market prices. For example, significant events (such as movement in the U.S. securities market or other regional and local developments) may occur between the time that non-U.S. markets close (where the security is principally traded) and the time that a Fund calculates its net asset value (“NAV”) (at the close of regular trading on the New York Stock Exchange (“NYSE”), generally 4 p.m. Eastern time) that may impact the value of securities traded in these non-U.S. markets.

Other information regarding the Fund is available in the Fund’s most recent Report to Shareholders

THE ZWEIG FUND, INC.

NOTES TO SCHEDULE OF INVESTMENTS

SEPTEMBER 30, 2016 (Unaudited)

In such cases the Fund fair values non-U.S. securities using an independent pricing service which considers the correlation of the trading patterns of the non-U.S. security to the intraday trading in the U.S. markets for investments such as ADRs, financial futures, exchange-traded funds and certain indexes, as well as prices for similar securities. Such fair valuations are categorized as Level 2 in the hierarchy. Because the frequency of significant events is not predictable, fair valuation of certain non-U.S. common stocks may occur on a frequent basis.

Debt securities, including restricted securities, are valued based on evaluated quotations received from independent pricing services or from dealers who make markets in such securities. For most bond types, the pricing service utilizes matrix pricing that considers one or more of the following factors: yield or price of bonds of comparable quality, coupon, maturity, current cash flows, type, and current day trade information, as well as dealer-supplied prices. These valuations are generally categorized as Level 2 in the hierarchy. Structured debt instruments, such as mortgage-backed and asset-backed securities, may also incorporate collateral analysis and utilize cash flow models for valuation, and are generally categorized as Level 2 in the hierarchy. Pricing services do not provide pricing for all securities and therefore indicative bids from dealers are utilized which are based on pricing models used by market makers in the security and are generally categorized as Level 2 in the hierarchy. Debt securities that are not widely traded, are illiquid, or are internally fair valued by the Valuation Committee, are generally categorized as Level 3 in the hierarchy.

Listed derivatives that are actively traded are valued based on quoted prices from the exchange and are categorized as Level 1 in the hierarchy. Over-the-counter derivative contracts, which include forward currency contracts and equity-linked instruments, do not require material subjectivity as pricing inputs are observed from actively quoted markets and are categorized as Level 2 in the hierarchy.

Investments in open-end mutual funds are valued at NAV. Investments in closed-end funds are valued as of the close of regular trading on the NYSE each business day. Both are categorized as Level 1 in the hierarchy.

A summary of the inputs used to value the Fund’s net assets by each major security type is disclosed at the end of the Schedule of Investments for the Fund. The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

NOTE 2 — DERIVATIVE FINANCIAL INSTRUMENTS

Disclosures about derivative instruments and hedging activities are intended to enable investors to understand how and why a Fund uses derivatives, how derivatives are accounted for, and how derivative instruments affect a Fund’s results of operations and financial position. Summarized below are such disclosures and accounting policies for each specific type of derivative instrument used by the Fund.

Options contracts

An options contract provides the purchaser with the right, but not the obligation, to buy (call option) or sell (put option) a financial instrument at an agreed-upon price. The Fund pursues an option income strategy whereby it purchases and sells out-of-the-money puts and calls, creating an options spread designed to generate a consistent level of option cash flow which should result in additional yield. The Fund is subject to equity price risk in the normal course of pursuing its investment objectives.

Other information regarding the Fund is available in the Fund’s most recent Report to Shareholders

THE ZWEIG FUND, INC.

NOTES TO SCHEDULE OF INVESTMENTS

SEPTEMBER 30, 2016 (Unaudited)

When the Fund purchases an option, it pays a premium and an amount equal to that premium is recorded as an asset. When the Fund writes an option, it receives a premium and an amount equal to that premium is recorded as a liability. The asset or liability is adjusted daily to reflect the current market value of the option.

Holdings of the Fund designated to cover outstanding written options are noted in the Schedule of Investments. Purchased options are reported as an asset within “Investment in securities at value” in the Statement of Assets and Liabilities. Options written are reported as a liability within “Written options outstanding at value”. Changes in value of the purchased option is included in “Net change in unrealized appreciation (depreciation) on investments” in the Statement of Operations. Changes in value of written options is included in “Net change in unrealized appreciation (depreciation) on written options”.

If an option expires unexercised, the Fund realizes a gain or loss to the extent of the premium received or paid. If an option is exercised, the premium received or paid is recorded as an adjustment to the proceeds from the sale or the cost basis of the purchase. The difference between the premium and the amount received or paid on effecting a closing purchase or sale transaction is also treated as a realized gain or loss. Gain or loss on purchased options is included in “Net realized gain (loss) on investments” in the Statement of Operations. Gain or loss on written options is presented separately as “Net realized gain (loss) on written options” in the Statement of Operations. The risk in writing covered call options is that the Fund gives up the opportunity for profit if the market price of the security increases and the option is exercised.

The risk in writing covered put options is that the Fund may incur a loss if the market price of the security decreases and the option is exercised. The risk in buying options is that the Fund pays a premium whether or not the option is exercised. The use of such instruments may involve certain additional risks as a result of unanticipated movements in the market. Writers (sellers) of options are normally subject to unlimited risk of loss, as the seller will be obligated to deliver or take delivery of the security at a predetermined price which may, upon exercise of the option, be significantly different from the then-market value. However, the Fund may limit its risk of loss when writing an option by purchasing an option by purchasing an option similar to the one that is sold except for the fact it is further “out of the money”.

The Fund had transactions in written call options for the period ended September 30, 2016 as follows:


	Calls						Puts
Written Options	Number of Contracts			Premiums Received			Number of Contracts			Premiums Received
Written Options outstanding at December 31, 2015		—		$	—			—		$	—
Options written		28,015			1,366			28,015			9,734
Options closed		(21,423	)		(1,092	)		(20,626	)		(7,411	)
Options expired		(4,474	)		(207	)		(5,271	)		(1,604	)
Options exercised		—			—			—			—

Written Options outstanding at September 30, 2016		2,118		$	67			2,118		$	719

Other information regarding the Fund is available in the Fund’s most recent Report to Shareholders

THE ZWEIG FUND, INC.

NOTES TO SCHEDULE OF INVESTMENTS

SEPTEMBER 30, 2016 (Unaudited)

NOTE 3 — FEDERAL INCOME TAX INFORMATION

($ reported in thousands)

At September 30, 2016, federal tax cost and aggregate gross unrealized appreciation (depreciation) of securities held by the Fund were as follows:


	Federal Tax Cost				Unrealized Appreciation			Unrealized (Depreciation)				Net Unrealized Appreciation (Depreciation)
Investments (before written options)		$	334,651			$	1,382		$	(3,024	)		$	(1,642	)
Written Options			(786	)			337			(10	)			327

The differences between book basis cost and tax basis cost were attributable primarily to the tax deferral of losses on wash sales.

NOTE 5 — REGULATORY MATTERS AND LITIGATION

From time to time, the Fund, the Fund’s Adviser and/or subadvisers and/or their affiliates may be involved in litigation and arbitration as well as examinations and investigations by various regulatory bodies, including the SEC, involving compliance with, among other things, securities laws, client investment guidelines, laws governing the activities of broker-dealers and other laws and regulations affecting their products and other activities. At this time, the Fund’s Adviser believes that the outcomes of such matters are not likely, either individually or in the aggregate, to be material to these financial statements.

NOTE 7 — SUBSEQUENT EVENTS

Management has evaluated the impact of all subsequent events on the Fund through the date the financial statements were issued, and has determined that there the following subsequent events that require recognition or disclosure in these financial statements.

On November 25, 2016, the Fund announced the commencement of a tender offer to acquire for cash up to 5 percent of its outstanding shares at a price equal to 98 percent of the Fund’s net asset value per share as of the close regular trading on the New York Stock Exchange on the date the offer expires. If more than 5 of a Fund’s outstanding shares are tendered, the will purchase shares from tendering stockholders on a pro-rata basis.

Other information regarding the Fund is available in the Fund’s most recent Report to Shareholders

Item 2. Controls and Procedures.

(a)

The registrant’s principal executive and principal financial officers, or persons performing similar functions, have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the “1940 Act”) (17 CFR 270.30a-3(c))) are effective, as of a date within 90 days of the filing date of the report that includes the disclosure required by this paragraph, based on the evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act (17 CFR 270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934, as amended (17 CFR 240.13a-15(b) or 240.15d-15(b)).

(b)

There were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act (17 CFR 270.30a-3(d))) that occurred during the registrant’s last fiscal quarter that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.

Item 3. Exhibits.

Certifications pursuant to Rule 30a-2(a) under the 1940 Act and Section 302 of the Sarbanes-Oxley Act of 2002 are attached hereto.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.


(Registrant)		The Zweig Fund, Inc.



By (Signature and Title)*		/s/ George R. Aylward
		George R. Aylward, President
		(principal executive officer)



Date		11-29-2016

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.


By (Signature and Title)*		/s/ George R. Aylward


		George R. Aylward, President
		(principal executive officer)



Date		11-29-2016



By (Signature and Title)*		/s/ W. Patrick Bradley

W. Patrick Bradley, Executive Vice President, Chief Financial

Officer and Treasurer

(principal financial officer)



Date		11-29-2016

^* Print the name and title of each signing officer under his or her signature.