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)
Registrants 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 SECURITIES5.0% |
|
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 dIvoire 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 $11,967) |
|
|
|
12,081 |
|
See the Notes to Schedule of
Investments
1
THE ZWEIG FUND, INC.
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2016 (Unaudited)
($ reported in
thousands)
|
|
|
|
|
|
|
|
|
|
|
Par Value |
|
|
Value |
|
MORTGAGE-BACKED SECURITIES9.4% |
|
Agency6.8% |
|
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-Agency2.6% |
|
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 SECURITIES2.2% |
|
Applebees 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 $5,385) |
|
|
|
5,392 |
|
See the Notes to Schedule of
Investments
2
THE ZWEIG FUND, INC.
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2016 (Unaudited)
($ reported in
thousands)
|
|
|
|
|
|
|
|
|
|
|
Par Value |
|
|
Value |
|
CORPORATE BONDS AND NOTES29.3% |
|
Consumer Discretionary4.5% |
|
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 |
|
Landrys, 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 Staples0.9% |
|
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
3
THE ZWEIG FUND, INC.
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2016 (Unaudited)
($ reported in
thousands)
|
|
|
|
|
|
|
|
|
|
|
Par Value |
|
|
Value |
|
Consumer Staples (continued) |
|
Pilgrims 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 |
|
|
|
|
|
|
|
|
|
|
Energy6.2% |
|
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
4
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 |
|
|
|
|
|
|
|
|
|
|
Financials6.4% |
|
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
5
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 Care2.1% |
|
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 |
|
|
|
|
|
|
|
|
|
|
Industrials1.8% |
|
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
6
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 Technology0.9% |
|
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 |
|
Materials3.3% |
|
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
7
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 Estate0.4% |
|
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 Services2.0% |
|
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 |
|
|
|
|
|
|
|
|
|
|
Utilities0.8% |
|
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 $70,872) |
|
|
|
71,141 |
|
LOAN AGREEMENTS2.0% |
|
Consumer Discretionary0.6% |
|
Affinity Gaming LLC 0.000%, 7/1/23(6) |
|
|
200 |
|
|
|
201 |
|
Caesars Entertainment Resort Properties LLC Tranche B, 0.000%, 10/11/20(6) |
|
|
315 |
|
|
|
315 |
|
CDS U.S. Intermediate Holdings, Inc. First Lien, 0.000%, 7/8/22(6) |
|
|
125 |
|
|
|
125 |
|
Cengage Learning, Inc. 0.000%,
6/7/23(6) |
|
|
125 |
|
|
|
125 |
|
Harbor Freight Tools USA, Inc. 0.000%,
8/18/23(6) |
|
|
125 |
|
|
|
126 |
|
Las Vegas Sands LLC Tranche B, 0.000%,
12/19/20(6) |
|
|
185 |
|
|
|
186 |
|
See the Notes to Schedule of
Investments
8
THE ZWEIG FUND, INC.
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2016 (Unaudited)
($ 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 Staples0.1% |
|
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 |
|
|
|
|
|
|
|
|
|
|
Energy0.2% |
|
EP Energy LLC 0.000%, 6/30/21(6) |
|
|
255 |
|
|
|
251 |
|
Seadrill Operating LP 0.000%,
2/21/21(6) |
|
|
250 |
|
|
|
125 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
376 |
|
|
|
|
|
|
|
|
|
|
Financials0.1% |
|
Walter Investment Management Corp. Tranche B, 0.000%, 12/18/20(6) |
|
|
275 |
|
|
|
253 |
|
|
|
|
|
|
|
|
|
|
Health Care0.2% |
|
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 |
|
|
|
|
|
|
|
|
|
|
Industrials0.3% |
|
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 Technology0.1% |
|
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 |
|
|
|
|
|
|
|
|
|
|
Materials0.1% |
|
Omnova Solutions, Inc. Tranche B-2, 0.000%,
8/25/23(6) |
|
|
250 |
|
|
|
250 |
|
|
|
|
|
|
|
|
|
|
Real Estate0.1% |
|
Capital Automotive LP Second Lien, 0.000%,
4/30/20(6) |
|
|
155 |
|
|
|
157 |
|
|
|
|
|
|
|
|
|
|
Utilities0.2% |
|
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 $4,987) |
|
|
|
4,970 |
|
See the Notes to Schedule of
Investments
9
THE ZWEIG FUND, INC.
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2016 (Unaudited)
($ reported in
thousands)
|
|
|
|
|
|
|
|
|
|
|
Shares |
|
|
Value |
|
PREFERRED STOCKS1.3% |
|
Energy0.2% |
|
PTT Exploration & Production PCL 144A,
4.875%(2)(3) |
|
|
435 |
(8) |
|
$
|
443 |
|
|
|
|
|
|
|
|
|
|
Financials0.9% |
|
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 |
|
|
|
|
|
|
|
|
|
|
Industrials0.2% |
|
General Electric Co. Series D, 5.000%(2)(9) |
|
|
490 |
(8) |
|
|
521 |
|
TOTAL PREFERRED STOCKS (Identified Cost $3,108) |
|
|
|
3,089 |
|
COMMON STOCKS73.9% |
|
Energy14.5% |
|
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 |
|
|
|
|
|
|
|
|
|
|
Industrials20.3% |
|
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 Estate5.1% |
|
American Tower Corp.(9) |
|
|
61,625 |
|
|
|
6,984 |
|
Crown Castle International Corp.(9) |
|
|
56,750 |
|
|
|
5,346 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12,330 |
|
|
|
|
|
|
|
|
|
|
Telecommunication Services3.6% |
|
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 |
|
|
|
|
|
|
|
|
|
|
Utilities30.4% |
|
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
10
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 FUNDS2.6% |
|
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 OPTIONS0.1% |
|
Call Options0.0% |
|
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 Options0.1% |
|
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 OPTIONS0.1% (Premiums Paid $292) |
|
|
|
163 |
|
|
|
Shares |
|
|
|
|
SHORT-TERM INVESTMENTS11.4% |
|
Money Market Mutual Fund11.4% |
|
JPMorgan U.S. Government Money Market FundInstitutional
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 OPTIONS137.2%
|
|
(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 $2,230 |
|
|
781 |
|
|
|
(36 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(56 |
) |
|
|
|
|
|
|
|
|
|
See the Notes to Schedule of
Investments
11
THE ZWEIG FUND, INC.
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2016 (Unaudited)
($ 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 OPTIONS137.0% (Identified Cost $333,659) |
|
|
|
332,550 |
|
Other assets and liabilities, net(37.0)% |
|
|
|
(89,880 |
) |
|
|
|
|
|
|
|
|
|
NET ASSETS100.0% |
|
|
$ |
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 $49,244 or 20.3% of net assets. |
(4) |
Regulation S security. Security is offered and sold outside of the United States, therefore, it is exempt from registration with the SEC under Rules 903 and 904 of the Securities Act of 1933. |
(5) |
Interest payments may be deferred.
|
(6) |
This loan will settle after September 30, 2016, at which time the interest rate, based on the London Interbank Offered Rate (LIBOR) and the agreed upon spread on trade date, will be reflected.
|
(7) |
This Note was issued for the sole purpose of funding a loan agreement between the issuer and the borrower. As the credit risk for this security lies solely with the borrower, the name represented here is that of
the borrower. |
(8) |
Value shown as par value. |
(9) |
All or a portion of the security is segregated as collateral for written options and borrowings. |
(10) |
Shares of this fund are publicly offered and its prospectus and annual report are publicly available. |
|
|
|
Foreign Currencies: |
BRL |
|
Brazilian Real |
CAD |
|
Canadian Dollar |
COP |
|
Colombian Peso |
EUR |
|
Euro |
MXN |
|
Mexican Peso |
ZAR |
|
South African Rand |
|
|
|
|
|
Country Weightings |
|
|
|
United States |
|
|
63 |
% |
Canada |
|
|
8 |
|
Spain |
|
|
6 |
|
Australia |
|
|
5 |
|
United Kingdom |
|
|
3 |
|
Italy |
|
|
2 |
|
France |
|
|
1 |
|
Other |
|
|
12 |
|
Total |
|
|
100 |
% |
% of total investments net of written options as of
September 30, 2016 |
|
See the Notes to Schedule of
Investments
12
THE ZWEIG FUND, INC.
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2016 (Unaudited)
($ reported in
thousands)
The following table provides a summary of inputs used to value the
Funds 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
13
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 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 Funds 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 Committees own assumptions in determining the fair value of investments). |
A description of the valuation techniques applied to the Funds 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 Funds 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 Funds 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 Funds 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 Funds 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 Funds 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 Funds 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 Funds 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 Funds 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 Funds 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 Funds most recent Report to Shareholders
Item 2. Controls and Procedures.
|
(a) |
The registrants principal executive and principal financial officers, or persons performing similar
functions, have concluded that the registrants 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 registrants 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 registrants last fiscal quarter that have materially affected, or are reasonably likely to materially affect, the registrants 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) |
|
|
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 |
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George R. Aylward, President |
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(principal executive officer) |
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By (Signature and Title)* |
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/s/ W. Patrick Bradley |
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W. Patrick Bradley, Executive Vice President, Chief Financial
Officer and Treasurer |
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(principal financial
officer) |
* Print the name and title of each signing officer under
his or her signature.