NOTES TO FINANCIAL STATEMENTS
December 31, 2000
NOTE 1 -- Acquisition
On March 1, 1999, Phoenix Investment Partners, Ltd. ("Phoenix"), completed the acquisition of Zweig Advisors,
Inc., the Fund's previous investment adviser (currently Phoenix/Zweig Advisers LLC (the "Adviser")),
Zweig/Glaser Advisers the Fund's previous Administrator and Zweig Securities Corp. (currently PXP Securities
Corp.), an affiliated broker-dealer registered under the Securities Exchange Act of 1934.
In order to continue to have access to the advisory and consulting services of Dr. Martin E. Zweig and his
associates, the Adviser entered into a sub- advisory servicing agreement with Zweig Consulting, LLC.
As of October 31, 1999, Zweig/Glaser Advisers assigned the rights and obligations under the Administration
Agreement dated March 1, 1999, between the Fund and Zweig/Glaser Advisers to Phoenix Equity Planning
Corp. ("PEPCO") under the same terms as the previous Administration Agreement. Effective October 31, 1999,
PEPCO sub-contracted the Fund's mutual fund accounting to The Bank of New York who also serves as the
Fund's custodian. PEPCO is an affiliate of the Adviser and the Fund.
NOTE 2 -- Organization
The Zweig Fund, Inc. (the "Fund") is a closed-end, diversified management investment company registered under
the Investment Company Act of 1940 (the "Act"). The Fund was incorporated under the laws of the State of
Maryland on June 18, 1986.
NOTE 3 -- Significant Accounting Policies
The following is a summary of significant accounting policies consistently followed by the Fund in the preparation
of its financial statements. The preparation of financial statements in accordance with accounting principals
generally accepted in the United States requires management to make estimates and assumptions that affect the
reported amounts and disclosures in the financial statements. Actual results could differ from those estimates.
A. Portfolio Valuation
Portfolio securities that are traded only on stock exchanges a