Report 
 
      
Registrant:   The Zweig Fund, Inc. — List all N-SARs

Annual Report for the 2nd-half period ended at fiscal year end:  12/31/97

Were there any Answer File errors in the Filing?  None FoundNone Found by SEC InfoNot Checked by the FilerOne or more Found by SEC Info
Was the Answer File completed by the Registrant?  Yes

Is this an Amendment to a previous Report?  No
Is this a change to a previous Report?      No
 
Registrant 
 
 1.
SEC CIK:      812090
SEC File #:   811-04739

Telephone #:  212-451-1100
 
 2.
Address:      900 Third Avenue
              New York, NY  10022
 
 3.
Is this the first Form N-SAR filed by the Registrant?  No
 
 4.
Is this the final Form N-SAR filed by the Registrant?  No
 
 
Funds/Series 
↑Top of Form N-SAR 
     
                                                                               
 7.
Is the Registrant a Funds/Series (multiple portfolios) company?  No
 
Investment Adviser 
 
 8.1
Name:         Zweig Advisors Inc.
Role:         Adviser
SEC File #:   801-27366
Location:     New York, NY
 
Administrator 
 
10.1
Name:         Zweig/Glaser Advisers
SEC File #:   801-35094
Location:     New York, NY
 
Shareholder Servicing/Transfer Agent 
 
12.1
Name:         State Street Bank & Trust Co.
SEC File #:   085-05003
Location:     Boston, MA
 
Independent Public Accountant 
 
13.1
Name:         Coopers & Lybrand L.L.P.
Location:     New York, NY
 
Affiliated Broker/Dealer 
 
14.1
Name:         Zweig Securities Corp.
SEC File #:   008-40035
 
14.2
Name:         Watermark Securities Inc.
SEC File #:   008-43902
 
Custodian 
 
15.1
Name:         The Bank of New York
Role:         Custodian
Location:     New York, NY

Type of custody:  Section 17(f)(1) — Bank
 
18.
Does the Registrant’s/Series’ Custodian(s) maintain some or all of the
Registrant’s/Series’ securities in a central depository or book-entry
system pursuant to Rule 17f-4?  Yes
 
Family of Investment Companies 
 
19.
Is the Registrant/Series part of a “family” of investment companies?  No
 
Brokerage Commissions Paid on Portfolio Transactions 
 
20.
The brokers who received the largest amount of gross brokerage
commissions during the period:
 
20.1
Broker:       Zweig Securities Corp.
IRS #:        13-3472421
Commissions paid ($000s):  182
 
20.2
Broker:       Prudential Securities, Inc.
IRS #:        22-2347336
Commissions paid ($000s):  133
 
20.3
Broker:       Painewebber, Inc.
IRS #:        13-2638166
Commissions paid ($000s):  115
 
20.4
Broker:       Oppenheimer & Co., Inc.
IRS #:        13-2798343
Commissions paid ($000s):  114
 
20.5
Broker:       Merrill Lynch, Pierce, Fenner & Smith, Inc.
IRS #:        13-5674085
Commissions paid ($000s):  102
 
20.6
Broker:       Smith Barney, Inc.
IRS #:        13-1912900
Commissions paid ($000s):  101
 
20.7
Broker:       Rochdale Securities Corp.
IRS #:        13-3360814
Commissions paid ($000s):  94
 
20.8
Broker:       Morgan (J.P.) Securities Inc.
IRS #:        13-3224016
Commissions paid ($000s):  90
 
20.9
Broker:       B T Alex Brown, Inc.
IRS #:        52-1319768
Commissions paid ($000s):  52
 
20.10
Broker:       Salomon Brothers, Inc.
IRS #:        13-3082694
Commissions paid ($000s):  52
 
21.
Total brokerage commissions paid by the Registrant during the period:
  Aggregate paid ($000s):  1,295
 
Portfolio Transactions with Entities Acting as Principals 
 
22.
The entities acting as principals with whom the Registrant did the
largest amount of portfolio transactions, based on total value of
principal, during the period:
 
22.1
Entity:       Goldman Sachs & Co.
IRS #:        13-5108880
Registrant’s purchases ($000s):  3,358,750
Registrant’s sales ($000s):  9,994
 
22.2
Entity:       Merrill Lynch, Pierce, Fenner & Smith, Inc.
IRS #:        13-5674085
Registrant’s purchases ($000s):  1,650,451
 
22.3
Entity:       Lehman Brothers Inc.
IRS #:        13-2518466
Registrant’s purchases ($000s):  910,797
 
22.4
Entity:       Ford Motor Co.
IRS #:        38-3540782
Registrant’s purchases ($000s):  256,491
 
22.5
Entity:       J.P. Morgan Securities, Inc.
IRS #:        13-3224016
Registrant’s purchases ($000s):  57,406
Registrant’s sales ($000s):  6,167
 
22.6
Entity:       Greenwich Capital Markets, Inc.
IRS #:        13-3172275
Registrant’s purchases ($000s):  11,862
Registrant’s sales ($000s):  41,837
 
22.7
Entity:       UBS Securities Inc.
IRS #:        13-3224016
Registrant’s purchases ($000s):  10,658
Registrant’s sales ($000s):  29,795
 
22.8
Entity:       Daiwa Securities America, Inc.
IRS #:        13-5680329
Registrant’s purchases ($000s):  30,118
Registrant’s sales ($000s):  6,163
 
22.9
Entity:       Morgan Stanley & Co., Inc.
IRS #:        13-2655998
Registrant’s purchases ($000s):  34,452
 
22.10
Entity:       Troster Singer & Co.
IRS #:        13-5515160
Registrant’s purchases ($000s):  4,627
Registrant’s sales ($000s):  3,558
 
23.
Total purchase/sale transactions by the Registrant during the period:
   Aggregate purchases ($000s):  6,332,442
   Aggregate sales ($000s):  106,179
 
Holdings of Securities Issued by Registrant’s/Series’ Brokers or Dealers 
 
24.
At period end, did the Registrant/Series hold any securities of the
Registrant’s/Series’ regular brokers or dealers, or of the parents of
such brokers or dealers, that derive more than 15% of gross revenue from
securities-related activities?  No
 
Considerations which Affected the Participation of Brokers or Dealers 
 
26.
Considerations which affected the participation of brokers or dealers or
other entities in commissions or other compensation paid on portfolio
transactions of the Registrant:

Consideration?
Sales of the Registrant’s/Series’ shares ...............................  No
Receipt of investment research and statistical info ....................  Yes
Receipt of quotations for portfolio valuations .........................  No
Ability to execute portfolio transactions to obtain the best price
  and execution ........................................................  Yes
Receipt of telephone line and wire services ............................  No
Broker or Dealer which is an affiliated person .........................  Yes
An arrangement to return or credit part or all of commissions or
  profits thereon...
    To an Investment Adviser or Principal Underwriter, or to an
      affiliated person of either ......................................  No
    To the Registrant ..................................................  No
Other ..................................................................  No
 
Investment Company Type 
 
27.
Is the Registrant an “open-end” investment company?  No, Closed-End
 
Advisory Fee 
 
45.
Did the Registrant/Series have an advisory contract during the period?  Yes
 
46.
Did the Registrant/Series pay more than one Investment Adviser directly
for investment advice during the period?  No
 
47.
Was the Registrant’s/Series’ advisory fee based solely on a percentage
of its assets?  Yes
 
48.
Fee (single rate or step rates) applied to the Registrant’s/Series’
assets based on the advisory contract:
    Single-fee rate:  0.85%
    Step-fee rates:
      For 1st $000s:  0
        Annual rate:  0.0%
 
49.
Was the Registrant’s/Series’ advisory fee during the period based solely
on a percentage of its income?  No
 
50.
Was the Registrant’s/Series’ advisory fee during the period based on
some combined percentage of its income and assets?  No
 
51.
Was the Registrant’s/Series’ advisory fee during the period based in
whole or in part on its investment performance?  No
 
52.
Was the Registrant’s/Series’ advisory fee during the period based in
whole or in part on the assets, income or performance of other
Registrants?  No
 
53.
Were the expenses of the Registrant/Series limited or reduced at any
time during the period by some agreement or understanding other than by
Blue Sky Laws?  No
 
54.
Indicated below are whether services were supplied or paid for wholly or
in substantial part by Investment Adviser(s) or Administrator(s) in
connection with the advisory or administrative contract(s) but for which
the Adviser(s) or Administrator(s) are not reimbursed by the Registrant:

Provided to the Registrant?
Occupancy and office rental ............................................  Yes
Clerical and bookkeeping services ......................................  Yes
Accounting services ....................................................  Yes
Services of independent auditors .......................................  No
Services of outside counsel ............................................  No
Registration and filing fees ...........................................  No
Stationery, supplies and printing ......................................  Yes
Salaries & compensation of Registrant’s interested Directors ...........  Yes
Salaries & compensation of Registrant’s disinterested Directors ........  No
Salaries & compensation of Registrant’s Officers who aren’t Directors ..  Yes
Reports to current shareholders ........................................  No
Determination of offering and redemption prices ........................  Yes
Trading department .....................................................  No
Prospectus preparation and printing for current shareholders ...........  No
Other ..................................................................  No
 
Miscellaneous Info 
 
55.
Did the Registrant/Series have any of the following outstanding at any
time during the period which exceeded 1% of aggregate net assets:
    Overdrafts?  No
    Bank loans?  No
 
56.
During the period, did the Registrant’s/Series’ Investment Adviser(s)
have advisory clients other than investment companies?  No
 
57.
Did the Registrant/Series adjust the number of its shares outstanding by
means of a stock split or stock dividend?  No
 
Classification and Asset Allocation 
 
58.
Is the Registrant/Series a Separate Account of an insurance company?  No
 
59.
Is the Registrant/Series a management investment company?  Yes
 
60.
Was the Registrant/Series a diversified investment company at any time
during the period?  Yes

Was the Registrant/Series a diversified investment company at the end of
the period?  Yes
 
61.
The lowest minimum initial investment required by the Registrant/Series
from an investor that is not an employee or otherwise affiliated with
the Registrant/Series, its Investment Adviser, Principal Underwriter or
other affiliated entity:  $0
 
62.
Does the Registrant/Series invest primarily in debt securities,
including convertible debt securities, options & futures on debt
securities or indices of debt securities?  No
 
66.
Is the Registrant/Series a Fund that usually invests in equity
securities, options & futures on equity securities, indices of equity
securities or securities convertible into equity securities?  Yes

Which best describes its primary investment objective:

    Aggressive capital appreciation?  No
               Capital appreciation?  Yes
    Growth?                           No
    Growth and income?                No
               Income?                No
    Total return?                     No
 
67.
Is the Registrant/Series a “balanced” Fund?  No
 
68.
Does the Registrant/Series have more than 50% of its net assets at
period end invested in the securities of issuers...
    Engaged primarily in production or distribution of precious metals?  No
    Located primarily in countries other than the United States?  No
 
69.
Is the Registrant/Series an index Fund?  No
 
Investment Practices 
 
70.
Activities that are permitted by the Registrant’s/Series’ investment
policies, and which were engaged in during the period:

Activity                                            Permitted Engaged In
Writing or investing in repurchase agreements?           Yes      No
Writing or investing in options on equities?             Yes      No
Writing or investing in options on debt securities?      Yes      No
Writing or investing in options on stock indices?        Yes      No
Writing or investing in interest rate futures?           Yes      No
Writing or investing in stock index futures?             Yes to both
Writing or investing in options on futures?              Yes      No
Writing or investing in options on stock index futures?  Yes      No
Writing or investing in other commodity futures?         Yes      No
Investments in restricted securities?                    Yes      No
Investments in shares of other investment companies?     Yes to both
Investments in securities of foreign issuers?            Yes to both
Currency exchange transactions?                          Yes      No
Loaning portfolio securities?                            Yes      No
Borrowing of money?                                      Yes      No
Purchases/sales by certain exempted affiliated persons?  No        –
Margin purchases?                                        No        –
Short selling?                                           Yes to both
 
Portfolio Turnover 
 
71.
Portfolio turnover rate for the period:
 
Purchases ($000s):  522,765
Sales ($000s):      432,701

Monthly average Value of portfolio ($000s):  465,104

Percent turnover (lesser of Purchases or Sales, divided by Value):  93%
 
Financial Info — Income and Expenses 
 
72.
The number of months covered by the values in Items 72 and 73:  12

Income  ($000s)
Net interest income ..............................................
 11,092
Net dividend income ..............................................
 14,155
Account maintenance fees .........................................
 –
Net other income .................................................
 –

Expenses  ($000s)
Advisory fees ....................................................
 5,312
Administrator fees ...............................................
 813
Salaries and other compensation ..................................
 –
Shareholder Servicing Agent fees .................................
 421
Custodian fees ...................................................
 109
Postage ..........................................................
 170
Printing expenses ................................................
 114
Directors’ fees ..................................................
 76
Registration fees ................................................
 –
Taxes ............................................................
 –
Interest .........................................................
 –
Bookkeeping fees paid to anyone performing this service ..........
 –
Auditing fees ....................................................
 52
Legal fees .......................................................
 18
Marketing/distribution payments, incl. Rule 12b-1 plan payments ..
 –
Amortization of organization expenses ............................
 –
Shareholder meeting expenses .....................................
 –
Other expenses ...................................................
 139
Total expenses ...................................................
 7,224

Expense reimbursements ($000s):   0

Net investment income ($000s):    18,023

Realized capital gains ($000s):   56,346
Realized capital losses ($000s):  12,577

Net unrealized appreciation during the period ($000s):  61,835
Net unrealized depreciation during the period ($000s):  0

Total income dividends for which the record date passed during the
period ($000s):  16,030

Total capital gains distributions for which the record date passed
during the period ($000s):  46,131
 
73.
Distributions per share for which the record date passed during the
period, shown in fractions of a cent, if so declared:

Dividends from net investment income:    $0.3100

Distribution of capital gains:  $0.8900
Other distributions:            $0.0000
 
Financial Info — Condensed Balance Sheet Data 
 
74.
Assets  ($000s)
Cash .............................................................
 1,160
Repurchase agreements ............................................
 –
Short-term debt securities, other than repurchase agreements .....
 26,995
Long-term debt securities, including convertible debt ............
 50,547
Preferred, conv. preferred and adjustable-rate preferred stock ...
 –
Common stock .....................................................
 581,721
Options on equities ..............................................
 –
Options on all futures ...........................................
 –
Other investments ................................................
 –
Receivables from portfolio instruments sold ......................
 16,793
Receivables from affiliated persons ..............................
 –
Other receivables ................................................
 4,272
All other assets .................................................
 45
Total assets .....................................................
 681,533

Liabilities  ($000s)
Payables for portfolio instruments purchased .....................
 –
Amounts owed to affiliated persons ...............................
 474
Senior long-term debt ............................................
 –
Other liabilities:
  Reverse repurchase agreements ..................................
 –
  Short sales ....................................................
 14,430
  Written options ................................................
 –
  All other liabilities ..........................................
 263

Equity  ($000s)
Senior equity ....................................................
 –
Net assets of common shareholders ................................
 666,366

Number of shares outstanding (000s):   52,766

Net Asset Value (NAV) per share (to nearest cent):  $12.63

Total number of shareholder accounts:  20,074

Total value of assets in segregated accounts ($000s):  3,553
 
75.
Monthly average net assets during the period ($000s):  624,969
 
76.
Market price per share at period end:  $13.25
 
Additional Disclosures 
 
77.
Did the Registrant file any additional Exhibits with the filing of this
Report (listed here and filed either herewith — as one of the ‘EX-99.*’
↑Exhibits in this Filing — or separately and incorporated by reference)?  Yes

EX-99.77B:  Accountant’s Report re: Internal Controls?  Yes

EX-99.77Q1: Other Disclosure?  Yes
 
Subsidiaries 
 
78.
Does the Registrant have any wholly-owned investment company
subsidiaries whose operating and financial data are consolidated with
that of the Registrant in this Report?  No
 
Fidelity Bond in Effect at Fiscal Year End 
 
80.
Insurer:      National Union Fire Insurance Co.

Aggregate face amount of coverage for the Registrant/Series on all bonds
on which it is named as an insured ($000s):  900
 
81.
Is the bond part of a joint fidelity bond(s) shared with other
investment companies or other entities?  No
 
82.
Does the mandatory coverage of the fidelity bond have a deductible?  No
 
83.
Were any claims with respect to this Registrant/Series filed under the
bond during the period?  No
 
84.
Were any losses incurred with respect to this Registrant/Series that
could have been filed as a claim under the fidelity bond but were not?  No
 
85.
Are the Registrant’s/Series’ Officers and Directors covered as Officers
and Directors of the Registrant/Series under any errors and omissions
insurance policy owned by the Registrant/Series or anyone else?  Yes

Were any claims filed under such policy during the period with respect
to the Registrant/Series?  No
 
Sales, Repurchases and Redemptions 
 
86.
Sales, repurchases and redemptions of the Registrant’s securities:
 
Common Stock
Sales:
    Number of shares (000s):   1,323
    Net consideration received ($000s):  15,818
Repurchases:
    Number of shares (000s):   0
    Net consideration paid ($000s):      0

Preferred Stock
Sales:
    Number of shares (000s):   0
    Net consideration received ($000s):  0
Repurchases and redemptions:
    Number of shares (000s):   0
    Net consideration paid ($000s):      0

Debt Securities
Sales:
    Principal amount ($000s):  0
    Net consideration received ($000s):  0
Repurchases and redemptions:
    Principal amount ($000s):  0
    Net consideration paid ($000s):      0
 
Securities Outstanding 
 
87.
Securities of the Registrant that are registered on a national
securities exchange or listed on Nasdaq:
 
Title of class:  Common Stock
    CUSIP/CINS:  989834·10·6
        Symbol:  ZF
 
88.
Did the Registrant have any of the following outstanding which exceeded
1% of aggregate net assets at any time during the period:

Notes or bonds?     No
Uncovered options?  No
Margin loans?       No
Preferred stock?    No
 
 Signature 
 
↑Top of Form N-SAR 
     
                                                                               
/s/      Alfred J. Ratcliffe      
Name:   Alfred J. Ratcliffe
Title:  First Vice President