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<SEC-DOCUMENT>0000950123-06-015517.txt : 20091204
<SEC-HEADER>0000950123-06-015517.hdr.sgml : 20091204

<ACCEPTANCE-DATETIME>20061222115855

<PRIVATE-TO-PUBLIC>

ACCESSION NUMBER:		0000950123-06-015517

CONFORMED SUBMISSION TYPE:	N-2

PUBLIC DOCUMENT COUNT:		12

FILED AS OF DATE:		20061222

DATE AS OF CHANGE:		20070419


FILER:


	COMPANY DATA:	

		COMPANY CONFORMED NAME:			ZWEIG TOTAL RETURN FUND INC

		CENTRAL INDEX KEY:			0000836412

		IRS NUMBER:				133474242

		STATE OF INCORPORATION:			MD

		FISCAL YEAR END:			1231



	FILING VALUES:

		FORM TYPE:		N-2

		SEC ACT:		1940 Act

		SEC FILE NUMBER:	811-05620

		FILM NUMBER:		061295691



	BUSINESS ADDRESS:	

		STREET 1:		900 THIRD AVE., 31ST FLOOR

		CITY:			NEW YORK

		STATE:			NY

		ZIP:			10022-4728

		BUSINESS PHONE:		800-272-2700



	MAIL ADDRESS:	

		STREET 1:		900 THIRD AVE., 31ST FLOOR

		CITY:			NEW YORK

		STATE:			NY

		ZIP:			10022-4728




FILER:


	COMPANY DATA:	

		COMPANY CONFORMED NAME:			ZWEIG TOTAL RETURN FUND INC

		CENTRAL INDEX KEY:			0000836412

		IRS NUMBER:				133474242

		STATE OF INCORPORATION:			MD

		FISCAL YEAR END:			1231



	FILING VALUES:

		FORM TYPE:		N-2

		SEC ACT:		1933 Act

		SEC FILE NUMBER:	333-139605

		FILM NUMBER:		061295692



	BUSINESS ADDRESS:	

		STREET 1:		900 THIRD AVE., 31ST FLOOR

		CITY:			NEW YORK

		STATE:			NY

		ZIP:			10022-4728

		BUSINESS PHONE:		800-272-2700



	MAIL ADDRESS:	

		STREET 1:		900 THIRD AVE., 31ST FLOOR

		CITY:			NEW YORK

		STATE:			NY

		ZIP:			10022-4728



</SEC-HEADER>

<DOCUMENT>
<TYPE>N-2
<SEQUENCE>1
<FILENAME>y28007nv2.htm
<DESCRIPTION>FORM N-2
<TEXT>
<HTML>
<HEAD>
<TITLE>FORM N-2</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 94%; margin-left: 3%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>As filed with the Securities and Exchange Commission on
    December&#160;22, 2006</B>
</DIV>

<DIV align="right" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV align="right" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>Investment Company Act File
    <FONT style="white-space: nowrap">No.&#160;811-05620</FONT><BR>
    Securities Act File
    <FONT style="white-space: nowrap">No.&#160;333-&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;</FONT></B>
</DIV>

<CENTER style="font-size: 1pt; width: 100%; border-bottom: 2pt solid #000000"></CENTER><!-- callerid=999 iwidth=540 length=0 -->

<CENTER style="font-size: 1pt; width: 100%; border-bottom: 1pt solid #000000"></CENTER><!-- callerid=999 iwidth=540 length=0 -->

<DIV style="margin-top: 4pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><FONT style="font-size: 14pt">SECURITIES AND EXCHANGE
    COMMISSION</FONT></B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><FONT style="font-size: 12pt">WASHINGTON,&#160;D.C.
    20549</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<CENTER style="font-size: 1pt; width: 15%; border-bottom: 1pt solid #000000"></CENTER><!-- callerid=999 iwidth=540 length=84 -->

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><FONT style="font-size: 18pt"><FONT style="white-space: nowrap">FORM&#160;N-2</FONT></FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<CENTER style="font-size: 1pt; width: 15%; border-bottom: 1pt solid #000000"></CENTER><!-- callerid=999 iwidth=540 length=84 -->

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 12pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="2%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="96%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
</TR>
<TR valign="bottom">
<TD nowrap align="center" valign="top">
<DIV style="text-indent: -12pt; margin-left: 12pt">
    <B><FONT face="wingdings">&#254;</FONT></B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    <B>REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933</B>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="center" valign="top">
    <B><FONT face="wingdings">o</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    <B>Pre-effective Amendment No.</B>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="center" valign="top">
    <B><FONT face="wingdings">o</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    <B>Post-Effective Amendment No.</B>
</TD>
</TR>
<TR valign="bottom" style="line-height: 6pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="center" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    <B><FONT style="font-size: 10pt">and/or</FONT></B>
</TD>
</TR>
<TR valign="bottom" style="line-height: 6pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="center" valign="top">
    <B><FONT face="wingdings">o</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    <B>REGISTRATION STATEMENT UNDER THE INVESTMENT COMPANY ACT OF
    1940</B>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="center" valign="top">
    <B><FONT face="wingdings">&#254;</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    <B>Amendment No.&#160;10</B>
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<CENTER style="font-size: 1pt; width: 15%; border-bottom: 1pt solid #000000"></CENTER><!-- callerid=999 iwidth=540 length=84 -->

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><FONT style="font-size: 24pt">THE ZWEIG TOTAL RETURN FUND,
    INC.</FONT></B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I><FONT style="font-size: 8pt">(Exact name of Registrant as
    specified in charter)</FONT></I>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>900 Third Avenue<BR>
    New York, New York 10022<BR>
    </B><I><FONT style="font-size: 8pt">(Address of Principal
    Executive Offices)</FONT></I>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<CENTER style="font-size: 1pt; width: 15%; border-bottom: 1pt solid #000000"></CENTER><!-- callerid=999 iwidth=540 length=84 -->

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><I>Registrant&#146;s Telephone Number, including Area
    Code:<BR>
    <FONT style="white-space: nowrap">212-451-1100</FONT></I></B>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<CENTER style="font-size: 1pt; width: 15%; border-bottom: 1pt solid #000000"></CENTER><!-- callerid=999 iwidth=540 length=84 -->

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>George R. Aylward<BR>
    President<BR>
    The Zweig Total Return Fund, Inc.<BR>
    900 Third Avenue<BR>
    New York, New York 10022<BR>
    </B><I><FONT style="font-size: 8pt">(Name and Address of Agent
    for Service)</FONT></I>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">With
    Copies to:</FONT></I></B>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>Robert E. Smith,&#160;Esq.<BR>
    Katten Muchin Rosenman LLP<BR>
    575 Madison Avenue<BR>
    New York, NY 10022</B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 9pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><I>Approximate date of proposed public
    offering:&#160;&#160;</I></B>As soon as practicable after the
    effective date of this Registration Statement.
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<CENTER style="font-size: 1pt; width: 15%; border-bottom: 1pt solid #000000"></CENTER><!-- callerid=999 iwidth=540 length=84 -->

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 9pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If any securities being registered on this form will be offered
    on a delayed or continuous basis in reliance on Rule&#160;415
    under the Securities Act of 1933, other than securities offered
    in connection with a dividend reinvestment plan, check the
    following box.&#160;&#160;<FONT face="wingdings">o
    </FONT>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<CENTER style="font-size: 1pt; width: 15%; border-bottom: 1pt solid #000000"></CENTER><!-- callerid=999 iwidth=540 length=84 -->

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">CALCULATION
    OF REGISTRATION FEE</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="43%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=gutterleft -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=gutterright -->
    <TD width="13%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=03 type=gutterleft -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=03 type=gutterright -->
    <TD width="12%">&nbsp;</TD>	<!-- colindex=03 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=04 type=gutterleft -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=04 type=gutterright -->
    <TD width="12%">&nbsp;</TD>	<!-- colindex=04 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=05 type=gutterleft -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=05 type=gutterright -->
    <TD width="12%">&nbsp;</TD>	<!-- colindex=05 type=maindata -->
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom" style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt; border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt; border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-top: 3px double #000000">
    <B>Proposed Maximum<BR>
    </B>
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt; border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-top: 3px double #000000">
    <B>Proposed Maximum<BR>
    </B>
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt; border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-top: 3px double #000000">
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
    <B>Title of Securities<BR>
    </B>
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Amount Being<BR>
    </B>
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Offering Price Per<BR>
    </B>
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Aggregate Offering<BR>
    </B>
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Amount of<BR>
    </B>
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
    <B>Being Registered</B>
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Registered</B>
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Share(1)</B>
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Price</B>
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Registration Fee</B>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top" style="border-top: 1px solid #000000">
    <FONT style="font-size: 10pt">Common Stock, par value
    $0.001&#160;per share
    </FONT>
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt; border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-top: 1px solid #000000">
    <FONT style="font-size: 10pt">170,358 Shares
    </FONT>
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt; border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-top: 1px solid #000000">
    <FONT style="font-size: 10pt">$5.87
    </FONT>
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt; border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-top: 1px solid #000000">
    <FONT style="font-size: 10pt">$1,000,000
    </FONT>
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt; border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-top: 1px solid #000000">
    <FONT style="font-size: 10pt">$107.00
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom" style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom" style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom" style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom" style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom" style="border-top: 3px double #000000">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="2%"></TD>
    <TD width="98%"></TD>
</TR>

<TR valign="top" style="font-size: 9pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    (1)&#160;</TD>
    <TD align="left">
    Estimated solely for the purposes of calculating the
    registration fee in accordance with Rule&#160;457(c) under the
    Securities Act of 1933. Based on the average of the high and low
    prices for the Fund&#146;s Common Stock reported on the New York
    Stock Exchange, Inc. on December&#160;21, 2006.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 9pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>The Registrant hereby amends this Registration Statement on
    such date or dates as may be necessary to delay its effective
    date until the Registrant shall file a further amendment which
    specifically states that this Registration Statement shall
    thereafter become effective in accordance with Section&#160;8(a)
    of the Securities Act of 1933 or until this Registration
    Statement shall become effective on such date as the Securities
    and Exchange Commission, acting pursuant to said
    Section&#160;8(a), may determine.</B>
</DIV>

<DIV style="margin-top: 8pt; font-size: 1pt">&nbsp;</DIV>

<CENTER style="font-size: 1pt; width: 100%; border-bottom: 1pt solid #000000"></CENTER><!-- callerid=999 iwidth=540 length=0 -->

<CENTER style="font-size: 1pt; width: 100%; border-bottom: 2pt solid #000000"></CENTER><!-- callerid=999 iwidth=540 length=0 -->

<P align="left" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">THE ZWEIG
    TOTAL RETURN FUND, INC.<BR>
    <BR>
    <FONT style="white-space: nowrap">FORM&#160;N-2</FONT><BR>
    <BR>
    CROSS REFERENCE SHEET<BR>
    <BR>
    Pursuant to Rule&#160;481(a)<BR>
    <BR>
    </FONT></B>
</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=01 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=01 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=01 type=hang1 -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="44%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="44%">&nbsp;</TD>	<!-- colindex=03 type=maindata -->
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD colspan="2" nowrap align="left" valign="bottom">
    <B>Item<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD colspan="2" nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Number</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B><FONT style="white-space: nowrap">Form&#160;N-2</FONT></B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Location in Prospectus</B>
</DIV>
</TD>
</TR>
<TR style="line-height: 6pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom" style="line-height: 6pt">
<TD colspan="7">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD colspan="7" align="center" valign="top">
    <B><FONT style="font-size: 10pt">Part&#160;A</FONT></B>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    1.
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    <FONT style="font-size: 10pt">Outside Front Cover
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    <FONT style="font-size: 10pt">Outside Front Cover Page of
    Prospectus
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    2.
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    <FONT style="font-size: 10pt">Cover Pages; Other Offering
    Information
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    <FONT style="font-size: 10pt">Outside Front Cover of Prospectus
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    3.
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    <FONT style="font-size: 10pt">Fee Table and Synopsis
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    <FONT style="font-size: 10pt">Fund Expenses
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    4.
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    <FONT style="font-size: 10pt">Financial Highlights
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    <FONT style="font-size: 10pt">Financial Highlights
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    5.
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    <FONT style="font-size: 10pt">Plan of Distribution
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    <FONT style="font-size: 10pt">The Offer
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    6.
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    <FONT style="font-size: 10pt">Selling Shareholders
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    <FONT style="font-size: 10pt">Not Applicable
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    7.
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    <FONT style="font-size: 10pt">Use of Proceeds
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    <FONT style="font-size: 10pt">The Offer; Use of Proceeds
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    8.
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    <FONT style="font-size: 10pt">General Description of the
    Registrant
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    <FONT style="font-size: 10pt">The Fund; Market Price and Net
    Asset Value Information; Investment Objective and Policies; Risk
    Factors and Special Considerations
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    9.
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    <FONT style="font-size: 10pt">Management
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    <FONT style="font-size: 10pt">Management of the Fund; Custodian,
    Dividend Paying Agent, Transfer Agent and Registrar
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10.
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    <FONT style="font-size: 10pt">Capital Stock, Long-Term Debt, and
    Other Securities
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    <FONT style="font-size: 10pt">Distributions; Distribution
    Reinvestment and Cash Purchase Plan; Taxation; Description of
    Common Stock
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    11.
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    <FONT style="font-size: 10pt">Defaults and Arrears on Senior
    Securities
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    <FONT style="font-size: 10pt">Not Applicable
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    12.
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    <FONT style="font-size: 10pt">Legal Proceedings
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    <FONT style="font-size: 10pt">Legal Matters
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    13.
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    <FONT style="font-size: 10pt">Table of Contents of the Statement
    of Additional Information
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    <FONT style="font-size: 10pt">Table of Contents of the Statement
    of<BR>
    Additional Information
    </FONT>
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<P align="left" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=01 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=01 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=01 type=hang1 -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="44%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="44%">&nbsp;</TD>	<!-- colindex=03 type=maindata -->
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD colspan="2" nowrap align="left" valign="bottom">
    <B>Item<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD colspan="2" nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Number</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B><FONT style="white-space: nowrap">Form&#160;N-2</FONT></B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Location in SAI</B>
</DIV>
</TD>
</TR>
<TR style="line-height: 6pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom" style="line-height: 6pt">
<TD colspan="7">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD colspan="7" align="center" valign="top">
    <B><FONT style="font-size: 10pt">Part&#160;B</FONT></B>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    14.
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    <FONT style="font-size: 10pt">Cover Page
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    <FONT style="font-size: 10pt">Cover Page
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    15.
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    <FONT style="font-size: 10pt">Table of Contents
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    <FONT style="font-size: 10pt">Table of Contents
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    16.
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    <FONT style="font-size: 10pt">General Information and History
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    <FONT style="font-size: 10pt">The Fund (in Part A)
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    17.
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    <FONT style="font-size: 10pt">Investment Objectives and Policies
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    <FONT style="font-size: 10pt">Investment Objective and Policies;
    Investment Restrictions
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    18.
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    <FONT style="font-size: 10pt">Management
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    <FONT style="font-size: 10pt">Management
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    19.
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    <FONT style="font-size: 10pt">Control Persons and Principal
    Holders of Securities
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    <FONT style="font-size: 10pt">Principal Shareholders
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    20.
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    <FONT style="font-size: 10pt">Investment Advisory and Other
    Services
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    <FONT style="font-size: 10pt">Management of the Fund (in Part
    A);<BR>
    Custodian, Dividend Paying Agent, Transfer<BR>
    Agent and Registrar (in Part A)
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    21.
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    <FONT style="font-size: 10pt">Portfolio Managers
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    <FONT style="font-size: 10pt">Management of the Fund (in Part
    A);<BR>
    Portfolio Managers
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    22.
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    <FONT style="font-size: 10pt">Brokerage Allocation and Other
    Practices
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    <FONT style="font-size: 10pt">Portfolio Transactions and
    Brokerage
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    23.
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    <FONT style="font-size: 10pt">Tax Status
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    <FONT style="font-size: 10pt">Taxation
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    24.
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    <FONT style="font-size: 10pt">Financial Statements
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    <FONT style="font-size: 10pt">Financial Statements
    </FONT>
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<P align="left" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 89%; margin-left: 5%"><!-- BEGIN LOGICAL PAGE -->

<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Subject
    to Completion,
    Dated&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;,
    2006</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
    SHARES&#160;OF COMMON STOCK</B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>THE ZWEIG TOTAL RETURN FUND, INC.</B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>ISSUABLE UPON EXERCISE OF NON-TRANSFERABLE</B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>RIGHTS TO SUBSCRIBE FOR SUCH SHARES OF COMMON STOCK</B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 9pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Zweig Total Return Fund, Inc. (the &#147;Fund&#148;) is
    issuing to its shareholders of record (&#147;Record Date
    Shareholders&#148;) as of the close of business
    on&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;,
    2007 (the &#147;Record Date&#148;) non-transferable rights (the
    &#147;Rights&#148;). These Rights entitle their holders to
    subscribe for up to an aggregate
    of&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;shares
    (the &#147;Shares&#148;) of the Fund&#146;s Common Stock, par
    value $0.001&#160;per share (the &#147;Common Stock&#148;) at
    the rate of one Share of Common Stock for every five Rights held
    (the &#147;Offer&#148;). Record Date Shareholders will receive
    one non-transferable Right for each whole share of Common Stock
    held on the Record Date. Record Date Shareholders who fully
    exercise their Rights will be entitled to subscribe for
    additional shares of Common Stock pursuant to an
    over-subscription privilege described in this Prospectus (the
    &#147;Over-Subscription Privilege&#148;). The Fund may increase
    the number of shares of Common Stock subject to subscription by
    up to 25% of the Shares, or up to an
    additional&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;shares
    of Common Stock, for an aggregate total
    of&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Shares.
    Fractional Shares will not be issued upon the exercise of
    Rights. The Rights are non-transferable and, therefore, may not
    be purchased or sold. The Rights will not be admitted for
    trading on the New York Stock Exchange, Inc. (the
    &#147;NYSE&#148;) or any other exchange. See &#147;The
    Offer.&#148; THE SUBSCRIPTION PRICE PER SHARE (THE
    &#147;SUBSCRIPTION PRICE&#148;) WILL BE EQUAL TO THE LOWER OF
    THE NET ASSET VALUE PER SHARE OF THE FUND&#146;S COMMON STOCK
    (&#147;NAV&#148;) AT THE CLOSE OF BUSINESS
    ON&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;,
    2007 (THE &#147;PRICING DATE&#148;) OR 95% OF THE AVERAGE OF THE
    LAST REPORTED SALES PRICE OF A SHARE OF THE FUND&#146;S COMMON
    STOCK ON THE NYSE ON THE PRICING DATE AND THE FOUR PRECEDING
    BUSINESS DAYS.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 9pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>THE OFFER WILL EXPIRE AT 5:00&#160;P.M., NEW YORK CITY TIME,
    ON&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;,
    2007 UNLESS EXTENDED AS DESCRIBED HEREIN (THE &#147;EXPIRATION
    DATE&#148;).</B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 9pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Fund announced the Offer
    on&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;,
    2006. The Fund&#146;s Common Stock trades on the NYSE under the
    symbol &#147;ZTR.&#148; Shares issued upon the exercise of
    Rights and the Over-Subscription Privilege will be listed for
    trading on the NYSE, subject to notice of issuance. The net
    asset value per share of the Fund&#146;s Common Stock at the
    close of business
    on&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;,
    2006
    and&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;,
    2007, the Record Date, were $&#160;&#160;&#160;&#160;&#160; and
    $&#160;&#160;&#160;&#160;&#160;, respectively, and the last
    reported sales price of a share of the Fund&#146;s Common Stock
    on the NYSE on those dates were $&#160;&#160;&#160;&#160;&#160;
    and $&#160;&#160;&#160;&#160;&#160;, respectively.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 9pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Fund is a diversified, closed-end management investment
    company. Its investment objective is to seek the highest total
    return, consisting of capital appreciation and current income,
    consistent with the preservation of capital. The Fund will
    invest up to 65% of its total assets in U.S.&#160;government
    securities, non-convertible debt securities of domestic issuers
    rated among the two highest rating categories of either
    Moody&#146;s Investors Services, Inc. (&#147;Moody&#146;s&#148;)
    or Standard&#160;&#38; Poor&#146;s Corporation
    (&#147;S&#38;P&#148;) (or, if unrated, of comparable quality as
    determined by the investment adviser, Phoenix/Zweig Advisers LLC
    (the &#147;Investment Adviser&#148;)), and certain foreign
    government securities (collectively, the &#147;Bond
    Investments&#148;), and up to 50% of its total assets in equity
    securities. The Fund may, however, under certain circumstances,
    invest up to 75% of its total assets in equity securities as
    determined by the Investment Adviser. The Fund also, as part of
    its Bond Investments, may invest up to 10% of its total assets
    in non-convertible debt securities rated below the two highest
    rating categories of Moody&#146;s or S&#38;P (or, if unrated, of
    comparable quality as determined by the Investment Adviser).
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 9pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Investment Adviser is a wholly-owned subsidiary of Phoenix
    Investment Partners, Ltd., a wholly-owned investment management
    subsidiary of The Phoenix Companies, Inc., a NYSE listed
    company. The Investment Adviser uses Zweig Consulting LLC (the
    <FONT style="white-space: nowrap">&#147;Sub-Adviser&#148;)</FONT>
    to perform asset allocation research and analysis and provide
    advice thereon to the Investment Adviser. The extent of the
    Fund&#146;s investment in debt and equity securities will be
    determined primarily on the basis of asset allocation techniques
    developed by Dr.&#160;Martin E. Zweig, President of the
    <FONT style="white-space: nowrap">Sub-Adviser,</FONT>
    and his staff. The Investment Adviser (and its predecessor) has
    provided investment advisory services to the Fund since its
    inception. Dr.&#160;Zweig has been engaged in the business of
    providing investment advisory services for over 35&#160;years.
    While the Investment Adviser seeks to reduce the risks
    associated with investing in debt and equity securities by using
    these techniques, such risks cannot be eliminated. See
    &#147;Investment Objective and Policies.&#148; No assurance can
    be given that the Fund&#146;s investment objective will be
    realized. The Fund&#146;s administrator is Phoenix Equity
    Planning Corporation (the &#147;Administrator&#148;). The
    Fund&#146;s Investment Adviser,
    <FONT style="white-space: nowrap">Sub-Adviser</FONT>
    and Administrator will benefit from the Offer. See
    &#147;Management of the Fund.&#148;
</DIV>

<DIV style="margin-top: 9pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">THESE
    SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE
    SECURITIES AND<BR>
    EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION NOR HAS
    THE<BR>
    SECURITIES AND EXCHANGE COMMISSION OR ANY STATE SECURITIES
    COMMISSION<BR>
    PASSED UPON THE ACCURACY OR ADEQUACY OF THIS PROSPECTUS. ANY<BR>
    REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE.</FONT></B>
</DIV>

<DIV style="margin-top: 9pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 9pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="43%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=gutterleft -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=gutterright -->
    <TD width="17%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=03 type=gutterleft -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=03 type=gutterright -->
    <TD width="17%">&nbsp;</TD>	<!-- colindex=03 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=04 type=gutterleft -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=04 type=gutterright -->
    <TD width="17%">&nbsp;</TD>	<!-- colindex=04 type=maindata -->
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom" style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt; border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt; border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt; border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-top: 3px double #000000">
    <B>Estimated Proceeds to<BR>
    </B>
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Estimated Price<BR>
    </B>
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Registrant or<BR>
    </B>
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>to Public(1)</B>
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Sales Load</B>
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Other Persons(2)(3)</B>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top" style="border-top: 1px solid #000000">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    <FONT style="font-size: 9pt">Per Share
    </FONT>
</DIV>
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt; border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt; border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-top: 1px solid #000000">
    <FONT style="font-size: 9pt">N/A
    </FONT>
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt; border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-top: 1px solid #000000">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top" style="border-top: 1px solid #000000">
    <FONT style="font-size: 9pt">Total Maximum(4)
    </FONT>
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt; border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt; border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-top: 1px solid #000000">
    <FONT style="font-size: 9pt">N/A
    </FONT>
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt; border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-top: 1px solid #000000">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom" style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom" style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom" style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom" style="border-top: 3px double #000000">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 9pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>(Footnotes on the following page)</B>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<CENTER style="font-size: 1pt; width: 17%; border-bottom: 1pt solid #000000"></CENTER><!-- callerid=999 iwidth=480 length=84 -->

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <FONT style="font-size: 9pt">The date of this Prospectus
    is&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;,
    2006.
    </FONT>
</DIV>

<P align="left" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 9pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Upon the completion of the Offer, Record Date Shareholders who
    do not fully exercise their Rights will own a smaller
    proportional interest in the Fund than they owned prior to the
    Offer. In addition, because the Subscription Price may be less
    than the net asset value per share as of the Pricing Date, the
    Offer may result in an immediate dilution of the net asset value
    per share for all shareholders. Although it is not possible to
    state precisely the amount of such decrease in net asset value
    per share, if any, because it is not known how many Shares will
    be subscribed for, what the net asset value or market price of
    the Common Stock will be on the Pricing Date or what the
    Subscription Price will be, such dilution could be minimal or
    substantial. Any such dilution will disproportionately affect
    non-exercising shareholders. See &#147;The Offer&#148; and
    &#147;Risk Factors and Special Considerations.&#148; Except as
    described in this Prospectus, Record Date Shareholders will have
    no right to rescind their subscriptions after receipt of their
    payment for Shares by the Subscription Agent.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 9pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    This Prospectus sets forth concisely the information about the
    Fund that a prospective investor ought to know before investing.
    Investors are advised to read this Prospectus and retain it for
    future reference. A Statement of Additional Information,
    dated&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;,
    2007 (the &#147;SAI&#148;), containing additional information
    about the Fund, has been filed with the Securities and Exchange
    Commission (the &#147;Commission&#148;) and is incorporated by
    reference in its entirety into this Prospectus. The Table of
    Contents of the SAI appears on Page&#160;&#160;&#160; of this
    Prospectus.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 9pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Shareholders may obtain a copy, free of charge, of the SAI and
    the Fund&#146;s annual and semi-annual report to shareholders,
    or request other information about the Fund, from, and should
    direct all questions and inquires relating to the Offer to, the
    Fund&#146;s Information
    Agent,&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;.
    Banks and Brokers should call
    (&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;)
    collect and all other shareholders should call
    (&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;).
    The Fund makes available, free of charge, the SAI and the
    Fund&#146;s annual and semi-annual report to shareholders at
    http://www.phoenixinvestments.com. The address of the Fund is
    900 Third Avenue, New&#160;York, New&#160;York 10022, and its
    telephone number is
    <FONT style="white-space: nowrap">(212)&#160;451-1100.</FONT>
    The Commission maintains a web site<BR>
    (http://www.sec.gov) that contains the SAI and other information
    regarding the Fund.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <I><FONT style="font-family: 'Times New Roman', Times">(Footnotes
    from the previous page)</FONT></I>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 1pt; margin-left: 0%; width: 13%; align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=999 iwidth=455 length=60 -->

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<TR>
    <TD width="4%"></TD>
    <TD width="1%"></TD>
    <TD width="95%"></TD>
</TR>

<TR>
    <TD align="right" valign="top">
    <FONT style="font-size: 9pt">(1)
    </FONT></TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 9pt">Estimated, equal to the lower of
    the NAV at the close of business
    on&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;,
    2007 or 95% of the average of the last reported sales price of a
    share of the Fund&#146;s Common Stock on the NYSE
    on&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;,
    2007 and the four preceding business days.
    </FONT></TD>
</TR>

<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    <FONT style="font-size: 9pt">(2)
    </FONT></TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 9pt">Before deduction of offering
    expenses incurred by the Fund, estimated at approximately
    $&#160;&#160;&#160;&#160;&#160;.
    </FONT></TD>
</TR>

<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    <FONT style="font-size: 9pt">(3)
    </FONT></TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 9pt">The funds received by check prior
    to the final due date of this Offer will be deposited into a
    segregated interest-bearing account (which interest will be paid
    to the Fund) pending proration and distribution of the Shares.
    </FONT></TD>
</TR>

<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    <FONT style="font-size: 9pt">(4)
    </FONT></TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 9pt">Assumes
    all&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
    Shares are purchased at the Estimated Subscription Price.
    Pursuant to the Over-Subscription Privilege, the Fund may, at
    the discretion of the Board of Directors, increase the number of
    Shares subject to subscription by up to 25% of the Shares
    offered hereby. If the Fund increases the number of Shares
    subject to subscription by 25%, the Total Maximum Estimated
    Subscription Price and Estimated Proceeds to the Fund will be
    $&#160;&#160;&#160;&#160;&#160; and
    $&#160;&#160;&#160;&#160;&#160;, respectively. The offering
    expenses in connection with this offering will be charged
    against paid-in capital of the Fund.
    </FONT></TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 9pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Certain numbers in this Prospectus have been rounded for ease of
    presentation and, as a result, may not total precisely.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 9pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>INFORMATION CONTAINED HEREIN IS SUBJECT TO COMPLETION OR
    AMENDMENT. A REGISTRATION STATEMENT RELATING TO THESE SECURITIES
    HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE COMMISSION.
    THESE SECURITIES MAY NOT BE SOLD NOR MAY OFFERS TO BUY BE
    ACCEPTED PRIOR TO THE TIME THE REGISTRATION STATEMENT BECOMES
    EFFECTIVE. THIS PROSPECTUS SHALL NOT CONSTITUTE AN OFFER TO SELL
    OR THE SOLICITATION OF AN OFFER TO BUY NOR SHALL THERE BE ANY
    SALE OF THESE SECURITIES IN ANY STATE IN WHICH SUCH OFFER,
    SOLICITATION OR SALE WOULD BE LAWFUL PRIOR TO REGISTRATION OR
    QUALIFICATION UNDER THE SECURITIES LAWS OF ANY SUCH STATE.</B>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<CENTER style="font-size: 1pt; width: 18%; border-bottom: 1pt solid #000000"></CENTER><!-- callerid=999 iwidth=455 length=84 -->

<P align="left" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->
<DIV style="width: 100%; height: 9in; border-top: 1px solid #000000; padding-top: 12pt; border-right: 1px solid #000000; padding-right: 12pt; border-bottom: 1px solid #000000; padding-bottom: 12pt; border-left: 1px solid #000000; padding-left: 12pt"><!-- Begin box 1 -->
<A name='101'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">PROSPECTUS
    SUMMARY</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>The following summary is qualified in its entirety by
    reference to the more detailed information included elsewhere in
    this Prospectus. Unless otherwise indicated, the information in
    this Prospectus assumes that the allowable increase of 25% of
    the Shares offered hereby pursuant to the Over-Subscription
    Privilege will not occur.</I>
</DIV>

<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">The
    Fund</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Zweig Total Return Fund, Inc. (the &#147;Fund&#148;) is a
    diversified, closed-end management investment company registered
    under the Investment Company Act of 1940, as amended (the
    &#147;1940 Act&#148;). The Fund commenced operations in
    September 1988. The Fund&#146;s investment objective is to seek
    the highest total return, consisting of capital appreciation and
    current income, consistent with the preservation of capital. The
    Fund will invest up to 65% of its total assets in
    U.S.&#160;government securities, non-convertible debt securities
    of domestic issuers rated among the two highest rating
    categories of either Moody&#146;s Investors Services, Inc.
    (&#147;Moody&#146;s&#148;) or Standard&#160;&#38; Poor&#146;s
    Corporation (&#147;S&#38;P&#148;) (or, if unrated, of comparable
    quality as determined by the investment adviser, Phoenix/Zweig
    Advisers LLC (the &#147;Investment Adviser&#148;)), and certain
    foreign government securities (collectively, the &#147;Bond
    Investments&#148;), and up to 50% of its total assets in equity
    securities. The Fund may, however, under certain circumstances,
    invest up to 75% of its total assets in equity securities as
    determined by the Investment Adviser. The Fund also, as part of
    its Bond Investments, may invest up to 10% of its total assets
    in non-convertible debt securities rated below the two highest
    rating categories of Moody&#146;s or S&#38;P (or, if unrated, of
    comparable quality as determined by the Investment Adviser).
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Investment Adviser is a wholly-owned subsidiary of Phoenix
    Investment Partners, Ltd., a wholly-owned investment management
    subsidiary of The Phoenix Companies, Inc., a NYSE listed
    company. The Investment Adviser uses Zweig Consulting LLC (the
    <FONT style="white-space: nowrap">&#147;Sub-Adviser&#148;)</FONT>
    to perform asset allocation research and analysis and provide
    advice thereon to the Investment Adviser. The extent of the
    Fund&#146;s investment in debt and equity securities will be
    determined primarily on the basis of asset allocation techniques
    developed by Dr.&#160;Martin E. Zweig, President of the
    <FONT style="white-space: nowrap">Sub-Adviser,</FONT>
    and his staff. The Investment Adviser (and its predecessor) has
    provided investment advisory services to the Fund since its
    inception. Dr.&#160;Zweig has been engaged in the business of
    providing investment advisory services for over 35&#160;years.
    While the Investment Adviser seeks to reduce the risks
    associated with investing in debt and equity securities by using
    these techniques, the risk of investment in debt and equity
    securities cannot be eliminated. See &#147;Investment Objective
    and Policies.&#148; No assurance can be given that the
    Fund&#146;s investment objective will be realized.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Fund&#146;s outstanding Common Stock, par value
    $0.001&#160;per share (the &#147;Common Stock&#148;) is listed
    and traded on the New York Stock Exchange (the
    &#147;NYSE&#148;). The average weekly trading volume of the
    Common Stock on the NYSE during the year ended December&#160;31,
    2005
    was&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;shares
    and
    was&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;shares
    as
    of&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;,
    2006. As
    of&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;,
    2006, the net assets of the Fund were approximately
    $&#160;&#160;&#160;&#160;&#160;.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Phoenix Equity Planning Corporation (the
    &#147;Administrator&#148;) serves as the Fund&#146;s
    administrator and receives from the Fund an administrative fee
    computed at the annual rate of 0.065% of the Fund&#146;s average
    daily net assets. The Fund pays the Investment Adviser a monthly
    investment advisory fee computed at the annual rate of 0.70% of
    the Fund&#146;s average daily net assets. See &#147;Management
    of the Fund.&#148;
</DIV>

<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Terms of
    the Offer</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Fund is issuing to its shareholders of record (&#147;Record
    Date Shareholders&#148;) as of the close of business
    on&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;,
    2007 (the &#147;Record Date&#148;) non-transferable rights (the
    &#147;Rights&#148;) to subscribe for up to an aggregate
    of&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
    Shares of Common Stock (the &#147;Shares&#148;) of the Fund. The
    Fund may increase the number of shares of Common Stock subject
    to subscription by up to 25% of the Shares, or up to an
    additional&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
    Shares of Common Stock, for an aggregate total
    of&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
    Shares. Each Record Date Shareholder is being issued one Right
    for each whole share of Common Stock owned on the Record Date.
    The Rights entitle the holders thereof to subscribe for one
    Share for every five Rights held (the &#147;Offer&#148;).
    Fractional
</DIV>
</DIV><!-- End box 1 -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    1
</DIV><!-- END LOGICAL PAGE -->
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<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->
<DIV style="width: 100%; height: 9in; border-top: 1px solid #000000; padding-top: 12pt; border-right: 1px solid #000000; padding-right: 12pt; border-bottom: 1px solid #000000; padding-bottom: 12pt; border-left: 1px solid #000000; padding-left: 12pt"><!-- Begin box 1 -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Shares will not be issued upon the exercise of Rights. If a
    Record Date Shareholder&#146;s total ownership is fewer than
    five shares, such shareholder may subscribe for one Share.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Rights may be exercised at any time during the Subscription
    Period, which commences
    on&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;,
    2007 and ends at 5:00&#160;p.m. New York City time,
    on&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;,
    2007, unless extended by the Fund until 5:00&#160;p.m., New York
    City time, to a date not later
    than&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;,
    2007 (such date, as it may be extended, is referred to in this
    Prospectus as the &#147;Expiration Date&#148;). A Record Date
    Shareholder&#146;s right to acquire during the Subscription
    Period at the Subscription Price (as described below) one
    additional Share for every five Rights held is hereinafter
    referred to as the &#147;Primary Subscription.&#148; The Rights
    are evidenced by subscription certificates (the
    &#147;Subscription Certificates&#148;), which will be mailed to
    Record Date Shareholders, except as discussed in &#147;The
    Offer&#160;&#151; Foreign Restrictions.&#148;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The subscription price per share (the &#147;Subscription
    Price&#148;) will be equal to the lower of the net asset value
    per share of the Fund&#146;s Common Stock (&#147;NAV&#148;) at
    the close of business
    on&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;,
    2007 (the &#147;Pricing Date&#148;) or 95% of the average of the
    last reported sales price of a share of the Fund&#146;s Common
    Stock on the NYSE on the Pricing Date and the four preceding
    business days, unless the Offer is extended. Since the
    Expiration Date and the Pricing Date are
    each&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;,
    2007, Record Date Shareholders who choose to exercise their
    Rights will not know at the time of exercise the Subscription
    Price for Shares acquired pursuant to such exercise. Record Date
    Shareholders will have no right to rescind a purchase after
    receipt of their payment for Shares by the Fund&#146;s
    subscription agent, Computershare Trust Company, N.A.
    (&#147;Computershare&#148; or the &#147;Subscription
    Agent&#148;). There is no minimum number of Rights that must be
    exercised in order for the Offer to close.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Pursuant to the over-subscription privilege (the
    &#147;Over-Subscription Privilege&#148;), any Record Date
    Shareholder who fully exercises all Rights issued to such
    shareholder in the Primary Subscription (other than those Rights
    that cannot be exercised because they represent the right to
    acquire less than one Share) will be entitled to subscribe for
    additional Shares at the Subscription Price. Shares available,
    if any, pursuant to the Over-Subscription Privilege are subject
    to allotment and may be subject to increase, as is more fully
    discussed under &#147;The Offer&#160;&#151; Over-Subscription
    Privilege.&#148; For purposes of determining the maximum number
    of Shares a Record Date Shareholder may acquire pursuant to the
    Offer, Record Date Shareholders whose shares of Common Stock are
    held of record by Cede&#160;&#38; Co. Inc. (&#147;Cede&#148;) or
    by any other depository or nominee will be deemed to be the
    holders of the Rights that are issued to Cede or such other
    depository or nominee on their behalf.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Rights are non-transferable. Therefore, only the underlying
    Shares will be listed for trading on the NYSE or any other
    exchange.
</DIV>

<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Purpose
    of the Offer</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Board of Directors of the Fund has determined that it would
    be in the best interests of the Fund and its shareholders to
    increase the assets of the Fund available for investment,
    thereby enabling the Fund to more fully take advantage of
    investment opportunities consistent with the Fund&#146;s
    investment objective. The Fund&#146;s Board of Directors has
    voted unanimously to approve the terms of the Offer as set forth
    in this Prospectus.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In reaching its decision, the Board of Directors considered,
    among other things, advice by the Investment Adviser and the
    <FONT style="white-space: nowrap">Sub-Adviser,</FONT>
    that new funds would allow the Fund additional flexibility to
    capitalize on available investment opportunities without the
    necessity of having to sell existing portfolio securities that
    the Investment Adviser believes should be held. Proceeds from
    the Offer will allow the Investment Adviser to better take
    advantage of such existing and future investment opportunities.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Board of Directors also considered that the Offer would
    provide shareholders with an opportunity to purchase additional
    shares of the Fund below its market price. Although the Board of
    Directors believe that a well-subscribed rights offering may
    result in certain economies of scale which could reduce the
    Fund&#146;s expense ratio in future years, there is no assurance
    that by increasing the size of the Fund, the Fund&#146;s
    aggregate expenses, and correspondingly, its expense ratio, will
    be lowered. Finally, the Board of Directors considered that,
    because the Subscription Price per Share may be less than the
    net asset value per share on the
</DIV>
</DIV><!-- End box 1 -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    2
</DIV><!-- END LOGICAL PAGE -->
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->
<DIV style="width: 100%; height: 9in; border-top: 1px solid #000000; padding-top: 12pt; border-right: 1px solid #000000; padding-right: 12pt; border-bottom: 1px solid #000000; padding-bottom: 12pt; border-left: 1px solid #000000; padding-left: 12pt"><!-- Begin box 1 -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Pricing Date, the Offer may result in dilution of the
    Fund&#146;s net asset value per share. The Board of Directors
    believes that the factors in favor of the Offer outweigh this
    possible dilution. See &#147;Risk Factors and Special
    Considerations&#160;&#151; Dilution&#160;&#151; Net Asset Value
    and Non-Participation in the Offer.&#148;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Investment Adviser,
    <FONT style="white-space: nowrap">Sub-Adviser</FONT>
    and Administrator will benefit from the Offer because their fees
    are based on the average net assets of the Fund. It is not
    possible to state precisely the amount of additional
    compensation the Investment Adviser,
    <FONT style="white-space: nowrap">Sub-Adviser</FONT>
    or Administrator will receive as a result of the Offer because
    it is not known how many Shares will be subscribed for and
    because the proceeds of the Offer will be invested in additional
    portfolio securities, which will fluctuate in value. See
    &#147;Management of the Fund.&#148;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>The information agent (the &#147;Information Agent&#148;) for
    the Offer is:</I>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<CENTER style="font-size: 1pt; width: 31%; border-bottom: 1pt solid #000000"></CENTER><!-- callerid=999 iwidth=455 length=144 -->

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <FONT style="font-family: 'Times New Roman', Times">Banks and
    Brokers Call Collect:
    </FONT>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (&#160;&#160;&#160;&#160;&#160;)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
</DIV>

<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <FONT style="font-family: 'Times New Roman', Times">All Others
    Call Toll-Free:
    </FONT>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (&#160;&#160;&#160;&#160;&#160;)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Shareholders may also contact their brokers or nominees for
    information with respect to the Offer.
</DIV>
</DIV><!-- End box 1 -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    3
</DIV><!-- END LOGICAL PAGE -->
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<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->
<DIV style="width: 100%; height: 9in; border-top: 1px solid #000000; padding-top: 12pt; border-right: 1px solid #000000; padding-right: 12pt; border-bottom: 1px solid #000000; padding-bottom: 12pt; border-left: 1px solid #000000; padding-left: 12pt"><!-- Begin box 1 -->

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Important
    Dates to Remember</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="67%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="29%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Event</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Date</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Record Date
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;,
    2007
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Subscription Period
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;,
    2007
    to&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;,
    2007
</TD>
<TD nowrap align="left" valign="bottom">
    *
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Expiration Date and Pricing Date
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;,
    2007
</TD>
<TD nowrap align="left" valign="bottom">
    *
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Subscription Certificates and
    Payment for Shares Due+
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;,
    2007
</TD>
<TD nowrap align="left" valign="bottom">
    *
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Notice of Guaranteed Delivery Due+
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;,
    2007
</TD>
<TD nowrap align="left" valign="bottom">
    *
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Subscription Certificates and
    Payment for Guarantees of Delivery Due
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;,
    2007
</TD>
<TD nowrap align="left" valign="bottom">
    *
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Confirmation to Participants
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;,
    2007
</TD>
<TD nowrap align="left" valign="bottom">
    *
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Final Payment for Shares
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;,
    2007
</TD>
<TD nowrap align="left" valign="bottom">
    *
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 1pt; margin-left: 0%; width: 13%; align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=999 iwidth=455 length=60 -->

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<TR>
    <TD width="1%"></TD>
    <TD width="1%"></TD>
    <TD width="98%"></TD>
</TR>

<TR>
    <TD align="right" valign="top">
    * </TD>
    <TD></TD>
    <TD valign="bottom">
    Unless the Offer is extended to a date not later
    than&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;,
    2007.</TD>
</TR>

<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    + </TD>
    <TD></TD>
    <TD valign="bottom">
    Record Date Shareholders exercising Rights must deliver to the
    Subscription Agent by the Expiration Date either (i)&#160;the
    Subscription Certificate together with payment or (ii)&#160;a
    Notice of Guaranteed Delivery.</TD>
</TR>

</TABLE>

<DIV style="margin-top: 15pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Risk
    Factors and Special Considerations</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The following summarizes certain matters that should be
    considered, among others, in connection with the Offer. This
    Prospectus contains certain forward-looking statements. Actual
    results could differ materially from those projected in the
    forward-looking statements as a result of certain uncertainties
    set forth below and elsewhere in this Prospectus.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<TR>
    <TD width="36%"></TD>
    <TD width="1%"></TD>
    <TD width="63%"></TD>
</TR>

<TR>
    <TD valign="top">
    Dilution&#160;&#151; Net Asset Value and
    <FONT style="white-space: nowrap">Non-Participation</FONT>
    in the Offer </TD>
    <TD></TD>
    <TD valign="top">
    Record Date Shareholders who do not fully exercise their Rights
    will, upon the completion of the Offer, own a smaller
    proportional interest in the Fund than they owned prior to the
    Offer. In addition, an immediate dilution of the net asset value
    per share may be experienced by all shareholders as a result of
    the Offer because the Subscription Price per Share may be less
    than the then current net asset value per share, and the number
    of shares outstanding after the Offer may increase in greater
    percentage than the increase in the size of the Fund&#146;s
    assets. Although it is not possible to state precisely the
    amount of such decrease in net asset value per share, if any,
    because it is not known at this time what the Subscription Price
    will be, what the net asset value per share will be on the
    Expiration Date, or what proportion of the Shares will be
    subscribed for, such dilution could be minimal or substantial.
    For example, assuming (i)&#160;all Rights are exercised,
    (ii)&#160;the Fund&#146;s net asset value on the Expiration Date
    is $&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
    per share (the net asset value per share
    on&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;,
    2007), and (iii)&#160;the Subscription Price is
    $&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;per
    share (equal to the lower of the NAV per share of the
    Fund&#146;s Common Stock at the close of business
    on&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;,
    2007 or 95% of the average of the last reported sale price per
    share of the Fund&#146;s Common Stock on the NYSE
    on&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;,
    2007 and the four preceding business days), then the Fund&#146;s
    net asset value per share would be reduced by approximately
    $&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
    per share or&#160;&#160;&#160;&#160;&#160;%.</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    Certain Investment Strategies </TD>
    <TD></TD>
    <TD valign="top">
    The extent of the Fund&#146;s investment in debt and equity
    securities will be determined primarily on the basis of asset
    allocation techniques developed by Dr.&#160;Martin E. Zweig,
    President of the Sub-Adviser, and his staff. While the
    Investment Adviser seeks to reduce the risks associated with
    investing in debt and equity </TD>
</TR>

</TABLE>
</DIV><!-- End box 1 -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    4
</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->
<DIV style="width: 100%; height: 9in; border-top: 1px solid #000000; padding-top: 12pt; border-right: 1px solid #000000; padding-right: 12pt; border-bottom: 1px solid #000000; padding-bottom: 12pt; border-left: 1px solid #000000; padding-left: 12pt"><!-- Begin box 1 -->

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<TR>
    <TD width="36%"></TD>
    <TD width="1%"></TD>
    <TD width="63%"></TD>
</TR>

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="bottom">
    securities by using these techniques, the risk of investment in
    debt and equity securities cannot be eliminated. There is no
    assurance that these asset allocation techniques will provide
    protection from the risks of debt or equity investment, enable
    the Fund to be invested consistent with the major trends of the
    market or enable the Fund to achieve its investment objective of
    capital appreciation. See &#147;Investment Objective and
    Policies&#160;&#151; Investment Objective.&#148; In addition,
    although the Investment Adviser believes that the special
    investment methods discussed in this Prospectus under
    &#147;Investment Objectives and Policies&#160;&#151; Special
    Investment Methods&#148; (including purchasing and selling, when
    such use is deemed appropriate, stock index and other futures
    contracts and purchasing options on such futures; purchasing and
    writing listed put and call security options and options on
    stock indexes; short sales of securities; borrowing from banks
    to purchase securities; investing in securities of exchange
    traded funds, foreign issuers and closed-end investment
    companies; and lending portfolio securities to brokers, dealers,
    banks or other recognized institutional borrowers of securities)
    will further the Fund&#146;s investment objective of capital
    appreciation and reduce losses that might otherwise occur during
    a time of general decline in stock prices, no assurance can be
    given that these investment methods will achieve this result.
    These methods may subject an investor in the Fund to greater
    than average risks and costs.</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    Certain Bond Investments </TD>
    <TD></TD>
    <TD valign="top">
    The Fund, as part of its Bond Investments, may invest up to 10%
    of its total assets in non-convertible debt securities rated
    below the two highest rating categories of Moody&#146;s or
    S&#38;P (or, if unrated, of comparable quality as determined by
    the Investment Adviser). Generally, securities rated below
    investment grade (high yield-high risk fixed income securities
    &#151; also sometimes referred to as junk bonds) have a greater
    chance that the issuer will be unable to make scheduled interest
    or principal payments when due. Furthermore, to the extent that
    the Fund may invest in such high yield-high risk fixed income
    securities, this will entail greater price volatility and credit
    and interest rate risk than investment-grade securities.
    Analysis of the creditworthiness of high yield-high risk issuers
    is more complex than for higher-rated securities, making it more
    difficult for the Investment Adviser to accurately predict risk.
    If the Fund pursues missed interest or principal payments, there
    is a risk that the Fund&#146;s expenses could increase. In
    addition, lower-rated securities may not trade as often and may
    be less liquid than higher-rated securities.</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    Unrealized Appreciation </TD>
    <TD></TD>
    <TD valign="top">
    As of December&#160;31, 2005, there was
    $&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; or
    approximately
    $&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;per
    share of net unrealized appreciation in the Fund&#146;s net
    assets of
    $&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;;
    if realized and distributed, or deemed distributed, such gains
    would, in general, be taxable to shareholders, including holders
    at that time of Shares acquired upon the exercise of Rights. See
    &#147;Taxation.&#148;</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    Discount From Net Asset Value </TD>
    <TD></TD>
    <TD valign="top">
    The Fund&#146;s shares of Common Stock have traded in the market
    above, at and below net asset value since the commencement of
    the Fund&#146;s operations in September 1988. The Fund cannot
    predict </TD>
</TR>

</TABLE>
</DIV><!-- End box 1 -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    5
</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->
<DIV style="width: 100%; height: 9in; border-top: 1px solid #000000; padding-top: 12pt; border-right: 1px solid #000000; padding-right: 12pt; border-bottom: 1px solid #000000; padding-bottom: 12pt; border-left: 1px solid #000000; padding-left: 12pt"><!-- Begin box 1 -->

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<TR>
    <TD width="36%"></TD>
    <TD width="1%"></TD>
    <TD width="63%"></TD>
</TR>

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="bottom">
    whether the Fund&#146;s Common Stock will in the future trade at
    a premium to or discount from net asset value. The risk of the
    Common Stock trading at a discount is a risk separate from a
    decline in the Fund&#146;s net asset value. See &#147;Market
    Price and Net Asset Value Information&#148; in this Prospectus
    and &#147;Net Asset Value&#148; in the Statement of Additional
    Information (the &#147;SAI&#148;).</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    Distributions </TD>
    <TD></TD>
    <TD valign="top">
    The Fund&#146;s policy is to make monthly distributions equal to
    0.83% of its net asset value (10% on an annualized basis). If,
    for any monthly distribution, net investment income and net
    realized short-term capital gains are less than the amount of
    the distribution, the difference will be distributed from the
    Fund&#146;s assets. The Fund&#146;s final distribution for each
    calendar year will include any remaining net investment income
    and net realized short-term capital gains deemed, for Federal
    income tax purposes, undistributed during the year, as well as
    all net long-term capital gains realized during the year. If,
    for any calendar year, the total distributions exceed net
    investment income and net realized capital gains, the excess,
    distributed from the Fund&#146;s assets, will generally be
    treated as a tax-free return of capital (up to the amount of the
    shareholder&#146;s tax basis in his or her shares). The amount
    treated as a tax-free return of capital will reduce a
    shareholder&#146;s adjusted basis in his or her shares, thereby
    increasing his or her potential gain or reducing his or her
    potential loss on the sale of his or her shares. Pursuant to the
    requirements of the 1940 Act and other applicable laws, a notice
    will accompany each monthly distribution with respect to the
    estimated source of the distribution made. Such distribution
    policy may, under certain circumstances, have certain adverse
    consequences to the Fund and its shareholders. The Fund has
    capital loss carryovers in the amount of
    $&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; as
    of December&#160;31, 2005. Capital loss carryovers will reduce
    or, possibly, eliminate the Fund&#146;s taxable long-term
    capital gains in the year(s) to which such losses are carried,
    but will not reduce the Fund&#146;s current earnings and profits
    in such year(s). Consequently, a greater portion of the
    Fund&#146;s dividend distributions in the year(s) to which the
    Fund carries and applies its capital loss carryovers may be
    taxable to shareholders as ordinary income dividends than would
    be the case if the Fund did not have capital loss carryovers.
    Moreover, to the extent that such ordinary income dividends are
    paid out of capital gains or other non-dividend income of the
    Fund, they might not qualify for the 15% preferential tax rate.</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="top">
    The Fund also might make distributions to shareholders that
    exceed the Fund&#146;s current earnings and profits. In that
    event, because the Fund does not have positive accumulated
    earnings and profits, the excess distributions will be a
    non-taxable return of capital to a shareholder to the extent the
    distribution does not exceed the shareholder&#146;s tax basis in
    its Fund shares, but will also reduce the shareholder&#146;s tax
    basis in its Fund shares.</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="top">
    In the event the Fund distributes amounts in excess of its net
    investment income and net realized capital gains, such
    distributions will decrease the Fund&#146;s total assets and,
    therefore, have the likely effect of increasing the Fund&#146;s
    expense ratio. In addition, in order </TD>
</TR>

</TABLE>
</DIV><!-- End box 1 -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    6
</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->
<DIV style="width: 100%; height: 9in; border-top: 1px solid #000000; padding-top: 12pt; border-right: 1px solid #000000; padding-right: 12pt; border-bottom: 1px solid #000000; padding-bottom: 12pt; border-left: 1px solid #000000; padding-left: 12pt"><!-- Begin box 1 -->

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<TR>
    <TD width="36%"></TD>
    <TD width="1%"></TD>
    <TD width="63%"></TD>
</TR>

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="bottom">
    to make such distributions, the Fund may have to sell a portion
    of its investment portfolio at a time when independent
    investment judgment might not dictate such action. Shares
    purchased pursuant to the Offer will be issued after the record
    date for the monthly distribution declared
    in&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;,
    and, accordingly, the Fund will not pay a monthly distribution
    with respect to such Shares until the distribution to be
    declared and paid in the next month.</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    Anti-takeover Provisions </TD>
    <TD></TD>
    <TD valign="top">
    The Fund has provisions in its Articles of Incorporation and
    <FONT style="white-space: nowrap">By-Laws</FONT> that
    may have the effect of limiting the ability of other entities or
    persons to acquire control of the Fund, to cause it to engage in
    certain transactions or to modify its structure. The Board of
    Directors is divided into three classes. At the annual meeting
    of shareholders each year, the term of one class will expire and
    directors will be elected to serve in that class for terms of
    three years. This provision could delay for up to two years the
    replacement of a majority of the Board of Directors.</TD>
</TR>

</TABLE>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">FUND&#160;EXPENSES</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="92%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="4%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <B><FONT style="font-size: 10pt">Shareholder Transaction
    Expenses</FONT></B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <FONT style="font-size: 10pt">Sales Load
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    N/A
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <B><FONT style="font-size: 10pt">Annual Expenses
    </FONT></B><FONT style="font-size: 10pt">(as a percentage of the
    Fund&#146;s net assets)(1)
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <FONT style="font-size: 10pt">Management and Administration Fees
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.765%
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <FONT style="font-size: 10pt">Other Expenses
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    %
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Total Annual Expenses(2)
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    %
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 1pt; margin-left: 0%; width: 13%; align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=999 iwidth=455 length=60 -->

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<TR>
    <TD width="4%"></TD>
    <TD width="1%"></TD>
    <TD width="95%"></TD>
</TR>

<TR>
    <TD align="right" valign="top">
    (1) </TD>
    <TD></TD>
    <TD valign="bottom">
    Includes fees payable under the Investment Advisory Agreement
    and Administration Agreement (as defined in this Prospectus).
    These fees are calculated on the basis of the Fund&#146;s
    average net assets. The Investment Adviser is responsible for
    the payment of
    <FONT style="white-space: nowrap">sub-advisory</FONT>
    fees to the
    <FONT style="white-space: nowrap">Sub-Adviser.</FONT>
    &#147;Other Expenses&#148; have been estimated for the current
    fiscal year. See &#147;Management of the Fund.&#148;</TD>
</TR>

<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (2) </TD>
    <TD></TD>
    <TD valign="bottom">
    The indicated&#160;&#160;% expense ratio assumes that the Offer
    (including the Over-Subscription Privilege) is fully subscribed
    and assumes estimated net proceeds from the Offer of
    approximately $&#160;&#160;&#160;&#160;&#160;&#160;million
    (assuming an estimated Subscription Price of
    $&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;per
    share). Other expenses for the fiscal year ended
    December&#160;31, 2005 were&#160;&#160;% as a percentage of
    average net assets.</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    THE FOREGOING FEE TABLE IS INTENDED TO ASSIST
    FUND&#160;INVESTORS IN UNDERSTANDING THE VARIOUS COSTS AND
    EXPENSES THAT AN INVESTOR IN THE FUND&#160;WILL BEAR DIRECTLY OR
    INDIRECTLY.
</DIV>
</DIV><!-- End box 1 -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    7
</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->
<DIV style="width: 100%; height: 9in; border-top: 1px solid #000000; padding-top: 12pt; border-right: 1px solid #000000; padding-right: 12pt; border-bottom: 1px solid #000000; padding-bottom: 12pt; border-left: 1px solid #000000; padding-left: 12pt"><!-- Begin box 1 -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">EXAMPLE</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    An investor would directly or indirectly pay the following
    expense on a $1,000 investment in the Fund, assuming a 5% annual
    return throughout the periods:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=01 type=lead -->
    <TD width="24%" align="right">&nbsp;</TD>	<!-- colindex=01 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=01 type=hang1 -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="20%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="20%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="20%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD colspan="2" nowrap align="center" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>One Year</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Three Years</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Five Years</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Ten Years</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">

</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    This hypothetical example assumes that all dividends and other
    distributions are reinvested at net asset value and that
    the&#160;&#160;% expense ratio listed under Total Annual
    Expenses remains the same in the years shown. The above tables
    and the assumption in this example of a 5% annual return are
    required by regulations of the Securities and Exchange
    Commission (the &#147;Commission&#148;) applicable to all
    investment companies; the assumed 5% annual return is not a
    prediction of, and does not represent, the projected or actual
    performance of the Fund&#146;s Shares. For a more complete
    description of certain of the Fund&#146;s costs and expenses,
    see &#147;Management of the Fund&#160;&#151; Investment Adviser
    and
    <FONT style="white-space: nowrap">Sub-Adviser;&#160;&#151;</FONT>
    Investment Advisory Agreement; and&#160;&#151;
    Administrator&#148; in this Prospectus and &#147;Expenses&#148;
    and &#147;Portfolio Transactions and Brokerage&#148; in the SAI.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>This example should not be considered a representation of
    future expenses. The Fund&#146;s actual expenses may be greater
    or less than those shown.</B>
</DIV>
</DIV><!-- End box 1 -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    8
</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->
<DIV style="width: 100%; height: 9in; border-top: 1px solid #000000; padding-top: 12pt; border-right: 1px solid #000000; padding-right: 12pt; border-bottom: 1px solid #000000; padding-bottom: 12pt; border-left: 1px solid #000000; padding-left: 12pt"><!-- Begin box 1 -->
<A name='102'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">FINANCIAL
    HIGHLIGHTS</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The table below sets forth certain specified information for a
    share of the Fund&#146;s Common Stock outstanding throughout
    each period presented. This information is derived from the
    financial and accounting records of the Fund. The financial
    highlights for the fiscal year ended December&#160;31, 2005 and
    the prior nine years have been audited by PricewaterhouseCoopers
    LLP, independent accountants, whose reports thereon were
    unqualified. The financial statements and notes thereto,
    together with the report of independent accountants has been
    incorporated by reference in the SAI and are available without
    charge upon written request to the Fund&#146;s Administrator,
    Phoenix Equity Planning Corporation, One American Row, Hartford,
    CT 06102.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 8pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="41%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="2%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="2%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="2%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=05 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=05 type=lead -->
    <TD width="2%" align="right">&nbsp;</TD>	<!-- colindex=05 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=05 type=hang1 -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=06 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=06 type=lead -->
    <TD width="2%" align="right">&nbsp;</TD>	<!-- colindex=06 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=06 type=hang1 -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=07 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=07 type=lead -->
    <TD width="2%" align="right">&nbsp;</TD>	<!-- colindex=07 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=07 type=hang1 -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=08 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=08 type=lead -->
    <TD width="2%" align="right">&nbsp;</TD>	<!-- colindex=08 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=08 type=hang1 -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=09 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=09 type=lead -->
    <TD width="2%" align="right">&nbsp;</TD>	<!-- colindex=09 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=09 type=hang1 -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=10 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=10 type=lead -->
    <TD width="2%" align="right">&nbsp;</TD>	<!-- colindex=10 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=10 type=hang1 -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=11 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=11 type=lead -->
    <TD width="2%" align="right">&nbsp;</TD>	<!-- colindex=11 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=11 type=hang1 -->
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="38" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Years Ended December&#160;31,</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2005</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2004</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2003</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2002</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2001</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2000</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>1999</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>1998</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>1997</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>1996</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    <B><FONT style="font-size: 8pt">Per Share Data:</FONT></B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    <FONT style="font-size: 8pt">Net asset value, beginning of year
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;&#160;&#160;&#160;&#160;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;&#160;&#160;&#160;&#160;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;&#160;&#160;&#160;&#160;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;&#160;&#160;&#160;&#160;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;&#160;&#160;&#160;&#160;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;&#160;&#160;&#160;&#160;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;&#160;&#160;&#160;&#160;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;&#160;&#160;&#160;&#160;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;&#160;&#160;&#160;&#160;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;&#160;&#160;&#160;&#160;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    <B><FONT style="font-size: 8pt">Income From Investment
    Operations:</FONT></B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    <FONT style="font-size: 8pt">Net investment income
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    <FONT style="font-size: 8pt">Net realized and unrealized
    gains(losses) on investments
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    <FONT style="font-size: 8pt">Total from investment operations
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    <B><FONT style="font-size: 8pt">Dividends and
    Distributions:</FONT></B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    <FONT style="font-size: 8pt">Dividends from net investment income
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    <FONT style="font-size: 8pt">Distributions from net realized
    gains on investments
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    <FONT style="font-size: 8pt">Tax return of capital
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    <FONT style="font-size: 8pt">Total Dividends and Distributions
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    <FONT style="font-size: 8pt">Effect on net asset value as a
    result of rights offering*
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 16pt">
    <FONT style="font-size: 8pt">Net asset value, end of year
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;&#160;&#160;&#160;&#160;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;&#160;&#160;&#160;&#160;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;&#160;&#160;&#160;&#160;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;&#160;&#160;&#160;&#160;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;&#160;&#160;&#160;&#160;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;&#160;&#160;&#160;&#160;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;&#160;&#160;&#160;&#160;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;&#160;&#160;&#160;&#160;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;&#160;&#160;&#160;&#160;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;&#160;&#160;&#160;&#160;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 16pt">
    <FONT style="font-size: 8pt">Market value, end of year**
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;&#160;&#160;&#160;&#160;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;&#160;&#160;&#160;&#160;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;&#160;&#160;&#160;&#160;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;&#160;&#160;&#160;&#160;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;&#160;&#160;&#160;&#160;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;&#160;&#160;&#160;&#160;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;&#160;&#160;&#160;&#160;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;&#160;&#160;&#160;&#160;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;&#160;&#160;&#160;&#160;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;&#160;&#160;&#160;&#160;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    <FONT style="font-size: 8pt">Total investment return***
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">

</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">

</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">

</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">

</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">

</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">

</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">

</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">

</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">

</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
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</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    <B><FONT style="font-size: 8pt">Ratios/Supplemental
    Data:</FONT></B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
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&nbsp;
</TD>
<TD>
&nbsp;
</TD>
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&nbsp;
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</TD>
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&nbsp;
</TD>
<TD>
&nbsp;
</TD>
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&nbsp;
</TD>
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&nbsp;
</TD>
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&nbsp;
</TD>
<TD>
&nbsp;
</TD>
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&nbsp;
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</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    <FONT style="font-size: 8pt">Net assets, end of year (in
    thousands)
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
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</TD>
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    &#160;&#160;&#160;&#160;&#160;
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&nbsp;
</TD>
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</TD>
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&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    <FONT style="font-size: 8pt">Ratio of expenses to average net
    assets (excluding dividends on short sales)
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">

</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">

</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">

</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">

</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">

</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">

</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">

</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">

</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">

</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    <FONT style="font-size: 8pt">Ratio of net investment income to
    average net assets
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">

</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">

</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">

</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">

</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">

</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">

</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">

</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">

</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">

</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    <FONT style="font-size: 8pt">Portfolio turnover rate
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">

</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">

</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">

</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">

</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">

</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">

</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">

</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">

</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">

</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    <FONT style="font-size: 8pt">Average commission rate per share
    on portfolio transactions
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 1pt; margin-left: 0%; width: 13%; align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=999 iwidth=455 length=60 -->

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<TR>
    <TD width="5%"></TD>
    <TD width="1%"></TD>
    <TD width="94%"></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    * </TD>
    <TD></TD>
    <TD valign="bottom">
    Shares were sold at a 5% discount from the average market price.</TD>
</TR>

<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="left" valign="top">
    ** </TD>
    <TD></TD>
    <TD valign="bottom">
    Closing Price&#160;&#151; New York Stock Exchange, Inc.</TD>
</TR>

<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="left" valign="top">
    *** </TD>
    <TD></TD>
    <TD valign="bottom">
    Total investment return is calculated assuming a purchase of
    common stock on the opening of the first business day and a sale
    on the closing of the last business day of each period reported.
    Dividends and distributions, if any, are assumed for the
    purposes of this calculation, to be reinvested at prices
    obtained under the Fund&#146;s Distribution Reinvestment and
    Cash Purchase Plan. Generally, total investment return based on
    net asset value will be higher than total investment return
    based on market value in periods where there is an increase in
    the discount or a decrease in the premium of the market value to
    the net assets from the beginning to the end of such years.
    Conversely, total investment return based on net asset value
    will be lower than total investment return based on market value
    in periods where there is a decrease in the discount or an
    increase in the premium of the market value to the net asset
    value from the beginning to end of such periods.</TD>
</TR>

</TABLE>
</DIV><!-- End box 1 -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    9
</DIV><!-- END LOGICAL PAGE -->
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<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->
<A name='103'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">THE
    OFFER</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Terms of
    the Offer</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Fund is issuing to the Record Date Shareholders the Rights
    to subscribe for up to an aggregate
    of&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
    Shares. The Fund may increase the number of shares of Common
    Stock subject to subscription by up to 25% of the Shares, or up
    to an
    additional&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
    Shares, for an aggregate total
    of&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
    Shares. Each Record Date Shareholder is being issued one Right
    for each whole share of Common Stock owned on the Record Date.
    The Rights entitle the holders thereof to subscribe for one
    Share for every five Rights held (1&#160;for 5). Fractional
    Shares will not be issued upon the exercise of Rights. A Record
    Date Shareholder whose total ownership is fewer than five shares
    of Common Stock and, accordingly, receives fewer than five
    Rights will be able to subscribe for one Share upon the exercise
    of all of such Rights received and, if he or she subscribes for
    one Share, may subscribe for additional Shares pursuant to the
    Over-Subscription Privilege. Record Date Shareholders who
    otherwise have remaining fewer than five Rights will not be able
    to purchase a Share upon the exercise of such Rights and will
    not be entitled to receive any cash in lieu thereof, although
    such Record Date Shareholders may subscribe for additional
    Shares pursuant to the Over-Subscription Privilege.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Rights may be exercised at any time during the Subscription
    Period, which commences
    on&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;,
    2007 and ends at 5:00&#160;p.m. New York City time,
    on&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;,
    2007, unless extended by the Fund until 5:00&#160;p.m., New York
    City time, to a date not later
    than&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;,
    2007. See &#147;Expiration of the Offer&#148; below. The Rights
    are evidenced by Subscription Certificates, which will be mailed
    to Record Date Shareholders, except as discussed below under
    &#147;Foreign Restrictions.&#148;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Any Record Date Shareholder who fully exercises all Rights
    issued to such shareholder in the Primary Subscription will be
    entitled to subscribe for additional Shares at the Subscription
    Price pursuant to the terms of the Over-Subscription Privilege,
    as described below. Shares available, if any, pursuant to the
    Over-Subscription Privilege are subject to allotment and may be
    subject to increase, as is more fully discussed below under
    &#147;Over-Subscription Privilege.&#148; For purposes of
    determining the maximum number of Shares a shareholder may
    acquire pursuant to the Offer, Record Date Shareholders whose
    shares of Common Stock are held of record by Cede or by any
    other depository or nominee will be deemed to be the holders of
    the Rights that are issued to Cede or such other depository or
    nominee on their behalf.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Purpose
    of the Offer</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Board of Directors of the Fund has determined that it would
    be in the best interests of the Fund and its shareholders to
    increase the assets of the Fund available for investment,
    thereby enabling the Fund to more fully take advantage of
    investment opportunities consistent with the Fund&#146;s
    investment objective. The Fund&#146;s Board of Directors has
    voted unanimously to approve the terms of the Offer as set forth
    in this Prospectus.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In reaching its decision, the Board of Directors considered,
    among other things, advice by the Investment Adviser and the
    <FONT style="white-space: nowrap">Sub-Adviser</FONT>
    that new funds would allow the Fund additional flexibility to
    capitalize on available investment opportunities without the
    necessity of having to sell existing portfolio securities that
    the Investment Adviser believes should be held. Proceeds from
    the Offer will allow the Investment Adviser to better take
    advantage of such existing and future investment opportunities.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Board of Directors also considered that the Offer would
    provide shareholders with an opportunity to purchase additional
    shares of the Fund below its market price. The Board of
    Directors also believes that a well-subscribed rights offering
    may result in certain economies of scale which could reduce the
    Fund&#146;s expense ratio in future years. However, there is no
    assurance that by increasing the size of the Fund, the
    Fund&#146;s aggregate expenses, and correspondingly, its expense
    ratio, will be lowered. Finally, the Board of Directors
    considered that, because the Subscription Price per Share may be
    less than the net asset value per share on the Pricing Date, the
    Offer may result in dilution of the Fund&#146;s net asset value
    per share. The Board of Directors believes that the factors in
    favor of the Offer outweigh this possible dilution. See
    &#147;Risk Factors and Special Considerations&#160;&#151;
    <FONT style="white-space: nowrap">Dilution-Net</FONT>
    Asset Value and Non-Participation in the Offer.&#148;
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    10
</DIV><!-- END LOGICAL PAGE -->
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<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Investment Adviser,
    <FONT style="white-space: nowrap">Sub-Adviser</FONT>
    and Administrator will benefit from the Offer because their fees
    are based on the average net assets of the Fund. It is not
    possible to state precisely the amount of additional
    compensation the Investment Adviser,
    <FONT style="white-space: nowrap">Sub-Adviser</FONT>
    or Administrator will receive as a result of the Offer because
    it is not known how many Shares will be subscribed for and
    because the proceeds of the Offer will be invested in additional
    portfolio securities, which will fluctuate in value. See
    &#147;Management of the Fund.&#148;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Fund may, in the future and at its discretion, choose to
    make additional rights offerings from time to time for a number
    of shares and on terms that may or may not be similar to the
    Offer. Any such future rights offerings will be made in
    accordance with the then applicable requirements of the 1940 Act
    and the Securities Act of 1933, as amended.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Over-Subscription
    Privilege</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    To the extent Record Date Shareholders do not exercise all of
    the Rights issued to them, any underlying Shares represented by
    such Rights will be offered by means of the Over-Subscription
    Privilege to those Record Date Shareholders who have exercised
    all of the Rights issued to them and who wish to acquire more
    than the number of Shares to which they are entitled. Only
    Record Date Shareholders who exercise all the Rights issued to
    them may indicate on the Subscription Certificate, which they
    submit with respect to the exercise of the Rights issued to
    them, how many Shares they desire to purchase pursuant to the
    Over-Subscription Privilege. If sufficient Shares remain after
    completion of the Primary Subscription, all over-subscription
    requests will be honored in full. If sufficient Shares are not
    available to honor all over-subscription requests, the Fund may,
    at the discretion of the Board of Directors, issue shares of
    Common Stock up to an additional 25% of the Shares available
    pursuant to the Offer,
    or&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
    additional shares of Common Stock in order to cover such
    over-subscription requests. Regardless of whether the Fund
    issues additional Shares pursuant to the Offer and to the extent
    Shares are not available to honor all over-subscription
    requests, the available Shares will be allocated among those who
    over-subscribe based on the number of shares of Common Stock
    owned by them on the Record Date. This allocation process may
    involve a series of allocations in order to assure that the
    total number of Shares available for over-subscription is
    distributed, as nearly as practicable, on a pro rata basis. The
    Fund will not offer to sell in connection with the Offer any
    Shares that are not subscribed for pursuant to the Primary
    Subscription or the Over-Subscription Privilege.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Subscription
    Price</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Subscription Price for the Shares to be issued pursuant to
    the Offer will be equal to the lower of the NAV at the close of
    business
    on&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;,
    2007 (the &#147;Pricing Date&#148;) or 95% of the average of the
    last reported sales price of a share of the Fund&#146;s Common
    Stock on the NYSE on the Pricing Date and the four preceding
    business days, unless the Offer is extended. For example, if the
    average of the last reported sales price of a share on the NYSE
    on the Pricing Date and the four preceding business days of a
    share of the Fund&#146;s Common Stock is $5.50, the Subscription
    Price will
    be&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
    (equal to the lower of the NAV or 95% of $5.50). The
    Subscription Price may be higher or lower than the Fund&#146;s
    then current net asset value per share.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Fund announced the Offer
    on&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;,
    2006. The net asset value per share of Common Stock at the close
    of business
    on&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;,
    2007
    and&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;,
    2007, was $&#160;&#160;&#160;&#160;&#160; and
    $&#160;&#160;&#160;&#160;&#160;, respectively, and the last
    reported sales prices of a share of the Fund&#146;s Common Stock
    on the NYSE on those dates was $&#160;&#160;&#160;&#160;&#160;
    and $&#160;&#160;&#160;&#160;&#160;, respectively.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Expiration
    of the Offer</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Offer will expire at 5:00&#160;p.m., New York City time,
    on&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;,
    2007, unless extended by the Fund until 5:00&#160;p.m., New York
    City time, to a date not later
    than&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;,
    2007. The Rights will expire on the Expiration Date and
    thereafter may not be exercised. Since the Expiration Date and
    the Pricing Date will be the same date, Record Date Shareholders
    who decide to acquire Shares in the Primary Subscription or
    pursuant to the Over-Subscription Privilege will not know when
    they make such decision the purchase price of such Shares. Any
    extension of the Offer will be followed as promptly as
    practicable by announcement thereof. Such
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    11
</DIV><!-- END LOGICAL PAGE -->
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    announcement shall be issued no later than 9:00&#160;a.m., New
    York City time, on the next business day following the
    previously scheduled Expiration Date. Without limiting the
    manner in which the Fund may choose to make such announcement,
    the Fund will not, unless otherwise required by law, have any
    obligation to publish, advertise or otherwise communicate any
    such announcement other than by making a release to the Dow
    Jones News Service or such other means of announcement as the
    Fund deems appropriate.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Method of
    Exercise of Rights</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Subscription Certificates, which evidence the Rights, will
    be mailed to Record Date Shareholders or, if a Record Date
    Shareholder&#146;s shares of Common Stock are held by Cede or
    any other depository or nominee on their behalf, to Cede or such
    other depository or nominee. Rights may be exercised by fully
    completing and signing the Subscription Certificate which
    accompanies this Prospectus and mailing it in the envelope
    provided, or otherwise delivering the completed and signed
    Subscription Certificate to the Subscription Agent, together
    with payment in full for the Shares at the estimated payment
    price (the &#147;Estimated Payment Price&#148;) as described
    below under &#147;Payment for Shares.&#148; Rights may also be
    exercised by a Record Date Shareholder contacting his or her
    broker, bank or trust company, which can arrange, on his or her
    behalf, to guarantee delivery of payment (using a &#147;Notice
    of Guaranteed Delivery&#148;) and of a properly completed and
    executed Subscription Certificate. The broker, bank or trust
    company may charge a fee for this service. Fractional Shares
    will not be issued. A Record Date Shareholder whose total
    ownership is fewer than five shares of Common Stock and,
    accordingly, receives fewer than five Rights will be able to
    subscribe for one Share upon the exercise of all of such Rights
    received and, if he or she subscribes for one Share, will be
    able to request additional Shares pursuant to the terms of the
    Offer applicable to the Over-Subscription Privilege. Record Date
    Shareholders who otherwise have remaining fewer than five Rights
    will not be able to purchase a Share upon the exercise of such
    Rights but will be able to request additional Shares pursuant to
    the terms of the Offer applicable to the Over-Subscription
    Privilege. Completed Subscription Certificates must be received
    by the Subscription Agent prior to 5:00&#160;p.m., New York City
    time, on the Expiration Date (unless the guaranteed delivery
    procedures are complied with as described below under
    &#147;Payment for Shares&#148;) at the offices of the
    Subscription Agent at the address set forth below.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Shareholders Who Are Record
    Owners.</I>&#160;&#160;Shareholders who are record owners can
    choose between either option set forth under &#147;Payment for
    Shares&#148; below. If time is of the essence, option (2), under
    &#147;Payment for Shares&#148; below, will permit delivery of
    the Subscription Certificate and payment after the Expiration
    Date.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Shareholders Whose Shares&#160;Are Held By A
    Nominee.</I>&#160;&#160;Shareholders whose shares are held by a
    nominee, such as a broker, bank or trust company, must contact
    such nominee to exercise their Rights. In that case, the nominee
    will complete the Subscription Certificate on behalf of the
    shareholder and arrange for proper payment by one of the methods
    set forth under &#147;Payment for Shares&#148; below.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Nominees.</I>&#160;&#160;Nominees who hold shares of Common
    Stock for the account of others must (to the extent required by
    applicable law) notify the beneficial owners of such shares as
    soon as possible to ascertain such beneficial owners&#146;
    intentions and to obtain instructions with respect to the
    Rights. If the beneficial owner so instructs, the nominee should
    complete the Subscription Certificate and submit it to the
    Subscription Agent with the proper payment described under
    &#147;Payment for Shares&#148; below.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    12
</DIV><!-- END LOGICAL PAGE -->
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<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Information
    Agent</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Any questions or requests for assistance may be directed to the
    Information Agent at its telephone number and address listed
    below:
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <I><FONT style="font-family: 'Times New Roman', Times">The
    Information Agent for the Offer is:</FONT></I>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<CENTER style="font-size: 1pt; width: 18%; border-bottom: 1pt solid #000000"></CENTER><!-- callerid=999 iwidth=455 length=84 -->

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<CENTER style="font-size: 1pt; width: 18%; border-bottom: 1pt solid #000000"></CENTER><!-- callerid=999 iwidth=455 length=84 -->

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<CENTER style="font-size: 1pt; width: 18%; border-bottom: 1pt solid #000000"></CENTER><!-- callerid=999 iwidth=455 length=84 -->

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Banks and Brokers Call Collect:
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    All Others Call Toll-Free:
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Shareholders may also contact their brokers or nominees for
    information with respect to the Offer.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Information Agent will receive a fee estimated to be
    approximately $&#160;&#160;&#160;&#160;&#160;, which includes
    reimbursement for all
    <FONT style="white-space: nowrap">out-of-pocket</FONT>
    expenses related to the Offer.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Subscription
    Agent</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Subscription Agent is Computershare Trust Company, N.A.,
    which will receive for its administrative, processing, invoicing
    and other services as subscription agent, a fee estimated to be
    approximately $&#160;&#160;&#160;&#160;&#160;, which includes
    reimbursement for all
    <FONT style="white-space: nowrap">out-of-pocket</FONT>
    expenses related to the Offer. Signed Subscription Certificates
    must be sent, together with payment at the Estimated Payment
    Price for all Shares subscribed in the Primary Subscription and
    Over-Subscription Privilege by one of the methods described
    below, prior to 5:00&#160;p.m., New York City time, on the
    Expiration Date. Alternatively, if using a Notice of Guaranteed
    Delivery, the Notice of Guaranteed Delivery (see &#147;Method of
    Exercise of Rights&#148; above) may also be sent by facsimile to
    <FONT style="white-space: nowrap">(781)&#160;828-8813,</FONT>
    with the originals to be sent promptly thereafter by one of the
    methods described below. Facsimiles should be confirmed by
    telephone to
    <FONT style="white-space: nowrap">(800)&#160;272-2700.</FONT>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    (1)&#160;</TD>
    <TD align="left">
    BY FIRST CLASS&#160;MAIL ONLY:<BR>
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Computershare Trust Company, N.A.<BR>
    Attention: Zweig Funds<BR>
    P.O. Box&#160;43010<BR>
    Providence, RI
    <FONT style="white-space: nowrap">02940-3010</FONT>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    (2)&#160;</TD>
    <TD align="left">
    BY HAND:<BR>
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 48pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    (3)&#160;</TD>
    <TD align="left">
    BY EXPRESS MAIL OR OVERNIGHT COURIER:<BR>
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Computershare Trust Company, N.A.<BR>
    Attention: Zweig Funds<BR>
    250 Royall Street<BR>
    Canton, MA 02021
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    (4)&#160;</TD>
    <TD align="left">
    GUARANTEE OF DELIVERY: FOR ELIGIBLE INSTITUTIONS ONLY:
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Notice of Guaranteed Delivery may also be sent by facsimile
    to
    <FONT style="white-space: nowrap">(781)&#160;828-8813,</FONT>
    with the originals to be sent promptly thereafter by one of the
    methods described above. Facsimiles should be confirmed by
    telephone to
    <FONT style="white-space: nowrap">(800)&#160;272-2700.</FONT>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>DELIVERY TO AN ADDRESS OTHER THAN ONE OF THE ADDRESSES LISTED
    ABOVE, OR TRANSMISSION VIA A FACSIMILE NUMBER OTHER THAN AS
    LISTED ABOVE, WILL NOT CONSTITUTE VALID DELIVERY.</B>
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    13
</DIV><!-- END LOGICAL PAGE -->
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Payment
    for Shares</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Record Date Shareholders who acquire Shares in the Primary
    Subscription and pursuant to the Over-Subscription Privilege may
    choose between the following methods of payment:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (1)&#160;A Record Date Shareholder can send the Subscription
    Certificate together with payment for the Shares acquired in the
    Primary Subscription and for additional Shares subscribed for
    pursuant to the Over-Subscription Privilege to the Subscription
    Agent. Payment should be calculated on the basis of the
    Estimated Payment Price of
    $&#160;&#160;&#160;&#160;&#160;&#160;per Share for all Shares
    requested. To be accepted, such payment, together with the
    executed Subscription Certificate, must be received by the
    Subscription Agent at one of the Subscription Agent&#146;s
    offices at the addresses set forth above prior to
    5:00&#160;p.m., New York City time, on the Expiration Date. The
    Subscription Agent will deposit all monies received by it prior
    to the final payment date into a segregated interest-bearing
    account (which interest will be paid to the Fund) pending
    proration and distribution of the Shares. <B>A PAYMENT PURSUANT
    TO THIS METHOD MUST BE IN UNITED STATES DOLLARS BY CHECK DRAWN
    ON A BANK LOCATED IN THE UNITED STATES, MUST BE PAYABLE TO THE
    ZWEIG TOTAL RETURN FUND, INC. AND MUST ACCOMPANY A PROPERLY
    COMPLETED AND EXECUTED SUBSCRIPTION CERTIFICATE FOR SUCH
    SUBSCRIPTION CERTIFICATE TO BE ACCEPTED.</B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (2)&#160;Alternatively, a subscription will be accepted by the
    Subscription Agent if, prior to 5:00&#160;p.m., New York City
    time, on the Expiration Date, the Subscription Agent has
    received a Notice of Guaranteed Delivery by facsimile (telecopy)
    or otherwise from a bank, a trust company, or a NYSE member
    brokerage firm guaranteeing delivery of (i)&#160;payment of the
    Estimated Payment Price of
    $&#160;&#160;&#160;&#160;&#160;&#160;per share for the Shares
    subscribed for in the Primary Subscription and for any
    additional Shares subscribed for pursuant to the
    Over-Subscription Privilege, and (ii)&#160;a properly completed
    and executed Subscription Certificate. The Subscription Agent
    will not honor a Notice of Guaranteed Delivery unless a properly
    completed and executed Subscription Certificate together with
    full payment is received by the Subscription Agent by the close
    of business on the third business day after the Expiration Date
    (&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;,
    2007, unless the Offer is extended).
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Within four business days following the Expiration Date
    (&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;,
    2007, unless the Offer is extended, the &#147;Confirmation
    Date&#148;), a confirmation will be sent by the Subscription
    Agent to each subscribing Record Date Shareholder (or, if the
    Record Date Shareholder&#146;s shares of Common Stock are held
    by Cede or any other depository or nominee, to Cede or such
    depository or nominee), showing (i)&#160;the number of Shares
    acquired pursuant to the Primary Subscription, (ii)&#160;the
    number of Shares, if any, acquired pursuant to the
    Over-Subscription Privilege, (iii)&#160;the per Share and total
    purchase price of the Shares, and (iv)&#160;any additional
    amount payable by such Record Date Shareholder to the Fund or
    any excess to be refunded by the Fund to such Record Date
    Shareholder, in each case based on the Subscription Price as
    determined on the Pricing Date. If any Record Date Shareholder
    exercises his or her right to acquire Shares pursuant to the
    Over-Subscription Privilege, any such excess payment which would
    otherwise be refunded to the Record Date Shareholder will be
    applied by the Fund toward payment for additional Shares
    acquired pursuant to exercise of the Over-Subscription
    Privilege. Any additional payment required from a Record Date
    Shareholder must be received by the Subscription Agent within
    ten business days after the Confirmation Date. Any excess
    payment to be refunded by the Fund to a Record Date Shareholder
    will be mailed by the Subscription Agent to such Record Date
    Shareholder as promptly as possible. All payments by a Record
    Date Shareholder must be in United States dollars by money order
    or check drawn on a bank located in the United States of America
    and payable to <B>THE ZWEIG TOTAL RETURN FUND, INC.</B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Whichever of the two methods described above is used, issuance
    and delivery of certificates for the Shares purchased are
    subject to collection of checks and actual payment pursuant to
    any Notice of Guaranteed Delivery.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>RECORD DATE SHAREHOLDERS WILL HAVE NO RIGHT TO RESCIND THEIR
    SUBSCRIPTION AFTER RECEIPT OF THEIR PAYMENT FOR SHARES&#160;BY
    THE SUBSCRIPTION AGENT, EXCEPT AS PROVIDED BELOW UNDER
    &#147;POSSIBLE SUSPENSION OR WITHDRAWAL OF THE OFFER.&#148;</B>
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    14
</DIV><!-- END LOGICAL PAGE -->
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If a Record Date Shareholder who acquires Shares pursuant to the
    Primary Subscription or Over-Subscription Privilege does not
    make payment of any additional amounts due by the ninth business
    day after the Confirmation Date, the Fund reserves the right to
    take any or all of the following actions: (i)&#160;sell such
    subscribed and unpaid-for Shares to other Record Date
    Shareholders, (ii)&#160;apply any payment actually received by
    it toward the purchase of the greatest whole number of Shares
    which could be acquired by such holder upon exercise of the
    Primary Subscription or Over-Subscription Privilege, or
    (iii)&#160;exercise any and all other rights or remedies to
    which it may be entitled.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>THE METHOD OF DELIVERY OF SUBSCRIPTION CERTIFICATES AND
    PAYMENT OF THE SUBSCRIPTION PRICE TO THE FUND&#160;WILL BE AT
    THE ELECTION AND RISK OF THE RIGHTS HOLDERS, BUT IF SENT BY MAIL
    IT IS RECOMMENDED THAT SUCH CERTIFICATES AND PAYMENT BE SENT BY
    REGISTERED MAIL, PROPERLY INSURED, WITH RETURN RECEIPT
    REQUESTED, AND THAT A SUFFICIENT NUMBER OF DAYS BE ALLOWED TO
    ENSURE DELIVERY TO THE FUND&#160;AND CLEARANCE OF PAYMENT PRIOR
    TO 5:00&#160;P.M., NEW YORK CITY TIME, ON THE EXPIRATION DATE.
    BECAUSE UNCERTIFIED PERSONAL CHECKS MAY TAKE AT LEAST FIVE
    BUSINESS DAYS TO CLEAR AND, AT THE DISCRETION OF THE FUND, MAY
    NOT BE ACCEPTED IF NOT CLEARED PRIOR TO THE EXPIRATION DATE, YOU
    ARE STRONGLY ENCOURAGED TO PAY, OR ARRANGE FOR PAYMENT, BY MEANS
    OF CERTIFIED OR BANK CASHIER&#146;S CHECK.</B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    All questions concerning the timeliness, validity, form and
    eligibility of any exercise of Rights will be determined by the
    Fund, whose determinations will be final and binding. The Fund
    in its sole discretion may waive any defect or irregularity, or
    permit a defect or irregularity to be corrected within such time
    as it may determine, or reject the purported exercise of any
    Right. Subscriptions will not be deemed to have been received or
    accepted until all irregularities have been waived or cured
    within such time as the Fund determines in its sole discretion.
    The Fund will not be under any duty to give notification of any
    defect or irregularity in connection with the submission of
    Subscription Certificates or incur any liability for failure to
    give such notification.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Possible
    Suspension or Withdrawal of the Offer</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    As required by the Commission&#146;s registration form, the Fund
    has undertaken to suspend the Offer until it amends this
    Prospectus if, subsequent to the effective date of the
    Fund&#146;s Registration Statement, the Fund&#146;s net asset
    value declines more than 10% from its net asset value as of such
    effective date or its net asset value increases to an amount
    greater than its net proceeds as stated herein. Accordingly, the
    Fund will notify Record Date Shareholders of any such decline or
    increase and permit them to cancel their exercise of Rights.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Non-Transferability
    of Rights</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Rights are non-transferable and, therefore, may not be
    purchased or sold. The Rights will not be listed for trading on
    the NYSE or any other exchange. However, the additional Shares
    of Common Stock to be issued upon the exercise of the Rights and
    the Over-Subscription Privilege will be listed for trading on
    the NYSE, subject to notice of issuance.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Delivery
    of Share Certificates</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Stock certificates for all Shares acquired in the Primary
    Subscription will be mailed promptly after the expiration of the
    Offer and full payment for the subscribed Shares has been
    received and cleared. Certificates representing Shares acquired
    pursuant to the Over-Subscription Privilege will be mailed as
    soon as practicable after full payment has been received and
    cleared and all allocations have been effected. Participants in
    the Fund&#146;s Distribution Reinvestment and Cash Purchase Plan
    (the &#147;Plan&#148;) will have any Shares acquired in the
    Primary Subscription and pursuant to the Over-Subscription
    Privilege credited to their shareholder distribution
    reinvestment accounts in the Plan. Participants in the Plan
    wishing to exercise Rights for the shares of Common Stock held
    in their accounts in the Plan must exercise them in accordance
    with the procedures set forth above. Record Date Shareholders
    whose shares of Common Stock are held of record by Cede or by
    any
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    15
</DIV><!-- END LOGICAL PAGE -->
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    other depository or nominee on their behalf or their
    broker-dealer&#146;s behalf will have any Shares acquired in the
    Primary Subscription credited to the account of Cede or such
    other depository or nominee. Shares acquired pursuant to the
    Over-Subscription Privilege will be credited directly to Cede or
    such other depository or nominee.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Foreign
    Restrictions</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Record Date Shareholders whose record addresses are outside the
    United States (for these purposes, the United States includes
    its territories and possessions and the District of Columbia)
    will receive written notice of the Offer; however, Subscription
    Certificates will not be mailed to such shareholders. The Rights
    to which those Subscription Certificates relate will be held by
    the Subscription Agent for such foreign Record Date
    Shareholders&#146; accounts until instructions are received in
    writing with payment to exercise the Rights. If no such
    instructions are received by the Expiration Date, such Rights
    will expire.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Federal
    Income Tax Consequences</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The U.S.&#160;Federal income tax consequences to holders of
    Common Stock with respect to the Offer will be as follows:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    U.S.&#160;Shareholders who receive Rights pursuant to the Offer
    should not recognize taxable income for U.S.&#160;Federal income
    tax purposes upon their receipt of the Rights. If Rights issued
    to a U.S.&#160;Shareholder expire without being sold or
    exercised, no basis should be allocated to such Rights, and such
    Shareholder should not recognize any gain or loss for
    U.S.&#160;Federal income tax purposes upon such expiration.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The tax basis of a U.S.&#160;Shareholder&#146;s Common Stock
    should remain unchanged and the shareholder&#146;s basis in the
    Rights should be zero, unless such U.S.&#160;Shareholder
    affirmatively and irrevocably elects (in a statement attached to
    such shareholder&#146;s U.S.&#160;Federal income tax return for
    the year in which the Rights are received) to allocate the basis
    in the Common Stock between such Common Stock and the Rights in
    proportion to their respective fair market values on the date of
    distribution.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    A U.S.&#160;Shareholder who exercises Rights should not
    recognize any gain or loss for U.S.&#160;Federal income tax
    purposes upon the exercise. The tax basis of the newly acquired
    Common Stock should equal the Subscription Price paid for the
    Common Stock (plus the basis, if any, allocated to the Rights in
    the manner described in the immediately preceding paragraph).
    See &#147;Taxation&#148; in this Prospectus and in the SAI.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Each U.S.&#160;Shareholder is urged to consult his or her own
    tax advisor with respect to the specific Federal, state and
    local tax consequences to such U.S.&#160;Shareholder of
    receiving Rights in this offer.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Employee
    Plan Considerations</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Shareholders that are employee benefit plans subject to the
    Employee Retirement Income Security Act of 1974, as amended
    (&#147;ERISA&#148;) (including corporate savings and 401(k)
    plans), Keogh or H.R. 10 plans of self-employed individuals and
    Individual Retirement Accounts (&#147;IRAs&#148;) (collectively,
    &#147;Plans&#148;) should be aware of the complexity of the
    rules and regulations governing Plans and the penalties for
    noncompliance, and Plans should consult with their counsel
    regarding the consequences of their exercise of Rights under
    ERISA and the Internal Revenue Code of 1986, as amended (the
    &#147;Code&#148;).
</DIV>
<A name='104'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">USE OF
    PROCEEDS</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If all of the Rights are exercised in full and assuming a
    Subscription Price of $5.14&#160;per share, the net proceeds to
    the Fund would be approximately $&#160;&#160;&#160;&#160;&#160;,
    after deducting expenses payable by the Fund in connection with
    the offering estimated to total $&#160;&#160;&#160;&#160;&#160;.
    If the Fund increases the number of shares of Common Stock
    subject to subscription by up
    to&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Shares,
    in order to satisfy over-subscription requests, the additional
    net proceeds will be approximately
    $&#160;&#160;&#160;&#160;&#160;. However, there can be no
    assurance that all Rights will be exercised in full, and the
    Subscription Price will not be determined until the close of
    business on the Expiration Date. The Investment Adviser has
    advised the Fund that it anticipates that substantially all of
    the
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    16
</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    net proceeds of the Offer will be invested in investments
    conforming to the Fund&#146;s investment objective and policies
    within two weeks from their receipt by the Fund, but in no event
    will such investment take longer than six months from the
    Expiration Date. Pending such investment, the proceeds will be
    invested in cash or cash equivalent short-term obligations
    including, but not limited to, U.S.&#160;Government obligations,
    certificates of deposit, commercial paper and short-term notes.
    See &#147;The Offer&#160;&#151; Purpose of the Offer.&#148;
</DIV>
<A name='105'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">THE
    FUND</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Fund, incorporated in Maryland on July&#160;21, 1988, is a
    diversified, closed-end management investment company registered
    under the 1940 Act. The Fund&#146;s investment objective is to
    seek the highest total return, consisting of capital
    appreciation and current income, consistent with the
    preservation of capital. The Fund will invest up to 65% of its
    total assets in U.S.&#160;government securities, non-convertible
    debt securities of domestic issuers rated among the two highest
    rating categories of either Moody&#146;s or S&#38;P (or, if
    unrated, of comparable quality as determined by the Investment
    Adviser), and certain foreign government securities
    (collectively, the &#147;Bond Investments&#148;), and up to 50%
    of its total assets in equity securities. The Fund may, however,
    under certain circumstances, invest up to 75% of its total
    assets in equity securities as determined by the Fund&#146;s
    Investment Adviser. The Fund also, as part of its Bond
    Investments, may invest up to 10% of its total assets in
    non-convertible debt securities rated below the two highest
    rating categories of Moody&#146;s or S&#38;P (or, if unrated, of
    comparable quality as determined by the Investment Adviser). See
    &#147;Investment Objective and Policies.&#148;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Investment Adviser, Phoenix/Zweig Advisers LLC, is a New
    York limited liability company and a wholly-owned subsidiary of
    Phoenix Investment Partners, Ltd., a Delaware corporation.
    Phoenix/Zweig Advisers LLC and Phoenix Investment Partners, Ltd.
    are independent investment advisory firms registered with the
    Commission under the Investment Advisers Act of 1940, as
    amended. Such registration does not involve supervision or
    approval by the Commission of investment advice rendered by the
    Investment Adviser. See &#147;Management of the Fund.&#148;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The
    <FONT style="white-space: nowrap">Sub-Adviser,</FONT>
    Zweig Consulting LLC, is a New York limited liability company
    and an investment advisory firm registered with the Commission
    under the Investment Advisers Act of 1940, as amended. The
    President of the
    <FONT style="white-space: nowrap">Sub-Adviser</FONT>
    is Dr.&#160;Martin E. Zweig, who has been engaged in the
    business of providing investment advisory services for over
    35&#160;years. See &#147;Management of the Fund.&#148;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Fund completed an initial public offering of
    60,375,000&#160;shares of its Common Stock in September and
    October 1988. The net proceeds to the Fund from such offering
    were approximately $559,912,503. The Fund also received net
    proceeds of approximately $76&#160;million from its April 1998
    rights offering. As
    of&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;,
    2007, the net assets of the Fund were
    $&#160;&#160;&#160;&#160;&#160;, and since inception, the Fund
    has paid or declared distributions (including dividends and
    capital gains distributions) aggregating
    $&#160;&#160;&#160;&#160;&#160;.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Fund&#146;s principal office is located at 900 Third Avenue,
    New York, New York 10022, and its telephone number is
    <FONT style="white-space: nowrap">(212)&#160;451-1100.</FONT>
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    17
</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->
<A name='106'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">MARKET
    PRICE AND NET ASSET VALUE INFORMATION</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Shares of the Fund&#146;s Common Stock are listed on the NYSE
    under the symbol &#147;ZTR.&#148; The following table sets forth
    for the calendar quarters indicated: (i)&#160;the high and low
    net asset value per share of the Fund&#146;s Common Stock,
    (ii)&#160;the high and low closing prices per share of the
    Fund&#146;s Common Stock on the NYSE, and (iii)&#160;the
    percentage by which the shares of Common Stock of the Fund
    traded at a premium over, or discount from, the Fund&#146;s high
    and low net asset values per share.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="45%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="4%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="4%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=05 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=05 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=05 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=05 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=06 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=06 type=lead -->
    <TD width="4%" align="right">&nbsp;</TD>	<!-- colindex=06 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=06 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=07 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=07 type=lead -->
    <TD width="4%" align="right">&nbsp;</TD>	<!-- colindex=07 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=07 type=hang1 -->
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>High<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Net Asset<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Premium<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Low<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Net Asset<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Premium<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Quarter Ended</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Sales Price*</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Value</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>(Discount)</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Sales Price*</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Value</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>(Discount)</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">12/31/04
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">

</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">

</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">3/31/05
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">

</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">

</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">6/30/05
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">

</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">

</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">9/30/05
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">

</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">

</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">12/31/05
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">

</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">

</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">3/31/06
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">

</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">

</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">6/30/06
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">

</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">

</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">9/30/06
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">

</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">

</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">12/31/06
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">

</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">

</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 1pt; margin-left: 0%; width: 13%; align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=999 iwidth=455 length=60 -->

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<TR>
    <TD width="4%"></TD>
    <TD width="1%"></TD>
    <TD width="95%"></TD>
</TR>

<TR>
    <TD align="right" valign="top">
    *&#160;</TD>
    <TD></TD>
    <TD valign="bottom">
    As reported by the NYSE.</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Fund&#146;s shares of Common Stock have traded in the market
    above, at and below net asset value since the commencement of
    the Fund&#146;s operations in September 1988. The Fund&#146;s
    officers cannot predict whether the Subscription Price will be
    at or below the Fund&#146;s net asset value per Share on the
    Pricing Date. Since the Fund&#146;s inception in 1988, the Fund
    has generally maintained a policy of making monthly
    distributions equal to 0.83% of its net asset value (10% on an
    annualized basis). The Fund&#146;s officers believe that without
    this monthly distribution policy, there would likely be a
    decrease in the amount of any premium at which the Fund&#146;s
    shares would be trading above net asset value or an increase in
    the amount of any discount at which the Fund&#146;s shares would
    be trading from net asset value; however, the Fund&#146;s
    officers cannot predict whether such policy will have this
    effect in the future. See &#147;Distributions; Distribution
    Reinvestment and Cash Purchase Plan.&#148; The Fund is
    authorized to repurchase its shares on the open market when the
    shares are trading at a discount from net asset value. The Fund
    has not engaged in any such repurchases. See &#147;Description
    of Common Stock&#160;&#151; Repurchase of Shares.&#148; Since
    the Fund&#146;s inception, the Board of Directors has maintained
    a policy pursuant to which the Board of Directors considers the
    making of tender offers of the Fund each quarter during periods
    when the Fund&#146;s shares are trading at a discount from net
    asset value. The Fund has not made any such tender offers. See
    &#147;Description of Common Stock&#160;&#151; Tender
    Offers.&#148; The Fund&#146;s Articles of Incorporation provide
    that if during any fiscal quarter beginning on or after
    January&#160;1, 1990, the Fund&#146;s shares trade, on the
    principal securities exchange on which they are traded, at an
    average discount from net asset value of 10% or more, the Fund
    generally is required to submit to shareholders within
    60&#160;days after the end of such quarter, a proposal to
    convert the Fund to an open-end investment company (the
    &#147;Conversion Proposal&#148;). Approval of the Conversion
    Proposal would require the affirmative vote of a majority of the
    outstanding shares of the Fund entitled to be voted thereon. The
    Fund submitted a Conversion Proposal to its shareholders in
    2001, 2002 and 2004 since the Fund&#146;s shares had traded at
    an average discount from net asset value of 10% or more during
    the quarter ended March&#160;31, 2000, the quarter ended
    December&#160;31, 2000 and the quarter ended December&#160;31,
    2003, respectively. The Fund&#146;s shareholders did not approve
    the Conversion Proposal on any of those occasions. See
    &#147;Description of Common Stock&#160;&#151; Provision for
    Conversion to Open-End Fund.&#148;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    On&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;,
    2007, the net asset value per share of Common Stock was
    $&#160;&#160;&#160;&#160;&#160; and the last reported sales
    price was $&#160;&#160;&#160;&#160;&#160;, representing
    a&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
    from net asset value per share of&#160;&#160;%.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    18
</DIV><!-- END LOGICAL PAGE -->
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<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->
<A name='107'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">INVESTMENT
    OBJECTIVE AND POLICIES</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Investment
    Objective</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Fund&#146;s investment objective is to seek the highest
    total return, consisting of capital appreciation and current
    income, consistent with the preservation of capital. The Fund
    will invest up to 65% of its total assets in
    U.S.&#160;government securities, non-convertible debt securities
    of domestic issuers rated among the two highest rating
    categories of either Moody&#146;s or S&#38;P (or, if unrated, of
    comparable quality as determined by the Investment Adviser), and
    certain foreign government securities (collectively, the
    &#147;Bond Investments&#148;), and up to 50% of its total assets
    in equity securities. If, however, the Investment Adviser
    perceives a change in the relationship between the debt and
    equity markets (such as a change in the spread between the
    yields of debt and equity securities) then, depending on the
    nature of such change, the Fund may increase the percentage of
    its total assets invested in debt securities (including money
    market instruments) or equity securities. The Fund will not,
    under any circumstances, invest more than 75% of its total
    assets in equity securities. The Fund also, as part of its Bond
    Investments, may invest up to 10% of its total assets in
    non-convertible debt securities rated below the two highest
    rating categories of Moody&#146;s or S&#38;P (or, if unrated, of
    comparable quality as determined by the Investment Adviser).
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The extent of the Fund&#146;s investment in debt and equity
    securities will be determined by the Investment Adviser
    primarily on the basis of asset allocation techniques developed
    by Dr.&#160;Martin E. Zweig, the President of the Fund&#146;s
    <FONT style="white-space: nowrap">Sub-Adviser,</FONT>
    and his staff. In an effort to meet the Fund&#146;s investment
    objective, the Fund may use the following investment methods
    when such use is deemed appropriate: purchasing and selling
    interest rate, stock index and other futures contracts and
    purchasing options on such futures; purchasing and writing
    listed put and call security options and options on stock
    indexes; short sales of securities; borrowing from banks to
    purchase securities; investing in securities of exchange traded
    funds, foreign issuers and closed-end investment companies;
    lending portfolio securities to brokers, dealers, banks or other
    recognized institutional borrowers of securities; entering into
    repurchase or reverse repurchase agreements; and purchasing
    when-issued and delayed-delivery securities. See &#147;Special
    Investment Methods.&#148; During periods when the Investment
    Adviser believes an overall defensive position is advisable,
    greater than 50% (and under certain circumstances perhaps all)
    of the Fund&#146;s total assets may be temporarily invested in
    money market instruments and cash. There is no assurance that
    the Fund will use any or all of such methods or, whether or not
    they are used, the Fund will achieve its investment objective.
    The Fund&#146;s investment objective may not be changed without
    the approval of a majority of the Fund&#146;s outstanding voting
    securities. As used in this Prospectus, the term &#147;majority
    of the Fund&#146;s outstanding voting securities&#148; means the
    lesser of either (i)&#160;67% of the shares represented at a
    shareholders meeting at which the holders of more than 50% of
    the outstanding shares are present in person or by proxy, or
    (ii)&#160;more than 50% of the outstanding shares.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Investment
    Policies</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The extent of the Fund&#146;s investment in debt and equity
    securities will be determined primarily on the basis of asset
    allocation techniques developed by Dr.&#160;Martin E. Zweig,
    President of the
    <FONT style="white-space: nowrap">Sub-Adviser,</FONT>
    and his staff. It is expected that the Investment Adviser will
    make most of the decisions with respect to the extent of the
    Fund&#146;s investment in debt and equity securities based on
    these techniques. The debt allocation techniques, which seek to
    identify the risks and trends in the debt markets at any given
    time, will incorporate various indicators, including the
    momentum of bond prices, short-term interest rate trends,
    inflation indicators and general economic and liquidity
    indicators, as well as other market indicators and statistics
    which the Investment Adviser believes tend to point to
    significant trends in the overall performance and the risk of
    the debt markets. The equity allocation techniques, which seek
    to identify the risks and trends in the equity markets at any
    given time, include general market indicators, including
    interest rate and monetary analysis, market sentiment
    indicators, price and trading volume statistics, and measures of
    valuation, as well as other market indicators and statistics
    which the Investment Adviser believes tend to point to
    significant trends in the overall performance and the risk of
    the stock market. These techniques are not an all-in or all-out
    approach that attempts to predict market tops and bottoms.
    Instead, they are intended to be a gradual and disciplined
    approach that reacts to changes in risk levels as determined by
    the indicators. The goal is to be invested
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    19
</DIV><!-- END LOGICAL PAGE -->
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    consistent with the major trends of the markets. There is no
    assurance that these asset allocation techniques will provide
    protection from the risks of debt or equity investment, enable
    the Fund to be invested consistent with the major trends of the
    markets or enable the Fund to achieve its investment objective.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The maturities of the debt securities in the Fund&#146;s
    portfolio will vary based in large part on the Investment
    Adviser&#146;s expectations of future changes in interest rates
    using the Investment Adviser&#146;s own internal research and
    debt allocation techniques. The primary consideration in
    choosing among bonds is managing risk related to changes in
    interest rate levels. A bond&#146;s duration measures its
    sensitivity to changes in interest rates (interest rate risk).
    Duration is the approximate percentage change in the price of a
    bond or bond portfolio in response to a 100&#160;basis point
    (one percent) change in the general level of interest rates in
    the market. For example, if a bond portfolio has an average
    duration of five years, the value of such bond portfolio would
    increase by 5% if interest rates declined by 1% and conversely
    would decrease by 5% if interest rates rose by 1%. The longer
    the duration, the greater the bond&#146;s price movement will be
    as interest rates change. The Investment Adviser manages the
    duration of the Fund&#146;s portfolio, or interest rate risk, by
    altering the Fund&#146;s mix of short, medium, and long term
    bonds, or by buying or selling interest rate futures contracts,
    and also by actively using money market and cash instruments.
    Over time, the duration will vary depending on the Investment
    Adviser&#146;s interest rate outlook.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The U.S.&#160;government securities (&#147;U.S.&#160;Government
    Securities&#148;) in which the Fund may invest are securities
    issued or guaranteed by the U.S.&#160;government or its agencies
    or instrumentalities (including repurchase agreements secured by
    such instruments). Certain of these securities, including
    U.S.&#160;Treasury bills, notes and bonds, mortgage
    participation certificates guaranteed by GNMA, and Federal
    Housing Administration debentures, are supported by the full
    faith and credit of the United States. Other
    U.S.&#160;Government Securities issued or guaranteed by federal
    agencies or government-sponsored enterprises are not supported
    by the full faith and credit of the United States. These
    securities include obligations supported by the right of the
    issuer to borrow from the U.S.&#160;Treasury, such as
    obligations of Federal Home Loan&#160;Banks, and obligations
    supported only by the credit of the instrumentality, such as
    Federal National Mortgage Association bonds. Debt securities of
    domestic issuers, other than U.S.&#160;Government Securities,
    will be generally limited to those that are rated, as of the
    date of purchase, among the two highest rating categories (Aaa
    and Aa) of Moody&#146;s or the two highest rating categories
    (AAA and AA) of S&#38;P. The Fund also, as part of its Bond
    Investments, may invest up to 10% of its total assets in
    non-convertible debt securities rated below the two highest
    rating categories of Moody&#146;s or S&#38;P (or, if unrated, of
    comparable quality as determined by the Investment Adviser).
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The money market instruments in which the Fund may invest
    include U.S.&#160;Government Securities or obligations issued or
    guaranteed by one or more foreign governments or any of their
    political subdivisions, agencies or instrumentalities
    (&#147;Foreign Government Securities&#148;) having a maturity of
    less than one year, commercial paper rated
    <FONT style="white-space: nowrap">A-1</FONT> or
    higher by S&#38;P or
    <FONT style="white-space: nowrap">Prime-1</FONT> or
    higher by Moody&#146;s, or if such commercial paper is not
    rated, issued by companies which have an outstanding debt issue
    rated Aa or higher by Moody&#146;s or AA or higher by S&#38;P,
    repurchase agreements secured by collateral at least equal to
    the repurchase price, and certificates of deposit, bankers&#146;
    acceptances and other short-term obligations issued by domestic
    branches of U.S.&#160;banks that are insured by the Federal
    Deposit Insurance Corporation and have assets in excess of
    $500&#160;million.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Fund may invest up to 10% of its total assets in Foreign
    Government Securities that, in the opinion of the Investment
    Adviser, do not subject the Fund to unreasonable credit risks.
    The percentage of the Fund&#146;s assets invested in Foreign
    Government Securities will vary depending on the relative yields
    of such securities, the economic and financial markets of the
    countries in which the investments are made, the interest rate
    climate of such countries and the relationship of such
    countries&#146; currencies to the U.S.&#160;dollar. During the
    past year, the Fund has not owned any Foreign Government
    Securities.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Fund&#146;s investments in equity securities provide the
    opportunity for enhanced returns through capital appreciation.
    The Investment Adviser expects that the stocks in the
    Fund&#146;s portfolio will be widely diversified by both
    industry and the number of issuers. The Investment Adviser
    expects that a majority of the stocks in the Fund&#146;s
    portfolio will be selected on the basis of a proprietary stock
    selection model that evaluates and
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    20
</DIV><!-- END LOGICAL PAGE -->
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    ranks approximately 1,000 of the largest, most liquid stocks.
    This stock selection model evaluates and ranks such stocks on
    the basis of various factors, which may include earnings
    momentum, earnings growth,
    <FONT style="white-space: nowrap">price-to-book</FONT>
    value,
    <FONT style="white-space: nowrap">price-to-earnings,</FONT>
    <FONT style="white-space: nowrap">price-to-cash</FONT>
    flow, cash flow trend, payout ratio trend and other market
    measurements. The Investment Adviser then performs further
    analysis of certain of those companies that have been identified
    by the stock selection model, in order to determine whether to
    purchase those stocks. This stock selection model may evolve or
    be replaced by other stock selection models intended to achieve
    the Fund&#146;s investment objective.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Special
    Investment Methods</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Fund may use some or all of the following special investment
    methods where their use appears appropriate to the Investment
    Adviser. No assurance can be given that the Fund will use any or
    all of such investment methods or, if used, that their use will
    achieve its investment objective. The investment methods
    described below are subject to, and should be read in
    conjunction with, the discussion under &#147;Investment
    Restrictions&#148; and &#147;Investment Objective and
    Policies&#148; in the SAI. The restrictions set forth under
    &#147;Investment Restrictions&#148; are fundamental, and thus
    may be changed only with the approval of a majority of the
    Fund&#146;s outstanding voting securities.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Futures
    Contracts and Related Options.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Fund may purchase and sell stock index futures contracts and
    futures contracts based upon interest rates and other financial
    instruments, and purchase options on such contracts. The Fund
    will not write options on any futures contracts.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    There are certain risks associated with the use of futures
    contracts and related options. The low margin normally required
    in such trading provides a large amount of leverage. Thus, a
    relatively small change in the price of a contract can produce a
    disproportionately large profit or loss, and the Fund may gain
    or lose substantially more than the initial margin on a trade.
    Although the Fund intends to purchase or sell futures which
    appear to have an active market, there is no assurance that a
    liquid market will exist for any particular contract at any
    particular time. Thus, it may not be possible to close a futures
    position in anticipation of adverse price movements. In
    addition, there may be an imperfect correlation between the
    price movements of the futures contracts and price movements of
    the underlying portfolio securities.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Fund may purchase or sell futures contracts and related
    options for any purpose deemed appropriate, including but not
    limited to, managing the risks inherent in its investment
    strategy generally and, in particular, in protecting against the
    effect that changes in general market conditions and conditions
    affecting particular industries may have on the values of
    securities held in the Fund&#146;s portfolio, or which the Fund
    intends to purchase.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    For example, the Fund may establish short positions in (sell)
    futures contracts to protect against anticipated or potential
    declines in the market value of the Fund&#146;s portfolio of
    securities. For instance, the Fund may establish a short
    position in stock index futures contracts when it anticipates a
    general market or market sector decline that may adversely
    affect the market value of the Fund&#146;s portfolio securities.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Where the Fund anticipates a significant market or market sector
    advance, establishing long positions in (purchasing) stock index
    futures contracts affords protection against not participating
    in such advance at a time when the Fund is not fully invested.
    Such a long position would serve as a temporary substitute for
    the purchase of individual stocks, which may then be purchased
    in an orderly fashion. As purchases of stock are made, an amount
    of stock index futures contracts which is comparable to the
    amount of stock purchased may be terminated by offsetting
    closing sales transactions.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Security
    and Stock Index Options.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Fund may purchase and write listed put and call options on
    securities and on stock indexes that are traded on
    U.S.&#160;securities exchanges at such times as the Investment
    Adviser deems appropriate and consistent with the Fund&#146;s
    investment objective. In general, the Fund may purchase or write
    such options to hedge
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    21
</DIV><!-- END LOGICAL PAGE -->
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    against anticipated or potential declines in the market value of
    the Fund&#146;s portfolio of securities, or to facilitate the
    rapid implementation of investment strategies if the Fund
    anticipates a significant market or market sector advance.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Borrowing.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Fund may from time to time increase its ownership of
    securities above the amounts otherwise possible by borrowings
    from banks on an unsecured basis and investing the borrowed
    funds. In addition, the Fund may borrow to finance share
    repurchase or tender offer transactions when its shares are
    trading at a discount from their net asset value. See
    &#147;Description of Common Stock&#160;&#151; Repurchase of
    Shares; Tender Offers.&#148; Any such borrowing will be made
    only from banks, and pursuant to the requirements of the 1940
    Act, will only be made to the extent that the value of the
    Fund&#146;s total assets, less its liabilities other than
    borrowings, is equal to at least 300% of all borrowings
    including the proposed borrowing.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Borrowing for investment and to finance share repurchase or
    tender offer transactions increases both investment opportunity
    and investment risk. Since substantially all of the Fund&#146;s
    assets will fluctuate in value, but the obligation resulting
    from the borrowing is relatively fixed, the Fund&#146;s shares
    will increase in value more when the Fund&#146;s assets increase
    in value and decrease more when the Fund&#146;s assets decrease
    in value than would otherwise be the case. In addition, the cost
    of borrowing may exceed the income or gain on any securities
    purchased with the funds borrowed, in which case the Fund&#146;s
    net asset value will decline.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Exchange
    Traded Funds.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Fund may invest in passively managed registered open-end
    investment companies or other baskets of securities, such as
    unit investment trusts, which trade on a national securities
    exchange or NASDAQ and are commonly called exchange-traded funds
    (&#147;ETFs&#148;). These investments represent shares of
    ownership in ETFs that hold portfolios of securities which are
    designed to generally correspond to and closely track the price
    and yield performance of an index of securities. Accordingly,
    ETFs have risks similar to those of stocks and are subject to
    market volatility. Investment returns may fluctuate so that
    invested shares, when redeemed or sold, may be worth more or
    less than their original cost. ETFs may include, among others,
    the Nasdaq-100 Index Tracking Stock (QQQ), Standard&#160;&#38;
    Poor&#146;s Depositary Receipts (SPDRS), the DIAMONDS Trust, and
    other ETF&#146;s as determined from time to time by the
    Investment Adviser.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Foreign
    Securities.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Fund may invest up to 10% of its total assets in securities
    of foreign issuers and up to 10% of its total assets in Foreign
    Government Securities. Investments in foreign securities offer
    potential benefits not available through investment solely in
    securities of domestic issuers. Foreign securities offer the
    opportunity to invest in foreign issuers that appear to have
    growth potential, or in foreign countries with economic policies
    or business cycles different from those of the United States, or
    to reduce fluctuations in portfolio value by taking advantage of
    foreign markets that do not move in a manner parallel to United
    States markets. The Fund may also enter into foreign currency
    transactions in connection with its investment activity in
    foreign securities.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Investments in foreign securities present special additional
    risks and considerations not typically associated with
    investments in domestic securities. Foreign investments may be
    affected by changes in foreign currency rates and exchange
    control regulations. There may be less information available
    about a foreign company than a domestic company, and foreign
    companies may not be subject to accounting, auditing and
    reporting standards and requirements comparable to those
    applicable to domestic companies. Foreign securities may be less
    liquid and subject to greater price volatility than domestic
    securities. The foreign markets also have different clearance
    and settlement procedures. Foreign investments may also be
    subject to local economic or political risks, political
    instability and possible nationalization of issuers or
    expropriation of their assets which might adversely affect the
    Fund&#146;s ability to realize or liquidate its investment in
    such securities. Furthermore, legal remedies for defaults and
    disputes may have to be pursued in foreign courts whose
    procedures differ substantially from those of U.S.&#160;courts.
    In the event of a default in payment on foreign securities, the
    Fund may incur increased costs to obtain
    <FONT style="white-space: nowrap">and/or</FONT> to
    enforce a judgment against the foreign issuer
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    22
</DIV><!-- END LOGICAL PAGE -->
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (or the other parties to the transaction) in the United States
    or abroad, and no assurance can be given that the Fund will be
    able to collect on any such judgment.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Closed-end
    Investment Companies.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Fund may also invest in other closed-end investment
    companies if the Investment Adviser believes that such
    investments will further the Fund&#146;s investment objective.
    If the Fund purchases shares of another investment company at a
    discount which subsequently declines, the performance of such
    investment generally would be better than if the Fund had
    purchased the underlying portfolio investments of such other
    investment company. Such investments in other investment
    companies will constitute less than 10% of the Fund&#146;s net
    assets.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Short
    Sales.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Fund may from time to time make short sales of securities. A
    short sale is a transaction in which the Fund sells a security
    it does not own in anticipation of a decline in market price.
    The Fund may make short sales to offset a potential decline in a
    long position or a group of long positions, or if the Investment
    Adviser believes that a decline in the price of a particular
    security or group of securities is likely. The Fund may also
    make short sales in an attempt to maintain portfolio flexibility
    and facilitate the rapid implementation of investment strategies
    if the Investment Adviser believes that the price of a
    particular security or group of securities is likely to decline.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    When the Fund determines to make a short sale of a security, it
    must borrow the security. The Fund&#146;s obligation to replace
    the security borrowed in connection with the short sale will be
    fully secured by the proceeds from the short sale retained by
    the broker and by cash or liquid securities deposited in a
    segregated account with the Fund&#146;s custodian.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Fund may make a short sale only if, at the time the short
    sale is made and after giving effect thereto, the market value
    of all securities sold short is 25% or less of the value of its
    net assets and the market value of securities sold short which
    are not listed on a national securities exchange does not exceed
    10% of the Fund&#146;s net assets.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In addition to the short sales described above, the Fund may
    make short sales &#147;against the box.&#148; A short sale
    &#147;against the box&#148; is a short sale where, at the time
    of the short sale, the Fund owns or has the immediate and
    unconditional right, at no added cost, to obtain the identical
    security. The Fund would enter into such a transaction to defer
    a gain or loss for Federal income tax purposes on the security
    owned by the Fund. Short sales against the box are not subject
    to the collateral requirements described above or the percentage
    limitations on short sales described above.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Lending
    Portfolio Securities.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Fund may lend portfolio securities, generally on a
    short-term basis, to brokers or dealers in corporate or
    governmental securities, banks or other institutional borrowers
    of securities, and financial institutions as a means of earning
    income. A borrower of securities from the Fund must maintain
    with the Fund cash or U.S.&#160;Government Securities equal to
    at least 100% of the market value of the securities borrowed.
    The Fund may not lend portfolio securities if such loan would
    cause the aggregate amount of all outstanding securities loans
    to exceed 20% of the current market value of the Fund&#146;s net
    assets. If a borrower becomes bankrupt or defaults on its
    obligation to return the loaned security, delays or losses could
    result.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Repurchase
    Agreements.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Fund may from time to time acquire U.S.&#160;Government
    Securities and concurrently enter into so-called
    &#147;repurchase agreements&#148; with the seller, a member bank
    of the Federal Reserve System or primary dealers in
    U.S.&#160;Government Securities, whereby the seller agrees to
    repurchase such securities at the Fund&#146;s cost plus interest
    within a specified time (usually on the next business day).
    Repurchase agreements offer a means of generating income from
    excess cash that the Fund might otherwise hold. Delays in
    payment or losses
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    23
</DIV><!-- END LOGICAL PAGE -->
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    may result if the other party to the agreement defaults or
    becomes bankrupt. The Fund&#146;s repurchase agreements must be
    fully backed by collateral that is marked to market, or priced,
    each day.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Reverse
    Repurchase Agreements.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Fund may enter from time to time into reverse repurchase
    agreements whereby the Fund sells an underlying debt instrument
    and simultaneously obtains the commitment of the purchaser, a
    commercial bank or a broker or dealer, to sell the security back
    to the Fund at an agreed upon price on an agreed upon date. The
    value of the underlying securities will be required to be
    maintained at a level at least equal at all times to the total
    amount of the resale obligation, including the interest factor.
    The Fund receives payment for such securities only upon physical
    delivery or evidence of book entry transfer by its custodian.
    The Fund will establish a segregated account with the
    Fund&#146;s custodian, in which the Fund will maintain cash and
    U.S.&#160;Government Securities or other high grade debt
    obligations at least equal in value to the total amount of the
    repurchase obligation, including accrued interest. The value of
    the segregated securities will be
    <FONT style="white-space: nowrap">marked-to-market</FONT>
    on a daily basis to ensure that such value is maintained.
    Reverse repurchase agreements could involve certain risks in the
    event of default or insolvency of the other party, including
    possible delays or restrictions upon the Fund&#146;s ability to
    dispose of the underlying securities. An additional risk is that
    the market value of securities sold by the Fund under a reverse
    repurchase agreement could decline below the price at which the
    Fund is obligated to repurchase them. Reverse repurchase
    agreements will be considered borrowings by the Fund and as such
    will be subject to the restrictions on borrowing described in
    the SAI under &#147;Investment Restrictions.&#148; The value of
    all the Fund&#146;s reverse repurchase agreements will not
    exceed 5% of the Fund&#146;s total assets.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Below
    Investment Grade Fixed Income Securities.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Fund, as part of its Bond Investments, may invest up to 10%
    of its total assets in non-convertable debt securities rated
    below the two highest rating categories of Moody&#146;s or
    S&#38;P (or, if unrated, of comparable quality as determined by
    the Investment Adviser). Generally, securities rated below
    investment grade (high yield-high risk fixed income
    securities&#160;&#151; also sometimes referred to as junk bonds)
    have a greater chance that the issuer will be unable to make
    scheduled interest or principal payments when due. Furthermore,
    to the extent that the Fund may invest in such high yield-high
    risk fixed income securities, this will entail greater price
    volatility and credit and interest rate risk than
    investment-grade securities. Analysis of the creditworthiness of
    high yield-high risk issuers is more complex than for
    higher-rate securities, making it more difficult for the
    Investment Adviser to accurately predict risk. If the Fund
    pursues missed interest or principal payments, there is a risk
    that the Fund&#146;s expenses could increase. In addition,
    lower-rated securities may not trade as often and may be less
    liquid than higher-rated securities.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">When-Issued
    and Delayed-Delivery Securities.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Fund may from time to time purchase securities on a
    &#147;when-issued&#148; or &#147;delayed-delivery&#148; basis
    whereby the Fund purchases a bond or stock with delivery of the
    security and payment deferred to a future date. The money to
    purchase such securities will be invested in other securities
    until the Fund receives delivery. This could increase the
    possibility that the Fund&#146;s net asset value would increase
    or decrease faster than would otherwise be the case. There is no
    restriction on the percentage of the Fund&#146;s assets that may
    be invested in when-issued or delay-delivery securities, and
    such securities are not considered to be short sales for
    purposes of the Fund&#146;s Investment Restrictions on short
    sales.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Securities purchased on a when-issued or delayed-delivery basis
    may expose the Fund to risk, since such securities may
    experience fluctuations in value (based upon, in the case of
    bonds, the public&#146;s perception of the creditworthiness of
    the issuer and changes, real or anticipated, in the level of
    interest rates) prior to their time of delivery. In addition,
    the yield available in the market when the delivery takes place
    actually may be higher than that obtained in the transaction
    itself.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    24
</DIV><!-- END LOGICAL PAGE -->
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->
<A name='108'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">RISK
    FACTORS AND SPECIAL CONSIDERATIONS</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The following discusses certain matters that should be
    considered, among others, in connection with the Offer.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Dilution&#160;&#151;
    Net Asset Value and Non-Participation in the Offer</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Record Date Shareholders who do not fully exercise their Rights
    will, upon the completion of the Offer, own a smaller
    proportional interest in the Fund than they owned prior to the
    Offer. In addition, an immediate dilution of the net asset value
    per share may be experienced by all shareholders as a result of
    the Offer because the Subscription Price may be less than the
    then current net asset value per share, and the number of shares
    outstanding after the Offer may increase in greater percentage
    than the increase in the size of the Fund&#146;s assets.
    Although it is not possible to state precisely the amount of
    such decrease in net asset value per share, if any, because it
    is not known at this time what the Subscription Price will be,
    what the net asset value per share will be on the Pricing Date,
    or what proportion of the Shares will be subscribed for, such
    dilution could be minimal or substantial. For example, assuming
    (i)&#160;all Rights are exercised, (ii)&#160;the Fund&#146;s net
    asset value on the Pricing Date is
    $&#160;&#160;&#160;&#160;&#160;&#160;per share (the net asset
    value per share
    on&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;,
    2007), and (iii)&#160;the Subscription Price is
    $&#160;&#160;&#160;&#160;&#160;&#160;per share (equal to the
    lower of the NAV at the close of business
    on&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;,
    2007 or 95% of the average of the last reported sale price of a
    share of the Fund&#146;s Common Stock on the NYSE
    on&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;,
    2007, and the four preceding business days), then the
    Fund&#146;s net asset value per share would be reduced by
    approximately $&#160;&#160;&#160;&#160;&#160;&#160;per share
    or&#160;&#160;%.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Leverage
    and Borrowing</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    As discussed above under &#147;Investment Objectives and
    Policies&#160;&#151; Special Investment Methods,&#148; the Fund
    is authorized to borrow. The Fund currently does not have any
    intention to borrow money. Borrowings create an opportunity for
    greater capital appreciation with respect to the Fund&#146;s
    investment portfolio, but at the same time such borrowing is
    speculative in that it will increase the Fund&#146;s exposure to
    capital risk. In addition, borrowed funds are subject to
    interest costs that may offset or exceed the return earned on
    the borrowed funds.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Certain
    Investment Strategies</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The extent of the Fund&#146;s investment in debt and equity
    securities will be determined primarily on the basis of asset
    allocation techniques developed by Dr.&#160;Martin E. Zweig,
    President of the
    <FONT style="white-space: nowrap">Sub-Adviser,</FONT>
    and his staff. While the Investment Adviser seeks to reduce the
    risks associated with investing in debt and equity securities by
    using these techniques, such risks cannot be eliminated. There
    is no assurance that these asset allocation techniques will
    provide protection from the risks of equity investment, enable
    the Fund to be invested consistent with the major trends of the
    market or enable the Fund to achieve its investment objective of
    capital appreciation.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In addition, although the Investment Adviser may use one or more
    of the special investment methods discussed above under
    &#147;Investment Objectives and Policies&#160;&#151; Special
    Investment Methods&#148; to further the Fund&#146;s investment
    objective of capital appreciation
    <FONT style="white-space: nowrap">and/or</FONT>
    reduce losses that might otherwise occur during a time of
    general decline in stock prices, no assurance can be given that
    these investment methods will be used or, if used, will achieve
    either or both of these results. These methods may subject an
    investor in the Fund to greater than average risks and costs.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Certain
    Bond Investments</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Fund, as part of its Bond Investments, may invest up to 10%
    of its total assets in non-convertible debt securities rated
    below the two highest rating categories of Moody&#146;s or
    S&#38;P (or, if unrated, of comparable quality as determined by
    the Investment Adviser). Generally, securities rated below
    investment grade (high yield-high risk fixed income
    securities&#160;&#151; also sometimes referred to as junk bonds)
    have a greater chance that the issuer will be unable to make
    scheduled interest or principal payments when due. Furthermore,
    to the extent that the Fund may invest in such high yield-high
    risk fixed income securities, this will entail greater price
    volatility and credit and interest rate risk than
    investment-grade securities. Analysis of the
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    25
</DIV><!-- END LOGICAL PAGE -->
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    creditworthiness of high yield-high risk issuers is more complex
    than for higher-rated securities, making it more difficult for
    the Investment Adviser to accurately predict risk. If the Fund
    pursues missed interest or principal payments, there is a risk
    that the Fund&#146;s expenses could increase. In addition,
    lower-rated securities may not trade as often and may be less
    liquid than higher-rated securities.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Unrealized
    Appreciation</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    As of December&#160;31, 2005, there was
    $&#160;&#160;&#160;&#160;&#160; or approximately
    $&#160;&#160;&#160;&#160;&#160;&#160;per share of net unrealized
    appreciation in the Fund&#146;s net assets of
    $&#160;&#160;&#160;&#160;&#160;; if realized and distributed, or
    deemed distributed, such gains would, in general, be taxable to
    shareholders, including holders at that time of Shares acquired
    upon the exercise of Rights. See &#147;Taxation.&#148;
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Discount
    from Net Asset Value</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Fund&#146;s shares of Common Stock have traded in the market
    above, at and below net asset value since the commencement of
    the Fund&#146;s operations in September 1988. The Fund cannot
    predict whether the Fund&#146;s Common Stock will in the future
    trade at a premium to or discount from net asset value. The risk
    of the Common Stock trading at a discount is a risk separate
    from a decline in the Fund&#146;s net asset value. See
    &#147;Market Price and Net Asset Value Information&#148; in this
    Prospectus and &#147;Net Asset Value&#148; in the SAI.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Distributions</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Fund&#146;s policy is to make monthly distributions equal to
    0.83% of its net asset value (10% on an annualized basis). If,
    for any monthly distribution, the Fund&#146;s net investment
    income and net realized short-term capital gains are less than
    the amount of the distribution, the difference will be
    distributed from the Fund&#146;s assets. The Fund&#146;s final
    distribution for each calendar year will include any remaining
    net investment income and net realized short-term capital gains
    deemed, for Federal income tax purposes, undistributed during
    the year, as well as all net long-term capital gains realized
    during the year. If, for any calendar year, the total
    distributions exceed net investment income and net realized
    capital gains, the excess will generally be treated as a
    tax-free return of capital (up to the amount of the
    shareholder&#146;s tax basis in his or her shares). The amount
    treated as a tax-free return of capital will reduce a
    shareholder&#146;s adjusted basis in his or her shares, thereby
    increasing his or her potential gain or reducing his or her
    potential loss on the sale of his or her shares. Such excess,
    however, will be treated as ordinary dividend income, and will
    not reduce a shareholder&#146;s adjusted basis in his or her
    shares, up to the amount of the Fund&#146;s current and
    accumulated earnings and profits. Pursuant to the requirements
    of the 1940 Act and other applicable laws, a notice will
    accompany each monthly distribution with respect to the
    estimated source of the distribution made. Such distribution
    policy may, under certain circumstances, have certain adverse
    consequences to the Fund and its shareholders.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Fund has capital loss carryovers in the amount of
    $&#160;&#160;&#160;&#160;&#160; as of December&#160;31, 2005.
    Capital loss carryovers will reduce or, possibly, eliminate the
    Fund&#146;s taxable long-term capital gains in the year(s) to
    which such losses are carried, but will not reduce the
    Fund&#146;s current earnings and profits in such year(s).
    Consequently, a greater portion of the Fund&#146;s dividend
    distributions in the year(s) to which the Fund carries and
    applies its capital loss carryovers may be taxable to
    shareholders as ordinary income dividends than would be the case
    if the Fund did not have capital loss carryovers. Moreover, to
    the extent that such ordinary income dividends are paid out of
    capital gains or other non-dividend income of the Fund, they
    might not qualify for the 15% preferential tax rate.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Fund also might make distributions to shareholders that
    exceed the Fund&#146;s current earnings and profits. In that
    event, because the Fund does not have positive accumulated
    earnings and profits, the excess distributions will be a
    non-taxable return of capital to a shareholder to the extent the
    distribution does not exceed the shareholder&#146;s tax basis in
    its Fund shares, but will also reduce the shareholder&#146;s tax
    basis in its Fund shares.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In the event the Fund distributes amounts in excess of its net
    investment income and net realized capital gains, such
    distributions will decrease the Fund&#146;s total assets and,
    therefore, have the likely effect of increasing the Fund&#146;s
    expense ratio. In addition, in order to make such distributions,
    the Fund may have to sell a portion
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    26
</DIV><!-- END LOGICAL PAGE -->
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    of its investment portfolio at a time when independent
    investment judgment might not dictate such action. Shares
    purchased pursuant to the Offer will be issued after the record
    date for the monthly distribution declared
    in&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;,
    and, accordingly, the Fund will not pay a monthly distribution
    with respect to such Shares until the distribution to be
    declared and paid in the next month. See &#147;Distributions;
    Distribution Reinvestment and Cash Purchase Plan&#148; for a
    discussion of the Fund&#146;s distribution policy.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Anti-takeover
    Provisions</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Fund has provisions in its Articles of Incorporation and
    By-Laws that may have the effect of limiting the ability of
    other entities or persons to acquire control of the Fund, to
    cause it to engage in certain transactions or to modify its
    structure. The Board of Directors is divided into three classes.
    At the annual meeting of shareholders each year, the term of one
    class will expire and directors will be elected to serve in that
    class for terms of three years. This provision could delay for
    up to two years the replacement of a majority of the Board of
    Directors.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    These provisions could have the effect of limiting
    shareholders&#146; opportunity to sell their shares at a premium
    over prevailing market prices by discouraging a third party from
    seeking to obtain control of the Fund in a tender offer or
    similar transaction. See &#147;Description of Common
    Stock&#160;&#151; Special Voting Provisions.&#148;
</DIV>
<A name='109'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">MANAGEMENT
    OF THE FUND</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Board of
    Directors</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The management of the Fund, including general supervision of the
    duties performed by the Investment Adviser under the Investment
    Advisory Agreement (as described below), is the responsibility
    of the Fund&#146;s Board of Directors. For certain information
    regarding the Directors and Officers of the Fund, see
    &#147;Management&#160;&#151; Directors and Officers&#148; in the
    SAI.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Investment
    Adviser and
    <FONT style="white-space: nowrap">Sub-Adviser</FONT></FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Investment Adviser, Phoenix/Zweig Advisers LLC, is a New
    York limited liability company, with offices at 900 Third
    Avenue, New York, New York 10022. The Investment Adviser became
    the Fund&#146;s investment adviser on January&#160;1, 2000,
    following the acquisition of Zweig Total Return Advisors, Inc.,
    the Fund&#146;s former investment adviser, Zweig/Glaser
    Advisers, the Fund&#146;s former administrator, and Zweig
    Securities Corp. by Phoenix Investment Partners, Ltd. on
    March&#160;1, 1999 (the &#147;Acquisition&#148;). The Investment
    Adviser is a wholly owned subsidiary of Phoenix Investment
    Partners, Ltd., wholly-owned investment management subsidiary of
    The Phoenix Companies, Inc., a NYSE-listed company.
    Phoenix/Zweig Advisers LLC and Phoenix Investment Partners, Ltd.
    are registered with the Commission under the Investment Advisers
    Act of 1940, as amended. As of December&#160;31, 2005, Phoenix
    Investment Partners, Ltd. had approximately $37.4&#160;billion
    in assets under management through its investment partners.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Pursuant to an investment advisory agreement dated March&#160;1,
    1999 (the &#147;Investment Advisory Agreement&#148;), the
    Investment Adviser is responsible for the actual management of
    the Fund&#146;s portfolio. The responsibility for making
    decisions to buy, sell or hold a particular investment rests
    with the Investment Adviser, subject to the supervision of the
    Board of Directors and the applicable provisions of the 1940
    Act. The Investment Adviser is also obligated to provide the
    Fund with such executive, administrative, data processing,
    clerical, accounting and bookkeeping services and statistical
    and research data as are deemed advisable by the Board of
    Directors, except to the extent these services are provided by
    an administrator hired by the Fund. The Investment Adviser may
    consider analyses from various other sources, including
    broker-dealers with which the Fund does business and affiliates
    of the Investment Adviser.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Under a services agreement (the
    <FONT style="white-space: nowrap">&#147;Sub-Advisory</FONT>
    Agreement&#148;) with the Investment Adviser, the
    <FONT style="white-space: nowrap">Sub-Adviser,</FONT>
    Zweig Consulting LLC, performs asset allocation research and
    analysis and provides advice thereon to the Investment Adviser
    and actively collaborates in the stock selection process with
    the Investment
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    27
</DIV><!-- END LOGICAL PAGE -->
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Adviser&#146;s portfolio management team. The extent of the
    Fund&#146;s investment in debt and equity securities is
    determined primarily by the Investment Adviser utilizing asset
    allocation techniques developed by Dr.&#160;Martin E. Zweig,
    President of the
    <FONT style="white-space: nowrap">Sub-Adviser,</FONT>
    and his staff.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    For the services provided by the Investment Adviser under the
    Investment Advisory Agreement, the Fund pays the Investment
    Adviser a monthly fee computed at the annual rate of 0.70% of
    the Fund&#146;s average daily net assets during the previous
    month. For the fiscal years ended December&#160;31, 2005, 2004
    and 2003, the Fund accrued investment advisory fees of
    $&#160;&#160;&#160;&#160;&#160;, $&#160;&#160;&#160;&#160;&#160;
    and $&#160;&#160;&#160;&#160;&#160;, respectively. The
    Investment Adviser will pay the
    <FONT style="white-space: nowrap">Sub-Adviser</FONT>
    an annual fee equal to 40% of the investment advisory fees
    received by the Investment Adviser from the Fund and The Zweig
    Fund, Inc., payable monthly in arrears.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Board of Directors, including a majority of the
    disinterested Directors, has the responsibility under the 1940
    Act to approve the continuance of the Investment Advisory
    Agreement and the
    <FONT style="white-space: nowrap">Sub-Advisory</FONT>
    Agreement. At a meeting of the Directors held on
    February&#160;15, 2006, the Board of Directors, including a
    majority of the disinterested Directors, approved the
    continuance of the Investment Advisory Agreement and the
    <FONT style="white-space: nowrap">Sub-Advisory</FONT>
    until March&#160;1, 2007. A discussion regarding the basis for
    the approval of this continuance is contained in the Fund&#146;s
    June&#160;30, 2006 Semi-Annual Report to Shareholders.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    PXP Securities Corp. or any other brokerage affiliate (the
    &#147;Brokerage Affiliate&#148;) may act as a broker for the
    Fund. In order for the Brokerage Affiliate to effect any
    portfolio transactions for the Fund, the commissions, fees or
    other remuneration received by the Brokerage Affiliate must be
    reasonable and fair compared to the commissions, fees or other
    remuneration paid to other brokers in connection with comparable
    transactions involving similar securities being purchased or
    sold on an exchange during a comparable period of time. The Fund
    will not deal with the Brokerage Affiliate in any portfolio
    transaction in which the Brokerage Affiliate would act as
    principal.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Dr.&#160;Martin
    E. Zweig</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Dr.&#160;Martin E. Zweig, the President of the
    <FONT style="white-space: nowrap">Sub-Adviser,</FONT>
    has been in the business of providing investment advisory
    services for over 35&#160;years. Dr.&#160;Zweig and his
    associates determine asset allocation strategies to assist the
    Investment Adviser in its management of the Fund.
    Dr.&#160;Zweig, on behalf of the
    <FONT style="white-space: nowrap">Sub-Adviser,</FONT>
    actively collaborates in the stock selection process with the
    Investment Adviser&#146;s portfolio management team.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Portfolio
    Managers</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Investment Adviser&#146;s
    <FONT style="white-space: nowrap">day-to-day</FONT>
    stock and bond selections for the Fund are made by
    Mr.&#160;Carlton Neel and Mr.&#160;David Dickerson.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Mr.&#160;Neel has been the Executive Vice President and
    Portfolio Manager of the Fund since 2003, and he is also the
    portfolio manager for The Zweig Fund, Inc. He had been making
    the
    <FONT style="white-space: nowrap">day-to-day</FONT>
    bond selections for the Fund from
    <FONT style="white-space: nowrap">1995-2002.</FONT>
    In addition, Mr.&#160;Neel is a portfolio manager of the Phoenix
    Market Neutral Fund and the Phoenix Small Cap Value Fund, both
    managed by Euclid Advisors, an investment management subsidiary
    of Phoenix Investment Partners. Prior to joining the Investment
    Adviser in 1995, Mr.&#160;Neel was a Vice President with
    J.P.&#160;Morgan&#160;&#38; Co., Inc. From
    <FONT style="white-space: nowrap">2002-2003,</FONT>
    he was a Managing Director and co-founder of Shelter Rock
    Capital Partners, L.P.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Mr.&#160;Dickerson has been Senior Vice President and Portfolio
    Manager of the Fund since 2003, and he is also the portfolio
    manager for The Zweig Fund, Inc. In addition, Mr.&#160;Dickerson
    is a portfolio manager of the Phoenix Market Neutral Fund and
    the Phoenix Small Cap Value Fund, both managed by Euclid
    Advisors, an investment management subsidiary of Phoenix
    Investment Partners. Mr.&#160;Dickerson, who is a Senior Vice
    President of the Investment Adviser, had been with the
    Investment Adviser from
    <FONT style="white-space: nowrap">1993-2002.</FONT>
    From
    <FONT style="white-space: nowrap">2002-2003,</FONT>
    he was a Managing Director and co-founder of Shelter Rock
    Capital Partners, L.P.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The SAI provides additional information about the Portfolio
    Managers&#146; compensation, other accounts managed by the
    Portfolio Managers, and the Portfolio Managers&#146; ownership
    of securities of the Fund.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    28
</DIV><!-- END LOGICAL PAGE -->
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Investment
    Advisory Agreement</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Investment Advisory Agreement sets forth the services to be
    provided by and the fees to be paid to each party, as described
    above. The Investment Advisory Agreement provides that the
    Investment Adviser&#146;s liability to the Fund and its
    shareholders is limited to situations involving its own willful
    misfeasance, bad faith or gross negligence in the performance of
    its duties or by reason of its reckless disregard of its duties
    and obligations under the Investment Advisory Agreement.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The services of the Investment Adviser to the Fund are not
    deemed to be exclusive, and the Investment Adviser or any
    affiliate thereof may provide similar services to other
    investment companies and other clients or engage in other
    activities.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Investment Advisory Agreement obligates the Investment
    Adviser to provide advisory services and to pay all expenses
    arising from the performance of its obligations under the
    Investment Advisory Agreement, as well as the fees of all
    Directors of the Fund who are employees of the Investment
    Adviser or any of its affiliates. The Fund pays all other
    expenses incurred in the operation of the Fund including, but
    not limited to, direct charges relating to the purchase and sale
    of portfolio securities, interest charges, fees and expenses of
    attorneys and auditors, taxes and governmental fees, cost of
    stock certificates and any other expenses (including clerical
    expenses) of issuance, sale or repurchase of shares of the
    Fund&#146;s Common Stock, expenses in connection with the
    Fund&#146;s Distribution Reinvestment and Cash Purchase Plan,
    membership fees in trade associations, expenses of registering
    and qualifying shares of the Fund&#146;s common stock for sale
    under Federal and state securities laws, expenses of obtaining
    and maintaining any stock exchange listings of the Fund&#146;s
    Common Stock, expenses of printing and distributing reports,
    prospectuses, shareholder notices and proxy materials, expenses
    of corporate data processing and related services, shareholder
    record-keeping and shareholder account services (including
    salaries of shareholder relations personnel), expenses of
    auditors and escrow agents, expenses of printing and filing
    reports and other documents filed with governmental agencies,
    expenses of annual and special shareholders&#146; meetings, fees
    and disbursements of the Fund&#146;s administrator, transfer
    agents, custodians and subcustodians (if any), expenses of
    disbursing dividends and distributions, fees, expenses and
    <FONT style="white-space: nowrap">out-of-pocket</FONT>
    costs of Directors of the Fund who are not interested persons of
    the Fund or the Investment Adviser, insurance premiums and
    litigation, indemnification and other expenses not expressly
    provided for in the Investment Advisory Agreement or the
    Administration Agreement.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Investment Advisory Agreement will remain in effect from
    year to year if approved annually (i)&#160;by the Board of
    Directors of the Fund or by the holders of a majority of the
    Fund&#146;s outstanding voting securities, and (ii)&#160;by a
    majority of the Directors who are not parties to the Investment
    Advisory Agreement or interested persons of any such party. The
    Investment Advisory Agreement terminates on its assignment by
    either party, and may be terminated without penalty on not more
    than 60&#160;days&#146; prior written notice at the option of
    either party thereto, or by the affirmative vote of the holders
    of a majority of the Fund&#146;s outstanding voting securities.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Investment Advisory Agreement provides that the Fund may use
    &#147;Zweig&#148; as part of its name for so long as the
    Investment Adviser serves as investment adviser to the Fund. The
    Fund has agreed that, in the event the Investment Advisory
    Agreement is terminated, the Fund will promptly take such
    actions as may be necessary to change its corporate name to one
    not containing the word &#147;Zweig,&#148; and the Fund will
    thereafter not transact business in a corporate name using the
    word &#147;Zweig&#148; in any form or combination whatsoever.
    Phoenix Investment Partners, Ltd. has obtained, pursuant to an
    agreement, an exclusive worldwide license to use the word
    &#147;Zweig&#148; with respect to its investment advisory
    business.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times"><FONT style="white-space: nowrap">Sub-Advisory</FONT>
    Agreement</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The
    <FONT style="white-space: nowrap">Sub-Advisory</FONT>
    Agreement sets forth the services to be provided by and the fees
    to be paid to the
    <FONT style="white-space: nowrap">Sub-Adviser.</FONT>
    The
    <FONT style="white-space: nowrap">Sub-Adviser</FONT>
    has been engaged by the Investment Adviser to perform asset
    allocation techniques, research and analysis and provide advice
    thereon to the Investment Adviser and to actively collaborate in
    the stock selection process with the Investment Adviser&#146;s
    portfolio management team. Pursuant to the
    <FONT style="white-space: nowrap">Sub-Advisory</FONT>
    Agreement, the services are rendered by Dr.&#160;Martin E. Zweig
    and his designated research associates on behalf of the
    <FONT style="white-space: nowrap">Sub-Adviser.</FONT>
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    29
</DIV><!-- END LOGICAL PAGE -->
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    For services provided by the
    <FONT style="white-space: nowrap">Sub-Adviser</FONT>
    to the Fund under the
    <FONT style="white-space: nowrap">Sub-Advisory</FONT>
    Agreement, the Investment Adviser will pay the
    <FONT style="white-space: nowrap">Sub-Adviser</FONT>
    an annual fee equal to 40% of the investment advisory fees
    received by the Investment Adviser from the Fund and The Zweig
    Fund, Inc., payable monthly in arrears.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The
    <FONT style="white-space: nowrap">Sub-Advisory</FONT>
    Agreement will remain in effect until March&#160;1, 2007,
    provided that from year to year it has been approved annually
    (i)&#160;by the Board of Directors of the Fund or by the holders
    of a majority of the Fund&#146;s outstanding voting securities,
    and (ii)&#160;by a majority of the Directors who are not parties
    to the
    <FONT style="white-space: nowrap">Sub-Advisory</FONT>
    Agreement or interested persons of any such party. The
    <FONT style="white-space: nowrap">Sub-Advisory</FONT>
    Agreement terminates on its assignment by either party, and may
    be terminated without penalty on not more than
    60&#160;days&#146; prior written notice at the option of the
    Fund&#146;s Board of Directors, or by the affirmative vote of
    the holders of a majority of the Fund&#146;s outstanding voting
    securities.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Administrator</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Administrator, Phoenix Equity Planning Corporation, serves
    as the Fund&#146;s administrator pursuant to an assignment by
    Zweig/Glaser Advisers of the Administration Agreement dated
    March&#160;1, 1999 (the &#147;Administration Agreement&#148;).
    The Administrator generally assists in the administration of the
    Fund&#146;s day to day corporate affairs, subject to the overall
    authority of the Fund&#146;s Board of Directors. The
    Administrator determines the Fund&#146;s net asset value daily,
    prepares such figures for publication on a weekly basis,
    maintains certain of the Fund&#146;s books and records that are
    not maintained by the Investment Adviser, custodian or transfer
    agent, assists in the preparation of financial information for
    the Fund&#146;s income tax returns, proxy statement, quarterly
    and annual shareholder reports, assists in the preparation of
    Commission Reports and responds to shareholder inquiries.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Fund pays the Administrator a monthly fee computed at an
    annual rate of 0.065% of the Fund&#146;s average daily net
    assets during the previous month. For the fiscal years ended
    December&#160;31, 2005, 2004 and 2003, the Fund accrued
    administrative fees of $&#160;&#160;&#160;&#160;&#160;,
    $&#160;&#160;&#160;&#160;&#160;, and
    $&#160;&#160;&#160;&#160;&#160;.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    30
</DIV><!-- END LOGICAL PAGE -->
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->
<A name='110'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">DISTRIBUTIONS;
    DISTRIBUTION REINVESTMENT AND CASH PURCHASE PLAN</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Fund&#146;s policy is to distribute to shareholders on a
    monthly basis 0.83% of its net asset value (10% on an annualized
    basis). If, for any monthly distribution, the Fund&#146;s net
    investment income and net realized short-term capital gains are
    less than the amount of the distribution, the difference will be
    distributed from the Fund&#146;s assets. The Fund&#146;s final
    distribution for each calendar year will include any remaining
    net investment income and net realized short-term capital gains
    deemed, for Federal income tax purposes, undistributed during
    the year, as well as all net long-term capital gains realized
    during the year. If, for any calendar year, the total
    distributions exceed net investment income and net realized
    capital gains, the excess will generally be treated as a
    tax-free return of capital (up to the amount of the
    shareholder&#146;s tax basis in his or her shares). The amount
    treated as a tax-free return of capital will reduce a
    shareholder&#146;s adjusted basis in his or her shares, thereby
    increasing his or her potential gain or reducing his or her
    potential loss on the sale of his or her shares. Such excess,
    however, will be treated as ordinary dividend income up to the
    amount of the Fund&#146;s current and accumulated earnings and
    profits. The Fund has capital loss carryovers in the amount of
    $&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; as
    of December&#160;31, 2005. Capital loss carryovers will reduce
    or, possibly, eliminate the Fund&#146;s taxable long-term
    capital gains in the year(s) to which such losses are carried,
    but will not reduce the Fund&#146;s current earnings and profits
    in such year(s). Consequently, a greater portion of the
    Fund&#146;s dividend distributions in the year(s) to which the
    Fund carries and applies its capital loss carryovers may be
    taxable to shareholders as ordinary income dividends than would
    be the case if the Fund did not have capital loss carryovers.
    Moreover, to the extent that such ordinary income dividends are
    paid out of capital gains or other non-dividend income of the
    Fund, they might not qualify for the 15% preferential tax rate.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Fund also might make distributions to shareholders that
    exceed the Fund&#146;s current earnings and profits. In that
    event, because the Fund does not have positive accumulated
    earnings and profits, the excess distributions will be a
    non-taxable return of capital to a shareholder to the extent the
    distribution does not exceed the shareholder&#146;s tax basis in
    its Fund shares, but will also reduce the shareholder&#146;s tax
    basis in its Fund shares.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In calculating the amount of each monthly distribution, the
    Fund&#146;s net asset value will be measured as of the business
    day immediately preceding the declaration date of such
    distribution. Pursuant to the requirements of the 1940 Act and
    other applicable laws, a notice will accompany each monthly
    distribution with respect to the estimated source of the
    distribution made.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In the event the Fund distributes amounts in excess of its net
    investment income and net realized capital gains, such
    distributions will decrease the Fund&#146;s total assets and,
    therefore, have the likely effect of increasing the Fund&#146;s
    expense ratio. In addition, in order to make such distributions,
    the Fund may have to sell a portion of its investment portfolio
    at a time when independent investment judgment might not dictate
    such action.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Shares purchased pursuant to the Offer will be issued after the
    record date for the monthly distribution declared
    in&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;,
    and, accordingly, the Fund will not pay a monthly distribution
    with respect to such Shares until the distribution to be
    declared and paid in the next month.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Shareholders may elect to receive all distributions in cash paid
    by check mailed directly to the shareholder by Computershare, as
    dividend paying agent. Pursuant to the Distribution Reinvestment
    and Cash Purchase Plan (or the &#147;Plan&#148;), shareholders
    not making such election will have all such amounts
    automatically reinvested by Computershare, as the Plan agent, in
    whole or fractional shares of the Fund, as the case may be.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If the Directors of the Fund declare a distribution payable
    either in shares or in cash, as shareholders may have elected,
    then nonparticipants in the Plan will receive cash and
    participants in the Plan will receive the equivalent in shares
    determined as follows: Whenever the market price of the shares
    on the record date for the distribution is equal to or exceeds
    their net asset value, participants will be issued shares at the
    higher of net asset value or 95% of the closing market price of
    the shares on the NYSE on the previous trading day. If the
    shares&#146; net asset value at such time exceeds their market
    price, or if the Fund should declare a distribution payable only
    in cash, Computershare, as agent for the participants, will buy
    shares on the NYSE or elsewhere in the open market, for the
    participants&#146; accounts. If, before Computershare has
    completed its purchases, the market price equals or exceeds the
    net asset value of the shares, Computershare is permitted to
    cease
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    31
</DIV><!-- END LOGICAL PAGE -->
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<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    purchasing the shares in the open market and the Fund may issue
    the remaining shares at a price equal to the higher of net asset
    value or 95% of the then market price. Computershare will apply
    all cash received as a distribution to purchase shares on the
    open market as soon as practicable after the payment date of
    such distribution, but in no event later than 30&#160;days after
    such date, except where necessary to comply with applicable
    provisions of the Federal securities laws.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Participants in the Plan have the option of making additional
    cash payments monthly to Computershare for investment in the
    Fund&#146;s shares. Such payments may be made in any amount from
    $100 to $3,000. Computershare will use all such payments
    received from participants to purchase shares on the open market
    on or about the fifteenth day of each month (or the closest
    business day thereto, if a weekend or holiday). To avoid
    unnecessary cash accumulations, and also to allow ample time for
    receipt and processing by Computershare, it is suggested that
    participants send voluntary cash payments to Computershare at
    least five business days prior to the date for which a voluntary
    purchase is desired. A participant may withdraw a voluntary cash
    payment by written notice, if the notice is received by
    Computershare at least five business days before such payment is
    to be invested.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Computershare maintains all shareholder accounts in the Plan and
    furnishes written confirmations of all transactions in the
    accounts, including information needed by shareholders for
    personal and tax records. Shares in the account of each Plan
    participant will be held by Computershare in non-certificated
    form in the name of the participant, and each shareholder&#146;s
    proxy will include those shares purchased pursuant to the Plan.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    There is no charge to participants for reinvesting distributions
    or voluntary cash payments. Computershare&#146;s fees for
    handling reinvestment of distributions will be paid by the Fund.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    There will be no brokerage charges with respect to shares issued
    directly by the Fund as a result of distributions payable either
    in stock or in cash. However, each participant will pay a
    pro-rata share of brokerage commissions incurred with respect to
    Computershare&#146;s open market purchases in connection with
    the reinvestment of distributions as well as from voluntary cash
    payments. With respect to purchases from voluntary cash
    payments, Computershare will charge each participant a pro-rata
    share of the brokerage commissions. Brokerage charges for
    purchasing small amounts of stock for individual accounts
    through the Plan are expected to be less than the usual
    brokerage charges for such transactions, as Computershare will
    be purchasing shares for all participants in blocks and
    prorating the lower commission thus attainable. Computershare
    may use its affiliates
    <FONT style="white-space: nowrap">and/or</FONT>
    affiliates of the Investment Adviser for all trading activity
    relative to the Plan on behalf of Plan participants. Such
    affiliates will receive a commission in connection with such
    trading transactions.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If a shareholder desires to discontinue his or her participation
    in the Plan, the shareholder may either (i)&#160;request
    Computershare to sell part or all of the shares in the account
    and remit the proceeds to the shareholder, net of any brokerage
    commission, or (ii)&#160;ask Computershare for a certificate for
    the number of full shares in his or her account, along with a
    check in payment for any fractional shares.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Although many brokers do participate in the Plan on behalf of
    their customers, a participant in the Plan who does change his
    or her broker may not be able to transfer the shares to another
    broker and continue to participate in the Plan.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The automatic reinvestment of distributions will not relieve
    participants of any income tax that may be payable on such
    distributions.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Experience under the Plan may indicate that changes are
    desirable. Accordingly, the Fund reserves the right to amend or
    terminate the Plan as applied to any voluntary cash payments
    made and any dividend or distribution paid subsequent to written
    notice of the change sent to participants in the Plan. The Plan
    also may be amended or terminated by Computershare, with the
    Fund&#146;s prior written consent, upon written notice sent to
    participants in the Plan. All correspondence concerning the Plan
    should be directed to Computershare Trust Company, N.A., P.O.
    Box&#160;43010, Providence, RI
    <FONT style="white-space: nowrap">02940-3010.</FONT>
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    32
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->
<A name='111'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">DESCRIPTION
    OF COMMON STOCK</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The authorized capital stock of the Fund consists of
    500,000,000&#160;shares of Common Stock, par value
    $0.001&#160;per share, of which 92,233,099.4993&#160;shares were
    outstanding as of December&#160;11, 2006. The Shares when
    issued, will be fully paid and nonassessable. All shares of
    Common Stock are equal as to dividends, assets and voting
    privileges and have no conversion, preemptive or exchange
    rights. In the event of liquidation, each share of Common Stock
    is entitled to its proportion of the Fund&#146;s assets after
    payment of debts and expenses. Shareholders are entitled to one
    vote per share. All voting rights for directors are
    non-cumulative, which means that the holders of more than 50% of
    the shares of common stock can elect 100% of the directors if
    they choose to do so, and, in such event, the holders of the
    remaining shares of common stock will not be able to elect any
    directors. The Fund&#146;s outstanding shares of Common Stock
    are, and the Shares offered hereby will be, listed on the NYSE
    under the symbol &#147;ZTR.&#148;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Fund has no present intention of offering additional shares
    beyond this Offering, except that additional shares may be
    issued under the Distribution Reinvestment and Cash Purchase
    Plan. See &#147;Distributions; Distribution Reinvestment and
    Cash Purchase Plan.&#148; Other offerings of its Common Stock,
    if made, will require approval of the Fund&#146;s Board of
    Directors. Any additional offering will be subject to the
    requirements of the 1940 Act that shares may not be sold at a
    price below the then current net asset value (exclusive of
    underwriting discounts and commissions) except in certain
    circumstances, including in connection with an offering to
    existing shareholders or with the consent of a majority of the
    Fund&#146;s outstanding shareholders.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Repurchase
    of Shares; Tender Offers</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Fund is authorized to repurchase its shares on the open
    market when the shares are trading at a discount from net asset
    value, and the Fund may incur debt to refinance share repurchase
    transactions. In addition, pursuant to the 1940 Act, the Fund
    retains the right to repurchase its shares under other
    circumstances on a securities exchange or such other open market
    designated by the Commission (provided that the Fund has
    informed shareholders within the preceding six months of its
    intention to repurchase such shares), by a tender offer open to
    all the Fund&#146;s shareholders, or as otherwise permitted by
    the Commission. When a repurchase of Fund shares is to be made
    that is not to be effected on a securities exchange or such an
    open market or by the making of a tender offer, the 1940 Act
    provides that certain conditions must be met regarding, among
    other things, distribution of net income, identity of the
    seller, price paid, brokerage commissions, prior notice to
    shareholders of an intention to purchase shares and purchasing
    in a manner on a basis which does not discriminate unfairly
    against the other shareholders indirectly through their interest
    in the Fund. The Fund may incur debt to finance share repurchase
    transactions (see &#147;Investment Restrictions&#148; in the
    SAI).
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    When the Fund repurchases its shares for a price below their net
    asset value, the net asset value of the shares that remain
    outstanding will be enhanced, but this does not necessarily mean
    that the market price of those outstanding shares will be
    affected, either positively or negatively. The Fund has not
    repurchased any shares of its Common Stock.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Since the Fund&#146;s inception in 1988, the Board of Directors
    has maintained a policy pursuant to which the Board of Directors
    considers the making of tender offers of the Fund each quarter
    during periods when the Fund&#146;s shares are trading at a
    discount from net asset value. The Board may at any time,
    however, decide that the Fund should not make tender offers. The
    net asset value at which shares may be tendered will be
    established at the close of business on the last day the tender
    offer is open. Since the Fund&#146;s inception, however, the
    Fund has not made any tender offers for the shares of its Common
    Stock.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Any acquisition of shares by the Fund (whether through a share
    repurchase or a tender offer) will decrease the total assets of
    the Fund and therefore have the effect of increasing the
    Fund&#146;s expense ratio. Furthermore, if the Fund borrows to
    finance share repurchases or tender offers, interest on such
    borrowings will reduce the Fund&#146;s net investment income. If
    the Fund must liquidate a portion of its investment portfolio in
    connection with a share repurchase or tender offer, such
    liquidation might be at a time when independent investment
    judgment might not dictate such action and, accordingly, may
    increase the Fund&#146;s portfolio turnover and make it more
    difficult for the Fund to achieve its investment objective.
</DIV>

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    <BR>
    33
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Each person tendering shares will pay to the Fund a reasonable
    service charge to help defray certain costs, including the
    processing of tender forms, effecting payment, postage and
    handling. Any such service charge will be paid directly by the
    tendering shareholder and will not be deducted from the proceeds
    of the purchase. The Fund&#146;s transfer agent will receive the
    fee as an offset to these costs. The Fund expects the cost to
    the Fund of effecting a tender offer will exceed the aggregate
    of all service charges received from those who tender their
    shares. Costs associated with the tender will be charged against
    capital. During the pendency of any tender offer, shareholders
    may ascertain the net asset value of the Fund&#146;s shares by
    calling a telephone number as provided in any tender offer
    materials.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Provision
    For Conversion To Open-End Fund</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If during any fiscal quarter beginning on or after
    January&#160;1, 1990, the Fund&#146;s shares trade, on the
    principal securities exchange on which they are traded, at an
    average discount from net asset value of 10% or more (determined
    on the basis of the discount as of the end of the last trading
    day in each week during such quarter), the Fund&#146;s Articles
    of Incorporation generally require the Board of Directors to
    submit to shareholders a proposal to convert the Fund to an
    open-end investment company (the &#147;Conversion
    Proposal&#148;). The Fund submitted a Conversion Proposal to its
    shareholders in 2001, 2002 and 2004 since the Fund&#146;s shares
    had traded at an average discount from net asset value of 10% or
    more during the quarter ended March&#160;31, 2000, the quarter
    ended December&#160;31, 2000 and the quarter ended
    December&#160;31, 2003, respectively. The Fund&#146;s
    shareholders did not approve the Conversion Proposal on any of
    those occasions. Approval of a Conversion Proposal would require
    the affirmative vote of a majority of the outstanding shares of
    the Fund entitled to be voted thereon. The Fund&#146;s Articles
    of Incorporation provide, however, that a Conversion Proposal
    need not be submitted to shareholders with respect to a quarter
    if a Conversion Proposal was submitted to shareholders with
    respect to the immediately preceding quarter.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If the Fund converted to an open-end investment company, its
    shareholders could require the company to redeem their shares at
    any time (except in certain circumstances as authorized by the
    1940 Act) at the next determined net asset value of such shares,
    less such redemption charges, if any, as might be in effect at
    the time of redemption, and such redemption payment must be made
    within seven days. This may require changes in the Fund&#146;s
    portfolio management, since such redemption requests could
    require the Fund&#146;s liquidation of a portion of its
    investment portfolio at a time when independent investment
    judgment might not dictate such action and, accordingly, may
    increase the Fund&#146;s portfolio turnover and make it more
    difficult for the Fund to achieve its investment objective. In
    addition, if the Fund converted to an open-end investment
    company, its shares would no longer be listed on any stock
    exchange, and certain of the Fund&#146;s expenses (including
    transfer agency and shareholder services expenses) would be
    greater than those that would be incurred by a closed-end
    investment company.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In the event the Fund&#146;s shareholders did not approve a
    proposal to convert the Fund to an open-end investment company,
    the Fund would continue as a closed-end investment company, but
    pursuant to the Fund&#146;s Articles of Incorporation, the Board
    of Directors would be required to submit to the Fund&#146;s
    shareholders a subsequent Conversion Proposal with respect to
    any subsequent quarter during which there was an average
    discount of 10% or more from net asset value, unless the
    Conversion Proposal had been submitted to shareholders with
    respect to the immediately preceding quarter. The Fund cannot
    predict whether any open market repurchases or tender offer
    purchases of its shares made while the Fund is a closed-end
    investment company would decrease the discount from net asset
    value. To the extent that any such open market repurchases or
    tender offer purchases decreased the average discount from net
    asset value to below 10% for a fiscal quarter, the Fund would
    not be required to submit to its shareholders the Conversion
    Proposal with respect to such quarter.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Special
    Voting Provisions</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Fund has provisions in its Articles of Incorporation and
    By-Laws (collectively, the &#147;Charter Documents&#148;) that
    could have the effect of limiting the ability of other entities
    or persons to acquire control of the Fund, to cause it to engage
    in certain transactions or to modify its structure. The Board of
    Directors is divided into three classes. At the annual meeting
    of shareholders each year, the term of one class will expire
</DIV>

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    <BR>
    34
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    and directors will be elected to serve in that class for terms
    of three years. This provision could delay for up to two years
    the replacement of a majority of the Board of Directors.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The maximum number of Directors (twelve) may be increased, or a
    Director may be removed from office, only by the affirmative
    vote of the holders of at least 75% of the shares of the Fund
    entitled to be voted for the election of Directors. In addition,
    the affirmative vote of the holders of 75% of the outstanding
    shares of the Fund is required to authorize the conversion of
    the Fund from a closed-end to an open-end investment company
    (except pursuant to the Conversion Proposal described above), to
    amend certain of the provisions of the Articles of Incorporation
    or generally to authorize any of the following transactions:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (i)&#160;merger or consolidation or statutory share exchange of
    the Fund with or into any other corporation;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (ii)&#160;a sale of all or substantially all of the Fund&#146;s
    assets (other than in the regular course of the Fund&#146;s
    investment activities);&#160;or
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (iii)&#160;a liquidation or dissolution of the Fund,
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    unless such action has been approved, adopted or authorized by
    the affirmative vote of two-thirds of the total number of
    Directors fixed in accordance with the By-Laws, in which case
    the affirmative vote of a majority of the Fund&#146;s
    outstanding shares is required. Such 75% voting requirements
    described above, which are greater than the minimum requirements
    under Maryland law or the Act, can only be changed by a similar
    75% vote. Reference is made to the Charter Documents of the
    Fund, on file with the Commission, for the full text of these
    provisions. See &#147;Further Information.&#148;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The provisions of the Charter Documents described above and the
    Fund&#146;s right to repurchase or make a tender offer for
    shares of its common stock could have the effect of depriving
    the owners of shares of opportunities to sell their shares at a
    premium over prevailing market prices, by discouraging a third
    party from seeking to obtain control of the Fund in a tender
    offer or similar transaction. See &#147;Repurchase of
    Shares&#148; and &#147;Tender Offers.&#148;
</DIV>
<A name='112'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">TAXATION</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Federal
    Taxation of the Fund and its Distributions</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Fund has qualified and elected to be treated, and intends to
    continue to qualify and be treated, as a regulated investment
    company under the Internal Revenue Code of 1986, as amended (the
    &#147;Code&#148;). The Fund currently intends to distribute all
    or substantially all its investment company taxable income (all
    taxable income and net short-term capital gains) and its net
    capital gain each year, thereby avoiding the imposition on the
    Fund of Federal income and excise taxes on such distributed
    income and gain. Such distributions from investment company
    taxable income, whether paid in cash or in shares, will be
    taxable as ordinary income to shareholders of the Fund who are
    subject to tax, and the Fund&#146;s capital gain distributions,
    whether paid in cash or in shares, will be taxable as capital
    gain to such shareholders. Distributions in excess of the
    Fund&#146;s earnings and profits will first reduce the adjusted
    tax basis of a shareholder&#146;s shares and, after such
    adjusted tax basis is reduced to zero will constitute capital
    gain to such shareholder (assuming such shares are held as a
    capital asset). For non-corporate U.S.&#160;shareholders, the
    Fund&#146;s capital gains distributions and certain of its
    ordinary income distributions will be taxable at a maximum
    marginal Federal income tax rate of 15%. Shareholders that are
    not subject to tax on their income generally will not be
    required to pay tax on amounts distributed to them.
    Notwithstanding the above, the Fund may decide to retain all or
    part of any net capital gain for reinvestment. After the end of
    each taxable year, the Fund will notify shareholders of the
    Federal income tax status of any distributions, or deemed
    distributions, made by the Fund during such year. For a
    discussion of certain income tax consequences to shareholders of
    the Fund, see &#147;Taxation&#148; in the SAI.
</DIV>

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    <BR>
    35
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Federal
    Income Tax Consequences Relating to the Offer</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The following discussion describes certain United States Federal
    income tax consequences of the Offer generally applicable to
    citizens or residents of the United States and U.S.&#160;trusts,
    estates, corporations and any other person who is generally
    subject to U.S.&#160;Federal income tax
    (&#147;U.S.&#160;Shareholders&#148;). This summary is intended
    to be descriptive only and does not purport to be a complete
    analysis or listing of all potential tax effects relevant to the
    ownership of Rights or Common Stock. It assumes that each
    U.S.&#160;Shareholder holds Common Stock as a capital asset.
    Additionally, this summary does not specifically address the
    U.S.&#160;Federal income tax consequences that might be relevant
    to holders of Rights or Common Stock entitled to special
    treatment under the U.S.&#160;Federal income tax laws, such as
    individual retirement accounts and other tax deferred accounts,
    financial institutions, life insurance companies and tax-exempt
    organizations, and does not discuss the effect of state, local
    and other tax laws. Further, this summary is based on
    interpretations of existing law as of the date of this
    Prospectus as contained in the Code, applicable current and
    proposed Treasury Regulations, judicial decisions and published
    administrative positions of the Internal Revenue Service, all of
    which are subject to change either prospectively or
    retroactively.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    U.S.&#160;Shareholders who receive Rights pursuant to the Offer
    should not recognize taxable income for U.S.&#160;Federal income
    tax purposes upon their receipt of the Rights. If Rights issued
    to a U.S.&#160;Shareholder expire without being sold or
    exercised, no basis should be allocated to such Rights, and such
    Shareholder should not recognize any gain or loss for
    U.S.&#160;Federal income tax purposes upon such expiration.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The tax basis of a U.S.&#160;Shareholder&#146;s Common Stock
    should remain unchanged and the shareholder&#146;s basis in the
    Rights should be zero, unless such U.S.&#160;Shareholder
    affirmatively and irrevocably elects (in a statement attached to
    such shareholder&#146;s U.S.&#160;Federal income tax return for
    the year in which the Rights are received) to allocate the basis
    in the Common Stock between such Common Stock and the Rights in
    proportion to their respective fair market values on the date of
    distribution.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    A U.S.&#160;Shareholder who exercises Rights should not
    recognize any gain or loss for U.S.&#160;Federal income tax
    purposes upon the exercise. The tax basis of the newly acquired
    Common Stock should equal the Subscription Price paid for the
    Common Stock (plus the basis, if any, allocated to the Rights in
    the manner described in the immediately preceding paragraph).
    The holding period for Common Stock acquired upon the exercise
    of Rights should begin on the date of exercise of the Rights.
    See &#147;Taxation&#148; in the SAI.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Each U.S.&#160;Shareholder is urged to consult his or her own
    tax advisor with respect to the specific Federal, state and
    local tax consequences to such U.S.&#160;Shareholder of
    receiving Rights in this offer.
</DIV>
<A name='113'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">CUSTODIAN,
    DIVIDEND PAYING AGENT, TRANSFER AGENT AND REGISTRAR</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    State Street Bank and Trust Company, P.O. Box&#160;5501, Boston,
    MA
    <FONT style="white-space: nowrap">02206-5501</FONT>
    serves as the Fund&#146;s custodian. Computershare Trust
    Company, N.A., P.O. Box&#160;43010, Providence, Rhode Island
    <FONT style="white-space: nowrap">02940-3010,</FONT>
    serves as the Fund&#146;s dividend paying agent, transfer agent
    and registrar.
</DIV>
<A name='114'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">EXPERTS</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The financial statements of the Fund for the year ended
    December&#160;31, 2005, and the financial highlights included in
    this Prospectus, have been so included in reliance on the report
    of PricewaterhouseCoopers LLP, Boston, Massachusetts,
    independent accountants, given on the authority of said firm as
    experts in auditing and accounting.
</DIV>
<A name='115'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">LEGAL
    MATTERS</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The validity of the Shares under Maryland law will be passed on
    for the Fund by Venable LLP, Baltimore, Maryland. Certain other
    matters may be passed on for the Fund by Katten Muchin Rosenman
    LLP, New York, New York, which serves as counsel to the Fund.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    36
</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->
<A name='116'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">FURTHER
    INFORMATION</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Further information concerning these securities and the Fund may
    be found in the Registration Statement on file with the
    Commission, of which this Prospectus and the SAI incorporated by
    reference herein constitute a part. Financial statements of the
    Fund for fiscal years ended December&#160;31, 2004 and
    December&#160;31, 2005 are included in the Fund&#146;s annual
    reports to shareholders for such years, copies of which are on
    file with and may be inspected at the Commission as indicated
    below.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Fund is subject to the informational requirements of the
    Securities Exchange Act of 1934, as amended (the &#147;Exchange
    Act&#148;), and the 1940 Act, and in accordance therewith, is
    required to file periodic reports proxy statements and other
    information with the Commission relating to its business,
    financial condition and other matters. Such information is
    available for inspection at the public reference facilities of
    the Commission at Room&#160;1024, 100 F Street, NE, Washington,
    DC 20549. Copies of such information are obtainable by mail,
    upon payment of the Commission&#146;s customary charges, by
    writing to the Commission&#146;s principal office at 100 F
    Street, NE, Washington, DC 20549 at prescribed rates. The
    Commission maintains a web site (http://www.sec.gov) that
    contains periodic reports, proxy statements and other
    information regarding registrants that file documents
    electronically with the Commission. Such reports and other
    information concerning the Fund may also be inspected at the
    offices of the NYSE.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    37
</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->
<A name='117'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">TABLE OF
    CONTENTS<BR>
    </FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">OF<BR>
    </FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">STATEMENT
    OF ADDITIONAL INFORMATION</FONT></B>
</DIV>
</A>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="97%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=quadleft -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=quadright -->
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">INVESTMENT OBJECTIVE AND POLICIES
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="font-size: 10pt">3
    </FONT>
</TD>
<TD>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">INVESTMENT RESTRICTIONS
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="font-size: 10pt">8
    </FONT>
</TD>
<TD>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">MANAGEMENT
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="font-size: 10pt">11
    </FONT>
</TD>
<TD>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">INVESTMENT ADVISER AND
    <FONT style="white-space: nowrap">SUB-ADVISER</FONT>
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="font-size: 10pt">17
    </FONT>
</TD>
<TD>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">PORTFOLIO MANAGERS
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="font-size: 10pt">18
    </FONT>
</TD>
<TD>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">EXPENSES
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="font-size: 10pt">20
    </FONT>
</TD>
<TD>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">PORTFOLIO TRANSACTIONS AND
    BROKERAGE
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="font-size: 10pt">20
    </FONT>
</TD>
<TD>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">NET ASSET VALUE
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="font-size: 10pt">21
    </FONT>
</TD>
<TD>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">TAXATION
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="font-size: 10pt">23
    </FONT>
</TD>
<TD>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">INDEPENDENT ACCOUNTANTS
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="font-size: 10pt">26
    </FONT>
</TD>
<TD>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">PRINCIPAL SHAREHOLDERS
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="font-size: 10pt">26
    </FONT>
</TD>
<TD>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">FINANCIAL STATEMENTS
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="font-size: 10pt">F-1
    </FONT>
</TD>
<TD>
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    38
</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 89%; margin-left: 5%"><!-- BEGIN LOGICAL PAGE -->

<CENTER style="font-size: 1pt; width: 100%; border-bottom: 2pt solid #000000"></CENTER><!-- callerid=999 iwidth=480 length=0 -->

<CENTER style="font-size: 1pt; width: 100%; border-bottom: 1pt solid #000000"></CENTER><!-- callerid=999 iwidth=480 length=0 -->

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>



<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    No dealer, salesperson or any other person has been authorized
    to give any information or to make any representations other
    than those contained in this Prospectus in connection with the
    offer made by this Prospectus and, if given or made, such
    information or representations must not be relied upon as having
    been authorized by the Fund, the Investment Adviser or the
    <FONT style="white-space: nowrap">Sub-Adviser.</FONT>
    This Prospectus does not constitute an offer to sell or a
    solicitation of any offer to buy any security other than the
    Shares of Common Stock offered by this Prospectus, nor does it
    constitute an offer to sell or the solicitation of any offer to
    buy the Shares of Common Stock by anyone in any jurisdiction in
    which such offer or solicitation is not authorized, or in which
    the person making such offer or solicitation is not qualified to
    do so, or to any such person to whom it is unlawful to make such
    offer or solicitation. Neither the delivery of this Prospectus
    nor any sale made hereunder shall, under any circumstances,
    create any implication that information contained herein is
    correct as of any time subsequent to the date hereof. However,
    if any material change occurs while this Prospectus is required
    by law to be delivered, this Prospectus will be amended or
    supplemented accordingly.
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<CENTER style="font-size: 1pt; width: 17%; border-bottom: 1pt solid #000000"></CENTER><!-- callerid=999 iwidth=480 length=84 -->

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="95%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="4%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=quadleft -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=quadright -->
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#101'><FONT style="font-size: 10pt">Prospectus
    Summary</FONT></A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="font-size: 10pt">1
    </FONT>
</TD>
<TD>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#102'><FONT style="font-size: 10pt">Financial
    Highlights</FONT></A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="font-size: 10pt">9
    </FONT>
</TD>
<TD>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#103'><FONT style="font-size: 10pt">The Offer</FONT></A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="font-size: 10pt">10
    </FONT>
</TD>
<TD>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#104'><FONT style="font-size: 10pt">Use of
    Proceeds</FONT></A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="font-size: 10pt">16
    </FONT>
</TD>
<TD>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#105'><FONT style="font-size: 10pt">The Fund</FONT></A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="font-size: 10pt">17
    </FONT>
</TD>
<TD>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#106'><FONT style="font-size: 10pt">Market Price and
    Net Asset Value Information</FONT></A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="font-size: 10pt">18
    </FONT>
</TD>
<TD>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#107'><FONT style="font-size: 10pt">Investment
    Objective and Policies</FONT></A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="font-size: 10pt">19
    </FONT>
</TD>
<TD>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#108'><FONT style="font-size: 10pt">Risk Factors and
    Special Considerations</FONT></A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="font-size: 10pt">25
    </FONT>
</TD>
<TD>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#109'><FONT style="font-size: 10pt">Management of the
    Fund</FONT></A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="font-size: 10pt">27
    </FONT>
</TD>
<TD>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#110'><FONT style="font-size: 10pt">Distributions;
    Distribution Reinvestment and Cash Purchase Plan</FONT></A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="font-size: 10pt">31
    </FONT>
</TD>
<TD>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#111'><FONT style="font-size: 10pt">Description of
    Common Stock</FONT></A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="font-size: 10pt">33
    </FONT>
</TD>
<TD>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#112'><FONT style="font-size: 10pt">Taxation</FONT></A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="font-size: 10pt">35
    </FONT>
</TD>
<TD>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#113'><FONT style="font-size: 10pt">Custodian, Dividend
    Paying Agent, Transfer Agent and Registrar</FONT></A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="font-size: 10pt">36
    </FONT>
</TD>
<TD>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#114'><FONT style="font-size: 10pt">Experts</FONT></A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="font-size: 10pt">36
    </FONT>
</TD>
<TD>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#115'><FONT style="font-size: 10pt">Legal
    Matters</FONT></A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="font-size: 10pt">36
    </FONT>
</TD>
<TD>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#116'><FONT style="font-size: 10pt">Further
    Information</FONT></A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="font-size: 10pt">37
    </FONT>
</TD>
<TD>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#117'><FONT style="font-size: 10pt">Table of Contents
    of Statement of Additional Information</FONT></A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="font-size: 10pt">38
    </FONT>
</TD>
<TD>
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<CENTER style="font-size: 1pt; width: 100%; border-bottom: 1pt solid #000000"></CENTER><!-- callerid=999 iwidth=480 length=0 -->

<CENTER style="font-size: 1pt; width: 100%; border-bottom: 2pt solid #000000"></CENTER><!-- callerid=999 iwidth=480 length=0 -->

<CENTER style="font-size: 1pt; width: 100%; border-bottom: 2pt solid #000000"></CENTER><!-- callerid=999 iwidth=480 length=0 -->

<CENTER style="font-size: 1pt; width: 100%; border-bottom: 1pt solid #000000"></CENTER><!-- callerid=999 iwidth=480 length=0 -->

<DIV style="margin-top: 36pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><FONT style="font-size: 14pt">&#160;&#160;&#160;&#160;&#160;&#160;Shares
    of Common Stock</FONT></B>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><FONT style="font-size: 20pt">THE ZWEIG TOTAL</FONT></B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><FONT style="font-size: 20pt">RETURN FUND, INC.</FONT></B>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><FONT style="font-size: 14pt">Issuable Upon Exercise of<BR>
    Non-Transferable Rights to<BR>
    Subscribe for Such<BR>
    Shares of Common Stock</FONT></B>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><FONT style="font-size: 12pt">
    <FONT style="word-spacing: 100pt; white-space: nowrap; font-size: 1pt"><U>_
    _</U></FONT><!-- callerid=128 iwidth=480 length=68 --></FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B><FONT style="font-size: 12pt">PROSPECTUS</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<CENTER style="font-size: 1pt; width: 14%; border-bottom: 1pt solid #000000"></CENTER><!-- callerid=999 iwidth=480 length=68 -->

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    &#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;,
    2006
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<CENTER style="font-size: 1pt; width: 100%; border-bottom: 1pt solid #000000"></CENTER><!-- callerid=999 iwidth=480 length=0 -->

<CENTER style="font-size: 1pt; width: 100%; border-bottom: 2pt solid #000000"></CENTER><!-- callerid=999 iwidth=480 length=0 -->

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<P align="left" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>The information in the Statement of Additional Information is
    not complete and may be changed. These securities may not be
    sold until the registration statement filed with the Securities
    and Exchange Commission is effective. The Statement of
    Additional Information is not an offer to sell these securities
    and is not soliciting an offer to buy these securities in any
    state where the offer is not permitted.</B>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Subject
    to Completion,
    Dated&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;,
    2006</FONT></I></B>
</DIV>

<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">PART&#160;B</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">THE ZWEIG
    TOTAL RETURN FUND, INC.</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>900 Third Avenue, New York, N.Y. 10022</B>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<CENTER style="font-size: 1pt; width: 18%; border-bottom: 1pt solid #000000"></CENTER><!-- callerid=999 iwidth=455 length=84 -->

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">STATEMENT
    OF ADDITIONAL INFORMATION</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    This Statement of Additional Information (&#147;SAI&#148;) is
    not a Prospectus and should be read in conjunction with the
    Fund&#146;s Prospectus,
    dated&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;,
    2006 (the &#147;Prospectus&#148;). This SAI does not include all
    information that a shareholder should consider before purchasing
    shares of the Fund and investors should obtain and read the
    Prospectus prior to purchasing shares. A copy of the Prospectus
    may be obtained without charge by calling the Fund&#146;s
    Information
    Agent,&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;.
    Banks and Brokers should call
    (&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;collect
    and all other shareholders should call
    (&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;.
    You may also obtain a copy of the Prospectus on the Securities
    and Exchange Commission&#146;s website (http://www.sec.gov). The
    address of the Fund is 900 Third Avenue, New York, New York
    10022, and its telephone number is
    <FONT style="white-space: nowrap">(212)&#160;451-1100.</FONT>
    This SAI incorporates by reference the entire Prospectus.
    Defined terms used herein shall have the same meaning as
    provided in the Prospectus. The date of this SAI
    is&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;,
    2006.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<CENTER style="font-size: 1pt; width: 18%; border-bottom: 1pt solid #000000"></CENTER><!-- callerid=999 iwidth=455 length=84 -->

<P align="left" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">TABLE OF
    CONTENTS</FONT></B>
</DIV>
<DIV align="left">
<!-- TOC -->
</DIV>

<DIV align="left">
<A name="tocpage"></A>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="97%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=quadleft -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=quadright -->
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#201'><FONT style="font-size: 10pt">INVESTMENT
    OBJECTIVE AND POLICIES</FONT></A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="font-size: 10pt">3
    </FONT>
</TD>
<TD>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#202'><FONT style="font-size: 10pt">INVESTMENT
    RESTRICTIONS</FONT></A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="font-size: 10pt">8
    </FONT>
</TD>
<TD>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#203'><FONT style="font-size: 10pt">MANAGEMENT</FONT></A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="font-size: 10pt">11
    </FONT>
</TD>
<TD>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#204'><FONT style="font-size: 10pt">INVESTMENT ADVISER
    AND
    <FONT style="white-space: nowrap">SUB-ADVISER</FONT></FONT></A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="font-size: 10pt">17
    </FONT>
</TD>
<TD>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#205'><FONT style="font-size: 10pt">PORTFOLIO
    MANAGERS</FONT></A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="font-size: 10pt">18
    </FONT>
</TD>
<TD>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#206'><FONT style="font-size: 10pt">EXPENSES</FONT></A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="font-size: 10pt">20
    </FONT>
</TD>
<TD>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#207'><FONT style="font-size: 10pt">PORTFOLIO
    TRANSACTIONS AND BROKERAGE</FONT></A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="font-size: 10pt">20
    </FONT>
</TD>
<TD>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#208'><FONT style="font-size: 10pt">NET ASSET
    VALUE</FONT></A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="font-size: 10pt">21
    </FONT>
</TD>
<TD>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#209'><FONT style="font-size: 10pt">TAXATION</FONT></A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="font-size: 10pt">23
    </FONT>
</TD>
<TD>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#210'><FONT style="font-size: 10pt">INDEPENDENT
    ACCOUNTANTS</FONT></A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="font-size: 10pt">26
    </FONT>
</TD>
<TD>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#211'><FONT style="font-size: 10pt">PRINCIPAL
    SHAREHOLDERS</FONT></A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="font-size: 10pt">26
    </FONT>
</TD>
<TD>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#212'><FONT style="font-size: 10pt">FINANCIAL
    STATEMENTS</FONT></A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="font-size: 10pt">F-1
    </FONT>
</TD>
<TD>
</TD>
</TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="y28007exv99we.htm">EX-99.E: DISTRIBUTION REINVESTMENT AND CASH PURCHASE PLAN</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="y28007exv99wj.htm">EX-99.J: CUSTODIAN CONTRACT</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="y28007exv99wkw1.htm">EX-99.K.1: ADMINISTRATION AGREEMENT</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="y28007exv99wkw2.htm">EX-99.K.2: ASSIGNMENT OF ADMINISTRATION AGREEMENT</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="y28007exv99wkw3.htm">EX-99.K.3: LETTER AGREEMENT</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="y28007exv99wrw1.htm">EX-99.R.1: CODE OF ETHICS</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="y28007exv99wrw2.htm">EX-99.R.2: CODE OF ETHICS</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="y28007exv99wrw3.htm">EX-99.R.3: CODE OF ETHICS</A></FONT></TD></TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV align="left">
<!-- /TOC -->
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    2
</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->
<A name='201'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">INVESTMENT
    OBJECTIVE AND POLICIES</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Fund&#146;s investment objective is to seek the highest
    total return, consisting of capital appreciation and current
    income, consistent with the preservation of capital. The Fund
    will invest up to 65% of its total assets in
    U.S.&#160;government securities, non-convertible debt securities
    of domestic issuers rated among the two highest rating
    categories of either Moody&#146;s Investors Services, Inc.
    (&#147;Moody&#146;s&#148;) or Standard&#160;&#38; Poor&#146;s
    Corporation (&#147;S&#38;P&#148;) (or, if unrated, of comparable
    quality as determined by the Investment Adviser), and certain
    foreign government securities (collectively, the &#147;Bond
    Investments&#148;), and up to 50% of its total assets in equity
    securities. The Fund may, however, under certain circumstances,
    invest up to 75% of its total assets in equity securities, as
    determined by the Fund&#146;s Investment Adviser. The Fund also,
    as part of its Bond Investments, may invest up to 10% of its
    total assets in non-convertible debt securities rated below the
    two highest categories of Moody&#146;s or S&#38;P (or, if
    unrated, of comparable quality as determined by the Investment
    Adviser).
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Investment Adviser uses the Fund&#146;s
    <FONT style="white-space: nowrap">Sub-Adviser</FONT>
    to perform asset allocation research and analysis and provide
    advice thereon to the Investment Adviser and to actively
    collaborate in the stock selection process with the Investment
    Adviser&#146;s portfolio management team. The extent of the
    Fund&#146;s investment in debt and equity securities will be
    determined primarily on the basis of asset allocation techniques
    developed by Dr.&#160;Martin E. Zweig, President of the
    Fund&#146;s
    <FONT style="white-space: nowrap">Sub-Adviser,</FONT>
    and his staff. While the Investment Adviser seeks to reduce the
    risks associated with investing in debt and equity securities by
    using these techniques, such risks cannot be eliminated. There
    is no assurance that the Fund will achieve its investment
    objective. See &#147;Investment Objective and Policies&#148; in
    the Prospectus.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The following describes certain investment strategies in which
    the Investment Adviser may engage, on behalf of the Fund, each
    of which may involve certain special risks.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Futures
    Contracts and Related Options</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Fund may purchase or sell futures contracts for any purpose
    deemed appropriate. Upon entering into a futures contract, the
    Fund will initially be required to deposit with the custodian an
    amount of initial margin using cash or U.S.&#160;Treasury bills
    equal to approximately 2% to 5% of the contract amount. The
    nature of initial margin in futures transactions is different
    from that of margin in securities transactions in that the
    futures contract initial margin does not involve the borrowing
    of funds by customers to finance the transactions. Rather, the
    initial margin is in the nature of a performance bond or good
    faith deposit on the contract which is returned to the Fund upon
    termination of the futures contract, assuming all contractual
    obligations have been satisfied. In addition to initial margin,
    the Fund is required to deposit cash, liquid debt obligations,
    liquid equity securities or cash equivalents in an amount equal
    to the notional value of all long futures contracts, less the
    initial margin amount, in a segregated account with the
    custodian to ensure that the use of such futures contracts is
    not leveraged. If the value of the securities placed in the
    segregated account declines, additional securities, cash or cash
    equivalents must be placed in the segregated account so that the
    value of the account will at least equal the amount of the
    Fund&#146;s commitments with respect to such futures contracts.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Subsequent payments, called maintenance margin, to and from the
    broker, will be made on a daily basis as the price of the
    underlying security fluctuates, making the long and short
    positions in the futures contract more or less valuable, a
    process known as &#147;marking to the market.&#148; For example,
    when the Fund has purchased a futures contract and the price of
    the underlying security has risen, that position will have
    increased in value and the Fund will receive from the broker a
    maintenance margin payment equal to that increase in value.
    Conversely, when the Fund has purchased a futures contract and
    the price of the underlying security has declined, the position
    would be less valuable and the Fund would be required to make a
    maintenance margin payment to the broker. At any time prior to
    expiration of the futures contract, the Fund may elect to close
    the position by taking an opposite position which will operate
    to terminate the Fund&#146;s position in the futures contract. A
    final determination of maintenance margin is then made,
    additional cash is required to be paid by or released to the
    Fund, and the Fund realizes a loss or a gain.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    3
</DIV><!-- END LOGICAL PAGE -->
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    While futures contracts based on securities provide for the
    delivery and acceptance of securities, such deliveries and
    acceptances are very seldom made. Generally, the futures
    contract is terminated by entering into an offsetting
    transaction. An offsetting transaction for a futures contract
    sale is effected by the Fund entering into a futures contract
    purchase for the same aggregate amount of the specific type of
    financial instrument with the same delivery date. If the price
    in the sale exceeds the price in the offsetting purchase, the
    Fund immediately is paid the difference and thus realizes a
    gain. If the offsetting purchase price exceeds the sales price,
    the Fund pays the difference and realizes a loss. Similarly, the
    closing out of a futures contract purchase is effected by the
    Fund entering into a futures contract sale. If the offsetting
    sale price exceeds the purchase price, the Fund realizes a gain,
    and if the purchase price exceeds the offsetting price, the Fund
    realizes a loss.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    There are several risks in trading futures contracts. Market
    prices of futures contracts may be affected by certain factors.
    First, all participants in the futures market are subject to
    initial margin and maintenance margin requirements. Rather than
    meeting maintenance margin requirements, investors may close
    futures contracts through offsetting transactions which could
    distort the normal relationship between the securities and
    futures markets. Second, from the point of view of speculators,
    the margin requirements in the futures market are less onerous
    than margin requirements in the securities market. Therefore,
    increased participation by speculators in the futures market may
    also cause temporary price distortions.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In addition, the hours of trading for futures contracts may not
    conform to the hours during which the underlying securities are
    traded. To the extent that the futures contracts markets close
    after the markets for the underlying securities, significant
    price movements can take place in the futures contracts markets
    that cannot be reflected in the markets of the underlying
    securities.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Positions in futures contracts may be closed out only on an
    exchange or board of trade which provides a secondary market for
    such futures. Although the Fund intends to purchase or sell
    futures only on exchanges or boards of trade where there appears
    to be an active secondary market, there is no assurance that a
    liquid secondary market on an exchange or board of trade will
    exist for any particular contact or at any particular time. In
    such event, it may not be possible to close a futures position
    and, in the event of adverse price movements, the Fund would
    continue to be required to make daily cash payments of
    maintenance margin.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    There are risks in trading futures contracts, even if such
    contracts are used for risk management purposes. One such risk
    arises due to the imperfect correlation between movements in the
    price of the futures contracts and movements in the price of the
    underlying securities. The price of the futures contract may
    move more than or less than the price of the securities.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If the price of the futures contracts moves less than the price
    of the underlying securities, the transaction will not be fully
    effective, but, if the price of the securities has moved in an
    unfavorable direction, the Fund would be in a better position
    than if it had not entered into a futures transaction at all. If
    the price of the securities has moved in a favorable direction,
    this advantage will be partially offset by the movement in the
    price of the futures contract. If the price of the futures
    contract moves more than the price of the security, the Fund
    will experience either a loss or gain on the futures contract
    which will not be completely offset by movements in the prices
    of the underlying securities.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    To compensate for the imperfect correlation of such movements in
    price, the Fund may buy or sell futures contracts in a greater
    dollar amount than the dollar amount of the underlying
    securities if the historical volatility of the prices of such
    securities have been greater than the historical volatility of
    the futures contracts. Conversely, the Fund may buy or sell
    fewer futures contracts if the historical volatility of the
    prices of the underlying securities is less than the historical
    volatility of the futures contracts.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    It is also possible that, where the Fund has sold futures to
    protect its portfolio against a decline in the market, the
    market may advance and the value of securities held in the
    Fund&#146;s portfolio may decline. If this occurred, the Fund
    would lose money on the futures contracts and also experience a
    decline in value in its portfolio securities. However, while
    this could occur for a very brief period or to a very small
    degree, over time the value of a diversified portfolio will tend
    to move in the same direction as the futures contracts.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Where futures are purchased to protect against a possible
    increase in the cost of securities before the Fund is able to
    invest its cash (or cash equivalents) in an orderly fashion, it
    is possible that the market may
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    4
</DIV><!-- END LOGICAL PAGE -->
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    decline instead; if the Fund then concludes not to invest in the
    relevant securities at that time because of concern as to
    possible further market decline or for other reasons, the Fund
    will realize a loss on the futures contract that is not offset
    by a reduction in the price of securities purchased.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Due to the possibility of price distortion in the futures market
    and because of the imperfect correlation between movements in
    securities and movements in the prices of futures contracts, a
    correct forecast of market trends by the Investment Adviser may
    still not result in a successful risk management transaction
    over a very short period of time.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Security
    and Stock Index Options</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    When the Fund writes an option, an amount equal to the premium
    received by the Fund is recorded as an asset and as an
    offsetting liability. The amount of the liability is
    <FONT style="white-space: nowrap">&#147;marked-to-market&#148;</FONT>
    daily to reflect the current market value of the option, which
    is the last sale price on the principal exchange on which such
    option is traded or, in the absence of a sale, the mean between
    the latest bid and offering prices. If an option written by the
    Fund expires, or the Fund enters into a closing purchase
    transaction, the Fund will realize a gain (or, in the latter
    case, a loss, if the cost of a closing transaction exceeds the
    premium received) and the liability related to such option will
    be extinguished.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The premium paid by the Fund for the purchase of a put option
    (its cost) is recorded initially as an investment, the value of
    which is subsequently adjusted to the current market value of
    the option. If the current market value of a put option exceeds
    its premium, the excess represents unrealized appreciation;
    conversely, if the premium exceeds the current market value, the
    excess represents unrealized depreciation. The current market
    value of an option purchased by the Fund equals the
    option&#146;s last sale price on the principal exchange on which
    it is traded or, in the absence of a sale, the mean between the
    latest bid and offering prices.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    An option position may be closed out only on an exchange which
    provides a secondary market for an option of the same series.
    Although the Fund generally will purchase or write only those
    options for which there appears to be an active secondary
    market, there is no assurance that a liquid secondary market on
    an exchange will exist for any particular option, or at any
    particular time, and for some options no secondary market on an
    exchange may exist. In such event, it might not be possible to
    effect closing transactions in particular options, with the
    result that the Fund would have to exercise its options in order
    to realize any profit and would incur transaction costs on the
    sale of underlying securities pursuant to the exercise of put
    options. If the Fund, as a covered call option writer, is unable
    to effect a closing purchase transaction in a secondary market,
    it will not be able to sell the underlying security until the
    option expires or it delivers the underlying security upon
    exercise.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Reasons for the absence of a liquid secondary market on an
    exchange include the following: (a)&#160;there may be
    insufficient interest in trading certain options;
    (b)&#160;restrictions may be imposed by an exchange on opening
    transactions or closing transactions or both; (c)&#160;trading
    halts, suspensions or other restrictions may be imposed with
    respect to particular classes or series of options or underlying
    securities; (d)&#160;unusual or unforeseen circumstances may
    interrupt normal operations on an exchange; (e)&#160;the
    facilities of an exchange or the Options Clearing Corporation
    (the &#147;OCC&#148;) may not at all times be adequate to handle
    current trading volume; or (f)&#160;one or more exchanges might,
    for economic or other reasons, decide or be compelled at some
    future date to discontinue the trading of options (or a
    particular class or series of options), in which event the
    secondary market on that exchange (or in that class or series of
    options) would cease to exist, although outstanding options on
    that exchange that had been issued by the OCC as a result of
    trades on that exchange would continue to be exercisable in
    accordance with their terms.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In addition, there is no assurance that
    <FONT style="white-space: nowrap">higher-than-anticipated</FONT>
    trading activity or other unforeseen events might not, at times,
    render certain of the facilities of the OCC inadequate, and
    thereby result in the institution by an exchange of special
    procedures which may interfere with the timely execution of
    customers&#146; orders.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The amount of the premiums which the Fund may pay or receive may
    be adversely affected as new or existing institutions, including
    other investment companies, engage in or increase their option
    purchasing and writing activities.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    5
</DIV><!-- END LOGICAL PAGE -->
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In the event of a shortage of the underlying securities
    deliverable on exercise of a listed option, the OCC has the
    authority to permit other, generally comparable securities to be
    delivered in fulfillment of option exercise obligations. If the
    OCC exercises its discretionary authority to allow such other
    securities to be delivered, it may also adjust the exercise
    prices of the affected options by setting different prices at
    which otherwise ineligible securities may be delivered. As an
    alternative to permitting such substitute deliveries, the OCC
    may impose special exercise settlement procedures.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Exchange
    Traded Funds</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Fund may invest in passively managed registered open-end
    investment companies or other baskets of securities, such as
    unit investment trusts, which trade on a national securities
    exchange or NASDAQ and are commonly called exchange-traded funds
    (&#147;ETFs&#148;). These investments represent shares of
    ownership in ETFs that hold portfolios of securities which are
    designed to generally correspond to and closely track the price
    and yield performance of an index of securities. Accordingly,
    ETFs have risks similar to those of stocks and are subject to
    market volatility. Investment returns may fluctuate so that
    invested shares, when redeemed or sold, may be worth more or
    less than their original cost. ETFs may include, among others,
    the Nasdaq-100 Index Tracking Stock (QQQ), Standard&#160;&#38;
    Poor&#146;s Depositary Receipts (SPDRS), the DIAMONDS Trust, and
    other ETF&#146;s as determined from time to time by the
    Investment Adviser.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Foreign
    Securities</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Fund may invest up to up to 10% of its total assets in
    securities of foreign issuers and 10% of its total assets in
    obligations issued or guaranteed by one or more foreign
    governments or any of their political subdivisions, agencies or
    instrumentalities (&#147;Foreign Government Securities&#148;).
    Investments in foreign securities offer potential benefits not
    available through investment solely in securities of domestic
    issuers. Foreign securities offer the opportunity to invest in
    foreign issuers that appear to have growth potential, or in
    foreign countries with economic policies or business cycles
    different from those of the United States, or to reduce
    fluctuations in portfolio value by taking advantage of foreign
    markets that do not move in a manner parallel to United States
    markets. The Fund may also enter into foreign currency
    transactions in connection with its investment activity in
    foreign securities.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Investments in foreign securities present special additional
    risks and considerations not typically associated with
    investments in domestic securities. Foreign investments may be
    affected by changes in foreign currency rates and exchange
    control regulations. There may be less information available
    about a foreign company than a domestic company, and foreign
    companies may not be subject to accounting, auditing and
    reporting standards and requirements comparable to those
    applicable to domestic companies. Foreign securities may be less
    liquid and subject to greater price volatility than domestic
    securities. Foreign brokerage commissions and custodial fees are
    generally higher than those in the United States. The foreign
    markets also have different clearance and settlement procedures
    and in certain markets there have been times when settlements
    have been unable to keep pace with the volume of securities
    transactions, making it difficult to conduct such transactions.
    Delays or problems with settlements might affect the liquidity
    of the Fund&#146;s portfolio and might adversely affect the
    Fund&#146;s performance. Foreign investments may also be subject
    to local economic or political risks, political instability and
    possible nationalization of issuers or expropriation of their
    assets which might adversely affect the Fund&#146;s ability to
    realize or liquidate its investment in such securities.
    Furthermore, some foreign securities are subject to brokerage
    taxes levied by foreign governments, which have the effect of
    increasing the cost of such investment and reducing the realized
    gain or increasing the realized loss on such securities at the
    time of sale. Furthermore, legal remedies for defaults and
    disputes may have to be pursued in foreign courts whose
    procedures differ substantially from those of the
    U.S.&#160;courts. In the event of a default in payment on
    foreign securities, the Fund may incur increased costs to obtain
    <FONT style="white-space: nowrap">and/or</FONT> to
    enforce a judgment against the foreign issuer (or the other
    parties to the transaction) in the United States or abroad, and
    no assurance can be given that the Fund will be able to collect
    on any such judgment.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Income earned or received by the Fund from sources within
    foreign countries may be reduced by withholding and other taxes
    imposed by such countries. Tax conventions between certain
    countries and the
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    6
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    United States, however, may reduce or eliminate such taxes. Any
    such taxes paid by the Fund will reduce its net income available
    for distribution to shareholders.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Pursuant to the provisions of
    <FONT style="white-space: nowrap">Rule&#160;17f-5</FONT>
    under the Investment Company Act of 1940, as amended (the
    &#147;1940 Act&#148;), the Fund&#146;s Board of Directors has
    delegated to the Fund&#146;s Custodian, State Street Bank and
    Trust Company, as the Fund&#146;s Foreign Custody Manager the
    responsibilities for selecting and monitoring any foreign
    custodians that may be used in connection with the Fund&#146;s
    investments in foreign securities. Pursuant to and subject to
    the terms and conditions of the Custodian Contract between State
    Street Bank and Trust Company and the Fund, State Street Bank
    and Trust Company will, among other things, (i)&#160;determine
    that the assets held by foreign custodians are subject to
    reasonable care, based on the standards applicable to custodians
    in the relevant market in which such foreign custodian operates,
    (ii)&#160;determine that the foreign custodial arrangements are
    governed by a written contract that provides reasonable care for
    the Fund&#146;s assets based on such standards,
    (iii)&#160;establish a system to monitor the appropriateness of
    maintaining the Fund&#146;s assets with a particular foreign
    custodian and any material changes in such contract, and
    (iv)&#160;report to the Fund&#146;s Board of Directors with
    respect to the Fund&#146;s foreign custodial arrangements.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Closed-End
    Investment Companies</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    When the Fund invests in other closed-end investment companies,
    the investments made by such other investment companies will be
    effected by independent investment managers, and the Fund will
    have no control over the investment management, custodial
    arrangements or operations of any investments made by such
    investment managers. Some of the funds in which the Fund may
    invest could also incur more risks than would be the case for
    direct investments made by the Fund. For example, they may
    engage in investment practices that entail greater risks or
    invest in companies whose securities and other investments are
    more volatile. In addition, the funds in which the Fund invests
    may or may not have the same fundamental investment limitations
    as those of the Fund itself. While a potential benefit of
    investing in closed-end investment companies would be to realize
    value from a decrease in the discount from net asset value at
    which some closed-end funds trade, there is also the potential
    that such discount could grow, rather than decrease.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    By investing in investment companies indirectly through the
    Fund, a shareholder of the Fund will bear not only a
    proportionate share of the expenses of the Fund (including
    operating costs and investment advisory and administrative fees)
    but also, indirectly, similar expenses of the investment
    companies in which the Fund invests. The Fund will not
    (i)&#160;own more than 3% of the voting securities of any one
    investment company; (ii)&#160;invest more than 5% of its assets
    in the securities of any one investment company; or
    (iii)&#160;invest more than 10% of its assets in securities
    issued by other investment companies.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Short
    Sales</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Fund may from time to time make short sales of securities. A
    short sale is a transaction in which the Fund sells a security
    it does not own in anticipation of a decline in market price.
    The Fund may make short sales to offset a potential decline in a
    long position or a group of long positions, or if the Investment
    Adviser believes that a decline in the price of a particular
    security or group of securities is likely. The Fund may also
    make short sales in an attempt to maintain portfolio flexibility
    and facilitate the rapid implementation of investment strategies
    if the Investment Adviser believes that the price of a
    particular security or group of securities is likely to decline.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    When the Fund determines to make a short sale of a security, it
    must borrow the security. The Fund&#146;s obligation to replace
    the security borrowed in connection with the short sale will be
    fully secured by the proceeds from the short sale retained by
    the broker and by cash or liquid securities deposited in a
    segregated account with the Fund&#146;s custodian. The Fund may
    have to pay a premium to borrow the security. The Fund must also
    pay any dividends or interest payable on the security until the
    Fund replaces the security.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If the price of the security sold short increases between the
    time of the short sale and the time the Fund replaces the
    borrowed security, the Fund will incur a loss, and if the price
    declines during this period, the Fund will realize a capital
    gain. Any realized capital gain will be decreased, and any
    incurred loss increased,
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    7
</DIV><!-- END LOGICAL PAGE -->
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    by the amount of transaction costs and any premium, dividend or
    interest which the Fund may have to pay in connection with such
    short sale.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In addition to the short sales described above, the Fund may
    make short sales &#147;against the box.&#148; A short sale
    &#147;against the box&#148; is a short sale where, at the time
    of the short sale, the Fund owns or has the immediate and
    unconditional right, at no added cost, to obtain the identical
    security. The Fund would enter into such a transaction to defer
    a gain or loss for Federal income tax purposes on the security
    owned by the Fund. Short sales against the box are not subject
    to the collateral requirements described above or the percentage
    limitations on short sales described below.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Fund may make a short sale only if, at the time the short
    sale is made and after giving effect thereto, the market value
    of all securities sold short is 25% or less of the value of its
    net assets and the market value of securities sold short which
    are not listed on a national securities exchange does not exceed
    10% of the Fund&#146;s net assets.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">When-Issued
    and Delayed-Delivery Securities</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Fund may from time to time purchase securities on a
    &#147;when-issued&#148; or &#147;delayed-delivery&#148; basis
    whereby the Fund purchases a bond or stock with delivery of the
    security and payment deferred to a future date. The money to
    purchase such securities will be invested in other securities
    until the Fund receives delivery. This could increase the
    possibility that the Fund&#146;s net asset value would increase
    or decrease faster than would otherwise be the case. Securities
    purchased on a when-issued or delayed-delivery basis may expose
    the Fund to risk, since such securities may experience
    fluctuations in value (based upon, in the case of bonds, the
    public&#146;s perception of the creditworthiness of the issuer
    and changes, real or anticipated, in the level of interest
    rates) prior to their time of delivery. In addition, the yield
    available in the market when the delivery takes place actually
    may be higher than that obtained in the transaction itself.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    At the time the Fund makes the commitment to purchase a security
    on a when-issued or delayed-delivery basis, it will record the
    transaction and reflect the value of the security less the
    liability to pay the purchase price in determining the
    fund&#146;s net asset value. The value of the security on the
    settlement date may be more or less than the price paid. No
    interest accrues on the security between the time the Fund
    enters into the commitment and the time the security is
    delivered. The Fund will establish a segregated account with the
    Custodian in which it will maintain cash and short-term high
    quality debt securities equal in value to commitments for
    when-issued or delayed-delivery securities. Such segregated
    securities will be
    <FONT style="white-space: nowrap">&#147;marked-to-market&#148;</FONT>
    daily. While when-issued or delayed-delivery securities may be
    sold prior to the settlement date, it is intended that the Fund
    will purchase such securities with the purpose of actually
    acquiring them unless a sale appears desirable for investment
    reasons. The Fund is dependent on the other party to
    successfully complete when-issued and delayed delivery
    transactions. If such other party fails to complete its portion
    of the transaction, the Fund may have lost a favorable
    investment opportunity. There is no limitation on the percentage
    of the Fund&#146;s assets that may be invested in when-issued or
    delayed-delivery securities.
</DIV>
<A name='202'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">INVESTMENT
    RESTRICTIONS</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Fund has adopted the following fundamental policies which
    cannot be changed without the approval of the holders of a
    majority of its outstanding voting securities (as defined under
    &#147;Investment Objective and Policies&#148; in the
    Prospectus). Except as otherwise noted, all percentage
    limitations set forth below apply immediately after a purchase
    or initial investment, and any subsequent change in any
    applicable percentage resulting from market fluctuations does
    not require elimination of any security or other investment from
    the portfolio. The Fund may not:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    1.&#160;With respect to 75% of its total assets, invest in
    securities of any one issuer if immediately after and as a
    result of such investment more than 5% of the total assets of
    the Fund, taken at market value, would be invested in the
    securities of such issuer. This investment restriction does not
    apply to investments in U.S.&#160;Government Securities.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    8
</DIV><!-- END LOGICAL PAGE -->
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    2.&#160;Purchase more than 10% of the outstanding voting
    securities, or any class of securities, of any one issuer. This
    investment restriction does not apply to investments in
    U.S.&#160;Government Securities.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    3.&#160;Purchase securities which would cause 25% or more of its
    total assets at the time of such purchase to be concentrated in
    the securities of issuers engaged in any one particular industry
    or group of related industries. This investment restriction does
    not apply to investments in U.S.&#160;Government Securities.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    4.&#160;Purchase or sell real estate; provided that the Fund may
    invest in securities secured by real estate or real estate
    interests or issued by companies which invest in real estate or
    real estate interests.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    5.&#160;Purchase any securities on margin. For purposes of this
    investment restriction, the following do not constitute margin
    purchases: (i)&#160;effecting short sales, to the extent
    permitted by 9. below, (ii)&#160;making margin deposits in
    connection with any futures contracts or any options the Fund
    may purchase, sell or write, or (iii)&#160;entering into any
    currency transactions.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    6.&#160;Lend any funds or other assets, except that the Fund may
    purchase publicly distributed debt obligations (including
    repurchase agreements) consistent with its investment objective
    and policies, and the Fund may make loans of portfolio
    securities if such loans do not cause the aggregate amount of
    all outstanding securities loans to exceed
    33<FONT style="vertical-align: top; font-size: 70&#37;">1</FONT>/<FONT style="font-size: 70&#37;">3</FONT>%
    of the Fund&#146;s total assets, provided that the loan is
    collateralized by cash or cash equivalents or
    U.S.&#160;Government Securities in an amount equal, on a daily
    basis, to the market value of the securities loaned.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    7.&#160;Borrow money (through reverse repurchase agreements or
    otherwise), except (i)&#160;for temporary emergency purposes in
    amounts not in excess of 5% of the value of the Fund&#146;s
    total assets at the time the loan is made; or (ii)&#160;in an
    amount not greater than
    33<FONT style="vertical-align: top; font-size: 70&#37;">1</FONT>/<FONT style="font-size: 70&#37;">3</FONT>%
    of the Fund&#146;s total assets.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    8.&#160;Issue senior securities, as defined in the 1940 Act, or
    mortgage, pledge, hypothecate or in any manner transfer, as
    security for indebtedness, any securities owned or held by the
    Fund except as may be necessary in connection with borrowings
    mentioned in 7, above. For the purposes of this investment
    restriction and 7, above, collateral or escrow arrangements with
    respect to the making of short sales, writing of stock options,
    purchase of securities on a forward commitment or
    delayed-delivery basis, and purchase of foreign currency forward
    contracts and collateral arrangements with respect to margin for
    futures contracts and foreign currency forward contracts or
    related options are not deemed to be a pledge of assets and
    neither such arrangements nor the purchase or sale of futures
    contracts, foreign currency forward contracts or related options
    are deemed to be the issuance of a senior security.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    9.&#160;Make any short sales of securities, unless at the time
    the short sale is made and after giving effect thereto,
    (i)&#160;the market value of all securities sold short is 25% or
    less of the value of the Fund&#146;s total assets, (ii)&#160;the
    market value of such securities sold short which are not listed
    on a national securities exchange does not exceed 10% of the
    Fund&#146;s total assets, (iii)&#160;the market value of all
    securities of any one issuer sold short does not exceed 2% of
    the Fund&#146;s total assets, (iv)&#160;short sales are not made
    of more than 2% of the outstanding securities of one class of
    any issuer, and (v)&#160;the Fund maintains collateral deposits
    consisting of cash or U.S.&#160;Government Securities in a
    segregated account which, together with collateral deposited
    with the broker-dealer, are at all times equal to 100% of the
    current market value of the securities sold short. This
    investment restriction does not apply to short sales
    &#147;against the box.&#148; For the purposes of this investment
    restriction, sales of securities on a when-issued or
    delayed-delivery basis are not considered to be short sales.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    10.&#160;Underwrite securities of other issuers except insofar
    as it might be deemed to be an underwriter for purposes of the
    Securities Act of 1933, as amended, in the resale of any
    securities held in its own portfolio.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    11.&#160;Invest more than 10% of the Fund&#146;s total assets in
    securities that at the time of purchase are subject to
    restrictions on disposition under the Securities Act of 1933, as
    amended.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    9
</DIV><!-- END LOGICAL PAGE -->
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    12.&#160;Purchase or sell commodities or commodity or futures
    contracts or options on commodity or futures contracts except in
    compliance with such rules and interpretations of the Commodity
    Futures Trading Commission which exempt the Fund from regulation
    as a commodity pool operator.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    10
</DIV><!-- END LOGICAL PAGE -->
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->
<A name='203'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">MANAGEMENT</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Directors
    and Officers</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The names and addresses of the Directors and Officers of the
    Fund are set forth below, together with their positions and
    their principal occupations during the past five years and, in
    the case of the Directors, their positions with certain other
    organizations and companies.
</DIV>

<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <U><FONT style="font-family: 'Times New Roman', Times">DISINTERESTED
    DIRECTORS</FONT></U>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="29%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="18%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="7%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="36%">&nbsp;</TD>	<!-- colindex=04 type=maindata -->
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Number of<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Portfolios in<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Fund<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
    <B>Name (Age) Address<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Term of Office and<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Complex<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Principal Occupation(s)<BR>
    </B>
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
    <B>and Position(s)<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Length of Time<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Overseen by<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>During Past 5&#160;Years and Other<BR>
    </B>
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>with Fund</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Served</B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Director</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Directorships Held</B>
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
    <FONT style="font-size: 10pt">Charles H. Brunie<BR>
    Brunie Associates<BR>
    600 Third Avenue,<BR>
    17th&#160;Floor<BR>
    New York, NY 10016<BR>
    DOB: 7/17/30<BR>
    Director
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    <FONT style="font-size: 10pt">Term: Until 2009.<BR>
    Served since: 1988.
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    2
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    <FONT style="font-size: 10pt">Director, The Zweig Fund, Inc.
    (since 1998);  Chairman, Brunie Associates (investments) (since
    April 2001); Oppenheimer Capital (1969-2000); Chairman
    (1980-1990), Chairman Emeritus (1990-2000). Chairman Emeritus,
    Board of Trustees, Manhattan Institute (since 1990); Trustee,
    Milton and Rose D. Friedman Foundation for Vouchers (since
    1999); Trustee, Hudson Institute (since 2002); Trustee, American
    Spectator (since 2002); Chartered Financial Analyst (since 1969).
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
    <FONT style="font-size: 10pt">Wendy Luscombe<BR>
    480 Churchtown Rd.<BR>
    Craryville, NY 12521<BR>
    DOB: 10/29/51<BR>
    Director
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    <FONT style="font-size: 10pt">Term: Until 2008.<BR>
    Served since: 2002.
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    2
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    <FONT style="font-size: 10pt">Director of The Zweig Fund, Inc.
    (since 2002); Co-lead Independent Director of the Zweig Total
    Return Fund, Inc. and of The Zweig Fund, Inc. (since 2006);
    Principal, WKL Associates, Inc. (Real Estate Investment
    Consultant) (since 1994); Fellow, Royal Institution of Chartered
    Surveyors; Member, Chartered Institute of Arbitrators; Director,
    Endeavour Real Estate Securities, Ltd. REIT Mutual Fund
    (2000-2006); Director, PXRE, Corp. (reinsurance) (since 1994);
    Member and Chairman of Management Oversight Committee, Deutsche
    Bank Real Estate Opportunities Fund (since 2003); Trustee Acadia
    Realty Trust (since 2004).
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
    <FONT style="font-size: 10pt">Alden C. Olson<BR>
    2711 Ramparte Path<BR>
    Holt, MI 48842<BR>
    DOB: 5/10/28<BR>
    Director
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    <FONT style="font-size: 10pt">Term: Until 2007.<BR>
    Served since: 1996.
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    2
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    <FONT style="font-size: 10pt">Director of The Zweig Fund, Inc.
    (since 1996);  Currently retired; Chartered Financial Analyst
    (since 1964); Professor of Financial Management, Investments at
    Michigan State University (1959 to 1990).
    </FONT>
</TD>
</TR>
</TABLE>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    11
</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="29%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="18%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="7%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="36%">&nbsp;</TD>	<!-- colindex=04 type=maindata -->
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Number of<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Portfolios in<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Fund<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
    <B>Name (Age) Address<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Term of Office and<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Complex<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Principal Occupation(s)<BR>
    </B>
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
    <B>and Position(s)<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Length of Time<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Overseen by<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>During Past 5&#160;Years and Other<BR>
    </B>
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>with Fund</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Served</B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Director</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Directorships Held</B>
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">James B. Rogers,&#160;Jr.<BR>
    352 Riverside Dr.<BR>
    New York, NY 10025<BR>
    DOB: 10/19/42<BR>
    Director
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    <FONT style="font-size: 10pt">Term: Until 2009.<BR>
    Served since: 1988.
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    2
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    <FONT style="font-size: 10pt">Director of The Zweig Fund, Inc.
    (since 1986); Private investor (since 1980); Chairman, Beeland
    Interests (Media and Investments) (since 1980);  Regular
    Commentator on Fox News (since 2002); Author of
    &#145;&#145;Investment Biker: On the Road with Jim Rogers&#148;
    (1994),&#145;&#145;Adventure Capitalist&#148; (2003) and
    &#145;&#145;Hot Commodities&#148; (2004); Director, Emerging
    Markets Brewery Fund (1993-2002); Director, Levco Series Trust
    (since 1996).
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">R. Keith Walton<BR>
    15 Claremont Avenue<BR>
    New York, NY 10027<BR>
    DOB: 9/28/64
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    <FONT style="font-size: 10pt">Term: Until 2008.<BR>
    Served since: 2004.
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    2
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    <FONT style="font-size: 10pt">Director of The Zweig Fund, Inc.
    (since 2004); Co-lead Independent Director of the Zweig Total
    Return Fund, Inc. and of The Zweig Fund, Inc. (since 2006);
    Director, Blue Crest Capital Management Funds (since 2006);
    Executive Vice President and the Secretary (since 1996) of the
    University at Columbia University; Director (since 2002),
    Member, Executive Committee (since 2002), Chair, Audit Committee
    (since 2003), Apollo Theater Foundation, Inc.; Director,
    Orchestra of St. Luke&#146;s (since 2000); Vice President and
    Trustee, The Trinity Episcopal School Corporation (since 2003);
    Member (since 1997), Nominating and  Governance Committee Board
    of Directors (since 2004), Council on Foreign Relations.
    </FONT>
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    12
</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <U><FONT style="font-family: 'Times New Roman', Times">INTERESTED
    DIRECTOR</FONT></U>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="28%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="21%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="7%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="34%">&nbsp;</TD>	<!-- colindex=04 type=maindata -->
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Number of<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Portfolios in<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Fund<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
    <B>Name (Age) Address<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Term of Office and<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Complex<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Principal Occupation(s)<BR>
    </B>
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
    <B>and Position(s)<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Length of Time<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Overseen by<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>During Past 5&#160;Years and Other<BR>
    </B>
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>with Fund</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Served</B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Director</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Directorships Held</B>
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
    <FONT style="font-size: 10pt">George R. Aylward<BR>
    56 Prospect Street<BR>
    Hartford, CT 06115<BR>
    DOB: 8/17/64<BR>
    Director, Chairman of the Board and President
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    <FONT style="font-size: 10pt">Term: Until 2007.<BR>
    Served since: 2006.
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    2
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    <FONT style="font-size: 10pt">Director, The Zweig Fund, Inc.
    (since 2006); Senior Vice President and Chief Operating Officer,
    Asset Management, The Phoenix Companies, Inc. (2004-present);
    President (since November 2006) and Chief Operating Officer
    (2004-present), Phoenix Investment Partners, Ltd.; President,
    certain funds within the Phoenix Funds Family (since November
    2006); Previously, Executive Vice President, Phoenix Investment
    Partners, Ltd. (2004-November 2006); Vice President, Phoenix
    Life Insurance Company (2002-2004); Vice President, The Phoenix
    Companies, Inc. (2001-2004); Vice President, Finance, Phoenix
    Investment Partners, Ltd. (2001-2002); Assistant Controller,
    Phoenix Investment Partners, Ltd. (1996-2001); Executive Vice
    President, certain funds within the Phoenix Funds Family
    (2004-November 2006).
    </FONT>
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <U><FONT style="font-family: 'Times New Roman', Times">OFFICERS
    WHO ARE NOT DIRECTORS</FONT></U>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="23%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="31%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="41%">&nbsp;</TD>	<!-- colindex=03 type=maindata -->
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Position with the<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
    <B>Name, Address and<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Fund and Length<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Principal Occupation(s) During Past 5 Years and<BR>
    </B>
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Date of Birth</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>of Time Served</B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Other Directorships Held</B>
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
    <FONT style="font-size: 10pt">Carlton Neel<BR>
    900 Third Avenue<BR>
    New York, NY 10022<BR>
    DOB: 12/19/67
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    <FONT style="font-size: 10pt">Executive Vice President<BR>
    since: 2003.<BR>
    Expires: Immediately following the 2007 Annual Meeting of
    Shareholders.
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    <FONT style="font-size: 10pt">Executive Vice President of The
    Zweig Fund, Inc. (since 2003); Senior Vice President and
    Portfolio Manager, Phoenix/Zweig Advisers LLC (since 2003);
    Managing Director and Co-Founder, Shelter Rock Capital Partners,
    LP (2002-2003); Senior Vice President and Portfolio Manager,
    Phoenix/Zweig Advisers LLC (1995-2002); Vice President, JP
    Morgan&#160;&#38; Co. (1990-1995).
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
    <FONT style="font-size: 10pt">David Dickerson<BR>
    900 Third Avenue<BR>
    New York, NY 10022<BR>
    DOB: 12/27/67
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    <FONT style="font-size: 10pt">Senior Vice President since:
    2003.<BR>
    Expires: Immediately following the 2007 Annual Meeting of
    Shareholders.
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    <FONT style="font-size: 10pt">Senior Vice President of The Zweig
    Fund, Inc. (since 2003); Senior Vice President and Portfolio
    Manager, Phoenix/Zweig Advisers LLC (since 2003); Managing
    Director and Co-Founder, Shelter Rock Capital Partners, LP
    (2002-2003); Vice President and Portfolio Manager, Phoenix/Zweig
    Advisers LLC (1993-2002).
    </FONT>
</TD>
</TR>
</TABLE>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    13
</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="23%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="31%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="41%">&nbsp;</TD>	<!-- colindex=03 type=maindata -->
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Position with the<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
    <B>Name, Address and<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Fund and Length<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Principal Occupation(s) During Past 5 Years and<BR>
    </B>
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Date of Birth</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>of Time Served</B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Other Directorships Held</B>
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Marc Baltuch<BR>
    900 Third Avenue<BR>
    New York, NY 10022<BR>
    DOB: 9/23/45
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    <FONT style="font-size: 10pt">Vice President and Chief
    Compliance Officer since: 2004.<BR>
    Expires: Immediately following the 2007 Annual Meeting of
    Shareholders.
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    <FONT style="font-size: 10pt">Vice President and Chief
    Compliance Officer of The Zweig Fund, Inc. (since 2004); Chief
    Compliance Officer of Phoenix/Zweig Advisers LLC (since 2004);
    President and Director of Watermark Securities, Inc. (since
    1991); Secretary of Phoenix-Zweig Trust (1989-2003); Secretary
    of Phoenix-Euclid Market Neutral Fund (1998-2002); Assistant
    Secretary of Gotham Advisors, Inc. (1990-2005); Chief Compliance
    Officer of the Zweig Companies (since 1989) and of the Phoenix
    Funds Complex (since 2004).
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Kevin J. Carr<BR>
    One American Row<BR>
    Hartford, CT 06102<BR>
    DOB: 8/30/54
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    <FONT style="font-size: 10pt">Secretary and Chief Legal Officer
    since: 2005.<BR>
    Expires: Immediately following the 2007 Annual Meeting of
    Shareholders.
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    <FONT style="font-size: 10pt">Secretary and Chief Legal Officer
    of The Zweig Total Return Fund, Inc. (since 2005); Vice
    President and Counsel, Phoenix Life Insurance Company (since
    2005); Vice President, Counsel, Chief Legal Officer and
    Secretary, certain Funds within Phoenix Fund Complex (since
    2005); Compliance Officer of Investments and Counsel, Travelers
    Life and Annuity Company (January 2005-May 2005); Assistant
    General Counsel, The Hartford Financial Services Group
    (1999-2005).
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Moshe Luchins<BR>
    900 Third Avenue<BR>
    New York, NY 10022<BR>
    DOB: 12/22/71
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    <FONT style="font-size: 10pt">Vice President since: 2004.<BR>
    Expires: Immediately following the 2007 Annual Meeting of
    Shareholders.
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    <FONT style="font-size: 10pt">Vice President of The Zweig Fund,
    Inc. (since 2004); Associate Counsel (1996-2005), Associate
    General Counsel (since 2006) of the Zweig Companies.
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Nancy Curtiss<BR>
    56 Prospect Street<BR>
    Hartford, CT 06115<BR>
    DOB: 11/24/52
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    <FONT style="font-size: 10pt">Treasurer since: 2003.<BR>
    Expires: Immediately following the 2007 Annual Meeting of
    Shareholders.
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    <FONT style="font-size: 10pt">Treasurer of The Zweig Fund, Inc.
    (since 2003); Vice President, Operations (since 2003); Vice
    President, Fund Accounting (1994-2003) and Treasurer
    (1996-2003), Phoenix Equity Planning Corporation. Treasurer,
    multiple funds in Phoenix Fund Complex (since 1994).
    </FONT>
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 1pt; margin-left: 0%; width: 13%; align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=999 iwidth=455 length=60 -->

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<TR>
    <TD width="4%"></TD>
    <TD width="1%"></TD>
    <TD width="95%"></TD>
</TR>

<TR>
    <TD align="right" valign="top">
    *&#160;</TD>
    <TD></TD>
    <TD valign="bottom">
    Director considered to be an &#147;interested person,&#148; as
    that term is defined in the 1940 Act. George R. Aylward is
    considered an interested person because, among other things, he
    is an officer of the Fund.</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Fund&#146;s Board of Directors has appointed a standing
    Audit Committee and Nominating Committee. The Fund&#146;s Board
    of Directors has adopted a written charter for the Fund&#146;s
    Audit Committee. The purposes of the Audit Committee are set
    forth in the Audit Committee Charter. The Audit Committee
    assists the Board of Directors in its oversight of the
    Fund&#146;s financial reporting process. The Audit Committee of
    the Board of Directors will normally meet two times during each
    full fiscal year with representatives of the independent
    auditors to discuss and review various matters as contemplated
    by the Audit Committee Charter. The members of the Audit
    Committee, Messrs.&#160;Brunie, Olson, Rogers and Walton and
    Ms.&#160;Luscombe, are &#147;independent&#148; within the
    meaning of the 1940 Act and the NYSE corporate governance
    standards for audit committees. The Fund&#146;s Audit Committee
    held four meetings during the year ended December&#160;31, 2005
    and held four meetings during the year ended December&#160;31,
    2006.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Messrs.&#160;Brunie, Olson and Rogers, each of whom is not an
    interested person of the Fund, are members of the Nominating
    Committee of the Board of Directors. The Nominating Committee
    considers candidates for election to fill vacancies on the Board
    of Directors, and will consider recommendations from
    shareholders for
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    14
</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    possible nominees. Shareholders are required to submit a
    biography of the recommended candidate to the Secretary of the
    Fund. All shareholder recommended nominee submissions must be
    received by the Fund by the deadline for submission of any
    shareholder proposals which would be included in the Fund&#146;s
    proxy statement for the next annual meeting of the Fund. This
    deadline can be found in the proxy statement for the Fund&#146;s
    most recent annual meeting. When nominating a director
    candidate, shareholders must include in their notice to the
    Fund&#146;s Secretary the required information, as specified in
    Article&#160;II&#160;&#151; Section&#160;3 of the By-Laws. Such
    information includes (i)&#160;as to each person whom the
    shareholder proposes to nominate for election as a director
    (A)&#160;the name, age, business address and residence address
    of such person, (B)&#160;the principal occupation or employment
    of such person, (C)&#160;the class and number of shares of the
    capital stock of the Fund that are beneficially owned by such
    person and (D)&#160;any other information relating to such
    person that is required to be disclosed in solicitations of
    proxies for the election of directors pursuant to
    Regulation&#160;14A under the Securities Exchange Act of 1934 or
    any successor regulation thereto (including without limitation
    such person&#146;s written consent to being named in the proxy
    statement as a nominee and to serving as a director if elected
    and whether any person intends to seek reimbursement from the
    Fund of the expenses of any solicitation of proxies should such
    person be elected a director of the Fund); and (ii)&#160;as to
    the shareholder giving the notice (A)&#160;the name and address,
    as they appear on the Fund&#146;s books, of such shareholder,
    (B)&#160;the class and number of shares of the capital stock of
    the Fund which are beneficially
    <FONT style="white-space: nowrap">and/or</FONT> owned
    or record by such shareholder, (C)&#160;the nature of any such
    beneficial ownership of such stock, the beneficial ownership of
    any such stock held of record by such shareholder but
    beneficially owned by one or more other persons, and the length
    of time for which all such stock has been beneficially owned
    <FONT style="white-space: nowrap">and/or</FONT> owned
    of record by such shareholder, (D)&#160;a representation that
    the shareholder is a holder of record of shares of the Fund
    entitled to vote at such meeting and intends to appear in person
    or by proxy at the meeting to present such nomination(s) and
    (E)&#160;whether the shareholder intends or is part of a group
    which intends to solicit proxies from other shareholders in
    support of such nomination(s).
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Fund&#146;s Nominating Committee held one meeting during the
    year ended December&#160;31, 2005 and held one meeting during
    the year ended December&#160;31, 2006. The Fund does not have a
    standing compensation committee. All of the Directors attended
    at least 75% of the total number of Board meetings, and his or
    her respective committee meetings, held during the year ended
    December&#160;31, 2005. All of the Directors, other than Mr.
    Brunie, attended at least 75% of the total number of Board
    meetings, and his or her respective committee meetings, held
    during the year ended December&#160;31, 2006.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Board of Directors, including a majority of the
    disinterested Directors, has the responsibility under the 1940
    Act to approve the continuance of the Investment Advisory
    Agreement and the
    <FONT style="white-space: nowrap">Sub-Advisory</FONT>
    Agreement. Both the Investment Advisory Agreement and the
    <FONT style="white-space: nowrap">Sub-Advisory</FONT>
    Agreement were approved to be continued until March&#160;1, 2007
    at a meeting of the Directors held on February&#160;15, 2006.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Direct
    Ownership of Securities</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The dollar range of the Fund&#146;s securities owned by each
    Director in the Fund and the aggregate dollar range of
    securities owned in the Zweig Fund&#160;Complex (as defined
    below under &#147;Executive Compensation&#148;) is set forth
    below.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="58%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="16%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="17%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Aggregate Dollar Range<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Dollar Range of Equity<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>of Equity Securities in<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Securities in the Fund(1)</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>the Zweig Fund Complex</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Charles H. Brunie
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    Over $100,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    Over $100,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Wendy Luscombe
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $10,001 - $50,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $10,001 - $50,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Alden C. Olson
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $1 - $10,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $10,001 - $50,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">James B. Rogers,&#160;Jr.&#160;
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $1 - $10,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $10,001 - $50,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">R. Keith Walton
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $1 - $10,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $10,001 - $50,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">George R. Aylward
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 1pt; margin-left: 0%; width: 13%; align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=999 iwidth=455 length=60 -->

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<TR>
    <TD width="4%"></TD>
    <TD width="1%"></TD>
    <TD width="95%"></TD>
</TR>

<TR>
    <TD align="right" valign="top">
    (1) </TD>
    <TD></TD>
    <TD valign="bottom">
    The information as to beneficial ownership is based on
    statements furnished to the Fund by its Directors and reflects
    ownership as of December&#160;31, 2005. Except as otherwise
    indicated, each person has sole </TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    15
</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<TR>
    <TD width="4%"></TD>
    <TD width="1%"></TD>
    <TD width="95%"></TD>
</TR>

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="bottom">
    voting and investment power with respect to the shares listed as
    owned by him or her. Fractional shares are rounded off to the
    nearest whole share. The Directors and Officers of the Fund, as
    a group, beneficially own less than 1% of the outstanding shares
    of the Fund.</TD>
</TR>

</TABLE>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Executive
    Compensation</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The aggregate compensation paid to each of the Directors for the
    year ended December&#160;31, 2005 by the Fund and The Zweig
    Fund, Inc. (ZF), constituting all of the funds to which the
    Investment Adviser provides investment advisory services
    (collectively, the &#147;Zweig Fund&#160;Complex&#148;), and the
    total number of registered investment companies (and separate
    investment portfolios within those companies) in the Zweig
    Fund&#160;Complex with respect to which any of the Directors
    serves as a director or trustee are set forth below. The Fund
    does not pay any fees to, or reimburse expenses of, its Director
    who is considered an &#147;interested person&#148; of the Fund.
    Neither the Fund nor any other fund in the Zweig
    Fund&#160;Complex provides compensation in the form of pension
    or retirement benefits to any of its directors or trustees.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="54%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="18%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="19%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Total Compensation from<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Aggregate Compensation<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>the Zweig Fund Complex,<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Name of Director</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>from the Fund</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Including the Fund</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Charles H. Brunie
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    25,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    50,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Wendy Luscombe
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    35,500
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    72,500
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Alden C. Olson
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    28,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    56,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">James B. Rogers,&#160;Jr.&#160;
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    26,500
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    54,500
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">R. Keith Walton
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    35,500
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    72,500
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">George R. Aylward
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Limitation
    of Directors&#146; and Officers&#146; Liability</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Fund&#146;s Articles of Incorporation limit the personal
    liability of its Officers and Directors to the Fund and its
    shareholders for money damages to the maximum extent permitted
    by the Maryland General Corporation Law. Accordingly, a
    shareholder will be able to recover money damages against a
    Director or an Officer of the Fund only if he or she is able to
    prove that (a)&#160;the action, or failure to act, by the
    Director or Officer was the result of active and deliberate
    dishonesty which was material to the cause of action adjudicated
    in the proceeding, (b)&#160;the Director or Officer actually
    received an improper benefit or profit in money, property or
    services (in which case recovery is limited to the actual amount
    of such improper benefit or profit), or (c)&#160;the Director or
    Officer acted with willful misfeasance, bad faith, gross
    negligence, or reckless disregard of the duties involved in the
    conduct of his or her office. The limitation also does not apply
    to claims against Directors or Officers arising out of their
    responsibilities under the Federal securities laws. The
    Fund&#146;s Articles of Incorporation do not limit the right of
    the Fund or any shareholder to sue for an injunction or any
    other nonmonetary relief in the event of a breach of a
    Director&#146;s or Officer&#146;s duty of care or other breach
    of duty or responsibility.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Code of
    Ethics</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Fund, the Investment Adviser and the
    <FONT style="white-space: nowrap">Sub-Adviser</FONT>
    have each adopted Codes of Ethics pursuant to
    <FONT style="white-space: nowrap">Rule&#160;17j-1</FONT>
    under the 1940&#160;Act. These codes of ethics set forth the
    terms and conditions upon which personnel subject to the codes
    may invest in securities, including securities that may be
    purchased or held by the Fund. These codes contains policies and
    procedures that, among other things, prohibit personnel from
    trading on the basis of material nonpublic information, place
    limitations on personal trading by personnel, impose
    preclearance on certain types of trading, and impose reporting
    obligations on such personnel, including requiring initial and
    annual reports of securities holdings. Copies of the Codes of
    Ethics can be reviewed and copied at the Commission&#146;s
    Public Reference Room in Washington,&#160;D.C. Information on
    the operation of the Public Reference Room may be obtained by
    calling the Commission at
    <FONT style="white-space: nowrap">1-202-942-8090.</FONT>
    Copies of these Codes of Ethics are also available on the EDGAR
    Database on the Commission&#146;s Internet site at
    http://www.sec.gov, and copies of these codes may be obtained,
    after paying a duplicating fee, by electronic request at the
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    16
</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    following
    <FONT style="white-space: nowrap">E-mail</FONT>
    address: publicinfo@sec.gov, or by writing the Commission&#146;s
    Public Reference Section, Washington,&#160;D.C.
    <FONT style="white-space: nowrap">20549-0102.</FONT>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Proxy
    Voting</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Investment Adviser votes proxies relating to the Fund&#146;s
    portfolio securities in accordance with procedures that have
    been approved by the Fund&#146;s Board of Directors. It is the
    intention of the Fund to exercise stock ownership rights in
    portfolio securities in a manner that is reasonably anticipated
    to further the best economic interests of shareholders of the
    Fund. Accordingly, the Investment Adviser endeavors to analyze
    and vote all proxies that are considered likely to have
    financial implications, and, where appropriate, to participate
    in corporate governance, shareholder proposals, management
    communications and legal proceedings.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If in the voting of proxies, a conflict of interest arises
    between the interests of Fund shareholders, on one hand, and
    those of the Investment Adviser or any affiliated person of the
    Fund, on the other hand, the Investment Adviser may take one or
    more of the following actions, among others, or otherwise give
    weight to the following factors, in addressing material
    conflicts of interest in voting the proxies: (i)&#160;rely on
    the recommendations of an established, independent third party
    with qualifications to vote proxies such as Institutional
    Shareholder Services; or (ii)&#160;abstaining. The Investment
    Adviser will promptly notify the President of the Fund once any
    actual or potential conflict of interest exists. The Investment
    Adviser will not waive any conflict of interest or vote any
    conflicted proxies without the prior written approval of either
    the Board of Directors or the President of the Fund, in which
    case the President will report on the conflict at the next
    following meeting of the Board of Directors.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Shareholders may obtain information regarding how the Fund voted
    proxies during the most recent
    <FONT style="white-space: nowrap">12-month</FONT>
    period ended June&#160;30, 2006, free of charge by calling
    toll-free
    <FONT style="white-space: nowrap">1-800-243-1574</FONT>
    or from the EDGAR Database on the Commission&#146;s Internet
    site at http://www.sec.gov.
</DIV>
<A name='204'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">INVESTMENT
    ADVISER AND
    <FONT style="white-space: nowrap">SUB-ADVISER</FONT></FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Investment Adviser, Phoenix/Zweig Advisers LLC, is a New
    York limited liability company, with offices at 900&#160;Third
    Avenue, New York, New York&#160;10022. The Investment Adviser
    became the Fund&#146;s investment adviser on January&#160;1,
    2000, following the acquisition of Zweig Total Return Advisors,
    Inc., the Fund&#146;s former investment adviser, Zweig/Glaser
    Advisers, the Fund&#146;s former administrator, and Zweig
    Securities Corp.&#160;by Phoenix Investment Partners,
    Ltd.&#160;on March&#160;1, 1999 (the &#147;Acquisition&#148;).
    The Investment Adviser is a wholly-owned subsidiary of Phoenix
    Investment Partners, Ltd., a wholly-owned investment management
    subsidiary of The Phoenix Companies, Inc., a
    <FONT style="white-space: nowrap">NYSE-listed</FONT>
    company. Phoenix/Zweig Advisers LLC and Phoenix Investment
    Partners, Ltd. are Delaware corporations and independent
    advisory firms registered with the Commission under the
    Investment Advisers Act of 1940, as amended. As of
    December&#160;31, 2005, Phoenix Investment Partners, Ltd. had
    approximately $37.4&#160;billion of assets under management.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Pursuant to an investment advisory agreement dated March&#160;1,
    1999 (the &#147;Investment Advisory Agreement&#148;), the
    Investment Adviser is responsible for the actual management of
    the Fund&#146;s portfolio. The responsibility for making
    decisions to buy, sell or hold a particular investment rests
    with the Investment Adviser, subject to the supervision of the
    Board of Directors and the applicable provisions of the
    1940&#160;Act. The Investment Adviser is also obligated to
    provide the Fund with such executive, administrative, data
    processing, clerical, accounting and bookkeeping services and
    statistical and research data as are deemed advisable by the
    Board of Directors, except to the extent these services are
    provided by an administrator hired by the Fund. The Investment
    Adviser may consider analyses from various other sources,
    including broker-dealers with which the Fund does business and
    affiliates of the Investment Adviser. Under a services agreement
    (the
    <FONT style="white-space: nowrap">&#147;Sub-Advisory</FONT>
    Agreement&#148;) with the Investment Adviser, the
    <FONT style="white-space: nowrap">Sub-Adviser,</FONT>
    Zweig Consulting LLC, performs asset allocation research and
    analysis and provides advice thereon to the Investment Adviser
    and actively collaborates in the stock selection process with
    the Investment Adviser&#146;s portfolio management team. The
    extent of the Fund&#146;s investment in debt and equity
    securities will be determined primarily on the
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    17
</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    basis of asset allocation techniques developed by
    Dr.&#160;Martin E. Zweig, President of the
    <FONT style="white-space: nowrap">Sub-Adviser,</FONT>
    and his staff.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    For the services provided by the Investment Adviser under the
    Investment Advisory Agreement, the Fund will pay the Investment
    Adviser a monthly fee computed at the annual rate of 0.70% of
    the Fund&#146;s average daily net assets during the previous
    month. For the fiscal years ended December&#160;31, 2005, 2004
    and 2003, the Fund accrued investment advisory fees of
    $&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;,
    $&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
    and
    $&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;,
    respectively.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    PXP Securities Corp. or any other brokerage affiliate (the
    &#147;Brokerage Affiliate&#148;) may act as a broker for the
    Fund. In order for the Brokerage Affiliate to effect any
    portfolio transactions for the Fund, the commissions, fees or
    other remuneration received by the Brokerage Affiliate must be
    reasonable and fair compared to the commissions, fees or other
    remuneration paid to other brokers in connection with comparable
    transactions involving similar securities being purchased or
    sold on an exchange during a comparable period of time. The Fund
    will not deal with a Brokerage Affiliate in any portfolio
    transaction in which the Brokerage Affiliate would act as
    principal.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Dr.&#160;Martin
    E. Zweig</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Dr.&#160;Martin E. Zweig, the President of the
    <FONT style="white-space: nowrap">Sub-Adviser,</FONT>
    has been in the business of providing investment advisory
    services for over 35&#160;years. Dr.&#160;Zweig and his
    associates determine asset allocation strategies to assist the
    Investment Adviser in its management of the Fund.
    Dr.&#160;Zweig, on behalf of the
    <FONT style="white-space: nowrap">Sub-Adviser,</FONT>
    actively collaborates in the security selection process with the
    Investment Adviser&#146;s portfolio management team.
</DIV>
<A name='205'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">PORTFOLIO
    MANAGERS</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Portfolio
    Managers</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Fund&#146;s portfolio managers (each referred to as a
    &#147;portfolio manager&#148;) are listed below. Each portfolio
    manager manages other investment companies
    <FONT style="white-space: nowrap">and/or</FONT>
    investment vehicles and accounts in addition to the Fund. The
    following tables show, as of December&#160;1, 2006, the number
    of accounts each portfolio manager managed in each of the listed
    categories and the total assets in the accounts managed within
    each category.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="50%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="15%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="12%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="9%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Registered<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Other Pooled<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Portfolio Manager</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Investment Companies</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Investment Vehicles</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Other Accounts</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Carlton Neel
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">David Dickerson
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The dollar range of the Fund&#146;s securities owned by each
    portfolio manager and the aggregate dollar range of securities
    owned in the Zweig Fund&#160;Complex (as defined above under
    &#147;Executive Compensation&#148;) is set forth below.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="57%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="16%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="18%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Aggregate Dollar Range of<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Dollar Range of Equity<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Equity Securities in the<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Securities in the Fund(1)</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Zweig Fund Complex</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Carlton Neel
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    50,001&#160;- $100,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    Over $
</TD>
<TD nowrap align="right" valign="bottom">
    100,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">David Dickerson
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    10,001&#160;- $50,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    50,001&#160;- $100,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 1pt; margin-left: 0%; width: 13%; align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=999 iwidth=455 length=60 -->

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<TR>
    <TD width="4%"></TD>
    <TD width="1%"></TD>
    <TD width="95%"></TD>
</TR>

<TR>
    <TD align="right" valign="top">
    (1) </TD>
    <TD></TD>
    <TD valign="bottom">
    The information as to beneficial ownership is based on
    statements furnished to the Fund by its Directors and reflects
    ownership as of December&#160;31, 2005. Except as otherwise
    indicated, each person has sole voting and investment power with
    respect to the shares listed as owned by him or her. Fractional
    shares are rounded off to the nearest whole share. The Directors
    and Officers of the Fund, as a group, beneficially own less than
    1% of the outstanding shares of the Fund.</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    It is possible that conflicts of interest may arise in
    connection with the portfolio managers&#146; management of the
    Fund&#146;s investments on the one hand and the investments of
    other accounts or vehicles for which the portfolio managers are
    responsible on the other. For example, a portfolio manager may
    have conflicts of interest in allocating management time,
    resources and investment opportunities among the Fund and the
    other
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    18
</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    accounts or vehicles he advises. In addition, due to differences
    in the investment strategies or restrictions among the Fund and
    the other accounts, a portfolio manager may take action with
    respect to another account that differs from the action taken
    with respect to the Fund. In some cases, another account managed
    by a portfolio manager may provide more revenue to the
    Investment Adviser. While this may appear to create additional
    conflicts of interest for the portfolio manager in the
    allocation of management time, resources and investment
    opportunities, the Investment Adviser strives to ensure that
    portfolio managers endeavor to exercise their discretion in a
    manner that is equitable to all interested persons. In this
    regard, in the absence of specific account-related impediments
    (such as client-imposed restrictions or lack of available cash),
    it is the policy of the Investment Adviser to allocate
    investment ideas pro rata to all accounts with the same primary
    investment objective.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Portfolio
    Manager Compensation Structure and Method</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Phoenix Investment Partners, Ltd. and its affiliated investment
    management firms (collectively, &#147;PXP&#148;), believe that
    PXP&#146;s compensation program is adequate and competitive to
    attract and retain high-caliber investment professionals.
    Investment professionals at PXP receive a competitive base
    salary, an incentive bonus opportunity and a benefits package.
    Managing Directors and portfolio investment professionals who
    supervise and manage others also participate in a management
    incentive program reflecting their personal contribution and
    team performance. Highly compensated individuals can also take
    advantage of a long-term Incentive Compensation program to defer
    their compensation and potentially reduce their taxes.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The bonus package for portfolio managers is based upon how well
    the individual manager meets or exceeds assigned goals and a
    subjective assessment of contribution to the team effort. Their
    incentive bonus also reflects a performance component for
    achieving
    <FONT style="white-space: nowrap">and/or</FONT>
    exceeding performance competitive with peers managing similar
    strategies. Such component is further adjusted to reward
    investment personnel for managing within the stated framework
    and for not taking unnecessary risks. This ensures that
    investment personnel will remain focused on managing and
    acquiring securities that correspond to a fund&#146;s mandate
    and risk profile. It also avoids the temptation for portfolio
    managers to take on more risk and unnecessary exposure to chase
    performance for personal gain. Finally, portfolio managers and
    investment professionals may also receive The Phoenix Companies,
    Inc. stock options
    <FONT style="white-space: nowrap">and/or</FONT> may
    be granted The Phoenix Companies, Inc. restricted stock at the
    direction of the parent&#146;s Board of Directors.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Following is a more detailed description of the compensation
    structure of the Fund&#146;s portfolio managers.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Base Salary.</I>&#160;&#160;Each portfolio manager is paid a
    fixed base salary, which is determined by PXP and is designed to
    be competitive in light of the individual&#146;s experience and
    responsibilities. PXP&#146;s management uses compensation survey
    results of investment industry compensation conducted by an
    independent third party in evaluating competitive market
    compensation for its investment management professionals.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Incentive Bonus.</I>&#160;&#160;Generally, the current
    Performance Incentive Plan for portfolio managers at PXP is made
    up of three components:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (1)&#160;Seventy percent of the target incentive is based on
    achieving investment area investment goals and individual
    performance. The Investment Incentive pool will be established
    based on actual pre-tax investment performance compared with
    specific peer group or index measures established at the
    beginning of each calendar year. Performance of the funds
    managed is measured over one, three and five-year periods
    against specified benchmarks
    <FONT style="white-space: nowrap">and/or</FONT> peer
    groups (as indicated in the table below) for each fund managed.
    Performance of the The Phoenix Companies, Inc. general account
    and growth of revenue, if applicable to a particular portfolio
    manager, is measured on a one-year basis. Generally, individual
    portfolio manager&#146;s participation is based on the
    performance of each fund/account managed as weighted roughly by
    total assets in each of those funds/accounts. The Lipper Large
    Cap Core peer group is used as the benchmark for the equity
    portion of the Fund, and the Lipper General U.S. Government
    Funds peer group is used for the fixed income portion of the
    Fund. These benchmarks are subject to change dependent upon
    evaluation of the appropriate groupings.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    19
</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="42%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="56%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>FUND</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>BENCHMARK(S) AND/OR PEER GROUPS</B>
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">The Zweig Total Return Fund,
    Inc.&#160;
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    <FONT style="font-size: 10pt">Lipper Large Cap Core/Lipper
    General U.S. Government Funds
    </FONT>
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (2)&#160;Fifteen percent of the target incentive is based on the
    profitability of the investment management division with which
    the portfolio manager is associated. This component of the plan
    is paid in restricted stock units of The Phoenix Companies,
    Inc., which vest over three years.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (3)&#160;Fifteen percent of the target incentive is based on the
    portfolio manager&#146;s investment area&#146;s competencies and
    on individual performance. This pool is funded based on The
    Phoenix Companies, Inc.&#146;s return on equity.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Performance Incentive Plan applicable to some portfolio
    managers may vary from the description above. For instance,
    plans applicable to certain portfolio managers (i)&#160;may
    specify different percentages of target incentive that are based
    on investment goals and individual performance and on The
    Phoenix Companies, Inc. return on equity, (ii)&#160;may not
    contain the component that is based on the profitability of the
    management division with which the portfolio manager is
    associated, or (iii)&#160;may contain a guarantee payout
    percentage of certain portions of the Performance Incentive Plan.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Long-Term Incentive Bonus.</I>&#160;&#160;Certain portfolio
    managers are eligible for a long-term incentive plan that is
    paid in restricted stock units of The Phoenix Companies, Inc.
    which vest over three years. Awards under this plan are
    contingent upon The Phoenix Companies, Inc. achieving its cash
    return on equity objective, generally over a three-year period.
    Target award opportunities for eligible participants are
    determined by The Phoenix Companies, Inc.&#146;s Compensation
    Committee.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Other Benefits.</I>&#160;&#160;Portfolio managers are also
    eligible to participate in broad-based plans offered generally
    to PXP employees, including broad-based retirement, 401(k),
    health and other employee benefit plans.
</DIV>
<A name='206'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">EXPENSES</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    For the fiscal years ended December&#160;31, 2005, 2004 and
    2003, the Fund&#146;s net expenses amounted to
    $&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;,
    $&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
    and
    $&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;,
    respectively.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Expenses of the Offer will be charged to
    capital.</I>&#160;&#160;The Fund&#146;s annual expense ratio
    was&#160;&#160;&#160;&#160;&#160;%,&#160;&#160;&#160;&#160;&#160;%
    and&#160;&#160;&#160;&#160;&#160;% of the Fund&#146;s average
    net assets for the fiscal years ended December&#160;31, 2005,
    2004 and 2003, respectively.
</DIV>
<A name='207'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">PORTFOLIO
    TRANSACTIONS AND BROKERAGE</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In the purchase and sale of portfolio securities for the Fund,
    the Investment Adviser will seek the best combination of price
    (inclusive of brokerage commissions) and execution, and,
    consistent with that policy, may give consideration to the
    research, statistical and other services furnished by brokers or
    dealers to the Investment Adviser for its use. The Investment
    Adviser is also authorized to place orders with brokers who
    provide supplemental investment, market research and security
    and economic analysis, although the use of such brokers may
    result in a higher brokerage charge to the Fund than the use of
    brokers selected solely on the basis of seeking the best
    combination of price (inclusive of brokerage commissions) and
    execution for the same order. Brokerage may be allocated
    entirely on the basis of net results to the Fund, including the
    difficulty of the order and the reputation of the broker-dealer.
    Research and analysis received by the Investment Adviser may
    benefit the Investment Adviser, the
    <FONT style="white-space: nowrap">Sub-Adviser</FONT>
    and their respective affiliates in connection with their
    services to other clients, as well as the Fund. Subject to the
    foregoing, the Fund may effect a portion of its securities
    transactions through affiliated broker-dealers of the Investment
    Adviser, including PXP Securities Corp. In accordance with the
    provisions of
    <FONT style="white-space: nowrap">Rule&#160;17e-1</FONT>
    under the 1940 Act, the Fund&#146;s Board of Directors has
    adopted certain procedures which are designed to provide that
    brokerage commissions paid to PXP Securities Corp. and any other
    affiliated broker-dealers, are reasonable and fair as compared
    to the brokerage commissions received by other brokers in
    connection with comparable transactions involving similar
    securities
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    20
</DIV><!-- END LOGICAL PAGE -->
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    being purchased or sold on securities exchanges during a
    comparable period of time. The Fund, however, has no obligation
    to deal with PXP Securities Corp. or any other broker-dealer in
    effecting portfolio transactions.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Fund paid brokerage commissions of
    $&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; to
    brokers for the year ended December&#160;31, 2005, of which $0
    was paid to PXP Securities Corp., representing 0% of the
    aggregate brokerage commissions paid by the Fund and 0% of the
    aggregate amount of transactions involving the payment of
    commissions for such year. The Fund paid brokerage commissions
    of $&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
    to brokers for the year ended December&#160;31, 2004, of which
    $0 was paid to PXP Securities Corp., representing 0% of the
    aggregate brokerage commissions paid by the Fund and 0% of the
    aggregate amount of transactions involving the payment of
    commissions for such year. The Fund paid brokerage commissions
    of $&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
    to brokers for the year ended December&#160;31, 2003, of which
    $0 was paid to PXP Securities Corp., representing 0% of the
    aggregate brokerage commissions paid by the Fund and 0% of the
    aggregate amount of transactions involving the payment of
    commissions for such year.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    A portion of the securities in which the Fund will invest may be
    traded in the
    <FONT style="white-space: nowrap">over-the-counter</FONT>
    markets, and the Fund intends to deal directly with the dealers
    who make markets in the securities involved, except in those
    circumstances where better prices and execution are available
    elsewhere. Fixed income securities purchased or sold on behalf
    of the Fund normally will be traded in the
    <FONT style="white-space: nowrap">over-the-counter</FONT>
    market on a net basis (i.e. without a commission) through
    dealers acting for their own account and not as brokers or
    otherwise through transactions directly with the issuer of the
    instrument. Some fixed income securities may be purchased and
    sold on an exchange or in
    <FONT style="white-space: nowrap">over-the-counter</FONT>
    transactions conducted on an agency basis involving a
    commission. Futures transactions generally will be effected
    through those futures commission merchants the Fund believes
    will obtain the most favorable results for the Fund.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    When the Fund and one or more accounts managed by the Investment
    Adviser or its affiliates propose to purchase or sell the same
    security, the available opportunities will be allocated in a
    manner the Investment Adviser believes to be equitable. In some
    cases, this procedure may affect adversely the price paid or
    received by the Fund or the size of the position purchased or
    sold by the Fund. In other cases, coordination with transactions
    for other accounts and the ability to participate in volume or
    block transactions could benefit the Fund.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Portfolio
    Turnover</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Fund&#146;s portfolio turnover rates for the fiscal years
    ended December&#160;31, 2005, December&#160;31, 2004 and
    December&#160;31, 2003
    were&#160;&#160;&#160;&#160;&#160;%,&#160;&#160;&#160;&#160;&#160;%
    and&#160;&#160;&#160;&#160;&#160;%, respectively. Portfolio
    turnover rate is calculated by dividing the lesser of the
    Fund&#146;s annual sales or purchases of portfolio securities by
    the monthly average value of securities in the portfolio during
    the year, excluding portfolio securities the maturities of which
    at the time of acquisition were one year or less. Portfolio
    turnover will not be a limiting factor in making investment
    decisions, and the Fund&#146;s investment policies may result in
    portfolio turnover substantially greater than that of other
    investment companies. A high rate of portfolio turnover (over
    100%) involves greater brokerage commission expense, which must
    be borne by the Fund and its shareholders. A high rate of
    portfolio turnover may also result in the realization of capital
    gains, and to the extent that portfolio turnover results in the
    realization of net short-term capital gains, such gains, when
    distributed, would be taxed to shareholders at ordinary income
    tax rates.
</DIV>
<A name='208'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">NET ASSET
    VALUE</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The net asset value of the Fund&#146;s shares will be determined
    by the Administrator as of the close of regular trading on the
    NYSE, on each day the NYSE is open for trading, by dividing the
    Fund&#146;s total assets, less the Fund&#146;s total
    liabilities, by the total number of Shares outstanding. Net
    asset value will be published weekly in a financial newspaper of
    general circulation.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Portfolio securities (including stock options) which are traded
    only on stock exchanges will be valued at the last sale price.
    Securities traded in the
    <FONT style="white-space: nowrap">over-the-counter</FONT>
    market which are National Market Systems securities will be
    valued at the last sale price. Other
    <FONT style="white-space: nowrap">over-the-counter</FONT>
    securities will be valued on the basis of
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    21
</DIV><!-- END LOGICAL PAGE -->
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    the mean between the current bid and asked prices obtained from
    market makers in such securities. Debt securities that mature in
    60&#160;days or less will be valued at amortized cost, unless
    the Board of Directors determines that such valuation does not
    constitute fair value. Debt securities that have an original
    maturity of less than 61&#160;days will be valued at their cost,
    plus or minus amortized discount or premium, unless the Board of
    Directors determines that such valuation does not constitute
    fair value. Futures and options thereon which are traded on
    commodities exchanges will be valued at their closing settlement
    price on such exchange. Securities and assets for which market
    quotations are not readily available, and other assets, if any,
    will be valued at fair value as determined in good faith and
    pursuant to procedures established by the Board of Directors of
    the Fund.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The outstanding shares of Common Stock are, and the Shares will
    be, listed on the New York Stock Exchange, Inc. The Fund&#146;s
    Shares of Common Stock have traded in the market above, at and
    below net asset value since the commencement of the Fund&#146;s
    operations in September 1988. The Fund&#146;s Officers cannot
    predict whether the Fund&#146;s Common Stock will trade in the
    future at a premium or a discount to net asset value, and if so,
    the level of such premium or discount.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    22
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->
<A name='209'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">TAXATION</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The following is a summary of the principal U.S.&#160;Federal
    income, and certain state and local, tax considerations
    regarding the purchase, ownership and disposition of shares of
    the Fund. The summary does not address special tax rules
    applicable to certain classes of investors, such as tax-exempt
    entities, insurance companies and financial institutions. Each
    prospective shareholder is urged to consult his or her own tax
    adviser with respect to the specific Federal, state, local and
    foreign tax consequences of investing in the Fund. The summary
    is based on the laws in effect on the date of this SAI, which
    are subject to change.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">General</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Fund has elected to be treated, has qualified and intends to
    continue to qualify for each taxable year, as a regulated
    investment company under Subchapter&#160;M of the Internal
    Revenue Code of 1986, as amended (the &#147;Code&#148;). To so
    qualify, the Fund must comply with certain requirements of the
    Code relating to, among other things, the source of its income
    and the diversification of its assets.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If the Fund complies with such requirements, then in any taxable
    year for which the Fund distributes, in accordance with the
    Code&#146;s timing requirements, ordinary income dividends of at
    least 90% of its investment company taxable income, the Fund
    (but not its shareholders) will be relieved of Federal income
    tax on any income of the Fund, including capital gains, that is
    distributed to shareholders in accordance with the Code&#146;s
    requirements. However, if the Fund retains any investment
    company taxable income or net capital gain, it will be subject
    to a tax at regular corporate rates on the amount retained. If
    the Fund retains any net capital gain, the Fund may designate
    the retained amount as undistributed capital gains in a notice
    to its shareholders who, if subject to U.S.&#160;Federal income
    tax on capital gains, (i)&#160;will be required to include in
    income for Federal income tax purposes, as capital gain, their
    shares of such undistributed amount, and (ii)&#160;will be
    entitled to credit their proportionate shares of the tax paid by
    the Fund against their U.S.&#160;Federal income tax liabilities,
    if any, and to claim refunds to the extent the credit exceeds
    such liabilities. For U.S.&#160;Federal income tax purposes, the
    tax basis of shares owned by a shareholder of the Fund will be
    increased by an amount equal under current law to 65% of the
    amount of undistributed net capital gain included in the
    shareholder&#146;s gross income.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In order to avoid a 4% Federal excise tax, the Fund must
    distribute (or be deemed to have distributed) by
    December&#160;31 of each calendar year at least 98% of its
    taxable ordinary income for such year, at least 98% of the
    excess of its capital gains over its capital losses, and all
    taxable ordinary income and the excess of capital gains over
    capital losses for the previous year that were not distributed
    for such year and on which the Fund did not pay Federal income
    tax. The Fund intends to distribute at least annually to its
    shareholders all or substantially all of its investment company
    taxable income and its net capital gain, but reserves the right
    to retain and designate as described in the above paragraph, its
    net capital gain.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Fund&#146;s investments, if any, in securities issued at a
    discount or providing for deferred interest payments or payments
    of interest in kind will generally cause the Fund to realize
    income prior to the receipt of cash payments with respect to
    these securities. Mark to market rules applicable to certain
    options and futures contracts may also require that net gains be
    recognized without a concurrent receipt of cash. In order to
    obtain cash to distribute its income or gains, maintain its
    qualification as a regulated investment company and avoid
    Federal income or excise taxes, the Fund may be required to
    liquidate portfolio securities that it might otherwise have
    continued to hold.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Taxable
    U.S.&#160;Shareholders&#160;&#151; Distributions</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    For U.S.&#160;Federal income tax purposes, distributions by the
    Fund, whether reinvested in additional shares or paid in cash,
    generally will be taxable to shareholders who are subject to tax.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Distributions from the Fund&#146;s investment company taxable
    income will be taxable as ordinary income, and generally cannot
    be offset by capital losses. For non-corporate shareholders,
    certain of the Fund&#146;s ordinary income distributions
    received (or deemed received) in taxable years through and
    including 2010 may qualify for the 15% Federal income tax rate
    applicable to &#147;qualified dividend income.&#148; For
    corporate shareholders,
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    23
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    certain of the Fund&#146;s ordinary income distributions may
    qualify for the dividends received deduction. (However, the
    entire dividend, including the deducted amount, is includable in
    determining a corporate shareholder&#146;s alternative minimum
    taxable income.) So long as the Fund qualifies as a regulated
    investment company and satisfies the 90% distribution
    requirement, capital gain dividends if properly designated as
    such in a written notice to shareholders mailed not later than
    60&#160;days after the Fund&#146;s taxable year closes, will be
    taxed to shareholders as capital gain which, as to non-corporate
    shareholders, will be taxable at a maximum marginal Federal
    income tax rate of 15%, regardless of how long the shareholder
    has held his or her Fund shares. Distributions, if any, that are
    in excess of the Fund&#146;s current and accumulated earnings
    and profits, as computed for Federal income tax purposes, will
    first reduce a shareholder&#146;s tax basis in his or her shares
    and, after such basis is reduced to zero, will constitute
    capital gains to a shareholder who holds his or her shares as
    capital assets.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    All distributions, whether received in shares or in cash, as
    well as sales and exchanges of Fund shares, must be reported by
    each shareholder who is required to file a U.S.&#160;Federal
    income tax return. For Federal income tax purposes, dividends
    declared by the Fund in October, November or December and paid
    during January of the following year are treated as if they were
    paid by the Fund and received by such shareholders on
    December&#160;31 of the year declared. In addition, certain
    other distributions made after the close of a taxable year may
    be &#147;spilled back&#148; and treated as paid by the Fund
    (other than for purposes of avoiding the 4% excise tax) during
    such year. Such dividends would be taxable to the shareholders
    in the taxable year in which the distribution was actually made
    by the Fund.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Fund will send written notices to shareholders regarding the
    amount and Federal income tax status of all distributions made
    during each calendar year.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    With respect to distributions paid in cash or, for shareholders
    participating in the Distribution Reinvestment and Cash Purchase
    Plan (the &#147;Plan&#148;), reinvested in shares purchased in
    the open market, the amount of the distribution for tax purposes
    is the amount of cash distributed or allocated to the
    shareholder. With respect to distributions issued in shares of
    the Fund, the amount of the distribution for tax purposes is the
    fair market value of the issued shares on the payment date.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Distributions by the Fund result in a reduction in the net asset
    value of the Fund&#146;s shares and may also reduce their market
    value. Should a distribution reduce the net asset value or
    market value below a shareholder&#146;s cost basis, such
    distribution (to the extent paid from the Fund&#146;s current or
    accumulated earnings and profits) would nevertheless be taxable
    to the shareholder as ordinary income or capital gain as
    described above even though, from an investment standpoint, it
    may constitute a partial return of capital. In particular,
    investors should be careful to consider the tax implications of
    buying shares just prior to a distribution. Since the market
    price of shares purchased at that time may include the amount of
    any forthcoming distribution, investors purchasing shares just
    prior to a distribution will in effect receive a return of a
    portion of their investment in the form of a distribution which
    nevertheless will be taxable to them.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Taxable
    U.S.&#160;Shareholders&#160;&#151; Sale of Shares</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    When a shareholder&#146;s shares are sold, exchanged or
    otherwise disposed of, the shareholder will generally recognize
    gain or loss equal to the difference between the
    shareholder&#146;s adjusted tax basis in the shares and the
    cash, or fair market value of any property, received. Assuming
    the shareholder holds the shares as a capital asset at the time
    of such sale or other disposition, such gain or loss should be
    capital gain or loss which will be long-term if the shares were
    held for more than one year, and short-term if the shares are
    held for one year or less. However, any loss realized on the
    sale, exchange or other disposition of Fund shares with a tax
    holding period of six months or less will be treated as a
    long-term capital loss to the extent of any capital gain
    dividend received by the selling shareholder with respect to
    such shares. Additionally, any loss realized on a sale or other
    disposition of shares of the Fund may be disallowed under
    &#147;wash sale&#148; rules to the extent the shares disposed of
    are replaced with other shares of the Fund within a period of
    61&#160;days beginning 30&#160;days before and ending
    30&#160;days after the shares are disposed of, such as pursuant
    to a distribution reinvestment in shares of the Fund under the
    Plan. If disallowed, the loss will be reflected in an adjustment
    to the basis of the shares acquired.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    24
</DIV><!-- END LOGICAL PAGE -->
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Backup
    Withholding</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Fund will be required to report to the Internal Revenue
    Service all distributions, as well as gross proceeds from the
    sale or exchange of Fund shares with respect to which the Fund
    is a payor (such as pursuant to a tender offer), except in the
    case of certain exempt recipients, <U>i.e.</U>, corporations and
    certain other investors to which distributions are exempt from
    the information reporting provisions of the Code. Under the
    backup withholding provisions of Code Section&#160;3406 and
    applicable Treasury regulations, all such reportable
    distributions and proceeds may be subject to backup withholding
    of Federal income tax at the rate of 28% in the case of
    nonexempt shareholders who fail to furnish the Fund with their
    correct taxpayer identification number and with certain required
    certifications or if the Internal Revenue Service or a broker
    notifies the Fund that the number furnished by the shareholder
    is incorrect or that the shareholder is subject to backup
    withholding as a result of failing to report interest or
    dividend income. The Fund may refuse to accept any subscription
    that does not contain any required taxpayer identification
    number or certification that the number provided is correct. If
    the backup withholding provisions are applicable, any such
    distributions and proceeds, whether taken in cash or reinvested
    in shares, will be reduced by the amounts required to be
    withheld. Any amounts withheld would be credited against a
    shareholder&#146;s U.S.&#160;Federal income tax liability.
    Investors should consult their tax advisers about the
    applicability of the backup withholding provisions.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times"><FONT style="white-space: nowrap">Non-U.S.&#160;Shareholders</FONT></FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Dividends paid to a shareholder who is not a U.S.&#160;person
    (i.e., a nonresident alien individual, or a foreign corporation,
    foreign partnership, foreign trust or foreign estate) ordinarily
    are subject to U.S.&#160;withholding tax at the rate of 30% (or
    a lower rate provided by an applicable tax treaty) unless the
    dividends are effectively connected with a U.S.&#160;trade or
    business of the shareholder, in which case the dividends are
    subject to tax on a net income basis at the graduated rates
    applicable to U.S.&#160;individuals or domestic corporations
    and, in the case of a shareholder that is a foreign corporation,
    may be subject to U.S.&#160;&#147;branch profit tax.&#148;
    However, &#147;short-term capital gain dividends&#148; and
    &#147;interest-related dividends&#148; paid by the Fund with
    respect to the Fund&#146;s 2006 and 2007 taxable years generally
    will be exempt from 30% withholding. &#147;Short-term capital
    gain dividends&#148; generally are limited to the excess (if
    any) of the Fund&#146;s net short-term capital gains over its
    net long-term capital losses, and &#147;interest-related
    dividends&#148; generally are limited to the Fund&#146;s income
    (less expenses) from interest paid by U.S.&#160;issuers and
    interest paid on deposits with U.S.&#160;banks. Capital gain
    distributions, including amounts retained by the Fund which are
    designated as undistributed capital gains, to a
    <FONT style="white-space: nowrap">non-U.S.&#160;shareholder</FONT>
    will not be subject to U.S.&#160;income or withholding tax
    unless the distributions are effectively connected with the
    shareholder&#146;s trade or business in the U.S.&#160;or, in the
    case of a shareholder who is a nonresident alien individual, if
    the shareholder is present in the U.S.&#160;for 183&#160;days or
    more during the taxable year and certain other conditions are
    met.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Any gain realized by a shareholder who is not a U.S.&#160;person
    upon a sale or other disposition of shares of the Fund will not
    be subject to U.S.&#160;Federal income or withholding tax unless
    the gain is effectively connected with the shareholder&#146;s
    trade or business in the U.S., or in the case of a shareholder
    who is a nonresident alien individual, if the shareholder is
    present in the U.S.&#160;for 183&#160;days or more during the
    taxable year and certain other conditions are met.
    <FONT style="white-space: nowrap">Non-U.S.&#160;persons</FONT>
    who fail to furnish the Fund with an IRS
    <FONT style="white-space: nowrap">Form&#160;W-8BEN</FONT>
    or acceptable substitute
    <FONT style="white-space: nowrap">Form&#160;W-8BEN</FONT>
    may be subject to backup withholding at the rate of 28% on
    capital gain dividends and the proceeds of certain sales of
    their shares with respect to which the Fund is a payor (such as
    pursuant to a tender offer). Investors who are not
    U.S.&#160;persons should consult their tax advisers about the
    U.S. and
    <FONT style="white-space: nowrap">non-U.S.&#160;tax</FONT>
    consequences of ownership of shares of, and receipt of
    distributions from, the Fund.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">State and
    Local Taxes</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Fund may be subject to state or local taxes in jurisdictions
    in which the Fund may be deemed to be doing business. In
    addition, in those states or localities which have income tax
    laws, the treatment of the Fund and its shareholders under such
    laws may differ from their treatment under Federal income tax
    laws, and an investment in the Fund may have tax consequences
    for shareholders different from those of a direct investment in
    the Fund&#146;s portfolio securities. Shareholders should
    consult their own tax advisers concerning these matters.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    25
</DIV><!-- END LOGICAL PAGE -->
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->
<A name='210'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">INDEPENDENT
    ACCOUNTANTS</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    PricewaterhouseCoopers LLP, 125 High Street, Boston,
    Massachusetts 02110, serves as the independent accountants for
    the Fund. In addition to reporting annually on the financial
    statements of the Fund, the Fund&#146;s accountants also review
    certain filings of the Fund with the Commission.
</DIV>
<A name='211'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">PRINCIPAL
    SHAREHOLDERS</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    There are no persons known to the Fund to be control persons of
    the Fund, as such term is defined in Section&#160;2(a)(9) of the
    1940 Act. Except for the following, there is no person known to
    the Fund to hold beneficially 5% or more of the outstanding
    shares of the Fund. As of December&#160;11, 2006, there were
    93,233,099.4993 outstanding shares of the Fund.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="61%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="20%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="10%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Name and Address of Record Owner</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Amount of Record Ownership</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Percent of Class</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
    <FONT style="font-size: 10pt">Cede&#160;&#38; Co.<BR>
    55 Water Street<BR>
    New York, New York 10004<BR>
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    26
</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->
<A name='212'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">FINANCIAL
    STATEMENTS</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The audited financial statements and the notes thereto, together
    with the report of PricewaterhouseCoopers LLP thereon, are
    incorporated herein by reference to the Fund&#146;s Annual
    Report to Shareholders for the fiscal year ended
    December&#160;31, 2005. The Fund will furnish, without charge, a
    copy of the foregoing documents upon written request to the
    Fund&#146;s Administrator, Phoenix Equity Planning Corporation,
    One American Row, Hartford, CT 06102, Attention: Shareholders
    Services.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    F-1
</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">PART&#160;C<BR>
    </FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">OTHER
    INFORMATION</FONT></B>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="9%"></TD>
    <TD width="91%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Item&#160;25.&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><I><FONT style="font-family: 'Times New Roman', Times">Financial
    Statements and Exhibits</FONT></I></B>
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (1)&#160;Financial Statements: The following financial
    statements and schedules of the Registrant included in the
    Prospectus
    <FONT style="white-space: nowrap">and/or</FONT> SAI
    are filed with and made a part of this Registration Statement:
    Statement of Assets and Liabilities, December&#160;31, 2005;
    Statement of Operations for the fiscal year ended
    December&#160;31, 2005; Statement of Changes in Net Assets for
    the fiscal years ended December&#160;31, 2005 and 2004; Schedule
    of Investments and Securities Sold Short, December&#160;31,
    2005; Notes to Financial Statements at December&#160;31, 2005;
    Financial Highlights for the five fiscal years ended
    December&#160;31, 2005; all other schedules are omitted because
    the information is included elsewhere in the Prospectus or SAI
    or is not required.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (2)&#160;Exhibits
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="6%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="92%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
    <FONT style="font-size: 10pt">(a)
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    <FONT style="font-size: 10pt">&#150;&#160;Amended and Restated
    Articles of Incorporation. (Incorporated by reference to
    Exhibit&#160;(1) of the Registrant&#146;s Amendment No.&#160;2
    to the Registrant&#146;s Registration Statement (Filed on
    September&#160;22, 1988, Securities Act File
    <FONT style="white-space: nowrap">No.&#160;33-23252;</FONT>
    Investment Company Act File No.&#160;811-5620)
    (&#145;&#145;Amendment No.&#160;2&#148;))
    </FONT>
</DIV>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
    <FONT style="font-size: 10pt">(b)
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    <FONT style="font-size: 10pt">&#150;&#160;Amended and Restated
    By-Laws (Incorporated by reference to Exhibit 99.77Q1 to the
    Registrant&#146;s
    <FONT style="white-space: nowrap">N-SAR-A</FONT> for
    the period ending June&#160;30, 2004.)
    </FONT>
</DIV>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
    <FONT style="font-size: 10pt">(c)
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    <FONT style="font-size: 10pt">&#150;&#160;Not applicable.
    </FONT>
</DIV>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
    <FONT style="font-size: 10pt">(d)(1)
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    <FONT style="font-size: 10pt">&#150;&#160;Form of Subscription
    Certificate.*
    </FONT>
</DIV>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
    <FONT style="font-size: 10pt">(d)(2)
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    <FONT style="font-size: 10pt">&#150;&#160;Form of Notice of
    Guaranteed Delivery.*
    </FONT>
</DIV>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
    <FONT style="font-size: 10pt">(d)(3)
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    <FONT style="font-size: 10pt">&#150;&#160;Form of Nominee Holder
    Over-Subscription Exercise Form.*
    </FONT>
</DIV>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
    <FONT style="font-size: 10pt">(e)
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    <FONT style="font-size: 10pt">&#150;&#160;Distribution
    Reinvestment and Cash Purchase Plan.**
    </FONT>
</DIV>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
    <FONT style="font-size: 10pt">(f)
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    <FONT style="font-size: 10pt">&#150;&#160;Not applicable.
    </FONT>
</DIV>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
    <FONT style="font-size: 10pt">(g)(1)
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    <FONT style="font-size: 10pt">&#150;&#160;Investment Advisory
    Agreement with Zweig Total Return Advisors, Inc. dated
    March&#160;1, 1999. (Incorporated by reference to Exhibit&#160;A
    to the Registrant&#146;s Proxy Statement dated January&#160;19,
    1999.)
    </FONT>
</DIV>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
    <FONT style="font-size: 10pt">(g)(2)
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    <FONT style="font-size: 10pt">&#150;&#160;Amended and Restated
    Servicing Agreement by and among Phoenix/Zweig Advisers LLC  and
    Zweig Consulting LLC dated March&#160;2, 2004. (Incorporated by
    reference to Exhibit&#160;99.77Q2 to the Registrant&#146;s
    <FONT style="white-space: nowrap">N-SAR-A</FONT> for
    the period ending June&#160;30, 2004.)
    </FONT>
</DIV>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
    <FONT style="font-size: 10pt">(h)
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    <FONT style="font-size: 10pt">&#150;&#160;Not applicable.
    </FONT>
</DIV>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
    <FONT style="font-size: 10pt">(i)
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    <FONT style="font-size: 10pt">&#150;&#160;Not applicable.<BR>
    </FONT>
</DIV>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
    <FONT style="font-size: 10pt">(j)
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    <FONT style="font-size: 10pt">&#150;&#160;Custodian Contract
    with State Street Bank and Trust Company dated as of May&#160;1,
    1997.**
    </FONT>
</DIV>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
    <FONT style="font-size: 10pt">(k)(1)
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    <FONT style="font-size: 10pt">&#150;&#160;Administration
    Agreement with Zweig/Glaser Advisers dated as of March&#160;1,
    1999.**
    </FONT>
</DIV>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
    <FONT style="font-size: 10pt">(k)(2)
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    <FONT style="font-size: 10pt">&#150;&#160;Assignment of
    Administration Agreement by Zweig/Glaser Advisers to Phoenix
    Equity Planning Corporation effective as of October&#160;31,
    1999.**
    </FONT>
</DIV>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
    <FONT style="font-size: 10pt">(k)(3)
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    <FONT style="font-size: 10pt">&#150;&#160;Letter Agreement,
    dated March&#160;1, 2006, between Registrant and Phoenix Equity
    Planning Corporation with respect to the Administration
    Agreement.**
    </FONT>
</DIV>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
    <FONT style="font-size: 10pt">(k)(4)
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    <FONT style="font-size: 10pt">&#150;&#160;Stock Transfer Agent
    Service Agreement with Computershare Trust Company, N.A.
    (formerly EquiServe Trust Company, N.A.) dated as of
    September&#160;1, 2001.*
    </FONT>
</DIV>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
    <FONT style="font-size: 10pt">(k)(5)
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    <FONT style="font-size: 10pt">&#150;&#160;Form of Subscription
    Agent Agreement between the Registrant and Computershare Trust
    Company, N.A.*
    </FONT>
</DIV>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
    <FONT style="font-size: 10pt">(k)(6)
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    <FONT style="font-size: 10pt">&#150;&#160;Form of Information
    Agent Agreement between the Registrant
    and&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;.*
    </FONT>
</DIV>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
    <FONT style="font-size: 10pt">(l)
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    <FONT style="font-size: 10pt">&#150;&#160;Opinion and Consent of
    Katten Muchin Rosenman LLP.*
    </FONT>
</DIV>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
    <FONT style="font-size: 10pt">(m)
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    <FONT style="font-size: 10pt">&#150;&#160;Not applicable.
    </FONT>
</DIV>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
    <FONT style="font-size: 10pt">(n)
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    <FONT style="font-size: 10pt">&#150;&#160;Consent of
    PricewaterhouseCoopers LLP.*
    </FONT>
</DIV>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
    <FONT style="font-size: 10pt">(o)
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    <FONT style="font-size: 10pt">&#150;&#160;Not applicable.
    </FONT>
</DIV>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
    <FONT style="font-size: 10pt">(p)
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    <FONT style="font-size: 10pt">&#150;&#160;Not applicable.
    </FONT>
</DIV>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
    <FONT style="font-size: 10pt">(q)
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    <FONT style="font-size: 10pt">&#150;&#160;Not applicable.
    </FONT>
</DIV>
</TD>
</TR>
</TABLE>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    C-1
</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="6%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="92%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">(r)(1)
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    <FONT style="font-size: 10pt">&#150;&#160;Code of Ethics of the
    Registrant.**
    </FONT>
</DIV>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">(r)(2)
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    <FONT style="font-size: 10pt">&#150;&#160;Code of Ethics of
    Phoenix/Zweig Advisers LLC.**
    </FONT>
</DIV>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">(r)(3)
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    <FONT style="font-size: 10pt">&#150;&#160;Code of Ethics of
    Zweig Consulting LLC.**
    </FONT>
</DIV>
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 1pt; margin-left: 0%; width: 13%; align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=999 iwidth=455 length=60 -->

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<TR>
    <TD width="4%"></TD>
    <TD width="1%"></TD>
    <TD width="95%"></TD>
</TR>

<TR>
    <TD align="right" valign="top">
    *&#160;</TD>
    <TD></TD>
    <TD valign="bottom">
    To be Filed by Amendment</TD>
</TR>

<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    ** </TD>
    <TD></TD>
    <TD valign="bottom">
    Filed herewith</TD>
</TR>

</TABLE>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Item&#160;26.&#160;&#160;<I>Marketing
    Arrangements</I></FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Not applicable.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Item&#160;27.&#160;&#160;<I>Other
    Expenses of Issuance and Distribution</I></FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The following table sets forth the estimated expenses expected
    to be incurred in connection with the offering described in this
    Registration Statement:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="78%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="18%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>CATEGORY</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>ESTIMATED EXPENSES*</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Legal Fees
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Transfer Agent
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Postage Fees
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Listing&#160;&#38; Registration
    Fees
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Printing Fees
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Audit Fees
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">

</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 1pt; margin-left: 0%; width: 13%; align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=999 iwidth=455 length=60 -->

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<TR>
    <TD width="4%"></TD>
    <TD width="1%"></TD>
    <TD width="95%"></TD>
</TR>

<TR>
    <TD align="right" valign="top">
    *&#160;</TD>
    <TD></TD>
    <TD valign="bottom">
    This information will be given by amendment, and may be subject
    to future contingencies.</TD>
</TR>

</TABLE>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="9%"></TD>
    <TD width="91%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Item&#160;28.&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><I><FONT style="font-family: 'Times New Roman', Times">Persons
    Controlled by or Under Common Control with
    Registrant</FONT></I></B>
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    None.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="9%"></TD>
    <TD width="91%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Item&#160;29.&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><I><FONT style="font-family: 'Times New Roman', Times">Number
    of Holders of Securities as
    of&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;,
    2006</FONT></I></B>
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="78%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="18%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Title of Class</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Number of Record Holders</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Common Stock, par value
    $0.001&#160;per share
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="9%"></TD>
    <TD width="91%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Item&#160;30.&#160;&#160;</FONT></B>
</TD>
    <TD>
    <B><I><FONT style="font-family: 'Times New Roman', Times">Indemnification</FONT></I></B>
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Under Article&#160;VII, of the Registrant&#146; Articles of
    Incorporation and Article&#160;V, Section&#160;1, of the
    Registrant&#146;s
    <FONT style="white-space: nowrap">By-Laws,</FONT> any
    past or present director or officer of the Registrant will be
    indemnified, and will be advanced expenses, to the fullest
    extent permitted by Maryland law, but not in violation of
    Section&#160;17(h) or 17(i) of the Investment Company Act of
    1940, as amended.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    As permitted by
    <FONT style="white-space: nowrap">Section&#160;2-418(k)</FONT>
    of the Maryland General Corporation Law, Article&#160;V,
    Section&#160;6, of the Registrant&#146;s
    <FONT style="white-space: nowrap">By-Laws</FONT>
    provides that the Registrant shall have the power to purchase
    and maintain insurance on behalf of any person who is or was a
    director, officer, employee or agent of the Registrant or who,
    while a director, officer, employee or agent of the Registrant,
    is or was serving at the request of the Registrant as a
    director, officer, partner, trustee, employee or agent of
    another corporation, partnership, joint venture, trust,
    enterprise or employee benefit plan, against any liability
    asserted against and incurred by him or her in any such
    capacity, or arising out of his or her status as such, provided
    that, pursuant to the
    <FONT style="white-space: nowrap">By-Laws</FONT> no
    insurance may be obtained by the Registrant for liabilities
    against which it would not have the power to indemnify him or
    her under the Article of the
    <FONT style="white-space: nowrap">By-Laws</FONT>
    regarding indemnification or applicable law.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    C-2
</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Item&#160;31.&#160;&#160;<I>Business
    and Other Connections of Investment Adviser and
    <FONT style="white-space: nowrap">Sub-Adviser</FONT></I></FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    For information regarding Dr.&#160;Martin E. Zweig, George R.
    Aylward, Carlton Neel, David Dickerson, and Marc Baltuch see
    &#147;Management&#160;&#151; Directors and Officers&#148; in the
    SAI, which is incorporated herein by reference.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    John H. Beers is the Vice President and Secretary of
    Phoenix/Zweig Advisers, LLC since&#160;2002. He also serves as
    Vice&#160;President and Litigation and Governance Counsel, and
    Assistant Secretary, of The Phoenix Companies, Inc. and its
    subsidiary Phoenix Life Insurance Company. In addition he serves
    the following subsidiaries of The Phoenix Companies, Inc. in the
    capacities indicated: A.F.J.P. Prorenta, S.A. (Alternate
    Director); AGL&#160;Life Assurance Company (Vice&#160;President
    and Assistant Secretary); American Phoenix Life and Reassurance
    Company (Vice President and Secretary); BOA
    Properties,&#160;Inc. (Vice&#160;President and Secretary); DPCM
    Holding, Inc. (Vice&#160;President and Secretary);
    Duff&#160;&#38; Phelps Investment Management Company
    (Vice&#160;President and Secretary); Emprendimiento Compartido,
    S.A. (Alternate Director); Engemann Asset Management
    (Vice&#160;President and Secretary); Euclid Advisers, LLC (Vice
    President and Secretary); Pasadena Capital Corporation (Vice
    President and Secretary); PFG Distribution Company (Vice
    President and Assistant Secretary); PFG Holdings, Inc. (Vice
    President and Assistant Secretary); Philadelphia Financial
    Group, Inc. (Vice President and Assistant Secretary); PHL
    Variable Insurance Company (Vice President and Secretary);
    Phoenix Distribution Holding Company (Vice President and
    Secretary); Phoenix Equity Planning Corporation (Vice President
    and Secretary); Phoenix Founders, Inc. (Vice President and
    Secretary); Phoenix Global Solutions, Inc. (Director/Vice
    President and Secretary); Phoenix International Capital
    Corporation (Vice&#160;President and Secretary); Phoenix
    Investment Counsel, Inc. (Vice&#160;President and Clerk);
    Phoenix Investment Management Company (Vice&#160;President and
    Secretary); Phoenix Investment Partners, Ltd.
    (Vice&#160;President and Secretary); Phoenix Life and Annuity
    Company (Vice President and Secretary); Phoenix Life and
    Reassurance Company of New York (Vice President and Secretary);
    Phoenix National Trust&#160;Holding Company (Vice President and
    Secretary); Phoenix New England Trust&#160;Holding Company (Vice
    President and Secretary); Phoenix Realty Equity Investments,
    Inc. (Vice President and Secretary); Phoenix Realty Investors,
    Inc. (Vice President and Secretary); Phoenix Variable Advisors,
    Inc. (Vice President and Secretary); PM&#160;Holdings, Inc.
    (Vice&#160;President and Secretary); Practicare, Inc.
    (Vice&#160;President and Secretary); PXP Institutional Markets
    Group, Ltd. (Vice&#160;President and Secretary); PXP
    International, Ltd. (Director); PXP Securities Corp. (Vice
    President and Secretary); Rutherford Financial Corporation (Vice
    President and Secretary); Rutherford, Brown&#160;&#38;
    Catherwood, LLC (Vice President and Secretary); Seneca Capital
    Management LLC (Vice&#160;President and Secretary); The Phoenix
    Edge Series&#160;Fund (Assistant Secretary); Walnut Asset
    Management, LLC (Vice&#160;President and Secretary); WS Griffith
    Advisors, Inc. (Vice&#160;President and Secretary); and WS
    Griffith Securities, Inc. (Vice&#160;President and Secretary).
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Glenn H. Pease has been the Vice President and Treasurer of
    Phoenix/Zweig Advisers, LLC since 2002. He is currently Vice
    President, Finance, Phoenix Investment Partners, Ltd.; Vice
    President, Finance, Phoenix Investment Counsel, Inc.; Vice
    President, Finance PXP Institutional Markets Group, Ltd.; Vice
    President, Chief Financial Officer and Treasurer, PXP Securities
    Corp.; Vice President and Treasurer, Seneca Capital Management,
    LLC; Vice President, Finance and Treasurer, Duff&#160;&#38;
    Phelps Investment Management Co.; Vice President and Chief
    Financial Officer, Engemann Asset Management; Vice President,
    Finance and Treasurer, Rutherford Financial Corporation; Vice
    President, Finance and Treasurer, Euclid Advisors, LLC; Vice
    President, Finance and Treasurer, Phoenix Equity Planning
    Corporation, all affiliates of the Investment Adviser.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Item&#160;32.&#160;&#160;<I>Location
    of Accounts and Records</I></FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Corporate records of the Registrant and records relating to
    the function of Phoenix/Zweig Advisers LLC as Investment Adviser
    to the Registrant</I>:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Phoenix/Zweig Advisers LLC
</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    900 Third Avenue
</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    New York, NY 10022
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    C-3
</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Records relating to its function as Administrator to the
    Registrant</I>:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Phoenix Equity Planning Corporation
</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    One American Row
</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Hartford, CT 06102
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Records relating to its function as the Registrant&#146;s
    Dividend Paying Agent, Distribution Reinvestment and Cash
    Purchase Plan Agent, Transfer Agent and Registrar</I>:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Computershare Trust Company, N.A.
</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    P.O. Box&#160;43010
</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Providence, RI
    <FONT style="white-space: nowrap">02940-3010</FONT>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Records relating to its function as Custodian of the
    Registrant</I>:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    State Street Bank and Trust Company
</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    P.O. Box&#160;5501
</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Boston, MA
    <FONT style="white-space: nowrap">02206-5501</FONT>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Item&#160;33.&#160;&#160;<I>Management
    Services</I></FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Not applicable.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Item&#160;34.&#160;&#160;<I>Undertakings</I></FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (a)&#160;Registrant undertakes to suspend offering of the shares
    covered hereby until it amends its Prospectus contained herein
    if (1)&#160;subsequent to the effective date of this
    Registration Statement, its net asset value per share declines
    more than ten percent from its net asset value per share as of
    the effective date of this Registration Statement, or
    (2)&#160;its net asset value per share increases to an amount
    greater than its net proceeds as stated in the Prospectus
    contained herein.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (b)&#160;Registrant undertakes that:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (1)&#160;For purposes of determining any liability under the
    Securities Act of 1933, the information omitted from the form of
    prospectus filed as part of this registration statement in
    reliance upon Rule&#160;430A and contained in form of prospectus
    filed by the Registrant pursuant to 497(h) under the Securities
    Act shall be deemed to be part of this registration statement as
    of the time it was declared effective.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (2)&#160;For the purpose of determining any liability under the
    Securities Act of 1933, each post-effective amendment that
    contains a form of prospectus shall be deemed to be a new
    registration statement relating to the securities offered
    therein, and the offering of such securities at that time shall
    be deemed to be the initial bona fide offering thereof.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (c)&#160;The Registrant undertakes to send by first class mail
    or other means designed to ensure equally prompt delivery,
    within two business days of receipt of a written or oral
    request, any Statement of Additional Information.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    C-4
</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">SIGNATURES</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Pursuant to the requirements of the Securities Act of 1933 and
    the Investment Company Act of 1940, the Registrant has duly
    caused this Registration Statement to be signed on its behalf by
    the undersigned, thereunto duly authorized, in the City of New
    York and State of New York on the 21st&#160;day of December,
    2006.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    THE ZWEIG TOTAL RETURN FUND, INC.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="30%"></TD>
    <TD width="70%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>    By:&#160;</TD>
    <TD align="left">
    <DIV style="display:inline; text-align:left;">/s/&#160;&#160;<FONT style="font-variant: SMALL-CAPS">George
    R. Aylward</FONT></DIV>
</TD>
</TR>

</TABLE>

<DIV style="font-size: 2pt; margin-left: 30%; width: 39%; align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=999 iwidth=455 length=180 -->

<DIV align="left" style="margin-left: 30%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    George R. Aylward
</DIV>

<DIV align="left" style="margin-left: 30%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>President</I>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Pursuant to the requirements of the Securities Act of 1933, this
    registration statement has been signed by the following persons
    in the capacities and on the dates indicated:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="44%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="8%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="23%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
    <TD width="8%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="17%">&nbsp;</TD>	<!-- colindex=03 type=maindata -->
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>SIGNATURE</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>TITLE</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>DATE</B>
</DIV>
</TD>
</TR>
<TR style="line-height: 12pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom" style="line-height: 12pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="center" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <DIV style="display:inline; text-align:center; width:90%"><FONT style="font-size: 10pt">/s/&#160;&#160;<FONT style="font-variant: SMALL-CAPS">George
    R. Aylward</FONT></FONT></DIV><FONT style="font-size: 10pt"><BR>
    <DIV style="font-size: 2pt; margin-left: 0%; width: 100%;border-bottom: 1pt solid #000000"></DIV><DIV style="text-indent:0pt"><!-- callerid=208 iwidth=180 length=0 --></DIV>
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    <FONT style="font-size: 10pt">Director, Chairman of the <BR>
    Board and President
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    <FONT style="font-size: 10pt">December&#160;21, 2006
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD align="center" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">George R. Aylward
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="line-height: 12pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="center" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <DIV style="display:inline; text-align:center; width:90%"><FONT style="font-size: 10pt">/s/&#160;&#160;<FONT style="font-variant: SMALL-CAPS">Charles
    H. Brunie</FONT></FONT></DIV><FONT style="font-size: 10pt"><BR>
    <DIV style="font-size: 2pt; margin-left: 0%; width: 100%;border-bottom: 1pt solid #000000"></DIV><DIV style="text-indent:0pt"><!-- callerid=208 iwidth=180 length=0 --></DIV>
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    <FONT style="font-size: 10pt">Director
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    <FONT style="font-size: 10pt">December&#160;21, 2006
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD align="center" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Charles H. Brunie
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="line-height: 12pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="center" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <DIV style="display:inline; text-align:center; width:90%"><FONT style="font-size: 10pt">/s/&#160;&#160;<FONT style="font-variant: SMALL-CAPS">Wendy
    Luscombe</FONT></FONT></DIV><FONT style="font-size: 10pt"><BR>
    <DIV style="font-size: 2pt; margin-left: 0%; width: 100%;border-bottom: 1pt solid #000000"></DIV><DIV style="text-indent:0pt"><!-- callerid=208 iwidth=180 length=0 --></DIV>
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    <FONT style="font-size: 10pt">Director
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    <FONT style="font-size: 10pt">December&#160;21, 2006
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="center" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Wendy Luscombe
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="line-height: 12pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="center" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <DIV style="display:inline; text-align:center; width:90%"><FONT style="font-size: 10pt">/s/&#160;&#160;<FONT style="font-variant: SMALL-CAPS">Alden
    C. Olson</FONT></FONT></DIV><FONT style="font-size: 10pt"><BR>
    <DIV style="font-size: 2pt; margin-left: 0%; width: 100%;border-bottom: 1pt solid #000000"></DIV><DIV style="text-indent:0pt"><!-- callerid=208 iwidth=180 length=0 --></DIV>
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    <FONT style="font-size: 10pt">Director
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    <FONT style="font-size: 10pt">December&#160;21, 2006
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD align="center" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">Alden C. Olson
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="line-height: 12pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="center" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <DIV style="display:inline; text-align:center; width:90%"><FONT style="font-size: 10pt">/s/&#160;&#160;<FONT style="font-variant: SMALL-CAPS">James
    B.
    Rogers,&#160;Jr.</FONT></FONT></DIV><FONT style="font-size: 10pt"><BR>
    <DIV style="font-size: 2pt; margin-left: 0%; width: 100%;border-bottom: 1pt solid #000000"></DIV><DIV style="text-indent:0pt"><!-- callerid=208 iwidth=180 length=0 --></DIV>
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    <FONT style="font-size: 10pt">Director
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    <FONT style="font-size: 10pt">December&#160;21, 2006
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD align="center" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">James B. Rogers,&#160;Jr.
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="line-height: 12pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="center" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <DIV style="display:inline; text-align:center; width:90%"><FONT style="font-size: 10pt">/s/&#160;&#160;<FONT style="font-variant: SMALL-CAPS">R.
    Keith
    Walton</FONT></FONT></DIV><FONT style="font-size: 10pt"><BR>
    <DIV style="font-size: 2pt; margin-left: 0%; width: 100%;border-bottom: 1pt solid #000000"></DIV><DIV style="text-indent:0pt"><!-- callerid=208 iwidth=180 length=0 --></DIV>
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    <FONT style="font-size: 10pt">Director
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    <FONT style="font-size: 10pt">December&#160;21, 2006
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD align="center" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">R. Keith Walton
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    C-5
</DIV><!-- END LOGICAL PAGE -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN LOGICAL PAGE -->

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">EXHIBIT&#160;INDEX</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
<!-- Table Width Row -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="6%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="92%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">(a)
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    <FONT style="font-size: 10pt">&#150;&#160;Amended and Restated
    Articles of Incorporation. (Incorporated by reference to
    Exhibit&#160;(1) of the Registrant&#146;s Amendment No.&#160;2
    to the Registrant&#146;s Registration Statement (Filed on
    September&#160;22, 1988, Securities Act File
    <FONT style="white-space: nowrap">No.&#160;33-23252;</FONT>
    Investment Company Act File No.&#160;811-5620)
    (&#145;&#145;Amendment No.&#160;2&#148;))
    </FONT>
</DIV>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">(b)
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    <FONT style="font-size: 10pt">&#150;&#160;Amended and Restated
    By-Laws (Incorporated by reference to Exhibit 99.77Q1 to the
    Registrant&#146;s
    <FONT style="white-space: nowrap">N-SAR-A</FONT> for
    the period ending June&#160;30, 2004.)
    </FONT>
</DIV>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">(c)
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    <FONT style="font-size: 10pt">&#150;&#160;Not applicable.
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">(d)(1)
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    <FONT style="font-size: 10pt">&#150;&#160;Form of Subscription
    Certificate.*
    </FONT>
</DIV>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">(d)(2)
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    <FONT style="font-size: 10pt">&#150;&#160;Form of Notice of
    Guaranteed Delivery.*
    </FONT>
</DIV>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">(d)(3)
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    <FONT style="font-size: 10pt">&#150;&#160;Form of Nominee Holder
    Over-Subscription Exercise Form.*
    </FONT>
</DIV>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">(e)
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    <FONT style="font-size: 10pt">&#150;&#160;Distribution
    Reinvestment and Cash Purchase Plan.**
    </FONT>
</DIV>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">(f)
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    <FONT style="font-size: 10pt">&#150;&#160;Not applicable.
    </FONT>
</DIV>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">(g)(1)
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    <FONT style="font-size: 10pt">&#150;&#160;Investment Advisory
    Agreement with Zweig Total Return Advisors, Inc. dated
    March&#160;1, 1999. (Incorporated by reference to Exhibit&#160;A
    to the Registrant&#146;s Proxy Statement dated January&#160;19,
    1999.)
    </FONT>
</DIV>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">(g)(2)
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    <FONT style="font-size: 10pt">&#150;&#160;Amended and Restated
    Servicing Agreement by and among Phoenix/Zweig Advisers LLC  and
    Zweig Consulting LLC dated March&#160;2, 2004. (Incorporated by
    reference to Exhibit&#160;99.77Q2 to the Registrant&#146;s
    N-SAR-A for the period ending June&#160;30, 2004.)
    </FONT>
</DIV>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">(h)
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    <FONT style="font-size: 10pt">&#150;&#160;Not applicable.
    </FONT>
</DIV>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">(i)
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    <FONT style="font-size: 10pt">&#150;&#160;Not applicable.
    </FONT>
</DIV>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">(j)
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    <FONT style="font-size: 10pt">&#150;&#160;Custodian Contract
    with State Street Bank and Trust Company dated as of May&#160;1,
    1997.**
    </FONT>
</DIV>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">(k)(1)
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    <FONT style="font-size: 10pt">&#150;&#160;Administration
    Agreement with Zweig/Glaser Advisers dated as of March&#160;1,
    1999.**
    </FONT>
</DIV>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">(k)(2)
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    <FONT style="font-size: 10pt">&#150;&#160;Assignment of
    Administration Agreement by Zweig/Glaser Advisers to Phoenix
    Equity Planning Corporation effective as of October&#160;31,
    1999.**
    </FONT>
</DIV>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">(k)(3)
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    <FONT style="font-size: 10pt">&#150;&#160;Letter Agreement,
    dated March&#160;1, 2006, between Registrant and Phoenix Equity
    Planning Corporation with respect to the Administration
    Agreement.**
    </FONT>
</DIV>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">(k)(4)
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    <FONT style="font-size: 10pt">&#150;&#160;Stock Transfer Agent
    Service Agreement with Computershare Trust Company, N.A.
    (formerly EquiServe Trust Company, N.A.) dated as of
    September&#160;1, 2001.*
    </FONT>
</DIV>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">(k)(5)
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    <FONT style="font-size: 10pt">&#150;&#160;Form of Subscription
    Agent Agreement between the Registrant and Computershare Trust
    Company, N.A.*
    </FONT>
</DIV>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">(k)(6)
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    <FONT style="font-size: 10pt">&#150;&#160;Form of Information
    Agent Agreement between the Registrant
    and&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;.*
    </FONT>
</DIV>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">(l)
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    <FONT style="font-size: 10pt">&#150;&#160;Opinion and Consent of
    Katten Muchin Rosenman LLP.*
    </FONT>
</DIV>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">(m)
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    <FONT style="font-size: 10pt">&#150;&#160;Not applicable.
    </FONT>
</DIV>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">(n)
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    <FONT style="font-size: 10pt">&#150;&#160;Consent of
    PricewaterhouseCoopers LLP.*
    </FONT>
</DIV>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">(o)
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    <FONT style="font-size: 10pt">&#150;&#160;Not applicable.
    </FONT>
</DIV>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">(p)
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    <FONT style="font-size: 10pt">&#150;&#160;Not applicable.
    </FONT>
</DIV>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">(q)
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    <FONT style="font-size: 10pt">&#150;&#160;Not applicable.
    </FONT>
</DIV>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">(r)(1)
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    <FONT style="font-size: 10pt">&#150;&#160;Code of Ethics of the
    Registrant.**
    </FONT>
</DIV>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">(r)(2)
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    <FONT style="font-size: 10pt">&#150;&#160;Code of Ethics of
    Phoenix/Zweig Advisers LLC.**
    </FONT>
</DIV>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="font-size: 10pt">(r)(3)
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    <FONT style="font-size: 10pt">&#150;&#160;Code of Ethics of
    Zweig Consulting LLC.**
    </FONT>
</DIV>
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 1pt; margin-left: 0%; width: 13%; align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=999 iwidth=455 length=60 -->

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

<TR>
    <TD width="4%"></TD>
    <TD width="1%"></TD>
    <TD width="95%"></TD>
</TR>

<TR>
    <TD align="right" valign="top">
    *&#160;</TD>
    <TD></TD>
    <TD valign="bottom">
    To be Filed by Amendment</TD>
</TR>

<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    ** </TD>
    <TD></TD>
    <TD valign="bottom">
    Filed herewith</TD>
</TR>

</TABLE>

<P align="left" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">

</DIV><!-- END LOGICAL PAGE -->
</BODY>
</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.E
<SEQUENCE>2
<FILENAME>y28007exv99we.htm
<DESCRIPTION>EX-99.E: DISTRIBUTION REINVESTMENT AND CASH PURCHASE PLAN
<TEXT>
<HTML>
<HEAD>
<TITLE>EX-99.E</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="right" style="font-size: 10pt; margin-top: 12pt">Exhibit E
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>THE ZWEIG FUND, INC.<BR>
AND THE ZWEIG TOTAL RETURN FUND,<BR>
INC.</B>
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>TERMS AND CONDITIONS OF THE<BR>
AUTOMATIC REINVESTMENT AND CASH PURCHASE<BR>
PLAN</B>

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">1.&nbsp;Each holder of shares (a &#147;Shareholder&#148;) of common stock in The Zweig Fund, Inc. and The Zweig
Total Return Fund, Inc. (the &#147;Fund&#148;) whose Fund shares are registered in his or her own name will
automatically be a participant (&#147;Participant&#148;) in the Automatic Reinvestment and Cash Purchase Plan
(the &#147;Plan&#148;). Shareholders should note that ANY request to update the registration of an existing
shareowner account (e.g., adding or removing a Joint Tenant), may result in the establishment of a
new account. If a Shareholder requests to make a change to the registration on his or her current
account, he or she should specify if the dividends should be reinvested or paid in cash. If neither
is mentioned in the request, the new account will automatically be enrolled in the Plan. A
Shareholder whose shares are registered in the name of a broker-dealer or other nominee (the
&#147;Nominee&#148;) will be a Participant if (a)&nbsp;such a service is provided by the Nominee and (b)&nbsp;the
Nominee makes such an election on behalf of the Shareholder to participate in the Plan.
Computershare Trust Company, N.A., with Computershare Shareholder Services, Inc. acting as service
agent for Computershare Trust Company, N.A., (the &#147;Administrator&#148; or &#147;Plan Administrator&#148;) will act
as agent for Participants and will open an account under the Plan for each Participant in the same
name as such Participant&#146;s common stock is registered on the books and records of the transfer
agent for the common stock.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">2.&nbsp;Whenever the Fund declares a distribution payable in shares of common stock or cash,
Participants will receive such distribution in the manner described in paragraph 3 below as
determined on the record date for such distribution.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">3.&nbsp;Whenever the market price of the Fund&#146;s common stock is equal to or exceeds net asset value per
share, Participants will be issued shares of common stock valued at the greater of (i)&nbsp;the net
asset value per share on the record date or (ii)&nbsp;95% of the market price on the record date.
Participants will receive any such distribution entirely in shares of common stock, and the
Administrator shall automatically receive such shares of common stock, including fractions, for all
Participants&#146; accounts. If net asset value per share of the common stock at the time of valuation
exceeds the market price of the common stock at such time, or if the Fund should declare a
distribution payable only in cash, the Administrator will, as purchasing agent for the
Participants, buy shares of common stock in the open market, on the New York Stock Exchange (the
&#147;Exchange&#148;) or elsewhere, for each Participant&#146;s account. The purchase price per share will be
equal to the weighted average price of all shares purchased, including commissions. If, following
the commencement of such purchases and before the Plan Administrator has completed its purchases,
the trading price equals or exceeds the most recent net asset value of the shares of common stock,
the Plan Administrator may cease purchasing shares on the open market and the Fund may issue the
remaining shares at a price equal to the greater of (a)&nbsp;the net asset value on the last day the
Plan Administrator purchased shares or (b)&nbsp;95% of the market price on such day. In the case where
the Plan Administrator has terminated open market purchases and the Fund has issued the remaining
shares, the number of shares received by the Participant in respect of the cash dividend or
distribution will be based on the weighted average of prices paid for shares purchased in the open
market and the price at which the Fund issued the remaining shares.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">If the record date for a distribution precedes the ex-date for such distribution (which generally
occurs in connection with the Fund&#146;s final distribution for the calendar year), the determination
of whether new Shares will be issued by the Fund or whether the Administrator will buy Fund shares
in the open market will be made on the basis of the closing market price and the net asset value
for the shares of the Fund&#146;s common stock on the ex-date for such distribution. In such case, the
ex-date will also be the valuation date.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Administrator will apply all cash received as a distribution to purchase shares of common stock
on the open market as soon as practicable after the record date of such distribution, but in no
event later than 30&nbsp;days after such date, except where necessary to comply with the applicable
provisions of the federal securities law.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">4.&nbsp;For all purposes of the Plan: (a)&nbsp;the market price of the Fund&#146;s common stock on a particular
date shall be the last sale price on the Exchange at the close of the trading day or, if there is
no sale on the Exchange on that date, then the mean between the closing bid and asked quotations
for such stock on the Exchange on such date and (b)&nbsp;net asset value per share of common stock on a
particular date shall be as determined by or on behalf of the Fund.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">5.&nbsp;Participants in the Plan may make additional cash payments of at least $100 per payment but not
more than $3,000 per month for investment in the Fund. Such voluntary cash payments received by the
Administrator either by check, automatic monthly investment or by any other means the Plan
Administrator accepts, will be applied by the Administrator to purchase additional Shares on the
open market on or about the investment date following the Administrator&#146;s receipt of the voluntary
cash payment provided the Administrator receives the cash payment at least 2 business days prior to
such investment date. The investment date will be the 15th day of each month or the next business
day if the 15th falls on a weekend or a holiday (the &#147;Investment Date&#148;). The purchase price per
share will be equal to the weighted average price of all shares purchased on the applicable
Investment Date, including commissions. Participants have an unconditional right to obtain the
return of any voluntary cash payments if the Administrator receives written notice at least 5
business days prior to the applicable investment date.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">In the event that any cash payment is received or processed too late to be applied toward a
purchase for the current month&#146;s Investment Date, it will be held by the Plan Administrator and
applied to a purchase for the next month&#146;s Investment Date.
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Participants will not receive interest on voluntary cash payments held by the Administrator pending
investment. All cash payments must be drawn against a United States bank and payable in United
States funds. Cash and third party checks are not accepted. In the event that any deposit is
returned unpaid for any reason, the Administrator will consider the request for investment of such
money null and void and shall immediately remove from the Participant&#146;s account shares, if any,
purchased upon the prior credit of such money. The Administrator shall thereupon be entitled to
sell these shares to satisfy any uncollected amounts. If the net proceeds of the sale of such
shares are insufficient to satisfy the balance of the uncollected amount, the Administrator shall
be entitled to sell additional shares from the Participant&#146;s account to satisfy the uncollected
balance. In addition, a $25 returned funds fee will be applied to the Participant&#146;s account at the
discretion of the Plan Administrator.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">6.&nbsp;The open market purchases provided for above may be made on any securities exchange where the
shares of common stock of the Fund are traded, in the over-the-counter market or in negotiated
transactions, and may be on such terms as to price, delivery and otherwise as the Administrator
shall determine. Funds held by the Administrator uninvested will not bear interest, and it is
understood that, in any event, the Administrator shall have no liability in connection with any
inability to purchase shares of common stock within 30&nbsp;days after the initial date of such purchase
as herein provided, or with the timing of any purchases effected. The Administrator shall have no
responsibility as to the value of the shares of common stock of the Fund acquired for any
Participant&#146;s account.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">7.&nbsp;The Administrator will hold shares of common stock acquired pursuant to the Plan in book-entry
(non-certificated) form in the Administrator&#146;s name or that of its Nominee. The Administrator will
forward to each Participant any proxy solicitation material and will vote any shares of common
stock so held for each Participant only in accordance with the proxy returned by any such
Participant to the Fund. Upon any Participant&#146;s request, the Administrator will deliver to her or
him, without charge, a certificate or certificates for the full shares of common stock.
Certificates will be issued as soon as practical (generally, within 5 business days) after the Plan
Administrator receives the request. Upon any Participant&#146;s request, the Plan Administrator will
also sell a portion of his or her shares. Such sales will be processed as soon as practical
(generally, within 5 business days) after the Plan Administrator receives the request. Shareholders
may call 1-800-272-2700 to liquidate shares if the dollar value of a sale is expected to be $50,000
or less. If the dollar value is expected to exceed $50,000, the Participant must submit a written
request to the Plan Administrator. This limitation is set to protect Participants&#146; accounts against
unauthorized sales. In addition, the Administrator has the right to decline to process a sale by
telephone if it determines, in its sole discretion, that supporting legal documentation is
required. The sale price per share will be equal to the weighted average price of all shares sold
by the Plan Administrator on the applicable trading day, less brokerage commissions (currently
$0.02 per share, this cost is subject to change).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">8.&nbsp;The Administrator will confirm to each Participant acquisitions made for its account as soon as
practicable but not later than 60&nbsp;days after the date thereof. Although a Participant may from time
to time have an undivided fractional interest in a share of common stock of the Fund, no
certificates for a fractional share will be issued. However, distributions on fractional shares of
common stock will be credited to Participants&#146; accounts.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">9.&nbsp;Any stock dividends or split shares distributed by the Fund on shares of common stock held by
the Administrator for any Participant will be credited to such Participant&#146;s account. In the event
that the Fund makes available to Participants rights to purchase additional shares of common stock
or other securities, the number of rights will be based upon the Participant&#146;s total holdings,
including shares of common stock held by the Administrator.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">10.&nbsp;The Administrator&#146;s service fee for investing distributions will be paid by the Fund.
Participants will be charged a pro rata share of brokerage commissions (currently $0.02 per share,
this cost is subject to change) on all open market purchases.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">11.&nbsp;A shareholder wishing to terminate his or her participation may do so by notifying the Plan
Administrator of such intent. Such termination will be processed as soon as practical (generally,
within 5 business days) after receipt by the Plan Administrator provided such notice is received by
the Plan Administrator not less than 7 business days prior to any distribution payment date. If
such notice is received less than 7 business days prior to any distribution payment date,
termination requests may not be processed until shares to be received from the reinvestment of
distributions have been posted in such terminating shareholder&#146;s account. In such case, all shares
including the newly posted distribution reinvestment shares will then be sold or a certificate for
the appropriate number of full shares issued, along with a check in payment for any fraction of a
share, on the first trading day after such shares have been posted to such terminating
shareholder&#146;s account (generally, a few days after the payable date).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Plan may be terminated by the Fund or the Administrator with the Fund&#146;s prior written consent,
upon notice in writing mailed to each Participant. Upon any termination, the Administrator will
cause to be delivered to each Participant a certificate or certificates for the appropriate number
of full shares and a cash adjustment for any fractional share held for each such Participant under
the Plan. If the Participant prefers, he or she may request to sell all shares held by the Plan
Administrator in order to terminate participation in the Plan.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">12.&nbsp;These terms and conditions may be amended or supplemented by the Fund or the Administrator with
the Fund&#146;s prior written consent, at any time or times, except when necessary or appropriate to
comply with applicable law or the rules or policies of the Securities and Exchange Commission or
any other regulatory authority, only by mailing to each Participant appropriate written notice. The
amendment or supplement shall be deemed to be accepted by each Participant unless, with respect to
any such Participant, prior to the effective date thereof, the Administrator receives notice of the
termination of the Participant&#146;s account under the Plan. Any such amendment may include an
appointment by the Administrator in its place and stead of a successor Administrator under these
terms and conditions, with full power and authority to perform all or any of the acts to be
performed by the Administrator under these terms and conditions. Upon any such appointment of a
successor Administrator for the purpose of receiving distributions, the Fund will be
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">authorized to pay to such successor Administrator, for Participants&#146; accounts, all distributions
payable on the shares of common stock held in each Participant&#146;s name or under the Plan for
retention or application by such successor Administrator as provided in these terms and conditions.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">13.&nbsp;The Administrator shall at all times act in good faith and agree to use its best efforts within
reasonable limits to ensure the accuracy of all services performed under this Agreement to comply
with applicable law, but assumes no responsibility and shall not be liable for loss or damage due
to errors unless such error is caused by its or its employees&#146; negligence, bad faith or willful
misconduct.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">14.&nbsp;The Participant shall have no right to draw checks or drafts against such Participant&#146;s account
or to give instructions to the Plan Administrator in respect of any shares or cash held therein
except as expressly provided herein.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">15.&nbsp;The Participant agrees to notify the Plan Administrator promptly of any change of address.
Notices to the Participant may be given by the Administrator by letter addressed to the Participant
as shown on the records of the Administrator.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">16.&nbsp;This Agreement and the account established hereunder for the Participant shall be governed by
and construed in accordance with the laws of the Commonwealth of Massachusetts and the Rules and
Regulations of the Securities and Exchange Commission, as they may be changed or amended from time
to time.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">17.&nbsp;The Plan Administrator may use its affiliates and/or affiliates of the Fund&#146;s investment
adviser for all trading activity relative to the Plan on behalf of Plan Participants. Such
affiliates will receive a commission in connection with such trading transactions.
</DIV>

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</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">ZW-DRP 12/05
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
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<DOCUMENT>
<TYPE>EX-99.J
<SEQUENCE>3
<FILENAME>y28007exv99wj.htm
<DESCRIPTION>EX-99.J: CUSTODIAN CONTRACT
<TEXT>
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<HEAD>
<TITLE>EX-99.J</TITLE>
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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="right" style="font-size: 10pt; margin-top: 12pt">Exhibit&nbsp;J
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>CUSTODIAN CONTRACT<BR>
Between<BR>
EACH OF THE PARTIES LISTED ON APPENDIX 1<BR>
and<BR>
STATE STREET BANK AND TRUST COMPANY</B>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>TABLE OF CONTENTS</B>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="2%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="88%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000">Page</TD>

</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD>1.</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">Employment of Custodian and Property to be Held By It</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD>2.</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">Duties of the Custodian with Respect to Property of each Fund
Held by the Custodian in the United States</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">2.1</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Holding Securities</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">2.2</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Delivery of Securities</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">2.3</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Registration of Securities</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">2.4</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Bank Accounts</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">2.5</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Availability of Federal Funds</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">2.6</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Collection of Income</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">2.7</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Payment of Fund Moneys</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">2.8</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Liability for Payment in Advance of Receipt of Securities Purchased</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">2.9</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Appointment of Agents</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">2.10</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Deposit of Fund Assets in U.S. Securities System</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">2.11</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Fund Assets Held in the Custodian&#146;s Direct Paper System</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">2.12</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Segregated Account</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">2.13</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Ownership Certificates for Tax Purposes</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">2.14</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Proxies</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">2.15</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Communications Relating to Fund Securities</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD>3.</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">Duties of the Custodian with Respect to Property of each
Fund Held Outside of the United States</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">3.1</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Appointment of Foreign Sub-Custodians</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">3.2</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Assets to be Held</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">3.3</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Foreign Securities Systems</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">3.4</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Holding Securities</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">3.5</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Agreements with Foreign Banking Institutions</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">3.6</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Access of Independent Accountants of each Fund</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">3.7</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Reports by Custodian</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">3.8</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Transactions in Foreign Custody Account</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">3.9</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Liability of Foreign Sub-Custodians</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">3.10</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Liability of Custodian</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">3.11</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Reimbursement for Advances</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">3.12</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Monitoring Responsibilities</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">3.13</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Branches of U.S. Banks</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">3.14</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Tax Law</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD>4.</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">Payments for Sales or Repurchase or Redemptions of Shares of
each Fund</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD>5.</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">Proper Instructions</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="2%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="88%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="0%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="0%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 0px solid #000000"><U>Page</U></TD>

</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD>6.</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">Actions Permitted Without Express Authority</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">14</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD>7.</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">Evidence of Authority</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">14</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD>8.</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">Duties of Custodian With Respect to the Books of Account and Calculation
of Net Asset Value and Net Income</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">14</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD>9.</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">Records</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD>10.</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">Opinion of Fund&#146;s Independent Accountants</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD>11.</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">Reports to Fund by Independent Public Accountants</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD>12.</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">Compensation of Custodian</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD>13.</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">Responsibility of Custodian</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD>14.</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">Effective Period, Termination and Amendment</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">17</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD>15.</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">Successor Custodian</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">17</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD>16.</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">Interpretive and Additional Provisions</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">18</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD>17.</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">Additional Funds</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">18</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD>18.</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">Massachusetts Law to Apply</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">18</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD>19.</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">Prior Contracts</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">19</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD>20.</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">Shareholder Communications</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">19</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD>21.</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">Limitation of Liability</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">19</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>MASTER CUSTODIAN CONTRACT</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This Contract between each fund or series of a fund listed on Appendix&nbsp;1 which evidences
its agreement to be bound hereby by executing a copy of this Contract (each such fund, any and all
separate series or portfolios thereof and any additional portfolios or separate series thereof
which become subject to this Contract pursuant to Section&nbsp;17 hereof, are individually hereafter
referred to as a &#147;Fund&#148;), and State Street Bank and Trust Company, a Massachusetts trust company,
having its principal place of business at 225 Franklin Street, Boston, Massachusetts, 02110,
hereinafter called the &#147;Custodian,&#148;
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>WITNESSETH:</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;WHEREAS, each of the Funds has previously entered into a Custodian Contract with the
Custodian;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;WHEREAS, the Custodian and each of the Funds desire to replace such existing Custodian
Contracts with this Master Custodian Contract between the Custodian and all of the Funds;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;NOW THEREFORE, in consideration of the mutual covenants and agreements hereinafter contained,
the parties hereto agree as follows:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">1.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U>Employment of Custodian and Property to be Held by It</U></TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Each Fund hereby employs the Custodian as the custodian of the assets of such Fund, including
securities which such Fund desires to be held in places within the United States (&#147;domestic
securities&#148;) and securities it desires to be held outside the United States (&#147;foreign securities&#148;)
pursuant to the provisions of such Fund&#146;s governing documents (domestic securities and foreign
securities are sometimes collectively referred to herein as &#147;Securities&#148;). Each Fund agrees to
deliver to the Custodian all securities and cash of such Fund, and all payments of income, payments
of principal or capital distributions received by it with respect to all securities owned by such
Fund from time to time, and the cash consideration received by it for such new or treasury shares
each class of capital stock or beneficial interest, as applicable, of such Fund, (&#147;Shares&#148;) as may
be issued or sold from time to time. The Custodian shall not be responsible for any property of a
Fund held or received by such Fund and not delivered to the Custodian.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Upon receipt of &#147;Proper Instructions&#148; (within the meaning of Article&nbsp;5), the Custodian shall
on behalf of the applicable Fund from time to time employ one or more sub-custodians, located in
the United States but only in accordance with an applicable vote by the Board of the Fund, and
provided that the Custodian shall have no more or less responsibility or liability to the Fund on
account of any actions or omissions of any sub-custodian so employed than any such sub-custodian
has to the Custodian. The Fund shall approve in writing the terms of any subcustodian agreement
with a United States subcustodian. The Custodian may employ as sub-custodian for each Fund&#146;s
foreign securities the foreign banking institutions and foreign securities depositories designated
in Schedule&nbsp;A hereto but only in accordance with the provisions of Article&nbsp;3.
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">



</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->1<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">



</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">2.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U>Duties of the Custodian with Respect to Property of each Fund Held By the
Custodian in the United States</U></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">2.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Holding Securities. The Custodian shall hold and physically segregate for the account of each
Fund all non-cash property, to be held by it in the United States including all domestic
securities owned by such Fund, other than (a)&nbsp;securities which are maintained pursuant to
Section&nbsp;2.10 in a clearing agency which acts as a securities depository or in a book-entry
system authorized by the U.S. Department of the Treasury (each, a &#147;U.S. Securities System&#148;)
and (b)&nbsp;commercial paper of an issuer for which State Street Bank and Trust Company acts as
issuing and paying agent (&#147;Direct Paper&#148;) which is deposited and/or maintained in the Direct
Paper System of the Custodian (the &#147;Direct Paper System&#148;) pursuant to Section&nbsp;2.11.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">2.2</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Delivery of Securities. The Custodian shall release and deliver domestic securities owned by
a Fund held by the Custodian or in a U.S. Securities System account of the Custodian or in the
Custodian&#146;s Direct Paper book entry system account (&#147;Direct Paper System Account&#148;) only upon
receipt of Proper Instructions from such Fund, which may be continuing instructions when
deemed appropriate by the parties, and only in the following cases:</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">1)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Upon sale of such securities for the account of such Fund and receipt of
payment therefor;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">2)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Upon the receipt of payment in connection with any repurchase agreement related
to such securities entered into by such Fund;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">3)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>In the case of a sale effected through a U.S. Securities System, in accordance
with the provisions of Section&nbsp;2.10 hereof;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">4)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>To the depository agent in connection with tender or other similar offers
for securities of such Fund;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">5)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>To the issuer thereof or its agent when such securities are called, redeemed,
retired or otherwise become payable; provided that, in any such case, the cash or other
consideration is to be delivered to the Custodian;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">6)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>To the issuer thereof, or its agent, for transfer into the name of such Fund or
into the name of any nominee or nominees of the Custodian or into the name or nominee
name of any agent appointed pursuant to Section&nbsp;2.9 or into the name or nominee name of
any sub-custodian appointed pursuant to Article&nbsp;1; or for exchange for a different
number of bonds, certificates or other evidence representing the same aggregate face
amount or number of units; provided that, in any such case, the new securities are to
be delivered to the Custodian;</TD>
</TR>

</TABLE>
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">7)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Upon the sale of such securities for the account of such Fund, to the broker or its
clearing agent, against a receipt, for examination in accordance with &#147;street delivery&#148;
custom; provided that in any such case, the Custodian shall have no responsibility or
liability for any loss arising from the delivery of such securities prior to receiving
payment for such securities except as may arise from the Custodian&#146;s own negligence or
willful misconduct;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">8)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>For exchange or conversion pursuant to any plan of merger, consolidation, recapitalization,
reorganization or readjustment of the securities of the issuer of such securities, or pursuant
to provisions for conversion contained in such securities, or pursuant to any deposit
agreement; provided that, in any such case, the new securities and cash, if any, are to be
delivered to the Custodian;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">9)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>In the case of warrants, rights or similar securities, the surrender thereof in the exercise
of such warrants, rights or similar securities or the surrender of interim receipts or
temporary securities for definitive securities; provided that, in any such case, the new
securities and cash, if any, are to be delivered to the Custodian;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">10)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>For delivery in connection with any loans of securities made by such Fund, but only against
receipt of adequate collateral as agreed upon from time to time by the Custodian and such
Fund, which may be in the form of cash or obligations issued by the United States government,
its agencies or instrumentalities, except that in connection with any loans for which
collateral is to be credited to the Custodian&#146;s account in the book-entry system authorized by
the U.S. Department of the Treasury, the Custodian will not be held liable or responsible for
the delivery of securities owned by such Fund prior to the receipt of such collateral;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">11)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>For delivery as security in connection with any borrowings by such Fund requiring a pledge of
assets by such Fund, but only against receipt of amounts borrowed;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">12)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>For delivery in accordance with the provisions of any agreement among such Fund, the
Custodian and a broker-dealer registered under the Securities Exchange Act of 1934 (the
&#147;Exchange Act&#148;) and a member of The National Association of Securities Dealers, Inc. (&#147;NASD&#148;),
relating to compliance with the rules of The Options Clearing Corporation and of any
registered national securities exchange, or of any similar organization or organizations,
regarding escrow or other arrangements in connection with transactions by such Fund;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">13)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>For delivery in accordance with the provisions of any agreement among such Fund, the
Custodian, and a Futures Commission Merchant registered under the Commodity Exchange Act,
relating to compliance with the rules of the Commodity Futures Trading Commission and/or any
Contract Market, or any similar organization or organizations, regarding account deposits in
connection with transactions by such Fund;</TD>
</TR>



</TABLE>
</DIV>
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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">


<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">14)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Upon receipt of instructions from the transfer agent (&#147;Transfer Agent&#148;) for such
Fund, for delivery to such Transfer Agent or to the holders of shares in connection
with distributions in kind, as may be described from time to time in the currently
effective prospectus and statement of additional information of such Fund
(&#147;Prospectus&#148;), in satisfaction of requests by holders of Shares for repurchase or
redemption; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">15)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>For any other proper corporate purpose, but only upon receipt of, in addition
to Proper Instructions from such Fund, a certified copy of a resolution of the Board or
of the Executive Committee of such Fund signed by an officer of such Fund and certified
by the Secretary or an Assistant Secretary, specifying the securities of such Fund to
be delivered, setting forth the purpose for which such delivery is to be made,
declaring such purpose to be a proper corporate purpose, and naming the person or
persons to whom delivery of such securities shall be made.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">2.3</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Registration of Securities. Domestic securities held by the Custodian (other than bearer
securities) shall be registered in the name of each Fund or in the name of any nominee of each
Fund or of any nominee of the Custodian which nominee shall be assigned exclusively to each
Fund, unless a Fund has authorized in writing the appointment of a nominee to be used in
common with other registered investment companies having the same investment adviser as such
Fund, or in the name or nominee name of any agent appointed pursuant to Section&nbsp;2.9 or in the
name or nominee name of any sub-custodian appointed pursuant to Article&nbsp;1. All securities
accepted by the Custodian under the terms of this Contract shall be in &#147;street name&#148; or other
good delivery form. If, however, a Fund directs the Custodian to maintain securities in
&#147;street name&#148;, the Custodian shall utilize commercially reasonable means to timely collect
income due such Fund on such securities and to timely notify each Fund of relevant corporate
actions including, without limitation, pendency of calls, maturities, tender or exchange
offers.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">2.4</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Bank Accounts. The Custodian shall open and maintain a separate bank account or accounts in
the United States in the name of each Fund, subject only to draft or order by the Custodian
acting pursuant to the terms of this Contract, and shall hold in such account or accounts,
subject to the provisions hereof, all cash received by it from or for the account of such
Fund, other than cash maintained by such Fund in a bank account established and used in
accordance with Rule&nbsp;17f-3 under the Investment Company Act of 1940. Funds held by the
Custodian for each Fund may be deposited by it to its credit as Custodian in the Banking
Department of the Custodian or in such other banks or trust companies as it may in its
discretion deem necessary or desirable; provided, however, that every such bank or trust
company shall be qualified to act as a custodian under the Investment Company Act of 1940 and
that each such bank or trust company and the funds to be deposited with each such bank or
trust company shall on behalf of each applicable Fund be approved by vote of a majority of the
Board of such Fund. Such funds shall be deposited by the Custodian in its capacity as
Custodian and shall be withdrawable by the Custodian only in that capacity.</TD>
</TR>



</TABLE>
</DIV>
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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">


<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">2.5</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Availability of Federal Funds. Upon mutual agreement between a Fund and the Custodian,
the Custodian shall, upon the receipt of Proper Instructions from such Fund, make federal
funds available to such Fund as of specified times agreed upon from time to time by such
Fund and the Custodian in the amount of checks received in payment for Shares of such Fund
which are deposited into such Fund&#146;s account.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">2.6</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Collection of Income. Subject to the provisions of Section&nbsp;2.3, the Custodian shall collect
on a timely basis all income and other payments with respect to Securities held hereunder to
which each Fund shall be entitled either by law or pursuant to custom in the securities
business, and shall collect on a timely basis all income and other payments with respect to
bearer securities if, on the date of payment by the issuer, such securities are held by the
Custodian or its agent thereof and shall credit such income, as collected, to such Fund&#146;s
custodian account. Without limiting the generality of the foregoing, the Custodian shall
detach and present for payment all coupons and other income items requiring presentation as
and when they become due and shall collect interest when due on securities held hereunder.
Unless otherwise agreed to by the parties, income due each Fund on securities loaned pursuant
to the provisions of Section&nbsp;2.2 (10)&nbsp;shall be the responsibility of the Fund. The Custodian
will have no duty or responsibility in connection therewith, other than to provide each Fund
with such information or data as may be necessary to assist each Fund in arranging for the
timely delivery to the Custodian of the income to which each Fund is properly entitled.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">2.7</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Payment of Fund Moneys. Upon receipt of Proper Instructions from a Fund, which may be
continuing instructions when deemed appropriate by the parties, the Custodian shall pay out
moneys of each Fund in the following cases only:</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">1)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Upon the purchase of Securities, options, futures contracts or options on
futures contracts for the account of such Fund but only (a)&nbsp;against the delivery of
such securities or evidence of title to such options, futures contracts or options on
futures contracts to the Custodian (or any bank, banking firm or trust company doing
business in the United States or abroad which is qualified under the Investment Company
Act of 1940, as amended, to act as a custodian and has been designated by the Custodian
as its agent for this purpose) registered in the name of such Fund or in the name of a
nominee of the Custodian referred to in Section&nbsp;2.3 hereof or in proper form for
transfer; (b)&nbsp;in the case of a purchase effected through a U.S. Securities System, in
accordance with the conditions set forth in Section&nbsp;2.10 hereof; (c)&nbsp;in the case of a
purchase involving the Direct Paper System, in accordance with the conditions set forth
in Section&nbsp;2.11; (d)&nbsp;in the case of repurchase agreements entered into between such
Fund and the Custodian, or another bank, or a broker-dealer which is a member of NASD,
(i)&nbsp;against delivery of the securities either in certificate form or through an entry
crediting the Custodian&#146;s account at the Federal Reserve Bank with such securities or
(ii)&nbsp;against delivery of the receipt evidencing purchase by such Fund of securities
owned by the Custodian along with written evidence of the agreement by the Custodian to
repurchase such securities from such Fund or (e)&nbsp;for transfer to a time deposit account
of such Fund in any bank, whether domestic or foreign; such transfer may be effected
prior to receipt of a confirmation</TD>
</TR>

</TABLE>
</DIV>
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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #textcolor#; background: #bgcolor#">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>from a broker and/or the applicable bank pursuant to Proper Instructions from such
Fund as defined in Article&nbsp;5;</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">2)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>In connection with conversion, exchange or surrender of Securities owned by
such Fund as set forth in Section&nbsp;2.2 hereof;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">3)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>For the redemption or repurchase of Shares issued by such Fund as set
forth in Article&nbsp;4 hereof;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">4)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>For the payment of any expense or liability incurred by such Fund, including
but not limited to the following payments for the account of such Fund: interest,
taxes, management, accounting, transfer agent and legal fees, and operating expenses of
such Fund whether or not such expenses are to be in whole or part capitalized or
treated as deferred expenses;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">5)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>For the payment of any dividends on Shares of such Fund declared pursuant to
the governing documents of such Fund;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">6)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>For payment of the amount of dividends received in respect of securities sold short;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">7)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>For any other proper purpose, but only upon receipt of, in addition to Proper
Instructions from such Fund, a certified copy of a resolution of the Board or of the
Executive Committee of such Fund signed by an officer of such Fund and certified by its
Secretary or an Assistant Secretary, specifying the amount of such payment, setting
forth the purpose for which such payment is to be made, declaring such purpose to be a
proper purpose, and naming the person or persons to whom such payment is to be made.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">2.8</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Liability for Payment in Advance of Receipt of Securities Purchased. Except as specifically
stated otherwise in this Contract, in any and every case where payment for purchase of
Securities for the account of such Fund is made by the Custodian in advance of receipt of the
securities purchased in the absence of specific Proper Instructions from such Fund to so pay
in advance, the Custodian shall be absolutely liable to such Fund for such securities to the
same extent as if the securities had been received by the Custodian.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">2.9</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Appointment of Agents. The Custodian may at any time or times, subject to the applicable
Fund&#146;s prior approval, in its discretion appoint (and may at any time remove) any other bank
or trust company which is itself qualified under the Investment Company Act of 1940, as
amended, to act as a custodian, as its agent to carry out such of the provisions of this
Article&nbsp;2 as the Custodian may from time to time direct; provided, however, that the
appointment of any agent shall not relieve the Custodian of its responsibilities or
liabilities hereunder.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">2.10</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Deposit of Fund Assets in U.S. Securities Systems. The Custodian may deposit and/or maintain
securities owned by a Fund in a clearing agency registered with the Securities and Exchange
Commission under Section&nbsp;17A of the Exchange Act, which acts as a securities depository, or in
the book-entry system authorized by the U.S. Department of the Treasury</TD>
</TR>

</TABLE>
</DIV>


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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>and certain federal agencies, collectively referred to herein as &#147;U.S. Securities System&#148; in
accordance with applicable Federal Reserve Board and Securities and Exchange Commission rules and
regulations, if any, and subject to the following provisions:</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">1)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Custodian may keep securities of each Fund in a U.S. Securities System provided that such
securities are represented in an account (&#147;Account&#148;) of the Custodian in the U.S. Securities
System which shall not include any assets of the Custodian other than assets held as a
fiduciary, custodian or otherwise for customers;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">2)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The records of the Custodian with respect to securities of each Fund which are maintained in
a U.S. Securities System shall identify by book-entry those securities belonging to each Fund;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">3)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Custodian shall pay for securities purchased for the account of each Fund upon (i)
receipt of advice from the U.S. Securities System that such securities have been transferred
to the Account, and (ii)&nbsp;the making of an entry on the records of the Custodian to reflect
such payment and transfer for the account of each Fund. The Custodian shall transfer
securities sold for the account of each Fund upon (i)&nbsp;receipt of advice from the U.S.
Securities System that payment for such securities has been transferred to the Account, and
(ii)&nbsp;the making of an entry on the records of the Custodian to reflect such transfer and
payment for the account of each Fund. Copies of all advices from the U.S. Securities System of
transfers of securities for the account of each Fund shall identify each Fund, be maintained
for each Fund by the Custodian and be provided to each Fund at its request. Upon request, the
Custodian shall furnish each Fund confirmation of each transfer to or from the account of each
Fund in the form of a written advice or notice and shall furnish to each Fund copies of daily
transaction sheets reflecting each day&#146;s transactions in the U.S. Securities System for the
account of each Fund.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">4)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Custodian shall provide each Fund with any report obtained by the Custodian on the U.S.
Securities System&#146;s accounting system, internal accounting control and procedures for
safeguarding securities deposited in the U.S. Securities System;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">5)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Custodian shall have received from each Fund the initial certificate required by Article
14 hereof;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">6)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Anything to the contrary in this Contract notwithstanding, the Custodian shall be liable to
each Fund for the benefit of such Fund for any loss or damage to such Fund resulting from use
of the U.S. Securities System by reason of any negligence, misfeasance or misconduct of the
Custodian or any of its agents or of any of its or their employees or from failure of the
Custodian or any such agent to enforce effectively such rights as it may have against the U.S.
Securities System; at the election of the affected Fund, it shall be entitled to be subrogated
to the rights of the Custodian with respect to any claim against the U.S. Securities System or
any other person which the Custodian may have as a consequence of any such loss or damage</TD>
</TR>

</TABLE>
</DIV>
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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">


<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>if and to the extent that such Fund has not been made whole for any such loss or
damage.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">2.11</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Fund Assets Held in the Custodian&#146;s Direct Paper System. The Custodian may deposit and/or
maintain securities owned by each Fund in the Direct Paper System of the Custodian subject to
the following provisions:</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">1)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>No transaction relating to securities in the Direct Paper System will be
effected in the absence of Proper Instructions from each Fund;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">2)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Custodian may keep securities of each Fund in the Direct Paper System only
if such securities are represented in an account of the Custodian in the Direct Paper
System which shall not include any assets of the Custodian other than assets held as a
fiduciary, custodian or otherwise for customers;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">3)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The records of the Custodian with respect to securities of each Fund which are
maintained in the Direct Paper System shall identify by book-entry those securities
belonging to each Fund;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">4)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Custodian shall pay for securities purchased for the account of each Fund
upon the making of an entry on the records of the Custodian to reflect such payment and
transfer of securities to the account of each Fund. The Custodian shall transfer
securities sold for the account of each Fund upon the making of an entry on the records
of the Custodian to reflect such transfer and receipt of payment for the account of
each Fund;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">5)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Custodian shall furnish each Fund confirmation of each transfer to or from
the account of each Fund, in the form of a written advice or notice, of Direct Paper on
the next business day following such transfer and shall furnish to each Fund copies of
daily transaction sheets reflecting each day&#146;s transactions in the Direct Paper System
for the account of each Fund;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">6)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Custodian shall provide each Fund with any report on its system of internal
accounting control as each Fund may reasonably request from time to time.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">2.12</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Pledged Account. The Custodian shall upon receipt of Proper Instructions from a Fund
establish and maintain a pledged account or accounts for and on behalf of such Fund, into
which account or accounts may be transferred cash and/or securities, including securities
maintained in an account by the Custodian pursuant to Section&nbsp;2.10 hereof, (i)&nbsp;in accordance
with the provisions of any agreement among such Fund, the Custodian and a broker-dealer
registered under the Exchange Act and a member of the NASD (or any futures commission merchant
registered under the Commodity Exchange Act), relating to compliance with the rules of The
Options Clearing Corporation and of any registered national securities exchange (or the
Commodity Futures Trading Commission or any registered contract market), or of any similar
organization or organizations, regarding escrow or other arrangements in connection with
transactions by such Fund, (ii)&nbsp;for</TD>
</TR>

</TABLE>
</DIV>
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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">


<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>purposes of segregating cash or government securities in connection with options purchased,
sold or written by such Fund or commodity futures contracts or options thereon purchased or
sold by such Fund, (iii)&nbsp;for the purposes of compliance by such Fund with the procedures
required by Investment Company Act Release No.&nbsp;10666, and subsequent release or releases of
the Securities and Exchange Commission relating to the maintenance of segregated accounts by
registered investment companies and (iv)&nbsp;for other proper corporate purposes, but only, in
the case of clause (iv), upon receipt of, in addition to Proper Instructions from such Fund,
a certified copy of a resolution of the Board or of the Executive Committee of such Fund
signed by an officer of such Fund and certified by the Secretary or an Assistant Secretary,
setting forth the purpose or purposes of such segregated account.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">2.13</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Ownership Certificates for Tax Purposes. The Custodian shall execute ownership and other
certificates and affidavits for all federal and state tax purposes in connection with receipt
of income or other payments with respect to securities of each Fund held by it and in
connection with transfers of securities.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">2.14</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Proxies. The Custodian shall, with respect to the securities held hereunder, cause to be
promptly executed by the registered holder of such securities, if the securities are
registered otherwise than in the name of such Fund or a nominee of such Fund, all proxies,
without indication of the manner in which such proxies are to be voted, and shall promptly
deliver to the applicable Fund such proxies, all proxy soliciting materials and all notices
relating to such securities.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">2.15</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Communications Relating to Fund Securities. Subject to the provisions of Section&nbsp;2.3, the
Custodian shall transmit promptly to each Fund all written information (including, without
limitation, pendency of calls and maturities of domestic securities and expirations of rights
in connection therewith and notices of exercise of call and put options written by such Fund
and the maturity of futures contracts purchased or sold by such Fund) received by the
Custodian from issuers of the securities being held for such Fund. With respect to tender or
exchange offers, the Custodian shall transmit promptly to each Fund all written information
received by the Custodian from issuers of the securities whose tender or exchange is sought
and from the party (or his agents) making the tender or exchange offer. If a Fund desires to
take action with respect to any tender offer, exchange offer or any other similar transaction,
such Fund shall notify the Custodian at least three business days prior to the date on which
the Custodian is to take such action.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">3.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U>Duties of the Custodian with Respect to Property of each Fund Held Outside of the
United States</U></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">3.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Appointment of Foreign Sub-Custodians. Each Fund hereby authorizes and instructs the
Custodian to employ as sub-custodians for such Fund&#146;s securities and other assets maintained
outside the United States the foreign banking institutions and foreign securities depositories
designated on Schedule&nbsp;A hereto (&#147;foreign sub-custodians&#148;). Upon receipt of &#147;Proper
Instructions&#148;, as defined in Section&nbsp;5 of this Contract, together with a certified resolution
of such Fund&#146;s Board, the Custodian and such Fund may agree to amend</TD>
</TR>

</TABLE>
</DIV>
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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">


<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Schedule&nbsp;A hereto from time to time to designate additional foreign banking institutions and
foreign securities depositories to act as sub-custodian. Upon receipt of Proper
Instructions, a Fund may instruct the Custodian to cease the employment of any one or more
such sub-custodians for maintaining custody of such Fund&#146;s assets.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">3.2</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Assets to be Held. The Custodian shall limit the securities and other assets maintained in
the custody of the foreign sub-custodians to: (a) &#147;foreign securities&#148;, as defined in
paragraph (c)(1) of Rule&nbsp;17f-5 under the Investment Company Act of 1940, and (b)&nbsp;cash and cash
equivalents in such amounts as the Custodian or each Fund may determine to be reasonably
necessary to effect such Fund&#146;s foreign securities transactions. The Custodian shall identify
on its books as belonging to each Fund, the foreign securities of each Fund held by each
foreign sub-custodian.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">3.3</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Foreign Securities Systems. Except as may otherwise be agreed upon in writing by the
Custodian and each Fund, assets of each Fund shall be maintained in a clearing agency which
acts as a securities depository or in a book-entry system for the central handling of
securities located outside of the United States (each a &#147;Foreign Securities System&#148;) only
through arrangements implemented by the foreign banking institutions
serving as sub-custodians
pursuant to the terms hereof (Foreign Securities Systems and U.S. Securities Systems are
collectively referred to herein as the &#147;Securities Systems&#148;). Where possible, such
arrangements shall include entry into agreements containing the provisions set forth in
Section&nbsp;3.6 hereof.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">3.4</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Holding Securities. The Custodian may hold securities and other non-cash property for all of
its customers, including each Fund, with a foreign sub-custodian in a single account that is
identified as belonging to the Custodian for the benefit of its customers, provided however,
that (i)&nbsp;the records of the Custodian with respect to securities and other non-cash property
of each Fund which are maintained in such account shall identify by book-entry those
securities and other non-cash property belonging to each Fund and (ii)&nbsp;the Custodian shall
require that securities and other non-cash property so held by the
foreign sub-custodian be
held separately from any assets of the foreign sub-custodian or of others.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">3.5</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Agreements with Foreign Banking Institutions. Each agreement with a foreign banking
institution shall provide that: (a)&nbsp;the assets of each Fund will not be subject to any right,
charge, security interest, lien or claim of any kind in favor of the foreign banking
institution or its creditors or agents, except a claim of payment for their safe custody or
administration; (b)&nbsp;beneficial ownership for the assets of each Fund will be freely
transferable without the payment of money or value other than for custody or administration;
(c)&nbsp;adequate records will be maintained identifying the assets as belonging to each Fund; (d)
officers of or auditors employed by, or other representatives of the Custodian, including to
the extent permitted under applicable law the independent public accountants for each Fund,
will be given access to the books and records of the foreign banking institution relating to
its actions under its agreement with the Custodian; and (e)&nbsp;assets of each Fund held by the
foreign sub-custodian will be subject only to the instructions of the Custodian or its agents.
Agreements with foreign banking institutions shall contain those provisions required by
subparagraph (c)&nbsp;of Section&nbsp;17f-5 under the Investment Company Act of 1940.</TD>
</TR>

</TABLE>
</DIV>
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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">


<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">3.6</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Access of Independent Accountants of each Fund. Upon request of each Fund, the Custodian
will use its best efforts to arrange for the independent accountants of each Fund to be
afforded access to the books and records of any foreign banking institution employed as a
foreign sub-custodian insofar as such books and records relate to the performance of such
foreign banking institution under its agreement with the Custodian.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">3.7</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Reports by Custodian. The Custodian will supply to each Fund from time to time, as mutually
agreed upon, statements in respect of the securities and other assets of each Fund held by
foreign sub-custodians, including but not limited to an identification of entities having
possession of such Fund&#146;s securities and other assets and advices or notifications of any
transfers of securities to or from each custodial account maintained by a foreign banking
institution for the Custodian on behalf of such Fund indicating, as to securities acquired for
such Fund, the identity of the entity having physical possession of such securities.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">3.8</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Transactions in Foreign Custody Account. (a)&nbsp;Except as otherwise provided in paragraph (b)&nbsp;of
this Section&nbsp;3.8, the provisions of Sections&nbsp;2.2 and 2.7 of this Contract shall apply, mutatis
mutandis to the foreign securities of each Fund held outside the United States by foreign
sub-custodians. (b)&nbsp;Notwithstanding any provision of this Contract to the contrary, settlement
and payment for securities received for the account of each Fund and delivery of securities
maintained for the account of each Fund may be effected in accordance with the customary
established securities trading or securities processing practices and procedures in the
jurisdiction or market in which the transaction occurs, including, without limitation,
delivering securities to the purchaser thereof or to a dealer therefor (or an agent for such
purchaser or dealer) against a receipt with the expectation of receiving later payment for
such securities from such purchaser or dealer. (c)&nbsp;Securities maintained in the custody of a
foreign sub-custodian may be maintained in the name of such entity&#146;s nominee to the same
extent as set forth in Section&nbsp;2.3 of this Contract, and each Fund agrees to hold any such
nominee harmless from any liability as a holder of record of such securities.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">3.9</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Liability of Foreign Sub-Custodians. Each agreement pursuant to which the Custodian employs a
foreign banking institution as a foreign sub-custodian shall require the institution to
exercise reasonable care in the performance of its duties and to indemnify, and hold harmless,
the Custodian and each Fund from and against any loss, damage, cost, expense, liability or
claim arising out of or in connection with the institution&#146;s performance of such obligations.
At the election of a Fund, it shall be entitled to be subrogated to the rights of the
Custodian with respect to any claims against a foreign banking institution as a consequence of
any such loss, damage, cost, expense, liability or claim if and to the extent that such Fund
has not been made whole for any such loss, damage, cost, expense, liability or claim.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">3.10</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Liability of Custodian. The Custodian shall be liable for the acts or omissions of a foreign
banking institution to the same extent as set forth with respect to sub-custodians generally
in this Contract and, regardless of whether assets are maintained in the custody of a foreign
banking institution, a foreign securities depository or a branch of a U.S. bank as
contemplated by Section&nbsp;3.13 hereof, the Custodian shall not be liable for any loss, damage,</TD>
</TR>

</TABLE>
</DIV>
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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">


<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>cost, expense, liability or claim resulting from nationalization, expropriation, currency
restrictions, or acts of war or terrorism or any loss where the sub-custodian has otherwise
exercised reasonable care. Notwithstanding the foregoing provisions of this Section&nbsp;3.10, in
delegating custody duties to State Street London Ltd., the Custodian shall not be relieved
of any responsibility to each Fund for any loss due to such delegation, except such loss as
may result from (a)&nbsp;political risk (including, but not limited to, exchange control
restrictions, confiscation, expropriation, nationalization, insurrection, civil strife or
armed hostilities) or (b)&nbsp;other losses (excluding a bankruptcy or insolvency of State Street
London Ltd. not caused by political risk) due to Acts of God, nuclear incident or other
losses under circumstances where the Custodian and State Street London Ltd. have exercised
reasonable care.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">3.11</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Reimbursement for Advances. If, pursuant to Proper Instructions, a Fund requires the
Custodian to advance cash or securities for any purpose for the benefit of a Fund including
the purchase or sale of foreign exchange or of contracts for foreign exchange, or in the event
that the Custodian or its nominee shall incur or be assessed any taxes, charges, expenses,
assessments, claims or liabilities in connection with the performance of this Contract, except
such as may arise from events or circumstances for which the Custodian or a sub-custodian are
liable pursuant to Sections&nbsp;3.9 and 3.10 above, or from its or its nominee&#146;s own negligent
action, negligent failure to act or willful misconduct, any property at any time held for the
account of the applicable Fund shall be security therefor and should such Fund fail to repay
the Custodian promptly, the Custodian shall upon prior written notice be entitled to utilize
available cash and to dispose of such Fund&#146;s assets to the extent necessary to obtain
reimbursement.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">3.12</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Monitoring Responsibilities. The Custodian shall furnish annually to each Fund, during the
month of June, information concerning the foreign sub-custodians employed by the Custodian and
such other information needed to permit the Fund to comply with Section&nbsp;17f-5 under the 1940
Act. Such information shall be similar in kind and scope to that furnished to each Fund in
connection with the initial approval of this Contract. In addition, the Custodian will
promptly inform each Fund in the event that the Custodian learns of a material adverse change
in the financial condition of a foreign sub-custodian or any material loss of the assets of
each Fund or in the case of any foreign sub-custodian not the subject of an exemptive order
from the Securities and Exchange Commission is notified by such foreign sub-custodian that
there appears to be a substantial likelihood that its shareholders&#146; equity will decline below
$200&nbsp;million (U.S. dollars or the equivalent thereof) or that its shareholders&#146; equity has
declined below $200&nbsp;million (in each case computed in accordance with generally accepted U.S.
accounting principles).</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">3.13</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Branches of U.S. Banks. (a)&nbsp;Except as otherwise set forth in this Contract, the provisions
hereof shall not apply where the custody of a Fund&#146;s assets are maintained in a foreign branch
of a banking institution which is a &#147;bank&#148; as defined by Section&nbsp;2(a)(5) of the Investment
Company Act of 1940 meeting the qualification set forth in Section 26(a) of said Act. The
appointment of any such branch as a sub-custodian shall be governed by Article&nbsp;1 of this
Contract. (b)&nbsp;Cash held for each Fund in the United Kingdom shall be maintained in an interest
bearing account established for each Fund with the Custodian&#146;s London branch,</TD>
</TR>

</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->12<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">


<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>which account shall be subject to the direction of the Custodian, State Street London Ltd.
or both.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">3.14</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Tax Law. The Custodian shall have no responsibility or liability for any obligations now
or hereafter imposed on any Fund or the Custodian as custodian of such Fund by the tax law of
the United States of America or any state or political subdivision thereof. It shall be the
responsibility of each Fund to notify the Custodian of the obligations imposed on each Fund or
the Custodian as custodian of each Fund by the tax law of jurisdictions other than those
mentioned in the above sentence, including responsibility for withholding and other taxes,
assessments or other governmental charges, certifications and governmental reporting. The sole
responsibility of the Custodian with regard to such tax law shall be to use reasonable efforts
to assist each Fund with respect to any claim for exemption or refund under the tax law of
jurisdictions for which each Fund has provided such information.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">4.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U>Payments for Sales or Repurchases or Redemptions of Shares of each Fund</U></TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Custodian shall receive from the distributor for the Shares or from the Transfer Agent of
each Fund and deposit into the account of each Fund such payments as are received for Shares of
each Fund issued or sold from time to time by each Fund. The Custodian will provide timely
notification to each Fund and the Transfer Agent of any receipt by it of payments for Shares of
such Fund.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;From such funds as may be available for the purpose but subject to the limitations of each
Fund&#146;s governing documents and any applicable votes of the Board of each Fund pursuant thereto, the
Custodian shall, upon receipt of instructions from the Transfer Agent, make funds available for
payment to holders of Shares who have delivered to the Transfer Agent a request for redemption or
repurchase of their Shares. In connection with the redemption or repurchase of Shares of each Fund,
the Custodian is authorized upon receipt of instructions from the Transfer Agent to wire funds to
or through a commercial bank designated by the redeeming shareholders. In connection with the
redemption or repurchase of Shares of each Fund, the Custodian shall honor checks drawn on the
Custodian by a holder of Shares, which checks have been furnished by such Fund to the holder of
Shares, when presented to the Custodian in accordance with such procedures and controls as are
mutually agreed upon from time to time between each Fund and the Custodian.
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">5.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U>Proper Instructions</U></TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Proper Instructions as used throughout this Contract means a writing signed or initialed by
one or more person or persons as the Board of each Fund shall have from time to time authorized.
Each such writing shall set forth the specific transaction or type of transaction involved,
including a specific statement of the purpose for which such action is requested. Oral instructions
will be considered Proper Instructions if the Custodian reasonably believes them to have been given
by a person authorized to give such instructions with respect to the transaction involved. Each
Fund shall cause all oral instructions to be confirmed in writing. Upon receipt of a certificate of
the Secretary or an Assistant Secretary as to the authorization by the Board of each Fund
accompanied by a detailed description of procedures approved by the Board, Proper Instructions may
include communications effected directly between electro-mechanical or electronic devices provided
that
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->13<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">the Board and the Custodian are satisfied that such procedures afford adequate safeguards for such
Fund&#146;s assets. For purposes of this Section, Proper Instructions shall include instructions
received by the Custodian pursuant to any three-party agreement which requires a segregated asset
account in accordance with Section&nbsp;2.12.
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">6.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U>Actions Permitted without Express Authority</U></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Custodian may in its discretion, without express authority from each Fund:</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">1)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>make payments to itself or others for minor expenses of handling
securities or other similar items relating to its duties under this Contract, provided
that all such payments shall be accounted for to the applicable Fund;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">1)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>surrender securities in temporary form for securities in definitive form;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">2)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>endorse for collection, in the name of each Fund, checks, drafts and other
negotiable instruments; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">3)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>in general, attend to all ministerial details in connection with the sale,
exchange, substitution, purchase, transfer and other dealings with the securities and
property of each Fund except as otherwise directed by the Board of each Fund.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">7.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U>Evidence of Authority</U></TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Custodian shall be protected in acting upon any instructions, notice, request, consent,
certificate or other instrument or paper reasonably believed by it to be genuine and to have been
properly executed by or on behalf of each Fund. The Custodian may receive and accept a certified
copy of a vote of the Board of each Fund as conclusive evidence (a)&nbsp;of the authority of any person
to act in accordance with such vote or (b)&nbsp;of any determination or of any action by the Board
pursuant to the governing documents of each Fund as described in such vote, and such vote may be
considered as in full force and effect until receipt by the Custodian of written notice to the
contrary.
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">8.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U>Duties of Custodian with Respect to the Books of Account and Calculation of Net Asset
Value and Net Income</U></TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Custodian shall cooperate with and supply necessary information to the entity or entities
appointed by the Board of each Fund to keep the books of account of each Fund and/or compute the
net asset value per share of the outstanding shares of each Fund or, if directed in writing to do
so by each Fund, shall itself keep such books of account and/or compute such net asset value per
share. If so directed, the Custodian shall also calculate daily the net income of each Fund as
described in each Fund&#146;s currently effective Prospectus and shall advise each Fund and the Transfer
Agent daily of the total amounts of such net income and, if instructed in writing by an officer of
each Fund to do so, shall advise the Transfer Agent periodically of the division of such net income
among its various components. The calculations of the net asset value per share and the
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->14<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">daily income of each Fund shall be made at the time or times described from time to time in each
Fund&#146;s currently effective Prospectus.
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">9.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U>Records</U></TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Custodian shall with respect to each Fund create and maintain all records relating to its
activities and obligations under this Contract in such manner as will meet the obligations of each
Fund under the Investment Company Act of 1940, with particular attention to Section&nbsp;31 thereof and
Rules&nbsp;31a-l and 31a-2 thereunder. All such records shall be the property of each Fund and shall at
all times during the regular business hours of the Custodian be open for inspection by duly
authorized officers, employees or agents of the applicable Fund and employees and agents of the
Securities and Exchange Commission. The Custodian shall, at the request of any Fund, supply such
Fund with a tabulation of securities owned by such Fund and held by the Custodian and shall, when
requested to do so by a Fund and for such compensation as shall be agreed upon between such Fund
and the Custodian, include certificate numbers in such tabulations.
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">10.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U>Opinion of Fund&#146;s Independent Accountant</U></TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Custodian shall take all reasonable action, as each Fund may from time to time request, to
obtain from year to year favorable opinions from each Fund&#146;s independent accountants with respect
to its activities hereunder in connection with the preparation of each Fund&#146;s Form N-1A, and Form
N-SAR or other annual reports to the Securities and Exchange Commission and with respect to any
other requirements of such Commission.
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">11.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U>Reports to Fund by Independent Public Accountants</U></TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Custodian shall provide each Fund, at such times as each Fund may reasonably require, with
reports by independent public accountants on the accounting system, internal accounting control and
procedures for safeguarding securities, futures contracts and options on futures contracts,
including securities deposited and/or maintained in a Securities System, relating to the services
provided by the Custodian under this Contract; such reports, shall be of sufficient scope and in
sufficient detail, as may reasonably be required by each Fund to provide reasonable assurance that
any material inadequacies would be disclosed by such examination, and, if there are no such
inadequacies, the reports shall so state.
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">12.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U>Compensation of Custodian</U></TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Custodian shall be entitled to reasonable compensation for its services and expenses as
Custodian, determine in accordance with the fee schedule attached hereto as Schedule&nbsp;B, as amended
from time to time as agreed by each Fund and the Custodian.
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">13.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U>Responsibility of Custodian</U></TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;So long as and to the extent that it is in the exercise of reasonable care, the Custodian
shall not be responsible for the title, validity or genuineness of any property or evidence of
title thereto received by it or delivered by it pursuant to this Contract and shall be held
harmless in acting upon
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->15<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">any notice, request, consent, certificate or other instrument reasonably believed by it to be
genuine and to be signed by the proper party or parties, including any futures commission merchant
acting pursuant to the terms of a three-party futures or options agreement. The Custodian shall be
held to the exercise of reasonable care in carrying out the provisions of this Contract, but shall
be kept indemnified by and shall be without liability to any Fund for any action taken or omitted
by it in good faith without negligence. It shall be entitled to rely on and may act upon advice of
counsel (who may be counsel for a Fund) on all matters, and shall be without liability for any
action reasonably taken or omitted pursuant to such advice.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Except as may arise from the Custodian&#146;s own negligence or willful misconduct or the
negligence or willful misconduct of a sub-custodian or agent, the Custodian shall be without
liability to any Fund for any loss, liability, claim or expense resulting from or caused by; (i)
events or circumstances beyond the reasonable control of the Custodian or any sub-custodian or
Securities System or any agent or nominee of any of the foregoing, including, without limitation,
nationalization or expropriation, imposition of currency controls or restrictions, the
interruption, suspension or restriction of trading on or the closure of any securities market,
power or other mechanical or technological failures or interruptions, computer viruses or
communications disruptions, acts of war or terrorism, riots, revolutions, work stoppages, natural
disasters or other similar events or acts provided Custodian has maintained an adequate disaster
recovery plan; (ii)&nbsp;errors by a Fund or its investment advisor in their instructions to the
Custodian provided such instructions have been in accordance with this Contract; (iii)&nbsp;the
insolvency of or acts or omissions by a Securities System; (iv)&nbsp;any delay or failure of any broker,
agent or intermediary, central bank or other commercially prevalent payment or clearing system to
deliver to the Custodian&#146;s subcustodian or agent securities purchased or in the remittance or
payment made in connection with securities sold; (v)&nbsp;any delay or failure of any company,
corporation, or other body in charge or registering or transferring securities in the name of the
Custodian, a Fund, the Custodian&#146;s subcustodians, nominees or agents or any consequential losses
arising out of such delay or failure to transfer such securities including non-receipt of bonus,
dividends and rights and other accretions or benefits; (vi)&nbsp;delays or inability to perform its
duties due to any disorder in market infrastructure with respect to any particular security or
Securities System; and (vii)&nbsp;any provision of any present or future law or regulation or order of
the United States of America, or any state thereof, or any other country, or political subdivision
thereof or of any court of competent jurisdiction.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Except as expressly provided in Section&nbsp;3.9, the Custodian shall be liable for the acts or
omissions of a foreign banking institution appointed pursuant to the provisions of Article&nbsp;3 to the
same extent as set forth in Article&nbsp;1 hereof with respect to sub-custodians located in the United
States.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If a Fund requires the Custodian to take any action with respect to securities, which action
involves the payment of money or which action may, in the reasonable opinion of the Custodian,
result in the Custodian or its nominee assigned to a Fund being liable for the payment of money or
incurring liability of some other form, such Fund, as a prerequisite to requiring the Custodian to
take such action, shall provide indemnity to the Custodian in an amount and form satisfactory to
it.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If a Fund requires the Custodian, its affiliates, subsidiaries or agents, to advance cash or
securities for any purpose (including but not limited to securities settlements, foreign exchange
</DIV>



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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">contracts and assumed settlements) or in the event that the Custodian or its nominee shall incur or
be assessed any taxes, charges, expenses, assessments, claims or liabilities in connection with the
performance of this Contract, except such as may arise from its or its nominee&#146;s own negligent
action, negligent failure to act or willful misconduct, any property at any time held for the
account of such Fund shall be security therefor and should such Fund fail to repay the Custodian
promptly, the Custodian shall be entitled to utilize available cash and to dispose of such Fund&#146;s
assets to the extent necessary to obtain reimbursement.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In no event shall the Custodian be liable for indirect, special or consequential damages.
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">14.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U>Effective Period, Termination and Amendment</U></TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This Contract shall become effective as of its execution, shall continue in full force and
effect until terminated as hereinafter provided, may be amended at any time by mutual agreement of
the parties hereto and may be terminated by either party by an instrument in writing delivered or
mailed, postage prepaid to the other party, such termination to take effect not sooner than thirty
(30)&nbsp;days after the date of such delivery or mailing; provided, however that the Custodian shall
not with respect to each Fund act under Section&nbsp;2.10 hereof in the absence of receipt of an initial
certificate of the Secretary or an Assistant Secretary that the Board of each Fund has approved the
initial use of a particular Securities System by each Fund, as required by Rule&nbsp;17f-4 under the
Investment Company Act of 1940, as amended and that the Custodian shall not with respect to a Fund
act under Section&nbsp;2.11 hereof in the absence of receipt of an initial certificate of the Secretary
or an Assistant Secretary that the Board has approved the initial use of the Direct Paper System by
each Fund; provided further, however, that a Fund shall not amend or terminate this Contract in
contravention of any applicable federal or state regulations, or any provision of its governing
documents, and further provided, that a Fund may at any time by action of its Board (i)&nbsp;substitute
another bank or trust company for the Custodian by giving notice as described above to the
Custodian, or (ii)&nbsp;immediately terminate this Contract in the event of the appointment of a
conservator or receiver for the Custodian by the Comptroller of the Currency or upon the happening
of a like event at the direction of an appropriate regulatory agency or court of competent
jurisdiction.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Upon termination of the Contract, each Fund shall pay to the Custodian such compensation as
may be due as of the date of such termination as provided herein.
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">15.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U>Successor Custodian</U></TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If a successor custodian for a Fund shall be appointed by the Board of such Fund, the
Custodian shall, upon termination, and upon receipt of a certified copy of such vote, deliver to
such successor custodian at the office of the Custodian, duly endorsed and in the form for
transfer, all securities of such Fund then held by it hereunder and shall transfer to an account of
the successor custodian all of the securities of such Fund held in a Securities System.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If no such successor custodian shall be appointed, the Custodian shall, in like manner, upon
receipt of a certified copy of a vote of the Board of the applicable Fund, deliver at the office of
the Custodian and transfer such securities, funds and other properties in accordance with such
vote.
</DIV>



<P align="center" style="font-size: 10pt"><!-- Folio -->17<!-- /Folio -->
</DIV>

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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In the event that no written order designating a successor custodian or certified copy of a
vote of the Board shall have been delivered to the Custodian on or before the date when such
termination shall become effective, then the Custodian shall have the right to deliver to a bank or
trust company, which is a &#147;bank&#148; as defined in the Investment Company Act of 1940, of its own
selection, having an aggregate capital, surplus, and undivided profits, as shown by its last
published report, of not less than $25,000,000, all securities, funds and other properties held by
the Custodian on behalf of such Fund and all instruments held by the Custodian relative thereto and
all other property held by it under this Contract on behalf of such Fund and to transfer to an
account of such successor custodian all of the securities of such Fund held in any Securities
System. Thereafter, such bank or trust company shall be the successor of the Custodian under this
Contract.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In the event that securities, funds and other properties remain in the possession of the
Custodian after the date of termination hereof owing to failure of a Fund to procure the certified
copy of the vote referred to above or of the Board to appoint a successor custodian, the Custodian
shall be entitled to fair compensation for its services during such period as the Custodian retains
possession of such securities, funds and other properties and the provisions of this Contract
relating to the duties and obligations of the Custodian shall remain in full force and effect.
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">16.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U>Interpretive and Additional Provisions</U></TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In connection with the operation of this Contract, the Custodian and each Fund, may from time
to time agree on such provisions interpretive of or in addition to the provisions of this Contract
as may in their joint opinion be consistent with the general tenor of this Contract. Any such
interpretive or additional provisions shall be in a writing signed by both parties and shall be
annexed hereto, provided that no such interpretive or additional provisions shall contravene any
applicable federal or state regulations or any provision of the governing documents of any Fund. No
interpretive or additional provisions made as provided in the preceding sentence shall be deemed to
be an amendment of this Contract.
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">17.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U>Additional Funds</U></TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In the event that any mutual funds in addition to the Funds are hereafter established which
desire to have the Custodian render services as custodian under the terms hereof, it shall so
notify the Custodian in writing, and if the Custodian agrees in writing to provide such services,
such fund shall become a Fund hereunder, subject to the delivery by the new Fund of resolutions
authorizing the appointment of the Custodian and such other supporting or related documentation as
the Custodian may request. All references to the &#147;Fund&#148; are to each of the Funds listed on Appendix
1 individually, as if this Contract were between each such individual Fund and the Custodian.
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">18.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U>Massachusetts Law to Apply</U></TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This Contract shall be construed and the provisions thereof interpreted under and in
accordance with laws of The Commonwealth of Massachusetts.
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->18<!-- /Folio -->
</DIV>

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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">19.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U>Prior Contracts</U></TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This Contract supersedes and terminates, as of the date hereof, all prior contracts between
each of the Funds and the Custodian relating to the custody of such Fund&#146;s assets.
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">20.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U>Shareholder Communications</U></TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Securities and Exchange Commission Rule&nbsp;14b-2 requires banks which hold securities for the
account of customers to respond to requests by issuers of securities for the names, addresses and
holdings of beneficial owners of securities of that issuer held by the bank unless the beneficial
owner has expressly objected to disclosure of this information. In order to comply with the rule,
the Custodian needs each Fund to indicate whether such Fund authorizes the Custodian to provide
such Fund&#146;s name, address, and share position to requesting companies whose stock each Fund owns.
If a Fund tells the Custodian &#147;no&#148;, the Custodian will not provide this information to requesting
companies. If a Fund tells the Custodian &#147;yes&#148; or do not check either &#147;yes&#148; or &#147;no&#148; below, the
Custodian is required by the rule to treat such Fund as consenting to disclosure of this
information for all securities owned by such Fund or any funds or accounts established by each
Fund. For each Fund&#146;s protection, the Rule prohibits the requesting company from using such Fund&#146;s
name and address for any purpose other than corporate communications. Please indicate below whether
each Fund consents or objects by checking one of the alternatives below.
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="6%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="89%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:30px; text-indent:-0px">YES
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><FONT face="Wingdings">&#111;</FONT>
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">The Custodian is authorized to release the name, address, and share positions of each Fund listed on Appendix&nbsp;1.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:30px; text-indent:-0px">NO
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><FONT face="Wingdings">&#254;</FONT>
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">The Custodian is not authorized to release the name, address, and share positions of each Fund listed on Appendix&nbsp;1.</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">21.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U>Limitation of Liability.</U></TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The execution of this Contract has been authorized by each Fund&#146;s Board. This Contract is
executed on behalf of each Fund or, in the case of a Fund organized as a business trust, the
trustees of such Fund as trustees and not individually and the obligations of each Fund under this
Contract are not binding upon any of such Fund&#146;s trustees, officers or shareholders individually
but are binding only upon the assets and property of such Fund. A Certificate of Trust in respect
of each Fund organized as a business trust is on file with the Secretary of the Commonwealth of
Massachusetts.
</DIV>



<P align="center" style="font-size: 10pt"><!-- Folio -->19<!-- /Folio -->
</DIV>

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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;IN WITNESS WHEREOF, each of the parties has caused this instrument to be executed in its name
and behalf by its duly authorized representative and its seal to be hereunder affixed as of the 1st
day of May, 1997.
</DIV>


<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">EACH OF THE FUNDS LISTED ON APPENDIX 1 <BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left">/s/ Michael E. Haylon
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">STATE STREET BANK AND TRUST COMPANY<BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left">/s/ Ronald E. Logue
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD colspan="3" align="left">&nbsp;&nbsp;Executive Vice President&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
</TABLE>


<P align="center" style="font-size: 10pt"><!-- Folio -->20<!-- /Folio -->
</DIV>

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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><B>APPENDIX 1</B>
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">Fund Names<BR>
(as of May&nbsp;1, 1997)

</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Phoenix California Tax Exempt Bonds, Inc.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Phoenix Edge Series&nbsp;Fund
</DIV>

<DIV align="left" style="font-size: 10pt; margin-left: 3%; margin-top: 0pt">Real Estate Securities Series
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Phoenix Income and Growth Fund
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Phoenix Multi-Portfolio Fund
</DIV>

<DIV align="left" style="font-size: 10pt; margin-left: 3%; margin-top: 0pt">Phoenix Diversified Income Portfolio<BR>
Phoenix Emerging Markets Bond Portfolio<BR>
Phoenix Endowment Equity Portfolio<BR>
Phoenix Real Estate Securities Portfolio<BR>
Phoenix Mid Cap Portfolio<BR>
Phoenix Tax-Exempt Bond Portfolio
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Phoenix Multi-Sector Fixed Income Fund, Inc.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Phoenix Multi-Sector Short Term Bond Fund
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Phoenix Series&nbsp;Fund
</DIV>

<DIV align="left" style="font-size: 10pt; margin-left: 3%; margin-top: 0pt">Phoenix Aggressive Growth Fund Series<BR>
Phoenix Balanced Fund Series<BR>
Phoenix Convertible Fund Series<BR>
Phoenix Growth Fund Series<BR>
Phoenix High Yield Fund Series<BR>
Phoenix Money Market Series<BR>
Phoenix U.S. Government Securities Fund Series
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Phoenix Strategic Allocation Fund, Inc.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Phoenix Strategic Equity Series&nbsp;Fund
</DIV>

<DIV align="left" style="font-size: 10pt; margin-left: 3%; margin-top: 0pt">Phoenix Equity Opportunities Fund<BR>
Phoenix Micro Cap Fund<BR>
Phoenix Small Cap Fund<BR>
Phoenix Strategic Theme Fund
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Phoenix Duff &#038; Phelps Institutional Mutual Funds
</DIV>

<DIV align="left" style="font-size: 10pt; margin-left: 3%; margin-top: 0pt">Enhanced Reserves Portfolio <BR>Real Estate
Equity Securities Portfolio</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->21<!-- /Folio -->
</DIV>

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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><U>Schedule&nbsp;A</U>

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following foreign banking institutions and foreign securities depositories have been
approved by the Board of each Fund for use as sub-custodians for the Fund&#146;s securities and other
assets:
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt">(Insert banks and securities depositories)
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Certified:
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="16%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="80%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="3" valign="top" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD colspan="3" valign="top" align="left">Fund&#146;s Authorized Officer</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Date:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<P align="center" style="font-size: 10pt"><!-- Folio -->22<!-- /Folio -->
</DIV>

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="center" style="font-size: 10pt; margin-top: 18pt">AMENDMENT TO MASTER CUSTODIAN CONTRACT
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amendment dated February&nbsp;10, 2000, to the custody contract, dated May&nbsp;1, 1997, as
amended, by and between State Street Bank and Trust Company (the
&#147;Custodian&#148;) and <FONT style="font-variant: SMALL-CAPS">Each of
the Parties listed on Appendix </FONT>1, on behalf of each of its Portfolios, (each a
&#147;Fund&#148;) (the &#147;Custodian Contract&#148;).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In consideration of the promises and covenants contained herein, the Custodian and the Fund
hereby agree to amend and replace Section&nbsp;5 of the Custodian Contract as follows:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">5. <U>Proper Instructions</U>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Proper Instructions as used throughout this Contract means a writing signed or initialed by one or
more person or persons as the Board of Trustees shall have from time to time authorized. Each such
writing shall set forth the specific transaction or type of transaction involved, including a
specific statement of the purpose for which such action is requested. Oral instructions will be
considered Proper Instructions if the Custodian reasonably believes them to have been given by a
person authorized to give such instructions with respect to the transaction involved. Each Fund
shall cause all oral instructions to be confirmed in writing. <B>Proper Instructions may include
communications effected directly between electro-mechanical or electronic devices; provided that
the Fund has followed any security procedures agreed to from time to time by Fund and the
Custodian, including, but not limited to, the security procedures selected by the Fund in the Funds
Transfer Agreement. </B>For purposes of this Section, Proper Instructions shall include instructions
received by the Custodian pursuant to any <B>multi-party </B>agreement which requires a segregated asset
account in accordance with Section&nbsp;2.12.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;IN WITNESS WHEREOF, each of the parties has caused this instrument to be executed in its name
and on its behalf by its duly authorized representative as of the 10<SUP style="font-size: 85%; vertical-align: text-top">th</SUP> day of February,
2000.
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="40%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="38%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="18%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">EACH OF THE FUNDS LISTED ON APPENDIX 1</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">By:
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">/s/ Nancy G. Curtiss
<DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Its:
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Treasurer
<DIV style="font-size: 1pt; border-top: 0px solid #000000">&nbsp;</DIV>
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">STATE STREET BANK AND TRUST COMPANY</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">By:
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">/s/ Ronald E. Logue
<DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Its:
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Vice Chairman
<DIV style="font-size: 1pt; border-top: 0px solid #000000">&nbsp;</DIV>
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<P align="center" style="font-size: 10pt"><!-- Folio -->C-1 <!-- /Folio -->
</DIV>

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="center" style="font-size: 10pt; margin-top: 18pt">AMENDMENT TO MASTER CUSTODIAN CONTRACT
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This Amendment to the Master Custodian Contract is made effective as of July&nbsp;2, 2001 by and
between each party listed on Appendix&nbsp;1 affixed to the Master Custodian Contract (as amended from
time to time, the &#147;Fund&#148;) and State Street Bank and Trust Company (the &#147;Custodian&#148; or &#147;Foreign
Custody Manager&#148;). Capitalized terms used in this Amendment without definition shall have the
respective meanings given to such terms in the Master Custodian Contract referred to below.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;WHEREAS, the Fund and the Custodian entered into a Master Custodian Contract dated as of May
1, 1997 (as amended and in effect from time to time, the &#147;Contract&#148;);
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;WHEREAS, the Fund is authorized to issue shares in separate series, with each such series
representing interests in a separate portfolio of securities and other assets, and the Fund has
made each such series subject to the Contract (each such series, together with all other series
subsequently established by the Fund and made subject to the Contract in accordance with the terms
thereof, shall be referred to as a &#147;Portfolio&#148;, and, collectively, the &#147;Portfolios&#148;); and
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;WHEREAS, the Fund and the Custodian desire to amend certain provisions of the Contract to
reflect revisions to Rule&nbsp;17f-5 (&#147;Rule&nbsp;17f-5&#148;) and the adoption of Rule&nbsp;17f-7 (&#147;Rule&nbsp;17f-7&#148;)
promulgated under the Investment Company Act of 1940, as amended (the &#147;1940 Act&#148;).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;NOW THEREFORE, in consideration of the foregoing and the mutual covenants and agreements
hereinafter contained, the parties hereby agree to amend the Contract, pursuant to the terms
thereof, as follows:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">I.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Articles 3 through 21 of the Contract are hereby renumbered, as of the effective date of this
Amendment, as</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Articles 4 through 22, respectively.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">II.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>New Article&nbsp;3 is hereby added, as of the effective date of this Amendment, as set
forth below.</TD>
</TR>

</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>3. </B><U><B>Provisions Relating to Rules 17f-5 and 17f-7</B></U>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>3.1. </B><B><U>Definitions</U>.</B> Capitalized terms in this Amendment shall have the following meanings:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&#147;Country Risk&#148; means all factors reasonably related to the systemic risk of holding Foreign Assets
in a particular country including, but not limited to, such country&#146;s political environment,
economic and financial infrastructure (including any Eligible Securities Depository operating in
the country), prevailing or developing custody and settlement practices, and laws and regulations
applicable to the safekeeping and recovery of Foreign Assets held in custody in that country.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&#147;Eligible Foreign Custodian&#148; has the meaning set forth in section (a)(1) of
Rule&nbsp;17f-5.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&#147;Eligible Securities Depository&#148; has the meaning set forth in
section (b)(1) of Rule&nbsp;17f-7.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&#147;Foreign Assets&#148; means any of the Portfolios&#146; investments (including foreign currencies) for
which the primary market is outside the United States and such cash and cash equivalents as
are reasonably necessary to effect the Portfolios&#146; transactions in such investments.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&#147;Foreign Custody Manager&#148; has the meaning set forth in section (a)(3) of Rule&nbsp;17f-5.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>3.2.
<U>The Custodian as Foreign Custody Manager</U>.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>3.2.1 </B><B><U>Delegation to the Custodian as Foreign Custody Manager</U>.</B> The Fund, by
resolution adopted by its Board of Trustees or its Board of Directors, as applicable (the &#147;Board&#148;),
hereby delegates to the Custodian, subject to Section (b)&nbsp;of Rule&nbsp;17f-5, the responsibilities set
forth in this Section&nbsp;3.2 with respect to Foreign Assets of
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">the Portfolios held outside the United States, and the Custodian hereby accepts such delegation as
Foreign Custody Manager with respect to the Portfolios.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>3.2.2 </B><B><U>Countries Covered</U>.</B> The Foreign Custody Manager shall be responsible for
performing the
delegated responsibilities defined below only with respect to the countries and custody
arrangements for each such
country listed on Schedule&nbsp;A to this Contract, which list of countries may be amended from
time to time by the Fund
with the agreement of the Foreign Custody Manager. The Foreign Custody Manager shall list on
Schedule&nbsp;A the
Eligible Foreign Custodians selected by the Foreign Custody Manager to maintain the assets of
the Portfolios, which
list of Eligible Foreign Custodians may be amended from time to time in the sole discretion of
the Foreign Custody
Manager. The Foreign Custody Manager will provide amended versions of Schedule&nbsp;A in accordance
with Section
3.2.5 hereof.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Upon the receipt by the Foreign Custody Manager of Proper Instructions to open an account or to
place or maintain Foreign Assets in a country listed on Schedule&nbsp;A, and the fulfillment by the
Fund, on behalf of the Portfolios, of the applicable account opening requirements for such country,
the Foreign Custody Manager shall be deemed to have been delegated by the Board on behalf of the
Portfolios responsibility as Foreign Custody Manager with respect to that country and to have
accepted such delegation. Execution of this Amendment by the Fund shall be deemed to be a Proper
Instruction to open an account, or to place or maintain Foreign Assets, in each country listed on
Schedule&nbsp;A in which the Custodian has previously placed or currently maintains Foreign Assets
pursuant to the terms of the Contract. Following the receipt of Proper Instructions directing the
Foreign Custody Manager to close the account of a Portfolio with the Eligible Foreign Custodian
selected by the Foreign Custody Manager in a designated country, the delegation by the Board on
behalf of the Portfolios to the Custodian as Foreign Custody Manager for that country shall be
deemed to have been withdrawn and the Custodian shall immediately cease to be the Foreign Custody
Manager of the Portfolios with respect to that country.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Foreign Custody Manager may withdraw its acceptance of delegated responsibilities with respect
to a designated country upon written notice to the Fund. Thirty days (or such longer period to
which the parties agree in writing) after receipt of any such notice by the Fund, the Custodian
shall have no further responsibility in its capacity as Foreign Custody Manager to the Fund with
respect to the country as to which the Custodian&#146;s acceptance of delegation is withdrawn.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>3.2.3 </B><B><U>Scope of Delegated Responsibilities</U>:</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>(a) </B><B><U>Selection of Eligible Foreign Custodians</U>.</B> Subject to the provisions of this
Section&nbsp;3.2,
the Foreign Custody Manager may place and maintain the Foreign Assets in the care of the
Eligible Foreign
Custodian selected by the Foreign Custody Manager in each country listed on Schedule&nbsp;A, as
amended from time to
time. In performing its delegated responsibilities as Foreign Custody Manager to place or
maintain Foreign Assets
with an Eligible Foreign Custodian, the Foreign Custody Manager shall determine that the
Foreign Assets will be
subject to reasonable care, based on the standards applicable to custodians in the country in
relevant market, after
considering all factors relevant to the safekeeping of such assets, including, without
limitation the factors specified in
Rule&nbsp;17f-5(c)(l).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>(b) </B><B><U>Contracts With Eligible Foreign Custodians</U>.</B> The Foreign Custody Manager shall
determine that the contract governing the foreign custody arrangements with each Eligible
Foreign Custodian
selected by the Foreign Custody Manager will satisfy the requirements of Rule
17f-5(c)(2).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>(c) </B><B><U>Monitoring</U>.</B> In each case in which the Foreign Custody Manager maintains Foreign
Assets with an Eligible Foreign Custodian selected by the Foreign Custody Manager, the Foreign
Custody Manager
shall establish a system to monitor (i)&nbsp;the appropriateness of maintaining the Foreign Assets
with such Eligible
Foreign Custodian and (ii)&nbsp;the performance of the contract governing the custody arrangements
established by the
Foreign Custody Manager with the Eligible Foreign Custodian. In the event the Foreign Custody
Manager
determines that the custody arrangements with an Eligible Foreign Custodian it has selected
are no longer
appropriate, the Foreign Custody Manager shall notify the Board in accordance with Section
3.2.5 hereunder.
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>3.2.4 </B><B><U>Guidelines for the Exercise of Delegated Authority</U>.</B> For purposes of this Section
3.2, the Board
shall be deemed to have considered and determined to accept such Country Risk as is incurred
by placing and
maintaining the Foreign Assets in each country for which the Custodian is serving as Foreign
Custody Manager of
the Portfolios, provided that this shall not affect the standard of care set forth in Section
3.2.6.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>3.2.5 </B><B><U>Reporting Requirements</U>.</B> The Foreign Custody Manager shall report the withdrawal
of the
Foreign Assets from an Eligible Foreign Custodian and the placement of such Foreign Assets
with another Eligible
Foreign Custodian by providing to the Board an amended Schedule&nbsp;A at the end of the calendar
quarter in which an
amendment to such Schedule has occurred. The Foreign Custody Manager shall make written
reports notifying the
Board of any other material change in the foreign custody arrangements of the Portfolios
described in this Section
3.2 after the occurrence of the material change.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>3.2.6
<U>Standard of Care as Foreign Custody Manager of a Portfolio</U>. </B>In performing the
responsibilities delegated to it, the Foreign Custody Manager agrees to exercise reasonable
care, prudence and
diligence such as a person having responsibility for the safekeeping of Foreign Assets of
management investment
companies registered under the 1940 Act would exercise.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>3.2.7
</B><B><U>Representations with Respect to Rule&nbsp;17f-5</U>.</B> The Foreign Custody Manager
represents to the
Fund that it is a U.S. Bank as defined in section (a)(7) of Rule&nbsp;17f-5. The Fund represents to
the Custodian that the
Board has determined that it is reasonable for the Board to rely on the Custodian to perform
the responsibilities
delegated pursuant to this Contract to the Custodian as the Foreign Custody Manager of the
Portfolios.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>3.2.8 </B><B><U>Effective Date and Termination of the Custodian as Foreign Custody Manager</U>.</B> The
Board&#146;s
delegation to the Custodian as Foreign Custody Manager of the Portfolios shall be effective as
of the date hereof and
shall remain in effect until terminated at any time, without penalty, by written notice from
the terminating party to the
non-terminating party. Termination will become effective thirty (30)&nbsp;days after receipt by the
non-terminating party
of such notice. The provisions of Section&nbsp;3.2.2 hereof shall govern the delegation to and
termination of the
Custodian as Foreign Custody Manager of the Portfolios with respect to designated countries.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>3.3
<U>Eligible Securities Depositories</U>.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>3.3.1 </B><B><U>Analysis and Monitoring</U>.</B> The Custodian shall (a)&nbsp;provide the Fund (or its
duly-authorized
investment manager or investment adviser) with an analysis of the custody risks associated
with maintaining assets
with the Eligible Securities Depositories set forth on Schedule&nbsp;B hereto in accordance with
section (a)(l)(i)(A) of
Rule&nbsp;17f-7, and (b)&nbsp;monitor such risks on a continuing basis, and promptly notify the Fund (or
its duly-authorized
investment manager or investment adviser) of any material change in such risks, in accordance
with <FONT style="white-space: nowrap">section&nbsp;(a)(l)(i)(B)</FONT> of Rule&nbsp;17f-7.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>3.3.2 </B><B><U>Standard of Care</U>.</B> The Custodian agrees to exercise reasonable care, prudence and
diligence in
performing the duties set forth in Section&nbsp;3.3.1.
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">III.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Except as specifically superseded or modified herein, the terms and provisions of the
Contract shall
continue to apply with full force and effect. In the event of any conflict between the terms
of the Contract prior to this Amendment and this Amendment, the terms of this Amendment
shall prevail. If the Custodian is delegated the responsibilities of Foreign Custody Manager
pursuant to the terms of Article&nbsp;3 hereof, in the event of any conflict between the
provisions of Articles 3 and 4, the provisions of Article&nbsp;3 shall prevail.</TD>
</TR>

</TABLE>
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;IN WITNESS WHEREOF, each of the parties has caused this Amendment to be executed in its
name and behalf by its duly authorized representative as of the date first above written.
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="40%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="17%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="38%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><FONT style="font-variant: SMALL-CAPS">Witnessed By:</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">STATE STREET BANK and TRUST COMPANY</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">

<TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">/s/ Raelene S. LaPlante
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">By:
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">/s/ Joseph L. Hooley</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top" style="border-top: 1px solid #000000"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Raelene S. LaPlante
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Name:
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Joseph L. Hooley</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">V.P. &#038; Senior Counsel
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Title:
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Executive Vice President</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><FONT style="font-variant: SMALL-CAPS">Fund Signature Witnessed By:</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left"><FONT style="font-variant: SMALL-CAPS">Each of the Funds listed on Appendix </FONT>1:</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">/s/ Pamela S. Sinofsky
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">By:
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">/s/ Nancy J. Curtiss</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top" style="border-top: 1px solid #000000"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Pamela S. Sinofsky
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Name:
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Nancy J. Curtiss</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Assistant Secretary
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Title:
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Treasurer</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="center" style="font-size: 10pt; margin-top: 18pt">AMENDMENT TO MASTER CUSTODIAN CONTRACT
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This Amendment to the Master Custodian Contract is made effective as of May&nbsp;10, 2002 by and
between each party listed on Appendix&nbsp;1 affixed to the Master Custodian Contract (as amended from
time to time, the &#147;Fund&#148;) and State Street Bank and Trust Company (the &#147;Custodian&#148; or &#147;Foreign
Custody Manager&#148;). Capitalized terms used in this Amendment without definition shall have the
respective meanings given to such terms in the Master Custodian Contract referred to below.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;WHEREAS, the Fund and the Custodian entered into a Master Custodian Contract dated as of May
1, 1997 (as amended and in effect from time to time, the &#147;Contract&#148;);
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;WHEREAS, the Fund is authorized to issue shares in separate series, with each such series
representing interests in a separate portfolio of securities and other assets, and the Fund has
made each such series subject to the Contract (each such series, together with all other series
subsequently established by the Fund and made subject to the Contract in accordance with the terms
thereof, shall be referred to as a &#147;Portfolio&#148;, and, collectively, the &#147;Portfolios&#148;); and
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;WHEREAS, the Fund and the Custodian desire to amend and restate certain provisions of the
Contract relating to the custody of assets of each of the Portfolios held outside of the United
States.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;NOW THEREFORE, in consideration of the foregoing and the mutual covenants and agreements
hereinafter contained, the parties hereby agree to amend the Contract, pursuant to the terms
thereof, as follows:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">I.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Articles 4 through 21 of the Contract are hereby renumbered, as of the effective date of this
Amendment, as
Articles 5 through 22, respectively.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">II.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>New Article&nbsp;4 of the Contract is hereby added, as of
the effective date of this Amendment, as set forth
below.</TD>
</TR>

</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>4.
</B><U><B>Duties of the Custodian with Respect to Property of the
Portfolios Held Outside the United States</B></U><B>.</b>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>4.1
</B><U><B>Definitions</B></U><B>.</b> Capitalized terms in this Article&nbsp;4 shall have the
following meanings:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&#147;Foreign Securities System&#148; means an Eligible Securities Depository listed on Schedule&nbsp;B.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&#147;Foreign Sub-Custodian&#148; means a foreign banking institution serving as an Eligible Foreign
Custodian.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>4.2.
</B><U><B>Holding Securities</B></U><b>.</b> The Custodian shall identify on its books as belonging to the
Portfolios the foreign
securities held by each Foreign Sub-Custodian or Foreign Securities System. The Custodian may hold
foreign
securities for all of its customers, including the Portfolios, with any Foreign Sub-Custodian in an
account that is
identified as belonging to the Custodian for the benefit of its customers, provided however, that
(i)&nbsp;the records of the
Custodian with respect to foreign securities of the Portfolios which are maintained in such account
shall identify
those securities as belonging to the Portfolios and (ii), to the extent permitted and customary in
the market in which
the account is maintained, the Custodian shall require that securities so held by the Foreign
Sub-Custodian be held
separately from any assets of such Foreign Sub-Custodian or of other customers of such Foreign
Sub-Custodian.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>4.3.
</B><U><B>Foreign Securities Systems</B></U><B>.</B> Foreign securities shall be maintained in a Foreign
Securities System in a
designated country through arrangements implemented by the Custodian or a Foreign Sub-Custodian, as
applicable,
in such country.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>4.4.
</B><u><B>Transactions in Foreign Custody Account</B></U><B>.</b>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>4.4.1.
</B><U><B>Delivery of Foreign Assets</B></U><b>.</b> The Custodian or a Foreign Sub-Custodian
shall release and deliver foreign securities of the Portfolios held by the Custodian or such
Foreign Sub-Custodian, or in a Foreign Securities System account, only upon receipt of Proper
Instructions, which may be continuing instructions when deemed appropriate by the parties, and only
in the following cases:
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->C-1<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="left">(i)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>upon the sale of such foreign securities for the Portfolio in accordance with
commercially
reasonable market practice in the country where such foreign securities are held or
traded, including, without limitation: (A)&nbsp;delivery against expectation of receiving
later payment; or (B)&nbsp;in the case of a sale effected through a Foreign Securities
System, in accordance with the rules governing the operation of the Foreign
Securities System;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="left">(ii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>in connection with any repurchase agreement related to foreign securities;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="left">(iii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>to the depository agent in connection with tender or other similar
offers for foreign securities of the Portfolios;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="left">(iv)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>to the issuer thereof or its agent when such foreign securities are
called, redeemed, retired or otherwise become payable;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="left">(v)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>to the issuer thereof, or its agent, for transfer into the name of the
Custodian (or the name of the respective Foreign Sub-Custodian or of any nominee of the
Custodian or such Foreign Sub-Custodian) or for exchange for a different number of
bonds, certificates or other evidence representing the same aggregate face amount or
number of units;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="left">(vi)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>to brokers, clearing banks or other clearing agents for examination or trade
execution in
accordance with market custom; provided that in any such case the Foreign
Sub-Custodian shall have no responsibility or liability for any loss arising from
the delivery of such securities prior to receiving payment for such securities
except as may arise from the Foreign Sub-Custodian&#146;s own negligence or willful
misconduct;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="left">(vii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>for exchange or conversion pursuant to any plan of merger, consolidation,
recapitalization,
reorganization or readjustment of the securities of the issuer of such
securities, or pursuant to provisions for conversion contained in such
securities, or pursuant to any deposit agreement;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="left">(viii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>in the case of warrants, rights or similar foreign securities, the surrender
thereof in the exercise of such warrants, rights or similar securities or the surrender
of interim receipts or temporary securities for definitive securities;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="left">(ix)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>for delivery as security in connection with any borrowing by the
Portfolios requiring a pledge of assets by the Portfolios;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="left">(x)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>in connection with trading in options and futures contracts, including
delivery as original margin and variation margin;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="left">(xi)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>in connection with the lending of foreign securities; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="left">(xii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>for any other purpose, but only upon receipt of Proper Instructions specifying the
foreign securities to be delivered and naming the person or persons to whom delivery of such
securities shall be made.
</TD>
</TR>

</TABLE>
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>4.4.2.
</B><U><B>Payment of Portfolio Monies</B></U><b>.</b> Upon receipt of Proper Instructions, which may
be continuing instructions when deemed appropriate by the parties, the Custodian shall pay out, or
direct the respective Foreign Sub-Custodian or the respective Foreign Securities System to pay out,
monies of a Portfolio in the following cases only:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="left">(i)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>upon the purchase of foreign securities for the Portfolio, unless otherwise directed by
Proper
Instructions, by (A)&nbsp;delivering money to the seller thereof or to a dealer therefor
(or an agent for such seller or dealer) against expectation of receiving later
delivery of such foreign securities; or (B)&nbsp;in the case of a purchase effected
through a Foreign Securities System, in accordance with the rules governing the
operation of such Foreign Securities System;</TD>
</TR>

</TABLE>
</DIV>


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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="left">(ii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>in connection with the conversion, exchange or surrender of foreign securities
of the Portfolio;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="left">(iii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>for the payment of any expense or liability of the Portfolio, including but not
limited to the following payments: interest, taxes, investment advisory fees, transfer agency fees,
fees under this Contract, legal fees, accounting fees, and other operating expenses;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="left">(iv)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>for the purchase or sale of foreign exchange or foreign exchange
contracts for the Portfolio, including transactions executed with or through the
Custodian or its Foreign Sub-Custodians;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="left">(v)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>in connection with trading in options and futures contracts, including
delivery as original margin and variation margin;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="left">(vi)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>for payment of part or all of the dividends received in respect of
securities sold short;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="left">(vii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>in connection with the borrowing or lending of
foreign securities; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="left">(viii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>for any other purpose, but only upon receipt of Proper Instructions specifying the
amount of such payment and naming the person or persons to whom such payment is to be made.
</TD>
</TR>

</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>4.4.3.
</B><U><B>Market Conditions</B></U><b>.</b> Notwithstanding any provision of this Contract to the
contrary, settlement and payment for Foreign Assets received for the account of the Portfolios and
delivery of Foreign Assets maintained for the account of the Portfolios may be effected in
accordance with the customary established securities trading or processing practices and procedures
in the country or market in which the transaction occurs, including, without limitation, delivering
Foreign Assets to the purchaser thereof or to a dealer therefor (or an agent for such purchaser or
dealer) with the expectation of receiving later payment for such Foreign Assets from such purchaser
or dealer.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Custodian shall provide to the Board the information with respect to custody and settlement
practices in countries in which the Custodian employs a Foreign Sub-Custodian described on Schedule
C hereto at the time or times set forth on such Schedule. The Custodian may revise Schedule&nbsp;C from
time to time, provided that no such revision shall result in the Board being provided with
substantively less information than had been previously provided hereunder.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>4.5.
</B><U><B>Registration of Foreign Securities</B></U><b>.</b> The foreign securities maintained in the
custody of a Foreign Sub-Custodian (other than bearer securities) shall be registered in the name
of the applicable Portfolio or in the name of the Custodian or in the name of any Foreign
Sub-Custodian or in the name of any nominee of the foregoing, and the Fund on behalf of such
Portfolio agrees to hold any such nominee harmless from any liability as a holder of record of such
foreign securities, in the absence of the nominee&#146;s negligence and willful misconduct. The
Custodian or a Foreign Sub-Custodian shall not be obligated to accept securities on behalf of a
Portfolio under the terms of this Contract unless the form of such securities and the manner in
which they are delivered are in accordance with reasonable market practice.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>4.6
</B><U><B>Bank Accounts</B></U><B>.</b> The Custodian shall identify on its books as belonging to the Fund cash
(including cash denominated in foreign currencies) deposited with the Custodian. Where the
Custodian is unable to maintain, or market practice does not facilitate the maintenance of, cash on
the books of the Custodian, a bank account or bank accounts shall be opened and maintained outside
the United States on behalf of a Portfolio with a Foreign Sub-Custodian. All accounts referred to
in this Section shall be subject only to draft or order by the Custodian (or, if applicable, such
Foreign Sub-Custodian) acting pursuant to the terms of this Agreement to hold cash received by or
from or for the account of the Portfolio. Cash maintained on the books of the Custodian (including
its branches, subsidiaries and affiliates), regardless of currency denomination, is maintained in
bank accounts established under, and subject to the laws of, The Commonwealth of Massachusetts.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>4.7.
</B><U><B>Collection of Income</B></U><b>.</B> The Custodian shall use reasonable commercial efforts to
collect all income and other payments with respect to the Foreign Assets held hereunder to which
the Portfolios shall be entitled and shall credit such income, as collected, to the applicable
Portfolio. In the event that extraordinary measures are required to collect such income, the Fund
and the Custodian shall consult as to such measures and as to the compensation and expenses of the
Custodian relating to such measures.
</DIV>



<P align="center" style="font-size: 10pt"><!-- Folio -->C-3<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>4.8 </B><U><B>Shareholder Rights</B></U><B>.</B> With respect to the foreign securities held pursuant to
this Article&nbsp;4, the Custodian will use reasonable commercial efforts to facilitate the exercise of
voting and other shareholder rights, subject always to the laws, regulations and practical
constraints that may exist in the country where such securities are issued. The Fund acknowledges
that local conditions, including lack of regulation, onerous procedural obligations, lack of notice
and other factors may have the effect of severely limiting the ability of the Fund to exercise
shareholder rights.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>4.9. </B><U><B>Communications Relating to Foreign Securities</B></U><B>.</B> The Custodian shall transmit promptly
to the Fund
written information with respect to materials received by the Custodian via the Foreign
Sub-Custodians from issuers
of the foreign securities being held for the account of the Portfolios (including, without
limitation, pendency of calls
and maturities of foreign securities and expirations of rights in connection therewith). With
respect to tender or
exchange offers, the Custodian shall transmit promptly to the Fund written information with respect
to materials so
received by the Custodian from issuers of the foreign securities whose tender or exchange is sought
or from the
party (or its agents) making the tender or exchange offer. Absent negligence and willful misconduct
on the part of
the Custodian, the Custodian shall not be liable for any untimely exercise of any tender, exchange
or other right or
power in connection with foreign securities or other property of the Portfolios at any time held by
it unless (i)&nbsp;the
Custodian or the respective Foreign Sub-Custodian is in actual possession of such foreign
securities or property and
(ii)&nbsp;the Custodian receives Proper Instructions with regard to the exercise of any such right or
power, and both (i)
and (ii)&nbsp;occur at least three business days prior to the date on which the Custodian is to take
action to exercise such
right or power.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>4.10.
<u> Liability of Foreign Sub-Custodians</u></B><b>.</b>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Each agreement pursuant to which the Custodian employs a Foreign Sub-Custodian shall, to the
extent possible, require the Foreign Sub-Custodian to exercise reasonable care in the performance
of its duties, and to indemnify, and hold harmless, the Custodian from and against any loss,
damage, cost, expense, liability or claim arising out of or in connection with the Foreign
Sub-Custodian&#146;s performance of such obligations. At the Fund&#146;s election, the Portfolios
shall be entitled to be subrogated to the rights of the Custodian with respect to any claims
against a Foreign Sub-Custodian as a consequence of any such loss, damage, cost, expense, liability
or claim if and to the extent that the Portfolios have not been made whole for any such loss,
damage, cost, expense, liability or claim.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>4.11.
</B><U><B>Tax Law</B></U><B>.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Custodian shall have no responsibility or liability for any obligations now or hereafter
imposed on the Fund, the Portfolios or the Custodian as custodian of the Portfolios by the tax law
of the United States or of any state or political subdivision thereof. It shall be the
responsibility of the Fund to notify the Custodian of the obligations imposed on the Fund with
respect to the Portfolios or the Custodian as custodian of the Portfolios by the tax law of
countries other than those mentioned in the above sentence, including responsibility for
withholding and other taxes, assessments or other governmental charges, certifications and
governmental reporting. The sole responsibility of the Custodian with regard to such tax law shall
be to use reasonable efforts to assist the Fund with respect to any claim for exemption or refund
under the tax law of countries for which the Fund has provided such information.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>4.12.
</B><U><B>Liability of Custodian</B></U><B>.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Except as may arise from the Custodian&#146;s own negligence or willful misconduct or the
negligence or willful misconduct of a Sub-Custodian, the Custodian shall be without liability to
the Fund for any loss, liability, claim or expense resulting from or caused by anything which is
part of Country Risk.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Custodian shall be liable for the acts or omissions of a Foreign Sub-Custodian to the same
extent as set forth with respect to sub-custodians generally in the Contract and, regardless of
whether assets are maintained in the custody of a Foreign Sub-Custodian or a Foreign Securities
System, the Custodian shall not be liable for any loss, damage, cost, expense, liability or claim
resulting from nationalization, expropriation, currency restrictions, or acts of war or terrorism,
or any other loss where the Sub-Custodian has otherwise acted with reasonable care.
</DIV>



<P align="center" style="font-size: 10pt"><!-- Folio -->C-4<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">III.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Except as specifically superseded or modified herein, the terms and provisions of the
Contract
shall continue to apply with full force and effect. In the event of any conflict
between the terms of the Contract prior to this Amendment and this Amendment,
the terms of this Amendment shall prevail. If the Custodian is delegated the
responsibilities of Foreign Custody Manager pursuant to the terms of Article&nbsp;3,
in the event of any conflict between the provisions of Articles 3 and 4 hereof,
the provisions of Article&nbsp;3 shall prevail.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;IN WITNESS WHEREOF, each of the parties has caused this Amendment to be executed in its
name and behalf by its duly authorized representative as of the date first above written.
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="40%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="40%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="16%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><FONT style="font-variant: SMALL-CAPS">Witnessed By: </FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">STATE STREET BANK and TRUST COMPANY</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">/s/ Jean Carr
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">By:
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">/s/ Joseph L. Hooley</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
Jean Carr
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Name:
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
Joseph L. Hooley
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Counsel
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Title:
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Executive Vice President</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><FONT style="font-variant: SMALL-CAPS">Fund Signature Witnessed By:</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>

<TD colspan="3" valign="top" align="left"><FONT style="font-variant: SMALL-CAPS">Each of the Funds listed on Appendix </FONT>1:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">/s/ Noreen M. O&#146;Connell
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">By:
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">/s/ Richard J. Wirth</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
Noreen M. O&#146;Connell
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Name:
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
Richard J. Wirth
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Paralegal IV
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Title:
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Secretary</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->C-5<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>SCHEDULE C<BR> MARKET
INFORMATION</B>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="30%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="65%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000"><B>Publication/Type of Information</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Brief Description</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left"><B>(scheduled frequency)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<tr><td>&nbsp;</td></tr>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><u><I>The Guide to Custody in World Markets</I></u><br>
(hardcopy annually and regular website
updates)
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">An overview of settlement and safekeeping procedures,
custody practices and foreign investor considerations for the
markets in which State Street offers custodial services.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><u><I>Global Custody Network Review</I></u><br>
(annually)
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Information relating to Foreign Sub-Custodians in State
Street&#146;s Global Custody Network. The Review stands as an integral
part of the materials that State Street provides to its U.S. mutual
fund clients to assist them in complying with SEC Rule&nbsp;17f-5. The
Review also gives insight into State Street&#146;s market expansion and
Foreign Sub-Custodian selection processes, as well as the
procedures and controls used to monitor the financial condition and
performance of our Foreign Sub-Custodian banks.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><u><I>Securities Depository Review </I></u><br>
(annually)
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Custody risk analyses of the Foreign Securities Depositories
presently operating in Network markets. This publication is an
integral part of the materials that State Street provides to its
U.S. mutual fund clients to meet informational obligations created
by SEC Rule&nbsp;17f-7.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><u><I>Global Legal Survey</I></u><br> (annually)
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">With respect to each market in which State Street offers
custodial services, opinions relating to whether local law
restricts (i)&nbsp;access of a fund&#146;s independent public accountants to
books and records of a Foreign Sub-Custodian or Foreign Securities
System, (ii)&nbsp;a fund&#146;s ability to recover in the event of bankruptcy
or insolvency of a Foreign Sub-Custodian or Foreign Securities
System, (iii)&nbsp;a fund&#146;s ability to recover in the event of a loss by
a Foreign Sub-Custodian or Foreign Securities System, and (iv)&nbsp;the
ability of a foreign investor to convert cash and cash equivalents
to U.S. dollars</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><u><I>Subcustodian Agreements</I></u><br> (annually)
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Copies of the contracts that State Street has entered into
with each Foreign Sub-Custodian that maintains U.S. mutual fund
assets in the markets in which State Street offers custodial
services.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><u><I>Global Market Bulletin</I></u><br> (daily or as
necessary)
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Information on changing settlement and custody conditions in
markets where State Street offers custodial services. Includes
changes in market and tax regulations, depository developments,
dematerialization information, as well as other market changes that
may impact State Street&#146;s clients.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Foreign Custody Advisories<br> (as
necessary)
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">For those markets where State Street offers custodial
services that exhibit special risks or infrastructures impacting
custody, State Street issues market advisories to highlight those
unique market factors which might impact our ability to offer
recognized custody service levels.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Material Change Notices <br>(presently on
a quarterly basis or as otherwise
necessary)
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Informational letters and accompanying materials confirming
State Street&#146;s foreign custody arrangements, including a summary of
material changes with Foreign Sub-Custodians that have occurred
during the previous quarter. The notices also identify any material
changes in the custodial risks associated with maintaining
assets with Foreign Securities Depositories.</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<P align="center" style="font-size: 10pt"><!-- Folio -->C-6<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="center" style="font-size: 10pt; margin-top: 18pt">Phoenix Portfolios<BR>
The Zweig Fund, Inc.<BR>
The Zweig Total Return Fund, Inc.
</DIV>


<DIV align="left" style="font-size: 10pt">State Street Bank and Trust Company</DIV>



<DIV align="left" style="font-size: 10pt">Lafayette Corporate Center</DIV>



<DIV align="left" style="font-size: 10pt">Legal Division LCC/2S</DIV>



<DIV align="left" style="font-size: 10pt">2 Avenue de Lafayette</DIV>



<DIV align="left" style="font-size: 10pt">Boston, MA 02111</DIV>



<DIV align="left" style="font-size: 10pt">Attention: Jean S. Carr</DIV>



<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="left">Re:</TD>
    <TD width="1%">&nbsp;</TD>
    <TD> <B>Phoenix Portfolios, </B>on behalf of its series Phoenix Market Neutral Fund<br>
<B>The Zweig Fund, Inc.</B><BR><B>
The Zweig Total Return Fund, Inc.</B></TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Ladies and Gentlemen:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">This is to advise you that we intend to move custody for Phoenix Market Neutral Fund, a series of
Phoenix Portfolios, The Zweig Fund, Inc., and The Zweig Total Return Fund, Inc. (each, a &#147;Fund&#148;),
from Bank of New York to State Street Bank and Trust Company, per instructions from the Funds,
effective as of October&nbsp;21, 2005. In accordance with the Additional Funds provision of Section&nbsp;17
of the Custodian Contract, dated as of May&nbsp;1, 1997, between each of the parties listed on Appendix
1 and State Street Bank and Trust Company, by this letter the Funds below hereby request that you
act as Custodian for the Funds under the terms of the aforementioned contract. Attached is an
amended Appendix&nbsp;1 to the Custodian Contract.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Please indicate your acceptance of the foregoing by executing two copies of this letter agreement,
returning one to the Funds and retaining one copy for your records.
</DIV>

<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" nowrap align="left">Sincerely,<BR>

<BR>
<B>Phoenix Portfolios, </B>on behalf of its series Phoenix Market Neutral
Fund
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR><TD>&nbsp;</TD></TR>

<TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left">/s/ Nancy G. Curtiss
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left">Nancy G. Curtiss&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left">Chief Financial Officer and Treasurer&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt"><!-- Folio --><!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>

</TABLE>

<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left"><B>The Zweig Fund, Inc.<BR>
The Zweig Total Return Fund, Inc.</B><BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left">/s/ Nancy G. Curtiss
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left">Nancy G. Curtiss&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left">Treasurer&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
</TABLE>

<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>

    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="60">&nbsp;</TD>
</TR>
<TR>

    <TD colspan="3" align="left"><B>Agreed and Accepted:<BR>
<BR>
STATE STREET BANK AND TRUST COMPANY</B> <BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>

    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left">
/s/ Joseph L. Hooley
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>


    <TD valign="top" colspan="2">Name:&nbsp;&nbsp;</TD>
    <TD align="left">Joseph L. Hooley&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>


    <TD valign="top" colspan="2">Title:&nbsp;&nbsp;</TD>
    <TD align="left">Executive Vice President     </TD>
    <TD> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Date: Oct 21, 2005&nbsp;</TD>
</TR>
<TR>
    <TD colspan="4">&nbsp;</TD>
</TR>
</TABLE>


<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><B>Appendix&nbsp;1</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>FUND NAMES<BR>
(as of October&nbsp;1, 2005)</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Phoenix Funds</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Phoenix-Engemann Funds:</B><BR>
Phoenix All-Cap Growth Fund<BR>
Phoenix Balanced Return Fund<BR>
Phoenix Nifty Fifty Fund<BR>
Phoenix Small-Cap Growth Fund

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Phoenix Equity Trust:</B>
</DIV>


<DIV align="left" style="font-size: 10pt">Phoenix Mid-Cap Value Fund </DIV>



<DIV align="left" style="font-size: 10pt">Phoenix Pathfinder Fund <br>Phoenix Total Value Fund </DIV>



<DIV align="left" style="font-size: 10pt">Phoenix Relative Value Fund</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Phoenix Equity Series&nbsp;Fund:</B>
</DIV>


<DIV align="left" style="font-size: 10pt">Phoenix Growth &#038; Income Fund</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Phoenix CA Tax-Exempt Bond Fund</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Phoenix Institutional Mutual Funds:</B>
</DIV>


<DIV align="left" style="font-size: 10pt">Phoenix Institutional Bond Fund</DIV>



<DIV align="left" style="font-size: 10pt">Phoenix Low-Duration Core Plus Bond Fund</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Phoenix Investment Series&nbsp;Fund:</B>
</DIV>


<DIV align="left" style="font-size: 10pt">Phoenix Global Utilities Fund </DIV>



<DIV align="left" style="font-size: 10pt">Phoenix Income &#038; Growth Fund</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Phoenix Investment Trust 97:</B>
</DIV>


<DIV align="left" style="font-size: 10pt">Phoenix Small-Cap Value Fund </DIV>



<DIV align="left" style="font-size: 10pt">Phoenix Value Equity Fund</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Phoenix-Kayne Funds:</B>
</DIV>


<DIV align="left" style="font-size: 10pt">Phoenix CA Intermediate Tax-Free Bond Fund </DIV>



<DIV align="left" style="font-size: 10pt">Phoenix Intermediate Bond Fund<br> Phoenix Overseas Fund </DIV>



<DIV align="left" style="font-size: 10pt">Phoenix Rising Dividends Fund <br>Phoenix Small-Mid Cap Fund</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Phoenix Multi-Portfolio Fund:</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">Phoenix Emerging Markets Bond Fund
</DIV>


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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="left" style="font-size: 10pt">Phoenix Real Estate Securities Fund</DIV>



<DIV align="left" style="font-size: 10pt">Phoenix Tax-Exempt Bond Fund</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Phoenix Multi-Series&nbsp;Trust:</B>
</DIV>


<DIV align="left" style="font-size: 10pt">Phoenix Multi-Sector Fixed Income Fund</DIV>



<DIV align="left" style="font-size: 10pt">Phoenix Multi-Sector Short Term Bond Fund</DIV>



<DIV align="left" style="font-size: 10pt">Phoenix High Yield Securities Fund</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Phoenix PHOLIOs</B><SUP style="font-size: 85%; vertical-align: text-top"><B>(sm)</B></SUP><B>:</B>
</DIV>


<DIV align="left" style="font-size: 10pt">Phoenix Conservative Income PHOLIO<SUP style="font-size: 85%; vertical-align: text-top">(sm) </SUP></DIV>



<DIV align="left" style="font-size: 10pt">Phoenix Wealth Accumulator PHOLIO<SUP style="font-size: 85%; vertical-align: text-top">(sm)</SUP></DIV>



<DIV align="left" style="font-size: 10pt">Phoenix Wealth Builder PHOLIO<SUP style="font-size: 85%; vertical-align: text-top">(sm) </SUP></DIV>



<DIV align="left" style="font-size: 10pt">Phoenix Wealth Guardian PHOLIO<SUP style="font-size: 85%; vertical-align: text-top">(sm)</SUP></DIV>



<DIV align="left" style="font-size: 10pt">Phoenix Wealth Preserver PHOLIO<SUP style="font-size: 85%; vertical-align: text-top">(sm)</SUP></DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Phoenix Portfolios:</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 0pt">Phoenix Market Neutral Fund
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Phoenix-Seneca Funds:</B>
</DIV>


<DIV align="left" style="font-size: 10pt">Phoenix Bond Fund</DIV>



<DIV align="left" style="font-size: 10pt">Phoenix Earnings Driven Growth Fund</DIV>



<DIV align="left" style="font-size: 10pt">Phoenix Equity Income Fund</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Phoenix Series&nbsp;Fund:</B>
</DIV>


<DIV align="left" style="font-size: 10pt">Phoenix Balanced Fund</DIV>



<DIV align="left" style="font-size: 10pt">Phoenix Capital Growth Fund</DIV>



<DIV align="left" style="font-size: 10pt">Phoenix Core Bond Fund</DIV>



<DIV align="left" style="font-size: 10pt">Phoenix High Yield Fund</DIV>



<DIV align="left" style="font-size: 10pt">Phoenix Mid-Cap Growth Fund</DIV>



<DIV align="left" style="font-size: 10pt">Phoenix Money Market Fund</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Phoenix Strategic Equity Series&nbsp;Fund:</B>
</DIV>


<DIV align="left" style="font-size: 10pt">Phoenix Dynamic Growth Fund</DIV>



<DIV align="left" style="font-size: 10pt">Phoenix Fundamental Growth Fund</DIV>



<DIV align="left" style="font-size: 10pt">Phoenix Large-Cap Growth Fund</DIV>



<DIV align="left" style="font-size: 10pt">Phoenix Strategic Growth Fund</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Zweig Fund, Inc.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Zweig Total Return Fund, Inc.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>The Phoenix Edge Series&nbsp;Fund</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>The Phoenix Edge Series&nbsp;Fund:</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">Phoenix-AIM Growth Series<br>
Phoenix-Alger Small Cap Growth Series
</DIV>


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</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Phoenix-Alliance/Bernstein Enhanced Index Series<BR>
Phoenix-Duff &#038; Phelps Real Estate Securities Series&nbsp;<BR>
Phoenix-Engemann Capital Growth Series<BR>
Phoenix-Engemann Growth and Income Series<BR>
Phoenix-Engemann Small-Cap Growth Series<BR>
Phoenix-Engemann Strategic Allocation Series<BR>
Phoenix-Engemann Value Equity Series<BR>
Phoenix-Goodwin Money Market Series<BR>
Phoenix-Goodwin Multi-Sector Fixed Income Series<BR>
Phoenix-Goodwin Multi-Sector Short Term Bond Series<BR>
Phoenix-Kayne Rising Dividends Series<BR>
Phoenix-Kayne Small-Cap Quality Value Series<BR>
Phoenix-Northern Dow 30 Series<BR>
Phoenix-Northern Nasdaq-100 Index &#174; Series<BR>
Phoenix-Sanford Bernstein Mid-Cap Value Series<BR>
Phoenix-Sanford Bernstein Small-Cap Value Series<BR>
Phoenix-Seneca Mid-Cap Growth Series<BR>
Phoenix-Seneca Strategic Theme Series

</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.K.1
<SEQUENCE>4
<FILENAME>y28007exv99wkw1.htm
<DESCRIPTION>EX-99.K.1: ADMINISTRATION AGREEMENT
<TEXT>
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<TITLE>EX-99.K.1</TITLE>
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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="right" style="font-size: 10pt; margin-top: 12pt">Exhibit&nbsp;K(1)
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>THE ZWEIG TOTAL RETURN FUND, INC.<BR>
ADMINISTRATION AGREEMENT</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ADMINISTRATION AGREEMENT, dated
as of the 1st day of March, 1999 between THE ZWEIG TOTAL
RETURN FUND, INC., a Maryland corporation (the &#147;Fund&#148;), and ZWEIG/GLASER ADVISERS, a New York
general partnership (the &#147;Administrator&#148;).
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><U>W I T N E S S E T H</U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;WHEREAS, the Fund is a closed-end management investment company registered under the
Investment Company Act of 1940, as amended (the &#147;1940 Act&#148;); and
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;WHEREAS, the Fund desires to avail itself of the facilities available to the Administrator with
respect to the administration of the Fund&#146;s day to day corporate affairs, and the Administrator is
willing to furnish such administrative services to or for the benefit of the Fund on the terms and
conditions hereinafter set forth;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;NOW, THEREFORE, the parties hereby agree as follows:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.&nbsp;The Fund appoints the Administrator to administer its corporate affairs, subject to the overall
supervision of the Board of Directors of the Fund, for the period and on the terms set forth in
this Agreement. The Administrator accepts such appointment and agrees during such period to render
the services herein described and to assume the obligations set forth herein, for the compensation
herein provided.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.&nbsp;(a)&nbsp;Subject to the supervision of the Board of Directors of the Fund, the Administrator
shall provide office facilities and personnel adequate to perform the following services at such
office facilities for the Fund:
</DIV>

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</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) determine the net asset value per share of the Fund&#146;s Common Stock ($.001 par value)
(the &#147;Shares&#148;) as of the close of trading on the New York Stock Exchange on each day the exchange
is open for trading, and make such net asset value available for purposes of publication in
accordance with the Fund&#146;s policy, as adopted from time to time by the Fund&#146;s Board of Directors;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) maintain the books and records of the Fund required under Rule&nbsp;31a-l(b)(2) under the
1940 Act;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) assist in preparing and providing to the Fund&#146;s accountants information necessary for
such accountants to prepare and file the Fund&#146;s U.S. federal, state and local income tax returns;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) assist in preparing the financial information for the Fund&#146;s proxy statements and
quarterly and annual reports to shareholders;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) assist in preparing and providing to the Fund and its counsel information necessary for
the preparation of the Fund&#146;s reports to the Securities and Exchange Commission;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) respond to or refer to the Fund&#146;s officers or transfer agent shareholder inquiries
relating to the Fund; and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) authorize and permit any of the Administrator&#146;s directors, officers and employees who may
be elected as directors or officers of the Fund to serve in the capacities in which they are
elected.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The performance of services described in clauses (i), (ii), (iii), (iv)&nbsp;and (v)&nbsp;is subject to the
Fund&#146;s investment adviser furnishing, on behalf of the Fund, the Administrator with information on
a daily basis with respect to the Fund&#146;s portfolio transactions and such other information as the
Administrator may reasonably request. All services to be furnished by the Administrator under this
Agreement may be furnished through any
medium selected by the Administrator.
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;In connection with services rendered by the Administrator under this Agreement,
the Administrator will bear all of the following expenses:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the salaries and expenses of all personnel of the Administrator, and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)
all of the Administrator&#146;s own office expenses incurred by the
Administrator in connection with the services to be provided to the Fund and set
forth in paragraph 2(a) hereof.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Fund assumes and will pay all expenses other than those assumed by
the Administrator pursuant to this Agreement, including but not limited to the
expenses described below:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the fees and expenses of the Fund&#146;s investment adviser or expenses otherwise incurred by
the Fund in connection with the management of the Fund&#146;s assets;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the fees and expenses of Fund directors who are not affiliated persons of the
Administrator or the Fund&#146;s investment adviser (including out-of-pocket expenses received for
attendance of board of directors&#146; meetings);
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the fees and expenses of the Fund&#146;s custodian arising under the custody agreement or any
other agreement between the Fund and its custodian;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) the fees and expenses of the Fund&#146;s transfer and dividend disbursing agent and registrar
(which may be the custodian) arising under the transfer agency agreement or any other agreement
with the Fund;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) the charges and expenses of legal counsel and independent accountants for the Fund;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) brokers&#146; commissions and any issue or transfer taxes chargeable to the Fund in connection with
its securities transactions;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) all taxes and corporate fees payable by the Fund to federal, state or other governmental
agencies;
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) the fees of any trade association of which the Fund may be a member;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the cost of stock certificates representing, and non-negotiable share deposit receipts
evidencing, the Fund&#146;s Shares,
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) all of the fees and expenses involved in registering and maintaining registrations of the
Fund and of its Shares with the Securities and Exchange Commission, and to the extent applicable
under state securities laws, including the preparation and printing of the Fund&#146;s registration
statements and prospectuses for filing under federal and state securities laws for such purposes;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) the fees and expenses involved in obtaining and maintaining any stock exchange listings
of the Fund&#146;s Shares;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) allocable communications expenses with respect to investor services (including, without
limitation, telephone, stationery and postage) and all expenses of stockholders&#146; and directors&#146;
meetings and of preparing, printing and mailing reports to stockholders in the amount necessary for
distribution to the Fund&#146;s stockholders; and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) insurance premiums and litigation, indemnification and other expenses not expressly
provided for herein or in the Fund&#146;s investment advisory agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.&nbsp;As full compensation for the services performed and the facilities furnished by the
Administrator, the Fund shall pay the Administrator a fee at the annual rate of 0.13% of the
average daily net assets of the Fund during the previous month. This fee will be
computed daily and paid monthly.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If in any fiscal year the aggregate expenses of the Fund (including fees pursuant to this Agreement
and the Fund&#146;s investment advisory agreement, but excluding interest, taxes, brokerage and, with
the prior written consent of the necessary state securities
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">commissions, extraordinary expenses) exceed the expense limitations of any state having
jurisdiction over the Fund, the Fund may deduct from the fees to be paid hereunder, or the
Administrator will bear, to the extent required by state law, that portion of such excess which
bears the same relation to the total of such excess as the Administrator&#146;s fee hereunder bears to
the total fees otherwise payable for the fiscal year by the Fund, pursuant to this Agreement and
the investment advisory agreement between the Fund and its investment adviser. The Administrator&#146;s
reimbursement obligation under this paragraph 3 is limited by the amount of fees received by it
under this Agreement. Such deduction or payment, if any, will be estimated weekly, and reconciled
and effected or paid, as the case may be, on a monthly basis.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.&nbsp;The Administrator assumes no responsibility under this Agreement other than to render the
services called for hereunder, and specifically assumes no responsibilities for investment advice
or the investment or reinvestment of the Fund&#146;s assets, or any other responsibilities not
specifically assumed herein.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.&nbsp;The Administrator shall not be liable for any error of judgment or for any loss suffered by the
Fund in connection with any matter to which this Agreement relates, except a loss resulting from
its own willful misfeasance, bad faith or gross negligence in the performance of its duties or from
its reckless disregard of its obligations and duties under this Agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.&nbsp;The Administrator and the Fund each hereby represent and warrant, but only as to themselves,
that each has all requisite authority to enter into, execute, deliver and perform its obligations
under, this Agreement, and that this Agreement is legal, valid and binding, and enforceable in
accordance with its terms.
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.&nbsp;The Fund hereby covenants and agrees that it will:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) promptly advise the Administrator of all portfolio transactions made for the Fund on a daily
basis;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) provide the Administrator with any information it requires to furnish services pursuant to
this Agreement, in a timely fashion, and will provide any other information, in a timely fashion,
as the Administrator may reasonably request; and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) immediately notify the Administrator in the event of any material change in the condition,
operation or activities of the Fund.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.&nbsp;Nothing in this Agreement shall limit or restrict the right of any director, officer or
employee of the Administrator who may also be a director, officer or employee of the Fund to engage
in any other business or to devote his time and attention in part to the management or other
aspects of any business, whether of a similar or a dissimilar nature, nor limit or restrict the
right of the Administrator to engage in any other business or to render services of any kind to any
other corporation, firm, individual or association.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.&nbsp;This Agreement shall continue in effect for a period of two years from the date hereof and
thereafter shall continue in effect only so long as such continuance is specifically approved at
least annually by the Board of Directors (including a majority of the directors who are not
&#147;interested persons&#148; (as defined in the 1940 Act)) of the Fund or the Administrator; provided,
however, that this Agreement may be terminated by the Fund at any time, without the payment of any
penalty, by the Board of Directors of the Fund or by vote of a majority of the outstanding voting
securities (as such term is defined in the 1940 Act) of the Fund and may be terminated by the
Administrator at any time, without the payment of any penalty, in either case on not more than 90
days&#146; nor less than 60&nbsp;days&#146; written notice to the other party. This Agreement shall terminate
automatically in the event of its assignment (as such term is defined in the 1940 Act).
</DIV>

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</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.&nbsp;During the term of this Agreement, the Fund shall furnish the Administrator, at its office at
900 Third Avenue, New York, New York, 10022, or such other place as the Administrator may designate
in writing, with all prospectuses, proxy statements, reports to stockholders, sales literature, or
other material prepared for distribution to stockholders of the Fund or the public, that refer in
any way to the Administrator, prior to the public dissemination or use thereof, and shall not use
such material if the Administrator reasonably objects in writing within five business days after
the receipt thereof or at such other time as may be mutually agreed upon. In the event of
termination of this Agreement, the Fund will continue to furnish to the Administrator copies of any
of the above-mentioned materials which refer in any way to the Administrator. The Fund shall
furnish or otherwise make available to the Administrator such other information relating to the
business affairs of the Fund as the Administrator at any time, and from time to time, reasonably
requests in order to discharge its obligations hereunder.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.&nbsp;This Agreement may be amended or modified, but only by mutual written consent.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.&nbsp;It is understood that the Administrator is an independent contractor and not an employee or
agent of the Fund and shall, unless otherwise expressly provided or authorized, have no authority
to act for or represent the Fund in any way or otherwise be deemed an agent of the Fund.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.&nbsp;Any notice or other communication required to be given pursuant to this Agreement shall be
deemed duly given if delivered or mailed by certified or registered mail, postage prepaid, (a)&nbsp;to
the Administrator at 900 Third Avenue, New York, New York 10022, Attention: Fund Services; or (b)
to the Fund at 900 Third Avenue, New York, New
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">York 10022, Attention: President with a copy to Robert E. Smith, Esq. of Rosenman &#038; Colin
LLP, 575 Madison Avenue, New York, New York 10022.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.&nbsp;This Agreement contains the entire agreement between the parties hereto and supersedes all
prior agreements, understandings and arrangement with respect to the subject matter hereof.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.&nbsp;This Agreement shall be governed by and construed in accordance with the laws of the State of
New York.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;IN WITNESS WHEREOF, the parties hereto have caused this instrument to be executed by their officers
designated below as of the day and year first above written.<BR>
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="48%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="40%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">THE ZWEIG TOTAL RETURN FUND, INC.</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">By:
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">/s/</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">President</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">ZWEIG/GLASER ADVISERS</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">By:
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">/s/</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">President</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->8<!-- /Folio -->
</DIV>

</BODY>
</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.K.2
<SEQUENCE>5
<FILENAME>y28007exv99wkw2.htm
<DESCRIPTION>EX-99.K.2: ASSIGNMENT OF ADMINISTRATION AGREEMENT
<TEXT>
<HTML>
<HEAD>
<TITLE>EX-99.K.2</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="right" style="font-size: 10pt; margin-top: 12pt">Exhibit&nbsp;K(2)
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><U><B>ASSIGNMENT</B></U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For valuable consideration, the receipt of which is hereby acknowledged, Zweig/Glaser Advisers, LLC
(&#147;ZGA&#148;) hereby assigns, transfers and delivers to Phoenix Equity Planning Corporation (&#147;PEPCO&#148;) all
of ZGA&#146;s rights and obligations under the administration agreement, dated as of March&nbsp;1,1999,
between ZGA and The Zweig Total Return Fund, Inc., such assignment to be effective as of October
31,1999.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;IN WITNESS WHEREOF, the undersigned has duly executed this Assignment.
</DIV>

<DIV align="right" style="font-size: 10pt; margin-top: 12pt">ZWEIG/GLAZER ADVISERS, LLC
</DIV>


<DIV align="right" style="font-size: 10pt; margin-top: 12pt">By: PHOENIX INVESTMENT PARTNERS, LTD, its sole member
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="48%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="30%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="30%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;/s/ Nancy J. Engberg</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">Nancy J. Engberg</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">Vice President and Counsel</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

</BODY>
</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.K.3
<SEQUENCE>6
<FILENAME>y28007exv99wkw3.htm
<DESCRIPTION>EX-99.K.3: LETTER AGREEMENT
<TEXT>
<HTML>
<HEAD>
<TITLE>EX-99.K.3</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="right" style="font-size: 10pt; margin-top: 12pt">Exhibit&nbsp;K(3)
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><IMG src="y28007y2800700.gif" alt="(ZWEIG LOGO)">
</DIV>


<DIV align="right" style="font-size: 10pt; margin-top: 12pt">March&nbsp;1, 2006
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Phoenix Equity Planning Corp.<BR>
56 Prospect Street<BR>
P.O. Box 150480<BR>
Hartford, Connecticut 06115-0480

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Re: Administration Agreement
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Ladies and Gentlemen:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This
will confirm that effective as of March&nbsp;1, 2006, the first sentence of Section&nbsp;3 of the
Administration Agreement between The Zweig Total Return Fund, Inc. and Phoenix Equity Planning
Corp. is amended and restated to read as follows:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;3. As full compensation for the services performed and the facilities furnished by the
Administrator, the Fund shall pay the Administrator a fee at the annual rate of 0.065% of the
average daily net assets of the Fund during the previous month.&#148;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">Kindly indicate your agreement to the foregoing by signing and returning a copy of this letter.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 50%">Very truly yours,

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 50%"><IMG src="y28007y2800701.gif" alt="-s- Carlton Neel"><BR>
Carlton Neel,<BR>
Executive Vice President

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">AGREED TO:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">PHOENIX EQUITY PLANNING CORP.
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="33%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="39%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">

<TD valign="top" colspan="3"><DIV style="margin-left:0px; text-indent:-0px">By:
/s/ Nancy Curtiss</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">

<TD colspan="3" align="left" valign="top"><DIV style="border-top: 1px solid #000000; margin-left: 5%">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Name:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Nancy Curtiss</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Title:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">VP, Operations</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt">900 Third Avenue <B>&#149;</B> New York, New York 10022<BR>
(212)&nbsp;451-1100
</DIV>



<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>


</BODY>
</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.R.1
<SEQUENCE>7
<FILENAME>y28007exv99wrw1.htm
<DESCRIPTION>EX-99.R.1: CODE OF ETHICS
<TEXT>
<HTML>
<HEAD>
<TITLE>EX-99.R.1</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="right" style="font-size: 10pt; margin-top: 12pt">Exhibit&nbsp;R(1)
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>CODE OF ETHICS</B>
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>THE ZWEIG TOTAL RETURN FUND, INC.</B>

</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><B>I.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Introduction</B></TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This Code of Ethics (&#147;Code&#148;) is adopted by The Zweig Total Return Fund, Inc. (the &#147;Fund&#148;), in
keeping with the general principles and objectives set forth in Sections&nbsp;II and III below and in
light of the Fund&#146;s fiduciary obligations to its shareholders.
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><B>II.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>General Principles</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Shareholder Interests Come First; Avoid Actual and Potential Conflicts of Interest</B></TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;It is the duty of all directors, officers and employees of the Fund to conduct themselves in
conformance with their fiduciary and ethical obligations and to not take inappropriate advantage of
their positions. Therefore, each such individual (i)&nbsp;has a duty at all times to place the interests
of Fund shareholders first; and (ii)&nbsp;must conduct his or her personal securities transactions
consistent with this Code and in such a manner so as to avoid any actual or potential conflict of
interest or any abuse of that individual&#146;s position of trust and responsibility.
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><B>III.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Objective</B></TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Securities and Exchange Commission&#146;s code of ethics rule contained in the Investment Company
Act of 1940 under Rule&nbsp;17j-l makes it unlawful for certain persons associated with investment
companies to engage in conduct which is deceitful, fraudulent, or manipulative, or which involves
false or misleading statements, in connection with the purchase or sale of a security held or
proposed to be acquired by an investment company. The objective of this Code is to set forth
certain standards with respect to the behavior of certain individuals associated with the Fund
(herein called &#147;Access Persons&#148;) within the general principles set forth above. Access Persons
generally include all directors, officers and employees of the Fund (and, in each case, their
respective family members). Access Persons do not include any director of the Fund who is not an
&#147;interested person&#148; of the Fund. In addition, Access Persons do not include any director of the
Fund who is an &#147;interested person&#148; of the Fund, but (i)&nbsp;is not an officer of the Fund, the Fund&#146;s
investment adviser or the Fund&#146;s administrator, (ii)&nbsp;does not devote any substantial portion of his
working time to the activities of the Fund, and (iii)&nbsp;does not have
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">knowledge of the day-to-day investment activities of the Fund;
nevertheless, such an interested director must file quarterly
transaction reports pursuant to Section IV.D below.
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><B>IV.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Personal Transactions in Securities</B></TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><B>1.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Prohibited Activities</B></TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="margin-left: 4%; text-indent: 0%; margin-right: 0%; font-size: 10pt; margin-top: 6pt">A. <U>IPO Rule</U>: No Access Person may purchase securities in an Initial
Public Offering, except with the prior approval of the Compliance Department. This rule also
applies to IPO&#146;s offered through the Internet.</DIV>


<DIV align="left" style="margin-left: 4%; text-indent: 0%; margin-right: 0%; font-size: 10pt; margin-top: 6pt">B. <U>Private Placement Rule</U>: No Access Person may purchase securities in a Private
Placement unless the Compliance Department has approved such purchase. Any such approved purchase
should be disclosed to the Fund if that issuer&#146;s securities are being considered for purchase or
sale by the Fund.</DIV>


<DIV align="left" style="margin-left: 4%; text-indent: 0%; margin-right: 0%; font-size: 10pt; margin-top: 6pt">C. <U>Preclearance Rule</U>: No Access Person may purchase or sell a security unless the
Compliance Department has precleared such purchase or sale. Preclearance is required prior to
executing a trade through a personal Internet brokerage account. Preclearance is required
for <B>all </B>transactions in options, puts, calls and well-known stock indices (e.g. the S&#038;P 500).
Preclearance is valid through the business day next following the day preclearance is given.<BR></DIV>


<DIV align="left" style="margin-left: 4%; text-indent: 0%; margin-right: 0%; font-size: 10pt; margin-top: 6pt"><U>Exceptions</U>: The following securities transactions do not require preclearance. These
exceptions do not apply to transactions in options:</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">1.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Purchases or sales of up to 500 shares of securities of issuers ranked in the Standard
&#038; Poor&#146;s 500 Composite Stock Index (S&#038;P 500) at the time of purchase or sale. The Compliance
Department maintains this list on the Intranet web site and updates it after the end of each
quarter.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">2.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Purchase orders sent directly to the issuer via mail (other than in connection with a
Private Placement) or sales of such securities which are redeemed directly by the issuer via mail.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="margin-left: 4%; text-indent: 0%; margin-right: 0%; font-size: 10pt; margin-top: 6pt"><U><B>Note</B></U><B>:</B> <B>The Compliance Department may deny approval of any transaction requiring preclearance
under this Preclearance Rule, even if nominally permitted under this Code of Ethics, if it is
believed that denying preclearance is necessary for the protection of a Fund. Any such denial may
be appealed to the Fund&#146;s Counsel. The decision of Counsel shall be final.</B></DIV>


<DIV align="left" style="margin-left: 4%; text-indent: 0%; margin-right: 0%; font-size: 10pt; margin-top: 6pt">D. <U>Open Order Rule</U>: No Access Person may purchase or sell, directly or indirectly,
any security in which he has, or by reason of such transaction acquires, any direct or indirect
beneficial ownership, when a Fund has a pending &#147;buy&#148; or &#147;sell&#148; order for that security of the same
type (i.e. buy or sell) as the proposed personal trade, until the Fund&#146;s order is executed or
withdrawn.</DIV>


<DIV align="left" style="margin-left: 4%; text-indent: 0%; margin-right: 0%; font-size: 10pt; margin-top: 6pt"><U>Exceptions</U>: The following securities transactions are exempt from the Open Order Rule:</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->2<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="left" style="margin-left: 9%; text-indent: 0%; margin-right: 0%; font-size: 10pt; margin-top: 6pt">1. Purchases or sales of up to 500 shares of securities of issuers in the S&#038;P 500 at the
time of the transaction.</DIV>


<DIV align="left" style="margin-left: 9%; text-indent: 0%; margin-right: 0%; font-size: 10pt; margin-top: 6pt">2. Purchases or sales approved by the Compliance Department in his/her discretion.</DIV>


<DIV align="left" style="margin-left: 2%; text-indent: 0%; margin-right: 0%; font-size: 10pt; margin-top: 6pt"><B>Any
profits realized on a personal trade in violation of this Section&nbsp;1D must be disgorged.</B></DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">E.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U>Blackout Rule</U>: If a Portfolio Manager&#146;s Managed
Fund holds a security
that is the subject of a proposed personal trade by that Portfolio Manager, the Portfolio Manager
is prohibited from buying or selling such security within 7 calendar days before and after the
Managed Fund trades in such security.</TD>
</TR>

</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%"><U>Exceptions</U>: The following securities are exempt from the Blackout Period:
</DIV>

<DIV align="left" style="margin-left: 9%; text-indent: 0%; margin-right: 0%; font-size: 10pt; margin-top: 6pt">1. Purchases or sales of up to 500 shares of securities of issuers in the S&#038;P 500 at the time of
the transaction.</DIV>


<DIV align="left" style="margin-left: 9%; text-indent: 0%; margin-right: 0%; font-size: 10pt; margin-top: 6pt">2. Purchases or sales approved by the Compliance Department in his/her discretion.</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%"><B>Any profits realized by a Portfolio Manager on a personal trade in violation of this Section
1E must be disgorged.</B>
</DIV>

<DIV align="left" style="margin-left: 4%; text-indent: 0%; margin-right: 0%; font-size: 10pt; margin-top: 6pt">F. <U>Holding Period Rule</U>: Access Persons must hold each Security, for a
period of not less than sixty (60)&nbsp;days, whether or not the purchase of such Security was an exempt
transaction under any other provision of Section&nbsp;4.</DIV>


<DIV align="left" style="margin-left: 4%; text-indent: 0%; margin-right: 0%; font-size: 10pt; margin-top: 6pt"><B>Any profits realized on trading in contravention of this policy must be disgorged.</B></DIV>


<DIV align="left" style="margin-left: 4%; text-indent: 0%; margin-right: 0%; font-size: 10pt; margin-top: 6pt">G. No Access Person shall annually accept any gift or other item of more than $100 in value
from any person or entity that does business with or on behalf of the Fund.</DIV>


<DIV align="left" style="margin-left: 4%; text-indent: 0%; margin-right: 0%; font-size: 10pt; margin-top: 6pt">H. No Advisory Person shall serve on the board of directors of a publicly traded company without
prior authorization from Counsel or the Compliance Officer of the Fund. If board service is
authorized, such Advisory Person shall have no role in making investment decisions with respect to
the publicly traded company.</DIV>


<DIV align="left" style="margin-left: 4%; text-indent: 0%; margin-right: 0%; font-size: 10pt; margin-top: 6pt">I. No Portfolio Manager shall engage in excessive trading or market timing
activities with respect to any mutual fund whether or not such mutual fund is managed by such
Adviser/Subadvisor or any affiliated adviser/subadvisor. For the purposes of the foregoing, &#147;market
timing&#148; shall be defined as a purchase and redemption, regardless of size, in and out of the same
mutual fund within any sixty (60)&nbsp;day period. The foregoing restrictions shall not apply to
Portfolio Managers investing in mutual funds through asset allocation programs, automatic
reinvestment programs, 401(k) and similar</DIV>



<P align="center" style="font-size: 10pt"><!-- Folio -->3<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="left" style="margin-left: 4%; text-indent: 0%; margin-right: 0%; font-size: 10pt; margin-top: 6pt">retirement accounts and any other non-volitional investment vehicles. Portfolio Managers shall
provide quarterly certifications as to their compliance with this restriction.</DIV>


<DIV align="left" style="margin-left: 4%; text-indent: 0%; margin-right: 0%; font-size: 10pt; margin-top: 6pt">J.
No Advisory Person shall divulge or act upon any material, non-public
information, as such term is defined under relevant securities laws.</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><B>2.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Exempted Transactions</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The prohibitions of Section&nbsp;1 of this Code shall not apply to:</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="margin-left: 4%; text-indent: 0%; margin-right: 0%; font-size: 10pt; margin-top: 6pt">A. Purchases or sales effected in any account over which the Access Person has no
direct or indirect influence or control in the reasonable estimation of the Compliance Officer.</DIV>


<DIV align="left" style="margin-left: 4%; text-indent: 0%; margin-right: 0%; font-size: 10pt; margin-top: 6pt">B. Purchases or sales of securities (1)&nbsp;not eligible for purchase or sale by the Fund; or
(2)&nbsp;specified from time to time by the Trustees, subject to such rules, if any, as the Trustees
shall specify.</DIV>


<DIV align="left" style="margin-left: 4%; text-indent: 0%; margin-right: 0%; font-size: 10pt; margin-top: 6pt">C. Purchases or sales which are non-volitional on the part of either the Access Person or
the Fund.</DIV>


<DIV align="left" style="margin-left: 4%; text-indent: 0%; margin-right: 0%; font-size: 10pt; margin-top: 6pt">D. Purchases of shares necessary to establish an automatic dividend reinvestment plan or
pursuant to an automatic dividend reinvestment plan, and subsequent sales of such securities.</DIV>


<DIV align="left" style="margin-left: 4%; text-indent: 0%; margin-right: 0%; font-size: 10pt; margin-top: 6pt">E. Purchases effected upon the exercise of rights issued by an issuer pro rata to all
holders of a class of its securities, to the extent such rights were acquired from such issuer, and
sales of such rights so acquired.</DIV>


<DIV align="left" style="margin-left: 4%; text-indent: 0%; margin-right: 0%; font-size: 10pt; margin-top: 6pt">F. Purchase or sale of securities issued under an employee stock purchase or incentive
program unless otherwise restricted.</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><B>3.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Accounts Covered</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Advance clearance must be obtained for any personal transaction in a security by an Access Person
if such Access Person has, or as a result of the transaction acquires, any direct or indirect
beneficial ownership in the security.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The term &#147;beneficial ownership&#148; is defined by rules of the SEC which will be applicable in all
cases. Generally, under the SEC rules, <U>a person is regarded as having beneficial ownership of
securities held in the name of:</U></TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>a husband, wife or a minor child;</TD>
</TR>

</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->4<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">



</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>a relative (including in-laws, step-children, or step-parents) sharing the same house;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">c)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>anyone else if the Access Person:</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(i)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>obtains benefits substantially equivalent to ownership of the securities; or</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(ii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>can obtain ownership of the securities immediately or at some future time.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><B>4.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Exemption from Clearance Requirement</B></TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Clearance is not required for any account over which the Access Person has no influence or control;
however, the existence of such an account must be reported to the Compliance Officer. The
Compliance Officer, in his sole discretion, has the authority to request further information and documentation regarding any account over which an
Access Person reports he has no influence or control.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><B>5.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Report of Transactions</B></TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>A.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Transactions and Accounts Covered</B></TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="7%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">i)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>All personal transactions in any account for which advance clearance is required must
also be reported in the next quarterly transaction report after the transaction is effected.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="7%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">ii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U>Every Access Person must file a report when due even if
such person made no purchases or sales of securities during the period covered by the report.</U></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="7%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">iii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Directors who are &#147;interested persons&#148; but who, pursuant to Section&nbsp;III, are exempt from
advance clearance are subject to the quarterly personal transaction reporting requirements of 2.A
below.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="7%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">iv)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Any Access Person shall immediately report any potential violation of this Code of which
he or she becomes aware to the Compliance Department.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>B.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Time of Reporting</B></TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="7%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">i).</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Reports of personal transactions must be made within 10&nbsp;days after the end of each
calendar</TD>
</TR>

</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->5<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">



</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">


<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="7%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>quarter. Thus, reports are due on the 10th day of January, April, July and October.</TD>
</TR>
</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="7%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">ii).</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>All employees are also required to report on an annual basis a
listing of all non-exempt securities holdings as of December&nbsp;31 of the preceding year. Reports are
due on the 31<SUP style="font-size: 85%; vertical-align: text-top">st</SUP> day of January. New employees will be required to provide a listing of
all non- exempt securities holdings as of the date of commencement of employment.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>C.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Form of Reporting</B></TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="7%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The report must be on the form provided by the Compliance Department. A copy of the form is
attached.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>D.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Responsibility to Report</B></TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="7%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The responsibility for taking the initiative to report is imposed on each individual required to
make a report. Any effort by the Compliance Department to facilitate the reporting process does not
change or alter that responsibility.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>E.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Where to File Report</B></TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="7%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>All reports must be filed with the Compliance Department.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><B>V.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Review</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Compliance Officer will review and consider any proper request of an Access Person for relief
or exemption from any restriction, limitation or procedure contained herein, which restriction,
limitation or procedure is claimed to cause a hardship for such Access Person. The Compliance
Officer&#146;s decision is completely within his sole discretion.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><B>VI.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Service as Director</B></TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>No Access Person may serve on the board of any company whose securities are publicly traded (other
than a closed-end investment company to which the Fund&#146;s
investment adviser or an affiliate thereof is the investment adviser) without prior approval of the
Fund&#146;s Board of Directors. If such approval is granted, it will be subject to the implementation of
appropriate procedures to isolate investment personnel serving as directors from making investment
decisions for the Fund concerning the company in question.</TD>
</TR>

</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->6<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">



</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" nowrap align="left"><B>VII.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Gifts</B></TD>
</TR>

<TR valign="bottom" style="font-size:6pt">
    <TD>&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>No Access Person shall accept, directly or indirectly, anything of value, including gifts
and gratuities, in excess of $100 per year from any person or entity that does business with the
Fund. This restriction does not apply to bona fide dining or bona fide entertainment if, during
such dining or entertainment, the Access Person is with the person or representative of the entity
that does business with the Fund.</TD>
</TR>

<TR valign="bottom" style="font-size:6pt">
    <TD>&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><B>VIII.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Sanctions</B></TD>
</TR>

<TR valign="bottom" style="font-size:6pt">
    <TD>&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Upon discovering a violation of this Code, the Board of Trustees of the Fund may impose such
sanctions as it deems appropriate, including inter alia, a letter of censure or suspension or
termination of employment, or suspension of personal trading privileges for such period as it may
deem appropriate.</TD>
</TR>

<TR valign="bottom" style="font-size:6pt">
    <TD>&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><B>IX.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Annual Report to the Fund&#146;s Board of Directors</B></TD>
</TR>

<TR valign="bottom" style="font-size:6pt">
    <TD>&nbsp;</TD>
</TR>


<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Fund&#146;s management shall prepare an annual report to the Fund&#146;s Board of Directors, which
report shall (i)&nbsp;summarize existing procedures concerning personal investing and any changes in the
procedures made during the past year, (ii)&nbsp;identify any violations requiring significant remedial
action during the past year, (iii)&nbsp;identify any recommended changes in existing restrictions or
procedures based upon the Fund&#146;s experience under this Code, evolving industry practices, or
developments in applicable laws or regulations, and (iv)&nbsp;include such other information as the
Board of Directors of the Fund may request.</TD>
</TR>


<TR valign="bottom" style="font-size:6pt">
    <TD>&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><B>X.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Effective Date</B></TD>
</TR>
<TR valign="bottom" style="font-size:6pt">
    <TD>&nbsp;</TD>
</TR>


<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>All employees, officers and directors of the Fund (other than directors who are not
interested persons of the Fund) are required to sign a copy of this Code indicating their agreement
to abide by the terms of this Code.</TD>
</TR>

<TR valign="bottom" style="font-size:6pt">
    <TD>&nbsp;</TD>
</TR>


<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>In addition, all employees, officers and directors of the Fund (other than directors who are not
interested persons of the Fund) will be required to certify annually that (i)&nbsp;they have read and
understand the terms of this Code and recognize the responsibilities and obligations incurred by
their being subject to this Code, and (ii)&nbsp;they are in compliance with the requirements of this
Code, including but not limited to the preclearance for Access Persons and the reporting of all
non-exempt personal securities transactions in accordance with this Code.</TD>
</TR>

</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->7<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">



</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><B>XI.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Certification</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>I have read and understand the terms of the above Code of Ethics. I recognize the
responsibilities and obligations incurred by me as a result of my being subject to this Code of
Ethics. I hereby agree to abide by the above Code of Ethics.</TD>
</TR>

<TR valign="bottom">
    <TD>&nbsp;</TD>
</TR>
</TABLE>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="30%">&nbsp;</TD>
    <TD width="12%">&nbsp;</TD>
    <TD width="14%">&nbsp;</TD>
    <TD width="12%">&nbsp;</TD>
    <TD width="14%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px"><DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
(Signature)
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
(Date)
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px"><DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
(Print name)
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->8<!-- /Folio -->
</DIV>

</BODY>
</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.R.2
<SEQUENCE>8
<FILENAME>y28007exv99wrw2.htm
<DESCRIPTION>EX-99.R.2: CODE OF ETHICS
<TEXT>
<HTML>
<HEAD>
<TITLE>EX-99.R.2</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="right" style="font-size: 10pt; margin-top: 12pt">Exhibit&nbsp;R(2)
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>POLICY AND PROCEDURES OF<BR>
PHOENIX/ZWEIG ADVISERS LLC AND EUCLID ADVISORS LLC<BR>
DESIGNED TO DETECT AND PREVENT INSIDER TRADING</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>SECTION I. POLICY STATEMENT ON INSIDER TRADING</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>A. Introduction</B>

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Phoenix/Zweig Advisers LLC and Euclid Advisors LLC (each of which is hereinafter referred to
as an &#147;Adviser&#148; or the &#147;Adviser&#148;) each seeks to foster a reputation for integrity and
professionalism. That reputation is a vital business asset. The confidence and trust placed in us
by our clients is something we should value and endeavor to protect. To further that goal, this
Policy Statement implements procedures to deter the misuse of material, nonpublic information in
securities transactions.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Trading securities while in possession of material, nonpublic information or improperly
communicating that information to others may expose you to stringent penalties. Criminal sanctions
may include a fine of up to $1,000,000 and/or ten years imprisonment. The Securities and Exchange
Commission can recover the profits gained or losses avoided through the violative trading, impose a
penalty of up to three times the illicit windfall and issue an order permanently barring you from
the securities industry. Finally, you may be sued by investors seeking to recover damages for
insider trading violations.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Regardless of whether a government inquiry occurs, the Advisers view seriously any violation
of this Policy Statement. Such violations constitute grounds for disciplinary sanctions, including
dismissal.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>B. Scope of the Policy Statement</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This Policy Statement is drafted broadly; it will be applied and interpreted in a similar
manner. This Policy Statement applies to securities trading and information handling by directors,
officers and employees of the Advisers (including spouses, minor children and adult members of
their households).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This Policy Statement on Insider Trading and the following procedures to implement the
Adviser&#146;s Policy represent the Adviser&#146;s current such Policy Statement and Procedures. Such Policy
Statement and Procedures may be revised or supplemented from time to time by the issuance of a new
Policy Statement and Procedures or a supplement or memorandum from the Adviser&#146;s chief executive
officer and/or compliance officer.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The law of insider trading is unsettled and continuously developing; an individual
legitimately may be uncertain about the application of the Policy Statement in a particular
circumstance. Often, a single question can forestall disciplinary action or complex legal problems.
You should direct any questions relating to this Policy Statement to the Compliance Officer, who is
Marc Baltuch, or, in his absence, Melinda Reibel or Jennifer Marinpetro. You also must notify the
Compliance Officer immediately if you have any reason to believe that a violation of this Policy
Statement has occurred or is about to occur.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->1<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>C. Policy Statement on Insider Trading</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No person to whom this Policy Statement applies, including you, may <I>trade, </I>either personally
or on behalf of others (such as mutual funds and private accounts managed by the Advisers), while
in possession of material, nonpublic information; nor may any personnel of an Adviser <I>communicate</I>
material, nonpublic information to others in violation of the law. This section reviews principles
important to this Policy Statement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>1.&nbsp;What is Material Information?</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Information is material where there is a substantial likelihood that a reasonable investor
would consider it important in making his or her investment decisions. Generally, this is
information whose disclosure will have a substantial effect on the price of a company&#146;s securities.
No simple &#147;bright line&#148; test exists to determine when information is material; assessments of
materiality involve a highly fact-specific inquiry. For this reason, you should direct any
questions about whether information is material to the Compliance Officer.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Material information often relates to a company&#146;s results and operations, including, for
example, dividend changes, earnings results, changes in previously released earnings estimates,
significant merger or acquisition proposals or agreements, major litigation, liquidation problems,
and extraordinary management developments.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Material information also may relate to the <I>market </I>for a company&#146;s securities. Information
about a significant order to purchase or sell securities may, in some contexts, be deemed material.
Similarly, prepublication information regarding reports in the financial press also may be deemed
material. For example, the United States Supreme Court upheld the criminal convictions of insider
trading defendants who capitalized on prepublication information about the WALL STREET JOURNAL&#146;S
<I>Heard on the Street </I>column.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>2.&nbsp;What is Nonpublic Information?</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Information is &#147;public&#148; when it has been disseminated broadly to investors in the marketplace.
Tangible evidence of such dissemination is the best indication that the information is public. For
example, information is public after it has become available to the general public through a public
filing with the SEC or some other government agency, the Dow Jones &#147;tape&#148; or the WALL STREET
JOURNAL or some other publication of general circulation, and after sufficient time has passed so
that the information has been disseminated widely.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->2<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>3.&nbsp;Identifying Inside Information</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Before executing any trade for yourself or others, including investment companies or private
accounts managed by an Adviser, you must determine whether you have access to material, nonpublic
information. If you think that you might have access to material, nonpublic information, you should
take the following steps.
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="left">i.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">Report the
information and proposed trade immediately to the Compliance
Officer.</DIV></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="left">ii.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">Do not purchase or sell the securities on behalf of yourself or
others, including investment companies or private accounts managed by the
Advisers.</DIV></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="left">iii.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">Do not communicate the information inside or outside the Advisers, other
than to the Compliance Officer.</DIV></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="left">iv.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">After the Compliance Officer has reviewed the issue, the firm will
determine whether the information is material and nonpublic and, if so, what action the
firm should take.</DIV></TD>
</TR>

</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">You should consult with the Compliance Officer before taking any action. This degree of caution
will protect you, your clients and the firm.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>4.&nbsp;Contacts with Public Companies</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For the Advisers, contacts with public companies represent an important part of our research
efforts. An Adviser may make investment decisions on the basis of the firm&#146;s conclusions formed
through such contacts and analysis of publicly-available information. Difficult legal issues arise,
however, when, in the course of these contacts, an employee of an Adviser or other person subject
to this Policy Statement becomes aware of <I>material, </I>nonpublic information. This could happen, for
example, if a company&#146;s Chief Financial Officer prematurely discloses quarterly results to an
analyst, or an investor relations representative makes a selective disclosure of adverse news to a
handful of investors. In such situations, the Adviser must make a judgment as to its further
conduct. To protect yourself, your clients and the firm, you should contact the Compliance Officer
immediately if you believe that you may have received material, nonpublic information.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>5.&nbsp;Tender Offers</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Tender offers represent a particular concern in the law of insider trading for two reasons.
First, tender offer activity often produces extraordinary gyrations in the price of the target
company&#146;s securities. Trading during this time period is more likely to attract regulatory
attention (and produces a disproportionate percentage of insider trading cases). Second, the SEC
has adopted a rule which expressly forbids trading and &#147;tipping&#148; while in possession of material,
nonpublic information regarding a tender offer received from the tender offeror, the target company
or anyone acting on behalf of either. Employees of an Adviser and others subject to this Policy
Statement should exercise particular caution any time they become aware of nonpublic information
relating to a tender offer.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->3<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="8%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="85%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top" nowrap><DIV style="margin-left:0px; text-indent:-0px"><B>SECTION II.</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>PROCEDURES TO IMPLEMENT THE ADVISERS&#146;</B></TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>POLICY STATEMENT ON INSIDER TRADING</B></TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following procedures have been established to aid the officers, directors and employees of
the Advisers in avoiding insider trading, and to aid the Advisers in preventing, detecting and
imposing sanctions against insider trading. Every officer, director and employee of an Adviser must
follow these procedures or risk serious sanctions, including dismissal, substantial personal
liability and criminal penalties. If you have any questions about these procedures, you should
consult the Compliance Officer.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>A. Personal Securities Trading</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>1. Definitions</B>

</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>&#147;Access Person:&#148; pursuant to Rule&nbsp;17j-1 of the Investment Company Act of 1940,
means any Advisory Person of a Fund or of a Fund&#146;s investment adviser. All of
Advisers directors, officers, and general partners are presumed to be Access Persons
of
any Fund advised by the investment adviser. All of the Funds directors, officers, and
general partners are presumed to be Access Persons of the Fund.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>In addition, Access Persons include any director, officer or general partner of
PEPCO,
the principal underwriter of the Funds, who, in the ordinary course of business,
makes,
participates in or obtains information regarding the purchase or sale of Covered
Securities by the Fund for which PEPCO acts, or whose functions or duties in the
ordinary course of business relate to the making of any recommendation to the Fund
regarding the purchase or sale of Covered Securities.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(c)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Advisory Person of a Fund or of a Fund&#146;s investment adviser means:</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(i)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Any director, officer, general partner or employee of the Fund
or investment advisor (or of any company in a control relationship to the Fund
or investment adviser) who, in connection with his or her regular functions or
duties, makes, participates in, or obtains information regarding, the purchase
or sale of Covered Securities by a Fund, or whose functions relate to the
making of any recommendations with respect to such purchases or sales;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(ii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Any natural person in a control relationship to the Fund or
investment adviser who obtains information concerning recommendations made to
the Fund with regard to the purchase or sale of Covered Securities by
the Fund; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(iii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Any Investment Personnel.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(d)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>&#147;Affiliated person&#148; of an issuer is a person that directly, or indirectly
through one or
more intermediaries, controls, or is controlled by, or is under common control with,
such issuer.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(e)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>&#147;Beneficial ownership&#148; shall be interpreted in the same manner as it would be
under Rule&nbsp;16a-l(a)(2) in determining whether a person is the beneficial owner of a
security</TD>
</TR>

</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->4<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">


<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>for purposes of Section&nbsp;16 of the Securities Exchange Act of 1934 (the &#147;Exchange Act&#148;) and
the rules and regulations thereunder. Generally, beneficial ownership means having or
sharing, directly or indirectly through any contract, arrangement, understanding,
relationship, or otherwise, a direct or indirect &#147;pecuniary interest&#148; in the security. For
the purposes hereof,</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(i)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>&#147;Pecuniary interest&#148; means the opportunity, directly or indirectly, to profit
or share in any profit derived from a transaction in the security.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(ii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>&#147;Indirect pecuniary interest&#148; includes, but is not limited to: (a)&nbsp;securities
held by members of the person&#146;s &#147;immediate family&#148; (this means any child,
child-in-law, stepchild, grandchild, parent, parent-in-law, stepparent, grandparent,
spouse, sibling, or sibling-in-law and includes adoptive relationships) sharing the
same household (which ownership interest may be rebutted); (b)&nbsp;a general partner&#146;s
proportionate interest in portfolio securities held by a general or limited
partnership; (c)&nbsp;a person&#146;s right to dividends that is separated or separable from the
underlying securities (otherwise, a right to dividends alone will not constitute a
pecuniary interest in securities); (d)&nbsp;a person&#146;s interest in securities held by a
trust; (e)&nbsp;a person&#146;s right to acquire securities through the exercise or conversion
of any derivative security, whether or not presently exercisable; and (f)&nbsp;a
performance-related fee, other than an asset based fee, received by any broker,
dealer, bank, insurance company, investment company, investment manager, trustee, or
person or entity performing a similar function, with certain
exceptions (<U>see</U> Rule
16a-1(a)(2)).</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(f)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>&#147;Chief Compliance Officer&#148; refers to the person appointed by the Boards of the funds
pursuant to the provisions of Rule&nbsp;38a-1. Such person is identified on Schedule&nbsp;A
hereto.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(g)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>&#147;Compliance Officer&#148; may refer to the Fund&#146;s designated Compliance Officer or an
Adviser&#146;s Compliance Officer or any person designated by each such to perform the
administrative functions of this Code.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(h)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>&#147;Control&#148; shall have the same meaning as that set forth in Section&nbsp;2(a)(9) of the 1940 Act.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(i)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>&#147;Covered Security&#148; means all securities including those issued by any reportable fund,
<U>except</U> securities that are direct obligations of the Government of the United States,
bankers&#146; acceptances, bank certificates of deposit, commercial paper and shares of
unaffiliated registered open-end investment companies.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(j)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>&#147;Disinterested Trustee&#148; means a Trustee of a Fund who is not an &#147;interested person&#148; of the
Fund within the meaning of Section&nbsp;2(a)(19) of the 1940 Act.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(k)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>&#147;Initial Public Offering&#148; means an offering of securities registered under the Securities
Act of 1933, as amended, the issuer of which, immediately before the registration, was not
subject to the reporting requirements of Section&nbsp;13 or 15(d) of the Exchange Act.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(l)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>&#147;Investment Personnel&#148; shall mean:</TD>
</TR>

</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->5<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">



</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(i)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>any employee of the Fund or Adviser (or of any company in a control
relationship to the Fund or Adviser) who, in connection with his or her regular
functions or duties, makes or participates in making recommendations regarding the
purchase or sale of securities by the Fund; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(ii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>any natural person who controls the Fund or an Adviser and who obtains
information concerning recommendations made to the Fund regarding the purchase or sale
of securities by the Fund. Investment Personnel includes any Portfolio Manager or other
investment person, such as an analyst or trader, who provides information and advice to
a Portfolio Manager or assists in the execution of the investment decisions.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(1)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>&#147;Limited Offering&#148; or &#147;Private Placement&#148; means an offering that is exempt from registration
under the Securities Act of 1933 pursuant to Section&nbsp;4(2) or Section&nbsp;4(6) thereof, or
pursuant to Rule&nbsp;504, Rule&nbsp;505, or Rule&nbsp;506 thereunder.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(m)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>&#147;Managed Portfolio&#148; shall mean those Funds, individually and collectively, for which the
Portfolio Manager makes buy and sell decisions. For those Funds operating as series
companies, Managed Portfolio shall include only the series for which the Portfolio Manager
serves as the Portfolio Manager.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(n)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>&#147;Portfolio Manager&#148; means the person or portfolio management team entrusted to make or
participate in the making of the buy and sell decisions for a Fund, or series thereof; as
disclosed in the Fund(s) prospectus.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(o)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>&#147;Purchase or sale of a security&#148; includes, among other things, the writing of an option to
purchase or sell a security or the purchase or sale of a security that is exchangeable for or
convertible into a security.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(p)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>&#147;Reportable Fund&#148; includes those 1940 Act registered investment companies for which the
Adviser or an affiliate acts as adviser or sub-adviser, or principal underwriter.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(q)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>&#147;Security&#148; shall have the meaning set forth in Section&nbsp;2(a)(36) of the 1940 Act.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(r)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>&#147;Security Held or to be Acquired&#148; by a Fund means:</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(i)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>any Covered Security which, within the most recent 15&nbsp;days:</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(A)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>is or has been held by the Fund; or</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(B)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>is being or has been considered by the Fund or any of its investment
advisers
for purchase by the Fund; and</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(ii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>any option to purchase or sell, and any security convertible into or exchangeable
for, a Covered Security described in paragraph (p)(i) of this Section.</TD>
</TR>

</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 6%">A security is &#147;being considered for purchase or sale&#148; when a recommendation to purchase or
sell a security has been made and communicated and, with respect to the
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->6<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 6%">Investment Personnel making the recommendation, when such person seriously considers
making such a recommendation.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>2. Prohibited Activities</B>
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U>IPO Rule</U>: No Advisory Person may directly or indirectly acquire
beneficial ownership
in any securities in an Initial Public Offering (including IPOs offered through the
Internet), except with the prior written approval of the Adviser&#146;s Compliance
Officer.
No NASD registered person may participate in an IPO pursuant to NASD Rule&nbsp;2790.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U>Limited Offering/Private Placement Rule</U>: No Advisory Person may
directly or
indirectly acquire beneficial ownership in any securities in a Limited Offering or
Private Placement except with the prior written approval of the Adviser&#146;s Compliance
Officer.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(i)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Adviser&#146;s Compliance Officer will make a record of any
decision, and the reasons supporting the decision, to grant approval for
transactions in IPOs and Limited Offerings, and will maintain these records for
at least five years after the end of the fiscal year in which the approval is
granted.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(c)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U>Preclearance Rule</U>: No Advisory Person may directly or indirectly
acquire or dispose
of beneficial ownership in a Covered Security unless such transaction has been
precleared by the Adviser&#146;s Compliance Officer. Preclearance is required prior to
executing any trade through any personal brokerage account, unless specially
exempted under Section&nbsp;4 above. Preclearance is valid through the business day next
following the day preclearance is given.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(i)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Adviser&#146;s Compliance Officer will monitor investment activity by the
Advisory Person involving the precleared transaction.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(ii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Compliance reserves up to one business day to respond to any
request for preclearance.</TD>
</TR>

</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><U><B>Note</B></U>: <B>The Compliance Officer may deny approval of any transaction requiring preclearance
under this Preclearance Rule, even if the transaction is nominally permitted under this Code of
Ethics, if he or she reasonably believes that denying preclearance is necessary for the protection
of a Fund. Any such denial may be appealed to the Fund&#146;s Chief Compliance Officer. The decision of
the Chief Compliance Officer shall be final.</B>
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(f)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U>Open Order Rule</U>: No Advisory Person may directly or indirectly
acquire or dispose of beneficial ownership in any Covered Security on a day during
which a Fund has a pending &#147;buy&#148; or &#147;sell&#148; order for that security of the same type
(i.e., buy or sell) as the proposed personal trade, until the Fund&#146;s order is executed
or withdrawn.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U>Exceptions</U>: The following securities transactions are exempt from the Open
Order Rule:</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">1.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Purchases or sales of up to 500 shares of an issuer ranked in the
Standard &#038; Poor&#146;s 500 Composite Stock Index (S&#038;P 500) at the time of purchase or
sale The Adviser&#146;s Compliance Officer shall make available an updated list of
such issuers quarterly.</TD>
</TR>

</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->7<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">


<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">2.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Purchases or sales approved by the Adviser&#146;s Compliance Officer in
his/her discretion.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(g)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U>Blackout Rule</U>: No Investment Personnel may directly or indirectly
acquire or dispose of beneficial ownership in a Covered Security within seven calendar
days before and after a Managed Portfolio trades in that Security.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Transactions permitted under the Blackout Rule must also satisfy the Open Order Rule
and the Preclearance Rule, if and to the extent the transaction is not covered by
exceptions to those rules.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(h)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U>Holding Period Rule</U>: Advisory Persons must hold each Security for a
period of not less than sixty (60)&nbsp;days from date of acquisition.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(i)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U>Gifts</U>: No Access Person shall accept any gift or other item (for
the purpose of this Code &#147;gifts&#148; include but are not limited to cash, merchandise,
gifts, prizes, travel expenses, meals and certain types of entertainment) of more than
$100 in value from any person or entity that does business with or on behalf of the
Advisor or the Fund. All gifts received must be reported to the Advisor&#146;s Compliance
Department.</TD>
</TR>

</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Any profits realized by Advisory Personnel on a personal trade in violation of Sections&nbsp;1(f),(g)
and (h)&nbsp;must be disgorged at the request of the Fund.</B>
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(j)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U>Service as Director</U>. No Advisory Person shall serve on the board
of directors of a publicly traded company without prior authorization by the President
or the Compliance Officer of the Fund. If board service is authorized, such Advisory
Person shall have no role in making investment decisions with respect to the publicly
traded company.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(k)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U>Market Timing Prohibited</U>. No Portfolio Manager shall engage in
excessive trading or market timing activities with respect to any mutual fund whether
or not such mutual fund is a Managed Portfolio, or is managed by such
Adviser/Subadvisor or any affiliated adviser or subadviser. For the purposes of the
foregoing, &#147;market timing&#148; shall be defined as a purchase and redemption, regardless of
size, in and out of the same mutual fund within any sixty (60)&nbsp;day period. The
foregoing restrictions shall not apply to Portfolio Managers investing in mutual funds
through automatic reinvestment programs, and any other non-volitional investment
vehicles. Portfolio Managers shall provide quarterly certifications as to their
compliance with this restriction.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>3. Exempted Transactions</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The preclearance prohibitions of Section&nbsp;1 of this Code, shall not apply to:
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Purchases or sales effected in any account over which the Advisory Person
has no direct or indirect influence or control in the reasonable estimation of the
Adviser&#146;s</TD>
</TR>

</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->8<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">


<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Compliance Officer. This exemption will also apply to personal brokerage accounts for
which a third party (e.g. broker, financial advisor) makes all investment decisions
on behalf of the Access Person. The discretionary arrangement must be documented to
the Adviser&#146;s Compliance Officer or his or her designee.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Purchases or sales of securities not eligible for purchase or sale by the Fund.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(c)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Purchases or sales which are non-volitional on the part of either the Advisory
Person or the Fund.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(d)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Purchases of shares necessary to establish an automatic dividend reinvestment
plan or
pursuant to an automatic dividend reinvestment plan, and subsequent sales of such
securities.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(e)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Purchases effected upon the exercise of rights issued by an issuer pro rata to
all
holders of a class of its securities, to the extent such rights were acquired from
such
issuer, and sales of such rights so acquired.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(f)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Purchase or sale of securities issued under an employee stock purchase or
incentive
program unless otherwise restricted.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>4. Accounts Covered</B>
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">Advance clearance must be obtained for any personal transaction in a
security by an officer, director or employee of an Adviser if such person
has, or as a result of the transaction acquires, any direct or indirect
beneficial ownership in the security.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">The term &#147;beneficial ownership&#148; is defined by rules of the SEC which will be applicable in
all cases. Generally, under the SEC rules, <U>a person is regarded as having beneficial
ownership of securities held in the name of:</U>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>a husband, wife or a minor child;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>a relative (including in-laws,
step-children, or step-parents) sharing
the same house;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">c)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>anyone else if the officer, director or employee:</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="12%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(i)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>obtains benefits
substantially equivalent to ownership of the securities; or</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="12%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(ii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>can obtain ownership of
the securities immediately or at some future time.</TD>
</TR>

</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->9<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">



</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>5. Exemption from Clearance Requirement</B>
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">Clearance is not required for any account over which an officer, director
or employee has no influence or control; however, the existence of such
an account must be reported to the Compliance Officer. The Compliance
Officer, in his sole discretion, has the authority to request further
information and documentation regarding any account over which an
officer, director or employee reports he has no influence or control.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>B. Report of Transactions</B>
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>1.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Transactions and Accounts Covered</B></TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>All personal transactions in
any account for which
advance clearance is required must also be reported
in the next quarterly transaction report after the
transaction is effected.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Every officer, director and
employee of an Adviser
must file a report when due even if such person
made no purchases or sales of securities during the
period covered by the report.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">c)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Any Access Person shall immediately
report any potential
violation of this Code of which he or she becomes
aware to the Compliance Department.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>2.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Time of Reporting</B></TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">A.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Reports of personal
transactions must be made
within 10&nbsp;days after the end of each calendar
quarter. Thus, reports are due on the 10th day of
January, April, July and October.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">B.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>All employees are also required to report on an annual basis a listing of
all non-exempt securities holdings as of December&nbsp;31 of the preceding
year. Reports are due no later than the 14<SUP style="font-size: 85%; vertical-align: text-top">th</SUP> of February.
New employees will be required to provide a listing of all non-exempt
securities holdings as of the date of commencement of employment. The
initial holdings report must be current as of a date not more than 45
days prior to the individual becoming an access person.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>3.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Form of Reporting</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The report must be on the form provided by the Compliance
Department. A copy of the form is attached.</TD>
</TR>


</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->10<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">


<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>4.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Responsibility to Report</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The responsibility for taking the initiative to report is
imposed on each individual required to make a report. Any
effort by the Compliance Department to facilitate the reporting
process does not change or alter that responsibility.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>5.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Where to File Report</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>All reports must be filed with the Compliance Department.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>6.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Code of Ethics Reports</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>In addition, &#147;Access Persons&#148; of Phoenix/Zweig Advisers LLC., The Zweig Fund, Inc.,
The Zweig Total Return Fund, Inc., Phoenix-Zweig Trust, Euclid Advisors LLC (i)&nbsp;are
required to make any reports required under the Code of Ethics of such advisers or
funds, as the case may be, and (ii)&nbsp;must comply with all the other provisions
(including the personal trading restrictions) of such Code of Ethics.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>C. High-Risk Trading Activities</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Certain high-risk trading activities, if used in the management of a personal trading portfolio,
are risky not only because of the nature of the securities transactions themselves, but also
because of the potential that action necessary to close out the transactions may become prohibited
during the pendency of the transactions. Examples of such activities include short sales of common
stock and trading in derivative instruments such as option contracts to purchase (&#147;call&#148;) or sell
(&#147;put&#148;) securities at certain predetermined prices. Officers, directors and employees of the
Advisers should understand that short sales and trading in derivative instruments involve special
risks &#151; derivative instruments, for example, ordinarily have greater price volatility than the
underlying security. The fulfillment of the obligations owed by each officer, director and employee
to his or her employer may heighten those risks. For example, if an Adviser becomes aware of
material, nonpublic information about the issuer of the underlying securities, such Adviser&#146;s
personnel may find themselves &#147;frozen&#148; in a position in a derivative security. The Advisers will
not bear any losses resulting in personal accounts through the implementation of this Policy
Statement.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>D. Restrictions on Disclosures</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Officers, directors and employees of the Advisers shall not disclose any nonpublic information
(whether or not it is material) relating to the Advisers or their securities transactions on behalf
of clients to any person outside an Adviser (unless such disclosure has been authorized by such
Adviser). Material, nonpublic information may not be communicated to anyone, including persons
within an Adviser, except as provided in Section&nbsp;I above. Such information must be secured. For
example, access to files containing material, nonpublic information and computer files containing
such information should be restricted, and conversations containing such information, if
appropriate at all, should be conducted in private (for example, <I>not </I>by cellular telephone, to
avoid potential interception).
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->11<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>E.&nbsp;Review</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0%">The Compliance Officer will review and consider any proper request of an officer, director or
employee of an Adviser for relief or exemption from any restriction, limitation or procedure
contained herein, which restriction, limitation or procedure is claimed to cause a hardship for
such person. The Compliance Officer&#146;s decision is completely within his sole discretion.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>F.&nbsp;Sanctions</B>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Upon discovering a violation of this Code, the Board of Trustees of a Fund may impose such
sanctions as it deems appropriate, including inter alia, a letter of censure or suspension or
termination of employment, or suspension of personal trading privileges for such period as it may
deem appropriate. Provided further, the Adviser&#146;s Compliance Officer shall review and present
sanctions levied for non-compliance at each regularly scheduled Board meeting. Please see attached
Appendix&nbsp;B of Sanctions that may be levied for violations of this Code.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>G.&nbsp;Recordkeeping</B>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">All Code of Ethics records will be maintained pursuant to the provisions of Rules&nbsp;17j-1 and
204A-1.
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->12<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>4. Acknowledgement</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;I have read and understand this Policy Statement on Insider Trading. I certify that I have, to
date, complied and will continue to comply with this Policy Statement. I understand that any
violation of this Policy Statement may lead to sanctions, including dismissal.
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="30%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px"><DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
(Signature)
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
(Date)
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px"><DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
(Print name)
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->13<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>SECTION III. SUPERVISORY PROCEDURES</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Advisers have assigned the Compliance Officer the primary responsibility for the
implementation and maintenance of the Advisers&#146; policy and procedures against insider trading.
Supervisory Procedures can be divided into two classifications &#151; prevention of insider trading and
detection of insider trading.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>1. Prevention of Insider Trading</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To prevent insider trading, the Compliance Officer should:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="left">i.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>provide, on a regular basis, an education program to
familiarize officers, directors and employees with the Advisers&#146; policy and
procedures;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="left">ii.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>answer questions regarding the Advisers&#146; policy and procedures;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="left">iii.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>resolve issues of whether information received by an officer, director or
employee of an Adviser is material and nonpublic and determine what action, if any,
should be taken;</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="left">iv.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>review on a regular basis and update as necessary an
Adviser&#146;s policy and procedures;</TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>


<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="left">v.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>when it has been determined that an officer, director or employee of
an Adviser has material, nonpublic information:</TD>
</TR>



</TABLE>
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 6%">1. implement measures to prevent dissemination of such information, and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 6%">2. if necessary, restrict officers, directors and employees from trading
the securities; and
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="left">vi.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD> promptly review, and either approve or disapprove, in writing, each request of an
officer, director or employee of an Adviser for clearance to trade in
specified securities.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>2. Detection of Insider Trading</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To detect insider trading, the Compliance Officer should:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">i. review the trading activity reports filed by each officer,
director and employee;
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="left">ii.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>review the trading activity of mutual funds and
private accounts managed by the Advisers;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="left">iii.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>review trading activity (if any) of an Adviser&#146;s own account;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="left">iv.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>promptly investigate all reports of any possible
violations of the Advisers&#146; Policy and Procedures to Detect and Prevent
Insider Trading; and</TD>
</TR>

</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">v. coordinate the review of such reports with other appropriate
officers, directors or employees of an Adviser.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->14<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>3. Sanctions</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Upon discovering a violation of this Code, the Board of Trustees of the Fund may impose such
sanctions as it deems appropriate, including inter alia, a letter of censure or suspension or
termination of employment, or suspension of personal trading privileges for such period as it may
deem appropriate.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>4. General Reports to Management</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On an as-needed or periodic basis, the Advisers may find it useful for the Compliance Officer
to prepare a written report to the management and/or Board of Directors of an Adviser setting forth
some or all of the following:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="left">i.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>a summary of existing procedures to detect and prevent
insider trading;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="left">ii.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>a summary of any changes in procedures made in the last
year;</TD>
</TR>

</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">iii. full details of any investigation since the last report (either internal
or by a
regulatory agency) of any suspected insider trading, the results
of the investigation and a description of any changes in procedures
prompted by any such investigation;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">iv. an evaluation of the current procedures and a description
of any anticipated changes in procedures; and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">v. a description of the Advisers&#146; continuing educational program
regarding insider trading, including the dates of such programs since the
last report to management.
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->15<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>INVESTMENT REPORTING MATRIX<BR>
(Appendix&nbsp;A to Code of Ethics)</B>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="58%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="20%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="20%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000">Type of Investment</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" style="border-bottom: 1px solid #000000">Reportable</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" style="border-bottom: 1px solid #000000">Preclearance</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Bank Conversions
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">YES
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">YES</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Blind Trusts
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">YES
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">NO</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Call/Matured Securities
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">YES
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">NO</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Cash Management Accounts (No Securities Trading)*
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">NO
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">NO</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Closely Held Corporate Stock
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">YES
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">NO</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Co-op Apartment Shares
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">NO
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">NO</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Commercial Paper
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">NO
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">NO</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Convertible Bonds
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">YES
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">YES</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>Corporate Bonds</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">YES
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">YES</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>Corporate Mergers/Tenders</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">YES
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">NO</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Dividend Reinvestment Plans
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">YES-annually
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">NO</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Exchange Traded Funds (&#147;ETF&#148;)
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">YES
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">YES</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>Family Business (Private)</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">NO
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">NO</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Foreign Government Bonds
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">YES
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">YES</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Futures
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">YES
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">YES</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>Gifts of Securities</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">YES
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">NO</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Initial Public Offering
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">NOT ALLOWED
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">N/A</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Insurance Company Conversions
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">YES
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">YES</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Limit Orders/Good Til Canceled
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">YES
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Every Other Day</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Money Market Funds- Direct
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">NO
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">NO</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Municipal Bonds
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">YES
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">YES</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Mutual Funds- Closed End
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">YES
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">YES</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Mutual Funds- Open End- Direct
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">NO
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">NO</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Opening of a Bank Trading Account
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">YES
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">YES</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Opening of a Brokerage Account
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">YES
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">YES</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Options (60 &#043; days)
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">YES
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">YES</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Private Partnerships- Affiliated **
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">NO
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">NO</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Private Investment Partnerships-Unaffiliated
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">YES
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">YES</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Restricted Stock (Private Placements)
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">YES
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">YES</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Rights Offering (including over subscriptions)-Exercising
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">YES
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">NO</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Structured Notes
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">YES
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">YES</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Stock- Purchase/Sales
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">YES
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">YES</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Stock- Short Sales
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">YES
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">YES</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Stock- Dividends/Splits
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">YES-annually
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">NO</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>Systematic Investment Plan with Corporate Issuer</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">YES-annually
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">NO</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Transfer of a Brokerage Account
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">YES
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">YES</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Trust Accounts
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">YES
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">See Compliance</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Unit Investment Trust
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">YES
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">NO</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">US Government Securities
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">NO
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">NO</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">US Savings Bonds (EE)
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">NO
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">NO</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Variable Annuities
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">NO
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">NO</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>Wrap Accounts</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">YES
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">See Compliance</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Zweig Fund/Zweig Total Return Fund
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">YES
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">See Compliance and Legal</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left"><B>*</B></TD>
    <TD>&nbsp;</TD>
    <TD><B>Registered Representatives must receive permission from their respective broker/dealer to open this account.</B></TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left"><B>**</B></TD>
    <TD>&nbsp;</TD>
    <TD><B>This information will not be reportable to compliance; however, the information will be maintained by the
partnerships&#146; general counsel.<BR></B>
</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">1/1/98</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;
</TD>
</TR>


</TABLE>


<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">






<DIV align="CENTER" style="font-size: 10pt; margin-top: 12pt"><B>Appendix&nbsp;B &#151; Sanctions</B>
</DIV>

<DIV align="center">
<TABLE style="font-size: 8pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Q Report Affiliated MF</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" colspan="3" style="border-bottom: 1px solid #000000"><B>Initial Holdings Report</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" colspan="3" style="border-bottom: 1px solid #000000"><B>Q Report</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Transactions</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Annual Report</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Pre-Clear</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">All Access Persons
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">All Access Persons
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">Investment Personnel
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">All Access Persons
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">Advisory Persons</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>&#149;</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">1st violation &#151; written warning<BR>
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>&#149;</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">1st violation &#151; written warning
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>&#149;</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">1st violation &#151; written warning <BR>
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>&#149;</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">1st violation &#151; written warning
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>&#149;</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">1<SUP style="font-size: 85%; vertical-align: text-top">st</SUP> violation &#151; written warning<BR></TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>&#149;</B><BR><BR><BR><BR>
<B>&#149;</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">2<SUP style="font-size: 85%; vertical-align: text-top">nd</SUP> violation
within the
same year &#151; $50.00
fine payable to the
Phoenix Foundation<BR>
3<SUP style="font-size: 85%; vertical-align: text-top">rd</SUP> violation
within the
same year &#151; suspension of trading
privileges for 30&nbsp;days
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>&#149;</B><BR><BR><BR><BR>
<B>&#149;</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">2<SUP style="font-size: 85%; vertical-align: text-top">nd</SUP> violation within the
same year &#151; $50.00 fine
payable to the Phoenix
Foundation<BR>
3<SUP style="font-size: 85%; vertical-align: text-top">rd</SUP> violation within the
same year &#151; suspension of
trading privileges for 30
days
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>&#149;</B><BR><BR><BR><BR>
<B>&#149;</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">2<SUP style="font-size: 85%; vertical-align: text-top">nd</SUP> violation within the
same year &#151; $50.00 fine
payable to the Phoenix
Foundation<BR>
3<SUP style="font-size: 85%; vertical-align: text-top">rd</SUP> violation within the
same year &#151; suspension
of trading privileges for
30&nbsp;days
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>&#149;</B><BR><BR><BR><BR><BR>
<BR><br><B>&#149;</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">2<SUP style="font-size: 85%; vertical-align: text-top">nd</SUP> violation within the same year &#151; $100 fine payable to the
Phoenix Foundation and
suspension of trading privileges
for 30&nbsp;days<BR>
3<SUP style="font-size: 85%; vertical-align: text-top">rd</SUP> violation within the same
year &#151; suspension of trading
privileges for 90&nbsp;days</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="center">
<TABLE style="font-size: 8pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center" colspan="3"><B>Pre-Clear IPOs &#038;</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>60-Day Holding</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Market Timing Prohibition</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Limited Offerings*</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" colspan="3" style="border-bottom: 1px solid #000000"><B>Blackout</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Requirement</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>and Q Certificate</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Open Order Rule</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Advisory Personnel
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">Advisory Personnel
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">Investment Personnel
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">Investment Personnel</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><U>Investment Personnel</U></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>&#149;</B><BR><BR><BR><BR><BR><BR>
<bR><B>&#149;</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">1<SUP style="font-size: 85%; vertical-align: text-top">st</SUP> violation &#151;
Reported to Chief
Legal Officer and
President of Phoenix
Investment Counsel
for determination of
appropriate sanctions.<br>
2<SUP style="font-size: 85%; vertical-align: text-top">nd</SUP> violation &#151;
possible
grounds for
termination
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>&#149;</B><BR><BR><bR><BR>
<B>&#149;</B><BR><BR><bR><bR><BR><BR><BR>
<B>&#149;</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">1<SUP style="font-size: 85%; vertical-align: text-top">st</SUP> violation &#151;
disgorgement of profits on
the personal trade<br>
2<SUP style="font-size: 85%; vertical-align: text-top">nd</SUP> violation &#151; Reported to
Chief Legal Officer and
President of Phoenix
Investment Counsel for
determination of
appropriate sanctions.<br>
3<SUP style="font-size: 85%; vertical-align: text-top">rd</SUP> violation &#151; possible
grounds for termination
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>&#149;</B><BR><BR>
<B>&#149;</B><BR><BR><BR><BR><br>
<B>&#149;</B>

</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">1<SUP style="font-size: 85%; vertical-align: text-top">st</SUP> violation &#151; written
warning<br>
2<SUP style="font-size: 85%; vertical-align: text-top">nd</SUP> violation &#151; violation
within the same year -
$50.00 fine payable to
the Phoenix Foundation<br>
3<SUP style="font-size: 85%; vertical-align: text-top">rd</SUP> violation within the
same year &#151; suspension
of trading privileges for
60&nbsp;days
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>&#149;</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">1<SUP style="font-size: 85%; vertical-align: text-top">st</SUP> violation &#151; possible
grounds for termination at
determination of Chief
Legal Officer and President
of Phoenix Investment
Counsel
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>&#149;</B><BR><BR><BR><BR><BR><BR>
<br><B>&#149;</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">1<SUP style="font-size: 85%; vertical-align: text-top">st</SUP> violation &#151; Reported to
Chief Legal Officer and
President of Phoenix
Investment Counsel for
determination of appropriate
sanctions.<br>
2<SUP style="font-size: 85%; vertical-align: text-top">nd</SUP> violation &#151; possible grounds for termination</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>
<DIV style="font-size: 10pt; margin-top: 3pt">*s/t NASD Prohibition
Rule 2790.</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

</BODY>
</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.R.3
<SEQUENCE>9
<FILENAME>y28007exv99wrw3.htm
<DESCRIPTION>EX-99.R.3: CODE OF ETHICS
<TEXT>
<HTML>
<HEAD>
<TITLE>EX-99.R.3</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="right" style="font-size: 10pt; margin-top: 12pt">Exhibit&nbsp;R(3)
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>POLICY AND PROCEDURES OF<BR>
ZWEIG CONSULTING LLC<BR>
DESIGNED TO DETECT AND PREVENT INSIDER TRADING</B>

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>SECTION I. POLICY STATEMENT ON INSIDER TRADING</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>A. Introduction</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Zweig Consulting LLC (hereinafter referred to as the &#147;Adviser&#148;) seeks to foster a reputation
for integrity and professionalism. That reputation is a vital business asset. The confidence and
trust placed in us by our clients is something we should value and endeavor to protect. To further
that goal, this Policy Statement implements procedures to deter the misuse of material, nonpublic
information in securities transactions.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Trading securities while in possession of material, nonpublic information or improperly
communicating that information to others may expose you to stringent penalties. Criminal sanctions
may include a fine of up to $1,000,000 and/or ten years imprisonment. The Securities and Exchange
Commission can recover the profits gained or losses avoided through the violative trading, impose a
penalty of up to three times the illicit windfall and issue an order permanently barring you from
the securities industry. Finally, you may be sued by investors seeking to recover damages for
insider trading violations.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Regardless of whether a government inquiry occurs, the Adviser views seriously any violation
of this Policy Statement. Such violations constitute grounds for disciplinary sanctions, including
dismissal.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>B. Scope of the Policy Statement</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This Policy Statement is drafted broadly; it will be applied and interpreted in a similar
manner. This Policy Statement applies to securities trading and information handling by directors,
officers and employees of the Adviser (including spouses, minor children and adult members of their
households).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This Policy Statement on Insider Trading and the following procedures to implement the
Adviser&#146;s Policy represent the Adviser&#146;s current such Policy Statement and Procedures. Such Policy
Statement and Procedures may be revised or supplemented from time to time by the issuance of a new
Policy Statement and Procedures or a supplement or memorandum from the Adviser&#146;s chief executive
officer and/or compliance officer.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The law of insider trading is unsettled and continuously developing; an individual
legitimately may be uncertain about the application of the Policy Statement in a particular
circumstance. Often, a single question can forestall disciplinary action or complex legal problems.
You should direct any questions relating to this Policy Statement to the Compliance Officer, who is
Marc Baltuch, or, in his absence, Melinda Bercy or Jennifer McGovern. You also must notify the
Compliance Officer immediately if you have any reason to believe that a violation of this Policy
Statement has occurred or is about to occur.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>C. Policy Statement on Insider Trading</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No person to whom this Policy Statement applies, including you, may <I>trade, </I>either personally
or on behalf of others (such as mutual funds and private accounts managed by the Adviser), while in
possession of material, nonpublic information; nor may any personnel of the Adviser <I>communicate</I>
material, nonpublic information to others in violation of the law. This section reviews principles
important to this Policy Statement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>1.&nbsp;What is Material Information ?</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Information is material where there is a substantial likelihood that a reasonable investor
would consider it important in making his or her investment decisions. Generally, this is
information whose disclosure will have a substantial effect on the price of a company&#146;s securities.
No simple &#147;bright line&#148; test exists to determine when information is material; assessments of
materiality involve a highly fact-specific inquiry. For this reason, you should direct any
questions about whether information is material to the Compliance Officer.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Material information often relates to a company&#146;s results and operations, including, for
example, dividend changes, earnings results, changes in previously released earnings estimates,
significant merger or acquisition proposals or agreements, major litigation, liquidation problems,
and extraordinary management developments.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Material information also may relate to the <I>market </I>for a company&#146;s securities. Information
about a significant order to purchase or sell securities may, in some contexts, be deemed material.
Similarly, prepublication information regarding reports in the financial press also may be deemed
material. For example, the United States Supreme Court upheld the criminal convictions of insider
trading defendants who capitalized on prepublication information about the WALL STREET JOURNAL&#146;S
<I>Heard on the Street </I>column.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>2.&nbsp;What is Nonpublic Information ?</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Information is &#147;public&#148; when it has been disseminated broadly to investors in the marketplace.
Tangible evidence of such dissemination is the best indication that the information is public. For
example, information is public after it has become available to the general public through a public
filing with the SEC or some other government agency, the Dow Jones &#147;tape&#148; or the WALL STREET
JOURNAL or some other publication of general circulation, and after sufficient time has passed so
that the information has been disseminated widely.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>3.&nbsp;Identifying Inside Information</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Before executing any trade for yourself or others, including investment companies or private
accounts managed by the Adviser, you must determine whether you have access to material, nonpublic
information. If you think that you might have access to material, nonpublic information, you should
take the following steps.
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="left">i.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Report the information and proposed trade immediately to the
Compliance Officer.</TD>
</TR>



</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->2<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">


<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="left">ii.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Do not purchase or sell the securities on behalf of yourself or
others, including investment companies or private accounts managed by the
Adviser.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="left">iii.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Do not communicate the information inside or outside the Adviser, other
than to the Compliance Officer.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="left">iv.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>After the Compliance Officer has reviewed the issue, the firm will determine
whether the information is material and nonpublic and, if so, what action
the firm should take.</TD>
</TR>

</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">You should consult with the Compliance Officer before taking any action. This degree of caution
will protect you, your clients and the firm.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>4.&nbsp;Contacts with Public Companies</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For the Adviser, contacts with public companies represent an important part of research
efforts. The Adviser may make investment decisions on the basis of the firm&#146;s conclusions formed
through such contacts and analysis of publicly-available information. Difficult legal issues arise,
however, when, in the course of these contacts, an employee of the Adviser or other person subject
to this Policy Statement becomes aware of <I>material, </I>nonpublic information. This could happen, for
example, if a company&#146;s Chief Financial Officer prematurely discloses quarterly results to an
analyst, or an investor relations representative makes a selective disclosure of adverse news to a
handful of investors. In such situations, the Adviser must make a judgment as to its further
conduct. To protect yourself, your clients and the firm, you should contact the Compliance Officer
immediately if you believe that you may have received material, nonpublic information.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>5.&nbsp;Tender Offers</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Tender offers represent a particular concern in the law of insider trading for two
reasons. First, tender offer activity often produces extraordinary gyrations in the price of the
target company&#146;s securities. Trading during this time period is more likely to attract regulatory
attention (and produces a disproportionate percentage of insider trading cases). Second, the SEC
has adopted a rule which expressly forbids trading and &#147;tipping&#148; while in possession of material,
nonpublic information regarding a tender offer received from the tender offeror, the target company
or anyone acting on behalf of either. Employees of the Adviser and others subject to this Policy
Statement should exercise particular caution any time they become aware of nonpublic information
relating to a tender offer.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->3<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>SECTION II. PROCEDURES TO IMPLEMENT THE ADVISER&#146;S POLICY STATEMENT ON INSIDER TRADING</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following procedures have been established to aid the officers, directors and
employees of the Adviser in avoiding insider trading, and to aid the Adviser in preventing,
detecting and imposing sanctions against insider trading. Every officer, director and employee of
the Adviser must follow these procedures or risk serious sanctions, including dismissal,
substantial personal liability and criminal penalties. If you have any questions about these
procedures, you should consult the Compliance Officer.
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><B>1.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Personal Securities Trading</B></TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="left"><B>A.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Prohibited Conduct &#151; Advance Clearance Required for Securities Transactions;
Subsequent Reporting of Authorized Securities Transactions</B></TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No officer, director or employee of the Adviser (or his or her respective family members)
shall buy or sell any security for his (or her) own account or for an account in which he (or she)
has, or as a result of the transaction acquires, any direct or indirect beneficial ownership
(referred to herein as a &#147;personal transaction&#148;) unless:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="left">1.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Advance clearance of the transaction has been obtained; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="left">2.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The transaction is reported in writing to the Compliance Officer in
accordance with the requirements below (pages 8 - 9).</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The term &#147;security&#148; includes any stock, warrant, option, corporate bond, or any single stock
derivative instrument. In addition, any trades in commodities or financial futures, including broad
based market index futures, are subject to the reporting requirement only.
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="left"><B>B.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Restrictions and Limitations on Personal Securities Transactions</B></TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following restrictions and limitations govern investments and personal securities
transactions by all officers, directors and employees of the Adviser (and their family members):
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="left">1.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U>Prohibition on 60 Day Short-Term Trading</U></TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Securities purchased may not be sold at a profit until at least 60&nbsp;days from
the purchase trade date, and securities sold may not be purchased at a lower
price until at least 60&nbsp;days from the sale trade date. Any violation will
result in disgorgement of all profits from the transaction. This restriction
on 60&nbsp;day short-term trades may be waived by the Compliance Officer with
respect to trades of 500 shares or less of the common stock of a company
with a market capitalization of at least $1&nbsp;billion.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="left">2.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U>Prohibition on Participation in IPO&#146;s</U></TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>No officer, director or employee of the Adviser may acquire any security in
an Initial Public Offering (IPO).</TD>
</TR>



</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->4<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">



</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="left">3.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U>Special Permission Required for Private Placements</U></TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Private placements of any kind (including without limitation limited partnership
investments and venture capital investments) may only be acquired with special
permission of the Compliance Officer (who will generally consult in-house counsel)
and, if approved, will be subject to continuous monitoring for possible future
conflict. A request for approval of a private placement should generally be
submitted at least one week in advance of the proposed date of investment.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="left">4.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U>Disclosure of Private Placements in Subsequent Investment Decisions</U></TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Any officer, director or employee of the Adviser who has or acquires a personal
position in an issuer through a private placement must affirmatively disclose that
interest if such officer, director or employee is involved in consideration of any
subsequent investment decision regarding any security of that issuer or an
affiliate by any account managed by the Adviser. In such event, the final
investment decision shall be independently reviewed by the Compliance Officer.
Written records of any such circumstance shall be maintained and sent to the
Compliance Officer.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="left"><B>C.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Advance Clearance Requirement</B></TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>1.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Procedures</B></TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>a)</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>From Whom Obtained</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>In addition to the above Restrictions and Limitations on Personal
Securities Transactions, advance clearance of a personal transaction in a
security must be obtained from the Compliance Officer. If the personal
transaction relates to the stock of either The Zweig Fund, Inc. or The
Zweig Total Return Fund, Inc., the transaction will also require advance
clearance from in-house counsel.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>b)</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Time of Clearance</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>All approved securities transactions must take place on the same day or
the next business day that the advance clearance is obtained. If the
transaction is not completed on the date of clearance or the next business
day, a new clearance must be obtained, including one for any uncompleted
portion. <U>Post-approval is not permitted under this Policy
Statement</U>. If it is determined that a trade was completed before
approval, it will be considered a violation of this Policy Statement.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>c)</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Watermark Securities, Inc. Brokerage Account</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Transactions are required to be executed through a Watermark Securities,
Inc. (&#147;Watermark&#148;) brokerage account. Using &#147;Watermark On-Line&#148; will
satisfy the advance clearance requirement.</TD>
</TR>




</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->5<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">


<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>In order to maintain an account outside of Watermark Securities,
<I>express written permission of the Chief Compliance Officer is
required. </I>It is the employee&#146;s responsibility to seek approval for
trades and to arrange for the broker-dealer to send duplicate
confirmations of such trades and duplicate brokerage statements to
the Compliance Officer. Failure to do so will be considered a
significant violation of this Policy Statement.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>d)</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Form</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>For trades other than &#147;Watermark On-Line,&#148; clearance must be
obtained by completing and signing the Securities Transaction
Approval Form provided for that purpose by the Compliance Department
and obtaining the signature of a Compliance Officer.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>A sample copy of the Securities Transaction Approval Form is
attached.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>2.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Factors Considered in Clearance of Personal Transactions</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>In addition to the above Restrictions and Limitations on Personal Securities
Transactions, the Compliance Officer, in keeping with the general principles
and objectives of this Policy Statement, may refuse to grant clearance of a
personal transaction in his sole discretion without being required to
specify any reason for the refusal. Generally, the Compliance Officer will
consider the following factors in determining whether or not to clear a
proposed transaction:</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Whether the amount or the nature of the
transaction or person making it is likely to affect the price or market
of the security.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Whether the individual making the proposed
purchase or sale is likely to benefit from purchases or sales being
made or considered on behalf of any account managed by the Adviser.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">c)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Whether the transaction is non-volitional on
the part of the individual.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">d)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>As discussed above, certain of the restrictions
and limitations on personal securities transactions may not apply to
trades of 500 shares or less in the common stock of a company with a
market capitalization of at least $1&nbsp;billion. A list of such companies
is maintained by the Compliance Department. Such trades nevertheless do
require advance clearance from the Compliance Officer.</TD>
</TR>

</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>(Important: </B>The Compliance Department monitors all transactions by all officers, directors and
employees of the Adviser (including transactions in the common stock of such $1&nbsp;billion market<BR>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->6<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">capitalization companies) in order to ascertain any pattern of conduct which may evidence conflicts
or potential conflicts with the principles and objectives of this Policy Statement, including a
pattern of frontrunning.)
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="left"><B>3.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Exempt Securities</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The securities listed below are exempt from the above advance clearance
requirement <B>and</B> the quarterly and annual reporting requirements described
below. Therefore, it is not necessary to obtain advance clearance for
personal transactions in any of the following securities nor is it necessary
to report such securities in the quarterly transaction reports or annual
securities holdings list:</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>U.S. Government Securities (including options
and futures on such);</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Bank Certificates of Deposit;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">c)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Bankers&#146; Acceptances;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">d)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Commercial Paper;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">e)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Money Market Instruments; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">f)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Money Market Funds and Other <U>Open-end
</U>
Investment Companies (Mutual Funds) <BR>
(Closed-end funds must be
pre-approved).</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">g)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Such other exempt securities as may from time
to time be listed on the attached appendix A.</TD>
</TR>

</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Automatic dividend reinvestment plan investments (DRIP&#146;s) for stock in publicly traded companies
are also exempt from the advance clearance requirement and the quarterly reporting requirement;
however, DRIP acquisitions should be reported on an annual basis.
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="left"><B>4.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Accounts Covered</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Advance clearance must be obtained for any personal transaction in a
security by an officer, director or employee of the Adviser if such person
has, or as a result of the transaction acquires, any direct or indirect
beneficial ownership in the security.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The term &#147;beneficial ownership&#148; is defined by rules of the SEC which will be
applicable in all cases. Generally, under the SEC rules, <BR>
<U>a person is
regarded as having beneficial ownership of securities held in the name
of:</U></TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>a husband, wife or a minor child;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>a relative (including in-laws, step-children,
or step-parents) sharing the same house;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">c)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>anyone else if the officer, director or employee:</TD>
</TR>



</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->7<!-- /Folio -->
</DIV>

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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">



</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="9%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(i)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>obtains benefits substantially equivalent to ownership
of the securities; or</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="9%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(ii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>can obtain ownership of the securities
immediately or at some future time.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="left"><B>5.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Exemption from Clearance Requirement</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Clearance is not required for any account over which an officer, director or
employee has no influence or control; however, the existence of such an account
must be reported to the Compliance Officer. The Compliance Officer, in his sole
discretion, has the authority to request further information and documentation
regarding any account over which an officer, director or employee reports he has no
influence or control.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="left"><B>D.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Report of Transactions</B></TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="9%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>1.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Transactions and Accounts Covered</B></TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="12%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>All personal transactions
in any account for which advance clearance is required must
also be reported in the next quarterly transaction report
after the transaction is effected.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="12%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U>Every officer, director
and employee of the Adviser must file a report when due even
if such person made no purchases or sales of securities
during the period covered by the report</U>.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="9%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>2.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Time of Reporting</B></TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="12%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">A.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Reports of personal
transactions must be made within 10&nbsp;days after the end of
each calendar quarter. Thus, reports are due on the 10th day
of January, April, July and October.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="12%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">B.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The January Report also
requires an annual listing of all non-exempt securities
holdings as of December&nbsp;31 of the preceding year (a current
listing will also be required upon the effectiveness of this
Policy Statement). New employees will be required to provide
a listing of all non-exempt securities holdings as of the
date of commencement of employment.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="9%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>3.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Form of Reporting</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="9%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The report must be on the form provided by the Compliance
Department. A copy of the form is attached.</TD>
</TR>

</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->8<!-- /Folio -->
</DIV>

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">



</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="9%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>4.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Responsibility to Report</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="9%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The responsibility for taking the initiative to report is imposed
on each individual required to make a report. Any effort by the
Compliance Department to facilitate the reporting process does not
change or alter that responsibility.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="9%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>5.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Where to File Report</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="9%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>All reports must be filed with the Compliance Department.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="9%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>6.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Codes of Ethics</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="9%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>To the extent the Adviser acts as subadvisor to registered
investment companies, personnel of the Adviser may be subject to
the Codes of Ethics of such investment companies.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="left"><B>E.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>High-Risk Trading Activities</B></TD>
</TR>

</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Certain high-risk trading activities, if used in the management of a personal trading
portfolio, are risky not only because of the nature of the securities transactions themselves, but
also because of the potential that action necessary to close out the transactions may become
prohibited during the pendency of the transactions. Examples of such activities include short sales
of common stock and trading in derivative instruments such as option contracts to purchase (&#147;call&#148;)
or sell (&#147;put&#148;) securities at certain predetermined prices. Officers, directors and employees of
the Adviser should understand that short sales and trading in derivative instruments involve
special risks - derivative instruments, for example, ordinarily have greater price volatility than
the underlying security. The fulfillment of the obligations owed by each officer, director and
employee to his or her employer may heighten those risks. For example, if the Adviser becomes aware
of material, nonpublic information about the issuer of the underlying securities, such Adviser&#146;s
personnel may find themselves &#147;frozen&#148; in a position in a derivative security. The Adviser will not
bear any losses resulting in personal accounts through the implementation of this Policy Statement.
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="left"><B>F.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Restrictions on Disclosures</B></TD>
</TR>

</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Officers, directors and employees of the Adviser shall not disclose any nonpublic information
(whether or not it is material) relating to the Adviser or their securities transactions on behalf
of clients to any person outside the Adviser (unless such disclosure has been authorized by such
Adviser). Material, nonpublic information may not be communicated to anyone, including persons
within the Adviser, except as provided in Section&nbsp;I above. Such information must be secured. For
example, access to files containing material, nonpublic information and computer files containing
such
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->9<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">information should be restricted, and conversations containing such information, if
appropriate at all, should be conducted in private (for example, <I>not </I>by cellular telephone,
to avoid potential interception).
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="left"><B>G.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Review</B></TD>
</TR>

</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Compliance Officer will review and consider any proper request of an officer,
director or employee of the Adviser for relief or exemption from any restriction, limitation
or procedure contained herein, which restriction, limitation or procedure is claimed to
cause a hardship for such person. The Compliance Officer&#146;s decision is completely within his
sole discretion.
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><B>2.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Service as Director</B></TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No officer, director or employee of the Adviser may serve on the board of any company whose
securities are publicly traded (other than a registered investment company managed by the Adviser)
without prior approval of the Compliance Officer. If such approval is granted, it will be subject
to the implementation of appropriate procedures to isolate investment personnel serving as
directors from making investment decisions for an account managed by such Adviser concerning the
company in question.
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><B>3.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Gifts</B></TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No officer, director or employee of the Adviser shall accept, directly or indirectly, anything
of value, including gifts and gratuities, in excess of $100 per year from any person or entity that
does business with the Adviser. This restriction does not apply to bona fide dining or bona fide
entertainment if, during such dining or entertainment, the officer, director or employee is with
the person or representative of the entity that does business with the Adviser.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->10<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>4. Acknowledgement</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;I have read and understand this Policy Statement on Insider Trading. I certify that I have, to
date, complied and will continue to comply with this Policy Statement. I understand that any
violation of this Policy Statement may lead to sanctions, including dismissal.<BR>
<BR>
&nbsp;<BR>

</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="40%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="20%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="30%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD align="center" valign="top" style="border-top: 1px solid #000000"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">(Signature)
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">(Date)</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px"><DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
(Print name)
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->11<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>SECTION III. SUPERVISORY PROCEDURES</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Adviser has assigned the Compliance Officer the primary responsibility for the
implementation and maintenance of the Adviser&#146;s policy and procedures against insider trading.
Supervisory Procedures can be divided into two classifications &#151; prevention of insider trading and
detection of insider trading.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>1. Prevention of Insider Trading</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To prevent insider trading, the Compliance Officer should:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">i.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>provide, on a regular basis, an education program to familiarize officers,
directors and employees with the Adviser&#146;s policy and procedures;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">ii.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>answer questions regarding the Adviser&#146;s policy and procedures;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">iii.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>resolve issues of whether information received by an officer, director or
employee of the Adviser is material and nonpublic and determine what action, if any,
should be taken;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">iv.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>review on a regular basis and update as necessary the Adviser&#146;s policy
and procedures;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">v.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>when it has been determined that an officer, director or employee of the
Adviser has material, nonpublic information:</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">1.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>implement measures to prevent dissemination of such information, and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">2.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>if necessary, restrict officers, directors and employees from
trading the securities; and</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">vi.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>promptly review, and either approve or disapprove, in writing, each
request of an officer, director or employee of the Adviser for clearance to trade in
specified securities.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>2. Detection of Insider Trading</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To detect insider trading, the Compliance Officer should:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">i.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>review the trading activity reports filed by each
officer, director and employee;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">ii.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>review the trading activity of mutual funds and private
accounts managed by the Advisers;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">iii.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>review trading activity (if any) of the Adviser&#146;s own account;</TD>
</TR>

</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->12<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">


<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">iv.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>promptly investigate all reports of any possible violations of the
Adviser&#146;s Policy and Procedures to Detect and Prevent Insider Trading; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">v.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>coordinate the review of such reports with other
appropriate officers, directors or employees of the Adviser.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>3. Special Reports to Management</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Promptly upon learning of a serious violation of the Adviser&#146;s Policy and Procedures to
Detect and Prevent Insider Trading, the Compliance Officer should prepare a written report to
management providing full details, which may include (1)&nbsp;the name of the particular securities
involved, if any; (2)&nbsp;the date(s) the Compliance Officer learned of such violation and began
investigating; (3)&nbsp;the account(s) and individual(s) involved; (4)&nbsp;any actions taken as a result of
the investigation; and (5)&nbsp;recommendations for further action.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>4. General Reports to Management</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On an as-needed or periodic basis, the Adviser may find it useful for the Compliance
Officer to prepare a written report to the management and/or Board of Directors of the Adviser
setting forth some or all of the following:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">i.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>a summary of existing procedures to detect and prevent insider trading;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">ii.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>a summary of any changes in procedures made in the last year;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">iii.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>full details of any investigation since the last report
(either internal or by a regulatory agency) of any suspected insider trading,
the results of the investigation and a description of any changes in procedures
prompted by any such investigation;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">iv.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>an evaluation of the current procedures and a description
of any anticipated changes in procedures; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">v.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>a description of the Adviser&#146;s continuing educational
program regarding insider trading, including the dates of such programs since
the last report to management.</TD>
</TR>

</TABLE>
</DIV>



<P align="center" style="font-size: 10pt"><!-- Folio -->13<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>INVESTMENT REPORTING MATRIX<BR>
(Appendix&nbsp;A to Code of Ethics)</B>

</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="62%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="11%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="21%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">

<TD nowrap align="left" style="border-bottom: 1px solid #000000"><B>Type
of Investment</B></TD>
    <TD>&nbsp;</TD>

<TD nowrap align="left" style="border-bottom: 1px solid #000000"><B>Reportable</B></TD>
    <TD>&nbsp;</TD>

<TD nowrap align="left" style="border-bottom: 1px solid #000000"><B>Preclearance</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Bank Conversions
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">YES
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">YES</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Blind Trusts
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">YES
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">NO</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Call/Matured Securities
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">YES
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">NO</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Cash Management Accounts (No Securities Trading)*
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">NO
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">NO</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Closely Held Corporate Stock
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">YES
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">NO</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Co-op Apartment Shares
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">NO
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">NO</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Commodities
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">YES
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">NO</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Convertible Bonds
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">YES
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">YES</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><b>Corporate Debentures</b>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">YES
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><b>NO</b></TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Corporate Mergers/Tenders
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">YES
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">NO</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Dividend Reinvestment Plans
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">YES-annually
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">NO</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Exchange Traded Funds (&#147;ETF&#148;)
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">YES
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">YES</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Financial Futures
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">YES
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">NO</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><b>Foreign Government Bonds
</b></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">YES
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>NO</b></TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Futures (excluding U.S. Govt Securities)
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">YES
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">YES</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Gifts of Securities
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">YES
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">NO</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Initial Public Offering
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" valign="top">NOT ALLOWED
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">N/A</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Insurance Company Conversions
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">YES
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">YES</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Limit Orders/Good Til Canceled
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">YES
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Every Other Day</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Money Market Funds-Direct
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">NO
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">NO</TD>
</TR>
<TR valign="bottom">

<TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>Municipal Bonds</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">YES
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>NO</B></TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Mutual Funds-Closed End
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">YES
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">YES</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Mutual Funds-Open End-Direct
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">NO
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">NO</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Opening of a Bank Trading Account
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">YES
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">YES</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Opening of a Brokerage Account
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">YES
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">YES</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>Options (30 &#043; days) </B>(excluding U.S. Govt Securities)
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">YES
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">YES</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Private Partnerships- Affiliated **
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">NO
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">NO</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Private Investment Partnerships- Unaffiliated
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">YES
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">YES</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Restricted Stock (Private Placements)
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">YES
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">YES</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Rights Offering (including over subscriptions)-Exercising
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">YES
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">NO</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Structured Notes
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">YES
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">YES</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Stock- Purchase/Sales
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">YES
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">YES</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Stock- Short Sales
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">YES
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">YES</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Stock- Dividends/Splits
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">YES-annually
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">NO</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Systematic Investment Plan with Corporate Issuer
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">YES-annually
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">NO</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Transfer of a Brokerage Account
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">YES
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">YES</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Trust Accounts
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">YES
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">See Compliance</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>Unit Investment Trust/Rolls</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">YES
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">NO</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">US Government Securities
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">NO
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">NO</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">US Savings Bonds (EE)
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">NO
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">NO</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Variable Annuities
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">NO
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">NO</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Wrap Accounts
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">YES
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">See Compliance</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Zweig Fund/Zweig Total Return Fund
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">YES
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">See Compliance and Legal</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left"><B>*</B></TD>
    <TD>&nbsp;</TD>
    <TD><B>Registered Representatives must receive permission from their respective broker/dealer to
open this account.</B></TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left"><B>**</B></TD>
    <TD>&nbsp;</TD>
    <TD><B>This information will not be reportable to compliance; however, the
information will be maintained by the partnerships&#146; general counsel.</B></TD>
</TR>

</TABLE>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">1/1/04
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<HTML>
<HEAD>
<TITLE>CORRESP</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="center" style="font-size: 10pt; margin-top: 18pt">The Zweig Total Return Fund, Inc.<BR>
900 Third Avenue<BR>
New York, New York 10022<BR>
(212)&nbsp;451-1100
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 50%">December&nbsp;22, 2006

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Securities and Exchange Commission<BR>
100 F. Street, NE<BR>
Washington, DC 20549

</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">To Whom It May Concern:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant to Section 8(b) of the Investment Company Act of 1940, as amended, and the Securities
Act of 1933, as amended, The Zweig Total Return Fund, Inc. is transmitting herewith for filing a
Registration Statement on Form N-2 (the &#147;Registration Statement&#148;), Investment Company Act File No.
811-05620.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Please direct any comments or inquiries regarding the Registration Statement to Daren R.
Domina, Katten Muchin Rosenman LLP, 575 Madison Avenue, New York, New York 10022, telephone number:
(212)&nbsp;940-6517; facsimile number: (212)&nbsp;894-5517.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Thank you.
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="48%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="48%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Very truly yours,</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">/s/ The Zweig Total Return Fund, Inc.</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">The Zweig Total Return Fund, Inc.</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<P align="center" style="font-size: 10pt"><!-- Folio --><!-- /Folio -->
</DIV>


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