SOURCE: Zweig Total Return Fund

November 18, 2008 10:50 ET

The Zweig Total Return Fund, Inc. Discloses Sources of Distribution -- Section 19(a) Notice

NEW YORK, NY--(Marketwire - November 18, 2008) - The Board of Directors of The Zweig Total Return Fund, Inc. (NYSE: ZTR) declared a distribution of $0.033 per share to shareholders of record on November 13, 2008, payable November 26, 2008. The Fund has a Managed Distribution Plan to pay 10 percent of the Fund's net asset value on an annualized basis. The Board believes that regular, fixed cash payouts will enhance shareholder value and serve the long-term interests of shareholders.

The following is a required Section 19A notice:

You should not draw any conclusions about the Fund's investment performance from the amount of the distributions or from the terms of the Fund's Managed Distribution Plan.

This notice discloses information on the sources of the distribution as required by SEC Rule 19(a) of the Investment Company Act of 1940 and the Fund's SEC Exemptive Order under Section 19(b) as follows:

Distribution
 Estimates              November 2008 (MTD)       Year-to-date (YTD) (1)
                    --------------------------- ---------------------------
                                   Percentage                  Percentage
                      Per Share    of Current     Per Share    of Current
(Sources)              Amount     Distribution     Amount     Distribution
                    ------------- ------------  ------------- ------------
Net Investment
 Income             $       0.007         22.3% $       0.086         22.3%
                    ------------- ------------  ------------- ------------
Net Realized
 Short-Term Capital
 Gains                          -          0.0%         0.042         11.0%
                    ------------- ------------  ------------- ------------
Net Realized
 Long-Term Capital
 Gains                          -          0.0%         0.003          0.8%
                    ------------- ------------  ------------- ------------
Return of Capital
 (or other Capital
 Source)                    0.026         77.7%         0.254         65.9%
                    ------------- ------------  ------------- ------------
Total Distribution  $       0.033        100.0% $       0.385        100.0%
                    ------------- ------------  ------------- ------------

(1) YTD February 1, 2008 to November 30, 2008. (The distribution paid on
    January 10, 2008 is reportable for tax on Form 1099 in 2007)

The Fund estimates that it has distributed more than its income and net realized capital gains; therefore, a portion of your distribution may be a return of capital. A return of capital may occur when some or all of the money that you invested in the Fund is paid back to you. A return of capital distribution does not necessarily reflect the Fund's investment performance and should not be confused with "yield" or "income."

The amounts and sources of distributions reported in this Notice are only estimates and are not being provided for tax reporting purposes. The actual amounts and sources of the amounts for tax reporting purposes will depend upon the Fund's investment experience during the remainder of its fiscal year and may be subject to change based on tax regulations. You will receive a Form 1099-DIV for the calendar year that will explain how to report these distributions for federal income tax purposes.

Information regarding the Fund's performance and distribution rates is set forth below. Please note that all performance figures are based on the Fund's net asset value ("NAV") and not the market price of the Fund's shares. Performance figures are not meant to represent individual shareholder performance.

Average Annual Total Return on NAV for the 5-year period ended
 October 31, 2008 (2)                                                2.87%
Current Fiscal YTD Annualized Distribution Rate (3)                 11.82%

YTD Cumulative Total Return on NAV (4)                             -12.13%
YTD Cumulative Distribution Rate (5)                                 9.85%

(2) Average Annual Total Return on NAV is the annual compound return for
    the five year period.  It reflects the change in the Fund's NAV and
    reinvestment of all distributions.
(3) Current Fiscal YTD Annualized Distribution Rate is the Cumulative
    Distribution Rate annualized as a percentage of the Fund's NAV as of
    October 31, 2008.
(4) YTD Cumulative Total Return on NAV is the percentage change in the
    Fund's NAV from January 1, 2008 to October 31, 2008, including
    distributions paid and assuming reinvestment of those distributions.
(5) YTD Cumulative Distribution Rate is the dollar value of distributions
    from January 1, 2008 to October 31, 2008 as a percentage of the Fund's
    NAV as of October 31, 2008.

The Zweig Total Return Fund, Inc. is a closed-end fund with an investment objective to seek the highest total return, consisting of capital appreciation and current income, consistent with the preservation of capital. The Zweig closed-end funds are advised by Zweig Advisers LLC. For more information on the Fund, please contact Shareholder Services at 800.272.2700 or visit us on the web at www.virtus.com.

Contact Information

  • For Further Information:
    Zweig Funds Shareholder Services
    (800) 272-2700
    Patricia Baronowski
    The Altman Group
    (212) 400-2604