MutualFundWire.com
The insiders' edge for 40 Act industry executives!
an InvestmentWires' Publication
an InvestmentWires' Publication
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MutualFundWire.com
The insiders' edge for 40 Act industry executives!
an InvestmentWires' Publication |
|
Monday, August 25, 2003 Zweig Funds May Lose Zweig Martin Zweig is reportedly in a pique over a recent decision to end the annual fixed payouts in two closed end funds. This weekend Barron's reported that two Phoenix Investment Partners funds bearing the Zweig name (they are the Zweig Fund and Zweig Total Return) may lose Zweig as a director. Zweig's threat to resign came after directors of the two funds declined to authorize the 10 percent annual fixed payout that the funds have historically made during a meeting last week. They failed to renew the payment for "tax considerations," according to the report. Zweig had created the annual payment, which would have included a return of principal this year, as a way to attract investors seeking yield. The payment also served to narrow the fund's discount to NAV. Phoenix first told investors that it was ending the quarterly payouts in late July and cited taxes as reason for the change. Shareholders of the fund would owe additional taxes at an ordinary-income rate on the distribution because the funds have accumulated losses from prior years and pay distributions exceeding those required by the IRS. The funds are also on track to report gains this year. Printed from: MFWire.com/story.asp?s=5703 Copyright 2003, InvestmentWires, Inc. All Rights Reserved |