WEISS TREASURY FUND, 497, 1996-02-26

WEISS TREASURY FUND
497, 1996-02-26

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WEISS TREASURY FUND

Weiss Treasury Only Money Market Fund
Weiss Intermediate Treasury Fund
Weiss Treasury Bond Fund

SUPPLEMENT TO PROSPECTUS DATED JANUARY 17, 1996

Shares of the Weiss Treasury Bond Fund are not currently offered.

Dated: January 17, 1996

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WEISS TREASURY FUND

Weiss Treasury Only Money Market Fund
Weiss Intermediate Treasury Fund
Weiss Treasury Bond Fund

Supplement to Prospectus Dated January 17, 1996

Weiss Money Management, Inc. (the "Adviser"), the investment adviser to Weiss
Treasury Fund (the "Fund") on behalf of each of Weiss Treasury Only Money Market
Fund, Weiss Intermediate Treasury Fund and Weiss Treasury Bond Fund, has no
previous experience advising registered investment companies like the Fund.
However, the Adviser has been advising individuals, trusts, corporations and
other business entities regarding their portfolio investments since 1988. In
addition, the Fund's portfolio manager, John N. Breazeale, has significant
experience advising registered investment companies each as described under
"FUND ORGANIZATION AND MANAGEMENT - Investment Manager" in the Fund's
Prospectus.

Dated: January 17, 1996
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Prospectus
January 17, 1996

WEISS TREASURY FUND

Weiss Treasury Only Money Market Fund
Weiss Intermediate Treasury Fund
Weiss Treasury Bond Fund

4176 Burns Road
Palm Beach Gardens, FL 33410
(800) 289-8100

This Prospectus sets forth concisely the information about Weiss Treasury Only
Money Market Fund, Weiss Intermediate Treasury Fund and Weiss Treasury Bond
Fund, each a series of Weiss Treasury Fund (the "Trust"), that an investor
should know before investing. Each of these series (individually, a "Fund" and
collectively, the "Funds") represents shares of beneficial interest in a sepa-
rate portfolio of securities and other assets with its own objective and poli-
cies.

--Weiss Treasury Only Money Market Fund seeks maximum current income consis-
tent with capital preservation.

--Weiss Intermediate Treasury Fund and Weiss Treasury Bond Fund each seek a
high level of income consistent with capital preservation.

The Funds are no-load funds, selling and redeeming their shares at net asset
value without any sales charges, commissions or redemption fees. For complete
details on how to purchase, redeem and exchange shares, please refer to "How
to Invest in the Funds" on page 8.

Please read this Prospectus carefully and retain it for future reference. Ad-
ditional information about the Funds is contained in the Funds' combined
Statement of Additional Information dated January 17, 1996, which is filed
with the Securities and Exchange Commission and is incorporated by reference
into this Prospectus. The Statement of Additional Information is available
upon request and without charge by writing or calling the Funds at the address
or telephone number listed above.

THESE SECURITIES HAVE NOT BEEN APPROVED BY THE SECURITIES AND EXCHANGE COMMIS-
SION OR ANY STATE SECURITIES COMMISSION, NOR HAS THE SECURITIES AND EXCHANGE
COMMISSION OR ANY STATE SECURITIES COMMISSION PASSED ON THE ACCURACY OR ADE-
QUACY OF THIS PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OF-
FENSE.

INVESTMENTS IN THE FUNDS ARE NEITHER INSURED NOR GUARANTEED BY THE U.S. GOV-
ERNMENT. THERE IS NO ASSURANCE THAT THE WEISS TREASURY ONLY MONEY MARKET FUND
WILL BE ABLE TO MAINTAIN A STABLE NET ASSET VALUE OF $1.00 PER SHARE.

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EXPENSE INFORMATION
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The purpose of the following tables is to assist investors in understanding
the various costs and expenses that they would bear directly or indirectly by
investing in any of the Funds. Further information regarding costs and ex-
penses may be found under "Fund Organization and Management--Investment Manag-
er" in this Prospectus and "Investment Advisory and Other Services--Investment
Manager" in the Statement of Additional Information.

SHAREHOLDER TRANSACTION EXPENSES

<TABLE>
- ---------------------------------------------------------
<S> <C>
Maximum Sales Load Imposed on Purchases None
Maximum Sales Load Imposed on Reinvested Dividends None
Deferred Sales Load None
Redemption Fees(1) None
Exchange Fees $5.00
- ---------------------------------------------------------
- ---------------------------------------------------------
</TABLE>

ANNUAL FUND OPERATING EXPENSES
(For the current fiscal year ending December 31, 1996 as a percentage of
average net assets)
<TABLE>
- ------------------------------------------------------------------------------
<CAPTION>
DISTRIBUTION TOTAL FUND
MANAGEMENT (RULE 12B-1) OTHER OPERATING
FEE(2) FEE EXPENSES EXPENSES(2)
- ------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Weiss Treasury Only Money Market
Fund .46% None .40% .86%
Weiss Intermediate Treasury Fund .46% None .63% 1.09%
Weiss Treasury Bond Fund .00% None .70% .70%
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- ------------------------------------------------------------------------------
</TABLE>

EXAMPLE:
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Based on the level of total Fund operating expenses listed above, you would
pay indirectly the following expenses on a $1,000 investment, assuming a 5%
annual return and redemption at the end of each period:

<TABLE>
- -----------------------------------------------------
<CAPTION>
1 YEAR 3 YEARS
- -----------------------------------------------------
<S> <C> <C>
Weiss Treasury Only Money Market Fund $ 9 $27
Weiss Intermediate Treasury Fund $11 $35
Weiss Treasury Bond Fund $ 7 $22
- -----------------------------------------------------
- -----------------------------------------------------
</TABLE>

THIS EXAMPLE SHOULD NOT BE CONSIDERED REPRESENTATIVE OF PAST OR FUTURE
EXPENSES OR RETURNS. ACTUAL FUND EXPENSES AND RETURNS VARY FROM YEAR TO YEAR
AND MAY BE HIGHER OR LOWER THAN THE AMOUNTS SHOWN.
- -------
1 A $10 service fee may be charged for redemptions by wire.
2 The fees and expenses in the tables and examples above are based on the es-
timated fees and expenses that each Fund expects to incur in its initial
fiscal year ending December 31, 1996, net of fee waivers and/or reimburse-
ments from the Manager and other service providers. Without such waivers
and/or reimbursements, the "Management Fee" and "Total Fund Operating Ex-
penses" for each of the Funds would be as follows: Weiss Treasury Only Money
Market Fund, .50% and 1.18%, respectively; Weiss Intermediate Treasury Fund,
.50% and 1.66%, respectively; Weiss Treasury Bond Fund, .70% and 4.73%, re-
spectively. For the period through April 30, 1996, the Manager has agreed to
waive that portion of its fee and reimburse other operating expenses neces-
sary to maintain the total Fund expenses at .50% for each of the Weiss Trea-
sury Only Money Market Fund and the Weiss Intermediate Treasury Fund.
Through December 31, 1996, the Manager has agreed to waive that portion of
its fee and reimburse other operating expenses necessary to maintain total
Fund expenses at .70% for the Weiss Treasury Bond Fund. See "Fund Organiza-
tion and Management--Investment Manager" for a more detailed discussion of
the Funds' fees and expenses.

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INVESTMENT OBJECTIVES, POLICIES AND RISK FACTORS
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The Funds' investment manager, Weiss Money Management, Inc. (the "Manager"),
uses a variety of different investments and investment techniques in seeking
to achieve each Fund's investment objective. Each Fund does not use all of the
investment techniques described below. Investors should consider which Fund
best meets their investment goals. Although each Fund will attempt to achieve
its investment objective, there is no assurance it will be successful.

Except as otherwise indicated, the Funds' investment objectives and policies
are not fundamental and may be changed without shareholder approval. Share-
holders will receive written notice of any material change in a Fund's invest-
ment objective. If such a change occurs, each shareholder should consider
whether the Fund remains an appropriate investment in light of his or her then
current financial position and needs. The Funds are subject to additional in-
vestment policies and restrictions described in the Statement of Additional
Information, some of which are fundamental and may not be changed without
shareholder approval.

WEISS TREASURY ONLY MONEY MARKET FUND

The investment objective of the Weiss Treasury Only Money Market Fund is to
seek maximum current income consistent with preservation of capital. The Fund
pursues its objective by investing exclusively in U.S. Treasury securities,
and repurchase agreements secured by such obligations. The Fund seeks to main-
tain a constant net asset value of $1.00 per share and declares dividends dai-
ly. Under certain circumstances the Fund may not be able to maintain a stable
net asset value.

Under normal circumstances, at least 80% of the Fund's total assets will be
invested in U.S. Treasury securities, and no more than 20% of the Fund's net
assets will be invested in repurchase agreements backed by such obligations.
For temporary defensive or emergency purposes, the Fund may invest up to 100%
of its assets in cash or other investment companies that invest primarily in
U.S. Treasury securities or repurchase agreements. Accordingly, the Fund is
appropriate for investors who are seeking a high degree of credit safety but
who are unwilling to accept stock or bond market risk. The income earned by
the Fund fluctuates with changes in interest rates.

The Fund will invest only in those securities that conform to the credit qual-
ity standards established under Rule 2a-7 under the Investment Company Act of
1940, as amended (the "1940 Act"). The Manager shall determine whether a secu-
rity presents minimal credit risk under procedures adopted by the Board of
Trustees. The securities in which the Fund may invest must have a remaining
maturity of 397 days or less (as calculated pursuant to Rule 2a-7 under the
1940 Act) and the Fund must maintain a dollar-weighted average portfolio matu-
rity of 90 days or less.

WEISS INTERMEDIATE TREASURY FUND AND WEISS TREASURY BOND FUND

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Weiss Intermediate Treasury Fund's dollar-weighted average portfolio maturity
will be between three and ten years. There is no maturity limitation on the
individual portfolio securities purchased for the Weiss Treasury Bond Fund,
and the dollar-weighted average maturity of the Fund will vary with market
conditions.

Each Fund normally invests at least 80% of its assets in U.S. Treasury securi-
ties, including repurchase agreements collateralized by such obligations. Cur-
rently each Fund intends to invest 100% of its assets in such instruments in-
cluding investment companies that invest primarily in U.S. Treasury securities
and repurchase agreements. For temporary defensive or emergency purposes, each
Fund may invest up to 100% of its assets in cash or other investment companies
that invest primarily in U.S. Treasury securities and repurchase agreements.
Each Fund may invest in a variety of U.S. Treasury securities, including
bonds, notes and bills. The value of each Fund's portfolio (and consequently
its shares) is expected to fluctuate inversely in relation to changes in the
direction of interest rates.

INVESTMENTS

- --U.S. TREASURY SECURITIES. Each Fund invests primarily in U.S. Treasury secu-
rities, which are direct obligations of the U.S. Treasury. U.S. Treasury secu-
rities differ only in their interest rates, maturities and times of issuance.
For example, Treasury bills have initial maturities of one year or less; Trea-
sury notes have initial maturities of one to ten years; and Treasury bonds
generally have initial maturities of greater than ten years. The payment of
principal and interest on U.S. Treasury securities is unconditionally guaran-
teed by the U.S. Government, and therefore they are of the highest possible
credit quality.

- --REPURCHASE AGREEMENTS. As a means of earning income for periods as short as
overnight, each Fund may enter into repurchase agreements that mature within
seven days or less with selected banks and broker-dealers. When a Fund enters
into a repurchase agreement, it buys securities for a specified price and
agrees to resell the securities to the seller at a higher price at some future
date, normally one to seven days from the time of initial purchase.

- --ZERO COUPON SECURITIES. Zero coupon securities are debt obligations which do
not entitle the holder to any periodic payments of interest prior to maturity
or a specified date. Such securities are issued and traded at a discount to
their face amounts or par value.

- --WHEN-ISSUED SECURITIES. Each Fund may purchase securities on a when-issued
or forward delivery basis. When-issued securities involve a commitment by a
Fund to purchase or sell particular securities with payment and delivery tak-
ing place at a future date and permit a Fund to lock in a price or yield on a
security it intends to purchase or sell regardless of future interest rate
changes. At the time of settlement, the market value of the security may be
more or less than at the time of commitment.

- --OTHER INVESTMENT COMPANIES. The Weiss Intermediate Treasury Fund and Weiss
Treasury Bond Fund (and the Weiss Treasury Only Money Market Fund for tempo-
rary defensive or emergency purposes) may each invest in the securities of
other mutual funds investing primarily in U.S. Treasury securities and repur-
chase agreements subject to applicable securities regulations. When a Fund in-
vests in another mutual fund, it pays a pro rata portion of the advisory fees
and other expenses of that fund as a shareholder of that fund. These expenses
are in addition to the advisory and other expenses a Fund pays in connection
with its own operations.

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SPECIAL RISK FACTORS

- --U.S. TREASURY SECURITIES. Because short-term interest rates can fluctuate
substantially over short periods, income risk to shareholders (i.e., the po-
tential for a decline in a Fund's income due to falling interest rates) with
respect to the Funds' investments in short-term U.S. Treasury securities is
expected to be high. As interest rates change, the values of such securities
will also fluctuate.

- --REPURCHASE AGREEMENTS. If the seller of the securities under a repurchase
agreement fails to pay the agreed resale price on the agreed delivery date,
the Fund may incur costs in disposing of the collateral and be subject to
higher losses to the extent such disposal is delayed.

- --ZERO COUPON SECURITIES. Generally, the market prices of zero coupon securi-
ties are more volatile than the prices of securities that pay interest period-
ically in cash and are likely to respond to changes in interest rates to a
greater degree than other types of debt securities having similar maturities
and credit quality.

- --WHEN ISSUED SECURITIES. Securities purchased on a when-issued or delayed de-
livery basis are subject to market price fluctuation, and losses may result if
the value or yield of the security to be purchased declines prior to the set-
tlement date.

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INVESTMENT RESTRICTIONS
- -------------------------------------------------------------------------------

Each Fund has adopted the following fundamental policies which cannot be
changed without shareholder approval:

- --Each Fund may not make loans, except that a Fund may lend its portfolio se-
curities. The entry into repurchase agreements and the purchase of debt in-
struments are not deemed to be loans for purposes of this restriction.

- --Each Fund may not borrow money except for temporary or emergency purposes or
in connection with reverse repurchase agreements, provided that the Fund main-
tains asset coverage of 300% for all borrowings. The Funds have no current in-
tention to engage in reverse repurchase agreements during the coming year.

A complete description of these and other policies and restrictions is con-
tained under "Investment Restrictions" in the Funds' combined Statement of Ad-
ditional Information.

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FUND ORGANIZATION AND MANAGEMENT
- -------------------------------------------------------------------------------

ORGANIZATION OF THE FUND

Each of the Funds is a diversified series of Weiss Treasury Fund, an open-end
management investment company registered under the 1940 Act. The Trust was or-
ganized on August 10, 1995 as a Massachusetts business trust. The Board of
Trustees of the Trust oversees the business affairs of the Trust and is re-
sponsible for significant decisions relating to each Fund's investment objec-
tive and policies. The Trustees delegate the day-to-day management of the
Funds to the officers of the Trust.

Shareholders have one vote for each share held on matters on which they are
entitled to vote. Separate votes are taken by each Fund only if a matter af-
fects or requires the vote of only that Fund. The Funds are not required to
and do not currently intend to hold annual shareholder meetings, although spe-
cial meetings may be called for purposes such as electing or removing Trust-
ees, changing fundamental investment policies, or approving certain contracts.
Shareholders will be assisted in communicating with other shareholders in con-
nection with removing a Trustee as if Section 16(c) of the 1940 Act were ap-
plicable.

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INVESTMENT MANAGER

Weiss Money Management, Inc., 4176 Burns Road, Palm Beach Gardens, Florida
33410 (the "Manager"), is the investment adviser to each of the Funds, and is
responsible for the day-to-day management of their respective portfolios. The
Manager has been advising individuals, trusts, corporations and other business
entities since 1988 but has no previous experience advising registered invest-
ment companies ("mutual funds"). Under investment advisory agreements with
each of the Funds, the Manager provides continuous advice and recommendations
concerning each Fund's investments. The Funds have each agreed to compensate
the Manager for its services by the monthly payment of a fee at the annual
rate of .50% of average net assets, with respect to Weiss Treasury Only Money
Market Fund and the Weiss Intermediate Treasury Fund, and .70% of average net
assets, with respect to Weiss Treasury Bond Fund. For the period through April
30, 1996, the Manager has agreed to waive that portion of its fee and reim-
burse other operating expenses necessary to maintain total annual Fund ex-
penses at .50%, for Weiss Treasury Only Money Market Fund and Weiss Intermedi-
ate Treasury Fund. For the period through December 31, 1996, the Manager has
agreed to waive that portion of its fee and reimburse other operating expenses
necessary to maintain total annual Fund expenses at .70% for the Weiss Trea-
sury Bond Fund.

John N. Breazeale is the portfolio manager for each of the Funds. Mr.
Breazeale is the President of Weiss Money Management, Inc., and President and
a Trustee of the Trust. Mr. Breazeale has been a portfolio manager with the
Manager since 1994. Mr. Breazeale has over 25 years' experience in the securi-
ties industry and has provided portfolio management services at Provident In-
stitutional Management Inc., Mitchell Hutchins Asset Management Inc. (a sub-
sidiary of PaineWebber Group), and most recently with Mackenzie Investment
Management Inc.

The Manager pays the compensation and expenses of all trustees, officers and
executive employees of the Trust who are affiliated persons of the Manager.
Each Fund is responsible for all its other expenses, including fees and ex-
penses incurred in connection with membership in investment company organiza-
tions, brokers' commissions, legal, auditing and accounting expenses, taxes
and governmental fees, the fees and expenses of the transfer agent, the ex-
penses or fees for registering or qualifying Fund securities for sale, the
cost of printing and distributing reports and notices to shareholders, the
fees and disbursements of custodians, and the fees and expenses of trustees,
officers and employees of the Trust who are not affiliated with the Manager.

DISTRIBUTOR

Each Fund's shares are sold on a continuous basis by Weiss Funds, Inc., 4176
Burns Road, Palm Beach Gardens, Florida 33410, a registered broker-dealer (the
"Distributor") and wholly-owned subsidiary of the Manager.

ADMINISTRATOR

PFPC, Inc., Bellevue Park Corporate Center, 400 Bellevue Parkway, Wilmington,
Delaware 19809 ("PFPC"), performs various administrative and accounting serv-
ices for each Fund. These services include maintenance of books and records,
preparation of governmental filings and shareholder reports and computation of
net asset values and dividend distributions. For its administrative services,
PFPC receives a fee, payable monthly, at the rate of .10% per annum of the av-
erage daily net assets of each Fund, plus any reasonable out-of-pocket ex-
penses.

TRANSFER AGENT, DIVIDEND DISBURSING AGENT AND CUSTODIAN

PFPC serves as the Funds' transfer agent, dividend disbursing agent and regis-
trar. In its capacity as trans-

6
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fer agent, dividend disbursing agent and registrar, PFPC performs bookkeeping,
data processing and administrative services incidental to the maintenance of
shareholder accounts. PNC Bank, 200 Stevens Drive, Lester, Pennsylvania 19113,
serves as custodian for the Funds' portfolio securities and cash.

PORTFOLIO TRANSACTIONS

Purchases and sales of fixed income securities on behalf of a Fund are gener-
ally placed by the Manager with primary market makers for these securities on
a net basis, without any brokerage commission being paid by the Fund. Such
trading does, however, involve transaction costs. Transactions with dealers
serving as primary market makers reflect the spread between the bid and asked
prices. Purchases of underwritten issues may be made which will include an un-
derwriting fee paid to the underwriter. Portfolio transactions in debt securi-
ties may also be placed on an agency basis, with a commission being charged.

PORTFOLIO TURNOVER

With respect to Weiss Intermediate Treasury Fund and Weiss Treasury Bond Fund
it is anticipated that each Fund's annual portfolio turnover rate will not ex-
ceed 100% for its initial fiscal year, although market conditions may warrant
a higher rate. A higher rate will result in higher brokerage costs to such
Funds and may result in the realization of net short-term capital gains which
would be taxable to shareholders as ordinary income when distributed.

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DIVIDENDS AND DISTRIBUTIONS
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The Funds intend to distribute substantially all of their respective invest-
ment income and any net realized capital gains. Net investment income for each
Fund consists of all interest income accrued on the Fund's assets, less all
actual and accrued expenses. Interest income included in the daily computation
of net investment income is comprised of original issue discount earned on
discount paper accrued to the date of maturity as well as accrued interest.
Each Fund's expenses, including the management fee payable to the Manager, are
accrued each day.

Distributions by a Fund are reinvested in the Fund or paid in cash at the
election of the shareholder. If no election is made, all distributions will be
reinvested in additional Fund shares. Dividends are declared daily. Weiss
Treasury Only Money Market Fund intends to distribute dividends on the last
business day of each month. Weiss Intermediate Treasury Fund and Weiss Trea-
sury Bond Fund intend to distribute taxable income quarterly, and distribute
net capital gains realized during each fiscal year annually before each Fund's
fiscal year end on December 31. Each Fund may make an additional distribution
of income and gains if necessary to satisfy a calendar year excise tax distri-
bution requirement.

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TAXES
- -------------------------------------------------------------------------------

Each Fund intends to qualify annually and elect to be treated as a regulated
investment company under the Internal Revenue Code of 1986, as amended (the
"Code"). To qualify, a Fund must meet certain income, distribution and diver-
sification requirements. In any year in which a Fund qualifies as a regulated
investment company and timely distributes all of its taxable income, the Fund
generally will not pay any U.S. federal income or excise tax.

Dividends paid out of a Fund's investment company taxable income (including
dividends, interest and net short-term capital gains) will be taxable to a
U.S. shareholder as ordinary income. Because no portion of a Fund's income is
expected to consist of divi-

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dends paid by U.S. corporations, no portion of the dividends paid by a Fund is
expected to be eligible for the corporate dividends-received deduction. Dis-
tributions of net capital gains (the excess of net long-term capital gains
over net short-term capital losses), if any, designated as capital gain divi-
dends are taxable as long-term capital gains, regardless of how long the
shareholder has held the Fund's shares. Dividends are taxable to shareholders
in the same manner whether received in cash or reinvested in additional Fund
shares.

A distribution will be treated as paid on December 31 of the current calendar
year if it is declared by a Fund in October, November or December with a rec-
ord date in such a month and paid by the Fund during January of the following
calendar year. Such distributions will be taxable to shareholders in the cal-
endar year in which the distributions are declared, rather than the calendar
year in which the distributions are received.

Each year each Fund will notify shareholders of the tax status of dividends
and distributions.

Investments in zero coupon securities will result in income to a Fund each
year equal to a portion of the excess of the face value of the securities over
their issue price, even though the Fund receives no cash interest payments
from the securities.

Upon the sale or other disposition of shares of a Fund, a shareholder may re-
alize a capital gain or loss which will be long-term or short-term, generally
depending upon the shareholder's holding period for the shares.

Each Fund may be required to withhold U.S. federal income tax at the rate of
31% of all taxable distributions payable to shareholders who fail to provide
the Fund with their correct taxpayer identification number or to make required
certifications, or who have been notified by the IRS that they are subject to
backup withholding. Backup withholding is not an additional tax. Any amounts
withheld may be credited against the shareholder's U.S. federal income tax li-
ability.

Further information relating to federal tax consequences is contained in the
Statement of Additional Information.

The foregoing discussion of federal tax consequences is intended for general
information only. Distributions of a Fund which are derived from interest on
U.S. Treasury securities may be exempt from state and local taxes in certain
states. Shareholders should consult their own tax advisors regarding the par-
ticular tax consequences of an investment in a Fund.

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HOW TO INVEST IN THE FUNDS
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BUYING SHARES

Share purchases are executed at the net asset value next calculated after a
purchase order is received by the Funds' transfer agent in good order as de-
scribed below under "Opening an Account" and "Adding to Your Investment." Pur-
chase and redemption requests received following the close of regular trading
on the Exchange will be executed the following business day. Purchases are
made in full and fractional shares.

Fund shares may be purchased without a sales charge if you purchase them
through the Fund's Distributor. Broker-dealers other than the Distributor may
assess transaction charges in connection with purchases of Fund shares.

Shares begin to earn dividends as of the first business day following the day
of your purchase. Purchases by check are executed on the day the check is re-
ceived in good order by the Transfer Agent and begin earning income on the
following business day.

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The Trust reserves the right to reject any purchase order or to waive the min-
imum investment requirement. Payment for orders which are not received or ac-
cepted will be returned after prompt notice. The issuance of shares is re-
corded in the shareholder records of the Funds, and share certificates will
not be issued.

Please see "Transaction Information" later in this prospectus for additional
information on buying, redeeming and exchanging Fund shares.

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OPENING AN ACCOUNT
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MINIMUM INVESTMENT

The minimum initial investment in a Fund is $1,000.

- --BY MAIL

Complete an account application and mail it along with a check payable to the
Fund in which you are investing to:

Weiss Treasury Fund
P.O. Box 8969
Wilmington, DE 19899-8969

- --IN PERSON

Complete an account application and deliver it along with a check payable to
the Fund in which you are investing, to the Funds' address indicated on the
cover page of this Prospectus.

- --BY WIRE

Ask your bank to send immediately available funds by wire to:
PNC Bank N.A.
Philadelphia, PA 19103
ABA No. 031000053
DDA Account # 86-1030-3574
Further Credit to: (Shareholder Name and
Account Number)

The wire should include your name, address and taxpayer identification number
and the name of the Fund in which you are investing. An account application
indicating the name in which the purchase is to be made must be completed and
mailed by you to the address under "Opening an Account--By Mail" above via
overnight delivery or sent by facsimile transmission. Purchase money will be
returned promptly in the event an account application is not received timely.
Please call the Funds' transfer agent at (800) 430-9617 for additional infor-
mation prior to making a purchase by wire and consult your bank regarding bank
wire or other charges.

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ADDING TO YOUR INVESTMENT
- -------------------------------------------------------------------------------

MINIMUM INVESTMENT

The minimum amount required to make subsequent investments is $100.

- --BY MAIL

Make a check payable to the Fund in which you are investing and mail to the
address shown above in "Opening an Account--By Mail". Please be sure to in-
clude your account number on the check or, if you prefer, use the tear off
form attached to your regular Fund account statement.

- --IN PERSON

Make a check payable to the Fund in which you are investing and deliver it to
the Funds' address indicated on the cover page of this Prospectus. Please be
sure to include your account number on the check or, if you prefer, use the
tear off form attached to your regular Fund account statement.

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- --BY WIRE

Ask your bank to send immediately available funds by wire to:
PNC Bank N.A.
Philadelphia PA 19103
ABA No. 031000053
DDA Account # 86-1030-3574
Further Credit to: (Shareholder Name and Account Number)

The wire should include your name and account number. Please call the Funds'
transfer agent at (800) 430-9617 regarding purchases by wire and consult your
bank regarding bank wire or other charges.

- --AUTOMATIC INVESTMENT PLAN

Please call (800) 430-9617 for more information and to request an election
form. See "Shareholder Services--Automatic Investment Plan."

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REDEEMING OR EXCHANGING FUND SHARES
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REDEEMING SHARES

The Funds mail redemption proceeds within three business days following the
receipt of a redemption request in proper form as described below, except in
the case of shares recently purchased by check. The Funds may delay payment of
redemption proceeds for shares purchased by check until the check clears,
which may take up to 15 days from the purchase date. Once the purchase check
has cleared, redemption proceeds will be sent within three business days.

Redemptions in the amount of $50,000 or more require a signature guarantee.
Please refer to "Signature Guarantees" later in this prospectus for more in-
formation.

The redemption requirements for corporations, other organizations, trusts, fi-
duciaries, agents, institutional investors and retirement plans may be differ-
ent from those for regular accounts. Please call (800) 430-9617 for more in-
formation.

- --BY TELEPHONE

Call (800) 430-9617 and speak with a Weiss Treasury Fund service representa-
tive anytime between 8:30 a.m. and 5:00 p.m. Transactions by telephone cannot
be in an amount in excess of $50,000 and must be sent to the shareholder's ad-
dress of record. See "Transaction Information--Telephone Transactions" below.

- --BY MAIL

Send a letter of instruction signed by each owner on the account (sign exactly
as each name appears on the account) to the address shown above in "Opening an
Account--By Mail". Please be sure to include your account number in your re-
quest.

- --IN PERSON

Prepare and send a letter of instruction in the same manner and to the same
address as described under "Redeeming Shares--By Mail".

- --BY WIRE

If you have selected wire redemption privileges on your account application,
you may redeem your shares by wire. Send a letter of instruction to the Funds
in the same manner as described under "Redeeming Shares--By Mail" or you may
call (800) 430-9617. Redemptions by wire must be in the amount of at least
$1,000.

- --AUTOMATIC WITHDRAWAL PLAN

Call (800) 430-9617 for more information and to request an election form. See
"Shareholder Services--Automatic Withdrawal Plan."

10
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- -------------------------------------------------------------------------------
EXCHANGING SHARES
- -------------------------------------------------------------------------------

The exchange requirements for corporations, other organizations, trusts, fidu-
ciaries, agents, institutional investors and retirement plans may be different
from those for regular accounts. Please call 1-800-430-9617 for more informa-
tion.

This exchange privilege is available only in states where a Fund's shares may
be legally sold.

MINIMUM INVESTMENT

A minimum initial investment must be made to establish an account into which
exchange proceeds may be invested. If you are opening an account in a differ-
ent Fund by exchange, the shares being exchanged must be at least equal in
value to the minimum investment requirement for the Fund into which exchange
proceeds are being invested.

- --BY TELEPHONE

Call (800) 430-9617 and speak with a Weiss Treasury Fund service representa-
tive anytime between 8:30 a.m. and 5:00 p.m. Transactions by telephone cannot
be in an amount in excess of $50,000. See "Transaction Information--Telephone
Transactions" below.

- --BY MAIL OR FAX

Send a letter of instruction signed by each owner on the account (sign exactly
as each name appears on the account) to the address shown above in "Opening an
Account--By Mail" or, if by fax, call (800)430-9617 for additional informa-
tion. Please be sure to include in your instructions:

--the dollar amount or number of shares you wish to exchange;
--your account number;
--the name of the Fund you are exchanging from;
--the name of the Fund you are exchanging into; and
--a daytime telephone number at which you can be reached.

- -------------------------------------------------------------------------------
TRANSACTION INFORMATION
- -------------------------------------------------------------------------------

NET ASSET VALUE

Each of the Funds values its shares on each day the New York Stock Exchange
(the "Exchange") is open for trading as of the regular close of trading of the
Exchange (normally 4:00 p.m. New York time). On those days when the Funds'
Custodian or the New York Stock Exchange close early as a result of such day
being a partial holiday or otherwise, the Funds reserve the right to advance
on that day the time by which purchase and redemption requests must be re-
ceived.

The Funds' Administrator determines net asset value per share by adding the
value of the Fund's investments, cash and other assets, subtracting liabili-
ties attributable to the Fund and then dividing the result by the number of
shares outstanding. The assets of the Weiss Treasury Only Money Market Fund
are valued at amortized cost. The assets of the Weiss Intermediate Treasury
Fund and Weiss Treasury Bond Fund are valued at market value or if market
value cannot be readily obtained, at fair value as determined by the Board of
Trustees. Debt securities held by the Funds that have maturities of less than
sixty days are valued at amortized cost.

PURCHASES BY CHECK

The minimum dollar amount of shares of the Weiss Treasury Only Money Market
Fund that may be pur-

11
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chased by check is $1,000. With respect to all of the Funds, if you purchase
shares with a check that does not clear, your purchase order will be cancelled
and you will be liable for any losses or fees a Fund or the Transfer Agent has
incurred. Checks must be drawn on a U.S. bank.

TELEPHONE TRANSACTIONS

Shareholders who elect to use the Telephone Exchange Privilege must first com-
plete the Telephone Exchange authorization portion of the Account Application
or complete a separate authorization form available by calling (800) 430-9617.
The Telephone Exchange Privilege allows a shareholder to effect exchanges from
one Fund into an identically registered account in one of the other Funds by
calling (800) 430-9617. Neither the Fund nor the Transfer Agent will be liable
for following instructions communicated by telephone reasonably believed to be
genuine and a loss to the shareholder may result due to an unauthorized trans-
action. The Fund and the Transfer Agent will employ reasonable procedures
(which may include one or more of the following: recording all telephone calls
requesting telephone exchanges, verifying authorization and requiring some
form of personal identification prior to acting upon instructions, and sending
a statement each time a telephone exchange is made) to confirm that instruc-
tions communicated by telephone are genuine. The Fund and the Transfer Agent
may be liable for any losses due to unauthorized or fraudulent instructions
only if such reasonable procedures are not followed. Of course, shareholders
are not obligated in any way to execute a Telephone Exchange Privilege form
and may choose to make an exchange in writing. During periods of drastic eco-
nomic or market changes, it is possible that the Telephone Exchange Privilege
may be difficult to implement. In this event, shareholders should follow the
other exchange procedures discussed under "Exchanging Shares," including the
procedures for processing exchanges through securities dealers.

SIGNATURE GUARANTEES

Certain types of redemption requests must include a signature guarantee for
each name in which the account is registered. Signature guarantees must accom-
pany redemption requests for: (i) an amount in excess of $50,000 per day; (ii)
any amount, if the redemption proceeds are to be sent elsewhere than the ad-
dress of record on the Fund's books; or (iii) an amount of $50,000 or less if
the address of record has been changed on the Fund's books for less than 60
days, although the Transfer Agent reserves the right to require signature
guarantees on all redemptions. Signature guarantees can be obtained from a
bank, trust company, credit union, savings association, broker-dealer or other
member of a national securities exchange, or other eligible guarantor institu-
tion. Signature guarantees by notaries public are not acceptable. Guarantees
must be signed by an authorized person at one of these institutions and be ac-
companied by the words "Signature Guarantee."

TAX IDENTIFICATION NUMBER

When you complete your account application, please be sure to certify that
your Social Security or tax identification number is correct and that you are
not subject to 31% backup withholding for failing to report income to the IRS.
Federal tax law requires the Funds to withhold 31% of taxable dividends, capi-
tal gains distributions and redemption proceeds from most accounts without a
certified Social Security or tax identification number and certain other cer-
tified information or upon notification from the IRS or a broker that with-
holding is required. The Funds reserve the right to reject account applica-
tions without a certified Social Security or tax identification num-

12
<PAGE>

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ber. The Funds also reserve the right to redeem shares from accounts without
such information upon 30 days' notice. Shareholders may avoid redemption by
providing the Funds with a tax identification number during the notice period.

SUBMINIMUM ACCOUNTS

The Funds reserve the right to involuntarily redeem an account if, after 30
days' written notice, the account's net asset value falls and remains below a
$500 minimum due to share redemptions and not market fluctuations.

SUSPENSION OF TRADING

Purchase and redemption orders may be suspended on days when the Exchange is
closed, closes early as a result of such day being a partial holiday or other-
wise, when trading is restricted or otherwise as permitted by the SEC.

REDEMPTIONS IN KIND

In unusual circumstances, the Funds may make payment in readily marketable
portfolio securities at their market value equal to the redemption price.

SHORT-TERM TRADING

The Funds and the Transfer Agent may restrict purchase transactions (including
exchanges) when a pattern of frequent purchases and redemptions in response to
short-term fluctuations in a Fund's share price appears evident.

- -------------------------------------------------------------------------------
SHAREHOLDER SERVICES
- -------------------------------------------------------------------------------

CHECKWRITING PRIVILEGES

You may elect to redeem shares by writing checks against your account balance
in the Weiss Treasury Only Money Market Fund for at least $250 on your account
application. Your fund investments will continue to earn dividends until your
purchase check is presented to the Fund for payment. Checks will be returned
by the Fund's transfer agent if there are insufficient shares to meet the
withdrawal amount. You should not attempt to close an account by check because
the exact balance at the time the check clears will not be known when the
check is written. For additional information call (800) 430-9617.

AUTOMATIC INVESTMENT PLAN

You may elect to have money automatically transferred from your bank account
into your Fund account(s) at regular intervals of your choice. Your bank ac-
count must be a checking, NOW or bank money market account maintained at a do-
mestic financial institution that is an Automated Clearinghouse Member. Subse-
quent to making the required minimum initial investment of $1,000, a minimum
investment of $50 per transaction is required for participation in the Auto-
matic Investment Plan. Please call (800) 430-9617 for additional information.

AUTOMATIC WITHDRAWAL PLAN

You may elect to have money automatically withdrawn from your Fund account on
a monthly, quarterly, semi-annual or annual basis in the amount of $100 or
more. The automatic withdrawal will be made on or about the 25th day of each
month. Please call (800) 430-9617 for additional information.

DIVIDEND REINVESTMENT PLAN

Dividends will be automatically reinvested in additional fund shares unless
otherwise indicated on the account application. Please call (800) 430-9617 for
additional information.

13
<PAGE>

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CROSS REINVESTMENT PRIVILEGE

You may want to have your dividends received from a Fund automatically in-
vested in shares of any other Fund in the Weiss family of funds. Investments
will be made at a price equal to the net asset value of the acquired shares
next determined after receipt of the distribution proceeds by the Transfer
Agent. In order to qualify for the Cross Reinvestment Privilege, the value of
your account in the acquired fund must equal or exceed the acquired fund's
minimum initial investment requirement. There are no subsequent investment re-
quirements for amounts to which dividends are directed nor are service fees
currently charged for effecting these transactions. The election to cross-re-
invest dividends will not affect the tax treatment of such dividends, which
will be treated as received by you and then used to purchase shares of the ac-
quired fund. Please call (800)430-9617 for additional information.

INDIVIDUAL RETIREMENT ACCOUNTS ("IRAS")

The Funds offer Individual Retirement Account ("IRA") plans, which allow a
maximum annual contribution of $2,000 per person for anyone with earned in-
come. PNC Bank, which serves as custodian or trustee under each Fund's IRA
plan, charges certain nominal fees for the annual maintenance of such ac-
counts. Please call (800) 430-9617 for additional information.

- -------------------------------------------------------------------------------
PERFORMANCE INFORMATION
- -------------------------------------------------------------------------------

All performance figures are historical, show the performance of a hypothetical
investment and are not intended to indicate future performance.

Each Fund may quote its performance in advertisements or shareholder communi-
cations, including reports, newsletters and sales literature. Total return for
each Fund may be calculated on an average total return basis or an aggregate
total return basis. Average annual total return reflects the average annual
percentage change in value of an investment over the measuring period. Average
total return reflects the total percentage change in value of an investment
over the measuring period. Both measures assume the reinvestment of dividends
and distributions. Yield refers to income generated by an
investment in a Fund over a specified 30-day period, for the Weiss Treasury
Bond Fund and Weiss Intermediate Treasury Fund, and specified 7-day period for
the Weiss Treasury Only Money Market Fund. Yield is expressed as an annualized
percentage. Effective yield is expressed similarly but, when annualized, the
income earned by an investment in a Fund is assumed to be reinvested and will
reflect the effects of compounding.

14
<PAGE>

WEISS TREASURY FUND

4176 Burns Road
Palm Beach Gardens, FL 33410
(800) 289-8100

Statement of Additional Information
January 17, 1996

MONEY MARKET FUND
Weiss Treasury Only Money Market Fund

FIXED-INCOME FUNDS
Weiss Intermediate Treasury Fund
Weiss Treasury Bond Fund

This Statement of Additional Information pertains to the funds listed above,
each of which is a separate series of Weiss Treasury Fund, a Massachusetts
business trust (the "Trust"). Each of these series (individually, a "Fund" and
collectively, the "Funds") represents shares of beneficial interest in a
separate portfolio of securities and other assets with its own objective and
policies. Each Fund is managed separately by Weiss Money Management, Inc. (the
"Manager").

This Statement of Additional Information is not a Prospectus and should be read
in conjunction with the combined Prospectus for the Funds dated January 17,
1996, copies of which may be obtained from the Trust without charge by writing
to the above address or by calling (800) 289-8100.
<PAGE>

TABLE OF CONTENTS

<S> <C>
INVESTMENT OBJECTIVES, RESTRICTIONS AND TECHNIQUES............ 1
INVESTMENT OBJECTIVES.................................... 1
INVESTMENTS.............................................. 1
INVESTMENT RESTRICTIONS.................................. 4

TRUSTEES AND OFFICERS......................................... 8

MANAGEMENT COMPENSATION....................................... 9

INVESTMENT ADVISORY AND OTHER SERVICES........................ 10
INVESTMENT MANAGER....................................... 10
DISTRIBUTOR.............................................. 10
ADMINISTRATOR............................................ 10
TRANSFER AGENT, DIVIDEND DISBURSING AGENT AND CUSTODIAN.. 11

PERFORMANCE INFORMATION....................................... 11

BUYING SHARES................................................. 14

REDEMPTIONS................................................... 14

DIVIDENDS AND DISTRIBUTIONS................................... 15

TAXES......................................................... 15

BROKERAGE ALLOCATION.......................................... 17

PORTFOLIO TURNOVER............................................ 18

NET ASSET VALUE............................................... 19

FINANCIAL STATEMENTS.......................................... 19

INDEPENDENT ACCOUNTANTS....................................... 19

ADDITIONAL INFORMATION........................................ 20
</TABLE>

ii
<PAGE>

INVESTMENT OBJECTIVES, RESTRICTIONS AND TECHNIQUES

Each Fund's investment objective is discussed in the Prospectus and summarized
below. There is no assurance that the Funds will achieve their respective
objectives. The investment objectives of the Funds are not fundamental and may
be changed by the Trustees without shareholder approval. Unless otherwise
stated, the Funds' policies are not fundamental.

INVESTMENT OBJECTIVES

WEISS TREASURY ONLY MONEY MARKET FUND

The investment objective of the Weiss Treasury Only Money Market Fund is to seek
maximum current income consistent with preservation of capital. The Fund pursues
its objective by investing exclusively in U.S. Treasury securities and
repurchase agreements secured by such obligations. The Fund seeks to maintain a
constant net asset value of $1.00 per share and declares dividends daily. Under
certain circumstances the Fund may not be able to maintain a stable net asset
value.

WEISS INTERMEDIATE TREASURY FUND,
WEISS TREASURY BOND FUND

The Weiss Intermediate Treasury Fund and the Weiss Treasury Bond Fund offer to
investors two alternatives for participating in the fixed income securities
market. The investment objective of each Fund is to seek a high level of income
consistent with preservation of capital. Each Fund pursues its objective by
investing exclusively in U.S. Treasury securities, including repurchase
agreements collateralized by such obligations and other investment companies
that invest primarily in U.S. Treasury securities or repurchase agreements.
Under normal circumstances, the Weiss Intermediate Treasury Fund's dollar-
weighted average portfolio maturity will be between three and ten years. There
is no maturity limitation on the individual portfolio securities purchased for
the Weiss Treasury Bond Fund, and the dollar-weighted average maturity of the
Fund will vary with market conditions.

INVESTMENTS

U.S. TREASURY SECURITIES

The Funds invest primarily in direct obligations of the U.S. Treasury (e.g.,
Treasury bills, notes, and bonds). When such securities are held to maturity,
the payment of principal and interest is unconditionally guaranteed by the U.S.
Government, and therefore they are of the highest possible credit quality. U.S.
Treasury securities that are not held to maturity are subject to variations in
market value caused by fluctuations in interest rates.

In general, investing in debt securities involves both interest rate and credit
risk. As a rule, the value of debt instruments rises and falls inversely with
interest rates. As interest rates decline, the value of debt securities
generally increases. Conversely, rising interest rates tend to cause the value
of debt securities to decrease. Debt securities with longer maturities generally
are more volatile than those with shorter maturities.

1
<PAGE>

REPURCHASE AGREEMENTS

The Funds may enter into repurchase agreements with selected brokers-dealers,
banks or other financial institutions. A repurchase agreement is an arrangement
under which the purchaser (i.e., a Fund) purchases a U.S. Government or other
high quality short-term debt obligation (an "Obligation") and the seller agrees
at the time of sale to repurchase the Obligation at a specified time and price.

Custody of the Obligation will be maintained by the Funds' custodian. The
repurchase price may be higher than the purchase price, the difference being
income to the Funds, or the purchase and repurchase prices may be the same, with
interest at a stated rate due to the Funds together with the repurchase price on
repurchase. In either case, the income to a Fund is unrelated to the interest
rate on the Obligation subject to the repurchase agreement.

Repurchase agreements pose certain risks for all entities, including the Funds,
that utilize them. Such risks are not unique to the Funds but are inherent in
repurchase agreements. Each Fund seeks to minimize such risks by, among others,
the means indicated below, but because of the inherent legal uncertainties
involved in repurchase agreements, such risks cannot be eliminated.

For purposes of Investment Company Act of 1940, as amended (the "1940 Act"), a
repurchase agreement is deemed to be a loan from Fund to the seller of the
Obligation. It is not clear whether for other purposes a court would consider
the Obligation purchased by a Fund subject to a repurchase agreement as being
owned by the Fund or as being collateral for a loan by the Fund to the seller.

If in the event of bankruptcy or insolvency proceedings against the seller of
the Obligation, a court holds that a Fund does not have a perfected security
interest in the Obligation, the Fund may be required to return the Obligation to
the seller's estate and be treated as an unsecured creditor of the seller. As an
unsecured creditor, the Fund would be at risk of losing some or all of the
principal and income involved in the transaction. To minimize this risk, the
Fund utilizes custodians and subcustodians that the Manager believes follow
customary securities industry practice with respect to repurchase agreements,
and the Manager analyzes the creditworthiness of the obligor, in this case the
seller of the Obligation. But because of the legal uncertainties, this risk,
like others associated with repurchase agreements, cannot be eliminated.

Also, in the event of commencement of bankruptcy or insolvency proceedings with
respect to the seller of the Obligation before repurchase of the Obligation
under a repurchase agreement, a Fund may encounter delay and incur costs before
being able to sell the security. Such a delay may involve loss of interest or a
decline in price of the Obligation.

Apart from risks associated with bankruptcy or insolvency proceedings, there is
also the risk that the seller may fail to repurchase the security. However, if
the market value of the Obligation subject to the repurchase agreement becomes
less than the repurchase price (including accrued interest), the Funds will
direct the seller of the Obligation to deliver additional securities so that the
market value of all securities subject to the repurchase agreement equals or
exceeds the repurchase price.

Certain repurchase agreements which provide for settlement in more than seven
days can be liquidated before the nominal fixed term on seven days' or less
notice. Such repurchase agreements will be regarded as illiquid instruments.
Each Fund currently intends to limit its investments in repurchase agreements to
those with maturities of less than seven days.

2
<PAGE>

The Fund may also enter into repurchase agreements with any party deemed
creditworthy by the Manager, including broker-dealers, if the transaction is
entered into for investment purposes and the counterparty's creditworthiness is
at least equal to that of issuers of securities which the Fund may purchase.

ZERO COUPON SECURITIES. Each Fund may invest up to 10% of its assets in zero
coupon securities. Zero coupon bonds are issued and traded at a discount from
their face value. They do not entitle the holder to any periodic payment of
interest prior to maturity.

Current federal income tax law requires holders of zero coupon securities to
report the portion of any original issue discount on such securities that
accrues during a given year as interest income, even though the holders receive
no cash payments of interest during the year. In order to qualify as a
"regulated investment company" under the Internal Revenue Code of 1986, as
amended (the "Code"), and the regulations thereunder, a Fund must distribute its
investment company taxable income, including any original issue discount accrued
on zero coupon bonds. Because a Fund will not receive cash payments on a current
basis in respect of any accrued original issue discount on these bonds, in some
years that Fund may have to distribute cash obtained from other sources in order
to satisfy the distribution requirements under the Code. A Fund might obtain
such cash from selling other portfolio holdings which might cause that Fund to
incur capital gains or losses on the sale. Additionally, these actions are
likely to reduce the assets to which Fund expenses could be allocated and to
reduce the rate of return for that Fund. In some circumstances, such sales might
be necessary in order to satisfy cash distribution requirements even though
investment considerations might otherwise make it undesirable for a Fund to sell
the securities at the time.

Generally, the market prices of zero coupon securities are more volatile than
the prices of securities that pay interest periodically and in cash and are
likely to respond to changes in interest rates to a greater degree than other
types of debt securities having similar maturities and credit quality.

OTHER INVESTMENT COMPANIES. The Weiss Intermediate Treasury Fund and Weiss
Treasury Bond Fund (and the Weiss Treasury Only Money Market Fund for temporary
defensive or emergency purposes) may each invest in the securities of other
mutual funds investing primarily in U.S. Treasury securities and repurchase
agreements subject to applicable securities regulations. When a Fund invests in
another mutual fund, it pays a pro rata portion of the advisory fees and other
expenses of that fund as a shareholder of that fund. These expenses are in
addition to the advisory and other expenses a Fund pays in connection with its
own operations.

WHEN-ISSUED SECURITIES. When a Fund purchases new issues of securities on a
when-issued basis, the Fund's custodian will establish a segregated account for
the Fund consisting of cash, U.S. Treasury securities or other high-grade debt
securities equal to the amount of the commitment. If the value of securities in
the account should decline, additional cash or securities will be placed in the
account so that the market value of the account will equal the amount of such
commitments by the Fund on a daily basis.

Securities purchased on a when-issued basis and the securities held in a Fund's
portfolio are subject to changes in market value based upon various factors
including changes in the level of market interest rates. Generally, the value of
such securities will fluctuate inversely to changes in interest rates (i.e.,
they will appreciate in value when market interest rates decline and decrease in
value when market interest rates rise). For this reason, placing securities
rather than cash in the segregated account may have a leveraging effect on the
Fund's net assets. In other words, to the extent that the Fund remains
substantially fully invested in securities at the same time that it has
committed to purchase securities on a when-issued basis, there will be greater
fluctuations in its net assets than if it had set aside cash to satisfy its
purchase commitment. Upon the settlement date of the when-issued securities, the
Fund ordinarily will meet its obligation to purchase the securities from
available cash flow, use of the cash (or liquidation of securities) held in the
segregated account or sale of other securities. Although it would not normally
expect to do so,

3
<PAGE>

the Fund also may meet its obligation from the sale of the when-issued
securities themselves (which may have a current market value greater or less
than the Fund's payment obligation). The sale of securities to meet such
obligations carries with it a greater potential for the realization of capital
gains.

INVESTMENT RESTRICTIONS

As indicated in the Prospectus, the Funds are subject to certain fundamental
policies and restrictions that may not be changed without shareholder approval.
Shareholder approval means approval by the lesser of (i) more than 50% of the
outstanding voting securities of the Trust (or a particular Fund if a matter
affects just that Fund), or (ii) 67% or more of the voting securities present at
a meeting if the holders of more than 50% of the outstanding voting securities
of the Trust (or a particular Fund) are present or represented by proxy. As a
matter of fundamental policy, a Fund may not:

(1) with respect to 75% of its total assets taken at market value purchase
more than 10% of the voting securities of any one issuer; or invest
more than 5% of the value of its total assets in the securities of any
one issuer, except obligations issued or guaranteed by the U.S.
Government and securities of other investment companies;

(2) borrow money, except as a temporary measure for extraordinary or
emergency purposes, provided that the Fund maintains asset coverage of
300% for all borrowings;

(3) purchase any securities which would cause 25% or more of the market
value of its total assets at the time of such purchase to be invested
in the securities of one or more issuers having their principal
business activities in the same industry, provided that there is no
limitation with respect to investments in obligations issued or
guaranteed by the U.S. Government. (For purposes of this restriction,
telephone companies are considered to be in a separate industry from
gas and electric public utilities, and wholly-owned finance companies
are considered to be in the industry of their parents if their
activities are primarily related to financing the activities of their
parents.)

(4) purchase or sell real estate (except that the Fund may invest in (i)
securities of companies which deal in real estate or mortgages, and
(ii) securities secured by real estate or interest therein, and that
the Fund reserves freedom of action to hold and to sell real estate
acquired as a result of the Fund's ownership of securities); or
purchase or sell physical commodities or contracts relating to
physical commodities;

(5) act as an underwriter of securities issued by others, except to the
extent that it may be deemed an underwriter in connection with the
disposition of portfolio securities of the Fund;

(6) make loans to other persons, except (a) loans of portfolio securities,
and (b) to the extent the entry into repurchase agreements and the
purchase of debt securities in accordance with its investment
objective and investment policies may be deemed to be loans; and

(7) issue senior securities, except as appropriate to evidence
indebtedness which the Fund is permitted to incur and except for
shares of the separate classes or series of the Trust.

As a matter of nonfundamental policy, a Fund may not:

(a) purchase or retain securities of any open-end investment company or
securities of closed-end investment companies except by purchase in
the open market where no commission

4
<PAGE>

or profit to a sponsor or dealer results from such purchases, or
except when such purchase, though not made in the open market, is part
of a plan of merger, consolidation, reorganization or acquisition of
assets; in any event, the Fund may not purchase more than 3% of the
outstanding voting securities of another investment company, may not
invest more than 5% of its assets in another investment company, and
may not invest more than 10% of its assets in other investment
companies;

(b) pledge, mortgage or hypothecate its assets in excess, together with
permitted borrowings, of 1/3 of its total assets;

(c) purchase or retain securities of an issuer any of whose officers,
directors, trustees or security holders is an officer, director or
trustee of the Fund or a member, officer, director or trustee of the
investment adviser of the Fund if one or more of such individuals owns
beneficially more than one-half of one percent (.5%) of the
outstanding shares or securities or both (taken at market value) of
such issuer and such individuals owning more than one-half of one
percent (.5%) of such shares or securities together own beneficially
more than 5% of such shares or securities or both;

(d) purchase securities on margin, make short sales or maintain a short
position, unless, by virtue of its ownership of other securities, it
has the right to obtain securities equivalent in kind and amount to
the securities sold and, if the right is conditional, the sale is made
upon the same conditions, except in connection with arbitrage
transactions and except that the Fund may obtain such short-term
credits as may be necessary for the clearance of purchase and sales of
securities;

(e) invest more than 10% of its net assets in securities which are not
readily marketable, the disposition of which is restricted under
federal securities laws, or in repurchase agreements not terminable
within 7 days; or invest more than 5% of its total assets in
restricted securities;

(f) with the exception of U.S. Government securities, purchase securities
of any issuer with a record of less than three years of continuous
operations, including predecessors, if such purchase would cause the
investments of the Fund in all such issuers to exceed 5% of the total
assets of the Fund taken at market value;

(g) purchase more than 10% of the voting securities of any one issuer,
except securities issued by the U.S. Government;

(h) purchase or sell any put or call options or any combination thereof;

(i) enter into futures contracts or purchase options thereon;

(j) invest in oil, gas or other mineral leases, or exploration or
development programs (although it may invest in issuers which own or
invest in such interests);

(k) borrow money (including reverse repurchase agreements), except as a
temporary measure for emergency purposes, and not in excess of 5% of
its total assets taken at market value, or borrow other than from
banks; however, in the case of reverse repurchase agreements, the Fund
may invest in such agreements with entities other than banks subject
to total asset coverage of 300% for such agreements and all
borrowings;

5
<PAGE>

(l) purchase warrants;

(m) purchase or sell real estate limited partnership interests; and

(n) lend securities, if the value of securities loaned exceeds 30% of the
value of the Fund's total assets at the time any loan is made,
provided that the loans are fully collateralized and marked to market
daily, and provided further that the entry of a Fund into repurchase
agreements and the purchase of debt instruments are not deemed to be
loans for purposes of this restriction. None of the Funds currently
intends to make loans of portfolio securities that would amount to
greater than 5% of the Fund's total assets in the coming year.

With respect to fundamental policy (2), a Fund may not purchase securities when
borrowing exceeds 5% of the Fund's total assets. In addition, so long as it
remains a restriction of the Ohio Division of Securities, the Funds will treat
securities eligible for resale under Rule 144A of the Securities Act of 1933 as
subject to the Funds' restriction on investing in restricted securities
(nonfundamental policy (e), above). With respect to nonfundamental policy (a),
above, to the extent that any of the Funds invest in securities of other
investment companies, the Trust and the Manager will ensure that there will be
no duplication of advisory fees. Further, no sales load will be paid by a Fund
in connection with such investments.

Whenever an investment objective, policy or restriction set forth in the
Prospectus or this Statement of Additional Information states a maximum
percentage of assets that may be invested in any security or other asset or
describes a policy regarding quality standards, such percentage limitation or
standard shall, unless otherwise indicated, apply to the Fund only at the time a
transaction is entered into. Accordingly, if a percentage limitation is adhered
to at the time of investment, a later increase or decrease in the percentage
which results from circumstances not involving any affirmative action by the
Fund, such as a change in market conditions or a change in the Fund's asset
level or other circumstances beyond the Fund's control, will not be considered a
violation.

ORGANIZATION OF THE FUNDS

Each of the Funds is a diversified series of Weiss Treasury Fund, an open-end
management investment company registered under the 1940 Act. The Trust was
organized on August 10, 1995 as a Massachusetts business trust. The Board of
Trustees of the Trust oversees the business affairs of the Trust and is
responsible for significant decisions relating to each Fund's investment
objective and policies. The Trustees delegate the day-to-day management of the
Funds to the officers of the Trust.

The Trust's authorized capital consists of an unlimited number of shares of
beneficial interest, $.01 par value, all of which are of one class and have
equal rights as to voting, dividends and liquidation. The Trustees have the
authority to issue two or more series of shares and to designate the relative
rights and preferences as between the different series. If more than one series
of shares were issued and a series were unable to meet its obligations, the
remaining series might have to assume the unsatisfied obligations of that
series. All shares issued and outstanding will be fully paid and non-assessable
by the Trust, and redeemable as described in this combined statement of
additional information and in the prospectus.

The assets of the Trust received for the issue or sale of the shares of each
series and all income, earnings, profits and proceeds thereof, subject only to
the rights of creditors, are specifically allocated to such series and
constitute the underlying assets of such series. The underlying assets of each
series are segregated on the books of account, and are to be charged with the
liabilities in respect to such series and with a proportionate share of the
general liabilities of the Trust. If a series were unable to meet its
obligations, the assets of all other series may in some circumstances be
available to creditors for that purpose, in which

6
<PAGE>

case the assets of such other series could be used to meet liabilities which are
not otherwise properly chargeable to them. Expenses with respect to any two or
more series are to be allocated in proportion to the asset value of the
respective series except where allocations of direct expenses can otherwise be
fairly made. The officers of the Trust, subject to the general supervision of
the Trustees, have the power to determine which liabilities are allocable to a
given series, or which are general or allocable to two or more series. In the
event of the dissolution or liquidation of the Trust or any series, the holders
of the shares of any series are entitled to receive as a class the underlying
assets of such shares available for distribution to shareholders.

Shares of the Trust entitle their holders to one vote per share; however,
separate votes are taken by each series on matters affecting an individual
series. For example, a change in investment policy for a series would be voted
upon only by shareholders of the series involved. Additionally, approval of the
investment advisory agreement is a matter to be determined separately by each
series. Approval by the shareholders of one series is effective as to that
series whether or not enough votes are received from the shareholders of the
other series to approve such agreement as to the other series.

The Trustees, in their discretion, may authorize the division of shares of a
series into different classes, permitting shares of different classes to be
distributed by different methods. Although shareholders of different classes of
a series would have an interest in the same portfolio of assets, shareholders of
different classes may bear different expenses in connection with different
methods of distribution. The Trustees have no present intention of taking the
action necessary to effect the division of shares into separate classes nor of
changing the method of distribution of shares of a Fund.

The Declaration of Trust provides that obligations of the Trust are not binding
upon the Trustees individually but only upon the property of the Trust, that the
Trustees and officers will not be liable for errors of judgment or mistakes of
fact or law, and that the Trust will indemnify its Trustees and officers against
liabilities and expenses incurred in connection with litigation in which they
may be involved because of their offices with the Trust, except if it is
determined, in the manner provided in the Declaration of trust, that they have
not acted in good faith in the reasonable belief that their actions were in the
best interests of the Trust. However, nothing in the Declaration of Trust
protects or indemnifies a Trustee or officer against any liability to which he
would otherwise be subject by reason of willful misfeasance, bad faith, gross
negligence, or reckless disregard of the duties involved in the conduct of his
office.

The Funds are not required to and do not currently intend to hold annual
shareholder meetings, although special meetings may be called for purposes such
as electing or removing Trustees, changing fundamental investment policies, or
approving certain contracts. Shareholders will be assisted in communicating
with other shareholders in connection with removing a Trustee as if Section
16(c) of the 1940 Act were applicable.

Shares of the Funds are presently offered through the use of a prospectus that
combines disclosure about each of the Funds. The use of a combined prospectus
by two or more Funds may cause one Fund to be liable to purchasers of shares of
another Fund for misstatements in the prospectus concerning the other Fund.

7
<PAGE>

TRUSTEES AND OFFICERS

The Trustees and Executive Officers of the Trust, their business addresses
and their principal occupations during the past five years are as follows:

<TABLE>
<CAPTION>
================================================================================

Position Principal Occupation(s)
Name, Address and Age with the Trust during past 5 years
================================================================================
<S> <C> <C>
John N. Breazeale(1), 48 President and Chairman President, Weiss Money
of Board of Trustees Management Inc. (April 1995 -
present).
Portfolio Manager, Mackenzie
Investment Management Inc.
(1988 - April 1995).

Neal J. Andrews, 29 Treasurer Vice President and a Director of
103 Bellevue Parkway Investment Accounting,
Wilmington, DE 19809 PFPC, Inc. (April 1992-present).
Senior Audit Supervisor, Price Waterhouse L.L.P. (1987 -
1992).

Sharon A. Parker(1), 34 Secretary Portfolio Manager, Weiss Money
Management Inc. (1990 -present).

Joseph R. Fleming, 41 Assistant Secretary Partner, Dechert Price &
57 Overlook Drive Rhoads (1990 - present)
Holliston, MA 01746

Martin D. Weiss(1), 49 Trustee Editor of "Safe Money Report";
President, Weiss Research Inc.
(1971 - present), President
Weiss Money Management Inc.
(November, 1980 - April, 1995).

Esther S. Gordon, 53 Trustee Retired. Formerly Assistant
422 Woodview Circle Manager with Southern Bell
Palm Beach Gardens, FL 33410 (1965 - 1994).
</TABLE>

8
<PAGE>

<TABLE>
<CAPTION>
<S> <C> <C>
Robert L. Lehrer, 61 Trustee President Wyndmsor Industries
P.O. Box 1679 Inc. (1957 - present). Registered
18711 Southeast Lakeside Way securities broker.
Jupiter, FL 33468-1679

Donald Wilk, 58 Trustee President Donald Wilk
6044 Petaluma Drive Corporation (1990 - present).
Boca Raton, FL 33433
</TABLE>
- ---------------------

(1) 4176 Burns Road
Palm Beach Gardens, FL 33410

As of January 15, 1996, all Trustees and officers of the Trust as a group
owned beneficially less than 1% of the shares of the each of the Funds
outstanding on such date. To the best knowledge of the Funds, no person owned
beneficially more than 5% of any of the Funds.

MANAGEMENT COMPENSATION
<TABLE>
<CAPTION>
==============================================================================================
Total
Pension or Retire- Compensation
Aggregate ment benefits Estimated Annual from Trust and
Compensation Accrued as Part Benefits Upon Fund Complex
Name (Position) from Trust of Trust Expenses Retirement Paid to Trustee
==============================================================================================
<S> <C> <C> <C> <C>
John N. Breazeale None None None None
(President and Trustee)

Neal J. Andrews None None None None
(Treasurer)

Sharon A. Parker None None None None
(Secretary)

Joseph R. Fleming None None None None
(Assistant Secretary)

Esther S. Gordon None None None None
(Trustee)

Robert L. Lehrer None None None None
(Trustee)

Donald Wilk None None None None
(Trustee)
</TABLE>

9
<PAGE>

INVESTMENT ADVISORY AND OTHER SERVICES

INVESTMENT MANAGER

As stated in the Prospectus, the Trust, on behalf of each Fund, has entered into
Investment Advisory Agreements with the Manager, Weiss Money Management, Inc.
Under these Advisory Agreements, the Manager provides continuing investment
management for each Fund consistent with the Fund's investment objectives,
policies and restrictions and determines what securities shall be purchased for
or sold by the Fund.

The Funds have each agreed to compensate the Manager for its services by the
monthly payment of a fee at the annual rate of .50% of average net assets, with
respect to Weiss Treasury Only Money Market Fund and the Weiss Intermediate
Treasury Fund, and .70% of average net assets, with respect to Weiss Treasury
Bond Fund. For the period through April 30, 1996, the Manager has agreed to
waive that portion of its fee and reimburse other operating expenses necessary
to maintain the total Fund expenses at .50% of average net assets, for each of
the Weiss Treasury Only Money Market Fund and Weiss Intermediate Treasury Fund.
Through December 31, 1996, the Manager has agreed to waive that portion of its
fee and reimburse other operating expenses necessary to maintain total operating
expenses at .70% of average net assets for Weiss Treasury Bond Fund. In
addition, the Manager has agreed that if a Fund's total expenses in any fiscal
year (other than interest, taxes, distribution expenses, brokerage commissions
and any extraordinary expenses) exceed the permissible limits on such expenses
that apply to the Fund in any state in which its shares are currently qualified
for sale, the Manager will refund to the Fund the amount of any such excess,
except to the extent that such amount has already been reflected in reduced
payments to the Manager. The Funds believe that, currently, the most
restrictive state limitation is 2.50% of the first $30,000,000 of a Fund's
average daily net assets, plus 2.00% of the next $70,000,000 of average daily
net assets, plus 1.50% of the balance of the average daily net assets of that
Fund for a fiscal year.

The Manager is responsible for fees and expenses of Trustees, officers and
employees of the Trust who are affiliated with the Manager. Each Fund is
responsible for all of its other expenses, including fees and expenses incurred
in connection with membership in investment company organizations; brokers'
commissions; payments for portfolio pricing services to a pricing agent, if any;
legal, auditing and accounting expenses; taxes and governmental fees; transfer
agent fees; the cost of preparing share certificates or other share-related
expenses, such as expenses of issuance, sale, redemption or repurchase of shares
of beneficial interest; the expenses of and fees for registering or qualifying
securities for sale; the fees and expenses of Trustees, officers and employees
of the Trust who are not affiliated with the Manager; the cost of printing and
distributing reports and notices to shareholders; and the fees and disbursements
of custodians. Each Fund is also responsible for expenses of shareholder
meetings and expenses incurred in connection with litigation proceedings and
claims and the legal obligation it may have to indemnify its officers and
Trustees with respect thereto.

DISTRIBUTOR

Each Fund's shares are sold on a continuous basis by Weiss Funds, Inc. (the
"Distributor"), 4176 Burns Road, Palm Beach Gardens, Florida 33410, a registered
broker-dealer and wholly-owned subsidiary of the Manager.

ADMINISTRATOR

PFPC, Inc., Bellevue Park Corporate Center, 400 Bellevue Parkway, Wilmington,
Delaware 19809 ("PFPC"), performs various administrative services for each Fund.
These services include maintenance of books and records, preparation of certain
governmental filings and shareholder reports and computation of net asset values
and dividend distributions. For its administrative services, PFPC receives a
fee, payable monthly, of .1 of 1% (.10%) per annum of the average daily net
assets of each Fund, plus any out-of-pocket expenses.

10
<PAGE>

TRANSFER AGENT, DIVIDEND DISBURSING AGENT AND CUSTODIAN

PFPC serves as the Funds' transfer agent, dividend disbursing agent and
registrar. In its capacity as transfer agent, dividend disbursing agent and
registrar, PFPC performs bookkeeping, data processing and administrative
services incidental to the maintenance of shareholder accounts. For transfer
agency and shareholder services, the Funds pay the Transfer Agent a base fee
plus annual fees of $18 per open account for daily distribution funds and $12
per open account for quarterly distribution funds, payable in equal monthly
installments. The Funds also pay an annual fee of $4 to the Transfer Agent for
each account that is closed, and reimburses the Transfer Agent monthly for out-
of-pocket expenses.

PNC Bank, 200 Stevens Drive, Lester, Pennsylvania 19113, serves as custodian for
the Funds' portfolio securities and cash.

PERFORMANCE INFORMATION

From time to time, quotations of the Fund's performance may be included in
advertisements, sales literature or reports to shareholders or prospective
investors. These performance figures are calculated in the following manners:

AVERAGE ANNUAL TOTAL RETURN

Average annual total return is the average annual compound rate of return for
periods of one year, five years, and ten years, all ended on the last day of a
recent calendar quarter. Average annual total return quotations reflect changes
in the price of the Fund's shares and assume that all dividends and capital
gains distributions during the respective periods were reinvested in Fund
shares. Average annual total return is calculated by finding the average annual
compound rates of return of a hypothetical investment over such periods
according to the following formula (average annual total return is then
expressed as a percentage):

T = (ERV/P) to the power of 1 divided by n - 1
Where:

P a hypothetical initial investment of $1,000.
T average annual total return.
n number of years.
ERV ending redeemable value:
ERV is the value, at the end of the applicable period, of a
hypothetical $1,000 investment made at the beginning of the
applicable period.

CUMULATIVE TOTAL RETURN

Cumulative total return is the cumulative rate of return on a hypothetical
initial investment of $1,000 for a specified period. Cumulative total return
quotations reflect changes in the price of a Fund's shares and assume that all
dividends and capital gains distributions during the period were reinvested in
fund shares. Cumulative total return is calculated by finding the cumulative
rates of return of a hypothetical investment over such periods according to the
following formula (cumulative total return is then expressed as a percentage):

11
<PAGE>

C = (ERV/P) - 1
Where:

C Cumulative Total Return.
P a hypothetical initial investment of $1,000.
ERV ending redeemable value:
ERV is the value, at the end of the applicable period, of a
hypothetical $1,000 investment made at the beginning of the
applicable period.

TOTAL RETURN

Total Return is the rate of return on an investment for a specified period of
time calculated in the same manner as cumulative total return.

CAPITAL CHANGE

Capital change measures the return from invested capital including reinvested
capital gains distributions. Capital change does not include the reinvestment
of income dividends.

YIELD

WEISS TREASURY BOND FUND,
WEISS INTERMEDIATE TREASURY FUND

Yield for these two Funds is the net annualized yield based on a specified 30-
day (or one month) period assuming semiannual compounding of income. Yield is
calculated by dividing the net investment income per share earned during the
period by the maximum offering price per share on the last day of the period
according to the following formula:

Yield = 2[(a-b/cd + 1) to the power of 6 - 1]
Where:

a = dividends and interest earned during the period.
b = expenses accrued for the period (net of reimbursements).
c = the average daily number of shares outstanding during that
period that were entitled to receive dividends.
d = the maximum offering price per share on the last day of the
period.

Quotations of a Fund's performance are based on historical earnings, show the
performance of a hypothetical investment, and are not intended to indicate
future performance of a Fund. An investor's shares when redeemed may be worth
more or less than their original cost. Performance of a Fund will vary based on
changes in market conditions and the level of a Fund's expenses. In periods of
declining interest rates, a Fund's quoted yield will tend to be somewhat higher
than prevailing market rates, and in periods of rising interest rates, a Fund's
quoted yield will tend to be somewhat lower.

WEISS TREASURY ONLY MONEY MARKET FUND

CURRENT YIELD: Current yield is the net annualized yield based on a specified 7
calendar-days calculated at simple interest rates. Current yield is calculated
by determining the net change, exclusive of capital changes, in the value of a
hypothetical pre-existing account having a balance of one share at the beginning
of the period and dividing such change by the value of the account at the
beginning of the base period to obtain the base-period return. The base-period
return is then annualized by multiplying it by 365/7; the resultant product
equals net annualized current yield.

12
<PAGE>

EFFECTIVE YIELD: Effective yield for Weiss Treasury Only Money Market Fund is
the net annualized yield for a specified 7 calendar-days assuming a reinvestment
in Fund shares of all dividends during the period (i.e., compounding).
Effective yield is calculated by using the same base-period return used in the
calculation of current yield, except that the base-period return is compounded
by adding 1, raising the sum to a power equal to 365 divided by 7, and
subtracting 1 from the result, according to the following formula:

Effective Yield = [(Base Period Return + 1)to the power of 365 divided by 7] - 1

As described above, current yield and effective yield are based on historical
earnings, show the performance of a hypothetical investment and are not intended
to indicate future performance. Current yield and effective yield will vary
based on changes in market conditions and the level of Fund expenses.

COMPARISON OF PORTFOLIO PERFORMANCE

A comparison of the quoted non-standard performance offered for various
investments is valid only if performance is calculated in the same manner.
Since there are different methods of calculating performance, investors should
consider the effects of the methods used to calculate performance when comparing
performance of a Fund with performance quoted with respect to other investment
companies or types of investments.

In connection with communicating its performance to current or prospective
shareholders, a Fund also may compare these figures to the performance of
unmanaged indices which may assume reinvestment of dividends or interest but
generally do not reflect deductions for administrative and management costs.
Examples include, but are not limited to the Dow Jones Industrial Average, the
Consumer Price Index, Standard & Poor's 500 Composite Stock Price Index (S&P
500), the NASDAQ OTC Composite Index, the NASDAQ Industrials Index, the Russell
2000 Index, and the statistics published by the Small Business Administration.

From time to time, in advertising and marketing literature, a Fund's performance
may be compared to the performance of broad groups of mutual funds with similar
investment goals, as tracked by independent organizations such as, Investment
Company Data, Inc. ("ICD"), Lipper Analytical Services, Inc. ("Lipper"), CDA
Investment Technologies, Inc. ("CDA"), Morningstar, Inc., Value Line Mutual Fund
Survey and other independent organizations. When these organizations' tracking
results are used, a Fund will be compared to the appropriate fund category, that
is, by fund objective and portfolio holdings, or to the appropriate volatility
grouping, where volatility is a measure of a fund's risk. A Fund (except for a
money market fund) may also be compared to funds with similar volatility, as
measured statistically by independent organizations.

From time to time, in marketing and other Fund literature, Trustees and officers
of a Fund, a Fund's portfolio manager, or members of the portfolio management
team may be depicted and quoted to give prospective and current shareholders a
better sense of the outlook and approach of those who manage a Fund. In
addition, the assets that Manager has under management in various geographical
areas may be quoted in advertising and marketing materials.

Statistical and other information, as provided by the Social Security
Administration, may be used in marketing materials pertaining to retirement
planning in order to estimate future payouts of social security benefits.
Estimates may be used on demographic and economic data.

Marketing and other Fund literature may include a description of the potential
risks and rewards associated with an investment in a Fund. The description may
include a "risk/return spectrum" which compares the Fund to other Weiss funds or
broad categories of funds, such as money market, bond or equity funds, in terms
of potential risks and returns. Money market funds are designed to maintain a
constant $1.00 share price and have a fluctuating yield. Share price, yield and
total return of a bond fund

13
<PAGE>

will fluctuate. The share price and return of an equity fund also will
fluctuate. The description may also compare a Fund to bank products, such as
certificates of deposit. Unlike mutual funds, certificates of deposit are
insured up to $100,000 by the U.S. Government and offer a fixed rate of return.

Because bank products guarantee the principal value of an investment and money
market funds seek stability of principal, these investments are considered to be
less risky than investments in either bond or equity funds, which may involve
the loss of principal. However, all long-term investments, including
investments in bank products, may be subject to inflation risk, which is the
risk of erosion of the value of an investment as prices increase over a long
time period. The risk/returns associated with an investment in bond or equity
funds also will depend upon currency exchange fluctuation.

A risk/return spectrum generally will position the various investment categories
in the following order: bank products, money market funds, bond funds and
equity funds. Shorter-term bond funds generally are considered less risky and
offer the potential for less return than longer-term bond funds. The same is
true of domestic bond funds relative to international bond funds, and bond funds
that purchase higher quality securities relative to bond funds that purchase
lower quality securities. Growth and income equity funds are generally
considered to be less risky and offer the potential for less return than growth
funds. In addition, international equity funds usually are considered more
risky than domestic equity funds but generally offer the potential for greater
return.

Risk/return spectrums also may depict funds that invest in both domestic and
foreign securities or a combination of bond and equity securities.

Evaluation of Fund performance made by independent sources may also be used in
advertisements concerning a Fund, including reprints of, or selections from,
editorials or articles about a Fund.

BUYING SHARES

Share purchases are executed at the net asset value next calculated after a
purchase order is received by the Fund's transfer agent in good order as
described in the Funds' prospectus under "Opening an Account" and "Adding to
Your Investment". Purchases are made in full and fractional shares.

Fund shares may be purchased without a sales charge if you purchase them through
the Fund's Distributor. Broker-dealers other than the Distributor may assess
transaction charges in connection with purchases of Fund shares.

Shares generally begin to earn dividends as of the first business day following
the day or your purchase. Purchases by check are executed on the day the check
is received in good order by the Transfer Agent and begin earning income on the
following business day.

INDIVIDUAL RETIREMENT ACCOUNTS ("IRAS"). Shares of the Trust may be used as a
funding medium for an IRA. Eligible individuals may establish an IRA by
adopting a custodial account available from PNC Bank, which may impose a charge
for establishing and/or maintaining the account.

REDEMPTIONS

The Trust may suspend the right of redemption of shares of a Fund and may
postpone payment: (i) for any period during which the New York Stock Exchange is
closed, other than customary weekend and holiday closings, or during which
trading on the New York Stock Exchange is restricted, (ii) when the SEC
determines that a state of emergency exists which may make payment or transfer
not reasonably practicable, (iii) as the SEC may by order permit for the
protection of the Shareholders of the Trust, or (iv) at any other time when the
Trust may, under applicable laws and regulations, suspend payment on the
redemption of its shares.

14
<PAGE>

The Trust agrees to redeem shares of a Fund solely in cash up to the lesser of
$250,000 or 1% of the net asset value of a Fund during any 90-day period for any
one shareholder. The Trust reserves the right to pay other redemptions, either
total or partial, by a distribution in kind of securities (instead of cash) from
the applicable Fund's portfolio, although the Trust has no current intention to
do so. The securities distributed in such a distribution would be valued at the
same value as that assigned to them in calculating the net asset value of the
shares being redeemed. If a shareholder receives a distribution in kind, he or
she should expect to incur transaction costs when he or she converts the
securities to cash.

DIVIDENDS AND DISTRIBUTIONS

All of the Funds intend to distribute substantially all of their respective
investment income and any net realized capital gains. Net investment income for
each Fund consists of all interest income accrued on the Fund's assets, less
accrued expenses. Interest income included in the daily computation of net
investment income is comprised of original issue discount earned on discount
paper accrued to the date of maturity as well as accrued interest. Each Fund's
expenses, including the management fee payable to the Manager, are accrued each
day.

Distributions by a Fund are reinvested in the Fund or paid in cash at the
election of the shareholder. If no election is made, all distributions will be
reinvested in additional Fund shares. Dividends are declared daily. Weiss
Treasury Only Money Market Fund intends to distribute dividends on the last
business day of each month. Weiss Intermediate Treasury Fund and Weiss Treasury
Bond Fund intend to distribute taxable income quarterly, and distribute net
capital gains realized during each fiscal year annually before each Fund's
fiscal year end on December 31.

The net income of a Fund is determined as of the close of regular trading on the
New York Stock Exchange (the "Exchange"), usually 4:00 p.m. New York time on
each day the Exchange is open for trading.

TAXES

The following is a general discussion of certain tax rules thought to be
applicable with respect to a Fund. It is merely a summary and is not an
exhaustive discussion of all possible situations or of all potentially
applicable taxes. Accordingly, shareholders and prospective shareholders should
consult a competent tax advisor about the tax consequences to them of investing
in a Fund.

GENERAL. Each Fund intends to qualify annually and elect to be treated as a
regulated investment company under Subchapter M of the Code. To qualify, a Fund
must, among other things, (a) derive in each taxable year at least 90% of its
gross income from dividends, interest, payments with respect to securities
loans, gains from the sale or other disposition of stock, securities, or foreign
currencies, or other income (including but not limited to gains from options,
futures, and forward contracts) derived with respect to its business of
investing in such stock, securities or currencies; (b) derive in each taxable
year less than 30% of its gross income from the sale or other disposition of
certain assets (namely, (i) stock or securities, (ii) options, futures, and
forward contracts (other than those on foreign currencies), and (iii) foreign
currencies (including options, futures, and forward contracts on such
currencies) not directly related to the Fund's principal business of investing
in stocks or securities (or options and futures with respect to stocks and
securities)) held less than three months (the "30% Limitation"); and (c)
diversify its holdings so that, at the end of each fiscal quarter, (i) at least
50% of the market value of the Fund's assets is represented by cash, U.S.
Government securities, the securities of other regulated investment companies,
and other securities, with such other securities of any one issuer limited for
purposes of this calculation to an amount not greater than 5% of the Fund's
assets and 10% of the outstanding voting securities of such issuer, and (ii) not
more than 25% of the value of its total assets is invested in securities of any
other issuer (other than U.S. Government securities and the securities of other
regulated investment companies).

As a regulated investment company, each Fund generally will not be subject to
U.S. Federal income tax on

15
<PAGE>

its investment company taxable income (which includes, among other items,
dividends, interest and net short-term capital gains in excess of net long-term
capital losses) and net capital gains (net long-term capital gains in excess of
net short-term capital losses) that it distributes to shareholders, if at least
90% of its investment company taxable income for the taxable year is
distributed. Each Fund intends to distribute such income.

Amounts not distributed on a timely basis in accordance with a calendar year
distribution requirement are subject to a nondeductible 4% excise tax. To avoid
that tax, each Fund must distribute during each calendar year an amount equal to
(1) at least 98% of its ordinary income (not taking into account any capital
gains or losses) for the calendar year, (2) at least 98% of its capital gains in
excess of its capital losses (adjusted for certain ordinary losses) for the
twelve-month period ending on October 31 of the calendar year, and (3) all
ordinary income and capital gains for previous years that were not distributed
during such years. A distribution will be treated as paid on December 31 of the
current calendar year if it is declared by a Fund in October, November or
December of that year to shareholders of record at some date in such a month and
paid by the Fund during January of the following calendar year. Such
distributions will be taken into account by shareholders in the calendar year
the distributions are declared, rather than the calendar year in which the
distributions are received.

DISTRIBUTIONS. Distributions of investment company taxable income are taxable
to a U.S. shareholder as ordinary income, whether paid in cash or shares.
Because it is not anticipated that any portion of a Fund's gross income will
consist of dividends from domestic corporations, no portion of the dividends
paid by a Fund to its corporate shareholders is expected to qualify for the
dividends received deduction. Distributions of net capital gains, if any, which
are designated as capital gain dividends are taxable as long-term capital gains,
whether paid in cash or in shares, regardless of how long the shareholder has
held the Fund's shares, and are not eligible for the dividends received
deduction. The tax treatment of distributions from a Fund is the same whether
the dividends are received in cash or in additional shares. Shareholders
receiving distributions in the form of newly issued shares will have a cost
basis in each share received equal to the net asset value of a share of the Fund
on the reinvestment date. A distribution of an amount in excess of a Fund's
current and accumulated earnings and profits will be treated by a shareholder as
a return of capital which is applied against and reduces the shareholder's basis
in his or her shares. To the extent that the amount of any such distribution
exceeds the shareholder's basis in his or her shares, the excess will be treated
by the shareholder as gain from a sale or exchange of the shares. Shareholders
will be notified annually as to the U.S. Federal tax status of distributions and
shareholders receiving distributions in the form of newly issued shares will
receive a report as to the net asset value of the shares received.

If the net asset value of shares is reduced below a shareholder's cost as a
result of a distribution by a Fund, such distribution will be taxable even
though it represents a return of invested capital. Investors should be careful
to consider the tax implications of buying shares just prior to a distribution.
The price of shares purchased at this time may reflect the amount of the
forthcoming distribution. Those purchasing just prior to a distribution will
receive a distribution which will nevertheless be taxable to them.

DISPOSITION OF SHARES. Upon a redemption, sale or exchange of his or her
shares, a shareholder will realize a taxable gain or loss depending upon his or
her basis in the shares. Such gain or loss will be treated as capital gain or
loss if the shares are capital assets in the shareholder's hands and will be
long-term or short-term, generally, depending upon the shareholder's holding
period for the shares. Any loss realized on a redemption, sale or exchange will
be disallowed to the extent the shares disposed of are replaced (including
through reinvestment of dividends) within a period of 61 days beginning 30 days
before and ending 30 days after the shares are disposed of. In such a case, the
basis of the shares acquired will be adjusted to reflect the disallowed loss.
Any loss realized by a shareholder on the sale of Fund shares held by the
shareholder for six months or less will be treated as a long-term capital loss
to the extent of any distributions of net capital gains received or treated as
having been received by the shareholder with respect to such shares.

16
<PAGE>

DISCOUNT. Certain of the bonds purchased by the Funds may be treated as bonds
that were originally issued at a discount. Original issue discount represents
interest for Federal income tax purposes and can generally be defined as the
difference between the price at which a security was issued and its stated
redemption price at maturity. Original issue discount is treated for Federal
income tax purposes as income earned by a Fund even though the Fund doesn't
actually receive any cash, and therefore is subject to the distribution
requirements of the Code. The amount of income earned by the Fund generally is
determined on the basis of a constant yield to maturity which takes into account
the semi-annual compounding of accrued interest.

In addition, some of the bonds may be purchased by a Fund at a discount which
exceeds the original issue discount on such bonds, if any. This additional
discount represents market discount for Federal income tax purposes. The gain
realized on the disposition of any bond having market discount will be treated
as ordinary income to the extent it does not exceed the accrued market discount
on such bond (unless the Fund elects for all its debt securities acquired after
the first day of the first taxable year to which the election applies having a
fixed maturity date of more than one year from the date of issue to include
market discount in income in tax years to which it is attributable). Generally,
market discount accrues on a daily basis for each day the bond is held by the
Fund at a constant rate over the time remaining to the bond's maturity.

BACKUP WITHHOLDING. Each Fund generally will be required to report to the IRS
all distributions as well as gross proceeds from the redemption of the Fund's
shares, except in the case of certain exempt shareholders. All such
distributions and proceeds will be subject to withholding of Federal income tax
at a rate of 31% ("backup withholding") in the case of non-exempt shareholders
if (1) the shareholder fails to furnish the Fund with and to certify the
shareholder's correct taxpayer identification number or social security number;
(2) the IRS notifies the shareholder or the Fund that the shareholder has failed
to report properly certain interest and dividend income to the IRS and to
respond to notices to that effect; or (3) when required to do so, the
shareholder fails to certify that he or she is not subject to backup
withholding. If the withholding provisions are applicable, any such
distributions or proceeds, whether reinvested in additional shares or taken in
cash, will be reduced by the amounts required to be withheld.

OTHER TAXATION. The foregoing discussion relates only to U.S. Federal income
tax law as applicable to U.S. persons (i.e., U.S. citizens and residents and
----
domestic corporations, partnerships, trusts and estates). Distributions by a
Fund also may be subject to state and local taxes, and their treatment under
state and local income tax laws may differ from the U.S. Federal income tax
treatment. In many states, Fund distributions which are derived from interest
on certain U.S. Government obligations are exempt from state and local taxation.
Shareholders should consult their tax advisers with respect to particular
questions of U.S. Federal, state and local taxation. Shareholders who are not
U.S. persons should consult their tax advisers regarding U.S. and foreign tax
consequences of ownership of shares of the Fund, including the likelihood that
distributions to them would be subject to withholding of U.S. Federal income tax
at a rate of 30% (or at a lower rate under a tax treaty).

BROKERAGE ALLOCATION

To the maximum extent feasible, the Manager places orders for portfolio
transactions through the Distributor, which in turn places orders on behalf of
each Fund with other broker/dealers. The Distributor receives no commissions,
fees or other remuneration from a Fund for this service. Allocation of
brokerage is supervised by the Manager.

The primary objective of the Manager in placing orders for the purchase and sale
of securities for each Fund's portfolio is to obtain the most favorable net
results taking into account such factors as price, commission (negotiable in the
case of U.S. national securities exchange transactions) where applicable, size
of order, difficulty of execution and skill required of the executing
broker/dealer. The Manager seeks to evaluate the overall reasonableness of
brokerage commissions paid (to the extent applicable) through the familiarity of
the Distributor with commissions charged on comparable transactions, as well as
by

17
<PAGE>

comparing commissions paid by a Fund to reported commissions paid by others.
The Manager reviews on a routine basis commission rates, execution and
settlement services performed, making internal and external comparisons.

Each Fund's purchases and sales of fixed-income securities are generally placed
by the Manager with primary market makers for these securities on a net basis,
without any brokerage commission being paid by the Fund. Trading does, however,
involve transaction costs. Transactions with dealers serving as primary market
makers reflect the spread between the bid and asked prices. Purchases of
underwritten issues may be made that will include an underwriting fee paid to
the underwriter. Portfolio transactions in debt securities may also be placed
on an agency basis, with a commission being charged.

When it can be done consistently with the policy of obtaining the most favorable
net results, it is the Manager's practice to place such orders with
broker/dealers who supply research, market and statistical information to the
Funds. The term "research market and statistical information" includes advice
as to the value of securities; the advisability of investing in, purchasing or
selling securities; the availability of securities or purchasers or sellers of
securities; and analyses and reports concerning issuers, industries, securities,
economic factors and trends, portfolio strategy and the performance of accounts.
The Manager is not authorized when placing portfolio transactions for a Fund to
pay a brokerage commission (to the extent applicable) in excess of that which
another broker might charge for executing the same transaction solely on account
of the receipt of research, market or statistical information. The Manager does
not place orders with brokers or dealers because the broker or dealer has or has
not sold shares of a Fund. In effecting transactions in over-the-counter
securities, orders are placed with the principal market makers for the security
being traded unless, after exercising care, it appears that more favorable
results are available elsewhere.

Although certain research, market and statistical information from
broker/dealers may be useful to a Fund and to the Manager, it is the opinion of
the Manager that such information only supplements its own research effort since
the information must still be analyzed, weighed and reviewed by the Manager's
staff. Such information may be useful to the Manager in providing services to
clients other than a Fund and not all such information is used by the Manager in
connection with the Fund. Conversely, such information provided to the Manager
by broker/dealers through whom other clients of the Manager effect securities
transactions may be useful to the Manager in providing services to a Fund.

The Trustees of the Trust review from time to time whether the recapture for the
benefit of a Fund of some portion of the brokerage commissions or similar fees
paid by the Fund on portfolio transactions is legally permissible and advisable.

PORTFOLIO TURNOVER

Fund securities may be sold in an effort to improve a Fund's overall investment
return. Each Fund's portfolio turnover rate is calculated by dividing the
lesser of purchases or sales of portfolio securities for the fiscal year by the
monthly average of the value of the portfolio securities owned by the Fund
during the fiscal year. A 100% turnover rate occurs, for example, if all of the
Fund's portfolio securities are sold and either repurchased or replaced within
one year. For purposes of determining portfolio turnover, all securities whose
maturities at the time of acquisition were one year or less are excluded.

A higher portfolio turnover rate involves correspondingly higher brokerage
commissions and other transaction costs, which will be borne directly by the
affected Fund. In addition, short-term gains realized from portfolio
transactions are taxable to shareholders as ordinary income. It is currently
anticipated that the portfolio turnover rate for each Fund during its initial
fiscal year will not exceed 100%.

18
<PAGE>

NET ASSET VALUE

The net asset value per share of each Fund is determined by dividing the value
of the total assets of the Fund, less all liabilities, by the total number
shares of the Fund outstanding. Net asset value for the Funds is computed once
daily as of the close of regular trading on the Exchange (normally 4:00 p.m. New
York time) on each day the Exchange is open for trading. The Exchange is
normally closed on New Year's Day, Presidents Day, Good Friday, Memorial Day,
Independence Day, Labor Day, Thanksgiving Day and Christmas Day. On those days
when the Funds' Custodian or the New York Stock Exchange close early as a result
of such day being a partial holiday or otherwise, the Funds reserve the right to
advance on that day the time by which purchase and redemption requests must be
received.

WEISS TREASURY ONLY MONEY MARKET FUND

Weiss Treasury Only Money Market Fund uses the amortized cost method of security
valuation, as permitted under Rule 2a-7 under the 1940 Act. Under this method,
securities acquired by the Fund are valued at cost on the date of acquisition
and thereafter assume a constant accretion of discount or amortization of
premium to maturity, regardless of the impact of fluctuating interest rates on
the market value of the instruments.

WEISS INTERMEDIATE TREASURY FUND
WEISS TREASURY BOND FUND

Debt securities, other than short-term securities, are valued at bid prices
supplied by a Fund's pricing agent and reflect broker/dealer supplied valuations
and electronic data processing techniques. Short-term securities with remaining
maturities of sixty days or less are valued by the amortized cost method, which
the Board of Trustees believes approximates market value. If it is not possible
to value a particular debt security pursuant to these valuation methods, the
value of such security is the most recent bid quotation supplied by a bona fide
marketmaker. If no such bid quotation is available, the Manager may calculate
the price of that debt security, subject to limitations established by the Board
of Trustees.

If a security is traded on more than one exchange, or on one or more exchanges
and in the over-the-counter market, quotations are taken from the market in
which the security is traded most extensively.

If, in the opinion of the Fund's Valuation Committee, the value of an asset as
determined in accordance with these procedures does not represent the fair
market value of the asset, the value of the asset is taken to be an amount
which, in the opinion of the Valuation Committee, represents fair market value
on the basis of all available information. The value of other portfolio
holdings owned by a Fund is determined in a manner which, in the discretion of
the Valuation Committee most fairly reflects fair market value of the property
on the valuation date.

FINANCIAL STATEMENTS

The initial balance sheet for each Fund and related reports of Coopers & Lybrand
LLP are attached hereto and incorporated by reference herein.

INDEPENDENT ACCOUNTANTS

The Financial Statements included herewith have been so included in reliance on
the report of Coopers & Lybrand LLP, independent accountants, 200 South Biscayne
Blvd., Suite 1900, Miami, FL 33131, and given on the authority of that firm as
experts in accounting and auditing.

19
<PAGE>

ADDITIONAL INFORMATION

Dechert Price & Rhoads, Ten Post Office Square--South, Boston, MA 02109 serves
as counsel to the Trust and the Funds.

20
<PAGE>

WEISS INTERMEDIATE TREASURY FUND

STATEMENT OF ASSETS AND LIABILITIES
JANUARY 5, 1996
- --------------------------------------------------------------------------------

<TABLE>

<S> <C>
ASSETS:
Cash....................................................... $33,333
Organization Costs......................................... 32,000
Prepaid Blue Sky........................................... 12,185
-------

Total Assets.............................................. 77,518
-------

LIABILITIES:
Due to Affiliates.......................................... 44,185
-------

NET ASSETS:.................................................. $33,333
=======

NET ASSETS CONSIST OF:
Capital stock, par value $.01 per share, unlimited shares
authorized, 3,333.30 shares issued and outstanding........ $ 33
Additional paid-in-capital................................. 33,300
-------

Total..................................................... $33,333
=======

NET ASSETS VALUE, OFFERING AND REDEMPTION PRICE PER SHARE:
($33,333 /3,333.30 shares outstanding)...................... $10.00
=======

</TABLE>

The accompanying notes are an integral part of this financial statement.
<PAGE>

WEISS INTERMEDIATE TREASURY FUND

NOTES TO STATEMENT OF ASSETS AND LIABILITIES
JANUARY 5, 1996
- --------------------------------------------------------------------------------

1. ORGANIZATION:

Weiss Intermediate Treasury Fund ("Fund") is a diversified series of Weiss
Treasury Fund ("Trust"), an open-end management investment company
registered under the Investment Company Act of 1940, as amended. The Trust
was organized on August 10, 1995 as a Massachusetts business trust. The
Fund commenced operations on January 16, 1996. As of the date of this
report, operations have been limited to organizational matters and the
issuance of initial shares to Weiss Money Management Inc. ("the Manager").

2. ORGANIZATION COSTS AND TRANSACTIONS WITH AFFILIATES:

Organization expenses are being amortized over a five year period from
January 16, 1996, the commencement date of operations. Such organizational
expenses have been paid by the Manager and will be reimbursed by the Fund.
If the Manager withdraws any portion of its $33,333 seed money prior to the
end of the five year period beginning January 16, 1996, the redemption
price of the seed money shares will be reduced by a pro rata share (based
on the proportionate share of the original shares redeemed to the total
number of original shares outstanding at the time of redemption) of the
unamortized organizational expenses.

The Manager is the investment adviser to Weiss Intermediate Treasury Fund,
and is responsible for the day-to-day management of the Fund's portfolio.
Weiss Intermediate Treasury Fund shares are sold on a continuous basis by
Weiss Funds, Inc., a registered broker-dealer and wholly-owned subsidiary
of the Manager.

PFPC Inc. ("the Administrator"), a wholly-owned subsidiary of PNC Bank, NA,
serves as administrator to the Fund.

Certain officers of the Trust are officers and / or employees of the
Manager, Administrator and Counsel to the Fund. Such individuals are not
compensated by the Trust for services in their capacity as Trust officers.
<PAGE>

WEISS TREASURY ONLY MONEY MARKET FUND

STATEMENT OF ASSETS AND LIABILITIES
JANUARY 5, 1996
- --------------------------------------------------------------------------------

<TABLE>

<S> <C>
ASSETS:
Cash....................................................... $33,334
Organization Costs......................................... 32,002
Prepaid Blue Sky........................................... 12,385
-------

Total Assets............................................. 77,721
-------

LIABILITIES:
Due to Affiliates.......................................... 44,387
-------

NET ASSETS:................................................. $33,334
=======

NET ASSETS CONSIST OF:
Capital stock, par value $.01 per share, unlimited shares
authorized, 33,334 shares issued and outstanding......... $ 334
Additional paid-in-capital................................. 33,000
-------

Total.................................................... $33,334
=======

NET ASSET VALUE, OFFERING AND REDEMPTION PRICE
PER SHARE: ($33,334 /33,334 shares outstanding).......... $1.00
=======

</TABLE>

The accompanying notes are an integral part of this financial statement.
<PAGE>

WEISS TREASURY ONLY MONEY MARKET FUND

NOTES TO STATEMENT OF ASSETS AND LIABILITIES
JANUARY 5, 1996
- --------------------------------------------------------------------------------

1. ORGANIZATION:

Weiss Treasury Only Money Market Fund ("Fund") is a diversified series of
Weiss Treasury Fund ("Trust"), an open-end management investment company
registered under the Investment Company Act of 1940, as amended. The Trust
was organized on August 10, 1995 as a Massachusetts business trust. The
Fund commenced operations on January 16, 1996. As of the date of this
report, operations have been limited to organizational matters and the
issuance of initial shares to Weiss Money Management Inc. ("the Manager").

2. ORGANIZATION COSTS AND TRANSACTIONS WITH AFFILIATES:

Organization expenses are being amortized over a five year period from
January 16, 1996, the commencement date of operations. Such organizational
expenses have been paid by the Manager and will be reimbursed by the Fund.
If the Manager withdraws any portion of its $33,334 seed money prior to the
end of the five year period beginning January 16, 1996, the redemption
price of the seed money shares will be reduced by a pro rata share (based
on the proportionate share of the original shares redeemed to the total
number of original shares outstanding at the time of redemption) of the
unamortized organizational expenses.

The Manager is the investment adviser to Weiss Treasury Only Money Market
Fund, and is responsible for the day-to-day management of the Fund's
portfolio. Weiss Treasury Only Money Market Fund shares are sold on a
continuous basis by Weiss Funds, Inc., a registered broker-dealer and
wholly-owned subsidiary of the Manager.

PFPC Inc. ("the Administrator"), a wholly-owned subsidiary of PNC Bank, NA,
serves as administrator to the Fund.

Certain officers of the Trust are officers and / or employees of the
Manager, Administrator and Counsel to the Funds. Such individuals are not
compensated by the Trust for services in their capacity as Trust officers.
<PAGE>

WEISS TREASURY BOND FUND

STATEMENT OF ASSETS AND LIABILITIES
JANUARY 5, 1996
- --------------------------------------------------------------------------------

<TABLE>

Total Assets............................................. 78,898
-------

LIABILITIES:
Due to Affiliates.......................................... 45,565
-------

NET ASSETS:................................................. $33,333
=======

NET ASSETS CONSIST OF:
Capital stock, par value $.01 per share, unlimited shares
authorized, 3,333.30 shares issued and outstanding....... $ 33
Additional paid-in-capital................................. 33,300
-------

Total.................................................... $33,333
=======

NET ASSETS VALUE, OFFERING AND REDEMPTION PRICE
PER SHARE: ($33,333 /3,333.30 shares outstanding)......... $ 10.00
=======

</TABLE>

The accompanying notes are an integral part of this financial statement.
<PAGE>

WEISS TREASURY BOND FUND

NOTES TO STATEMENT OF ASSETS AND LIABILITIES
JANUARY 5, 1996
- --------------------------------------------------------------------------------

1. ORGANIZATION:

Weiss Treasury Bond Fund ("Fund") is a diversified series of Weiss Treasury
Fund ("Trust"), an open-end management investment company registered under
the Investment Company Act of 1940, as amended. The Trust was organized on
August 10, 1995 as a Massachusetts business trust. As of the date of this
report, except for organizational matters and the issuance of initial
shares to Weiss Money Management, Inc. ("the Manager"), the Fund has not
yet commenced operations.

2. ORGANIZATION COSTS AND TRANSACTIONS WITH AFFILIATES:

Organization expenses will be amortized over a five year period from
commencement of operations. Such organizational expenses have been paid by
the Manager and will be reimbursed by the Fund. If the Manager withdraws
any portion of its $33,333 seed money prior to the end of the five year
period beginning with commencement of operations, the redemption price of
the seed money shares will be reduced by a pro rata share (based on the
proportionate share of the original shares redeemed to the total number of
original shares outstanding at the time of redemption) of the unamortized
organizational expenses.

The Manager is the investment adviser to Weiss Treasury Bond Fund, and is
responsible for the day-to-day management of the Fund's portfolio.

PFPC Inc. ("the Administrator"), a wholly-owned subsidiary of PNC Bank, NA,
serves as administrator to the Fund.

REPORT OF INDEPENDENT ACCOUNTANTS

To the Shareholders and Board of Trustees
of Weiss Treasury Fund

We have audited the accompanying Statement of Assets and Liabilities of Weiss
Treasury Fund (the "Trust") (consisting of Weiss Treasury Only Money Market
Fund, Weiss Intermediate Treasury Fund and Weiss Treasury Bond Fund) as of
January 5, 1996. This financial statement is the responsibility of the Trust's
management. Our responsibility is to express an opinion on this financial
statement based on our audit.

We conducted our audit in accordance with generally accepted auditing standards.
Those standards require that we plan and perform the audit to obtain reasonable
assurance about whether the financial statement is free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statement. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audit provides a reasonable basis for our opinion.

In our opinion, the financial statement referred to above presents fairly, in
all material respects, the financial position of Weiss Treasury Fund as of
January 5, 1996 in conformity with generally accepted accounting principles.

COOPERS & LYBRAND L.L.P.

2400 Eleven Penn Center
Philadelphia, Pennsylvania
January 5, 1996