<PAGE> 1
WEISS TREASURY FUND
WEISS TREASURY ONLY MONEY MARKET FUND
WEISS INTERMEDIATE TREASURY FUND
Semi-Annual Report
June 30, 1996
(Unaudited)
<PAGE> 2
WEISS TREASURY FUND
President's Message
June 30, 1996
Dear Shareholder,
The Weiss Treasury Fund began operation on the last business day of June,
1996, leaving only one day of activity to be reported in this first Semi-
Annual Report. This unusually short period does little to reflect the
structure and condition of the ongoing portfolios.
Due to the start-up needs of the fund, maturities were kept short with
the average weighted maturity of the Treasury Only Money Market Fund and
the Intermediate Treasury Fund being 49 days and 0.6 hears respectively.
Short term Treasury securities were bought for both portfolios to assure
maximum liquidity.
Since this one trading day, the portfolios have taken on a more normal
structure through diversification of maturities. Because these portfolios
are intended for the conservative investor and due to our stated goal of
producing a high level of income consistent with preservation of capital,
the present intention is to keep maturities relatively short.
The risk of rising interest rates is very high at present, so we expect to
remain with this defensive positure for the immediate future. When rates
move to a more attractive level, we expect to extend maturities and produce
an even more attractive return for the Fund shareholders.
Very truly yours,
/s/ John N. Breazeale
John N. Breazeale
President
Weiss Money Management, Inc.
<PAGE> 3
WEISS TREASURY FUND
Schedule of Investments
June 30, 1996
(Unaudited)
Weiss Treasury Only Money Market Fund
<TABLE>
<CAPTION>
Maturity Par Value
-------- --- -----
<S> <C> <C> <C>
U.S. Treasury Bills
5.30% 08/08/96 $55,000 $54,692
5.40% 08/29/96 50,000 49,558
-------
Total Investments $104,250
(Cost $104,250*) --------
*Also cost for federal income tax purposes.
Weiss Intermediate Treasury Fund
Maturity Par Value
-------- --- -----
U.S. Treasury Note
5.125% 06/30/98 $10,000 $ 9,818
U.S. Treasury Bill
5.30% 08/08/96 20,000 19,888
-------
Total Investments $29,706
(Cost $29,717*) -------
</TABLE>
*Also cost for federal income tax purposes.
The accompanying notes are an integral part of these financial statements.
1
<PAGE> 4
WEISS TREASURY FUND
Statement of Assets and Liabilities
June 30, 1996
(Unaudited)
<TABLE>
<CAPTION>
Weiss Weiss
Treasury Only Intermediate
Money Market Fund Treasury Fund
----------------- -------------
<S> <C> <C>
ASSETS
Investments at value $104,250 $29,706
(Cost $104,250 and
$29,717, respectively)
Cash 2,353 4,372
Interest receivable - 258
Receivable from Investment Adviser 2,403 1,404
Prepaid expenses 44,009 43,810
-------- -------
Total Assets 153,015 79,550
-------- -------
LIABILITIES
Dividends payable 42 12
Accrued expenses 46,417 45,216
------ ------
Total Liabilities 46,459 45,228
------ ------
NET ASSETS $106,556 $34,322
(Based on 106,556 and 3,433 ======== =======
shares of beneficial interest
outstanding, par value $0.01
per share.)
Net Assets Consist of:
Paid in capital $106,556 $34,333
Net unrealized depreciation
on investments - (11)
-------- -------
$106,556 $34,322
======== =======
Net Asset Value, Offering and
Redemption Price Per Share $ 1.00 $ 10.00
(106,556 \ 106,556 ($34,322 \ 3,433
shares of beneficial shares of beneficial
interest outstanding) interest outstanding)
</TABLE>
The accompanying notes are an integral part of these financial statements.
2
<PAGE> 5
WEISS TREASURY FUND
Statement of Operations
For the Period Ended June 30, 1996
(Unaudited)
<TABLE>
<CAPTION>
Weiss Weiss
Treasury Only Intermediate
Money Market Fund Treasury Fund
----------------- -------------
<S> <C> <C>
Investment Income
Interest $ 46 $ 14
---- ----
Expenses
Investment Advisory fees 4 1
Administration fees 821 819
Transfer Agent fees 530 416
Custodian fees 141 141
Legal fees 481 243
Audit fees 317 161
Registration and filing fees 621 449
Amortization of organizational costs 52 52
Printing 459 232
Insurance 123 62
Trustee fees 55 25
Miscellaneous 28 27
Fees waived by Investment Adviser (4) (1)
Fees waived by Administrator (806) (806)
Fees waived by Transfer Agent (294) (294)
Fees waived by Custodian (121) (121)
Reimbursement by Investment Adviser (2,403) (1,404)
----- -----
Total expenses 4 2
----- -----
Net Investment Income 42 12
----- -----
REALIZED AND UNREALIZED GAIN /( LOSS)
ON INVESTMENTS
Net change in unrealized depreciation
on investments - (11)
----- -----
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS $ 42 $ 1
===== =====
</TABLE>
The accompanying notes are an integral part of these financial statements.
3
<PAGE> 6
WEISS TREASURY FUND
Statement of Changes in Net Assets
For the Period Ended June 30, 1996
(Unaudited)
<TABLE>
<CAPTION>
Weiss Weiss
Treasury Only Intermediate
Money Market Fund Treasury Fund
----------------- -------------
<S> <C> <C>
INCREASE IN NET ASSETS:
Operations:
Net investment income $ 42 $ 12
Net change in unrealized depreciation
on investments - (11)
Net increase in net assets ---- ----
resulting from operations 42 1
---- ----
Distributions to shareholders from
net investment income (42) (12)
Increase in net assets derived from capital
share transactions 106,556 34,333
------- ------
Total increase in net assets 106,556 34,322
------- ------
NET ASSETS:
Beginning of Period - -
End of Period $106,556 $34,322
======= ======
</TABLE>
The accompanying notes are an integral part of these financial statements.
4
<PAGE> 7
WEISS TREASURY FUND
Financial Highlights
For a Fund Share Outstanding Throughout the Period
June 30, 1996
(Unaudited)
<TABLE>
<CAPTION>
Weiss Weiss
Treasury Only Intermediate
Money Market Fund(a) Treasury Fund(a)
------------------- ---------------
<S> <C> <C>
Net Asset Value, beginning of period $ 1.00 $ 10.00
Income from investment operations:
Net investment income .0004 .0036
Net gain / (loss) on securities
(realized and unrealized) .0000 .0000
----- -----
Total from investment operations .0004 .0036
----- -----
Less Distributions:
Dividends from net investment income (.0004) (.0036)
------ ------
Net asset value at end of period $ 1.00 $ 10.00
====== ======
Total return 4.96%(b) 4.49%(b)
Ratios / supplemental data
Net assets, end of period (000's) $ 107 $ 34
Ratio of expenses to average net assets .50%(b) .50%(b)
Ratio of net investment income
to average assets 4.84%(b) 4.39%(b)
Ratio of expenses to average net assets
(before fee waivers) 414%(b) 931%(b)
Ratio of net investment loss
to average assets (before fee waivers) (409%)(b) (926%)(b)
Portfolio turnover NA 0%
</TABLE>
a. The Weiss Treasury Only Money Market and Weiss Intermediate Treasury Funds
commenced operations on June 28, 1996.
b. Annualized.
The accompanying notes are an integral part of these financial statements.
5
<PAGE> 8
WEISS TREASURY FUND
Notes to Financial Statements
(Unaudited)
1. Fund Organization
Weiss Treasury Fund (the "Trust") is registered under the Investment Company
Act of 1940, as amended, ( the "1940 Act") as an open-end management
investment company. The Trust was organized as a Massachusetts business trust
on August 10, 1995. The Trust is a series fund that is authorized to issue
shares of beneficial interest in the following three investment funds: Weiss
Treasury Only Money Market Fund, Weiss Intermediate Treasury Fund, and Weiss
Treasury Bond Fund (the "Funds"). 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.
Prior to commencement of operations on June 28, 1996, transactions in the
Weiss Treasury Only Money Market Fund and the Weiss Intermediate Treasury Fund
have been limited to organization matters and the sale of 33,334 and 3,333
shares of beneficial interest, respectively. As of the date of this report,
Weiss Treasury Bond Fund has not commenced operations.
2. Significant Accounting Policies
The following is a summary of significant accounting policies followed by each
Fund in preparation of its financial statements. The preparation of financial
statements in accordance with generally accepted accounting principles
requires management to make estimates and assumptions that affect the reported
amounts and disclosures in the financial statements. Actual results could
differ from those estimates.
Portfolio valuation: Securities in the Funds are valued each day as of the
regular close of trading of the New York Stock Exchange (normally 4:00 p.m.
New York time), except on those holidays which the Exchange observes.
Investment securities of the Weiss Treasury Only Money Market Fund are valued
at amortized cost. Amortized cost valuation involves valuing an instrument at
its cost initially and, thereafter, assuming a constant amortization to
maturity of any applicable discount or premium. Investment securities of the
Weiss Intermediate Treasury Fund are valued at market value using bid prices
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 generally valued at amortized cost.
Security transactions and investment income: Security transactions are
recorded on the trade date. Realized gains and losses on investments sold are
recorded on the identified cost basis. Net investment income for each Fund
consists of all interest income accrued on the Funds' assets, less expenses.
Interest income for the Weiss Treasury Only Money Market Fund is comprised of
accrued interest, original issue and market discount earned less amortization
of any market premium. Interest income for the Weiss Intermediate Treasury
Fund is comprised of accrued interest and original issue and market discount
earned. Each Fund's expenses are also accrued daily.
6
<PAGE> 9
WEISS TREASURY FUND
Notes to the Financial Statements
(Unaudited)
Dividends and distributions to shareholders: Each Fund declares dividends
daily from net investment income. Weiss Treasury Only Money Market Fund
intends to pay accrued dividends on the last business day of each month.
Weiss Intermediate Treasury Fund intends to pay distributions of taxable
income quarterly, and distribute any net capital gains realized annually
before the Fund's fiscal year end on December 31. Each Fund may make an
additional distribution of income and gains if necessary to satisfy a
calender year excise tax distribution requirement.
Federal Income taxes: Each of the Funds is classified as a separate taxable
entity for Federal income tax purposes. Each of the Funds intends to qualify
as a separate "regulated investment company" under the Internal Revenue Code
and make the requisite distributions to its shareholders that will be
sufficient to relieve it from Federal income tax and Federal excise tax.
Therefore, no Federal tax provision is required.
Repurchase agreements: Repurchase agreements are considered loans under the
1940 Act. In connection therewith, the Trust's Custodian receives and holds
collateral of not less than 100.5% of the repurchase price plus accrued
interest. If the value of the collateral falls below this amount, the Trust
will require the seller to deposit additional collateral. If the request for
additional collateral is not met or the seller defaults on its repurchase
obligation, the Trust maintains the right to sell the underlying securities at
market value and may claim any resulting loss against the seller. In the
event of default or bankruptcy by the counterparty to the agreement,
realization and/or retention of the collateral may be subjected to legal
proceedings.
Organizational costs: The Trust bears all costs in connection with its
organization, including the fees and expenses of registering and qualifying
its shares for distribution under federal and state securities regulations.
All organization expenses are being amortized using the straight-line method
over a period not to exceed five years from the date of commencement of
operations.
3. Investment Manager, Distributor, Administrator, and Other Related Party
Transactions
Weiss Money Management, Inc. Serves as the Investment Manager ("Manager") to
the 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 the
average net assets, with respect to Weiss Treasury Only Money Market Fund and
Weiss Intermediate Treasury Fund. The Manager may from time to time waive all
or a portion of its fees payable by the funds. Certain officers of the
Manager serve as President, Secretary and Trustee to the Trust.
Weiss Funds, Inc., a registered broker-dealer and wholly owned subsidiary of
the Manager, serves as the Trust's Distributor.
7
<PAGE> 10
WEISS TREASURY FUND
Notes to the Financial Statements
(Unaudited)
PFPC Inc., ("PFPC") serves as the Trust's Administrator and, in that capacity,
performs various administrative and accounting services for each Fund. PFPC
also serves as the Trust's transfer agent, dividend disbursing agent and
registrar. An officer of PFPC serves as Treasurer to the Trust.
PNC Bank, NA serves as the Custodian for the Funds' portfolio securities and
cash.
Dechert Price & Rhoads serves as legal counsel to the Trust and the Funds. A
partner of that firm serves as Assistant Secretary to the Trust.
Each Trustee receives an annual fee of $2,000 plus reimbursement of out-of-
pocket expenses for serving in that capacity. No person who is an officer,
trustee, or employee of the Manager, Distributor, Administrator, or of any
parent or subsidiary thereof, who serves as officer, trustee, or employee of
the Trust receives any compensation from the Trust.
4. Purchase and Sale of Securities
For the period ended June 30, 1996, purchases and sales of securities, other
than short-term investments aggregated $9,828 and $0, respectively for the
Weiss Intermediate Treasury Fund.
5. Shares of Beneficial Interest
The Trust's Declaration of Trust authorizes the Board of Trustees to issue an
unlimited number of shares of beneficial interest each having $0.01 par value.
Transactions in capital shares are summarized below.
<TABLE>
<S> <C> <C>
Weiss Treasury Only Money Market Fund Shares Value
- ------------------------------------- ------ -----
Shares sold 106,556 $106,556
Shares reinvested 0 0
Shares repurchased 0 0
Weiss Intermediate Treasury Fund Shares Value
- -------------------------------- ------ -----
Shares sold 3,433 $34,333
Shares reinvested 0 0
Shares repurchased 0 0
</TABLE>
8
