<PAGE> 1
WEISS TREASURY FUND
A Letter from the President
Dear Shareholder,
It is with pleasure that we send you the Annual Report to Shareholders
for the fiscal year ended December 31, 1997 for Weiss Treasury Fund (the
"Trust"), consisting of Weiss Treasury Only Money Market Fund, Weiss
Intermediate Treasury Fund (which was recently closed) and Weiss Treasury Bond
Fund. As the Trust ended its first complete fiscal year, Weiss Treasury Bond
Fund had not yet commenced operations.
1997 was somewhat unusual for yields on Treasury securities. Treasury
note yields moved lower while Treasury bill yields increased. The interest rate
on the 5 year Treasury note declined from 6.25% in January to 5.71% by year end.
As yields declined, prices rose, which translated into positive returns for
Weiss Intermediate Treasury Fund, producing a total return of 7.20% for the year
and a closing net asset value of $10.10. This compares to the Merrill Lynch
Gov't Treasury Short Term (1-3) index YTD return of 6.66%.
While Treasury note yields declined, Treasury bill rates, during the
same period, rose from 5.18% to 5.35%. The average weighted maturity of Weiss
Treasury Only Money Market Fund was 56.42 days at the close of the year. This
short average maturity reflects the conservative structure of the Fund and
allowed it to take advantage of the move during 1997 to higher rates, resulting
in a total return (after fee waivers and expense reimbursements) of 4.71%. This
compares to the Merrill Lynch T-Bill index YTD return of 5.32%.
The Trust will continue to invest with long term safety and liquidity
in mind.
If you have any questions concerning Weiss Treasury Only Money Market
Fund please call upon a fund representative at (800) 430-9617.
Sincerely,
/s/ John Breazeale
John Breazeale
President and Chairman
February 16, 1998
<PAGE> 2
1997 ANNUAL PORTFOLIO MANAGEMENT REVIEW
The US economy remained strong throughout 1997 without any notable
surge in inflation. For most of the year this ideal business climate gave
investors good reason to feel secure with their holdings. By mid-year, however,
the economic turmoil in Asia was responsible for the shift from euphoria to
caution as attitudes about the economic future changed.
By the end of 1997, many countries around the world were either
developing strategies to avoid being pulled down by the crisis or they were
struggling for survival. Uncertainty brought on by Asian monetary disorder,
large financial failures in Japan, and political upheavals in Indonesia resulted
in an investor search for safe havens. A flight to quality ensued, with US
Treasuries being, once again, the beneficiary.
This movement of assets, mainly from Asia to the United States, brought
about demand for Treasuries which strengthened during the fourth quarter. As
purchases accelerated, yields declined. As a result, the long-term Treasury bond
yield dropped from 6.30% in January, 1997 to 5.58% by year end, as investors
shifted out of other more aggressive investments, especially Asian securities.
While the flight to quality indicates how sensitive yields are to
increased inflows of capital, the bond market is just as sensitive to a change
in demand and outflows. So as the Asian crisis unfolds, we are mindful of the
threat it could pose to our bond market. A large portion of US Treasury bonds
outstanding are owned by foreign investors -- Japan in particular -- so any
deepening of the crisis in Asia could prompt outright selling of US Treasuries
in order to bring funds back to their ailing economies. If this well-known
source of demand for bonds abruptly changes and bonds are sold, prices could
fall and yields would rise.
Fortunately, rising yields would be positive for our shareholders.
Weiss Treasury Only Money Market Fund would be able to take advantage of higher
yields almost immediately, translating into higher income for shareholders.
The "flight to quality" in 1997 helped increase assets in the Treasury
Only Money Market Fund from $11.1 million in January to $33.5 million by year
end. The portfolio was positioned with a relatively short average maturity of
just over 56 days at the end of the year, reflecting the conservative management
that we expect to carry into 1998, and we believe will continue to help the Fund
to grow in size. The Fund's total return for 1997 (after fee waivers and expense
reimbursements) was 4.71%.
Weiss Intermediate Treasury Fund was also managed with a fairly short
maturity. This allowed the portfolio to produce a total return (after fee
waivers and expense reimbursements) of 7.20%. Since Weiss Intermediate Treasury
Fund closed on January 31, 1998, our interest rate strategy will apply to the
money fund and to Weiss Treasury Bond Fund when it commences operations. We
expect the interest rate environment to be very fluid and, should rates rise
substantially, it is likely that the bond portfolio will be opened to new
shareholders.
WEISS INTERMEDIATE TREASURY FUND
AVERAGE ANNUAL TOTAL RETURN SINCE INCEPTION - 7.07%
<TABLE>
<CAPTION>
Fund Index
<S> <C> <C>
Jun-96 10000 10000
Sep-96 10152 10121
Dec-96 10344 10198
Mar-97 10302 10253
Jun-97 10587 10440
Sep-97 10857 10781
Dec-97 11088 10974
</TABLE>
The Index is the Merrill Lynch Treasury 1-10 Year Index
Inception date of the Fund was June 28, 1996
<PAGE> 3
WEISS TREASURY FUND
WEISS TREASURY ONLY MONEY MARKET FUND
STATEMENT OF NET ASSETS, DECEMBER 31, 1997
<TABLE>
<CAPTION>
Par (000) Value
----------- -----------
<S> <C> <C>
US TREASURY OBLIGATIONS - 99.62%
US Treasury Bills
4.780%, due 01/02/98 ...................... $ 2,000 $ 1,999,735
4.900%, due 01/08/98 ...................... 2,000 1,998,095
5.045%, due 01/15/98 ..................... 1,000 998,038
5.210%, due 01/22/98 ...................... 1,000 996,961
5.100%, due 01/29/98 ...................... 2,000 1,992,067
5.120%, due 02/05/98 ...................... 3,000 2,985,067
5.100%, due 02/12/98 ...................... 2,000 1,988,100
5.115%, due 02/19/98 ...................... 2,000 1,986,076
5.085%, due 02/26/98 ...................... 2,000 1,984,180
5.020%, due 03/05/98 ..................... 2,000 1,982,430
5.070%, due 03/05/98 ...................... 2,000 1,982,255
5.070%, due 03/12/98 ..................... 2,000 1,980,283
5.035%, due 03/19/98 ..................... 2,000 1,978,461
5.095%, due 03/19/98 ...................... 2,000 1,978,205
5.310%, due 04/02/98 ...................... 1,500 1,479,866
5.280%, due 04/09/98 ...................... 1,500 1,478,440
5.230%, due 04/16/98 ..................... 1,000 984,746
5.050%, due 04/23/98 ...................... 2,500 2,460,722
-----------
Total US Treasury Obligations (Cost $33,233,727) 33,233,727
-----------
</TABLE>
<TABLE>
<CAPTION>
Shares
------------
<S> <C> <C> <C>
SHORT-TERM INVESTMENT - 0.68%
Temporary Investment Fund, Inc.-
T-Fund Portfolio (Cost $226,279) 226,279 226,279
------------
TOTAL INVESTMENTS (COST $33,460,006*) 100.30% 33,460,006
LIABILITIES IN EXCESS OF OTHER ASSETS (0.30%) (98,760)
------------ ------------
Net Assets (Equivalent to $1.00 per share based
on 33,361,246 shares of capital stock outstanding) 100.00% $ 33,361,246
============ ============
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER SHARE
($33,361,246 / 33,361,246 shares outstanding) $ 1.00
============
</TABLE>
- ------------
* Aggregate cost for federal income tax purposes is substantially the same.
See accompanying notes to financial statements.
<PAGE> 4
WEISS TREASURY FUND
WEISS INTERMEDIATE TREASURY FUND
STATEMENT OF NET ASSETS, DECEMBER 31, 1997
<TABLE>
<CAPTION>
Par (000) Value
------------- -------------
<S> <C> <C> <C>
US TREASURY OBLIGATIONS - 100.42%
US Treasury Notes
6.25%, due 10/31/01 $ 1,000 $ 1,016,530
7.50%, due 11/15/01 800 847,872
-------------
Total US Treasury Obligations (Cost $1,847,213) 1,864,402
-------------
SHORT-TERM INVESTMENT - 4.17% Shares
-------------
Temporary Investment Fund, Inc.-
T-Fund Portfolio (Cost $77,361) 77,361 77,361
-------------
TOTAL INVESTMENTS (COST $1,924,574) 104.59% 1,941,763
LIABILITIES IN EXCESS OF OTHER ASSETS (4.59%) (85,205)
------------- -------------
Net Assets (Equivalent to $10.10 per share based
on 183,862 shares of capital stock outstanding) 100.00% $ 1,856,558
============= =============
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER SHARE
($1,856,558 / 183,862 shares outstanding) $ 10.10
=============
</TABLE>
- ------------
* Aggregate cost for federal income tax purposes is substantially the same. The
aggregate gross unrealized appreciation/(depreciation) for all securities is as
follows:
<TABLE>
<S> <C>
Excess of value over tax cost ............................ $17,189
Excess of tax cost over value ........................... 0
-------
$17,189
=======
</TABLE>
See accompanying notes to financial statements.
<PAGE> 5
WEISS TREASURY FUND
STATEMENT OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 1997
<TABLE>
<CAPTION>
WEISS WEISS
TREASURY ONLY INTERMEDIATE
MONEY MARKET FUND TREASURY FUND
----------- -----------
<S> <C> <C>
INVESTMENT INCOME:
Interest ............................. $ 1,150,232 $ 291,602
----------- -----------
EXPENSES:
Investment Advisory fees ............. 112,410 22,111
Administration fees .................. 68,705 68,654
Transfer Agent fees .................. 64,216 53,537
Custodian fees ....................... 17,690 16,390
Legal fees ........................... 30,999 7,651
Audit fees ........................... 20,050 4,949
Printing ............................. 14,436 3,563
Insurance ............................ 9,111 2,278
Trustees' fees ....................... 4,811 1,187
Registration and filing fees ......... 31,357 13,001
Amortization of organizational costs . 6,998 6,991
Miscellaneous ........................ 599 401
----------- -----------
Total Expenses .................. 381,382 200,713
Less: expenses waived and reimbursed . (268,971) (178,602)
----------- -----------
Net Expenses .................... 112,411 22,111
----------- -----------
Net Investment Income ....................... 1,037,821 269,491
----------- -----------
UNREALIZED GAIN/(LOSS) ON INVESTMENTS:
Net change in unrealized appreciation/
(depreciation) on investments ... -- 13,514
----------- -----------
Net increase in net assets resulting from
operations ........................... $ 1,037,821 $ 283,005
=========== ===========
</TABLE>
- ------------
See accompanying notes to financial statements.
<PAGE> 6
WEISS TREASURY FUND
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
WEISS TREASURY ONLY MONEY MARKET FUND
-------------------------------------
January 1, 1997 June 28, 1996*
through through
December 31, 1997 December 31, 1996
------------ ------------
<S> <C> <C>
INCREASE IN NET ASSETS:
Operations:
Net investment income ................... $ 1,037,821 $ 122,700
------------ ------------
Net increase in net assets resulting from
operations ........................... 1,037,821 122,700
Distributions:
From net investment income .............. (1,037,821) (122,700)
Capital share transactions:
Net increase from capital share
transactions ......................... 22,233,924 11,093,988
------------ ------------
Total increase in net assets ............ 22,233,924 11,093,988
NET ASSETS
Beginning of period .......................... 11,127,322 33,334
------------ ------------
End of period ................................ $ 33,361,246 $ 11,127,322
============ ============
</TABLE>
- ------------
*Commencement of operations
See accompanying notes to financial statements.
<PAGE> 7
WEISS TREASURY FUND
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
WEISS INTERMEDIATE TREASURY FUND
--------------------------------
January 1, 1997 June 28, 1996*
through through
December 31, 1997 December 31, 1996
----------- -----------
<S> <C> <C>
INCREASE IN NET ASSETS:
Operations:
Net investment income ................... $ 269,491 $ 45,467
Net change in unrealized appreciation/
(depreciation) on investments ........ 13,514 3,675
----------- -----------
Net increase in net assets resulting from
operations ........................... 283,005 49,142
Distributions:
From net investment income .............. (269,491) (45,467)
Capital share transactions:
Net increase (decrease) from capital
share transactions ................... (916,685) 2,722,721
----------- -----------
Total increase (decrease) in net assets . (903,171) 2,726,396
NET ASSETS
Beginning of period .......................... 2,759,729 33,333
----------- -----------
End of period ................................ $ 1,856,558 $ 2,759,729
=========== ===========
</TABLE>
- ------------
*Commencement of operations
See accompanying notes to financial statements.
<PAGE> 8
WEISS TREASURY FUND
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
<TABLE>
<CAPTION>
WEISS TREASURY ONLY MONEY MARKET FUND
-------------------------------------
January 1, 1997 June 28, 1996*
through through
December 31, 1997 December 31, 1996
----------------- -----------------
<S> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD: $ 1.00 $ 1.00
---------- ----------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income .............. 0.05 0.02
---------- ----------
LESS DISTRIBUTIONS:
From net investment income ......... (0.05) (0.02)
---------- ----------
NET ASSET VALUE, END OF PERIOD: $ 1.00 $ 1.00
========== ==========
Total return .............................. 4.71% 4.67%(3)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000) ........... $ 33,361 $ 11,127
Ratio of expenses to average net assets(1). 0.50% 0.50%(3)
Ratio of net investment income to average
net assets(2) ...................... 4.60% 4.54%(3)
</TABLE>
(1) The annualized expense ratios before waivers and reimbursement of expenses
for the periods ended December 31, 1997 and December 31, 1996 for Weiss
Treasury Only Money Market Fund would have been 1.69% and 7.69%,
respectively.
(2) The annualized net investment income/(loss) ratios before waivers and
reimbursement of expenses for the periods ended December 31, 1997, and
December 31, 1996 for Weiss Treasury Only Money Market Fund would have been
3.41% and (2.65)%, respectively.
(3) Annualized.
* Commencement of operations.
See accompanying notes to financial statements.
<PAGE> 9
WEISS TREASURY FUND
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
<TABLE>
<CAPTION>
WEISS INTERMEDIATE TREASURY FUND
-------------------------------------
January 1, 1997 June 28, 1996*
through through
December 31, 1997 December 31, 1996
----------------- -----------------
<S> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD: $ 10.01 $ 10.00
--------- ---------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income ................. 0.61 0.33
Net realized and unrealized gain/(loss)
on investments ................... 0.09 0.01
--------- ---------
Total from investment operations . 0.70 0.34
--------- ---------
LESS DISTRIBUTIONS:
From net investment income ............ (0.61) (0.33)
--------- ---------
NET ASSET VALUE, END OF PERIOD: .............. $ 10.10 $ 10.01
========= =========
Total return ................................. 7.20% 6.82%(3)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000) .............. $ 1,857 $ 2,760
Ratio of expenses to average net assets(1) ... 0.50% 0.50%(3)
Ratio of net investment income to average
net assets(2) ......................... 6.09% 6.39%(3)
Portfolio turnover ........................... 50.73% 0%
</TABLE>
(1) The annualized expense ratios before waivers and reimbursement of expenses
for the periods ended December 31, 1997 and December 31, 1996 for Weiss
Intermediate Treasury Fund would have been 4.54% and 21.51%, respectively.
(2) The annualized net investment income/(loss) ratios before waivers and
reimbursement of expenses for the periods ended December 31, 1997 and
December 31, 1996 for Weiss Intermediate Treasury Fund would have been
2.05% and (14.62)%, respectively.
(3) Annualized.
* Commencement of operations.
See accompanying notes to financial statements.
<PAGE> 10
WEISS TREASURY FUND
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1997
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 (individually, a "Fund" and collectively, the "Funds"). The Board of
Trustees of the Trust oversees the business affairs of the Trust and is
responsible for significant decision 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. As of the date of this report, Weiss
Treasury Bond Fund had no 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: Investment securities of 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 a market value cannot be readily obtained, at fair value
as determined by the Boar of Trustees or its designee. 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 accrued expense. Interest
income for 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 Weiss Intermediate Treasury Fund is
comprised of accrued interest and original issue and market discount earned.
Each Fund's expenses are also accrued daily.
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 may
elect to distribute any net capital gains realized annual before the Fund's
fiscal year end of December 31. Each Fund may make an
<PAGE> 11
WEISS TREASURY FUND
NOTES TO FINANCIAL STATEMENTS
(CONTINUED)
additional distribution of income and gains if necessary to satisfy a calendar
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: The Funds may agree to purchase money market instruments
subject to the seller's agreement to repurchase them at an agreed upon date and
price. The seller, under a repurchase agreement, will be required on a daily
basis to maintain the value of the securities subject to the agreement at no
less than the repurchase price. 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.
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 form the date of commencement of operations.
3. INVESTMENT MANAGER, DISTRIBUTOR, ADMINISTRATOR, AND OTHER RELATED PARTY
TRANSACTIONS
Weiss Money Management, Inc. (the "Manager") serves as the Investment 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 Fund 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 daily net assets with respect of 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 offices 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.
PFPC Inc. ("PFPC"), an indirect wholly-owned subsidiary of PNC Bank, 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.
<PAGE> 12
WEISS TREASURY FUND
NOTES TO FINANCIAL STATEMENTS
(CONTINUED)
For the period ended December 31, 1997, the Manager, Administrator, Transfer
Agent and Custodian of Weiss Treasury Only Money Market Fund voluntarily waived
fees totaling $112,410, $10,791, $4,505 and $1,877, respectively. For Weiss
Intermediate Treasury Fund, the Manager, Administrator, Transfer Agent and
Custodian voluntarily waived fees totaling $22,111, $10,777, $4,500 and $1,875.
In addition, the Manager has voluntarily agreed to reimburse each Fund
individually to the extent required to maintain expense at no more than 0.50% of
the average daily net assets. For the period ended December 31, 1997, the
Manager agreed to reimburse Weiss Treasury Only Money Market Fund and Weiss
Intermediate Treasury Fund $139,388 and $139,339, respectively.
Dechert Price & Rhoads serves as legal counsel to the Trust. 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 expense 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. NET ASSETS
At December 31, 1997, the Funds' net assets consisted of:
<TABLE>
<CAPTION>
WEISS TREASURY ONLY WEISS INTERMEDIATE
MONEY MARKET FUND TREASURY FUND
<S> <C> <C>
Paid in capital $33,361,246 $1,839,369
Net unrealized appreciation
(depreciation) on investments -- 17,189
----------- ----------
$33,361,246 $1,856,558
----------- ----------
</TABLE>
5. PURCHASES AND SALES OF SECURITIES
For the period ended December 31, 997, purchases and sales of securities, other
than short-term investments aggregated $2,028,990 and $2,928,897, respectively,
for Weiss Intermediate Treasury Fund.
6. 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.
On December 31, 1997, one stockholder held approximately 25.9% of the
outstanding shares of Weiss Treasury Only Money Market Fund and three
shareholders held approximately 20.1% of the outstanding shares of Weiss
Intermediate Treasury Fund.
<PAGE> 13
WEISS TREASURY FUND
NOTES TO FINANCIAL STATEMENTS
(CONTINUED)
WEISS TREASURY ONLY MONEY MARKET FUND
Transactions in capital shares for the period ended December 31, 1997 are
summarized below.
<TABLE>
<CAPTION>
SHARES VALUE
------ -----
<S> <C> <C>
Shares sold 43,729,538 $43,729,538
Shares reinvested 925,467 925,467
Shares repurchased (22,421,081) (22,421,081)
------------ ------------
22,233,924 $22,233,924
------------ ------------
</TABLE>
Transactions in capital shares for the period ended December 31, 1996 are
summarized below.
<TABLE>
<CAPTION>
SHARES VALUE
------ -----
<S> <C> <C>
Shares sold 11,934,139 $11,934,139
Shares reinvested 75,908 75,908
Shares repurchased (916,059) (916,059)
---------- -----------
11,093,988 $11,093,988
---------- -----------
</TABLE>
WEISS INTERMEDIATE TREASURY FUND
Transactions in capital shares for the period ended December 31, 1997 are
summarized below.
<TABLE>
<CAPTION>
SHARES VALUE
------ -----
<S> <C> <C>
Shares sold 358,043 $3,570,400
Shares reinvested 25,666 256,135
Shares repurchased (475,412) (4,743,220)
--------- -----------
(91,703) ($916,685)
--------- -----------
</TABLE>
Transactions in capital shares for the period ended December 31, 1996 are
summarized below.
<TABLE>
<CAPTION>
SHARES VALUE
------ -----
<S> <C> <C>
Shares sold 79,796 $2,798,622
Shares reinvested 901 8,993
Shares repurchased (8,465) (84,894)
------- ----------
272,232 $2,722,721
------- ----------
</TABLE>
7. SUBSEQUENT EVENT
Prior to December 15, 1997, all shareholders of Weiss Intermediate Treasury Fund
had been requested to exchange all of their shares outstanding into Weiss
Treasury Only Money Market Fund by January 28, 1998 or to redeem all of their
shares by January 29, 1998 in order for Weiss Intermediate Treasury Fund to be
fully dissolved by January 30, 1998. As of the date of this report, February 16,
1998, Weiss Intermediate Treasury Fund was fully dissolved.
<PAGE> 14
REPORT OF INDEPENDENT ACCOUNTANTS
TO THE SHAREHOLDERS AND BOARD OF TRUSTEES OF WEISS TREASURY FUND:
We have audited the accompanying statements of net assets of Weiss Treasury Fund
(the "Fund") (comprised of the Weiss Treasury Only Money Market Fund and Weiss
Intermediate Treasury Fund), as of December 31, 1997, and the related statements
of operations for the year then ended, the statement of changes in net assets
for each of the two years or periods then ended and the financial highlights for
each of the periods presented. These financial statements and financial
highlights are the responsibility of the Fund's management. Our responsibility
is to express an opinion on these financial statements and financial highlights
based on our audits.
We conduct our audits 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 statements and financial highlights are
free of material misstatement. An audit includes examining, on a test basis,
evidence supporting the amounts and disclosures in the financial statements. Our
procedures included confirmation of investments held by the custodian as of
December 31, 1997. 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 audits provide a
reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of each
of the respective portfolios constituting Weiss Treasury Fund as of December 31,
1997, and the results of their operations for the year then ended, the changes
in their net assets for each of the two years or periods then ended and their
financial highlights for each of the periods presented, in conformity with
generally accepted accounting principles.
COOPERS & LYBRAND L.L.P.
2400 Eleven Penn Center
Philadelphia, Pennsylvania
February 6, 1998
<PAGE> 15
This Page Left
Intentionally Blank
<PAGE> 16
[THE WEISS
TREASURY
FUNDS LOGO]
TREASURY ONLY MONEY MARKET FUND
INTERMEDIATE TREASURY FUND
TREASURY BOND FUND
ANNUAL REPORT TO SHAREHOLDERS
DECEMBER 31, 1997
BOARD OF TRUSTEES
John N. Breazeale
Chairman
Esther S. Gordon
Robert L. Lehrer
Martin D. Weiss
Donald Wilk
OFFICERS
John N. Breazeale
President
Neal J. Andrews
Treasurer
Sharon A. Parker
Secretary
INVESTMENT MANAGER
Weiss Money Management, Inc.
4176 Burns Road
Palm Beach Gardens, FL 33410
ADMINISTRATOR
PFPC Inc.
103 Bellevue Pkwy.
Wilmington, DE 19809
DISTRIBUTOR
Weiss Funds, Inc.
4176 Burns Road
Palm Beach Gardens, FL 33410
TRANSFER AGENT
PFPC Inc.
400 Bellevue Pkwy.
Wilmington, DE 19809
This report and the financial statements contained
herein are submitted for the general information of
shareholders. This report is not authorized for
distribution to prospective investors unless preceded
or accompanied by an effective prospectus.
