<PAGE> 1
WEISS TREASURY FUND
Weiss Treasury Only Money Market Fund
Weiss Treasury Bond Fund
A LETTER FROM THE PRESIDENT
Dear Shareholder,
We are pleased to present the Semi-Annual Report for the six months ended
June 30, 1998 for Weiss Treasury Fund, consisting of Weiss Treasury Only Money
Market Fund and Weiss Treasury Bond Fund. As of June 30, 1998, Weiss Treasury
Bond Fund had not yet commenced operations.
Interest rates on short-term securities such as Treasury Bills moved
through a broad range in the first half of 1998, yielding 5.29% on January 1,
1998, moving as high as 5.34% and closing the period on June 30, 1998 at 5.07%.
The average T-Bill yield was 5.13% for this six-month period.
The drop in short-term interest rates, which followed the pattern of other
maturities in the treasury market, corresponded with an increase of assets in
the Weiss Treasury Only Money Market Fund (the "Fund") by $1.534 million to
total net assets of $34.895 million. This indicates that the flight to quality
is continuing, as investors, who are growing even more concerned with their
foreign holdings, move to safer investment vehicles such as Treasury-only money
market funds.
The average weighted maturity of the Weiss Treasury Only Money Market Fund
was 55.68 days on June 30, just 1 day shorter than the average at the beginning
of the period. This short maturity reflects the Fund's conservative structure.
The Fund will continue to invest for maximum current income with
preservation of capital and liquidity in mind.
If you have any questions concerning the Weiss Treasury Only Money Market
Fund please call upon a fund representative at (800) 430-9617.
Sincerely,
John N. Breazeale
President & Chairman
July 30, 1998
<PAGE> 2
WEISS TREASURY FUND
June 30, 1998 Semi-Annual Portfolio Management Review
Our conservative positions during the first half of 1998 will continue as
the Asian crisis sorts itself out. While there are other issues that might
disrupt markets in the United States, Asia is currently the most disturbing and
may be the main catalyst for falling stock prices and rising interest rates.
We are already seeing some signs of a change in direction. For the period
ended June 30, 1998, the average yield on regular, commercial paper
(non-Treasury) money market funds was 4.92%. In contrast, at a mere .07% lower,
Weiss Treasury Only Money Market Fund's 7-day yield for the same period stood at
4.85%. This is an indication that very short-term interest rates are moving
higher. It may also be a clue as to how the Asian crisis is starting to affect
our markets.
The New York Times welcomed the second half of 1998 with a front page
article titled, "After a Year, No Letup in Asia's Economic Crisis." It is an
important piece on an important subject that has rarely been given such a high
profile. We continue to be amazed at the lack of interest in such a significant
international development, particularly one that we have been talking about for
a year.
Often, there is a tendency to assume that the "experts," particularly those
in positions of political power, will be on top of things. While the crisis in
Asia is no surprise to our shareholders, it is apparently a big surprise to the
Clinton Administration. According to the Times article, they had no idea that
Thailand's currency melt down last year would lead to the economic crisis that
would roll around the world. In fact, President Clinton's top international
economic adviser at the time, Daniel K. Tarullos said, "There were no crisis
meetings, and certainly no sense that this was the start of an economic crisis."
This development could be significant for the Weiss Treasury Only Money
Market Fund. Just as the uncertainty in Asia has brought investors to the US
looking for a safe place to invest, we believe that a fall in US stock and bond
prices will produce higher yields and attractive opportunities for those
investors that have moved to less volatile investments such as the Weiss
Treasury Only Money Market Fund.
<PAGE> 3
WEISS TREASURY FUND
WEISS TREASURY ONLY MONEY MARKET FUND
STATEMENT OF NET ASSETS
JUNE 30, 1998
(UNAUDITED)
<TABLE>
<CAPTION>
Par (000) Value
---------------- ------------
<S> <C> <C>
US TREASURY OBLIGATIONS - 85.22%
US Treasury Notes
5.875%, due 08/15/98...................... $ 4,300 $ 4,302,037
6.000%, due 09/30/98...................... 5,000 5,010,938
5.875%, due 10/31/98...................... 5,500 5,507,831
------------
Total US Treasury Notes (Cost $14,820,806) 14,820,806
------------
US Treasury Bills
4.690%, due 07/02/98...................... 2,000 1,999,739
4.770%, due 07/02/98...................... 2,000 1,999,735
4.800%, due 07/02/98...................... 3,000 2,999,600
4.950%, due 08/06/98...................... 2,000 1,990,100
5.080%, due 08/27/98...................... 2,000 1,983,919
4.990%, due 10/08/98...................... 4,000 3,945,110
------------
Total US Treasury Bills (Cost $14,918,203) 14,918,203
------------
Total US Treasury Obligations (Cost $29,739,009) 29,739,009
------------
REPURCHASE AGREEMENTS - 14.56%
PNC Capital Markets Repurchase Agreement
5.50%, 07/01/98 (dated 06/30/98; proceeds
$5,080,776, collateralized by $4,955,000 US
Treasury Notes, 5.875% due 07/31/99, valued
at $5,090,892) (Cost $5,080,000)............. 5,080 5,080,000
------------
<CAPTION>
Shares
----------
<S> <C> <C>
SHORT-TERM INVESTMENT - 0.10%
Temporary Investment Fund, Inc.-
T-Fund Portfolio (Cost $33,111)........... 33,111 33,111
------------
TOTAL INVESTMENTS (COST $34,852,120*) 99.88% 34,852,120
OTHER ASSETS IN EXCESS OF LIABILITIES 0.12% 42,852
--------- ------------
Net Assets (Equivalent to $1.00 per share based
on 34,895,620 shares of capital stock outstanding) 100.00% $ 34,894,972
========= ============
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER SHARE
($34,894,972 / 34,895,620 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
STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 1998
(UNAUDITED)
<TABLE>
<CAPTION>
WEISS
TREASURY ONLY
MONEY MARKET FUND
-----------------
<S> <C>
INVESTMENT INCOME:
Interest........................................ $ 871,074
-----------
EXPENSES:
Investment Advisory fees........................ 82,934
Transfer Agent fees............................. 29,455
Registration and filing fees.................... 25,435
Administration fees............................. 25,238
Legal fees...................................... 19,135
Custodian fees.................................. 8,993
Printing........................................ 7,676
Audit fees...................................... 6,617
Insurance....................................... 4,884
Amortization of organizational costs............ 2,800
Trustees' fees.................................. 1,290
Miscellaneous................................... 264
-----------
Total Expenses............................. 214,721
Less: expenses waived and reimbursed............ (119,146)
-----------
Net Expenses............................... 95,575
-----------
Net Investment Income................................ 775,499
-----------
REALIZED LOSS ON INVESTMENTS:
Net Realized Loss on
Investment Securities........................ (648)
-----------
Net Increase in Net Assets Resulting from
Operations........................................ $ 774,851
===========
</TABLE>
See accompanying notes to financial statements.
<PAGE> 5
WEISS TREASURY FUND
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
WEISS TREASURY ONLY MONEY MARKET FUND
---------------------------------------------
January 1, 1998
through January 1, 1997
June 30, 1998 through
INCREASE (DECREASE) IN NET ASSETS FROM: (Unaudited) December 31, 1997
--------------- ------------------
<S> <C> <C>
Operations:
Net investment income..................... $ 775,499 $ 1,037,821
Net realized loss on
investment securities (648) --
--------------- ------------------
Net increase in net assets resulting from
operations............................... 774,851 1,037,821
Distributions:
From net investment income................ (775,499) (1,037,821)
Capital share transactions:
Net increase from capital share
transactions............................. 1,534,374 22,233,924
--------------- ------------------
Total increase in net assets.............. 1,533,726 22,233,924
NET ASSETS
Beginning of period........................... 33,361,246 11,127,322
--------------- ------------------
End of Period................................. $ 34,894,972 $ 33,361,246
=============== ==================
</TABLE>
See accompanying notes to financial statements.
<PAGE> 6
WEISS TREASURY FUND
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
<TABLE>
<CAPTION>
WEISS TREASURY ONLY MONEY MARKET FUND
-----------------------------------------------------------------------
January 1, 1998
through January 1, 1997 June 28, 1996*
June 30, 1998 through through
(Unaudited) December 31, 1997 December 31, 1996
------------------ ------------------ ------------------
<S> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD: $ 1.00 $ 1.00 $ 1.00
------------------ ------------------ -----------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income....................... 0.02 0.05 0.02
------------------ ------------------ -----------------
LESS DISTRIBUTIONS:
From net investment income.................. (0.02) (0.05) (0.02)
------------------ ------------------ -----------------
NET ASSET VALUE, END OF PERIOD: $ 1.00 $ 1.00 $ 1.00
================== ================== =================
TOTAL RETURN.................................... 4.70%(3) 4.71% 4.67%(3)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000)................. $34,895 $33,361 $11,127
Ratio of expenses to average net assets.........(1) 0.58%(3) 0.50% 0.50%(3)
Ratio of net investment income to average
net assets..................................(2) 4.68%(3) 4.60% 4.54%(3)
- ------------------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) The annualized expense ratios before waivers and reimbursement of expenses
for the periods ended June 30, 1998, December 31, 1997 and December 31,
1996 for Weiss Treasury Only Money Market Fund would have been 1.29%, 1.69%
and 7.69%, respectively.
(2) The annualized net investment income/(loss) ratios before waivers and
reimbursement of expenses for the periods ended June 30, 1998, December 31,
1997 and December 31, 1996 for Weiss Treasury Only Money Market Fund would
have been 3.97%, 3.41% and (2.65)%, respectively.
(3) Annualized.
* Commencement of operations.
See accompanying notes to financial statements.
<PAGE> 7
WEISS TREASURY FUND
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 1998 (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 two investment funds: Weiss Treasury Only
Money Market 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 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. As of the
date of this report, Weiss Treasury Bond Fund had not commenced operations.
2. SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies followed by Weiss
Treasury Only Money Market 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. Debt securities
held by the Fund 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 Weiss Treasury Only Money
Market Fund consists of all interest income accrued on the Fund's assets, less
accrued expenses. Interest income for the Fund is comprised of accrued interest,
original issue and market discount earned less amortization of any market
premium. The Fund's expenses are also accrued daily.
Dividends and Distributions to Shareholders: Weiss Treasury Only Money Market
Fund declares dividends daily from net investment income. The Fund intends to
pay accrued dividends on the last business day of each month. The Fund may make
an additional distribution of income and gains if necessary to satisfy a
calendar year excise tax distribution requirement.
Federal Income Taxes: The Fund is classified as a separate taxable entity for
Federal income tax purposes. The Fund 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.
<PAGE> 8
WEISS TREASURY FUND
NOTES TO FINANCIAL STATEMENTS
(CONTINUED)
Repurchase Agreements: The Fund 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 from 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 the Fund, the Manager
provides continuous advice and recommendations concerning the Fund's
investments. Weiss Treasury Only Money Market Fund has agreed to compensate the
Manager for its services by the monthly payment of a fee at the annual rate of
.50% of the Fund's average daily net assets. The Manager may from time to time
waive all or a portion of its fees payable by the Fund. 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.
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.
For the period ended June 30, 1998, the Manager of Weiss Treasury Only Money
Market Fund voluntarily waived fees totaling $82,934. In addition, the Manager
has voluntarily agreed to reimburse the Fund individually to the extent required
to maintain expenses at no more than 0.50% of the Fund's average daily net
assets. For the period ended June 30, 1998, the Manager agreed to reimburse
Weiss Treasury Only Money Market Fund $36,212. The amounts waived and reimbursed
reflect the Manager's voluntary maintenance of expenses at 0.65% of the Fund's
average daily net assets from January 1 through April 1, 1998, and 0.50%
thereafter.
<PAGE> 9
WEISS TREASURY FUND
NOTES TO FINANCIAL STATEMENTS
(CONCLUDED)
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 $500 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 an officer, trustee, or employee of the Trust
receives any compensation from the Trust.
4. NET ASSETS
At June 30, 1998, the Fund's net assets consisted of:
<TABLE>
<CAPTION>
WEISS TREASURY ONLY
MONEY MARKET FUND
-----------------
<S> <C>
Paid in capital $34,895,620
Accumulated net realized loss
on investments (648)
-----------
$34,894,972
===========
</TABLE>
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.
On June 30, 1998, one shareholder held approximately 25.9% of the outstanding
shares of Weiss Treasury Only Money Market Fund.
WEISS TREASURY ONLY MONEY MARKET FUND
Transactions in capital shares for the period ended June 30, 1998 are summarized
below.
<TABLE>
<CAPTION>
SHARES VALUE
------ -----
<S> <C> <C>
Shares sold 13,274,403 $13,274,403
Shares reinvested 732,468 732,468
Shares repurchased (12,472,497) (12,472,497)
------------- ------------
1,534,374 $ 1,534,374
============ ===========
</TABLE>
Transactions in capital shares for the year 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>
<PAGE> 10
On February 19, 1998, the Board of Trustees (the "Board") of Weiss Treasury Fund
(the "Fund") determined not to renew its contract with PricewaterhouseCoopers
LLP ("PwC") (formerly, Coopers & Lybrand L.L.P.) as the Trust's independent
accountants, instead choosing the firm of Tait, Weller & Baker to serve in that
capacity. PwC's reports on the financial statements of the Fund for the two most
recent fiscal years contained no adverse opinions, or opinions that were
qualified in any way, nor were there any disagreements with PwC during those
periods on any matter of accounting principles or practices, financial statement
disclosure, or auditing scope or procedure.
<PAGE> 11
BOARD OF TRUSTEES
John N. Breazeale
Chairman
Esther S. Gordon
Robert L. Lehrer
Martin D. Weiss
Donald Wilk
OFFICERS
John N. Breazeale
President
David D. Marky
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.
[THE WEISS TREASURY FUNDS LOGO]
TREASURY ONLY MONEY MARKET FUND
TREASURY BOND FUND
SEMI-ANNUAL REPORT TO SHAREHOLDERS
JUNE 30, 1998
