<PAGE> 1
BOARD OF TRUSTEES ADMINISTRATOR
John N. Breazeale PFPC Inc.
Chairman 103 Bellevue Pkwy.
Esther S. Gordon Wilmington, DE 19809
Robert Z. Lehrer
Martin D. Weiss DISTRIBUTOR
Donald Wilk Weiss Funds, Inc.
4176 Burns Road
OFFICERS Palm Beach Gardens, FL 33410
John N. Breazeale
President TRANSFER AGENT
David D. Marky PFPC Inc.
Treasurer 400 Bellevue Pkwy.
Sharon A. Parker Wilmington, DE 19809
Secretary
INVESTMENT MANAGER
Weiss Money Management, Inc. This report and the financial
4176 Burns Road statements contained herein are
Palm Beach Gardens, FL 33410 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, 1999
<PAGE> 2
WEISS TREASURY ONLY MONEY MARKET FUND
STATEMENT OF NET ASSETS
JUNE 30, 1999
(UNAUDITED)
<TABLE>
<CAPTION>
Par (000) Value
----------- -----------
<S> <C> <C>
U.S. TREASURY OBLIGATIONS - 87.64%
U.S. Treasury Notes - 22.11%
6.875%, due 07/31/99 ........................................... $ 5,000 $ 5,008,509
5.750%, due 09/30/99 ........................................... 5,000 5,012,265
5.625%, due 10/31/99 ........................................... 10,000 10,031,771
-----------
Total U.S. Treasury Notes (Cost $20,052,545) ......................... 20,052,545
-----------
U.S. Treasury Bills - 65.53%
4.220%, due 07/01/99 ........................................... 10,000 10,000,000
4.291%, due 07/22/99 ........................................... 5,000 4,987,473
4.500%, due 09/02/99 ........................................... 15,000 14,881,875
4.550%, due 09/16/99 ........................................... 10,000 9,902,681
4.570%, due 11/12/99 ........................................... 10,000 9,829,894
4.760%, due 11/18/99 ........................................... 10,000 9,814,889
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Total U.S. Treasury Bills (Cost $59,416,812) ......................... 59,416,812
-----------
Total U.S. Treasury Obligations (Cost $79,469,357) ................... 79,469,357
-----------
REPURCHASE AGREEMENTS - 12.02%
PNC Capital Markets Repurchase Agreement
4.35%, 07/01/99 (dated 06/30/99; proceeds $4,000,483,
collateralized by $3,960,000 U.S. Treasury Notes,
5.125% due 08/31/00, valued at $4,015,526) (Cost $4,000,000) ......... 4,000 4,000,000
Fidelity Repurchase Agreement
4.850%, 07/01/99 (dated 06/30/99; proceeds $6,902,930,
collateralized by $7,000,000 U.S. Treasury Notes,
5.750% due 10/31/02, valued at $7,091,875) (Cost $6,902,000) ......... 6,902 6,902,000
-----------
Total Repurchase Agreements (Cost $10,902,000) ....................... 10,902,000
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TOTAL INVESTMENTS (COST $90,371,357*) ........................................ 99.66% 90,371,357
OTHER ASSETS IN EXCESS OF LIABILITIES ........................................ 0.34% 308,113
----------- -----------
Net Assets (Equivalent to $1.00 per share based
on 90,680,118 shares of beneficial interest outstanding) ............. 100.00% $90,679,470
=========== ===========
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER SHARE
($90,679,470/90,680,118 shares of beneficial interest outstanding) ... $ 1.00
===========
</TABLE>
* Aggregate cost for federal income tax purposes is substantially the same.
See accompanying notes to financial statements.
<PAGE> 3
WEISS TREASURY ONLY MONEY MARKET FUND
STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 1999
(UNAUDITED)
<TABLE>
<S> <C>
INVESTMENT INCOME:
Interest ............................. $ 1,771,552
-----------
EXPENSES:
Investment Advisory fees ............. 193,253
Transfer Agent fees .................. 47,715
Registration and filing fees ......... 18,240
Administration fees .................. 30,754
Legal fees ........................... 25,640
Custodian fees ....................... 9,168
Printing ............................. 7,917
Audit fees ........................... 5,470
Insurance ............................ 7,400
Amortization of organizational costs.. 3,813
Trustees' fees ....................... 1,632
-----------
Total Expenses ............... 351,002
Less: expenses waived and reimbursed.. (157,739)
-----------
Net Expenses ................. 193,263
-----------
Net Investment Income ......................... $ 1,578,289
-----------
</TABLE>
See accompanying notes to financial statements.
<PAGE> 4
WEISS TREASURY ONLY MONEY MARKET FUND
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
For the
six months ended
June 30, 1999 For the year ended
(Unaudited) December 31, 1998
----------- -----------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS FROM:
Operations:
Net investment income ................... $ 1,578,289 $ 1,982,500
Net realized (loss) on
investment securities ................ -- (648)
------------ ------------
Net increase in net assets resulting from
operations ........................... 1,578,289 1,981,852
Distributions:
From net investment income .............. (1,578,289) (1,982,500)
Capital share transactions:
Net increase from capital share
transactions ......................... 21,630,315 35,688,557
------------ ------------
Total increase in net assets ............ 21,630,315 35,687,909
NET ASSETS
Beginning of period ........................... 69,049,155 33,361,246
------------ ------------
End of period ................................. $ 90,679,470 $ 69,049,155
============ ============
</TABLE>
See accompanying notes to financial statements.
<PAGE> 5
WEISS TREASURY ONLY MONEY MARKET FUND
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
<TABLE>
<CAPTION>
For the
six months ended For the year ended December 31, For the
June 30, 1999 ------------------------------- period ended
(Unaudited) 1998 1997 December 31, 1996*
---------------- ------------- -------------- -----------------
<S> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD: $ 1.00 $ 1.00 $ 1.00 $ 1.00
------- ------- ------- -------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income................................ 0.02 0.05 0.05 0.02
------- ------- ------- -------
LESS DISTRIBUTIONS:
From net investment income........................... (0.02) (0.05) (0.05) (0.02)
------- ------- ------- -------
NET ASSET VALUE, END OF PERIOD: $ 1.00 $ 1.00 $ 1.00 $ 1.00
======= ======= ======= =======
TOTAL RETURN.............................................. 4.18% 4.67% 4.71% 4.67% (3)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000)........................... $90,679 $69,049 $33,361 $11,127
Ratio of expenses to average net assets (1)............... 0.50% (3) 0.53% 0.50% 0.50% (3)
Ratio of net investment income to average net assets (2).. 4.08% (3) 4.55% 4.60% 4.54% (3)
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</TABLE>
(1) The annualized expense ratios before waivers and reimbursement of expenses
for the periods ended June 30, 1999, December 31, 1998, December 31, 1997
and December 31, 1996 would have been 0.91%, 1.14%, 1.69%, and 7.69%,
respectively.
(2) The annualized net investment income ratios before waivers and
reimbursement of expenses for the periods ended June 30, 1999, December 31,
1998, December 31, 1997 and December 31, 1996 would have been 3.67%, 3.94%,
3.41% and (2.65)%, respectively.
(3) Annualized.
* Commencement of operations: June 28, 1996.
See accompanying notes to financial statements.
<PAGE> 6
WEISS TREASURY ONLY MONEY MARKET FUND
NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1999 (UNAUDITED)
1. FUND ORGANIZATION
The Weiss Fund (formerly 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 funds: Weiss Treasury
Only Money Market Fund (the "Fund") and Weiss Millennium Opportunity Fund. As of
the date of this report, Weiss Millennium Opportunity Fund had not commenced
operations. The Board of Trustees of the Trust oversees the business affairs of
the Trust and is responsible for significant decisions relating to the Fund's
investment objective and policies. The Trustees delegate the day-to-day
management of the Fund to the officers of the Trust.
2. SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies followed by the
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 the 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 the 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: The 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> 7
WEISS TREASURY ONLY MONEY MARKET FUND
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
(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 Fund. Under an investment advisory agreement 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
0.50% 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.
For the period ended June 30, 1999, the Fund's Manager agreed to waive fees and
reimburse expenses to the extent required to maintain the Fund's total operating
expenses (exclusive of certain specified items) at no more than 0.50% of its
average daily net assets. During that period, the Manager waived fees totaling
$157,739. There was no reimbursement from the Manager to the Fund during that
period.
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.
PFPC Trust Company serves as the Custodian for the Fund's portfolio securities
and cash.
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 expenses for
<PAGE> 8
WEISS TREASURY ONLY MONEY MARKET FUND
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
(CONCLUDED)
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 June 30, 1999, the Fund's net assets consisted of:
<TABLE>
<S> <C>
Paid in capital $90,680,118
Accumulated net realized loss on investments (648)
-----------
$90,679,470
===========
</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.
Transactions in shares of beneficial interest for the period ended June 30, 1999
are summarized below.
<TABLE>
<CAPTION>
Shares Value
----------- ------------
<S> <C> <C>
Shares sold 37,635,387 $ 37,635,387
Shares reinvested 1,499,643 1,499,643
Shares repurchased (17,504,715) (17,504,715)
----------- ------------
21,630,315 $ 21,630,315
=========== ============
</TABLE>
Transactions in shares of beneficial interest for the year ended December 31,
1998 are summarized below.
<TABLE>
<CAPTION>
Shares Value
----------- ------------
<S> <C> <C>
Shares sold 58,510,318 $ 58,510,318
Shares reinvested 2,023,288 2,023,288
Shares repurchased (24,845,049) (24,845,049)
----------- ------------
35,688,557 $ 35,688,557
=========== ============
</TABLE>
6. CAPITAL LOSS CARRYFORWARDS
The Fund has a capital loss carryforward of $648 from prior year, which expires
in the year 2006.
