<PAGE> 1
THE WEISS FUND
August 12, 1999
A LETTER FROM THE PRESIDENT
Dear Shareholder,
It is with pleasure that I present the Semi-Annual Report for the six
months ended June 30, 2000 for The Weiss Fund, consisting of Weiss Treasury Only
Money Market Fund and Weiss Millennium Opportunity Fund.
The first half of the new millennium proved to be a roller-coaster ride for
the financial markets, as the first quarter saw new all-time highs for the Dow
Jones Industrial Average, the S&P 500 Index, and the NASDAQ Composite. The highs
proved short lived, however, as swift corrections in the second quarter pushed
the Dow Jones Industrial Average down 9.13%, the NASDAQ Composite down 2.53%,
and the S&P down 1.00%, year to date. As a result, the S&P and the NASDAQ
Composite finished out the first half of the year near where they began.
This market volatility in the first half of 2000 kept Weiss Millennium
Opportunity Fund actively invested in both sides of the financial markets. Sharp
reversals in market trends have challenged us to stay on top of the changes and,
while performance is not out of line with similar types of investments, this
volatility has caused the Fund's overall returns to lag behind the market. In
fact, the last 18 months of market volatility has affected even normally
slow-moving trends, causing losses in trend-following investments such as Weiss
Millennium Opportunity Fund. We adjusted to this volatility with a more
conservative reaction to our indicators, compensating for the market's tendency
toward quick reversals. This adjustment has kept the Fund from being whipsawed
and, at the same time, allowed the Fund to be invested in what we believe are
the strongest trends. This is important, as trends that last 30 days or longer
are where, in our opinion, the Fund has potential to benefit the most.
With respect to Weiss Treasury Only Money Market Fund, we have seen the
Fund's yield rise as interest rates moved to 6.2% by the end of the quarter.
Should the Fed's fight against inflation continue, we would expect to see the
yield continue higher. There is no guarantee that interest rates will continue
to climb, and under severe market conditions, could even move lower, reducing
the overall yield on the Fund.
Should you have any questions about either Weiss Treasury Only Money Market
Fund or Weiss Millennium Opportunity Fund, please call upon a Fund
representative at 800-430-9617.
Sincerely,
[/s/ JOHN N. BREAZEALE]
John N. Breazeale
President & Chairman
<PAGE> 2
2000 Semi-Annual Portfolio Management Review
Market volatility continued to be the theme in the first six months of
2000. This volatility has been a primary influence in the portfolio management
of The Weiss Fund (the "Trust"), which consists of Weiss Treasury Only Money
Market Fund and Weiss Millennium Opportunity Fund.
With respect to Weiss Treasury Only Money Market Fund, inflationary worries
have combined with a highly volatile stock market to push T-bill rates higher.
We were able to take advantage of this rising interest rate environment, rolling
funds into Treasuries with higher yields as rates continued to climb. For the
six months ended June 30, 2000, the Fund's 7-day yield was 5.63%. Remember that
rates do not go only one way, and that a stock market correction could send
rates lower. We will continue to monitor rates and adjust the Fund's average
maturity as necessary.
In early January, the Weiss Millennium Opportunity Fund held long positions
in the semiconductor and biotech sectors. However, rapid market moves later in
the month placed us on the defensive, and by February, as the patterns reversed
and our signals indicated weakness across the board, we initiated short
positions in the retail, bank, and biotechnology sectors. Stock market activity
in March brought about another trend reversal, as our indicators pointed to
strength in technology sectors. By early April, our models pointed to a grossly
overbought stock market, especially in the "tech-heavy" NASDAQ Composite. We
steered clear of technology, investing instead in long positions in "old
economy" sector stocks that showed short-term, relative strength and taking
short positions in those sector stocks that showed overall weakness. To
accomplish this, the Fund initiated long positions in the bank and airline
sectors and went short the stocks of telecommunications and broker-dealers. This
proved to be a successful mix in the early part of April as the NASDAQ Composite
dropped 21% of its value, bringing down a flood of aggressive-growth technology
funds in its wake. Our mixed long/short strategy held Fund losses at only 1%
during the same time frame.
In the second quarter, a steep drop in the financial markets in April gave
way to a quick bounce to the upside in late May, which was concentrated mainly
in the tech sector. This quick trend reversal caught the Fund still short in the
technology positions that had proved so valuable just a short time earlier. As a
result of this reversal, the Fund was forced to cover its short positions and
create modest losses.
The volatile but directionless market created a difficult environment for
investors. While the Fund's net asset value did well in May, share prices were
hurt by the market reversal that came as a reaction to the tech wreck. While we
are not pleased with the 7.23% drop in asset value for the quarter, we feel that
the Fund's investment strategy has the potential to produce good results over
time.
1
<PAGE> 3
THE WEISS FUND
WEISS TREASURY ONLY MONEY MARKET FUND
STATEMENT OF NET ASSETS, JUNE 30, 2000
(UNAUDITED)
<TABLE>
<CAPTION>
DESCRIPTION AND PERCENTAGE OF PORTFOLIO PAR (000) VALUE
--------------------------------------- --------- ------------
<S> <C> <C> <C>
U.S. TREASURY OBLIGATIONS -- 85.8%
U.S. Treasury Notes -- 27.1%
5.750%, due 10/31/00................................... $10,000 $ 9,973,004
5.250%, due 01/31/01................................... 10,000 9,923,185
5.625%, due 02/28/01................................... 10,000 9,948,321
------------
29,844,510
------------
U.S. Treasury Bills -- 58.7%
5.110%, due 07/06/00................................... 15,000 14,989,354
5.580%, due 07/06/00................................... 10,000 9,992,250
5.550%, due 08/17/00................................... 10,000 9,927,542
5.820%, due 08/24/00................................... 10,000 9,912,700
5.880%, due 09/14/00................................... 5,000 4,938,750
5.700%, due 10/05/00................................... 10,000 9,848,000
5.900%, due 10/12/00................................... 5,000 4,915,597
------------
64,524,193
------------
TOTAL U.S. TREASURY OBLIGATIONS (COST $94,368,703).......... 94,368,703
------------
REPURCHASE AGREEMENT -- 14.2%
PNC Capital Markets Repurchase Agreement 6.42%, due
07/03/00 (dated 06/30/00; proceeds $15,578,330,
collateralized by $14,829,000 U.S. Treasury Notes,
6.625% due 05/15/07, valued at $15,693,253) (Cost
$15,570,000)........................................... 15,570 15,570,000
------------
<CAPTION>
SHARES
---------
<S> <C> <C> <C>
SHORT-TERM INVESTMENT -- 0.0%
Provident Institutional Funds -- T-Fund (Cost $9,096)..... 9,096 9,096
------------
TOTAL INVESTMENTS -- 100.0% (COST $109,947,799*)............ 109,947,799
LIABILITIES IN EXCESS OF OTHER ASSETS -- (0.0)%............. (28,593)
------------
NET ASSETS -- 100.0% (Equivalent to $1.00 per share based on
109,919,854 shares of capital stock outstanding).......... $109,919,206
============
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE
($109,919,206 / 109,919,854 shares outstanding)........... $ 1.00
============
</TABLE>
------------
* Aggregate cost for federal income tax purposes is substantially the same.
See accompanying notes to financial statements.
2
<PAGE> 4
THE WEISS FUND
WEISS MILLENNIUM OPPORTUNITY FUND
STATEMENT OF NET ASSETS, JUNE 30, 2000 (CONTINUED)
(UNAUDITED)
<TABLE>
<CAPTION>
DESCRIPTION AND PERCENTAGE OF PORTFOLIO SHARES VALUE
--------------------------------------- --------- -----------
<S> <C> <C>
COMMON STOCK -- 47.1%
Aerospace & Defense -- 0.9%
Boeing Co. ............................................ 4,000 $ 167,250
-----------
Communications -- 2.8%
AT&T Corp. ............................................ 3,000 94,875
Motorola, Inc. ........................................ 5,300 154,031
*Performance Technologies, Inc. ....................... 10,000 85,000
*WorldCom, Inc. ....................................... 4,000 183,500
-----------
517,406
-----------
Computers -- Internet Services & Software -- 1.0%
*Go.Com................................................ 5,000 59,687
*Microsoft Corp. ...................................... 1,500 120,000
-----------
179,687
-----------
Drugs and Healthcare -- 21.3%
*Amgen, Inc. .......................................... 2,500 175,625
*Bio-Technology General Corp. ......................... 12,900 170,119
*Biogen, Inc. ......................................... 3,300 212,850
*Cephalon, Inc. ....................................... 3,000 179,625
*Chiron Corp. ......................................... 4,200 199,500
*Chromatics Color Sciences International, Inc. ........ 15,000 73,125
*Cor Therapeutics, Inc. ............................... 2,300 196,219
*Genzyme Corp. ........................................ 3,300 196,144
*Gilead Sciences, Inc. ................................ 3,000 213,375
*Human Genome Sciences, Inc. .......................... 1,500 200,063
*IDEC Pharmaceutical Corp. ............................ 1,900 222,894
*Immunex Corp. ........................................ 5,500 271,906
Johnson & Johnson...................................... 1,800 183,375
*Medimmune, Inc. ...................................... 3,000 222,000
*Millennium Pharmaceuticals, Inc. ..................... 1,600 179,000
*Organogenesis, Inc. .................................. 16,400 187,575
*PE Corp. -- Celera Genomics Group..................... 1,700 158,950
Pfizer, Inc. .......................................... 5,000 240,000
*Protein Design Labs, Inc. ............................ 1,200 197,944
*Vertex Pharmaceuticals, Inc. ......................... 2,100 221,288
-----------
3,901,577
-----------
</TABLE>
3
<PAGE> 5
THE WEISS FUND
WEISS MILLENNIUM OPPORTUNITY FUND
STATEMENT OF NET ASSETS, JUNE 30, 2000 (CONTINUED)
(UNAUDITED)
<TABLE>
<CAPTION>
DESCRIPTION AND PERCENTAGE OF PORTFOLIO SHARES VALUE
--------------------------------------- --------- -----------
COMMON STOCK (CONTINUED)
<S> <C> <C>
Electronics -- 17.1%
*Advanced Micro Devices, Inc. ......................... 2,200 $ 169,950
*Altera Corp. ......................................... 1,800 183,488
*Applied Materials, Inc. .............................. 2,000 181,250
*Cypress Semiconductor Corp. .......................... 5,000 211,250
Intel Corp. ........................................... 1,500 200,531
*Irvine Sensors Corp. ................................. 40,000 170,000
*KLA-Tenor Corp. ...................................... 3,400 199,113
*Lattice Semiconductor Corp. .......................... 2,400 165,900
Linear Technology Corp. ............................... 2,700 172,631
*LSI Logic Corp. ...................................... 3,000 162,375
*Micron Technology, Inc. .............................. 2,400 211,350
*National Semiconductor Corp. ......................... 3,000 170,250
*Novellus Systems, Inc. ............................... 3,400 192,312
*Rambus, Inc. ......................................... 2,200 226,600
*Teradyne, Inc. ....................................... 2,300 169,050
Texas Instruments, Inc. ............................... 2,300 157,981
*Xilinx, Inc. ......................................... 2,200 181,637
-----------
3,125,668
-----------
Energy and Raw Materials -- 1.1%
Williams Cos., Inc. ................................... 5,000 208,437
-----------
Entertainment -- 1.1%
*Walt Disney Co. ...................................... 4,700 182,419
-----------
Freight and Shipping -- 0.8%
*FedEx Corp. .......................................... 4,000 152,000
-----------
Tobacco -- 1.0%
Philip Morris Cos, Inc. ............................... 6,750 179,297
-----------
Total Common Stock (Cost $8,238,605) 8,613,741
-----------
</TABLE>
4
<PAGE> 6
THE WEISS FUND
WEISS MILLENNIUM OPPORTUNITY FUND
STATEMENT OF NET ASSETS, JUNE 30, 2000 (CONTINUED)
(UNAUDITED)
<TABLE>
<CAPTION>
DESCRIPTION AND PERCENTAGE OF PORTFOLIO PAR (000) VALUE
--------------------------------------- --------- -----------
<S> <C> <C>
U.S. TREASURY OBLIGATIONS -- 38.1%
U.S. Treasury Note -- 6.0%
7.250%, due 05/15/16................................... $1,000 $ 1,100,313
-----------
U.S. Treasury Bills -- 32.1%
5.900%, due 10/12/00................................... 5,000 4,919,340
5.870%, due 05/31/01................................... 1,000 947,064
-----------
5,866,404
-----------
TOTAL U.S. TREASURY OBLIGATIONS (COST $6,964,560)........... 6,966,717
-----------
REPURCHASE AGREEMENT -- 15.8%
PNC Capital Markets Repurchase Agreement 5.85%, due
07/03/00 (dated 06/30/00; proceeds $2,891,409,
collateralized by $2,753,000 U.S. Treasury Notes,
6.625% due 05/15/07, valued at $2,913,448) (Cost
$2,890,000)............................................ 2,890 2,890,000
-----------
<CAPTION>
SHARES
---------
<S> <C> <C>
SHORT-TERM INVESTMENT -- 0.0%
Provident Institutional Funds -- T-Fund Portfolio (Cost
$5,422)................................................ 5,422 5,422
-----------
</TABLE>
<TABLE>
<S> <C>
TOTAL INVESTMENTS -- 101.0% (COST $18,098,587).............. 18,475,880
LIABILITIES IN EXCESS OF OTHER ASSETS -- (1.0)%
Receivable from Brokers for Securities Sold Short......... 2,162,887
Other Assets.............................................. 44,021
Payable for Fund Shares Redeemed.......................... (22,385)
Net Amounts due to Investment Manager..................... (61,583)
Securities Sold Short, at Value (proceeds $2,173,277)..... (2,258,875)
Other Liabilities......................................... (33,397)
-----------
(169,332)
-----------
NET ASSETS -- 100% (APPLICABLE TO 1,933,730 CLASS A SHARES
AND 21,482 CLASS S SHARES, $.01 PAR VALUE PER SHARE,
ISSUED AND OUTSTANDING)................................... $18,306,548
===========
</TABLE>
5
<PAGE> 7
THE WEISS FUND
WEISS MILLENNIUM OPPORTUNITY FUND
STATEMENT OF NET ASSETS, JUNE 30, 2000 (CONCLUDED)
(UNAUDITED)
<TABLE>
<CAPTION>
VALUE
-----------
<S> <C>
NET ASSET VALUE AND REDEMPTION PRICE PER CLASS A SHARE
($18,105,575 / 1,933,730)................................. $ 9.36
===========
MAXIMUM OFFERING PRICE PER CLASS A SHARE ($9.36 / 0.985).... $ 9.50
===========
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER CLASS S
SHARE ($200,973 / 21,482)................................. $ 9.36
===========
</TABLE>
------------
* Non-Income producing security.
See accompanying notes to financial statements.
6
<PAGE> 8
THE WEISS FUND
WEISS MILLENNIUM OPPORTUNITY FUND
SCHEDULE OF SECURITIES SOLD SHORT, JUNE 30, 2000
(UNAUDITED)
<TABLE>
<CAPTION>
NAME OF ISSUER SHARES VALUE
-------------- ------ ----------
<S> <C> <C>
COMMON STOCKS
Amazon.com, Inc. ...................................... 1,300 $ 47,206
America Online, Inc. .................................. 1,300 68,575
At Home Corporation, Class A .......................... 3,400 70,550
Bed, Bath & Beyond, Inc. .............................. 5,000 181,250
BroadVision, Inc. ..................................... 1,700 86,381
Chase Manhattan Corp. ................................. 3,750 172,734
Check Point Software Technologies, Ltd. ............... 400 84,700
Citigroup, Inc. ....................................... 3,000 180,750
CMG Information ....................................... 1,200 54,975
Dell Computer, Inc. ................................... 2,000 98,625
Dollar General Corp. .................................. 525 10,238
EarthLink, Inc. ....................................... 3,600 55,575
Ebay, Inc. ............................................ 2,000 108,625
Egghead.Com ........................................... 12,800 37,600
Fluor Corp. ........................................... 3,000 94,875
Inktomi Corp. ......................................... 600 70,950
Maverick Tube Corp. ................................... 3,500 101,938
MBNA Corp. ............................................ 6,000 162,750
Nasdaq-100 Shares ..................................... 2,000 186,375
Network Associates, Inc. .............................. 3,000 61,125
Nortel Networks Corp. Holding Co. ..................... 1 53
Open Market, Inc. ..................................... 5,400 74,588
RealNetworks, Inc. .................................... 1,800 91,013
RSA Security, Inc. .................................... 1,200 83,099
Yahoo! Inc. ........................................... 600 74,325
----------
TOTAL SECURITIES SOLD SHORT (PROCEEDS $2,173,277)........... $2,258,875
----------
</TABLE>
See accompanying notes to financial statements.
7
<PAGE> 9
THE WEISS FUND
STATEMENT OF OPERATIONS
FOR THE PERIOD ENDED JUNE 30, 2000
(UNAUDITED)
<TABLE>
<CAPTION>
WEISS WEISS
TREASURY ONLY MILLENNIUM
MONEY MARKET FUND OPPORTUNITY FUND
----------------- ----------------
<S> <C> <C>
INVESTMENT INCOME:
Dividends................................................ $ -- $ 19,746
Interest................................................. 3,229,593 360,414
---------- -----------
Total Investment Income............................... 3,229,593 380,160
---------- -----------
EXPENSES:
Investment Advisory fees................................. 282,471 136,411
Administration fees...................................... 52,125 51,451
Transfer Agent fees...................................... 61,168 55,795
Registration and filing fees............................. 27,221 30,827
Legal fees............................................... 35,878 5,123
Custodian fees........................................... 9,878 16,482
Printing................................................. 4,339 18,734
Audit fees............................................... 10,264 1,570
Insurance................................................ 4,277 544
Amortization of organizational costs..................... 3,913 --
Offering costs........................................... -- 18,668
Trustees' fees........................................... 5,218 711
Miscellaneous............................................ 1,754 1,106
Margin interest expenses................................. -- 8,105
Dividend expenses........................................ -- 200,769
---------- -----------
498,506 546,296
Less: expenses waived and reimbursed..................... (215,391) (109,837)
---------- -----------
Total expenses........................................ 283,115 436,459
---------- -----------
Net investment income (loss).......................... 2,946,478 (56,299)
---------- -----------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized loss on investment securities............... -- (1,313,658)
Net change in unrealized appreciation (depreciation) of
investment securities................................. -- (201,191)
---------- -----------
Net realized and unrealized loss on investments.......... -- (1,514,849)
---------- -----------
Net increase (decrease) in net assets resulting from
operations............................................... $2,946,478 $(1,571,148)
========== ===========
</TABLE>
See accompanying notes to financial statements.
8
<PAGE> 10
THE WEISS FUND
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
WEISS TREASURY ONLY MONEY MARKET FUND
-----------------------------------------
FOR THE PERIOD ENDED FOR THE
JUNE 30, 2000 YEAR ENDED
(UNAUDITED) DECEMBER 31, 1999
-------------------- -----------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS FROM:
Operations:
Net investment income................................ $ 2,946,478 $ 3,892,387
Net realized gain on investment securities........... -- --
Net change in unrealized appreciation on investment
securities......................................... -- --
------------ ------------
Net increase in net assets resulting from
operations......................................... 2,946,478 3,892,387
Distributions:
From net investment income ($.03 and $.04 per share,
respectively)...................................... (2,946,478) (3,892,387)
Capital share transactions:
Net increase (decrease) from capital share
transactions....................................... (9,010,335) 49,880,386
------------ ------------
Total increase (decrease) in net assets.............. (9,010,335) 49,880,386
NET ASSETS
Beginning of period..................................... 118,929,541 69,049,155
------------ ------------
End of Period........................................... $109,919,206 $118,929,541
============ ============
</TABLE>
See accompanying notes to financial statements.
9
<PAGE> 11
THE WEISS FUND
STATEMENT OF CHANGES IN NET ASSETS (CONTINUED)
<TABLE>
<CAPTION>
WEISS MILLENNIUM OPPORTUNITY FUND
--------------------------------------------
FOR THE PERIOD ENDED
JUNE 30, 2000 FOR THE PERIOD ENDED
(UNAUDITED) DECEMBER 31, 1999*
-------------------- --------------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS FROM:
Operations:
Net investment income (loss)........................ $ (56,299) $ 24,209
Net realized loss on investment securities.......... (1,313,658) (189,516)
Net change in unrealized appreciation on investment
securities........................................ (201,191) 492,886
----------- -----------
Net increase (decrease) in net assets resulting from
operations........................................ (1,571,148) 327,579
Distributions:
From net investment income ($.00 and $.01 per share,
respectively)..................................... -- (22,278)
Capital share transactions:
Net increase from capital share transactions........ 3,111,081 16,461,304
----------- -----------
Total increase in net assets........................ 1,539,933 16,766,605
NET ASSETS
Beginning of period.................................... 16,766,615 10
----------- -----------
End of Period (including undistributed net investment
income of ($54,368) and $1,931, respectively)....... $18,306,548 $16,766,615
=========== ===========
</TABLE>
------------
* Commencement of operations was September 21, 1999.
See accompanying notes to financial statements.
10
<PAGE> 12
THE WEISS FUND
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
<TABLE>
<CAPTION>
WEISS TREASURY ONLY MONEY MARKET FUND
-------------------------------------------------------------------------------
FOR THE PERIOD ENDED FOR THE YEAR ENDED DECEMBER 31,
JUNE 30, 2000 --------------------------------- FOR THE PERIOD ENDED
(UNAUDITED) 1999 1998 1997 DECEMBER 31, 1996*
-------------------- --------- -------- -------- --------------------
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD: $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
-------- -------- ------- ------- -------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income.............. 0.03 0.04 0.05 0.05 0.02
Net realized and unrealized gain on
investments...................... -- -- -- -- --
-------- -------- ------- ------- -------
Net investment income.............. 0.03 0.04 0.05 0.05 0.02
-------- -------- ------- ------- -------
LESS DISTRIBUTIONS:
From net investment income......... (0.03) (0.04) (0.05) (0.05) (0.02)
-------- -------- ------- ------- -------
NET ASSET VALUE, END OF PERIOD: $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======== ======== ======= ======= =======
TOTAL RETURN......................... 2.62% 4.35% 4.67% 4.71% 4.67%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000)...... $109,919 $118,930 $69,049 $33,361 $11,127
Ratio of expenses to average net
assets(1).......................... 0.50%(3) 0.50% 0.53% 0.50% 0.50%(3)
Ratio of net investment income to
average net assets(2).............. 5.22%(3) 4.24% 4.55% 4.60% 4.54%(3)
Portfolio turnover................... NA NA NA NA NA
</TABLE>
------------
(1) Annualized expense ratios before waivers and reimbursement of expenses for
the period ended June 30, 2000, and the years ended 1999, 1998, 1997, and
1996 would have been 0.88%, 0.92%, 1.14%, 1.69%, and 7.69%, respectively.
(2) Annualized net investment income ratios before waivers and reimbursement of
expenses for the period ended June 30, 2000, and the years ended 1999, 1998,
1997, and 1996 would have been 4.84%, 3.82%, 3.94%, 3.41%, and (2.65)%,
respectively.
(3) Annualized.
* Commencement of operations was June 28, 1996.
See accompanying notes to financial statements.
11
<PAGE> 13
THE WEISS FUND
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD (CONTINUED)
<TABLE>
<CAPTION>
WEISS MILLENNIUM OPPORTUNITY FUND*
----------------------------------------------------------
FOR THE PERIOD ENDED JUNE 30, 2000
---------------------------------- FOR THE
CLASS A SHARES CLASS S SHARES PERIOD ENDED
(UNAUDITED) (UNAUDITED) DECEMBER 31, 1999(4)
--------------- --------------- --------------------
<S> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD: $ 10.19 $10.19 $ 10.00
------- ------ -------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss).......................... (0.03) (0.03) 0.01
Net realized and unrealized gain (loss) on
investments......................................... (0.80) (0.80) 0.19
------- ------ -------
Net investment income (loss).......................... (0.83) (0.83) 0.20
------- ------ -------
LESS DISTRIBUTIONS:
From net investment income............................ 0.00 0.00 (0.01)
------- ------ -------
NET ASSET VALUE, END OF PERIOD: $ 9.36 $ 9.36 $ 10.19
======= ====== =======
TOTAL RETURN............................................ (8.15)% (8.15)% 2.04%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000)......................... $18,106 $ 201 $16,767
Ratio of expenses to average net assets(1).............. 4.80%(3) 5.05%(3) 2.55%(3)
Ratio of net investment income (loss) to average net
assets(2)............................................. (0.62)%(3) (0.87)%(3) 1.24%(3)
Portfolio turnover...................................... 177.1% 177.1% 82.0%
</TABLE>
------------
(1) Annualized expense ratios before waivers and reimbursement of expenses for
the periods ended June 30, 2000 and December 31, 1999 would have been 6.01%
(Class A), 6.26% (Class S), and 6.27%, respectively, which included the
margin and dividend expenses. Without the margin and dividend expenses, the
ratios would have been 3.71% (Class A), 3.96% (Class S), and 6.22%,
respectively. Annualized expense ratios after waivers and reimbursement of
expenses for the periods ended June 30, 2000 and December 31, 1999,
excluding the margin and dividend expenses, would have been 2.50% (Class A),
2.75% (Class S), and 2.50%, respectively.
(2) Annualized net investment income ratio before waivers and reimbursement and
exclusive of margin and dividend expenses for the periods ended June 30,
2000 and December 31, 1999 would have been 0.47% (Class A), 0.22% (Class S),
and (2.42)%, respectively.
(3) Annualized.
(4) For the period ended December 31, 1999, Class S shares of Weiss Millennium
Opportunity Fund had nominal activities thus the financial highlights for
that class are combined with those of Class A shares.
* Commencement of operations was September 21, 1999.
See accompanying notes to financial statements.
12
<PAGE> 14
THE WEISS FUND
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2000
(UNAUDITED)
1. FUND ORGANIZATION
The Weiss Fund (formerly known as 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 and Weiss Millennium Opportunity
Fund (formerly designated as Weiss Treasury Bond Fund) (individually, a "Fund",
and collectively, the "Funds"). The Funds commenced operations on the following
dates:
Weiss Treasury Only Money Market Fund
June 28, 1996
Weiss Millennium Opportunity Fund
September 21, 1999
The Board of Trustees of the Trust oversees the business affairs of the Trust
and is responsible for significant decisions relating to the Funds' investment
objectives and policies. The Trustees delegate the day-to-day management of the
Funds to the officers of the Trust.
Prior to commencement of operations, Weiss Millennium Opportunity Fund had been
limited to organizational matters. In addition, Weiss Money Management, Inc.
(the "Manager") had redeemed its 3,333 shares of beneficial interest from the
Weiss Treasury Bond Fund and purchased 1 share of beneficial interest of each of
Class A and Class S of Weiss Millennium Opportunity Fund.
2. SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies followed by each
Fund in the 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: Investments in securities traded on a national securities
exchange or on the NASDAQ National Market System are valued at the last reported
sale price on the securities exchange in which the securities are traded as of
the close of business on the day the securities are being valued. Lacking any
sales, the securities are valued at the calculated mean between the most recent
bid quotation and the most recent asked quotation (the "Calculated Mean") on
such exchange. An exchange traded option or futures contract and other financial
instruments are valued at the last reported sale price prior to 4:00 p.m.
(Eastern Time) as quoted on the principal exchange or board of trade on which
such option or contract is traded. Lacking any sales, the option or futures
contract is valued at the Calculated Mean. Debt securities, other than
short-term securities, are valued at bid prices supplied by the Funds' pricing
agent(s) which reflect broker/dealer supplied valuations and electronic data
processing techniques. Short-term securities having maturities of less than
sixty days 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.
13
<PAGE> 15
THE WEISS FUND
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
(UNAUDITED)
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. Interest income, including the accretion of discount
and amortization of premium, is accrued daily. Dividend income is recognized on
the ex-dividend date. Each Fund's expenses are also accrued daily. Net
investment income for each Fund consists of all interest income accrued and
dividend income recognized on the Funds' assets, less accrued expenses.
Dividends and Distributions to Shareholders: Dividends from Weiss Treasury Only
Money Market Fund's net investment income are declared daily and paid monthly.
Weiss Treasury Only Money Market Fund intends to pay accrued dividends on the
last business day of each month. Dividends from Weiss Millennium Opportunity
Fund's net investment income are declared and paid annually. Each Fund may make
an additional distribution of income and gains if necessary to satisfy a
calendar year excise tax distribution requirement. Distributions are recorded by
the Funds on the ex-dividend date.
Federal Income Taxes: Each Fund is classified as a separate taxable entity for
Federal income tax purposes. Each 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.
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 of Weiss Treasury Only Money Market Fund are being
amortized using the straight-line method over a period not to exceed five years
from the date of commencement of operations.
Offering Costs: Offering costs of Weiss Millennium Opportunity Fund have been
capitalized and are being amortized on a straight line basis over a period of
twelve months.
3. INVESTMENT MANAGER, DISTRIBUTOR, ADMINISTRATOR, AND OTHER RELATED PARTY
TRANSACTIONS
Weiss Money Management, Inc. serves as the Investment Manager to the Funds.
Under investment advisory agreements with the Funds, the Manager provides
continuous advice and recommendations concerning the Funds' investments. To
compensate the Manager for its services, Weiss Treasury Only Money Market Fund
and Weiss Millennium Opportunity Fund have agreed to pay monthly a fee at the
annual rates of 0.50% and 1.50%, respectively, of their respective average daily
net assets. The Manager may from time to time waive all or a portion of its fees
payable
14
<PAGE> 16
THE WEISS FUND
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
(UNAUDITED)
by a 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. PFPC has agreed to waive fees during the period ended
June 30, 2000 for Weiss Millennium Opportunity Fund in the amount of $22,499 for
administrative and accounting services and $16,201 for transfer agent services.
PFPC Trust Company serves as the Custodian for the Fund's portfolio securities
and cash. PFPC Trust Company has agreed to waive fees during the period ended
June 30, 2000 for Weiss Millennium Opportunity Fund in the amount of $3,376.
For the period ended June 30, 2000, the Manager has voluntarily agreed to limit
the Funds' expense ratios at 0.50% for Weiss Treasury Only Money Market Fund,
and 2.50%, exclusive of Rule 12b-1 fees and other extraordinary expenses, for
Weiss Millennium Opportunity Fund. In order to maintain these ratios, the
Manager has waived a portion of its fees, which amounted to $215,391 for Weiss
Treasury Only Money Market Fund and $67,761 for Weiss Millennium Opportunity
Fund.
Dechert serves as legal counsel to the Trust. A partner of that firm serves as
Assistant Secretary to the Trust.
Each non-interested Trustee receives an annual fee of $1,500, $500 for each
Board meeting attended, $250 for each Audit Committee or other meeting attended,
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. NET ASSETS
At June 30, 2000, the Funds' net assets consisted of:
<TABLE>
<CAPTION>
WEISS TREASURY ONLY WEISS MILLENNIUM
MONEY MARKET FUND OPPORTUNITY FUND
------------------- ----------------
<S> <C> <C>
Paid in capital $109,919,854 $19,572,395
Undistributed net
investment
income/accumulated
loss -- (54,368)
Accumulated net
realized loss on
investments (648) (1,503,174)
Unrealized
appreciation on
investments -- 291,695
------------ -----------
$109,919,206 $18,306,548
============ ===========
</TABLE>
15
<PAGE> 17
THE WEISS FUND
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
(UNAUDITED)
5. INVESTMENT TRANSACTIONS
The following summarizes the aggregate amount of purchases and sales of
investment securities, options, and securities sold short, excluding short-term
securities, for the period ended June 30, 2000.
WEISS MILLENNIUM OPPORTUNITY FUND
<TABLE>
<CAPTION>
PURCHASES SALES
----------- -----------
<S> <C> <C>
Long transactions $30,878,103 $23,892,517
Short sale transactions 20,649,253 21,736,178
Option transactions -- 28,920
----------- -----------
TOTAL $51,527,356 $45,657,615
=========== ===========
</TABLE>
6. OPTION TRANSACTIONS
Weiss Millennium Opportunity Fund may write covered call and put options and may
purchase call and put options on individual securities and indices written by
others. Put and call options give the holder the right to sell and purchase,
respectively, and obligates the writer to purchase and sell, respectively, a
security at the exercise price at any time before the expiration date.
Put and call options purchased are accounted for in the same manner as portfolio
securities. The cost of securities acquired through the exercise of call options
is increased by the premium paid. The proceeds from securities sold through the
exercise of put options are decreased by the premium paid. In contrast with
options on securities, options on a stock index do not involve delivery of the
actual underlying securities and are settled in cash only.
7. SHORT SALE TRANSACTIONS
Short sales are transactions in which Weiss Millennium Opportunity Fund sells a
security it does not own in anticipation of a decline in market value of the
security. To complete such a transaction, the Fund must borrow the security to
deliver to the buyer upon the short sale; the Fund is then obligated to replace
the security borrowed by purchasing it on the open market at some later date.
The Fund will incur a loss if the market price of the security increases between
the date of the short sale and the date on which the Fund replaces the borrowed
security. The Fund will realize a gain if the security declines in value between
those dates.
All short sales must be fully collateralized. The Fund maintains the collateral
in segregated accounts of cash and/or U.S. Government securities sufficient to
collateralize the market value of its short positions. Typically, the segregated
cash and/or U.S. Government Securities with brokers and other financial
institutions exceeds the minimum requirements.
8. 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.
16
<PAGE> 18
THE WEISS FUND
NOTES TO FINANCIAL STATEMENTS (CONCLUDED)
(UNAUDITED)
Transactions in capital shares for the periods ended June 30, 2000 and December
31, 1999, respectively, are summarized below.
<TABLE>
<CAPTION>
WEISS TREASURY ONLY MONEY MARKET FUND
------------------------------------------------------------
PERIOD ENDED JUNE 30, 2000 YEAR ENDED DECEMBER 31, 1999
--------------------------- -----------------------------
SHARES VALUE SHARES VALUE
----------- ------------ ------------ -------------
<S> <C> <C> <C> <C>
Shares sold 44,270,310 $ 44,270,310 97,735,946 $ 97,735,946
Shares reinvested 2,306,033 2,306,033 3,679,344 3,679,344
Shares repurchased (55,586,678) (55,586,678) (51,534,904) (51,534,904)
----------- ------------ ----------- ------------
(9,010,335) $ (9,010,335) 49,880,386 $ 49,880,386
----------- ------------ ----------- ------------
</TABLE>
<TABLE>
<CAPTION>
WEISS MILLENNIUM OPPORTUNITY FUND
PERIOD ENDED JUNE 30, 2000
----------------------------------------------------------
CLASS A CLASS S
--------------------------- ---------------------------
SHARES VALUE SHARES VALUE
----------- ------------ ----------- ------------
<S> <C> <C> <C> <C>
Shares sold 653,928 $ 6,482,587 24,479 $ 250,020
Shares reinvested 0 0 -- --
Shares repurchased (365,988) (3,592,304) (3,000) (29,222)
----------- ------------ ----------- ------------
287,940 $ 2,890,283 21,479 $ 220,798
----------- ------------ ----------- ------------
</TABLE>
<TABLE>
<CAPTION>
WEISS MILLENNIUM OPPORTUNITY FUND
PERIOD ENDED DECEMBER 31, 1999
----------------------------------------------------------
CLASS A CLASS S
--------------------------- ---------------------------
SHARES VALUE SHARES VALUE
----------- ------------ ----------- ------------
<S> <C> <C> <C> <C>
Shares sold 1,671,873 $ 16,725,013 3 $ 30
Shares reinvested 1,935 19,720 -- --
Shares repurchased (28,513) (283,449) -- --
----------- ------------ ----------- ------------
1,645,295 $ 16,461,284 3 $ 30
----------- ------------ ----------- ------------
</TABLE>
9. CAPITAL LOSS CARRYOVERS
Capital loss carryovers for the Funds expire as follows:
<TABLE>
<CAPTION>
WEISS TREASURY ONLY WEISS MILLENNIUM
MONEY MARKET FUND OPPORTUNITY FUND
------------------- ----------------
<S> <C> <C>
2006 $648
2007 $102,576
</TABLE>
17
<PAGE> 19
Board of Trustees
John N. Breazeale, Chairman
Esther S. Gordon
Robert Z. Lehrer
Martin D. Weiss
Donald Wilk
Officers
John N. Breazeale, President
J. Barry Clause, Treasurer
Clara Maxcy, 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 FUND
[WEISS MILLENNIUM OPPORTUNITY FUND logo]
[WEISS TREASURY ONLY MONEY MARKET FUND logo]
SEMI-ANNUAL REPORT
TO SHAREHOLDERS
JUNE 30, 2000
