<PAGE> 1
THE WEISS FUND
February 10, 2000
A LETTER FROM THE PRESIDENT
Dear Shareholder,
It is with pleasure that we provide you with the Annual Report to
Shareholders for the fiscal year ended December 31, 1999 for The Weiss Fund,
consisting of Weiss Treasury Only Money Market Fund and Weiss Millennium
Opportunity Fund.
In 1999 the volatility in the stock market continued. A flight to quality,
which we identified earlier, appears to still be fueling the growth in the Weiss
Treasury Only Money Market Fund. The Fund's assets increased by $49,880,386
during 1999. We also saw T-bill rates move higher and lower, from 4.54% on
January 1, 1999, to 5.97% on December 31, 1999. The lower T-bill rates in the
first half of 1999, however, kept the overall annual return for the Fund at a
modest 4.35%. We expect that T-bill rates will continue to rise for a bit
longer, offering some positive gains for shareholders, but we realize that any
stock market correction, and/or economic downturn, could lead to much lower
interest rates over time.
Weiss Millennium Opportunity Fund commenced operations on September 21,
1999. As of December 31, 1999, this Fund had 1,556 Class A shareholders with
combined assets of $16,766,584. In the first three months, the Fund's actual
return was 2.04%.
After reading this report, if you have questions concerning your account in
either Weiss Treasury Only Money Market Fund or Weiss Millennium Opportunity
Fund, please do not hesitate to call upon a Fund representative at 800-430-9617.
Sincerely,
[/s/ JOHN N. BREAZEALE]
John N. Breazeale
President & Chairman
<PAGE> 2
1999 Annual Portfolio Management Review
Continued volatility throughout 1999 influenced the investment choices in
the Weiss Treasury Only Money Market Fund. New investments have continued to
pour into Treasuries from around the globe. This demand during the first half of
1999 kept T-bill rates low, but rates began to rise in the latter half of the
year as inflationary fears loomed, pushing T-bill rates to 5.97% as of 12/31/99.
This increase in rates represents an excellent opportunity for money fund
shareholders, and as a result, we've kept the average weighted maturity of the
Fund short to continue to be able to roll funds into higher yields.
The first deposits into Weiss Millennium Opportunity Fund were invested in
Treasuries, which constituted a fixed income core. The fund portfolio grew as
additional shareholders came on board, and we began to invest in equities in
earnest. The volatility in the market kept us moving, as we initially took short
positions in broker-dealers and computer hardware when our signals indicated
significant weakness in those sectors. By mid-December, patterns changed, and
our signals indicated strength in the technology sector. Because of Y2K
concerns, we also purchased 40 put options on AOL and additional puts on the S&P
Index to hedge our new long positions. This decision proved to be a timely one,
as tech stocks first surged and then disintegrated in the early part of the new
year.
Currently, signals indicate that we should be taking long positions in some
sectors and short positions in others. While this may seem unusual, we are
pleased that the flexibility of the fund can allow us to focus on both sides of
the market simultaneously.
With regard to the Weiss Treasury Only Money Market Fund, the Trust will
continue to seek maximum current income consistent with preservation of capital.
In the Weiss Millennium Opportunity Fund, market conditions, whether up or down,
will determine the number of long and/or short positions at any given time. We
will continue to apply fundamental practicalities to trending recommendations
made by the Fund's subadvisor before making any investment decisions.
Sincerely,
[/s/ JOHN N. BREAZEALE]
John N. Breazeale
Portfolio Manager
1
<PAGE> 3
THE WEISS FUND
WEISS TREASURY ONLY MONEY MARKET FUND
STATEMENT OF NET ASSETS, DECEMBER 31, 1999
<TABLE>
<CAPTION>
DESCRIPTION AND PERCENTAGE OF PORTFOLIO PAR (000) VALUE
--------------------------------------- --------- ------------
<S> <C> <C> <C>
U.S. TREASURY BILLS -- 95.6%
4.760%, due 01/06/00................................... $10,000 $ 9,993,389
4.965%, due 01/13/00................................... 10,000 9,983,450
5.200%, due 01/20/00................................... 10,000 9,972,556
5.030%, due 01/27/00................................... 5,000 4,981,836
5.020%, due 02/03/00................................... 10,000 9,953,983
5.100%, due 02/10/00................................... 10,000 9,943,333
4.755%, due 02/17/00................................... 3,000 2,981,376
4.880%, due 02/17/00................................... 7,000 6,955,402
5.125%, due 03/30/00................................... 10,000 9,873,299
5.210%, due 04/20/00................................... 10,000 9,840,806
5.360%, due 05/04/00................................... 10,000 9,815,378
5.330%, due 06/08/00................................... 10,000 9,764,592
5.550%, due 08/17/00................................... 10,000 9,646,958
------------
Total U.S. Treasury Bills (Cost $113,706,358) 113,706,358
------------
REPURCHASE AGREEMENTS -- 4.5%
PNC Capital Markets Repurchase Agreement 2.20%, 01/03/00
(dated 12/31/99; proceeds $5,300,972, collateralized by
$5,255,000 U.S Treasury Notes, 5.625% due 04/30/00,
valued at $5,302,073) (Cost $5,300,000)................ 5,300 5,300,000
------------
<CAPTION>
SHARES
---------
<S> <C> <C> <C>
SHORT-TERM INVESTMENT -- 0.0%
Provident Institutional Fund -- TempFund (Cost $47,217)... 47,217 47,217
------------
TOTAL INVESTMENTS (COST $119,053,575*) 100.10% 119,053,575
LIABILITIES IN EXCESS OF OTHER ASSETS (0.10%) (124,034)
------ ------------
NET ASSETS (Equivalent to $1.00 per share based
on 118,930,189 shares of capital stock outstanding) 100.0% $118,929,541
====== ============
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE
($118,929,541 / 118,930,189 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, DECEMBER 31, 1999
<TABLE>
<CAPTION>
DESCRIPTION AND PERCENTAGE OF PORTFOLIO SHARES VALUE
- --------------------------------------- --------- ------------
<S> <C> <C>
COMMON STOCK -- 22.4%
Aerospace & Defense -- 0.6%
Boeing Co. ............................................ 2,500 $ 103,906
------------
Communications -- 2.4%
*Applied Materials, Inc. .............................. 800 101,350
AT&T Corp. ............................................ 2,000 101,500
*MCI WorldCom, Inc. ................................... 1,800 95,513
Motorola, Inc. ........................................ 700 103,075
------------
401,438
------------
Computer -- Internet Services & Software -- 9.8%
Adobe Systems, Inc. ................................... 1,100 73,975
*BMC Software, Inc. ................................... 1,300 103,919
*Cadence Design Systems, Inc. ......................... 4,400 105,600
*Citrix Systems, Inc. ................................. 1,000 123,000
Computer Associates International, Inc. ............... 1,300 90,919
*Compuware Corp. ...................................... 2,500 93,125
*Electronic Arts, Inc. ................................ 900 75,600
*Go.Com................................................ 3,000 71,438
*Intuit, Inc. ......................................... 2,300 137,856
*Microsoft Corp. ...................................... 900 105,075
*Novell, Inc. ......................................... 3,400 135,362
*Oracle Systems Corp. ................................. 1,300 145,680
*Parametric Technology Corp. .......................... 3,700 100,131
*Peoplesoft, Inc. ..................................... 4,600 98,038
*Siebel Systems, Inc. ................................. 1,200 100,800
*Symantec Corp. ....................................... 1,500 87,938
------------
1,648,456
------------
Drugs & Health Care -- 1.8%
*Amgen, Inc. .......................................... 2,200 132,138
Johnson & Johnson...................................... 1,000 93,125
Pfizer, Inc. .......................................... 2,500 81,094
------------
306,357
------------
Electronics -- 4.6%
Advanced Micro Devices, Inc. .......................... 3,400 98,387
*Altera Corp. ......................................... 1,300 64,431
*Cypress Semiconductor Corp. .......................... 2,000 64,750
*Irvine Sensors Corp. ................................. 20,000 42,500
</TABLE>
3
<PAGE> 5
THE WEISS FUND
WEISS MILLENNIUM OPPORTUNITY FUND
STATEMENT OF NET ASSETS, DECEMBER 31, 1999 (CONTINUED)
<TABLE>
<CAPTION>
DESCRIPTION AND PERCENTAGE OF PORTFOLIO SHARES VALUE
- --------------------------------------- --------- ------------
COMMON STOCK (CONTINUED)
<S> <C> <C>
*KLA- Tenor Corp. ..................................... 900 $ 100,238
Linear Technology Corp. ............................... 900 64,406
*LSI Logic Corp. ...................................... 1,300 87,750
*Rambus, Inc. ......................................... 800 53,950
*Teradyne, Inc. ....................................... 1,600 105,600
*Xilinx, Inc. ......................................... 1,800 81,844
------------
763,856
------------
Multimedia -- 0.5%
Walt Disney Co. ....................................... 3,000 87,750
------------
Semiconductors -- 1.0%
Intel Corp. ........................................... 900 74,081
*Novellus Systems, Inc. ............................... 800 98,025
------------
172,106
------------
Tobacco -- 0.6%
Philip Morris Companies, Inc. ......................... 4,000 92,750
------------
Transportation -- 1.1%
FDX Corp. ............................................. 2,000 81,875
Williams Cos., Inc. ................................... 3,000 91,688
------------
173,563
------------
Total Common Stock (Cost $3,157,767) 3,750,182
------------
U.S. TREASURY BILLS -- 61.2%
4.590%, due 01/06/00...................................... 800 799,483
4.600%, due 01/06/00...................................... 200 199,871
4.590%, due 01/20/00...................................... 300 299,216
4.670%, due 02/03/00...................................... 30 29,867
4.791%, due 03/16/00...................................... 50 49,486
5.055%, due 03/30/00...................................... 1,000 987,530
5.100%, due 03/30/00...................................... 8,000 7,900,240
------------
Total U.S. Treasury Bills (Cost $10,264,644) 10,265,693
------------
REPURCHASE AGREEMENTS -- 12.8%
PNC Capital Markets Repurchase Agreement 2.10%, 01/03/00
(dated 12/31/99; proceeds $2,150,376, collateralized by
$2,135,000 U.S. Treasury Notes, 5.625% due 04/30/00,
valued $2,154,125) (Cost $2,150,000)................... 2,150 2,150,000
------------
</TABLE>
4
<PAGE> 6
\
THE WEISS FUND
WEISS MILLENNIUM OPPORTUNITY FUND
STATEMENT OF NET ASSETS, DECEMBER 31, 1999 (CONCLUDED)
<TABLE>
<CAPTION>
DESCRIPTION AND PERCENTAGE OF PORTFOLIO SHARES VALUE
--------------------------------------- --------- ------------
<S> <C> <C>
SHORT-TERM INVESTMENT -- 0.1%
Provident Institutional Funds, Inc. -- T-Fund Portfolio
(Cost $17,013)......................................... 17,013 $ 17,013
------------
</TABLE>
<TABLE>
<CAPTION>
NUMBER OF
NAME/EXPIRATION DATE/STRIKE PRICE CONTRACTS
--------------------------------- ---------
<S> <C> <C>
PUT OPTIONS PURCHASED -- 0.5%
America Online, Feb., $65................................. 40 15,000
Standard & Poor's 500 Index, Mar., $1,300................. 40 60,000
----------
Total Put Options (Cost $71,618) 75,000
----------
TOTAL INVESTMENTS -- 97.0% (COST $15,661,042) 16,257,888
OTHER ASSETS IN EXCESS OF LIABILITIES -- 3.0%
Receivable from Brokers for Securities Sold Short and
Investment Securities Sold............................. 1,238,080
Receivable for Fund Shares Sold........................... 558,920
Other Assets.............................................. 55,510
Payable for Investment Securities Purchased............... (75,022)
Net Amounts due to Investment Manager..................... (61,583)
Securities Sold Short, at Value (proceeds $1,086,353)..... (1,190,313)
Other Liabilities......................................... (16,865)
-----------
508,727
-----------
NET ASSETS -- 100% (APPLICABLE TO 1,645,790 CLASS A SHARES
AND 3 CLASS S SHARES, $.01 PAR VALUE PER SHARE, ISSUED AND
OUTSTANDING).............................................. $16,766,615
===========
NET ASSET VALUE AND REDEMPTION PRICE PER CLASS A SHARE
($16,766,584 / 1,645,790)................................. $ 10.19
===========
MAXIMUM OFFERING PRICE PER CLASS A SHARE ($10.19 / 0.985)... $ 10.34
===========
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER CLASS S
SHARE ($31 / 3)........................................... $ 10.19
===========
</TABLE>
- ------------
* Non-Income producing security.
See accompanying notes to financial statements.
5
<PAGE> 7
THE WEISS FUND
WEISS MILLENNIUM OPPORTUNITY FUND
SCHEDULE OF SECURITIES SOLD SHORT, DECEMBER 31, 1999
<TABLE>
<CAPTION>
NAME OF ISSUER SHARES VALUE
- -------------- ------ ----------
<S> <C> <C>
COMMON STOCKS
Bed, Bath & Beyond, Inc................................ 3,500 $ 121,625
Chase Manhattan Corp. ................................. 1,000 77,688
Chiron Corp. .......................................... 3,000 127,124
Citigroup, Inc. ....................................... 1,700 94,456
Consolidated Natural Gas Co. .......................... 1,500 97,406
Ebay, Inc. ............................................ 400 50,075
Flour Corp. ........................................... 2,000 91,750
Hewlett Packard Co. ................................... 1,000 113,938
MBNA Corp. ............................................ 3,000 81,750
Phelps Dodge Corp. .................................... 1,500 100,688
Weatherford International, Inc. ....................... 3,000 119,813
Westwood One, Inc. .................................... 1,500 114,000
----------
TOTAL SECURITIES SOLD SHORT (PROCEEDS $1,086,353) $1,190,313
----------
</TABLE>
See accompanying notes to financial statements.
6
<PAGE> 8
THE WEISS FUND
STATEMENT OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 1999
<TABLE>
<CAPTION>
WEISS WEISS
TREASURY ONLY MILLENNIUM
MONEY MARKET FUND OPPORTUNITY FUND*
----------------- -----------------
<S> <C> <C>
INVESTMENT INCOME:
Dividend................................................ $ -- $ 2,631
Interest................................................ 4,351,139 71,403
---------- ---------
Total Investment Income.............................. 4,351,139 74,034
---------- ---------
EXPENSES:
Investment Advisory fees................................ 458,752 29,271
Transfer Agent fees..................................... 135,769 27,567
Registration and filing fees............................ 36,850 9,837
Administration fees..................................... 79,965 28,756
Legal fees.............................................. 62,069 3,159
Custodian fees.......................................... 19,067 8,444
Printing................................................ 14,929 5,020
Audit fees.............................................. 11,246 702
Insurance............................................... 11,075 102
Amortization of organizational costs.................... 7,769 --
Offering costs.......................................... -- 7,282
Trustees' fees.......................................... 6,242 378
Miscellaneous........................................... 326 1,825
---------- ---------
844,059 122,343
Less: expenses waived and reimbursed.................... (385,307) (72,518)
---------- ---------
Total Expenses....................................... 458,752 49,825
---------- ---------
Net Investment Income................................ 3,892,387 24,209
---------- ---------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net Realized Loss on Investment Securities.............. -- (189,516)
Net Change in Unrealized Appreciation of
Investment Securities................................ -- 492,886
---------- ---------
Net Realized and Unrealized Gain on Investments...... -- 303,370
---------- ---------
Net Increase in Net Assets Resulting from Operations...... $3,892,387 $ 327,579
========== =========
</TABLE>
- ------------
* Commencement of operations was September 21, 1999.
See accompanying notes to financial statements.
7
<PAGE> 9
THE WEISS FUND
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
WEISS TREASURY ONLY
MONEY MARKET FUND WEISS MILLENNIUM
------------------------------- OPPORTUNITY FUND
FOR THE YEAR ENDED DECEMBER 31, --------------------
------------------------------- FOR THE PERIOD ENDED
1999 1998 DECEMBER 31, 1999*
-------------- ------------- --------------------
<S> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS FROM:
Operations:
Net investment income.................... $ 3,892,387 $ 1,982,500 $ 24,209
Net realized loss on investment
securities............................. -- (648) (189,516)
Net change in unrealized appreciation on
investment securities.................. -- -- 492,886
------------ ----------- -----------
Net increase in net assets resulting from
operations............................. 3,892,387 1,981,852 327,579
Distributions:
From net investment income ($.04, $.05
and $.01 per share, respectively)...... (3,892,387) (1,982,500) (22,278)
Capital share transactions:
Net increase from capital share
transactions........................... 49,880,386 35,688,557 16,461,304
------------ ----------- -----------
Total increase in net assets............. 49,880,386 35,687,909 16,766,605
NET ASSETS
Beginning of period......................... 69,049,155 33,361,246 10
------------ ----------- -----------
End of Period (including undistributed net
investment income of $1,931 for Weiss
Millennium Opportunity Fund)............. $118,929,541 $69,049,155 $16,766,615
============ =========== ===========
</TABLE>
- ------------
* Commencement of operations was September 21, 1999.
See accompanying notes to financial statements.
8
<PAGE> 10
THE WEISS FUND
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
<TABLE>
<CAPTION>
WEISS TREASURY ONLY MONEY MARKET FUND WEISS MILLENNIUM
-------------------------------------------------------- OPPORTUNITY FUND(4)
FOR THE YEAR ENDED DECEMBER 31, --------------------
--------------------------------- FOR THE PERIOD ENDED FOR THE PERIOD ENDED
1999 1998 1997 DECEMBER 31, 1996* DECEMBER 31, 1999*
--------- -------- -------- -------------------- --------------------
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD: $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 10.00
-------- ------- ------- ------- -------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income.............. 0.04 0.05 0.05 0.02 0.01
Net realized and unrealized gain
(loss) on investments............ -- -- -- -- 0.19
-------- ------- ------- ------- -------
Net investment income............ 0.04 0.05 0.05 0.02 0.20
-------- ------- ------- ------- -------
LESS DISTRIBUTIONS:
From net investment income......... (0.04) (0.05) (0.05) (0.02) (0.01)
-------- ------- ------- ------- -------
NET ASSET VALUE, END OF PERIOD: $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 10.19
======== ======= ======= ======= =======
TOTAL RETURN......................... 4.35% 4.67% 4.71% 4.67% 2.04%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000)...... $118,930 $69,049 $33,361 $11,127 $16,767
Ratio of expenses to average net
assets(1).......................... 0.50% 0.53% 0.50% 0.50%(3) 2.55%(3)
Ratio of net investment income to
average net assets(2).............. 4.24% 4.55% 4.60% 4.54%(3) 1.24%(3)
Portfolio turnover................... NA NA NA NA 82%
</TABLE>
- ------------
(1) Weiss Treasury Only Money Market Fund's annualized expense ratios before
waivers and reimbursement of expenses for the years ended December 31, 1999,
1998 and 1997 and the period ended December 31, 1996 would have been 0.92%,
1.14%, 1.69%, and 7.69%, respectively.
Weiss Millennium Opportunity Fund's annualized expense ratio before waivers
and reimbursement of expenses for the period ended December 31, 1999, would
have been 6.27%, which included the margin and dividend expenses. Without
the margin and dividend expenses, the ratio would have been 6.22%.
Weiss Millennium Opportunity Fund's annualized expense ratio after waivers
and reimbursement of expenses for the period ended December 31, 1999,
excluding the margin and dividend expenses would have been 2.50%.
(2) Weiss Treasury Only Money Market Fund's annualized net investment income
ratios before waivers and reimbursement of expenses for the years ended
December 31, 1999, 1998 and 1997 and the period ended December 31, 1996
would have been 3.82%, 3.94%, 3.41% and (2.65)%, respectively.
Weiss Millennium Opportunity Fund's annualized net investment income ratio
before waivers and reimbursement of expenses for the period ended December
31, 1999 would have been (2.43)%, with the margin and dividend expenses
excluded.
(3) Annualized.
(4) For the period ended December 31, 1999, Class S shares of Weiss Millennium
Opportunity Fund have had nominal activities thus the financial highlights
for that class are the same as those of Class A shares.
* Commencement of operations of Weiss Treasury Only Money Market Fund and Weiss
Millennium Opportunity Fund was June 28, 1996 and September 21, 1999,
respectively.
See accompanying notes to financial statements.
9
<PAGE> 11
THE WEISS FUND
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1999
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.
10
<PAGE> 12
THE WEISS FUND
NOTES TO FINANCIAL STATEMENTS
(CONTINUED)
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 Fund's 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 the 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 disburse 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
11
<PAGE> 13
THE WEISS FUND
NOTES TO FINANCIAL STATEMENTS
(CONTINUED)
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 of
operations for Weiss Millennium Opportunity Fund in the amount of $25,277 for
administrative and accounting services and $18,200 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 of
operations for Weiss Millennium Opportunity Fund in the amount of $3,792.
For the year ended December 31, 1999, the Manager has voluntarily agreed to
limit the Funds expense ratios at 0.50%, 2.50%, and 2.75% for the Weiss Treasury
Only Money Market Fund and Weiss Millennium Opportunity Fund, Class A and Class
S, respectively. In order to maintain these ratios, the Manager has waived all
or a portion of its fees, which amounted to $385,306 for the Weiss Treasury Only
Money Market Fund and $25,249 for Weiss Millennium Opportunity Fund.
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 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, 1999, the Funds' net assets consisted of:
<TABLE>
<CAPTION>
WEISS TREASURY ONLY WEISS MILLENNIUM
MONEY MARKET FUND OPPORTUNITY FUND
------------------- ----------------
<S> <C> <C>
Paid in capital $118,930,189 $16,461,314
Undistributed net
investment income -- 1,931
Accumulated net
realized loss on
investments (648) (189,516)
Unrealized
appreciation on
investments -- 492,886
------------ -----------
$118,929,541 $16,766,615
============ ===========
</TABLE>
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 year ended December 31, 1999.
WEISS MILLENNIUM OPPORTUNITY FUND
<TABLE>
<CAPTION>
PURCHASES SALES
---------- ----------
<S> <C> <C>
Long transactions $5,830,919 $2,574,434
Short sale transactions 743,573 1,739,123
Option transactions 71,618 --
---------- ----------
TOTAL $6,646,110 $4,313,557
========== ==========
</TABLE>
12
<PAGE> 14
THE WEISS FUND
NOTES TO FINANCIAL STATEMENTS
(CONTINUED)
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 the 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.
Transactions in capital shares for the period ended December 31, 1999 and 1998,
respectively, are summarized below.
<TABLE>
<CAPTION>
WEISS TREASURY ONLY MONEY MARKET FUND
--------------------------------------------------------------
YEAR ENDED DECEMBER 31, 1999 YEAR ENDED DECEMBER 31, 1998
----------------------------- -----------------------------
SHARES VALUE SHARES VALUE
------------ ------------- ------------ -------------
<S> <C> <C> <C> <C>
Shares sold 97,735,946 $ 97,735,946 58,510,318 $ 58,510,318
Shares reinvested 3,679,344 3,679,344 2,023,288 2,023,288
Shares repurchased (51,534,904) (51,534,904) (24,845,049) (24,845,049)
----------- ------------ ----------- ------------
49,880,386 $ 49,880,386 35,688,557 $ 35,688,557
----------- ------------ ----------- ------------
</TABLE>
13
<PAGE> 15
THE WEISS FUND
NOTES TO FINANCIAL STATEMENTS
(CONCLUDED)
<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>
14
<PAGE> 16
REPORT OF INDEPENDENT ACCOUNTANTS
To the Shareholders and Board of
Trustees of The Weiss Fund
We have audited the accompanying statements of net assets of Weiss Treasury
Only Money Market Fund and Weiss Millennium Opportunity Fund (the "Funds"), a
series of The Weiss Fund, as of December 31, 1999, and the related statements of
operations, the statements of changes in net assets and the financial highlights
for the periods indicated thereon. These financial statements and financial
highlights are the responsibility of the Funds' management. Our responsibility
is to express an opinion on these financial statements and financial highlights
based on our audits.
We conducted 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 securities owned as of
December 31, 1999 by correspondence with the custodian. 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
Weiss Treasury Only Money Market Fund and Weiss Millennium Opportunity Fund as
of December 31, 1999, the results of their operations, the changes in their net
assets and the financial highlights for the periods presented, in conformity
with generally accepted accounting principles.
Tait, Weller & Baker
Philadelphia, Pennsylvania
January 14, 2000
15
<PAGE> 17
Board of Trustees
John N. Breazeale, Chairman
Esther S. Gordon
Robert Z. Lehrer
Martin D. Weiss
Donald Wilk
Officers
John N. Breazeale, President
David D. Marky, 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 pre-
ceded or accompanied by an effective prospectus.
[THE WEISS FUND LOGO]
WEISS MILLENNIUM
OPPORTUNITY FUND
CLASS A SHARES
CLASS S SHARES
WEISS TREASURY
ONLY MONEY
MARKET FUND
ANNUAL REPORT
TO SHAREHOLDERS
DECEMBER 31, 1999
