UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES
Investment Company Act file number 811-09084
The Weiss Fund
(Exact name of registrant as specified in charter)
7111 Fairway Drive, Suite 102
Palm Beach Gardens, FL 33418
(Address of principal executive offices) (Zip code)
Jeffrey B. Wilson, Esq.
7111 Fairway Drive, Suite 102
Palm Beach Gardens, FL 33418
(Name and address of agent for service)
registrant's telephone number, including area code: 561-515-8558
Date of fiscal year end: December 31
Date of reporting period: June 30, 2007
Form N-CSR is to be used by management investment companies to file reports with
the Commission not later than 10 days after the transmission to stockholders of
any report that is required to be transmitted to stockholders under Rule 30e-1
under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may
use the information provided on Form N-CSR in its regulatory, disclosure review,
inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-CSR,
and the Commission will make this information public. A registrant is not
required to respond to the collection of information contained in Form N-CSR
unless the Form displays a currently valid Office of Management and Budget
("OMB") control number. Please direct comments concerning the accuracy of the
information collection burden estimate and any suggestions for reducing the
burden to Secretary, Securities and Exchange Commission, 100 F Street, NE,
Washington, DC 20549. The OMB has reviewed this collection of information under
the clearance requirements of 44 U.S.C. Section 3507.
ITEM 1. REPORTS TO STOCKHOLDERS.
The Report to Shareholders is attached herewith.
THE WEISS FUND
A LETTER FROM THE PRESIDENT June 30, 2007
Dear Shareholder,
It is with pleasure that I present the Semi-Annual Report for the six
months ended June 30, 2007, for the Weiss Treasury Only Money Market Fund.
U.S. economic growth, while having moderated over the past six months, has
continued to expand at a solid pace, allowing Federal Reserve policy makers to
keep the funds rate, a key overnight lending rate, unchanged at 5.25%. Indeed,
we have been impressed at the expansion's resilience in the face of continued
woes in the housing sector. Those who looked for an early stabilization in the
housing market have been forced to revise their expectations as inventories of
unsold homes have continued to rise, indicating that prices have likely not yet
bottomed. Outside of the housing sector, income and profits have been well
supported, as underscored by the 4.5% unemployment rate and the exceptionally
elevated nature of profit margins in the corporate sector thanks in large part
to strong global demand(1). Nonetheless, the case for the U.S. economy to grow
below its potential of 3% annual growth over the balance of 2007 is compelling.
Consumers are likely to feel the pinch from rising gas prices in the coming
months, likely causing some reduction in discretionary spending. Too, a recent
survey from the National Federation of Independent Business shows that capital
spending and hiring plans have moderated(2).
As we mentioned in our last communication to you, the Fed will likely not
reduce interest rates on moderating inflation alone. Indeed, recent inflation
data point to decreasing, not increasing, inflationary pressures, on balance.
The Fed is notorious for waiting until unemployment is consistently on the rise
before embarking on a rate cutting campaign. As long as inflation does not
spiral out of control, and the economy continues to grow at a 2%-3% annual rate,
it appears unlikely that the Fed will move short-term interest rates one way or
another.
The Fed's decision to keep short-term rates unchanged during the first half
of the year has meant that yields of short-maturity securities have remained
range-bound, as they are most directly influenced by changes in the Fed Funds
rate. Treasury Bill yields have remained in the 4.7% - 5.2% range for much of
the year, as short-term securities have been in high demand by professional
investors. As we have stated in the past, the performance on your Treasury Only
Money Market Fund is directly affected by the gyrations of short-term, not
long-term, interest rates. The Fund invests in the shortest and safest
maturities in the world - US Treasury Bills - and must maintain an average
weighted maturity of 90 days or less at all times.
As the Fed has kept interest-rate policy steady, we have maintained the
Fund's average weighted maturity stable and relatively low as we look to take
advantage of attractive yield levels in the shortest of
- ---------------
1 BCA Research, Bank Credit Analyst, July 2007: Reference Chart 8: Non-financial
Corporate Sector After-Tax Profit Margins
2 NFIB Small Business Economic Trends, July 2007
maturities. While we still believe that the next move by the Fed will be an
eventual cutting of interest rates, this action has been pushed further into the
future than originally anticipated thanks to an economy that continues to
perform well, as mentioned above. Also, we cannot rule out that our base case is
wrong and a return of above-trend growth down the road may actually lead to
renewed interest rate increases. Therefore, we believe the Fund's current
positioning allows us the flexibility to move in either direction quickly as
constantly evolving information about the economic outlook evolves.
As always we look forward to continuing to provide consistent performance
in order to reward your commitment and trust. Should you have any questions
about The Weiss Fund, please call a Fund representative at 1-800-430-9617.
Sincerely,
/s/ Sharon A. Parker-Daniels
Sharon A. Daniels
President
The Weiss Fund
AN INVESTMENT IN THE FUND IS NOT INSURED OR GUARANTEED BY THE FEDERAL DEPOSIT
INSURANCE CORPORATION OR ANY OTHER GOVERNMENT AGENCY. ALTHOUGH THE FUND SEEKS TO
PRESERVE THE VALUE OF YOUR INVESTMENT AT $1.00 PER SHARE, IT IS POSSIBLE TO LOSE
MONEY BY INVESTING IN THE FUND.
THE WEISS FUND
FUND EXPENSE EXAMPLES (UNAUDITED)
As a shareholder of the Fund, you incur two types of costs: (1) transaction
costs and (2) ongoing costs, including management fees and other Fund expenses.
This Example is intended to help you understand your ongoing costs (in dollars)
of investing in the Fund and to compare these costs with the ongoing costs of
investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the
period and held for the entire period January 1, 2007 to June 30, 2007.
ACTUAL EXPENSES
The first line of the table below provides information about actual account
values and actual expenses. You may use the information in this line, together
with the amount you invested, to estimate the expenses that you paid over the
period. Simply divide your account value by $1,000 (for example, an $8,600
account value divided by $1,000 = 8.6), then multiply the result by the number
in the first line under the heading entitled "Expenses Paid During Period" to
estimate the expenses you paid on your account during this period.
HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES
The second line of the table below provides information about hypothetical
account values and hypothetical expenses based on the Fund's actual expense
ratio and an assumed rate of return of 5% per year before expenses, which is not
the Fund's actual return. The hypothetical account values and expenses may not
be used to estimate the actual ending account balance or expenses you paid for
the period. You may use the information to compare the ongoing costs of
investing in the Fund and other funds. To do so, compare this 5% hypothetical
example with the 5% hypothetical examples that appear in the shareholder reports
of the other funds.
Please note that the expenses shown in the table are meant to highlight your
ongoing costs only and do not reflect any transactional costs, such as sales
charges (loads). Therefore, the second line of the table is useful in comparing
ongoing costs only, and will not help you determine the relative total costs of
owning different funds. In addition, if these transactional costs were included,
your costs would have been higher.
<Table>
<Caption>
BEGINNING ENDING EXPENSES PAID
ACCOUNT VALUE ACCOUNT VALUE DURING PERIOD*
1/1/07 6/30/07 1/1/07-6/30/07
------------- ------------- --------------
Actual........................................ $1,000 $1,022.00 $3.46
Hypothetical (5% return before expenses)...... $1,000 $1,021.37 $3.46
</Table>
- ------------
* Expenses are equal to the Fund's annualized expense ratio of 0.69% multiplied
by the average account value over the period, multiplied by 181/365 (to
reflect the one-half year period).
1
THE WEISS FUND
PORTFOLIO HOLDINGS
The U.S. Securities and Exchange Commission (SEC) requires that all funds
present their categories of portfolio holdings in a table, chart or graph format
in their annual and semi-annual shareholder reports, whether or not a schedule
of investments is utilized. The following table, which presents portfolio
holdings as a percent of total investments is provided in compliance with such
requirement.
<Table>
<Caption>
U.S. Treasury Bills......................................... 49.8%
Repurchase Agreement........................................ 50.0%
Short-Term Investment....................................... 0.2%
------
100.0%
======
</Table>
2
THE WEISS FUND
WEISS TREASURY ONLY MONEY MARKET FUND
STATEMENT OF NET ASSETS, JUNE 30, 2007
(UNAUDITED)
<Table>
<Caption>
DESCRIPTION AND PERCENTAGE OF PORTFOLIO PAR (000) VALUE
- --------------------------------------- --------- ----------
U.S. TREASURY BILLS -- 49.8%
4.880%, 07/05/2007........................................ $ 5,000 $4,997,289
4.870%, 07/19/2007........................................ 5,000 4,987,825
4.865%, 07/19/2007........................................ 5,000 4,987,838
4.820%, 07/26/2007........................................ 5,000 4,983,264
4.770%, 08/02/2007........................................ 5,000 4,978,800
4.775%, 08/09/2007........................................ 5,000 4,974,135
4.770%, 08/16/2007........................................ 5,000 4,969,525
4.750%, 08/23/2007........................................ 5,000 4,965,035
4.745%, 08/30/2007........................................ 5,000 4,960,458
4.705%, 09/06/2007........................................ 5,000 4,956,217
4.660%, 09/13/2007........................................ 5,000 4,952,106
----------
Total U.S. Treasury Bills (Cost $54,712,492).............. 54,712,492
----------
REPURCHASE AGREEMENTS -- 50.1%
Fidelity Repurchase Agreements 4.28%, due 07/02/07 (dated
06/29/07; proceeds $53,018,903, collateralized by
$53,891,000 U.S. Treasury Notes, 4.625% due 08/31/11,
valued at $54,060,002; dated 06/29/07; proceeds
$2,000,713, collateralized by $2,056,000 U.S. Treasury
Notes, 4.500% due 03/31/012, valued at $2,040,000) (Cost
$55,000,000)............................................ 55,000 55,000,000
----------
</Table>
See accompanying notes to financial statements.
3
THE WEISS FUND
WEISS TREASURY ONLY MONEY MARKET FUND
STATEMENT OF NET ASSETS, JUNE 30, 2007 (CONCLUDED)
(UNAUDITED)
<Table>
<Caption>
SHARES
(000) VALUE
------ ------------
SHORT-TERM INVESTMENT -- 0.2%
BlackRock Provident Institutional Funds -- T-Fund
(Cost $214,992)......................................... 215 $ 214,992
------------
TOTAL INVESTMENTS -- 100.1% (COST $109,927,484*)............ 109,927,484
LIABILITIES IN EXCESS OF OTHER ASSETS -- (0.1%)
Dividend Payable.......................................... (12,882)
Accrued Advisory Expense.................................. (17,988)
Accrued Administrative Expense............................ (13,646)
Accrued Custody Expense................................... (5,547)
Accrued Transfer Agent Expense............................ (32,742)
Other Liabilities......................................... (21,500)
Other Assets.............................................. 11,261
------------
(93,044)
------------
NET ASSETS -- 100.0% (Equivalent to $1.00 per share based on
109,834,838 shares of capital stock outstanding).......... $109,834,440
============
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE
($109,834,440 / 109,834,838 shares outstanding)........... $ 1.00
============
</Table>
- ------------
* Aggregate cost for federal income tax purposes is substantially the same.
See accompanying notes to financial statements.
4
THE WEISS FUND
WEISS TREASURY ONLY MONEY MARKET FUND
STATEMENT OF OPERATIONS
FOR THE SIX-MONTH PERIOD ENDED JUNE 30, 2007
(UNAUDITED)
<Table>
INVESTMENT INCOME:
Interest.................................................. $2,917,607
----------
EXPENSES:
Investment advisory fees.................................. 286,563
Transfer agent fees....................................... 81,767
Administration fees....................................... 62,312
Legal fees................................................ 62,361
Registration and filing fees.............................. 14,983
Trustees' fees............................................ 13,997
Custodian fees............................................ 11,271
Printing fees............................................. 11,939
Insurance fees............................................ 5,092
Audit fees................................................ 6,116
Miscellaneous expense..................................... 731
----------
557,132
Less: expenses waived and reimbursed...................... (161,411)
----------
Total expenses.......................................... 395,721
----------
Net investment income................................... 2,521,886
----------
Net increase in net assets resulting from operations........ $2,521,886
==========
</Table>
See accompanying notes to financial statements.
5
THE WEISS FUND
STATEMENT OF CHANGES IN NET ASSETS
<Table>
<Caption>
FOR THE SIX-MONTH PERIOD FOR THE
ENDED JUNE 30, 2007 YEAR ENDED
(UNAUDITED) DECEMBER 31, 2006
------------------------ -----------------
INCREASE (DECREASE) IN NET ASSETS FROM:
Operations:
Net investment income.............................. $ 2,521,886 $ 4,868,889
------------ ------------
Net increase in net assets resulting from
operations....................................... 2,521,886 4,868,889
Distributions:
From net investment income ($0.02 and $0.04 per
share, respectively)............................. (2,521,886) (4,868,889)
Capital share transactions:
Net increase (decrease) from capital share
transactions..................................... (16,724,283) 20,638,122
------------ ------------
Total increase (decrease) in net assets............ (16,724,283) 20,638,122
NET ASSETS
Beginning of period................................... 126,558,723 105,920,601
------------ ------------
End of period......................................... $109,834,440 $126,558,723
============ ============
</Table>
See accompanying notes to financial statements.
6
THE WEISS FUND
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
<Table>
<Caption>
FOR THE SIX-MONTH PERIOD WEISS TREASURY ONLY MONEY MARKET FUND
ENDED JUNE 30, 2007 ----------------------------------------------------
FOR THE YEAR ENDED DECEMBER 31,
----------------------------------------------------
(UNAUDITED) 2006 2005 2004 2003 2002
------------------------ -------- -------- -------- -------- --------
NET ASSET VALUE,
BEGINNING OF
PERIOD:.............. $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
-------- -------- -------- -------- -------- --------
INCOME FROM INVESTMENT
OPERATIONS:
Net investment
income............. 0.02 0.04 0.02 0.01 0.00 0.01
-------- -------- -------- -------- -------- --------
LESS DISTRIBUTIONS:
From net investment
income............. (0.02) (0.04) (0.02) (0.01) (0.00)* (0.01)
-------- -------- -------- -------- -------- --------
NET ASSET VALUE, END OF
PERIOD:.............. $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======== ======== ======== ======== ======== ========
TOTAL RETURN........... 2.20% 4.22% 2.41% 0.59% 0.44% 1.14%
RATIOS/SUPPLEMENTAL
DATA:
Net assets, end of
period (000)......... $109,834 $126,559 $105,921 $113,340 $161,138 $182,559
Ratio of expenses to
average net
assets(1,2).......... 0.69%** 0.68% 0.68% 0.68% 0.65% 0.60%
Ratio of net investment
income to average net
assets(3)............ 4.40%** 4.16% 2.37% 0.55% 0.46% 1.11%
</Table>
- ------------
(1) Expense ratios before waivers and reimbursement of expenses for the period
ended June 30, 2007, and the years ended December 31, 2006, 2005, 2004, 2003
and 2002 would have been 0.97%, 0.99%, 0.96%, 0.91%, 0.75%, and 0.82%,
respectively.
(2) From January 1, 2007 until May 10, 2007, the Manager voluntarily agreed to
limit the Fund's expense ratio to 0.68% (exclusive of extraordinary and
certain other expenses). Effective May 11, 2007, the Manager increased the
expense limitation with respect to the Fund to an annual rate of 0.72%
(exclusive of extraordinary and certain other expenses) of the average net
assets of the Fund.
(3) Net investment income ratios before waivers and reimbursement of expenses
for the period ended June 30, 2007, and the years ended December 31, 2006,
2005, 2004, 2003, and 2002 would have been 4.12%, 3.85%, 2.09%, 0.32%,
0.36%, and 0.89%, respectively.
* Distributions are less than a penny per share.
** Annualized
See accompanying notes to financial statements.
7
THE WEISS FUND
NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 2007
(UNAUDITED)
1. FUND ORGANIZATION
The Weiss 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 as
Weiss Treasury Fund. The Trust is a series fund that is authorized to issue
shares of beneficial interest in the Weiss Treasury Only Money Market Fund (the
"Fund"). The Fund commenced operations on June 28, 1996.
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
objectives 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 the preparation of its financial statements. The preparation of
financial statements in accordance with accounting principles generally accepted
in the United States of America 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: The Fund's securities 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.
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. The Fund's expenses are also
accrued daily. Net investment income for the Fund consists of all interest
income accrued on the Fund's assets, less accrued expenses.
Dividends and Distributions to Shareholders: Dividends from the Fund's net
investment income are declared daily and paid monthly. 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. The tax character of all distributions
paid during 2007 and 2006 was ordinary income.
Federal Income Taxes: The Fund is classified as a separate taxable entity for
Federal income tax purposes. The Fund intends to qualify as a "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. Net investment income and short-term capital gains, if any, are
taxed as ordinary income. Income and capital gains of the Fund are determined in
accordance with both tax regulations and accounting principles generally
accepted in the United States of America. Such determinations may result in
temporary and permanent differences between tax basis
8
THE WEISS FUND
NOTES TO THE FINANCIAL STATEMENTS
(CONTINUED)
earnings and earnings reported for financial statement purposes. These
differences, which have no impact on the net asset value of the Fund, are
primarily attributable to certain differences in computation of distributable
income and capital gains.
On July 13, 2006, the Financial Accounting Standards Board ("FASB") released
FASB Interpretation No. 48 "Accounting for Uncertainty in Income Taxes" ("FIN
48"). FIN 48 provides guidance for how uncertain tax positions should be
recognized, measured, presented and disclosed in the financial statements. FIN
48 requires an evaluation of tax positions taken or expected to be taken in the
course of preparing the Fund's tax returns to determine whether the tax
positions are "more-likely-than-not" of being sustained by the applicable tax
authority. Tax positions not deemed to meet the more-likely-than-not threshold
would be recorded as a tax benefit or expense in the current year. Adoption of
FIN 48 is required for fiscal years beginning after December 15, 2006 and is to
be applied to all open tax years as of the effective date. At this time,
management believes that the adoption of FIN 48 will have not impact on the
financial statements of the Fund.
In September 2006, FASB issued FASB Statements No. 157, "Fair Value Measurement"
("SFAS 157"), which defines fair value, establishes a framework for measuring
fair value, and expands disclosures about fair value measurements. SFAS 157 is
effective for fiscal years beginning after November 15, 2007, and interim
periods within those fiscal years. The Fund believes adoption of SFAS 157 will
have no material impact on its financial statements.
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. If the value of the collateral falls below the
required amount of collateral, the Trust will require the seller to deposit
additional collateral.
3. INVESTMENT MANAGER, DISTRIBUTOR, ADMINISTRATOR, AND OTHER RELATED PARTY
TRANSACTIONS
Weiss Capital Management, Inc. (the "Manager") serves as the Investment Manager
to the Fund. Under an investment advisory agreement with the Trust, on behalf of
the Fund, the Manager provides continuous advice and recommendations concerning
the Fund's investments. To compensate the Manager for its services, the Fund
agreed to pay monthly a fee at the annual rate of 0.50% of 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, Treasurer and Trustee to the Trust.
Delray Financial Corporation ("Delray"), has been retained by the Manager to
provide sub-advisory services to the Fund. Under a subadvisory agreement with
the Manager, Delray renders continuous investment advice to the Manager as to
the invest-
9
THE WEISS FUND
NOTES TO THE FINANCIAL STATEMENTS
(CONTINUED)
ment of the Fund's assets. However, the Manager is responsible for implementing
the execution of transactions recommended by Delray in the exercise of the
Manager's independent judgment regarding the appropriateness of Delray's
investment recommendations for the Fund in accordance with its investment
objectives, policies and restrictions. The Manager pays Delray a fee out of the
investment advisory fees it receives from the Fund.
Weiss Capital Securities, Inc. (the "Distributor"), 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 the Fund. PFPC also serves as the Trust's Transfer
Agent, dividend disbursing agent and registrar. PFPC Trust Company serves as the
Custodian for the Fund's portfolio securities and cash. An officer of PFPC
serves as Assistant Treasurer of the Trust.
From January 1, 2007 until May 10, 2007, the Manager voluntarily agreed to limit
the Fund's expense ratio to 0.68% (exclusive of extraordinary and certain other
expenses). Effective May 11, 2007, the Manager increased the expense limitation
with respect to the Fund to an annual rate of 0.72% (exclusive of extraordinary
and certain other expenses) of the average net assets of the Fund. In order to
maintain this ratio, the Manager has waived a portion of its fees, which
amounted to $161,411.
The Chief Compliance Officer ("CCO") is an independent contractor of the
Manager*. The Fund reimburses the Manager for a portion of her salary allocated
to her duties as the CCO of the Fund. The level of reimbursement is reviewed and
determined by the Trustees at least annually. For the period ended June 30,
2007, the Fund reimbursed the Manager $6,000 for CCO fees.
Dechert LLP serves as legal counsel to the Trust.
Each non-interested Trustee receives an annual fee of $1,500, $1,250 for each
Board meeting attended, $500 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, 2007, the Fund's net assets consisted of:
<Table>
Paid in Capital............................................. $109,834,440
============
</Table>
As of June 30, 2007 the components of distributable earnings on a tax basis were
the same as above.
- ---------------
* Effective August 2, 2007, a new Chief Compliance Officer ("CCO") was appointed
who is an employee of the Manager.
10
THE WEISS FUND
NOTES TO THE FINANCIAL STATEMENTS
(CONTINUED)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
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.
The Manager, in its capacity as Investment Adviser to its clients' discretionary
assets, may use the Fund as an investment vehicle for its clients' cash assets.
As such, there may be large fluctuations in the size of the Fund's assets based
on the Manager's investment decisions. These fluctuations do not affect Fund
performance.
Transactions in capital shares for the period ended June 30, 2007 and the year
ended December 31, 2006, respectively, are summarized below.
<Table>
<Caption>
PERIOD ENDED JUNE 30, 2007 YEAR ENDED DECEMBER 31, 2006
--------------------------- -----------------------------
SHARES VALUE SHARES VALUE
------------ ------------- ------------- --------------
Shares Sold......... 79,995,582 $ 79,995,582 245,731,615 $ 245,731,615
Shares Reinvested... 2,447,699 2,447,699 4,724,836 4,724,836
Shares
Repurchased....... (99,167,564) (99,167,564) (229,818,329) (229,818,329)
------------ ------------- ------------ -------------
Net Increase
(Decrease)........ (16,724,283) $ (16,724,283) 20,638,122 $ 20,638,122
============ ============= ============ =============
</Table>
11
THE WEISS FUND
SUPPLEMENT INFORMATION -- FUND MANAGEMENT
Information pertaining to the Trustees and officers* of the Trust is set forth
below. The statement of additional information (SAI) includes additional
information about the Trustees and is available without charge, upon request, by
calling (800) 430-9617.
<Table>
<Caption>
- ----------------------------------------------------------------------------------------------------------------------------------
NUMBER OF
PORTFOLIOS OTHER
IN FUND TRUSTEESHIPS/
TERM OF OFFICE COMPLEX DIRECTORSHIPS
NAME, (AGE), ADDRESS AND AND LENGTH OF PRINCIPAL OCCUPATION(S) OVERSEEN HELD BY
POSITION(S) WITH TRUST TIME SERVED(1) DURING PAST 5 YEARS BY TRUSTEE TRUSTEE
- ------------------------ ------------------ -------------------------------------------------- ---------- -------------------
- ----------------------------------------------------------------------------------------------------------------------------------
DISINTERESTED TRUSTEES
- ----------------------------------------------------------------------------------------------------------------------------------
Jeffrey Pheterson, 55 Trustee since Attorney and Shareholder, Buckingham, Doolittle & 1 None
7111 Fairway Drive May 4, 2006 Burroughs, LLP (June 2005 - present); Attorney and
Suite 102 Shareholder, Law Offices of Pheterson & Bleau
Palm Beach Gardens, FL (January 1986 - June 2005).
33418
Trustee
- ----------------------------------------------------------------------------------------------------------------------------------
Robert Z. Lehrer, 73, Trustee since President, Wyndmoor Sales Co. Inc. 1 None
7111 Fairway Drive November 30, 1995 (1985 - present) (textiles).
Suite 102
Palm Beach Gardens, FL
33418
Trustee
- ----------------------------------------------------------------------------------------------------------------------------------
Donald Wilk, 70, Trustee since President, Donald Wilk Corporation 1 None
7111 Fairway Drive November 30, 1995 (1990 - present) (computer sales and credit card
Suite 102 processing).
Palm Beach Gardens, FL
33418
Trustee
- ----------------------------------------------------------------------------------------------------------------------------------
OFFICER(S) AND INTERESTED TRUSTEE
- ----------------------------------------------------------------------------------------------------------------------------------
Sharon A. Daniels, 46, President since President, The Weiss Fund, (February 1 None
7111 Fairway Drive February 10, 2005 2005 - present); President, Weiss Capital
Suite 102 Trustee since Securities, Inc., (June 2004 - Present);
Palm Beach Gardens, FL June 22, 2006 President, Weiss Capital Management, Inc. (June
33418 2004 - Present); Vice President, Weiss Research
President Inc., (February 2001 - June 2004); Group
Publisher, Weiss Research, Inc., February
2000 - February 2003).
- ----------------------------------------------------------------------------------------------------------------------------------
</Table>
* The term "officer" means the president, vice president, secretary, treasurer,
controller or any other officer who performs a policy making function.
(1) Each Trustee and officer serves for an indefinite term, until his/her
successor is duly elected and qualified.
12
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<Table>
<Caption>
- ----------------------------------------------------------------------------------------------------------------------------------
NUMBER OF
PORTFOLIOS OTHER
IN FUND TRUSTEESHIPS/
TERM OF OFFICE COMPLEX DIRECTORSHIPS
NAME, (AGE), ADDRESS AND AND LENGTH OF PRINCIPAL OCCUPATION(S) OVERSEEN HELD BY
POSITION(S) WITH TRUST TIME SERVED(1) DURING PAST 5 YEARS BY TRUSTEE TRUSTEE
- ------------------------ ------------------ -------------------------------------------------- ---------- -------------------
- ----------------------------------------------------------------------------------------------------------------------------------
OFFICER(S) WHO ARE NOT TRUSTEES
- ----------------------------------------------------------------------------------------------------------------------------------
Jeffrey Rano, 43 Secretary and Controller, Weiss Capital Management, Inc. 1 N/A
7111 Fairway Drive Treasurer since (December 2006 - present); Financial and
Suite 102 February 10, 2005, Operations Principal, Weiss Capital Securities,
Palm Beach Gardens, FL Inc. (May 2004 - present); Financial Planning
33418 Manager, Weiss Capital Management, Inc. (May
Secretary and Treasurer 2004 - present); Vice President and Financial
Operations Principal, VeraVest Investments, Inc.
(November 2002 - April 2004); Accountant,
Allmerica Financial Corporation (November
1993 - April 2004).
- ----------------------------------------------------------------------------------------------------------------------------------
David Castaldi, 43 Assistant Vice President and Director of Accounting and 1 N/A
103 Bellevue Parkway Treasurer Administration, PFPC Inc. (since 2001).
Wilmington, DE 19809 since January 1,
Assistant Treasurer 2006
- ----------------------------------------------------------------------------------------------------------------------------------
</Table>
* The term "officer" means the president, vice president, secretary,
treasurer, controller or any other officer who performs a policy making
function.
(1) Each Trustee and officer serves for an indefinite term, until his/her
successor is duly elected and qualified.
13
THE WEISS FUND
QUARTERLY PORTFOLIO SCHEDULES
The Fund files its complete schedule of portfolio holdings with the SEC for the
first and third fiscal quarters of each fiscal year (quarters ended March 31 and
September 30) on Form N-Q. The Fund's Form N-Q are available on the SEC's
website at http://www.sec.gov and may be reviewed and copied at the SEC's Public
Reference Room in Washington, DC. Information on the operation of the SEC's
Public Reference Room may be obtained by calling 1-800-SEC-0330.
PROXY VOTING
A description of the policies and procedures that the Fund uses to determine how
to vote proxies relating to portfolio securities and information regarding how
the Fund voted proxies relating to portfolio securities for the most recent
12-month period ended June 30 is available without charge, upon request by
calling 1-800-430-9617 and on the SEC's website at http://www.sec.gov.
14
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Officers
Sharon Parker-Daniels, President
Jeffrey Rano, Treasurer and Secretary
David Castaldi, Assistant Treasurer
Investment Manager
Weiss Capital Management, Inc.
7111 Fairway Drive
Suite 102
Palm Beach Gardens, FL 33418
Sub-Adviser
Delray Financial Corp.
4521 PGA Blvd.
Suite 265
Palm Beach Gardens, FL 33418
Administrator and Transfer Agent
PFPC Inc.
301 Bellevue Pkwy.
Wilmington, DE 19809
Distributor
Weiss Capital Securities, Inc.
7111 Fairway Drive
Suite 102
Palm Beach Gardens, FL 33418
Counsel
Dechert LLP
200 Clarendon Street, 27th Floor
Boston, MA 02116
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 FUND LOGO]
WEISS TREASURY
ONLY MONEY
MARKET FUND
SEMI-ANNUAL REPORT
TO SHAREHOLDERS
JUNE 30, 2007
WES0807
ITEM 2. CODE OF ETHICS.
Not applicable.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
Not applicable.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
Not applicable.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
Not applicable.
ITEM 6. SCHEDULE OF INVESTMENTS.
Schedule of Investments in securities of unaffiliated issuers as of the close of
the reporting period is included as part of the report to shareholders filed
under Item 1 of this form.
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES.
Not applicable.
ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Not applicable.
ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT
COMPANY AND AFFILIATED PURCHASERS.
Not applicable.
ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
There have been no material changes to the procedures by which the shareholders
may recommend nominees to the registrant's board of directors, where those
changes were implemented after the registrant last provided disclosure in
response to the requirements of Item 407(c)(2)(iv) of Regulation S-K (17 CFR
229.407) (as required by Item 22(b)(15) of Schedule 14A (17 CFR 240.14a-101)),
or this Item.
ITEM 11. CONTROLS AND PROCEDURES.
(a) The registrant's principal executive and principal financial officers,
or persons performing similar functions, have concluded that the
registrant's disclosure controls and procedures (as defined in Rule
30a-3(c) under the Investment Company Act of 1940, as amended (the
"1940 Act") (17 CFR 270.30a-3(c))) are effective, as of a date within
90 days of the filing date of the report that includes the disclosure
required by this paragraph, based on their evaluation of these
controls and procedures required by Rule 30a-3(b) under the 1940 Act
(17 CFR 270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b) under the
Securities Exchange Act of 1934, as amended (17 CFR 240.13a-15(b) or
240.15d-15(b)).
(b) There were no changes in the registrant's internal control over
financial reporting (as defined in Rule 30a-3(d) under the 1940 Act
(17 CFR 270.30a-3(d)) that occurred during the registrant's second
fiscal quarter of the period covered by this report that has
materially affected, or is reasonably likely to materially affect, the
registrant's internal control over financial reporting.
ITEM 12. EXHIBITS.
(a)(1) Not applicable.
(a)(2) Certifications pursuant to Rule 30a-2(a) under the 1940 Act and
Section 302 of the Sarbanes-Oxley Act of 2002 are attached hereto.
(a)(3) Not applicable.
(b) Certifications pursuant to Rule 30a-2(b) under the 1940 Act and
Section 906 of the Sarbanes-Oxley Act of 2002 are attached hereto.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
(registrant) The Weiss Fund
By (Signature and Title)* /s/ Sharon A. Parker-Daniels
-----------------------------------
Sharon A. Parker-Daniels, President
(principal executive officer)
Date August 6, 2007
---------------
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By (Signature and Title)* /s/ Sharon A. Parker-Daniels
-----------------------------------
Sharon A. Parker-Daniels, President
(principal executive officer)
Date August 6, 2007
---------------
By (Signature and Title)* /s/ Jeffrey S. Rano
-----------------------------
Jeffrey S. Rano, Treasurer
(principal financial officer)
Date August 6, 2007
---------------
* Print the name and title of each signing officer under his or her
signature.