-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, V0ySGz39AL1T9tIOwVTwMct2ZvZPCGmt5qD5az/U6Q7VkJkDKRdB2CFNKoOfhyq3 dm/vR0sK6WbXGi1ILvrCSg== 0000893220-07-002923.txt : 20070822 0000893220-07-002923.hdr.sgml : 20070822 20070822114747 ACCESSION NUMBER: 0000893220-07-002923 CONFORMED SUBMISSION TYPE: N-CSRS PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20070630 FILED AS OF DATE: 20070822 DATE AS OF CHANGE: 20070822 EFFECTIVENESS DATE: 20070822 FILER: COMPANY DATA: COMPANY CONFORMED NAME: WEISS FUND CENTRAL INDEX KEY: 0000949328 IRS NUMBER: 000000000 STATE OF INCORPORATION: MA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: N-CSRS SEC ACT: 1940 Act SEC FILE NUMBER: 811-09084 FILM NUMBER: 071072460 BUSINESS ADDRESS: STREET 1: 4176 BURNS RD CITY: PALM BEACH GARDENS STATE: FL ZIP: 33410 BUSINESS PHONE: 4076273300 MAIL ADDRESS: STREET 1: 4176 BURNS ROAD CITY: PALM BEACH GARDENS STATE: FL ZIP: 33410 FORMER COMPANY: FORMER CONFORMED NAME: WEISS TREASURY FUND DATE OF NAME CHANGE: 19950814 0000949328 S000002550 WEISS TREASURY ONLY MONEY MARKET FUND C000007019 WEISS TREASURY ONLY MONEY MARKET FUND WEOXX N-CSRS 1 w36868nvcsrs.txt WEISS FUNDS 2007 SEMI-ANNUAL REPORT 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.
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
- ------------ * 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.
U.S. Treasury Bills......................................... 49.8% Repurchase Agreement........................................ 50.0% Short-Term Investment....................................... 0.2% ------ 100.0% ======
2 THE WEISS FUND WEISS TREASURY ONLY MONEY MARKET FUND STATEMENT OF NET ASSETS, JUNE 30, 2007 (UNAUDITED)
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 ----------
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)
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 ============
- ------------ * 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) 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 ==========
See accompanying notes to financial statements. 5 THE WEISS FUND STATEMENT OF CHANGES IN NET ASSETS
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 ============ ============
See accompanying notes to financial statements. 6 THE WEISS FUND FINANCIAL HIGHLIGHTS FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
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%
- ------------ (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: Paid in Capital............................................. $109,834,440 ============
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.
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 ============ ============= ============ =============
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.
- ---------------------------------------------------------------------------------------------------------------------------------- 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). - ----------------------------------------------------------------------------------------------------------------------------------
* 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 - -------------------------------------------------------------------------------- - --------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------------------- 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 - ----------------------------------------------------------------------------------------------------------------------------------
* 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 (This page intentionally left blank) 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. EX-99.CERT 2 w36868exv99wcert.txt CERTIFICATIONS CERTIFICATION PURSUANT TO RULE 30A-2(A) UNDER THE 1940 ACT AND SECTION 302 OF THE SARBANES-OXLEY ACT I, Sharon A. Parker-Daniels, certify that: 1. I have reviewed this report on Form N-CSR of The Weiss Fund; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report; 4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have: (a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; (b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; (c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and (d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the 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; and 5. The registrant's other certifying officer(s) and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): (a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and (b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. Date: August 6, 2007 /s/ Sharon A. Parker-Daniels -------------- ----------------------------------- Sharon A. Parker-Daniels, President (principal executive officer) CERTIFICATION PURSUANT TO RULE 30A-2(A) UNDER THE 1940 ACT AND SECTION 302 OF THE SARBANES-OXLEY ACT I, Jeffrey S. Rano, certify that: 1. I have reviewed this report on Form N-CSR of The Weiss Fund; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report; 4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have: (a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; (b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; (c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and (d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the 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; and 5. The registrant's other certifying officer(s) and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): (a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and (b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. Date: August 6, 2007 /s/ Jeffrey S. Rano --------------- ----------------------------- Jeffrey S. Rano, Treasurer (principal financial officer) EX-99.906CERT 3 w36868exv99w906cert.txt CERTIFICATIONS PURSUANT TO SECTION 906 OF SARBANES-OXLEY ACT CERTIFICATION PURSUANT TO RULE 30A-2(B) UNDER THE 1940 ACT AND SECTION 906 OF THE SARBANES-OXLEY ACT I, Sharon A. Parker-Daniels, President of The Weiss Fund (the "Registrant"), certify that: 1. The Form N-CSR of the Registrant (the "Report") fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and 2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Registrant. Date: August 6, 2007 /s/ Sharon A. Parker-Daniels -------------- ----------------------------------- Sharon A. Parker-Daniels, President (principal executive officer) I, Jeffrey S. Rano, Treasurer of The Weiss Fund (the "Registrant"), certify that: 1. The Form N-CSR of the Registrant (the "Report") fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and 2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Registrant. Date: August 6, 2007 /s/ Jeffrey S. Rano -------------- ----------------------------- Jeffrey S. Rano, Treasurer (principal financial officer) -----END PRIVACY-ENHANCED MESSAGE-----