The Weiss Bear Strategy

Important Disclaimers and Disclosures

INVESTMENT RISK

Past performance is not indicative of future results and as with any investment program it is possible to lose money by investing in the program. There are no guarantees that the program will be able to achieve its stated objectives.

SUITABILITY

The Weiss Bear Strategy is suitable for investors with an aggressive risk tolerance seeking to benefit during prolonged periods of stock/bond market declines. The suitability of this program for IRAs, 401(k)s and other retirement plans is at the discretion of the plan’s sponsor or fiduciary. The program has a recommended holding period of three-to-five years and is not recommended for keep-safe funds. In pursuing the Weiss Bear Strategy’s investment objective through the purchase and sale of mutual fund shares, Weiss Capital Management, Inc.’s investment team does not consider either a fund’s potential for generation of current income through declaration of and payment of income, dividends or capital gains distributions, or the tax consequences of buying and selling fund shares. Please consult with your tax adviser before investing in the program.

PERFORMANCE

Performance of the Weiss Bear Strategy depends on the performance of the underlying mutual funds in which it invests. In turn, performance of the underlying mutual funds depends on the performance of equity and fixed-income markets.

Returns are based on a composite of actual client accounts. Individual client returns may vary depending on, among other things, account opening date, contributions, withdrawals, and fees. Actual fees may vary depending on, among other things, the applicable fee schedule and portfolio size.

Net returns cited include actual management fees, commissions, and other similar fees charged on transactions, and reinvestment of dividends, income and capital gains. Gross returns cited exclude management fees and are net of actual commissions and other similar fees charged on transactions, and include dividends, income and capital gains.

BENCHMARK

The S&P 500 Index is a capitalization-weighted index that consists of 500 large-cap US stocks, which assumes the reinvestment of dividends and capital gains, and excludes management fees, transactions costs and expenses. It is not possible to invest in an index. Index return data source:  Bloomberg.

IMPORTANT DISCLOSURES

Additional expenses such as transaction costs associated with purchases made through the custodian may be incurred. Mutual funds are also subject to expenses, which are shared indirectly by all shareholders.

This strategy’s portfolio may be rebalanced as deemed necessary by the portfolio manager. Rebalancing may generate additional fees.

The Weiss Bear Strategy may invest in the Weiss Treasury Only Money Market Fund, which Weiss Capital Management, Inc., or its affiliates provide advisory, administrative, distribution and other services, and receive compensation. 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.  A prospectus can be obtained online at www.WeissFund.com.

• October 1, 2005, the Program’s stated annual management fee was lowered to 1.50% from 2.00%.
  
  
• October 1, 2005 the Program’s minimum investment was lowered to $50,000 from $100,000.
  
  
• April 1, 2005, Sebastian Leburn, CFA, became the portfolio manager. Prior to this date, Anthony Sagami of Harvest Advisors was the sub-adviser.

For additional program information, please read the firm’s ADV Part II before investing.