<PAGE>
--------------------------------------------------------------------------------
DAILY TAX FREE 600 FIFTH AVENUE, NEW YORK, NY 10020
INCOME FUND, INC. 212-830-5200
================================================================================
Dear Shareholder:
We are pleased to present the semi-annual report of Daily Tax Free Income Fund,
Inc. for the period November 1, 1999 through April 30, 2000.
The Fund had net assets of $810,867,932 and 4,674 active shareholders.
We thank you for your support and look forward to continuing to serve your cash
management needs.
Sincerely,
\s\Steven W. Duff
Steven W. Duff
President
--------------------------------------------------------------------------------
<PAGE>
--------------------------------------------------------------------------------
DAILY TAX FREE INCOME FUND, INC.
STATEMENT OF NET ASSETS
APRIL 30, 2000
(UNAUDITED)
================================================================================
<TABLE>
<CAPTION>
Ratings (a)
-----------------
Face Value Standard
Amount Yield (Note 1) Moody's & Poor's
------ ----- ------ ------- -------
Variable Rate Demand Instruments - Participations (1.29%)
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
$ 84,582 The Bank of New York LOC covering two issues due 05-01-01 5.25% $ 84,582 P1 A1+
9,421,319 Chase Manhattan Bank LOC covering five issues due 09-01-00
through 05-01-13 4.95% to 5.85% 9,421,319 P1 A1+
95,633 The First National Bank of Maryland LOC covering two issues
due 12-15-00 through 09-15-02 5.40% 95,633 P1 A1
845,000 PNC Bank, N.A. LOC covering one issue due 07-01-03 6.90% 845,000 P1 A1
------------ --------------
10,446,534 Total Variable Rate Demand Instruments - Participations 10,446,534
------------ --------------
<CAPTION>
Variable Rate Demand Instruments - Private Placements (5.76%)
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
$ 360,000 Banc One Arizona LOC covering one issue due 04-01-05 5.85% $ 360,000 P1 A1
1,500,000 Banque Nationale de Paris LOC covering one issue due 12-01-00 5.40% 1,500,000 P1 A1+
20,750 Comerica Bank - Detroit LOC covering one issue due 06-01-00 5.40% 20,750 P1 A1
2,000,000 Creditanstalt-Bankverein LOC covering one issue due 06-01-10 5.40% 2,000,000 P1 A1+
1,500,000 Dresdner Bank AG LOC covering one issue due 12-28-14 5.40% 1,500,000 P1 A1+
4,645,000 The First National Bank of Maryland LOC covering one issue due 12-01-20 4.65% 4,645,000 P1 A1
2,347,855 The Huntington National Bank LOC covering one issue due 10-01-05 6.12% 2,347,855 P1 A1
981,666 Key Bank, N.A. LOC covering one issue due 07-01-15 5.40% 981,666 P1 A1
250,000 Norwest Bank, N.A. LOC covering two issues
due 07-01-00 through 07-01-01 5.58% to 5.85% 250,000 P1 A1+
1,273,000 PNC Bank, N.A. LOC covering one issue due 06-30-02 5.85% 1,273,000 P1 A1+
10,711,300 Seattle-First National Bank LOC Backed by Bank of America NT & SA LOC
covering five issues due 01-01-05 through 11-15-15 5.85% 10,711,300 P1 A1
4,000,000 Societe Generale LOC covering one issue due 11-01-05 5.40% 4,000,000 P1 A1+
10,866,000 Union Bank of California LOC covering three issues due 12-01-15 5.40% 10,866,000 P1 A1+
1,100,000 Wells Fargo Bank, N.A. LOC covering two issues
due 12-15-04 through 08-01-05 5.49% 1,100,000 P1 A1+
3,625,000 York Bank and Trust LOC covering one issue due 12-01-14 4.60% 3,625,000 P1 A1
1,553,744 Zion's National Bank Liquidity Facility covering one issue due 12-10-15 5.85% 1,553,744 P1 A2
------------ --------------
46,734,315 Total Variable Rate Demand Instruments - Private Placements 46,734,315
------------ --------------
</TABLE>
<TABLE>
<CAPTION>
Ratings (a)
----------------
Face Maturity Value Standard
Amount Date Yield (Note 1) Moody's & Poor's
----- ---- ----- ------ ------- --------
Other Tax Exempt Investments (15.49%)
-----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
$5,000,000 Allegheny County, Port Authority GAN 06/30/00 3.23% $ 5,005,712 MIG-1
1,040,000 Burleigh County, ND Bismarck Public School District (b) 05/01/00 4.40 1,040,000
</TABLE>
--------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
<PAGE>
--------------------------------------------------------------------------------
================================================================================
<TABLE>
<CAPTION>
Ratings (a)
-----------------
Face Maturity Value Standard
Amount Date Yield (Note 1) Moody's & Poor's
------ ---- ----- ------ ------- --------
Other Tax Exempt Investments (Continued)
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
$ 7,370,000 Campbell County, WY School District # 1 TAW - Series 1997 (b) 06/28/00 3.30% $ 7,374,510
4,650,000 City of Lawrence, KS GO Temporary Notes - Series 1999 06/01/00 3.20 4,650,000 MIG-1
4,460,000 City of Lawrence, KS GO Temporary Notes - Series 1999 10/01/00 3.80 4,460,000 MIG-1
9,030,000 City of Westbrook, ME GO BAN - Series 1999 06/30/00 3.46 9,030,415 MIG-1 SP-1+
4,500,000 Duneland, IN Independent School District (b) 12/29/00 4.24 4,502,860
4,000,000 Erie County, PA TRAN 12/15/00 3.99 4,010,802 MIG-1
4,000,000 Hilliard, OH School District GO 05/25/00 3.90 4,001,812 MIG-1
1,245,000 Iowa Higher Education Loan Authority (William Penn College) (b)
LOC Mercantile National Bank 05/24/00 3.30 1,245,114
5,000,000 Kelso, WA GAN (b) 02/25/01 4.50 5,000,000
5,000,000 Kentucky Interlocal School TRAN 06/30/00 3.49 5,003,538 MIG-1 SP-1+
795,000 Lake Country, WI School District TAN (b) 09/22/00 3.99 795,211
5,000,000 Linn County, IA
Cedar Rapids Community School District - Series 1999 (b) 07/07/00 3.35 5,000,439
1,900,000 Luxemburg - Casco, WI School District TRAN (b) 08/25/00 4.24 1,900,587
7,000,000 Merrimack County, NH TAN (b) 12/29/00 4.20 7,001,768
3,910,000 Missouri HEFA RAN (Drury College) 04/29/00 3.50 3,910,000 SP-1+
2,055,000 Missouri HEFA RAN (Kirksville College of Osteopa) 04/29/00 3.50 2,055,000 SP-1+
1,200,000 Montgomery County, PA GO Bond (b) 07/15/00 3.30 1,200,000
3,610,000 Multinomah County, OR School District #1
Insured by MBIA Insurance Corp. 06/01/00 3.22 3,610,058 Aaa AAA
2,100,000 Palmyra-Eagle School District TRAN (b) 10/10/00 3.89 2,100,624
1,390,000 Pennsylvania Intergovernmental (Philadelphia Funding Program)
Insured by FGIC 06/15/00 3.17 1,392,076 Aaa AAA
5,000,000 Racine Unified School District TRAN 07/06/00 3.40 5,001,874 MIG-1
2,950,000 Spartanburg, SC School District #1 GO BAN - Series 1999 (b) 06/01/00 3.29 2,950,361
17,000,000 State of Texas State TRAN 08/31/00 3.69 17,039,875 MIG-1 SP-1+
8,000,000 State of Texas State TRAN 08/31/00 3.84 8,013,635 MIG-1 SP-1+
2,500,000 Watertown, WI Unified School District (b) 11/01/00 3.84 2,501,207
3,250,000 Wisconsin School District (b) 09/28/00 4.03 3,250,000
2,570,000 Wisconsin School District (b) 11/01/00 4.30 2,570,000
----------- ---------------
125,525,000 Total Other Tax Exempt Investments 125,617,478
----------- ---------------
</TABLE>
--------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
<PAGE>
--------------------------------------------------------------------------------
DAILY TAX FREE INCOME FUND, INC.
STATEMENT OF NET ASSETS (CONTINUED)
APRIL 30, 2000
(UNAUDITED)
================================================================================
<TABLE>
<CAPTION>
Ratings (a)
-----------------
Face Maturity Value Standard
Amount Date Yield (Note 1) Moody's & Poor's
------ ---- ----- ------ ------- --------
Other Variable Rate Demand Instruments (c) (64.07%)
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$ 1,000,000 Allegheny County, PA Hospital Development Authority
(St. Francis System Health Center)
LOC Bank One 11/01/27 5.50% $ 1,000,000 VMIG-1 A1+
1,400,000 Allentown, PA Area Hospital Authority RB (Sacred Heart Hospital)
LOC First Union National Bank 07/01/23 5.10 1,400,000 VMIG-1
12,900,000 Angelina & Neches River, TX
Industrial Development Corporation Solid Waste RB
LOC Wells Fargo Bank 05/01/14 5.85 12,900,000 P1
5,000,000 Apache County, AZ IDA (Tucson Electric) - Series 1983
LOC Societe Generale 12/15/18 5.00 5,000,000 VMIG-1 A1+
1,000,000 Ashland, KY PCRB (Ashland Oil Inc. Project)
LOC Suntrust Bank 04/01/09 4.90 1,000,000 VMIG-1
4,700,000 Brazos River, TX Harbor Naval District (Badishce Corporation Facility)
LOC Credit Suisse First Boston 12/01/19 4.10 4,700,000 A1+
7,000,000 California PCFA (Southern California Edison) 02/28/08 6.15 7,000,000 VMIG-1 A1+
5,100,000 Carlton, WI PCRB (Wisconsin Power & Light) - Series B 09/01/05 5.85 5,100,000 P1 A1+
3,495,000 Chelan County, WA Public Utilities District #001
(Chelan Hydro Project) - Series A
Insured by MBIA Insurance Corp. 06/01/15 5.10 3,495,000 VMIG-1 A1+
2,000,000 Chicago, IL O'Hara International Airport (American Airlines) - Series C
LOC Credit Suisse First Boston 12/01/17 5.80 2,000,000 P1
2,300,000 Chicago, IL O'Hara International Airport (American Airlines) - Series C
LOC Royal Bank of Canada 12/01/17 5.80 2,300,000 P1
5,300,000 City of Burlington, KS Environmental Improvement
(Kansas City Power & Light Co.) 09/01/15 5.25 5,300,000 VMIG-1 A1
3,000,000 City of Jacksonville, FL (Florida University)
LOC Bank of America 07/01/19 5.85 3,000,000 VMIG-1
3,000,000 City of Mobile, AL IDB (Alabama Power Company) - Series 1994 06/01/15 5.80 3,000,000 P1 A1
7,000,000 City of Valdez, AK Marine Terminal TRAN - Series 1994B 05/01/31 5.05 7,000,000 VMIG-1 A1
6,420,000 Clarksville, TN Public Building Authority Pooled Financing RB
LOC Bank of America 06/01/24 5.10 6,420,000 A1+
1,000,000 Columbia, AL IDRB (Alabama Power Company) - Series A 05/01/22 5.80 1,000,000 VMIG-1 A1
31,100,000 Commonwealth of Puerto Rico 07/30/00 6.10 31,100,000 VMIG-1
3,100,000 Connecticut State HEFA (Yale University) 07/01/29 5.20 3,100,000 VMIG-1 A1+
6,000,000 Cuyahoga County, OH HRB (The Cleveland Clinic) - Series D 01/01/26 5.80 6,000,000 VMIG-1 A1+
17,000,000 Dallas Area Rapid Transit
LOC Dexia Credit Locale de France 01/05/05 5.05 17,000,000 VMIG-1 A1+
</TABLE>
--------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
<PAGE>
--------------------------------------------------------------------------------
================================================================================
<TABLE>
<CAPTION>
Ratings (a)
-----------------
Face Maturity Value Standard
Amount Date Yield (Note 1) Moody's & Poor's
------ ---- ----- ------ ------- --------
Other Variable Rate Demand Instruments (c) (Continued)
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$1,100,000 Dearfield, WI IDA (Interpane Coatings Project) (b)
LOC Commerzbank A.G. 05/01/03 5.10% $ 1,100,000
14,600,000 DeKalb County, GA Housing Authority
LOC Bank of Montreal 12/01/07 5.05 14,600,000 A1+
4,500,000 Delta County, MI EDC
(Mead Escanaba Environmental Improvement) - Series D
LOC Credit Suisse First Boston 12/01/23 5.80 4,500,000 P1
900,000 Detroit, MI Water Supply System
Insured by FGIC 07/01/13 5.05 900,000 VMIG-1 A1+
3,300,000 Emmaus, PA General Authority Local Government RB
(Bond Pool Project) - Series 1989G-2
LOC Bayerische HypoVereinsbank 03/01/24 5.10 3,300,000 A1
9,800,000 Emmaus, PA General Authority Local Government RB
(Bond Pool Project) - Series 1989G-14
LOC Bayerische Landesbank 03/01/24 5.10 9,800,000 A1+
100,000 Fairfax, VA IDA (Fairfax Hospital System, Inc.) 10/01/25 4.95 100,000 VMIG-1 A1+
6,350,000 Florida HFA (Springs Colony)
Guaranteed by Federal National Mortgage Association 09/15/26 5.05 6,350,000 A1+
5,000,000 Florida State Municipal Power Agency (Stanton Project)
Insured by MBIA Insurance Corp. 10/01/19 5.00 5,000,000 A1
2,250,000 Franklin County, OH RB
(The Villas at Saint Therse Project) - Series 1997F (b)
LOC Fifth Third Bank 10/01/22 5.10 2,250,000
1,000,000 Greensboro, NC Variable Public Improvement 04/01/14 5.05 1,000,000 VMIG-1 A1+
5,600,000 Gulf Coast, TX Waste Disposal (Exxon Corp. Baytown Chemical) 06/01/20 6.05 5,600,000 VMIG-1 A1+
1,300,000 Harris County, TX PCR (Exxon Project) - Series A 03/01/24 5.80 1,300,000 A1+
6,000,000 Hayward, CA MHRB Authority (Barrington Hills) - Series A
Guaranteed by Federal National Mortgage Association 06/15/25 4.90 6,000,000 A1+
6,250,000 Hillsborough County, FL IDA (Tampa Electric Company Gannon) 05/15/18 6.05 6,250,000 VMIG-1 A1+
4,700,000 Illinois Development Finance Authority
(James Jordan Boys & Girls Club &
Family Life Center Project) - Series 1995
LOC American National Bank & Trust Company of Chicago/
LaSalle National Bank 08/01/30 5.05 4,700,000 A1+
2,200,000 Illinois Development Finance Authority
(Trinity International University)
LOC Firstar Bank 10/01/30 5.15 2,200,000 A1
2,000,000 Illinois Education Loan Facility RB (Lake County Family YMCA)
LOC Harris Trust & Savings Bank 11/01/30 5.00 2,000,000 A1+
</TABLE>
--------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
<PAGE>
--------------------------------------------------------------------------------
DAILY TAX FREE INCOME FUND, INC.
STATEMENT OF NET ASSETS (CONTINUED)
APRIL 30, 2000
(UNAUDITED)
================================================================================
<TABLE>
<CAPTION>
Ratings (a)
-----------------
Face Maturity Value Standard
Amount Date Yield (Note 1) Moody's & Poor's
------ ---- ----- ------ ------- --------
Other Variable Rate Demand Instruments (c) (Continued)
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$ 1,000,000 Illinois Development Finance Authority
(Amoco Oil Company Project) - Series 1994 11/01/12 6.05% $ 1,000,000 VMIG-1 A1+
3,400,000 Illinois Development Finance Authority RB
(Glennwood School for Boys)
LOC Harris Trust & Savings Bank 02/01/33 5.00 3,400,000 A1+
13,400,000 Illinois HEFA (Northwestern Memorial Hospital) 08/15/25 5.85 13,400,000 VMIG-1 A1+
4,900,000 Illinois HFFA RB (St. Lukes Medical Center)
Insured by MBIA Insurance Corp. 11/15/23 5.10 4,900,000 VMIG-1 A1+
6,000,000 Illinois IDFA Chicago Educational Television - Series 1994A
LOC Harris Trust & Savings Bank 11/01/14 5.00 6,000,000 VMIG-1
19,400,000 Illinois Museum of Contemporary Art 1994
LOC Northern Trust\Harris Trust\LaSalle National\
National Bank of Detroit 02/01/29 5.05 19,400,000 VMIG-1 A1+
1,000,000 Independence, MO IDA (Groves and Grace)
LOC Dexia Credit Locale de France 11/01/27 6.00 1,000,000 A1+
1,800,000 Iowa Finance Authority RB (Private School Facility - Kuemper) (b)
LOC Allied Irish Bank 06/01/28 6.05 1,800,000
3,000,000 Jackson County, MI EDC (Thrifty Leoni) (b)
LOC Bank One 12/01/14 5.22 3,000,000
5,000,000 Jacksonville, FL Electrical Authority (Electric System 10/01/10 5.80 5,000,000 VMIG-1 A1+
5,000,000 Kentucky EDFA (Pooled Hospital Loan Program) 08/01/18 5.20 5,000,000 A1+
5,000,000 Lincoln County, WY PCRB (Exxon Corporation) - Series 1985 08/01/15 6.05 5,000,000 A1+
5,000,000 Long Island Power Authority RB Electric System
Insured by MBIA Insurance Corp. 04/01/25 5.00 5,000,000 VMIG-1 A1+
5,000,000 Long Island Power Authority RB Electric System
LOC ABN AMRO Bank and Morgan Guaranty Trust Company 05/01/33 5.90 5,000,000 VMIG-1 A1+
5,000,000 Lubbock, TX Educational Facilities Authority
(Lubbock Christian University) 05/01/29 5.10 5,000,000 VMIG-1
4,000,000 Massachusetts HEFA Capital Asset Program - Series C
Insured by MBIA Insurance Corp. 07/01/05 6.00 4,000,000 VMIG-1 A1+
10,000,000 Massachusetts State HEFA RB (Harvard University) 11/01/49 5.00 10,000,000 VMIG-1 A1+
5,000,000 Mecklenburg County, NC Variable RB - Series C 02/01/17 5.00 5,000,000 VMIG-1 A1
3,000,000 Michigan State Strategic Fund Limited RB
(Detroit Edison Company) - Series CC
LOC Barclays Bank PLC 09/01/30 5.85 3,000,000 P1 A1+
5,210,000 Missouri State HEFA (Barnes Hospital)
LOC Morgan Guaranty Trust Company 12/01/15 5.05 5,210,000 VMIG-1 A1+
</TABLE>
--------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
<PAGE>
--------------------------------------------------------------------------------
================================================================================
<TABLE>
<CAPTION>
Ratings (a)
-----------------
Face Maturity Value Standard
Amount Date Yield (Note 1) Moody's & Poor's
------ ---- ----- ------ ------- --------
Other Variable Rate Demand Instruments (c) (Continued)
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$2,000,000 Monroe County, MI Education Limited Obligation RB
(Detroit Edison) - Series CC
LOC Barclays Bank PLC 10/01/24 5.85% $ 2,000,000 P1
4,290,000 Montgomery County, MD EDC RB
(Brooke Grove Foundations, Incorporated Facilities) - Series 1995
LOC First National Bank of Maryland 01/01/16 4.62 4,290,000 A1
1,900,000 Montgomery County, TX IDRB
(Houston Area Residential Center Project) - Series 1985
LOC Banque Nationale de Paris 12/01/15 4.95 1,900,000 A1
13,600,000 Montgomery County, TX MHRB (Oakwood-Gainsburg)
Guaranteed by Federal Home Loan Mortgage Corporation 11/01/07 5.05 13,600,000 A1+
2,300,000 Montgomery County, OH RB (Miami Valley Hospital) - Series A 11/15/22 5.80 2,300,000 VMGI-1
4,030,000 Multnomah County, OR (Concordia University Portland)
LOC Allied Irish Bank 12/01/29 6.05 4,030,000 VMIG-1
900,000 New Mexico State Highway Commission Adjustable Tender
Subordinate Lien Tax Revenue Highway Bonds - Series 1996
Insured by FSA 06/15/11 5.00 900,000 VMIG-1 A1+
2,500,000 New York City, NY GO - Series E-5
LOC Morgan Guaranty Trust Company 08/01/16 6.00 2,500,000 VMIG-1 A1+
1,000,000 New York State Energy Research & Develoment Authority
(Nigara Mohawk Power Corporation)
LOC Toronto Dominion Bank 03/01/27 5.75 1,000,000 P1
200,000 Norfolk, VA IDA (Hospital Facilities Childrens Project) (b)
LOC Wachovia Bank & Trust Co., N.A. 06/01/20 5.10 200,000
7,800,000 North Carolina Medical Care Commission HRB
(Duke University) - Series A 06/01/23 5.05 7,800,000 VMIG-1 A1+
20,000,000 Orange County, CA Apartments Development RB - Series A
Guaranteed by Federal Home Loan Mortgage Corporation 12/01/06 5.05 20,000,000 A1+
4,300,000 Orange County, FL Health Facilities (Adventist)
LOC Suntrust Bank 11/15/14 5.15 4,300,000 VMIG-1 A1+
5,115,000 Orange County, FL HFA MHRB (Post Fountains Project)
Guaranteed by Federal National Mortgage Association 06/01/25 5.05 5,115,000 A1+
5,800,000 Oregon State GO VR - Series 73F
LOC Bayerische Landesbank 12/01/17 5.00 5,800,000 VMIG-1 A1+
1,700,000 Palm Beach County, FL RB (Henry Morrison Flagler Project)
LOC Northern Trust 11/01/34 5.00 1,700,000 A1+
2,000,000 Palm Beach County, FL RB (Jewish Community Campus Corporation)
Insured by AMBAC Indemnity Corp. 03/01/27 5.00 2,000,000 A1+
</TABLE>
--------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
<PAGE>
--------------------------------------------------------------------------------
DAILY TAX FREE INCOME FUND, INC.
STATEMENT OF NET ASSETS (CONTINUED)
APRIL 30, 2000
(UNAUDITED)
================================================================================
<TABLE>
<CAPTION>
Ratings (a)
-----------------
Face Maturity Value Standard
Amount Date Yield (Note 1) Moody's & Poor's
------ ---- ----- ------ ------- --------
Other Variable Rate Demand Instruments (c) (Continued)
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$ 4,000,000 Palm Beach County, FL IDRB (Northern Gallery of Art Project)
LOC Northern Trust 05/01/25 4.95% $ 4,000,000 A1+
2,200,000 Pacificorp Project (Utah Pollution Control) - Series 1991
LOC Credit Suisse First Boston 07/01/15 5.00 2,200,000 P1 A1+
1,200,000 Parish of St. Charles, LA (Shell Oil Company Project) 10/01/22 6.00 1,200,000 VMIG-1 A1+
2,000,000 Parish of St. Charles, LA (Shell Oil Company Project) 10/01/25 5.80 2,000,000 VMIG-1 A1+
8,000,000 Pasco County, FL School Board COPS
Insured by AMBAC Indemnity Corp. 08/01/26 5.00 8,000,000 VMIG-1 A1+
800,000 Penninsula Port Authority of Virginia Coal Terminal RB
(Dominion Terminal Project) - Series 1987D
LOC Barclays Bank PLC 07/01/16 6.10 800,000 P1 A1+
1,600,000 Pennsylvania HEFA (Carnegie Mellon University)
LOC Morgan Guaranty Trust Company & Union Bank of Switzerland 11/01/30 5.80 1,600,000 A1+
1,200,000 Petersburg, VA HRB
LOC First Union National Bank 07/01/17 6.00 1,200,000 A1
800,000 Philadelphia, PA Hospital & Higher Facility HRB
(Friends Hospital) - Series A (b)
LOC PNC Bank, N.A. 03/01/06 5.10 800,000
7,350,000 Phoenix, AZ IDA MHRB Refunding
(Bell Square Apartments Project) - Series 1995
LOC General Electric Capital Corporation 06/01/25 5.15 7,350,000 A1+
3,500,000 Phoenix, AZ IDA MHRB Refunding
(Paradise Lake Apartments Project) - Series 1995
LOC General Electric Capital Corporation 07/01/25 5.15 3,500,000 A1+
4,815,000 Pinellas County, FL Health Facilities (St. Mark's Village Project)
LOC Bank of America 03/01/17 5.10 4,815,000 A1+
1,000,000 Pitkin County, IDRB (Aspen Skiing Company Project)
LOC Bank One 04/01/16 5.85 1,000,000 A1+
1,300,000 Port of Corpus Christi, TX (Reynolds Metals Co. Project)
LOC Westdeutche Landesbank 09/01/14 4.70 1,300,000 P1 A1+
2,300,000 Port of Port Authority Navigation (Jefferson County for Texaco) 10/01/24 6.10 2,300,000 VMIG-1 A1
50,000 Portsmouth, VA IDA (Fairwood Homes Project)
LOC Bank of America 11/01/27 5.05 50,000 A1+
2,550,000 Prince George County, MD EDC RB (b)
LOC Fleet National Bank & Trust 09/30/15 5.85 2,550,000
2,700,000 Putnam County, GA Development Authority PCRB
(Georgia Power Company Plant) 09/01/29 5.80 2,700,000 P1 A1
</TABLE>
--------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
<PAGE>
--------------------------------------------------------------------------------
================================================================================
<TABLE>
<CAPTION>
Ratings (a)
-----------------
Face Maturity Value Standard
Amount Date Yield (Note 1) Moody's & Poor's
------ ---- ----- ------ ------- --------
Other Variable Rate Demand Instruments (c) (Continued)
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$3,000,000 Raleigh Durham, NC Airport Authority
(American Airlines) - Series 1995A
LOC Bank of America 11/01/05 3.80% $ 3,000,000 A1+
1,100,000 Raleigh Durham, NC Airport Authority
(American Airlines) - Series 1995A
LOC Bank of America 11/01/15 6.10 1,100,000 A1+
2,200,000 Raleigh Durham, NC Airport Authority
(American Airlines) - Series 1995B
LOC Bank of America 11/01/15 6.10 2,200,000 A1+
950,000 Richmond, VA Capital Region Airport
(Richmond International Airport)
Insured by AMBAC Indemnity Corp. 07/01/25 5.05 950,000 VMIG-1 A1+
245,000 Richmond, VA IDA RB (Union University)
LOC Bank of America 12/01/07 5.10 245,000 A1+
3,700,000 Roanoke,VA IDA (Carilion Health System) 07/01/27 6.00 3,700,000 VMIG-1 A1+
2,475,000 St. Cloud, MN Commercial Development (Kelly Inn Project) (b)
LOC First Bank of South Dakota 04/01/13 5.10 2,475,000
2,900,000 Salina, KS (Dillards Project)(b)
LOC Bank of America 12/01/14 5.35 2,900,000
1,600,000 Salt Lake City, UT PCRB
(Service Station Holdings - British Petroleum Oil) 08/01/07 5.80 1,600,000 P1 A1+
3,700,000 Salt Lake City, UT PCRB
(Service Station Holdings - British Petroleum Oil) 02/01/08 6.05 3,700,000 P1 A1+
4,300,000 San Antonio, TX IDA (Rivercenter Project)(b)
LOC PNC Bank, N.A. 12/01/12 5.10 4,300,000
2,130,000 Sarpy County, NE PCRB (Allied Signal, Inc. Project) - Series 1995 07/01/13 5.15 2,130,000 A1
2,000,000 Southgate, MI EDC EDRB (Trust Realty Corporation Project)
LOC Bankers Trust Company 10/01/18 5.22 2,000,000 A1
1,000,000 Southwest Higher Education Authority
(Southern Methodist University)
LOC Landesbank Hessen 07/01/15 6.10 1,000,000 VMIG-1
5,100,000 State of Ohio Environmental Improvement (U.S. Steel Corp. USX)
LOC PNC Bank, N.A. 12/01/01 4.20 5,100,000 P1
2,800,000 State of Oregon (Eagle Picher Industries)
LOC ABN AMRO Bank 12/01/04 4.75 2,800,000 P1 A1+
320,000 Suffolk, VA Redevelopment and Housing Authority
(Oak Spring Apartments. L.L.C.)
Guaranteed by Federal Home Loan Mortgage Corporation 12/01/19 5.05 320,000 VMIG-1
5,000,000 Sunshine State Government Financing Commission RB - Series 1986
Insured by AMBAC Indemnity Corp. 07/01/16 5.00 5,000,000 VMIG-1
</TABLE>
--------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
<PAGE>
--------------------------------------------------------------------------------
DAILY TAX FREE INCOME FUND, INC.
STATEMENT OF NET ASSETS (CONTINUED)
APRIL 30, 2000
(UNAUDITED)
================================================================================
<TABLE>
<CAPTION>
Ratings (a)
-----------------
Face Maturity Value Standard
Amount Date Yield (Note 1) Moody's & Poor's
------ ---- ----- ------ ------- --------
Other Variable Rate Demand Instruments (c) (Continued)
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$ 3,000,000 Tampa, FL Health Care Facilities (Lifelink Foundation Inc. Project) (b)
LOC Suntrust Bank 08/01/22 5.10% $ 3,000,000
1,675,000 Terre Haute, IN EDRB (Westminster Village Terre Haute Inc.)(b)
LOC Huntington National Bank 07/01/01 5.53 1,675,000
3,200,000 Texas Water Development Board 03/01/15 5.80 3,200,000 VMIG-I A1+
2,000,000 Town of Hurley, NM PCRB
(Kennecott Santa Fe-British Petroleum Oil) 12/01/15 6.05 2,000,000 P1 A1+
1,500,000 University Athletic Association (University Florida Stadium)
LOC Suntrust Bank 02/01/20 6.10 1,500,000 VMIG-1
1,900,000 University of North Florida Capital Improvement
LOC First Union National Bank 11/01/24 5.30 1,900,000 VMIG-1
4,700,000 University of Southern Indiana
LOC Bank One 10/01/19 5.05 4,700,000 VMIG-1 A1
875,000 Virginia College Building Authority (University of Richmond Project) 11/01/26 5.05 875,000 VMIG-1
1,900,000 Volusia County, FL HFA S.W. (Volusia Hospital)
LOC First Union National Bank 11/15/23 5.05 1,900,000 A1
5,000,000 Wake County, NC Industrial Facilities PCFA
(Carolina Power & Light Co.)
LOC Bank One 06/15/14 5.95 5,000,000 A1+
1,000,000 Wake County, NC Industrial Facilities PCFA
(Carolina Power & Light Co.)
LOC Wachovia Bank & Trust Co., N.A. 05/01/15 4.95 1,000,000 P1 A1+
4,600,000 Washington State HFC (YMCA Snohomish County Project)
LOC US Bank N.A. 06/01/27 6.50 4,600,000 A1
------------ -----------
519,545,000 Total Other Variable Rate Demand Instruments 519,545,000
------------ -----------
<CAPTION>
Put Bonds (d) (3.14%)
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$5,000,000 Chicago, IL GO
LOC Landesbank Hessen 12/07/00 3.90% $ 5,000,000 VMIG-1 P-1+
9,995,000 DeKalb County, GA MHRB - Series 1985L
LOC Amsouth Bank N.A. 12/01/00 3.85 9,995,000 A1+
2,500,000 Marietta, GA Housing Authority (Falls at Bells Ferry) 01/15/01 4.35 2,500,000 VMIG-1
3,000,000 Nashville & Davidson County, TN
(Vanderbuilt University) - Series 1985A 01/15/01 4.15 3,000,000 MIG-1 A1+
5,000,000 Regents of the University of Colorado
(Master Lean Purchase Agreement)
LOC Bayerische Landesbank 07/01/00 3.50 5,000,000 VMIG-1 A1+
----------- -----------
25,495,000 Total Put Bonds 25,495,000
----------- ------------
</TABLE>
--------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
<PAGE>
--------------------------------------------------------------------------------
DAILY TAX FREE INCOME FUND, INC.
STATEMENT OF NET ASSETS (CONTINUED)
APRIL 30, 2000
(UNAUDITED)
================================================================================
<TABLE>
<CAPTION>
Ratings (a)
-----------------
Face Maturity Value Standard
Amount Date Yield (Note 1) Moody's & Poor's
------ ---- ----- ------ ------- --------
Revenue Bond (0.25%)
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$2,000,000 State of Oregon Housing and Community Services
(Single Family Mortgage Program)
Collateralized by U.S. Government Securities 11/02/00 3.85%$ 2,000,000 MIG-1
----------- ---------
2,000,000 Total Revenue Bond 2,000,000
----------- ---------
<CAPTION>
Tax Exempt Commercial Paper (9.30%)
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$10,000,000 Beaver County, PA IDA (Duquesne Light Company)
Insured by AMBAC Indemnity Corp. 07/06/00 3.95% $ 10,000,000 VMIG-1 A1+
7,800,000 Brownsville, TX Utility System
LOC Toronto Dominion Bank 05/11/00 3.80 7,800,000 P1 A1+
2,000,000 Chicago, IL GO
LOC Westdeutche Landesbank 10/26/00 4.00 2,000,000 MIG-1 SP-1+
5,000,000 City of Philadelphia, PA Gas Works
LOC Morgan Guaranty Trust Company 05/10/00 3.90 5,000,000 P1 A1+
5,000,000 Development Authority of Burke County, GA
(Ogelthorpe Power ) - Series 1998A
Insured by AMBAC Indemnity Corp. 05/10/00 3.90 5,000,000 MIG-1 A1+
3,600,000 Development Authority of Burke County, GA
(Ogelthorpe Power ) - Series 1998B
Insured by AMBAC Indemnity Corp. 05/17/00 3.90 3,600,000 VMIG-1 A1+
2,800,000 Hampton, VA IDA (Sentara Health System) 05/10/00 3.90 2,800,000 VMIG-1 A1+
4,100,000 Jacksonville, FL PCR (Florida Power & Light) - Series 199 06/01/00 4.10 4,100,000 P1 A1+
8,500,000 Mt Vernon, IN PC & Solid Waste Disposal RB (General Electric) 05/03/00 4.00 8,500,000 P1 A1+
11,570,000 Rochester, MN (Mayo Foundation) - Series 1998E 05/11/00 3.70 11,570,000 A1+
7,000,000 Rochester, MN (Mayo Foundation) - Series 2000 05/04/00 4.15 7,000,000 A1+
8,000,000 State of Wisconsin 07/12/00 3.90 8,000,000 P1 A1+
------------ ------------
75,370,000 Total Tax Exempt Commercial Paper 75,370,000
------------ ------------
Total Investments (99.30%) (Cost $805,208,327+) $ 805,208,327
Cash and Other Assets in Excess of Liabilities (0.70%) 5,659,605
-------------
Net Assets (100.00%) $ 810,867,932
=============
Net asset value, offering and redemption price per share:
Class A shares, 291,836,429 Shares Outstanding (Note 3) $ 1.00
=============
Class B shares, 518,876,393 Shares Outstanding (Note 3) $ 1.00
=============
Thornburg shares, 348,166 Shares Outstanding (Note 3) $ 1.00
=============
+ Aggregate cost for federal income tax purposes is identical.
</TABLE>
--------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
<PAGE>
--------------------------------------------------------------------------------
DAILY TAX FREE INCOME FUND, INC.
STATEMENT OF NET ASSETS (CONTINUED)
APRIL 30, 2000
(UNAUDITED)
================================================================================
FOOTNOTES:
(a) Unless the variable rate demand instruments are assigned their own ratings,
the ratings are those of the holding company of the bank whose letter of
credit guarantees the issue or the insurance company who insures the issue.
All letters of credit and insurance are irrevocable and direct pay covering
both principal and interest. Certain issuers have either a line of credit,
a liquidity facility, a standby purchase agreement or some other financing
mechanism to ensure the remarketing of the securities. This is not a
guarantee and does not serve to insure or collateralize the issue. P1 and
A1+ are the highest ratings assigned for tax exempt commercial paper.
(b) Securities that are not rated which the Fund's Board of Directors has
determined to be of comparable quality to the rated securities in which the
Fund invests.
(c) Securities payable on demand at par including accrued interest (usually
with seven days notice) and unconditionally secured as to principal and
interest by a bank letter of credit. The interest rates are adjustable and
are based on bank prime rates or other interest rate adjustment indices.
The rate shown is the rate in effect at the date of this statement.
(d) The maturity date indicated for the put bonds is the next put date.
<TABLE>
<CAPTION>
KEY:
<S> <C> <C> <C> <C> <C>
BAN = Bond Anticipation Note IDB = Industrial Development Bond
COPS = Certificate of Participations IDFA = Industrial Development Finance Authority
EDC = Economic Development Corporation IDRB = Industrial Development Revenue Bond
EDFA = Economic Development Finance Authority LOC = Letter of Credit
EDRB = Economic Development Revenue Bond MHRB = Multifamily Housing Revenue Bond
FGIC = Financial Guaranty Insurance Company PCFA = Pollution Control Finance Authority
GAN = Grant Anticipation Note PCR = Pollution Control Revenue
GO = General Obligation PCRB = Pollution Control Revenue Bond
HEFA = Hospital & Education Finance Authority RAN = Revenue Anticipation Note
HFA = Housing Finance Authority RB = Revenue Bond
HFC = Housing Finance CommissionTAN Tax Anticipation Note
HFFA = Health Facility Finance Authority TAW = Tax Anticipation Warrant
HRB = Hospital Revenue Bond TRAN = Tax and Revenue Anticipation Note
IDA = Industrial Development Authority
</TABLE>
--------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
<PAGE>
--------------------------------------------------------------------------------
DAILY TAX FREE INCOME FUND, INC.
STATEMENT OF OPERATIONS
SIX MONTHS ENDED APRIL 30, 2000
(UNAUDITED)
================================================================================
<TABLE>
<CAPTION>
INVESTMENT INCOME
<S> <C>
Income:
Interest................................................................................ $ 13,577,073
-------------
Expenses: (Note 2)
Investment management fee............................................................... 1,154,015
Administration fee...................................................................... 745,671
Distribution fee (Class A).............................................................. 420,031
Distribution fee (Thornburg shares)..................................................... 535
Custodian expenses...................................................................... 69,060
Shareholder servicing and related shareholder expenses.................................. 321,566
Legal, compliance and filing fees....................................................... 99,712
Audit and accounting.................................................................... 95,805
Directors' fees......................................................................... 13,615
Other................................................................................... 16,562
-------------
Total expenses........................................................................ 2,936,572
Less: Expense paid indirectly (Note 2)................................................ ( 219)
-------------
Net expenses.......................................................................... 2,936,353
-------------
Net investment income....................................................................... 10,640,720
REALIZED GAIN (LOSS) ON INVESTMENTS
Net realized gain/(loss) on investments..................................................... ( 25,160)
-------------
Increase in net assets from operations...................................................... $ 10,615,560
=============
</TABLE>
--------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
<PAGE>
--------------------------------------------------------------------------------
DAILY TAX FREE INCOME FUND, INC.
STATEMENTS OF CHANGES IN NET ASSETS
================================================================================
<TABLE>
<CAPTION>
Six Months
Ended Year
April 30, 2000 Ended
(Unaudited) October 31, 1999
--------- ----------------
INCREASE (DECREASE) IN NET ASSETS
<S> <C> <C>
Operations:
Net investment income......................................... $ 10,640,720 $ 16,182,556
Net realized gain (loss) on investments....................... ( 25,160) -0-
--------------- ---------------
Increase in net assets from operations........................ 10,615,560 16,182,556
Dividends to shareholders from net investment income
Class A....................................................... ( 4,682,899)* ( 9,004,964)*
Class B....................................................... ( 5,951,741)* ( 7,177,592)*
Thornburg shares.............................................. ( 6,080)* -0-
Capital share transactions (Note 3)
Class A....................................................... ( 31,351,632) ( 40,209,783
Class B....................................................... 227,088,772 61,276,586
Thornburg shares.............................................. 348,166 -0-
--------------- ---------------
Total increase (decrease)................................. 196,060,146 21,066,803
Net assets:
Beginning of period........................................... 614,807,786 593,740,983
--------------- ---------------
End of period................................................. $ 810,867,932 $ 614,807,786
=============== ===============
* Designated as exempt-interest dividends for federal income tax purposes.
</TABLE>
--------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
<PAGE>
--------------------------------------------------------------------------------
DAILY TAX FREE INCOME FUND, INC.
NOTES TO FINANCIAL STATEMENTS
(UNAUDITED)
================================================================================
1. Summary of Accounting Policies.
Daily Tax Free Income Fund, Inc. is a no-load, diversified, open-end management
investment company registered under the Investment Company Act of 1940. The Fund
is a short term, tax exempt money market fund. The Fund has three classes of
stock authorized, Class A, Class B and Thornburg shares. The Class A and
Thornburg shares are subject to a service fee pursuant to the Distribution and
Service Plan. The Class B shares are not subject to a service fee. Additionally,
the Fund may allocate among its classes certain expenses to the extent allowable
to specific classes, including transfer agent fees, government registration
fees, certain printing and postage costs, and administrative and legal expenses.
Class specific expenses of the Fund were limited to distribution fees and
transfer agent expenses. In all other respects, the Class A, Class B and
Thornburg shares represent the same interest in the income and assets of the
Fund. Distribution of Class B shares commenced November 23, 1992. Thornburg
shares commenced on February 8, 2000. Its financial statements are prepared in
accordance with accounting principles generally accepted in the United States
for investment companies as follows:
a) Valuation of Securities -
Investments are valued at amortized cost. Under this valuation method, a
portfolio instrument is valued at cost and any discount or premium is
amortized on a constant basis to the maturity of the instrument. The
maturity of variable rate demand instruments is deemed to be the longer of
the period required before the Fund is entitled to receive payment of the
principal amount or the period remaining until the next interest rate
adjustment.
b) Federal Income Taxes -
It is the Fund's policy to comply with the requirements of the Internal
Revenue Code applicable to regulated investment companies and to distribute
all of its tax exempt and taxable income to its shareholders. Therefore, no
provision for federal income tax is required.
c) Dividends and Distributions -
Dividends from investment income (excluding capital gains and losses, if
any, and amortization of market discount) are declared daily and paid
monthly. Distributions of net capital gains, if any, realized on sales of
investments are made after the close of the Fund's fiscal year, as declared
by the Fund's Board of Directors.
d) Use of Estimates -
The preparation of financial statements in conformity with accounting
principles generally accepted in the United States requires management to
make estimates and assumptions that effect the reported amounts of assets
and liabilities and disclosure of contingent assets and liabilities at the
date of the financial statements and the reported amounts of increases and
decreases in net assets from operations during the reporting period. Actual
results could differ from those estimates.
e) General -
Securities transactions are recorded on a trade date basis. Interest income
is accrued as earned. Realized gains and losses from securities
transactions are recorded on the identified cost basis.
2. Investment Management Fees and Other Transactions with Affiliates.
Under the Investment Management Contract, the Fund pays an investment
management fee to Reich & Tang Asset Management L.P. (Manager) at the
annual rate of .325% of the Fund's average daily net assets up to $750
million plus .30% of such assets in excess of $750 million.
--------------------------------------------------------------------------------
<PAGE>
--------------------------------------------------------------------------------
DAILY TAX FREE INCOME FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
(UNAUDITED)
================================================================================
2. Investment Management Fees and Other Transactions with Affiliates
(Continued).
Pursuant to an Administrative Services Agreement, the Fund pays to the Manager
an annual fee of .21% of the Fund's average daily net assets up to $1.25
billion, plus .20% of such assets in excess of $1.25 billion but not in excess
of $1.5 billion, plus .19% of such assets in excess of $1.5 billion.
Pursuant to a Distribution and Service Plan adopted under Securities and
Exchange Commission Rule 12b-1, the Fund and Reich & Tang Distributors, Inc.
(the Distributor) entered into a Distribution Agreement and a Shareholder
Servicing Agreement, with respect to the Class A and Thornburg shares of the
Fund. For its services under the Shareholder Servicing Agreement, the
Distributor receives from the Fund a fee equal to .25% of the Fund's average
daily net assets with respect only to Class A and Thornburg shares.
Fees are paid to Directors who are unaffiliated with the Manager on the basis of
$6,000 per annum plus $750 per meeting attended.
Included in the Statement of Operations under the caption "Shareholder servicing
and related shareholder expenses" are fees of $178,481 paid to Reich & Tang
Services, Inc., an affiliate of the Manager as servicing agent for the Fund.
Included under the same caption are expense offsets of $219.
3. Capital Stock. At April 30, 2000, 20,000,000,000 shares of $.001 par value
stock were authorized and capital paid in amounted to $810,893,875. Transactions
in capital stock, all at $1.00 per share, were as follows:
<TABLE>
<CAPTION>
Six Months Year
Ended Ended
April 30, 2000 October 31, 1999
-------------- ----------------
Class A
<S> <C> <C>
Sold 585,044,692 513,422,609
Issued on reinvestment of dividends....... 4,014,464 7,876,240
Redeemed.................................. ( 620,410,788) ( 561,508,632)
-------------- --------------
Net increase (decrease)................... ( 31,351,632) ( 40,209,783)
============== ==============
<CAPTION>
Class B
<S> <C> <C>
Sold...................................... 1,325,522,041 576,831,470
Issued on reinvestment of dividends....... 5,246,455 6,991,247
Redeemed.................................. ( 1,103,679,724) ( 522,546,131)
-------------- --------------
Net increase (decrease)................... 227,088,772 61,276,586
============== ==============
<CAPTION>
February 8, 2000
(Commencement of Offering) to
Thornburg shares April 30, 2000
---------------- ---------------
Sold...................................... 1,729,038
Issued on reinvestment of dividends....... 5,526
Redeemed.................................. ( 1,386,398)
--------------
Net increase (decrease)................... 348,166
==============
</TABLE>
--------------------------------------------------------------------------------
<PAGE>
--------------------------------------------------------------------------------
================================================================================
4. Sales of Securities.
Accumulated undistributed realized losses at April 30, 2000 amounted to $25,943.
Such losses represent tax basis net capital losses which may be carried forward
to offset future capital gains. Such losses expire through October 31, 2004.
<TABLE>
<CAPTION>
5. Financial Highlights.
Six
Months
Ended Year Ended October 31,
April 30, -----------------------------------------------------------
Class A 2000 1999 1998 1997 1996 1995
--------- --------- -------- --------- ---------- -------
<S> <C> <C> <C> <C> <C> <C>
Per Share Operating Performance:
(for a share outstanding throughout the period)
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............... 0.014 0.024 0.029 0.031 0.031 0.034
Less distributions:
Dividends from net investment income ( 0.014) ( 0.024) ( 0.029) ( 0.031) ( 0.031) ( 0.034)
--------- --------- -------- -------- -------- -------
Net asset value, end of period......... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
========= ========= ======== ======== ======== ========
Total Return........................... 1.40%* 2.42% 2.92% 3.08% 3.09% 3.46%
Ratios/Supplemental Data
Net assets, end of period (000)........ $ 291,767 $ 323,100 $363,295 $389,897 $448,647 $458,942
Ratios to average net assets:
Expenses (Includes expenses paid
indirectly).................... 1.01%+ 0.98% 0.94% 0.91% 0.90% 0.89%
Net investment income............... 2.78%+ 2.39% 2.89% 3.03% 3.05% 3.41%
Expenses paid indirectly............ 0.00%+ 0.00% 0.00% 0.00% 0.01% 0.01%
* Not Annualized
+ Annualized
</TABLE>
--------------------------------------------------------------------------------
<PAGE>
--------------------------------------------------------------------------------
================================================================================
DAILY TAX FREE INCOME FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
(UNAUDITED)
<TABLE>
<CAPTION>
5. Financial Highlights. (Continued)
Six
Months
Ended Year Ended October 31,
April 30, --------------------------------------------------------
Class B 2000 1999 1998 1997 1996 1995
-------- ------- -------- -------- ------- ------
<S> <C> <C> <C> <C> <C> <C>
Per Share Operating Performance:
(for a share outstanding throughout the period)
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............... 0.016 0.027 0.032 0.033 0.033 0.037
Less distributions:
Dividends from net investment income ( 0.016) ( 0.027) ( 0.032) ( 0.033) ( 0.033) ( 0.037)
--------- --------- -------- -------- -------- --------
Net asset value, end of period......... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
========= ========= ======== ======== ======== ========
Total Return........................... 1.58%* 2.74% 3.21% 3.34% 3.35% 3.71%
Ratios/Supplemental Data
Net assets, end of period (000)........ $ 518,753 $ 291,708 $230,446 $173,339 $160,986 $166,700
Ratios to average net assets:
Expenses (Includes expenses paid
indirectly)................... 0.66%+ 0.67% 0.67% 0.66% 0.66% 0.64%
Net investment income............... 3.18%+ 2.71% 3.15% 3.29% 3.30% 3.66%
Expenses paid indirectly............ 0.00%+ 0.00% 0.00% 0.00% 0.01% 0.01%
* Not Annualized
+ Annualized
</TABLE>
--------------------------------------------------------------------------------
<PAGE>
--------------------------------------------------------------------------------
DAILY TAX FREE INCOME FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
(UNAUDITED)
================================================================================
<TABLE>
<CAPTION>
5. Financial Highlights. (Continued)
February 8, 2000
(Commencement of Offering) to
Thornburg shares April 30, 2000
--------------
<S> <C>
Per Share Operating Performance:
(for a share outstanding throughout the period)
Net asset value, beginning of period........... $ 1.00
-------------
Income from investment operations:
Net investment income....................... 0.007
Less distributions:
Dividends from net investment income........ ( 0.007 )
-------------
Net asset value, end of period................. $ 1.00
=============
Total Return................................... 0.67%*
Ratios/Supplemental Data
Net assets, end of period (000)................ $ 348
Ratios to average net assets:
Expenses (Includes expenses paid indirectly) 1.01%+
Net investment income....................... 2.78%+
Expenses paid indirectly.................... 0.00%+
* Not Annualized
+ Annualized
</TABLE>
--------------------------------------------------------------------------------
<PAGE>
--------------------------------------------------------------------------------
------------------------------------------------------
This report is submitted for the general information
of the shareholders of the Fund. It is not
authorized for distribution to prospective investors
in the Fund unless preceded or accompanied by an
effective prospectus, which includes information
regarding the Fund's objectives and policies,
experience of its management, marketability of
shares, and other information.
------------------------------------------------------
Daily Tax Free Income Fund, Inc.
600 Fifth Avenue
New York, New York 10020
Manager
Reich & Tang Asset Management L.P.
600 Fifth Avenue
New York, New York 10020
Custodian
State Street Kansas City
801 Pennsylvania
Kansas City, Missouri 64105
Transfer Agent & Dividend
Disbursing Agent
Reich & Tang Services, Inc.
600 Fifth Avenue
New York, NY 10020
DTF4/00S
--------------------------------------------------------------------------------
<PAGE>
--------------------------------------------------------------------------------
DAILY
TAX FREE
INCOME
FUND, INC.
Semi-Annual Report
April 30, 2000
(Unaudited)
-------------------------------------------------------------------------------
<PAGE>
