- -------------------------------------------------------------------------------
NEW YORK
DAILY
TAX FREE
INCOME
FUND, INC.
Annual Report
April 30, 1995
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<PAGE>
1
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NEW YORK
DAILY TAX FREE 600 FIFTH AVENUE, NEW YORK, NY 10020
INCOME FUND, INC. 212-830-5200
===============================================================================
Dear Shareholder:
We are pleased to present the annual report of New York Daily Tax Free Income
Fund, Inc. for the year ended April 30, 1995.
The Fund had net assets of $254,421,613 and 3,506 active shareholders as of
April 30, 1995. Dividends earned on a share held throughout the period were
$.027 which, when adjusted for the compounding effect of the reinvestment of
dividends, represents a 2.74% yield on an annual basis.
We thank you for your support and look forward to continuing to serve your cash
management needs.
Sincerely,
/s/ Steven W. Duff
Steven Duff
President
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<PAGE>
2
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NEW YORK DAILY TAX FREE INCOME FUND, INC.
STATEMENT OF NET ASSETS
APRIL 30, 1995
===============================================================================
<TABLE>
<CAPTION>
Ratings (a)
----------------
Face Maturity Value Standard
Amount Date Yield (Note 1) Moody's & Poor's
------ ---- ----- -------- ------- ------
Other Tax Exempt Investments (15.23%)
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$ 5,000,000 Brentwood NY USFD TAN (c) 06/30/95 3.75 % $ 5,005,529
4,000,000 Elmira NY GO BAN 08/11/95 3.95 4,005,369 MIG-1
5,000,000 Longwood CSD NY TAN (c) 06/23/95 3.65 5,003,848
2,000,000 Monroe County, NY Public Improvement Bond
AMBAC Insured 06/01/95 3.58 2,005,350 Aaa AAA
3,500,000 Onondaga County, NY BAN (c) 10/27/95 4.16 3,504,894
500,000 Onondaga County, NY GO Bond 05/01/95 3.75 500,000 Aa AA
3,975,000 Orange County, NY BAN (c) 11/22/95 4.44 3,985,671
3,800,000 Oswego County BOCES RAN (c) 06/27/95 3.80 3,802,286
2,000,000 Suffolk County, NY TAN
LOC National Westminster Bank PLC 09/14/95 4.02 2,003,002 MIG-1
2,435,000 Syracuse NY BAN (c) 06/16/95 3.75 2,435,574
4,000,000 Town of Hempstead NY BAN 08/17/95 4.10 4,003,782 MIG-1
2,500,000 Town of Islip NY BAN (c) 08/22/95 4.14 2,502,207
---------- ----------
38,710,000 Total Other Tax Exempt Investments 38,757,512
---------- ----------
<CAPTION>
Other Variable Rate Demand Instruments (b) (70.41%)
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$ 5,300,000 Counties of Warren & Washington IDA IDRB Series 94
(Griffith Micro Science Inc. Project)
LOC First Chicago 12/01/14 4.90 % $ 5,300,000 A1
3,000,000 Franklin County, NY IDA IDRB
(KES Chatauqua Project)
LOC Bank of Tokyo, Ltd. 07/01/21 4.50 3,000,000 A1+
1,300,000 Glen Falls, NY IDA IDRB (Broad Street Plaza)
LOC Fleet National Bank 12/01/06 4.40 1,300,000 P1 A1
1,000,000 Islip, NY IDA IDRB (Brentwood Distribution)
LOC Bankers Trust Company 05/01/09 4.75 1,000,000 Aa2
7,000,000 Metropolitan Transportation Authority - Series 1991A
LOC Morgan Guar./Morgan Del./Bank of Tokyo/
Mitsubishi/Sumitomo/Ind. Bk. Japan/Nat West 07/01/21 4.55 7,000,000 VMIG-1 A1
520,000 Monroe County, NY IDA IDRB (Brazil Merk Partnership)
LOC Fleet National Bank 01/01/06 3.80 520,000 P1 A1
</TABLE>
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See Notes to Financial Statements.
<PAGE>
3
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===============================================================================
<TABLE>
<CAPTION>
Ratings (a)
----------------
Face Maturity Value Standard
Amount Date Yield (Note 1) Moody's & Poor's
------ ---- ----- ------ ------- ------
Other Variable Rate Demand Instruments (b) (Continued)
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$ 5,900,000 NY Local Govt Assistance Corp (LGAC) 1994
Series B VRB's
LOC Swiss Bank Corp. 04/01/23 4.35 % $ 5,900,000 VMIG-1 A1+
8,000,000 NY Medical Care Facilities Financial Authority
LOC Chemical Bank 11/01/15 4.40 8,000,000 VMIG-1
3,000,000 NYC GO 1993 Series E-3
LOC Morgan Guaranty Trust Company 08/01/23 5.00 3,000,000 VMIG-1 A1+
3,100,000 NYC GO Series D
LOC Citibank 08/01/95 5.10 3,100,000 P1 A1+
2,700,000 NYS Dormitory Authority
Miriam Osborn Memorial Home Association
LOC Banque Paribas 07/01/24 4.40 2,700,000 VMIG-1 A1
1,500,000 NYS Medical Care Pooled Equipment Authority Series 94A
LOC Chemical Bank 11/01/03 4.50 1,500,000 VMIG-1
1,000,000 Nassau County, NY IDA
(Cold Spring Harbor Laboratory Project)
LOC Morgan Guaranty Trust Company 07/01/19 4.90 1,000,000 A1+
1,000,000 Nassau County, NY IDA IDRB
(Manhassett Association)
LOC Bankers Trust Company 12/01/99 5.08 1,000,000 Aa2
2,500,000 New York City Cultural Resources Trust RB
(Solomon R. Guggenheim Foundation) - Series 90B
LOC Swiss Bank Corp. 12/01/15 4.85 2,500,000 A1+
3,300,000 New York City Trust Cultural Resource RB
(Jewish Museum)
LOC Sumitomo Bank, Ltd. 12/01/21 4.60 3,300,000 VMIG-1 A1+
2,400,000 New York City Trust Cultural Resource RB
(Museum of Broadcasting)
LOC Sumitomo Bank, Ltd. 05/01/14 4.60 2,400,000 VMIG-1 A1+
3,000,000 New York City, NY - Series A5
LOC Kredietbank 08/01/16 5.00 3,000,000 VMIG-1 A1
2,500,000 New York City, NY - Subseries E4
LOC State Street Bank & Trust Co. 08/01/21 5.00 2,500,000 VMIG-1 A1+
</TABLE>
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See Notes to Financial Statements.
<PAGE>
4
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NEW YORK DAILY TAX FREE INCOME FUND, INC.
STATEMENT OF NET ASSETS (CONTINUED)
APRIL 30, 1995
===============================================================================
<TABLE>
<CAPTION>
Ratings (a)
----------------
Face Maturity Value Standard
Amount Date Yield (Note 1) Moody's & Poor's
------ ---- ----- -------- ------- ------
Other Variable Rate Demand Instruments (b) (Continued)
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$ 3,200,000 New York City, NY GO Bond - Subseries E6
FGIC Insured 08/01/19 5.00 % $ 3,200,000 VMIG-1 A1+
700,000 New York City, NY GO Bond - Series B
FGIC Insured 10/01/21 5.30 700,000 VMIG-1 A1+
3,100,000 New York City, NY GO Bond - Series B
FGIC Insured 10/01/22 5.30 3,100,000 VMIG-1 A1+
3,000,000 New York City, NY GO Bond 1993 Subseries E - 5
LOC Sumitomo Bank, Ltd. 08/01/10 5.10 3,000,000 VMIG-1 A1
3,400,000 New York City, NY HDC (East 17th St.) - Series A
LOC Chemical Bank 01/01/23 5.00 3,400,000 A1
6,500,000 New York City, NY HDC (East 96th St.) - Series A
LOC Mitsubishi Bank, Ltd. 08/01/15 4.35 6,500,000 VMIG-1
3,000,000 New York City, NY HDC - Series 1989A
Upper Fifth Avenue Project
LOC Bankers Trust Company 01/01/16 4.60 3,000,000 VMIG-1
3,200,000 New York City, NY IDA (JFK Field Hotel Associates)
LOC Banque Indosuez 12/01/15 4.40 3,200,000 VMIG-1 A1+
200,000 New York City, NY IDA (LaGuardia Associates)
LOC Banque Indosuez 12/01/15 4.40 200,000 VMIG-1 A1+
10,100,000 New York City, NY IDA (Nippon Cargo Airlines Co.)
LOC Industrial Bank of Japan, Ltd. 11/01/15 5.67 10,100,000 A1+
500,000 New York City, NY IDRB (Airport Project)
LOC Bayerische Landesbank Girozentrale 04/01/00 4.60 500,000 P1 A1+
2,100,000 New York City, NY Municipal Water Finance Authority
& Sewer System - Series 1994G
FGIC Insured 06/15/24 5.00 2,100,000 VMIG-1 A1+
1,900,000 New York City, NY Municipal Water Finance Authority
& Sewer System - Series 1992C
FGIC Insured 06/15/22 5.10 1,900,000 VMIG-1 A1+
1,500,000 New York State Dormitory Authority (Cornell University)
Series B 07/01/25 4.85 1,500,000 VMIG-1 SP-1+
4,200,000 New York State ERDA PCRB
(Hudson Gas & Electric) - Series A
LOC J.P. Morgan 11/01/20 4.10 4,200,000 P1
</TABLE>
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See Notes to Financial Statements.
<PAGE>
5
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===============================================================================
<TABLE>
<CAPTION>
Ratings (a)
----------------
Face Maturity Value Standard
Amount Date Yield (Note 1) Moody's & Poor's
------ ---- ----- -------- ------- ------
Other Variable Rate Demand Instruments (b) (Continued)
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$ 2,000,000 New York State ERDA PCRB
(Hudson Gas & Electric) - Series B
LOC Deutsche Bank A.G. 11/01/20 4.30 % $ 2,000,000 P1 A1+
3,100,000 New York State ERDA PCRB
(Niagara Mohawk Power Corp.)
LOC Toronto-Dominion Bank 12/01/25 4.95 3,100,000 P1
4,300,000 New York State ERDA PCRB
(Niagara Mohawk Power Corp.) - Series 1985C
LOC Canadian Imperial Bank of Commerce 12/01/25 4.95 4,300,000 P1
10,300,000 New York State ERDA PCRB
(Niagara Mohawk Power Corp.) - Series B
LOC Toronto-Dominion Bank 12/01/26 5.05 10,300,000 P1
1,700,000 New York State ERDA PCRB
(Orange & Rockland County)
FGIC Insured 10/01/14 4.30 1,700,000 VMIG-1 A1+
2,700,000 New York State ERDA PCRB
(Rochester Gas & Electric) - Series 1984
LOC The Bank of New York 10/01/14 3.80 2,700,000 P1
540,000 New York State JDA 03/01/05 5.35 540,000 VMIG-1
1,300,000 New York State JDA - Series A-1
LOC Fuji Bank, Ltd. 03/01/03 5.50 1,300,000 VMIG-1
765,000 New York State JDA - Series D
LOC Sumitomo Bank, Ltd. 03/01/99 3.85 765,000 VMIG-1 A1
910,000 New York State JDA - Series G
LOC Sumitomo Bank, Ltd. 03/01/99 3.85 910,000 VMIG-1 A1
12,600,000 New York State Local Government Assistance Corp.
LOC Credit Suisse/Swiss Bank/
Union Bank of Switzerland 04/01/22 4.50 12,600,000 VMIG-1 A1+
3,000,000 New York State Thruway Authority,
General RB VRDN
FGIC Insured 01/01/24 4.90 3,000,000 VMIG-1 A1+
3,500,000 New York, NY Series B Subseries B-6
MBIA Insured 08/15/05 5.40 3,500,000 VMIG-1 A1+
6,700,000 Oswego County, NY IDA PCRB
(Philip Morris Companies Inc.) 12/01/08 4.65 6,700,000 P1 A1
3,100,000 Port Authority of New York & New Jersey - Series 1 08/01/28 4.95 3,100,000 VMIG-1 A1+
</TABLE>
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See Notes to Financial Statements.
<PAGE>
6
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NEW YORK DAILY TAX FREE INCOME FUND, INC.
STATEMENT OF NET ASSETS (CONTINUED)
APRIL 30, 1995
===============================================================================
<TABLE>
<CAPTION>
Ratings (a)
----------------
Face Maturity Value Standard
Amount Date Yield (Note 1) Moody's & Poor's
------ ---- ----- -------- ------- ------
Other Variable Rate Demand Instruments (b) (Continued)
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$ 500,000 Puerto Rico Industrial Medical
& Environmental PCFA PCRB
LOC Lloyds Bank PLC 12/01/15 4.55 % $ 500,000 A1+
500,000 Southeast, NY IDA (1989 Unilock, NY)
LOC National Bank of Detroit 11/01/97 4.70 500,000 P1 A1+
200,000 Southeast, NY IDA (1989 Unilock, NY)
LOC National Bank of Detroit 11/01/95 4.70 200,000 P1 A1+
500,000 Southeast, NY IDA (1989 Unilock, NY)
LOC National Bank of Detroit 11/01/98 4.70 500,000 P1 A1+
500,000 Southeast, NY IDA (1989 Unilock, NY)
LOC National Bank of Detroit 11/01/99 4.70 500,000 P1 A1+
500,000 Southeast, NY IDA (1989 Unilock, NY)
LOC National Bank of Detroit 11/01/00 4.70 500,000 P1 A1+
3,000,000 Suffolk County NY Water Authority BAN 12/14/99 4.50 3,000,000 VMIG-1
7,300,000 Suffolk County, NY IDA (Nissequogue Cogen Partners)
LOC Toronto-Dominion Bank 12/15/23 4.65 7,300,000 VMIG-1 A1+
5,000,000 Suffolk County, NY IDA (Target Rock Corp.)
LOC Bank of Nova Scotia 02/01/07 4.40 5,000,000 P1 A1+
----------- -----------
179,135,000 Total Other Variable Rate Demand Instruments 179,135,000
----------- -----------
<CAPTION>
Put Bonds (2.23%)
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$ 2,000,000 Albany County, NY IDA (West Eagle Co.)
LOC Key Bank, N.A. 08/15/95 4.65 % $ 2,000,000 P1 A1
430,000 Fulton County, NY IDA (LCM Properties Realty Trust)
LOC The Bank of New York 06/15/95 4.25 430,000 P1 A1
1,750,000 New York State ERDA (NYS Electric & Gas Corp.)
LOC Union Bank of Switzerland 12/01/95 4.60 1,750,000 A1+
1,500,000 Puerto Rico Industrial Medical
& Environmental PCFA PCRB (Reynolds Metals Co.)
LOC ABN-AMRO Bank N.V. 09/01/95 4.00 1,500,000 VMIG-1 A1+
----------- ---------
5,680,000 Total Put Bonds 5,680,000
----------- ---------
<CAPTION>
Tax Exempt Commercial Paper (0.60%)
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$ 1,525,000 Port Authority of NY & NJ 07/06/95 3.95 % $ 1,525,000 P1 A1+
---------- ---------
1,525,000 Total Tax Exempt Commercial Paper 1,525,000
---------- ---------
</TABLE>
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See Notes to Financial Statements.
<PAGE>
7
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===============================================================================
<TABLE>
<CAPTION>
Ratings (a)
----------------
Face Maturity Value Standard
Amount Date Yield (Note 1) Moody's & Poor's
------ ---- ----- -------- ------- ------
Variable Rate Demand Instruments - Participations (b) (7.74%)
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$ 33,750 1985 Standard Paper Box Co.
LOC Chemical Bank 12/01/95 5.85 % $ 33,750 P1 A1
375,000 BSE Corp. Project
LOC Chemical Bank 07/01/01 5.85 375,000 P1 A1
439,963 Centennial Associates/W&H Stampings, Inc.
LOC Chemical Bank 10/01/00 5.85 439,963 P1 A1
482,759 Datagraphic Inc.
LOC Chemical Bank 10/01/98 5.85 482,759 P1 A1
1,533,344 Duralab Equipment Corporation 1985
LOC Dai-Ichi Kangyo Bank, Ltd. 12/01/95 5.85 1,533,344 P1 A1
1,780,000 Executive Square Business Park
LOC Chemical Bank 06/01/01 5.85 1,780,000 P1 A1
327,586 Faden Paper Supply Co.
LOC Chemical Bank 01/01/00 5.85 327,586 P1 A1
186,666 Ferrara Bros. Building
LOC Chemical Bank 01/01/97 5.85 186,666 P1 A1
1,269,000 GL II Associates
LOC Chemical Bank 01/01/99 5.85 1,269,000 P1 A1
1,915,000 Giaquinto Joint Venture
LOC Chemical Bank 07/01/02 5.85 1,915,000 P1 A1
420,125 I.G. Federal Electric
LOC Chemical Bank 11/01/99 5.85 420,125 P1 A1
625,000 Ja-Cole Realty Co./IHM Systems Inc.
LOC Dai-Ichi Kangyo Bank, Ltd. 12/01/95 5.85 625,000 P1 A1
797,840 Metro Seliger Industries, Inc. 1984
LOC Chemical Bank 08/10/99 5.85 797,840 P1 A1
1,100,000 Miteq Realty Association
LOC Dai-Ichi Kangyo Bank, Ltd. 09/01/95 5.85 1,100,000 P1 A1
321,250 One Crouse Medical Plaza 1983
LOC Chemical Bank 12/10/98 5.85 321,250 P1 A1
548,000 Parrtown Facility
LOC Dai-Ichi Kangyo Bank, Ltd. 12/01/95 5.85 548,000 P1 A1
1,615,000 Penn-Plax Plastics, Nassau County
LOC Dai-Ichi Kangyo Bank, Ltd. 01/01/00 5.85 1,615,000 P1 A1
4,763,202 Puntillo Limited Partner
LOC Dai-Ichi Kangyo Bank, Ltd. 10/01/04 5.85 4,763,202 P1 A1
</TABLE>
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See Notes to Financial Statements.
<PAGE>
8
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NEW YORK DAILY TAX FREE INCOME FUND, INC.
STATEMENT OF NET ASSETS (CONTINUED)
APRIL 30, 1995
===============================================================================
<TABLE>
<CAPTION>
Ratings (a)
----------------
Face Maturity Value Standard
Amount Date Yield (Note 1) Moody's & Poor's
------ ---- ----- ------- ------- ------
Variable Rate Demand Instruments - Participations (b) (Continued)
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$ 74,999 Ram Realty Co. Project
LOC The Bank of New York 02/01/99 5.40 % $ 74,999 P1 A1
182,100 Rozal Properties Project
LOC Chemical Bank 09/01/96 5.85 182,100 P1 A1
536,642 Texpak, Inc. 1985
LOC Chemical Bank 01/01/01 5.85 536,642 P1 A1
361,726 Unitel Video Service 82
LOC Chemical Bank 10/01/97 5.85 361,726 P1 A1
----------- -----------
19,688,952 Total Variable Rate Demand Instruments - Participations 19,688,952
----------- -----------
<CAPTION>
Variable Rate Demand Instruments - Private Placements (b) (3.82%)
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
$ 741,306 Adirondack Transit Lines
LOC Key Bank, N.A. 02/01/01 5.40 % $ 741,306 P1 A1
3,500,000 Blaser Real Estate 1990
LOC Union Bank of Switzerland 09/01/21 5.85 3,500,000 P1 A1
3,000,000 Blaser Real Estate Inc. 1986
LOC Union Bank of Switzerland 09/01/21 5.85 3,000,000 P1 A1
756,000 FTS Systems Inc.
LOC Key Bank, N.A. 01/15/09 4.16 756,000 P1 A1
358,750 J. Treffeletti & Sons
LOC Key Bank, N.A. 09/01/00 5.40 358,750 P1 A1
328,750 Troy Mall Associates - Series 1985B
LOC Key Bank, N.A. 07/01/15 5.40 328,750 P1 A1
1,023,750 Troy Mall Associates - Series 1985C
LOC Key Bank, N.A. 04/01/16 5.40 1,023,750 P1 A1
---------- ------------
9,708,556 Total Variable Rate Demand Instruments - Private Placements 9,708,556
---------- ------------
Total Investments (100.03%) (Cost $254,495,020+) 254,495,020
Liabilities in Excess of Cash and Other Assets (-0.03%) ( 73,407)
------------
Net Assets (100.00%), 254,423,867 Shares Outstanding (Note 3) $ 254,421,613
=============
Net Asset Value, offering and redemption price per share $ 1.00
=============
+ Aggregate cost for federal income tax purposes is identical.
</TABLE>
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See Notes to Financial Statements.
<PAGE>
9
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===============================================================================
FOOTNOTES:
(a) The ratings noted for variable rate demand instruments are those of the
bank whose letter of credit secures such instruments or the guarantor of
the bond. P1 and A1+ are the highest ratings assigned for tax exempt
commercial paper.
(b) Securities payable on demand at par including accrued interest (usually
with seven days notice) and where indicated are 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.
(c) Securities that are not rated which the Fund's Board of Directors has
determined to be of comparable quality to those rated securities in which
the Fund invests.
<TABLE>
<CAPTION>
KEY:
<S> <C> <C> <C> <C> <C>
BAN = Bond Anticipation Note PCFA = Pollution Control Finance Authority
CI = Certificate of Indebtedness PCRB = Pollution Control Revenue Bond
CLN = Construction Loan Note RAN = Revenue Anticipation Note
CRRB = Cultural Resource Revenue Bond RAW = Revenue Anticipation Warrant
ERDA = Energy and Research Development Authority RB = Revenue Bond
FAN = Fund Anticipation Note RN = Revenue Note
GAN = Grant Anticipation Note TAN = Tax Anticipation Note
HDC = Housing Development Corporation TLN = Tax Loan Note
HRB = Hospital Revenue Bond TRAN = Tax and Revenue Anticipation Note
IDA = Industrial Development Authority VRB = Variable Rate Bond
IDRB = Industrial Development Revenue Bond VRDN = Variable Rate Demand Note
JDA = Job Development Authority
</TABLE>
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See Notes to Financial Statements.
<PAGE>
10
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NEW YORK DAILY TAX FREE INCOME FUND, INC.
STATEMENT OF OPERATIONS
YEAR ENDED APRIL 30, 1995
===============================================================================
<TABLE>
<CAPTION>
INVESTMENT INCOME
<S> <C>
Income:
Interest............................................................. $ 8,403,877
-------------
Expenses: (Note 2)
Investment management fee............................................ 702,867
Administration Fee................................................... 468,578
Shareholder servicing fee............................................ 468,578
Custodian, shareholder servicing and
related shareholder expenses..................................... 258,167
Legal, compliance and filing fees.................................... 28,646
Audit and accounting................................................. 71,027
Directors' fees and expenses......................................... 21,427
Other expenses....................................................... 27,247
-------------
Total expenses..................................................... 2,046,537
-------------
Net investment income.................................................... 6,357,340
REALIZED GAIN (LOSS) ON INVESTMENTS...................................... 284
-------------
Increase in net assets from operations................................... $ 6,357,624
=============
</TABLE>
- -------------------------------------------------------------------------------
See Notes to Financial Statements.
<PAGE>
11
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NEW YORK DAILY TAX FREE INCOME FUND, INC.
STATEMENTS OF CHANGES IN NET ASSETS
YEARS ENDED APRIL 30, 1995 AND 1994
===============================================================================
<TABLE>
<CAPTION>
1995 1994
------------- -------------
INCREASE (DECREASE) IN NET ASSETS
<S> <C> <C>
Operations:
Net investment income......................................... $ 6,357,340 $ 4,035,611
Net realized gain (loss) on investments....................... 284 1,369
--------------- ---------------
Increase in net assets from operations............................ 6,357,624 4,036,980
Dividends to shareholders from net investment income.............. ( 6,357,340)* ( 4,035,611)*
Capital share transactions (Note 3)............................... 36,073,321 7,860,179
--------------- ---------------
Total increase (decrease)..................................... 36,073,605 7,861,548
Net assets:
Beginning of year............................................. 218,348,008 210,486,460
--------------- ---------------
End of year................................................... $ 254,421,613 $ 218,348,008
=============== ===============
* Designated as exempt-interest dividends for federal income tax purposes.
</TABLE>
- -------------------------------------------------------------------------------
See Notes to Financial Statements.
<PAGE>
12
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NEW YORK DAILY TAX FREE INCOME FUND, INC.
NOTES TO FINANCIAL STATEMENTS
===============================================================================
1. Summary of Accounting Policies
New York Daily Tax Free Income Fund, Inc. is a no-load, non-diversified,
open-end management investment company registered under the Investment Company
Act of 1940. The Fund's financial statements are prepared in accordance with
generally accepted accounting principles 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) 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), equal to .30% of the Fund's
average daily net assets. The Manager is required to reimburse the Fund for its
expenses (exclusive of interest, taxes, brokerage, and extraordinary expenses)
to the extent that such expenses, including the investment management and the
shareholder servicing and administration fees, for any fiscal year exceed the
lesser of (i) 1 1/2% of the Fund's average net assets or (ii) the limits on
investment company expenses prescribed by any state in which the Fund's shares
are qualified for sale. No such reimbursement was required for the year ended
April 30, 1995.
Pursuant to an Administrative Services Agreement, the Fund pays to the Manager
an annual fee of .20% of the Fund's average daily net assets.
Pursuant to a Distribution Plan adopted under Securities and Exchange Commission
Rule 12b-1, the Fund and Reich & Tang Distributors L.P. (the Distributor) have
entered into a Distribution Agreement and a Shareholder Servicing Agreement. For
its services under the Shareholder Servicing Agreement, the Distributor receives
from the Fund a fee equal to .20% of the Fund's average daily net assets. There
were no additional expenses borne by the Fund pursuant to the Distribution Plan.
- -------------------------------------------------------------------------------
<PAGE>
13
- -------------------------------------------------------------------------------
===============================================================================
2. Investment Management Fees and Other Transactions with Affiliates (Continued)
Included in the Statement of Operations under the caption "Custodian,
shareholder servicing and related shareholder expenses" are fees of $29,552 paid
to Fundtech Services L.P., an affiliate of the Manager as servicing agent for
the Fund.
Fees are paid to Directors who are unaffiliated with the Manager on the basis of
$3,000 per annum plus $500 per meeting attended.
3. Capital Stock
At April 30, 1995, 20,000,000,000 shares of $.001 par value stock were
authorized and capital paid in amounted to $254,422,178. Transactions in capital
stock, all at $1.00 per share, were as follows:
<TABLE>
<CAPTION>
Year Year
Ended Ended
April 30, 1995 April 30, 1994
-------------- --------------
<S> <C> <C>
Sold................................... 448,737,421 418,063,703
Issued on reinvestment of dividends.... 5,640,644 3,873,172
Redeemed............................... ( 418,304,744) ( 414,076,696)
------------ ------------
Net increase (decrease)................ 36,073,321 7,860,179
============ ============
</TABLE>
4. Sales of Securities
Accumulated undistributed realized losses at April 30, 1995 amounted to $565.
Such losses represent tax basis net capital losses which may be carried forward
to offset future capital gains. Such losses expire April 30, 2002.
5. Concentration of Credit Risk
The Fund invests primarily in obligations of political subdivisions of the State
of New York and, accordingly, is subject to the credit risk associated with the
non-performance of such issuers. Approximately 72% of these investments are
further secured, as to principal and interest, by letters of credit issued by
financial institutions. The Fund maintains a policy of monitoring its exposure
by reviewing the credit worthiness of the issuers, as well as that of the
financial institutions issuing the letters of credit, and by limiting the amount
of holdings with letters of credit from one financial institution.
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<PAGE>
14
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NEW YORK DAILY TAX FREE INCOME FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
===============================================================================
6. Selected Financial Information
<TABLE>
<CAPTION>
Year Ended April 30,
---------------------------------------------------------------
1995 1994 1993 1992 1991
-------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
Per Share Operating Performance:
(for a share outstanding throughout the year)
Net asset value, beginning of year.... $ 1.000 $1.000 $1.000 $1.000 $1.000
------- ------ ------ ------ ------
Income from investment operations:
Net investment income............... .027 0.018 0.023 0.037 0.048
Less distributions:
Dividends from net investment income .027 0.018 0.023 0.037 0.048
------ ------ ------ ------ ------
Net asset value, end of year.......... $1.000 $1.000 $1.000 $1.000 $1.000
====== ====== ====== ====== ======
Total Return.......................... 2.74% 1.84% 2.28% 3.73% 4.92%
Ratios/Supplemental Data
Net assets, end of year (000)......... $254,422 $218,348 $210,486 $202,291 $191,622
Ratios to average net assets:
Expenses............................ 0.87% 0.89% 0.89% 0.87% 0.82%+
Net investment income............... 2.71% 1.82% 2.25% 3.63% 4.82%+
+ Net of management and shareholder servicing waived equivalent to .07% of
average net assets.
</TABLE>
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<PAGE>
15
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NEW YORK DAILY TAX FREE INCOME FUND, INC.
INDEPENDENT AUDITOR'S REPORT
===============================================================================
The Board of Directors and Shareholders
New York Daily Tax Free Income Fund, Inc.
We have audited the accompanying statement of net assets of New York Daily Tax
Free Income Fund, Inc. as of April 30, 1995, and the related statement of
operations for the year then ended, the statement of changes in net assets for
each of the two years in the period then ended and the selected financial
information for each of the five years in the period then ended. These financial
statements and selected financial information are the responsibility of the
Fund's management. Our responsibility is to express an opinion on these
financial statements and selected financial information based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and selected
financial information are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in
the financial statements. Our procedures included confirmation of securities
owned as of April 30, 1995, by correspondence with the custodian. An audit also
includes assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for our
opinion.
In our opinion, the financial statements and selected financial information
referred to above present fairly, in all material respects, the financial
position of New York Daily Tax Free Income Fund, Inc. as of April 30, 1995, the
results of its operations, the changes in its net assets and the selected
financial information for the periods indicated, in conformity with generally
accepted accounting principles.
/s/ McGladrey & Pullen, LLP
New York, New York
May 19, 1995
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<PAGE>
16
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- -------------------------------------------------------------------------------
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.
- -------------------------------------------------------------------------------
New York 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
Investors Fiduciary Trust Company
127 West 10th Street
Kansas City, Missouri 64105
Transfer Agent & Dividend Disbursing Agent
Supervised Service Company
811 Main Street
Kansas City, MO 64105
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