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NEW YORK
DAILY
TAX FREE
INCOME
FUND, INC.
Annual Report
April 30,1996
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<PAGE>
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NEW YORK
DAILY TAX FREE 600 FIFTH AVENUE, NEW YORK, NY 10020
INCOME FUND, INC. 212-830-5279
===============================================================================
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, 1996.
The Fund had net assets of $283,368,043 and 2,632 active shareholders as of
April 30, 1996. Dividends earned on a share held throughout the period were
$.030 which, when adjusted for the compounding effect of the reinvestment of
dividends, represents a 3.08% 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 W. Duff
President
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<PAGE>
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NEW YORK DAILY TAX FREE INCOME FUND, INC.
STATEMENT OF NET ASSETS
APRIL 30, 1996
===============================================================================
<TABLE>
<CAPTION>
Ratings (a)
----------------
Face Maturity Value Standard
Amount Date Yield (Note 1) Moody's & Poor's
------ ---- ----- -------- ------- ------
Other Tax Exempt Investments (16.80%)
- -----------------------------------------------------------------------------------------------------------------------------------
<C> <C> <C> <C> <C> <C> <C>
$ 5,000,000 Brentwood, NY UFSD (Suffolk County, NY) TAN (c) 06/28/96 3.93% $ 5,003,810
5,000,000 Central Islip, NY UFSD TAN (c) 06/28/96 3.79 5,004,196
4,000,000 City of Cortland, NY School District
(Cortland & Tompkins Counties) RAN (c) 06/28/96 3.79 4,001,674
4,000,000 Dutchess County, NY BAN 08/02/96 3.71 4,004,698 MIG-1
2,950,000 Dutchess County, NY BAN - Series B (c) 02/28/97 3.09 2,958,277
3,000,000 NYC GO - Series B
Escrowed in U.S. Treasury Securities (c) 12/01/96 3.08 3,123,284
1,115,000 New York Medical Care Finance Agency RB
(Mental Health Services Facility) - Series A
MBIA Insured 02/15/97 3.34 1,125,717 Aaa AAA
3,900,000 Oswego County, NY
Board of Cooperative Educational Services (c) 06/25/96 3.80 3,902,145
3,062,000 Rochester, NY BAN (c) 10/31/96 3.74 3,069,932
7,200,000 Rockland County, NY Sewer BAN (c) 03/07/97 3.18 7,222,504
8,130,000 Westchester County, NY GO - Series A 12/15/96 3.42 8,184,223 Aaa AAA
- ----------- -----------
47,357,000 Total Other Tax Exempt Investments 47,600,460
- ----------- -----------
<CAPTION>
Other Variable Rate Demand Instruments (b) (66.25%)
- -----------------------------------------------------------------------------------------------------------------------------------
<C> <C> <C> <C> <C> <C> <C>
$ 5,300,000 Counties of Warren & Washington IDA IDRB
(Griffith Micro Science Inc. Project) - Series 1994
LOC First Chicago 12/01/14 4.20% $ 5,300,000 A1
3,000,000 Franklin County, NY IDA IDRB (Kes Chatauqua Project)
LOC Bank of Tokyo, Ltd. 07/01/21 4.10 3,000,000 A1
1,185,000 Glen Falls, NY IDA IDRB (Broad Street Plaza)
LOC Fleet National Bank 12/01/06 3.80 1,185,000 P1 A1
1,000,000 Islip, NY IDA IDRB (Brentwood Distribution) (c)
LOC Fleet National Bank 05/01/09 3.65 1,000,000
1,580,000 Metropolitan Museum of Art
(Dormitory Authority of New York) RB 1993 07/01/15 4.00 1,580,000 VMIG-1 A1+
6,900,000 Metropolitan Transportation Authority - Series 1991A
LOC Morgan Guaranty/Bk of Tokyo/Mitsubishi Bk/Sumitomo
Bk/Industrial Bk of Japan/Natwest 07/01/21 3.90 6,900,000 VMIG-1 A1
470,000 Monroe County, NY IDA IDRB (Brazil Merk Partnership)
LOC Fleet National Bank 01/01/06 3.70 470,000 P1 A1
</TABLE>
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See Notes to Financial Statements.
<PAGE>
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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)
- -----------------------------------------------------------------------------------------------------------------------------------
<C> <C> <C> <C> <C> <C> <C>
$ 1,000,000 Nassau County, NY IDA IDRB (Manhassett Association) (c)
LOC Bankers Trust Company 12/01/99 4.10% $ 1,000,000
2,200,000 New York City GO 1993 - Series E-3
LOC Morgan Guaranty 08/01/23 4.00 2,200,000 VMIG-1 A1+
2,800,000 New York City Trust Cultural Resource RB (Jewish Museum)
LOC Sumitomo Bank, Ltd. 12/01/21 4.20 2,800,000 VMIG-1 A1
2,300,000 New York City Trust Cultural Resource RB
(Museum of Broadcasting)
LOC Sumitomo Bank, Ltd. 05/01/14 4.20 2,300,000 VMIG-1 A1
5,000,000 New York City, NY - Subseries E-4
LOC State Street Bank & Trust Co. 08/01/21 4.00 5,000,000 VMIG-1 A1+
3,600,000 New York City, NY GO - Series E2
LOC Industrial Bank of Japan, Ltd. 08/01/21 4.15 3,600,000 VMIG-1 A1
1,900,000 New York City, NY GO - Series E5
LOC Sumitomo Bank, Ltd. 08/01/16 4.15 1,900,000 VMIG-1 A1
2,500,000 New York City, NY GO Bond - Series B
FGIC Insured 10/01/22 4.20 2,500,000 VMIG-1 A1+
7,000,000 New York City, NY GO Bond - Series E-4
LOC State Street Bank & Trust Co. 08/01/22 4.00 7,000,000 VMIG-1 A1+
7,200,000 New York City, NY GO Bond - Subseries A-7
LOC Morgan Guaranty 08/01/20 4.00 7,200,000 VMIG-1 A1+
1,500,000 New York City, NY GO Bond - Subseries E-6
FGIC Insured 08/01/19 4.00 1,500,000 VMIG-1 A1+
2,000,000 New York City, NY HDC (East 17th St.) - Series A
LOC Chemical Bank 01/01/23 4.00 2,000,000 A1+
6,500,000 New York City, NY HDC (East 96th St.) - Series 1990A
LOC Bank of Tokyo - Mitsubishi Trust Bank 08/01/15 3.60 6,500,000 VMIG-1
3,000,000 New York City, NY HDC
(Upper Fifth Avenue Project) - Series 1989A
LOC Bankers Trust Company 01/01/16 3.90 3,000,000 VMIG-1
11,100,000 New York City, NY IDA (Nippon Cargo Airlines Company)
LOC Industrial Bank of Japan, Ltd. 11/01/15 4.75 11,100,000 A1
5,200,000 New York City, NY IDRB (Airport Project) - Series 1985
LOC Bayerische Landesbank Girozentrale 04/01/00 4.00 5,200,000 P1 A1+
</TABLE>
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See Notes to Financial Statements.
<PAGE>
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NEW YORK DAILY TAX FREE INCOME FUND, INC.
STATEMENT OF NET ASSETS (CONTINUED)
APRIL 30, 1996
===============================================================================
<TABLE>
<CAPTION>
Ratings (a)
----------------
Face Maturity Value Standard
Amount Date Yield (Note 1) Moody's & Poor's
------ ---- ----- -------- ------- ------
Other Variable Rate Demand Instruments (b) (Continued)
- -----------------------------------------------------------------------------------------------------------------------------------
<C> <C> <C> <C> <C> <C> <C>
$ 1,300,000 New York State Dormitory Authority RB
LOC Wachovia Bank & Trust Co., N.A. 07/01/23 4.30% $ 1,300,000 VMIG-1
4,200,000 New York State ERDA PCRB
(Central Hudson Gas & Electric) - Series A
LOC Morgan Guaranty 11/01/20 3.45 4,200,000 P1
2,000,000 New York State ERDA PCRB
(Central Hudson Gas & Electric) - Series B
LOC Deutsche Bank A.G. 11/01/20 3.45 2,000,000 P1 A1+
2,400,000 New York State ERDA PCRB
(Niagara Mohawk Power Corp.) (c)
LOC Toronto-Dominion Bank 03/01/27 4.30 2,400,000
6,400,000 New York State ERDA PCRB
(Niagara Mohawk Power Corp.) - Series 1988A
LOC Morgan Guaranty 12/01/23 4.15 6,400,000 A1+
1,400,000 New York State ERDA PCRB
(Niagara Mohawk Power Corporation) - Series 1985C
LOC Canadian Imperial Bank of Commerce 12/01/25 4.00 1,400,000 P1
10,700,000 New York State ERDA PCRB
(Niagara Mohawk Power Corporation) - Series A
LOC Toronto-Dominion Bank 12/01/26 4.10 10,700,000 P1
2,700,000 New York State ERDA PCRB
(Rochester Gas & Electric) - Series 1984
LOC The Bank of New York 10/01/14 3.30 2,700,000 P1
505,000 New York State JDA - Series B 03/01/05 4.40 505,000 VMIG-1
685,000 New York State JDA - Series D
LOC Sumitomo Bank, Ltd. 03/01/99 3.50 685,000 VMIG-1 A1
800,000 New York State JDA - Series G
LOC Sumitomo Bank, Ltd. 03/01/99 3.50 800,000 VMIG-1 A1
3,300,000 New York State JDA Special Purpose RB 03/01/02 4.40 3,300,000 VMIG-1 A1
12,400,000 New York State (LGAC)
LOC Credit Suisse/Swiss Bank/Union Bank of Switzerland 04/01/22 3.85 12,400,000 VMIG-1 A1+
4,900,000 New York State (LGAC) - Series E
LOC Canadian Imperial Bank of Commerce 04/01/25 4.00 4,900,000 VMIG-1 A1+
4,900,000 New York State (LGAC) - Series G
LOC National Westminster Bank PLC 04/01/25 3.85 4,900,000 VMIG-1 A1
</TABLE>
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See Notes to Financial Statements.
<PAGE>
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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)
- ----------------------------------------------------------------------------------------------------------------------------------
<C> <C> <C> <C> <C> <C> <C>
$ 5,800,000 New York State (LGAC) RB - Series 1994B
LOC Swiss Bank Corporation 04/01/23 3.80% $ 5,800,000 VMIG-1 A1+
8,000,000 New York State Medical Care Facilities Financial Authority
LOC Chemical Bank 11/01/15 4.05 8,000,000 VMIG-1
1,400,000 New York State Medical Care
Pooled Equipment Authority - Series 1994A
LOC Chemical Bank 11/01/03 4.05 1,400,000 VMIG-1
4,600,000 New York, NY - Series B Subseries B-6
MBIA Insured 08/15/05 4.00 4,600,000 VMIG-1 A1+
6,700,000 Oswego County, NY IDA PCRB
(Philip Morris Companies Incorporated) 12/01/08 4.05 6,700,000 P1 A1
100,000 Port Authority of New York & New Jersey Versatile
Structured Obligations - Series 3 06/01/20 3.90 100,000 VMIG-1 A1+
500,000 Puerto Rico Industrial Medical & Environmental PCFA PCRB
(Ana Mendez Foundation)
LOC Bank of Tokyo, Ltd. 12/01/15 4.15 500,000 A1
500,000 Southeast, NY IDA (1989 Unilock, NY)
LOC National Bank of Detroit 11/01/97 4.10 500,000 P1 A1+
500,000 Southeast, NY IDA (1989 Unilock, NY)
LOC National Bank of Detroit 11/01/96 4.10 500,000 P1 A1+
500,000 Southeast, NY IDA (1989 Unilock, NY)
LOC National Bank of Detroit 11/01/98 4.10 500,000 P1 A1+
500,000 Southeast, NY IDA (1989 Unilock, NY)
LOC National Bank of Detroit 11/01/99 4.10 500,000 P1 A1+
500,000 Southeast, NY IDA (1989 Unilock, NY)
LOC National Bank of Detroit 11/01/00 4.10 500,000 P1 A1+
200,000 Southeast, NY IDA (1989 Unilock, NY)
LOC National Bank of Detroit 11/01/01 4.10 200,000 P1 A1+
7,100,000 Suffolk County, NY IDA
(Nissequogue Cogen Partners) - Series 1993
LOC Toronto-Dominion Bank 12/15/23 4.25 7,100,000 VMIG-1 A1+
8,000,000 Suffolk County, NY Water Authority BAN 12/06/99 4.10 8,000,000 VMIG-1
- ----------- -----------
187,725,000 Total Other Variable Rate Demand Instruments 187,725,000
- ----------- -----------
</TABLE>
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See Notes to Financial Statements.
<PAGE>
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NEW YORK DAILY TAX FREE INCOME FUND, INC.
STATEMENT OF NET ASSETS (CONTINUED)
APRIL 30, 1996
===============================================================================
<TABLE>
<CAPTION>
Ratings (a)
----------------
Face Maturity Value Standard
Amount Date Yield (Note 1) Moody's & Poor's
------ ---- ----- -------- ------- ------
Put Bonds (d) (4.32%)
- -----------------------------------------------------------------------------------------------------------------------------------
<C> <C> <C> <C> <C> <C> <C>
$ 390,000 Fulton County, NY IDA (LCM Properties Realty Trust) (c)
LOC The Bank of New York 06/15/96 4.15% $ 390,000
5,000,000 New York State ERDA (Rochester Gas & Electric)
LOC Credit Suisse 11/15/96 3.75 5,000,000 Aa2
6,865,000 New York State ERDA PCRB (Long Island Lighting Co.)
LOC Deutsche Bank A.G. 03/01/97 3.25 6,865,000 VMIG-1
- ----------- -----------
12,255,000 Total Put Bonds 12,255,000
- ----------- -----------
<CAPTION>
Tax Exempt Commercial Paper (3.39%)
- -----------------------------------------------------------------------------------------------------------------------------------
<C> <C> <C> <C> <C> <C> <C>
$ 2,100,000 NYC Muni Water
LOC Credit Suisse 05/03/96 3.30% $ 2,100,000 P1 A1+
2,500,000 New York City Municipal Water - Series E
LOC Toronto-Dominion Bank/Bank of Nova Scotia 05/08/96 3.30 2,500,000 P1 A1+
5,000,000 New York City GO
MBIA Insured 08/07/96 3.20 5,000,000 MIG-1 A1+
- ----------- -----------
9,600,000 Total Tax Exempt Commercial Paper 9,600,000
- ----------- -----------
<CAPTION>
Variable Rate Demand Instruments - Participations (b) (5.08%)
- -----------------------------------------------------------------------------------------------------------------------------------
<C> <C> <C> <C> <C> <C> <C>
$ 230,014 Auburn, NY IDA IDRB
(Bo-Mer Manufacturing Company Incorporated)
LOC Chemical Bank 10/01/00 5.36% $ 230,014 P1 A1
315,000 BSE Corporation Project
LOC Chemical Bank 07/01/01 5.36 315,000 P1 A1
359,959 Centennial Associates/W & H Stampings, Incorporated
LOC Chemical Bank 10/01/00 5.36 359,959 P1 A1
344,828 Datagraphic Incorporated
LOC Chemical Bank 10/01/98 5.36 344,828 P1 A1
1,575,000 Executive Square Business Park
LOC Chemical Bank 06/01/01 5.36 1,575,000 P1 A1
258,620 Faden Paper Supply Company
LOC Chemical Bank 01/01/00 5.36 258,620 P1 A1
80,000 Ferrara Brothers Building Materials Corporation - Series 1981
LOC Chemical Bank 01/01/97 5.36 80,000 P1 A1
930,600 GL II Associates
LOC Chemical Bank 01/01/99 5.36 930,600 P1 A1
1,732,500 Giaquinto Joint Venture
LOC Chemical Bank 07/01/02 5.36 1,732,500 P1 A1
</TABLE>
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See Notes to Financial Statements.
<PAGE>
- -------------------------------------------------------------------------------
===============================================================================
<TABLE>
<CAPTION>
Ratings (a)
----------------
Face Maturity Value Standard
Amount Date Yield (Note 1) Moody's & Poor's
------ ---- ----- -------- ------- ------
Variable Rate Demand Instruments - Participations (b) (Continued)
- -----------------------------------------------------------------------------------------------------------------------------------
<C> <C> <C> <C> <C> <C> <C>
$ 328,457 I.G. Federal Electric Supply Corporation 1984
LOC Chemical Bank 11/01/99 5.36% $ 328,457 P1 A1
613,760 Metro Seliger Industries, Incorporated 1984
LOC Chemical Bank 08/10/99 5.36 613,760 P1 A1
237,364 Nassau County, NY IDA IDRB
(Steven Klein/Normandie Metal Fabricators)
LOC Chemical Bank 11/01/99 5.36 237,364 P1 A1
239,972 New York City, IDA IDRB (Precision Plating Incorporated)
LOC Chemical Bank 09/01/00 5.36 239,972 P1 A1
438,925 New York City, NY
(Seybert-Nicholas Printing Corporation/Kenner Printing)
LOC Chemical Bank 06/01/00 5.36 438,925 P1 A1
188,888 New York City, NY IDA IDRB
(Abigail Press, Incorporated Project)
LOC Chemical Bank 02/01/99 5.36 188,888 P1 A1
67,500 New York City, NY IDA IDRB (Zaro's Bakeshop Incorporated)
LOC Chemical Bank 11/01/96 5.36 67,500 P1 A1
235,583 One Crouse Medical Plaza
LOC Chemical Bank 12/10/98 5.36 235,583 P1 A1
1,275,000 Penn-Plax Plastics, Nassau County
LOC Dai-Ichi Kangyo Bank, Ltd. 01/01/00 5.36 1,275,000 P1 A1
4,261,814 Puntillo Limited Partner
LOC Dai-Ichi Kangyo Bank, Ltd. 10/01/04 5.55 4,261,814 P1 A1
55,000 Ram Realty Company Project
LOC The Bank of New York 02/01/99 4.95 55,000 P1 A1
60,668 Rozal Properties Project
LOC Chemical Bank 09/01/96 5.36 60,668 P1 A1
443,306 Texpak Incorporated Project
LOC Chemical Bank 01/01/01 5.36 443,306 P1 A1
118,615 Ulster County, NY IDA IDRB (Fin Pan Incorporated Project)
LOC Chemical Bank 11/01/99 5.36 118,615 P1 A1
- ----------- -----------
14,391,373 Total Variable Rate Demand Instruments - Participations 14,391,373
- ----------- -----------
<CAPTION>
Variable Rate Demand Instruments - Private Placements (b) (3.65%)
- -----------------------------------------------------------------------------------------------------------------------------------
<C> <C> <C> <C> <C> <C> <C>
$ 631,340 Adirondack Transit Lines
LOC Key Bank, N.A. 02/01/01 4.95% $ 631,340 P1 A1
</TABLE>
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See Notes to Financial Statements.
<PAGE>
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NEW YORK DAILY TAX FREE INCOME FUND, INC.
STATEMENT OF NET ASSETS (CONTINUED)
APRIL 30, 1996
===============================================================================
<TABLE>
<CAPTION>
Ratings (a)
----------------
Face Maturity Value Standard
Amount Date Yield (Note 1) Moody's & Poor's
------ ---- ----- -------- ------- ------
Variable Rate Demand Instruments - Private Placements (b) (Continued)
- -----------------------------------------------------------------------------------------------------------------------------------
<C> <C> <C> <C> <C> <C> <C>
$ 6,500,000 Blazer Real Estate 1990
LOC Union Bank of Switzerland 09/01/21 5.36% $ 6,500,000 P1 A1
723,000 FTS Systems Incorporated
LOC Key Bank, N.A. 01/15/09 5.36 723,000 P1 A1
301,000 J. Treffiletti & Sons
LOC Key Bank, N.A. 09/01/00 4.95 301,000 P1 A1
900,000 Rockland County, NY IDA
(Bendix Mouldings Incorporated Project) - Series 1985
LOC Standard Charter Bank 12/01/01 4.95 900,000 P1 A1
312,083 Troy Mall Associates - Series 1985B
LOC Key Bank, N.A. 07/01/15 4.95 312,083 P1 A1
973,750 Troy Mall Associates - Series 1985C
LOC Key Bank, N.A. 04/01/16 4.95 973,750 P1 A1
- ----------- -----------
10,341,173 Total Variable Rate Demand Instruments - Private Placements 10,341,173
- ----------- -----------
Total Investments (99.49%) (Cost 281,913,006+) 281,913,006
Cash and Other Assets, Net of Liabilities (0.51%) 1,455,037
-----------
Net Assets (100.00%), 283,370,297 Shares Outstanding (Note 3) $283,368,043
===========
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>
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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.
(d) The maturity date indicated is the next put date.
<TABLE>
<CAPTION>
KEY:
<C> <C> <C> <C> <C> <C>
BAN = Bond Anticipation Note LGAC = Local Government Assistance Corporation
ERDA = Energy and Research Development Authority PCFA = Pollution Control Financial Authority
GO = Government Obligation PCRB = Pollution Control Revenue Bond
HDC = Housing Development Corporation RAN = Revenue Anticipation Note
IDA = Industrial Development Authority RB = Revenue Bond
IDRB = Industrial Development Revenue Bond TAN = Tax Anticipation Note
JDA = Job Development Authority UFSD = Unified School District
</TABLE>
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See Notes to Financial Statements.
<PAGE>
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NEW YORK DAILY TAX FREE INCOME FUND, INC.
STATEMENT OF OPERATIONS
YEAR ENDED APRIL 30, 1996
===============================================================================
<TABLE>
<CAPTION>
INVESTMENT INCOME
<C> <C>
Income:
Interest........................................................ $ 10,561,894
--------------
Expenses: (Note 2)
Investment management fee........................................ 819,852
Administration fee............................................... 558,233
Shareholder servicing fee........................................ 546,568
Custodian expenses............................................... 33,167
Shareholder servicing and
related shareholder expenses................................ 190,802
Legal, compliance and filing fees................................ 38,463
Audit and accounting............................................. 80,398
Directors' fees and expenses..................................... 20,000
Other expenses................................................... 15,933
-------------
Total expenses.............................................. 2,303,416
Less: Expenses paid indirectly.............................. ( 7,781)
-------------
Net expenses..................................... 2,295,635
-------------
Net investment income.............................................. 8,266,259
<CAPTION>
REALIZED GAIN (LOSS) ON INVESTMENTS
<C> <C>
Net realized gain (loss) on investments............................ -0-
-------------
Increase in net assets from operations............................. $ 8,266,259
=============
</TABLE>
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See Notes to Financial Statements.
<PAGE>
- -------------------------------------------------------------------------------
NEW YORK DAILY TAX FREE INCOME FUND, INC.
STATEMENTS OF CHANGES IN NET ASSETS
YEARS ENDED APRIL 30, 1996 AND 1995
===============================================================================
<TABLE>
<CAPTION>
1996 1995
-------- --------
<C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income....................................... $ 8,266,259 $ 6,357,340
Net realized gain (loss) on investments..................... -- 284
--------------- ---------------
Increase in net assets from operations.......................... 8,266,259 6,357,624
Dividends to shareholders from net investment income............ ( 8,266,259)* ( 6,357,340)*
Capital share transactions (Note 3)............................. 28,946,430 36,073,321
--------------- ---------------
Total increase (decrease)................................... 28,946,430 36,073,605
Net assets:
Beginning of year........................................... 254,421,613 218,348,008
--------------- ---------------
End of year................................................. $ 283,368,043 $ 254,421,613
=============== ===============
* Designated as exempt-interest dividends for federal income tax purposes.
</TABLE>
- -------------------------------------------------------------------------------
See Notes to Financial Statements.
<PAGE>
- -------------------------------------------------------------------------------
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 is a short-term, tax exempt money market fund. 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) Use of Estimates -
The preparation of financial statements in conformity with generally
accepted accounting principles 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), 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, 1996.
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. Prior to December
1, 1995, the administration fee was .20%.
- -------------------------------------------------------------------------------
<PAGE>
- -------------------------------------------------------------------------------
===============================================================================
2. Investment Management Fees and Other Transactions with Affiliates
(Continued)
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.
The Manager is a wholly-owned subsidiary of New England Investment Companies,
L.P. ("NEIC"). On August 16, 1995, New England Mutual Life Insurance Company
("The New England"), the owner of NEIC's general partner and a majority owner of
the limited partnership interest in NEIC, entered into an agreement to merge
with Metropolitan Life Insurance Company ("MetLife"), with MetLife to be the
survivor of the merger. The merger is subject to several conditions, including
the required approval, by shareholders of the Fund of a proposed new investment
advisory agreement, intended to take effect at the time of the merger. The new
agreement will be substantially similar to the existing agreement.
Included in the Statement of Operations under the caption "Shareholder servicing
and related shareholder expenses" are fees of $38,036 paid to Reich & Tang
Services L.P., an affiliate of the Manager as servicing agent for the Fund.
Included in the Statement of Operations under the captions "Custodian expenses"
and "Shareholder servicing and related shareholder expenses" are expense offsets
of $7,781.
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, 1996, 20,000,000,000 shares of $.001 par value stock were
authorized and capital paid in amounted to $283,368,608. Transactions in capital
stock, all at $1.00 per share, were as follows:
<TABLE>
<CAPTION>
Year Year
Ended Ended
April 30, 1996 April 30, 1995
-------------- --------------
<C> <C> <C>
Sold................................... 452,103,464 448,737,421
Issued on reinvestment of dividends.... 7,544,314 5,640,644
Redeemed............................... ( 430,701,348) ( 418,304,744)
------------- ------------
Net increase (decrease)................ 28,946,430 36,073,321
============= =============
</TABLE>
4. Sales of Securities
Accumulated undistributed realized losses at April 30, 1996 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.
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<PAGE>
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NEW YORK DAILY TAX FREE INCOME FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
===============================================================================
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 71% 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.
6. Selected Financial Information
<TABLE>
<CAPTION>
Year Ended April 30,
-----------------------------------------------------------------
1996 1995 1994 1993 1992
--------- --------- --------- --------- ---------
<C> <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............. .030 .027 0.018 0.023 0.037
Less distributions:
Dividends from net investment income .030 .027 0.018 0.023 0.037
--------- ---------- --------- --------- ---------
Net asset value, end of year.......... $ 1.000 $ 1.000 $ 1.000 $1.000 $ 1.000
========= ========== ========= ========= =========
Total Return.......................... 3.08% 2.74% 1.84% 2.28% 3.73%
Ratios/Supplemental Data
Net assets, end of year (000)......... $283,368 $254,422 $218,348 $210,486 $202,291
Ratios to average net assets:
Expenses.......................... .84%* 0.87% 0.89% 0.89% 0.87%
Net investment income............. 3.02% 2.71% 1.82% 2.25% 3.63%
* Includes expense offsets.
</TABLE>
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<PAGE>
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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, 1996, 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, 1996, 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, 1996, 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 28, 1996
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<PAGE>
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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, Transfer Agent
& Dividend Disbursing Agent
Investors Fiduciary Trust Company
127 West 10th Street
Kansas City, Missouri 64105
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