<PAGE>
- --------------------------------------------------------------------------------
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 semi-annual report of New York Daily Tax Free
Income Fund, Inc. for the period May 1, 1997 through October 31, 1997.
The Fund had net assets of $354,223,409 and 2,745 active shareholders as of
October 31, 1997.
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>
- --------------------------------------------------------------------------------
NEW YORK DAILY TAX FREE INCOME FUND, INC.
STATEMENT OF NET ASSETS
OCTOBER 31, 1997
(UNAUDITED)
================================================================================
<TABLE>
<CAPTION>
Ratings (a)
----------------
Face Maturity Value Standard
Amount Date Yield (Note 1) Moody's & Poor's
------ ---- ----- -------- ------- ------
Other Tax Exempt Investments (16.53%)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$ 2,380,000 Chitenango CSD RAN (c) 06/25/98 3.80% $ 2,385,874
2,560,000 Corning, NY Community College (c) 08/21/98 3.85 2,561,959
3,450,000 Cuba-Rushford CSD Alleghany County, NY BAN (c) 01/07/98 3.73 3,451,296
3,000,000 Enlarged Ogdenburg CSD, St. Lawrence Cty., NY RAN (c) 06/25/98 3.85 3,000,731
2,000,000 Erie City, NY
LOC Union Bank of Switzerland 10/29/98 3.77 2,012,916 MIG-1
4,980,000 Greenwood Lake UFSD Orange County, NY BAN (c) 06/10/98 3.82 4,987,177
4,900,000 Homer, NY CSD RAN (c) 06/26/98 3.80 4,900,883
4,127,700 Lansing CSD, Tompkins County, NY (c) 02/12/98 3.70 4,133,194
11,625,000 Manchester Shoetville, NY CSD BAN 08/20/98 3.84 11,656,958 MIG-1
2,000,000 Potsdam CSD, St. Lawrence County, NY (c) 01/28/98 3.75 2,001,691
2,500,000 Sullivan County, NY TAN Custodial Receipts (c)
LOC State Street Bank & Trust Co. 03/19/98 3.66 2,502,625
4,463,000 Syracuse, NY BAN - Series A (c) 12/19/97 3.61 4,465,603
2,500,000 Ulster County, New York TAN Custodial Receipts (c)
LOC State Street Bank & Trust Co. 03/18/98 3.66 2,502,593
7,990,000 Valley Stream Central High School Nassau County, NY TAN (c) 06/30/98 3.85 7,990,997
------------ ------------
58,475,700 Total Other Tax Exempt Investments 58,554,497
------------ ------------
<CAPTION>
Other Variable Rate Demand Instruments (b) (65.75%)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$ 5,000,000 Counties of Warren & Washington IDA IDRB
(Griffith Micro Science Inc. Project) - Series 1994
LOC First National Bank of Chicago 12/01/14 3.70% $ 5,000,000 A1
3,000,000 Franklin County, NY IDA IDRB (Kes Chatauqua Project)
LOC Bank of Tokyo - Mitsubishi Bank, Ltd. 07/01/21 3.75 3,000,000 A1
1,065,000 Glen Falls, NY IDA IDRB (Broad Street Plaza)
LOC Fleet National Bank 12/01/06 3.80 1,065,000 P1 A1
1,000,000 Islip, NY IDA Brentwood (c)
LOC Fleet National Bank 05/01/09 3.70 1,000,000
1,580,000 Metropolitan Museum of Art
(Dormitory Authority of New York) RB - Series 1993A 07/01/15 3.50 1,580,000 VMIG-1 A1+
6,700,000 Metropolitan Transportation Authority - Series 1991A
LOC Morgan Guaranty/Bk of Tokyo/Mitsubishi Bk/
Sumitomo Bk/Industrial Bk of Japan/Natwest 07/01/21 3.75 6,700,000 VMIG-1 A1
</TABLE>
- --------------------------------------------------------------------------------
See Notes to 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 (b) (Continued)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$ 420,000 Monroe County, NY IDA IDRB (Brazil Merk Partnership)
LOC Fleet National Bank 01/01/06 4.20% $ 420,000 P1 A1
8,000,000 Monroe County, NY IDA RB
(Life Care Community Jewish Home) - Series B
LOC Manufacturers & Trading Trust Company 04/01/04 3.70 8,000,000 VMIG-1
1,000,000 Nassau County, Manhassett (c)
LOC Bankers Trust Company 12/01/99 3.65 1,000,000
4,400,000 New York City HDC Residential RB (Montefiore Medical Center)
LOC Chase Manhattan Bank, N.A. 05/01/30 3.70 4,400,000 A1
2,000,000 New York City Trust Cultural Resource RB (Jewish Museum) 12/01/21 3.75 2,000,000 VMIG-1 A1
1,800,000 New York City Trust Cultural Resource RB (Museum of Broadcasting)
LOC Sumitomo Bank, Ltd. 05/01/14 3.65 1,800,000 VMIG-1 A1
1,100,000 New York City Water Finance Authority
Water & Sewer System RB - Series C Bonds
FGIC Insured 06/15/23 4.00 1,100,000 VMIG-1 A1+
2,700,000 New York City, NY - Subseries E-4
LOC State Street Bank & Trust Co. 08/01/21 4.05 2,700,000 VMIG-1 A1+
2,800,000 New York City, NY GO - Series E-2
LOC Morgan Guaranty Trust Company 08/01/21 4.05 2,800,000 VMIG-1 A1+
1,500,000 New York City, NY GO - Subseries E-5
LOC Morgan Guaranty Trust Company 08/01/09 4.05 1,500,000 VMIG-1 A1+
2,000,000 New York City, NY GO 1993 - Series E-3
LOC Morgan Guaranty Trust Company 08/01/23 4.05 2,000,000 VMIG-1 A1+
2,200,000 New York City, NY GO B-2
MBIA Insured 08/15/03 4.00 2,200,000 VMIG-1 A1+
1,200,000 New York City, NY GO Bond - Series 1993 Subseries E-5
LOC Morgan Guaranty Trust Company 08/01/10 4.05 1,200,000 VMIG-1 A1+
3,600,000 New York City, NY GO Bond - Series 1993 Subseries E-5
LOC Morgan Guaranty Trust Company 08/01/17 4.05 3,600,000 VMIG-1 A1+
4,315,000 New York City, NY GO Bond - Series A-5
LOC Kredietbank 08/01/15 4.00 4,315,000 VMIG-1 A1+
3,000,000 New York City, NY GO Bond - Series B
FGIC Insured 10/01/20 3.75 3,000,000 VMIG-1 A1+
4,550,000 New York City, NY GO Bond - Series B
FGIC Insured 10/01/22 3.75 4,550,000 VMIG-1 A1+
</TABLE>
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
<PAGE>
- --------------------------------------------------------------------------------
NEW YORK DAILY TAX FREE INCOME FUND, INC.
STATEMENT OF NET ASSETS (CONTINUED)
OCTOBER 31, 1997
(UNAUDITED)
================================================================================
<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>
$ 2,500,000 New York City, NY GO Bond - Series E-2
LOC Morgan Guaranty Trust Company 08/01/20 4.05% $ 2,500,000 VMIG-1 A1+
6,300,000 New York City, NY GO Bond - Series E-4
LOC State Street Bank & Trust Co. 08/01/22 4.05 6,300,000 VMIG-1 A1+
1,400,000 New York City, NY GO Bond - Series E-5
LOC Morgan Guaranty Trust Company 08/01/15 4.05 1,400,000 VMIG-1 A1+
12,100,000 New York City, NY GO Bond - Subseries E-6
FGIC Insured 08/01/19 4.05 12,100,000 VMIG-1 A1+
3,400,000 New York City, NY HDC (East 17th St.) - Series A
LOC Chase Manhattan Bank, N.A. 01/01/23 4.20 3,400,000 A1
6,500,000 New York City, NY HDC (East 96th St.) - Series 1990A
LOC Bank of Tokyo - Mitsubishi Bank, Ltd. 08/01/15 3.60 6,500,000 VMIG-1
10,800,000 New York City, NY IDA (Nippon Cargo Airlines Company)
LOC Industrial Bank of Japan, Ltd. 11/01/15 4.05 10,800,000 A1
5,200,000 New York City, NY IDRB (Airport Project) - Series 1985
LOC Bayerische Landesbank Girozentrale 04/01/00 3.65 5,200,000 P1 A1+
6,000,000 New York City, NY Municipal Water Finance
Authority & Sewer System - Series 1992C
FGIC Insured 06/15/22 4.00 6,000,000 VMIG-1 A1+
1,200,000 New York City, NY Municipal Water Finance
Authority & Sewer System RB
FGIC Insured 06/15/25 3.75 1,200,000 VMIG-1 A1+
2,075,000 New York JDA Special Purpose RB
LOC Fuji Bank, Ltd. 03/01/02 4.20 2,075,000 VMIG-1
1,000,000 New York State Dormitory Authority
(Cornell University) - Series B 07/01/25 4.00 1,000,000 VMIG-1 A1+
900,000 New York State Dormitory Authority (St. Francis at the Knolls)
LOC Banque Paribas 07/01/23 4.15 900,000 VMIG-1
5,000,000 New York State Dormitory Authority RB
LOC Hessen Landesbank 07/01/23 4.00 5,000,000 VMIG-1
5,000,000 New York State Dormitory Authority RB (Oxford University Press)
LOC Hessen Landesbank 07/01/25 3.50 5,000,000 VMIG-1
2,000,000 New York State ERDA PCRB
(Central Hudson Gas & Electric) - Series B
LOC Deutsche Bank A.G. 11/01/20 3.55 2,000,000 P1
</TABLE>
- --------------------------------------------------------------------------------
See Notes to 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 (b) (Continued)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$ 2,000,000 New York State ERDA PCRB
(Niagara Mohawk Power Corp.) - Series 1985A
LOC Toronto-Dominion Bank 07/01/15 3.90% $ 2,000,000 A1+
6,800,000 New York State ERDA PCRB
(Niagara Mohawk Power Corporation)
LOC Toronto-Dominion Bank 12/01/25 4.20 6,800,000 P1
11,550,000 New York State ERDA PCRB
(Niagara Mohawk Power Corporation) - Series 1985C
LOC Canadian Imperial Bank of Commerce 12/01/25 4.20 11,550,000 P1
2,000,000 New York State ERDA PCRB
(Niagara Mohawk Power Corporation) - Series 1988A
LOC Morgan Guaranty Trust Company 12/01/23 3.95 2,000,000 A1+
10,700,000 New York State ERDA PCRB
(Niagara Mohawk Power Corporation) - Series B
LOC Toronto-Dominion Bank 12/01/26 4.25 10,700,000 P1
10,000,000 New York State ERDA PCRB (Rochester Gas & Electric)
MBIA Insured 09/01/32 3.60 10,000,000 VMIG-1 A1+
470,000 New York State JDA 03/01/05 4.20 470,000 VMIG-1
4,310,000 New York State JDA - Series 1989 03/01/05 4.20 4,310,000 VMIG-1
590,000 New York State JDA - Series D
LOC Sumitomo Bank, Ltd. 03/01/99 4.15 590,000 VMIG-1 A1
685,000 New York State JDA - Series G
LOC Sumitomo Bank, Ltd. 03/01/99 4.15 685,000 VMIG-1 A1
2,900,000 New York State JDA Special Purpose RB 03/01/02 4.20 2,900,000 VMIG-1 A2
4,900,000 New York State LGAC - Series E
LOC Canadian Imperial Bank of Commerce 04/01/25 3.65 4,900,000 VMIG-1 A1+
4,900,000 New York State LGAC - Series G
LOC National Westminster Bank PLC 04/01/25 3.65 4,900,000 VMIG-1 A1+
5,700,000 New York State LGAC RB - Series 1994B
LOC Swiss Bank Corp. 04/01/23 3.60 5,700,000 VMIG-1 A1+
8,000,000 New York State Medical Care Facilities Financial Authority
LOC Chase Manhattan Bank, N.A. 11/01/15 3.60 8,000,000 VMIG-1
1,300,000 New York State Medical Care Pooled Equipment Authority - Series 1994A
LOC Chase Manhattan Bank, N.A. 11/01/03 3.65 1,300,000 VMIG-1
1,500,000 New York State Thruway Authority RB
FGIC Insured 01/01/24 4.20 1,500,000 VMIG-1 A1+
</TABLE>
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
<PAGE>
- --------------------------------------------------------------------------------
NEW YORK DAILY TAX FREE INCOME FUND, INC.
STATEMENT OF NET ASSETS (CONTINUED)
OCTOBER 31, 1997
(UNAUDITED)
================================================================================
<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>
$ 5,000,000 New York, NY Municipal Water Finance Authority
RB Municipal Securities Trust Receipts
MBIA Insured 06/15/23 3.75% $ 5,000,000 A1+
500,000 Puerto Rico Industrial Medical & Environmental PCFA PCRB
(Ana Mendez Foundation)
LOC Bank of Tokyo - Mitsubishi Bank, Ltd. 12/01/15 3.70 500,000 A1
500,000 Southeast, NY IDA (1989 Unilock, NY)
LOC First National Bank of Chicago 11/01/97 3.75 500,000 P1 A1+
500,000 Southeast, NY IDA (1989 Unilock, NY)
LOC First National Bank of Chicago 11/01/98 3.75 500,000 P1 A1+
500,000 Southeast, NY IDA (1989 Unilock, NY)
LOC First National Bank of Chicago 11/01/99 3.75 500,000 P1 A1+
500,000 Southeast, NY IDA (1989 Unilock, NY)
LOC First National Bank of Chicago 11/01/00 3.75 500,000 P1 A1+
200,000 Southeast, NY IDA (1989 Unilock, NY)
LOC First National Bank of Chicago 11/01/01 3.75 200,000 P1 A1+
6,600,000 Suffolk County, NY IDA (Nissequogue Cogen Partners) - Series 1993
LOC Toronto-Dominion Bank 12/15/23 3.75 6,600,000 VMIG-1 A1+
4,000,000 Suffolk County, NY Water Authority BAN 12/21/99 3.70 4,000,000 VMIG-1
------------ ------------
232,910,000 Total Other Variable Rate Demand Instruments 232,910,000
------------ ------------
<CAPTION>
Put Bonds (d) (1.94%)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$ 6,865,000 New York State ERDA PCRB (Long Island Lighting Co.)
LOC Deutsche Bank A.G. 03/01/98 3.60% $ 6,865,000 VMIG-1
------------ ------------
6,865,000 Total Put Bonds 6,865,000
------------ ------------
<CAPTION>
Tax Exempt Commercial Paper (9.85%)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$ 5,500,000 Dorm Authority State of NY
(Memorial Sloan Kettering Cancer Center) - Series 1989C
LOC Chase Manhattan Bank, N.A. 11/20/97 3.65% $ 5,500,000 VMIG-1 A1+
6,000,000 New York City Municipal Assistance Corporation
LOC Landesbank Hessen 11/19/97 3.70 6,000,000 VMIG-1 A1+
5,500,000 New York City Municipal Assistance Corporation - Series K-3
LOC Landesbank Hessen 11/18/97 3.55 5,500,000 VMIG-1 A1+
11,000,000 New York City Municipal Water Finance Authority
LOC Credit Suisse First Boston 11/06/97 3.80 11,000,000 P1 A1+
2,900,000 New York City Municipal Water Finance Authority
LOC Toronto-Dominion Bank/Bank of Nova Scotia 12/18/97 3.75 2,900,000 P1 A1+
</TABLE>
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
<PAGE>
- --------------------------------------------------------------------------------
================================================================================
<TABLE>
<CAPTION>
Ratings (a)
----------------
Face Maturity Value Standard
Amount Date Yield (Note 1) Moody's & Poor's
------ ---- ----- -------- ------- ------
Tax Exempt Commercial Paper (Continued)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$ 4,000,000 New York State Environment Quality 1986 - Series 1997A
LOC Bayerische Landesbank/Landesbank Hessen 12/10/97 3.70% $ 4,000,000 VMIG-1 A1+
------------ ------------
34,900,000 Total Tax Exempt Commercial Paper 34,900,000
------------ ------------
<CAPTION>
Variable Rate Demand Instruments - Participations (b) (1.72%)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$ 225,000 BSE Corporation Project
LOC Chase Manhattan Bank, N.A. 07/01/01 5.53% $ 225,000 P1 A1
239,953 Centennial Associates/W & H Stampings, Incorporated
LOC Chase Manhattan Bank, N.A. 10/01/00 5.53 239,953 P1 A1
137,932 Datagraphic Incorporated
LOC Chase Manhattan Bank, N.A. 10/01/98 5.53 137,932 P1 A1
1,260,000 Executive Square Business Park
LOC Chase Manhattan Bank, N.A. 06/01/01 5.53 1,260,000 P1 A1
155,172 Faden Paper Supply Company
LOC Chase Manhattan Bank, N.A. 01/01/00 5.53 155,172 P1 A1
423,000 GL II Associates
LOC Chase Manhattan Bank, N.A. 01/01/99 5.53 423,000 P1 A1
1,417,500 Giaquinto Joint Venture
LOC Chase Manhattan Bank, N.A. 07/01/02 5.53 1,417,500 P1 A1
190,955 I.G. Federal Electric Supply Corporation 1984
LOC Chase Manhattan Bank, N.A. 11/01/99 5.53 190,955 P1 A1
337,640 Metro Seliger Industries, Incorporated 1984
LOC Chase Manhattan Bank, N.A. 08/10/99 5.53 337,640 P1 A1
135,592 Nassau County, NY IDA IDRB
(Steven Klein/Normandie Metal Fabricators)
LOC Chase Manhattan Bank, N.A. 11/01/99 5.53 135,592 P1 A1
278,923 New York City, NY
(Seybert-Nicholas Printing Corporation/Kenner Printing)
LOC Chase Manhattan Bank, N.A. 06/01/00 5.53 278,923 P1 A1
88,888 New York City, NY IDA IDRB
(Abigail Press, Incorporated Project)
LOC Chase Manhattan Bank, N.A. 02/01/99 5.53 88,888 P1 A1
107,083 One Crouse Medical Plaza
LOC Chase Manhattan Bank, N.A. 12/10/98 5.53 107,083 P1 A1
765,000 Penn-Plax Plastics, Nassau County
LOC Dai-Ichi Kangyo Bank, Ltd. 01/01/00 5.53 765,000 P1 A1
</TABLE>
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
<PAGE>
- --------------------------------------------------------------------------------
NEW YORK DAILY TAX FREE INCOME FUND, INC.
STATEMENT OF NET ASSETS (CONTINUED)
OCTOBER 31, 1997
(UNAUDITED)
================================================================================
<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>
$ 24,999 Ram Realty Company Project
LOC The Bank of New York 02/01/99 5.10% $ 24,999 P1 A1
303,302 Texpak Incorporated Project
LOC Chase Manhattan Bank, N.A. 01/01/01 5.53 303,302 P1 A1
------------ ------------
6,090,939 Total Variable Rate Demand Instruments - Participations 6,090,939
------------ ------------
<CAPTION>
Variable Rate Demand Instruments - Private Placements (b) (3.29%)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$ 453,609 Adirondack Transit Lines
LOC Key Bank, N.A. 02/01/01 5.10% $ 453,609 P1 A1
3,000,000 Blaser Real Estate 1986
LOC Union Bank of Switzerland 09/01/21 5.53 3,000,000 P1 A1
3,500,000 Blaser Real Estate 1990
LOC Union Bank of Switzerland 09/01/21 5.53 3,500,000 P1 A1
207,000 J. Treffiletti & Sons
LOC Key Bank, N.A. 09/01/00 5.10 207,000 P1 A1
3,300,000 New York City IDA Civic Facilities RB
(1997 Epiphany Community Nursery School Project)
LOC Swiss Bank Corp. 05/01/11 3.83 3,300,000 VMIG-1
287,083 Troy Mall Associates - Series 1985B
LOC Key Bank, N.A. 07/01/15 5.10 287,083 P1 A1
898,750 Troy Mall Associates - Series 1985C
LOC Key Bank, N.A. 04/01/16 5.10 898,750 P1 A1
----------- ------------
11,646,442 Total Variable Rate Demand Instruments - Private Placements 11,646,442
----------- ------------
Total Investments (99.08%) (Cost $350,966,878+) 350,966,878
Cash and Other Assets, Net of Liabilities (0.92%) 3,256,531
------------
Net Assets (100.00%) $354,223,409
============
Net asset value, offering and redemption price per share:
Class A, 354,094,759 shares outstanding (Note 3) $ 1.00
============
Class B, 139,576 shares outstanding (Note 3) $ 1.00
============
+ Aggregate cost for federal income tax purposes is identical.
</TABLE>
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
<PAGE>
- --------------------------------------------------------------------------------
================================================================================
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:
<S> <C> <C> <C> <C> <C>
BAN = Bond Anticipation Note LGAC = Local Government Assistance Corporation
CSD = Central School District PCFA = Pollution Control Financial Authority
ERDA = Energy and Research Development Authority PCRB = Pollution Control Revenue Bond
GO = General Obligation RAN = Revenue Anticipation Note
HDC = Housing Development Corporation RB = Revenue Bond
IDA = Industrial Development Authority TAN = Tax Anticipation Note
IDRB = Industrial Development Revenue Bond UFSD = Unified School District
JDA = Job Development Authority
</TABLE>
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
<PAGE>
- -------------------------------------------------------------------------------
NEW YORK DAILY TAX FREE INCOME FUND, INC.
STATEMENT OF OPERATIONS
SIX MONTHS ENDED OCTOBER 31, 1997
(UNAUDITED)
===============================================================================
<TABLE>
<CAPTION>
INVESTMENT INCOME
<S> <C>
Income:
Interest..................................................................... $ 6,745,758
-------------
Expenses: (Note 2)
Investment management fee.................................................... 536,478
Administration fee........................................................... 375,535
Shareholder servicing fee.................................................... 357,620
Custodian expenses........................................................... 10,732
Shareholder servicing and
related shareholder expenses............................................. 149,475
Legal, compliance and filing fees............................................ 15,379
Audit and accounting......................................................... 29,760
Directors' fees and expenses................................................. 7,500
Other expenses............................................................... 6,169
-------------
Total expenses........................................................... 1,488,648
Less: Expenses paid indirectly........................................... ( 1,488)
-------------
Net expenses.................................................. 1,487,160
-------------
Net investment income........................................................... 5,258,598
<CAPTION>
REALIZED GAIN (LOSS) ON INVESTMENTS
<S> <C>
Net realized gain (loss) on investments........................................ -0-
-------------
Increase in net assets from operations......................................... $ 5,258,598
==============
</TABLE>
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
<PAGE>
- --------------------------------------------------------------------------------
NEW YORK DAILY TAX FREE INCOME FUND, INC.
STATEMENTS OF CHANGES IN NET ASSETS
================================================================================
<TABLE>
<CAPTION>
Six Months
Ended Year
October 31, 1997 Ended
(Unaudited) April 30, 1997
----------------- --------------
INCREASE (DECREASE) IN NET ASSETS
<S> <C> <C>
Operations:
Net investment income......................................... $ 5,258,598 $ 7,969,041
Net realized gain (loss) on investments....................... -0- ( 8,672)
------------ ------------
Increase in net assets from operations........................ 5,258,598 7,960,369
Dividends to shareholders from net investment income
Class A....................................................... ( 5,258,098)* ( 7,968,922)*
Class B....................................................... ( 500)* ( 119)*
Capital share transactions (Note 3)
Class A....................................................... 30,337,631 40,386,831
Class B....................................................... 132,883 6,693
------------ ------------
Total increase (decrease)................................. 30,470,514 40,384,852
Net assets:
Beginning of period........................................... 323,752,895 283,368,043
------------ ------------
End of period................................................. $354,223,409 $323,752,895
============ ============
* 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
(UNAUDITED)
===============================================================================
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
has two classes of stock authorized, Class A and Class B. The Class A shares are
subject to a service fee pursuant to the Distribution 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, Class A and Class B shares represent the same interest in the income
and assets of the Fund. Distribution of Class B shares commenced October 10,
1996. 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.
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.
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
- --------------------------------------------------------------------------------
<PAGE>
- --------------------------------------------------------------------------------
================================================================================
2. Investment Management Fees and Other Transactions with Affiliates (Continued)
Agreement, only with respect to the Class A shares of the Fund. 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.
Included in the Statement of Operations under the caption "Shareholder servicing
and related shareholder expenses" are fees of $87,694 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 "Shareholder
servicing and related shareholder expenses" are expense offsets of $1,488.
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 October 31, 1997, 20,000,000,000 shares of $.001 par value stock were
authorized and capital paid in amounted to $354,232,646. Transactions in capital
stock, all at $1.00 per share, were as follows:
<TABLE>
<CAPTION>
Six Months Year
Ended Ended
October 31, 1997 April 30, 1997
---------------- --------------
<S> <C> <C>
Class A
-------
Sold...................................... 306,874,362 498,357,444
Issued on reinvestment of dividends....... 5,107,717 7,175,397
Redeemed.................................. ( 281,644,448) ( 465,146,010)
-------------- --------------
Net increase (decrease)................... 30,337,631 40,386,831
============== ==============
<CAPTION>
Six Months October 10, 1996
Ended (Commencement of Sales) to
October 31, 1997 April 30, 1997
---------------- --------------
<S> <C> <C>
Class B
-------
Sold...................................... 189,670 12,177
Issued on reinvestment of dividends....... 268 108
Redeemed.................................. ( 57,055) ( 5,592)
-------------- --------------
Net increase (decrease)................... 132,883 6,693
============== ==============
</TABLE>
4. Sales of Securities
Accumulated undistributed realized losses at October 31, 1997 amounted to
$9,237. Such losses represent tax basis net capital losses which may be carried
forward to offset future capital gains. Such losses expire April 30, 2005.
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 67% 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.
- --------------------------------------------------------------------------------
<PAGE>
- --------------------------------------------------------------------------------
NEW YORK DAILY TAX FREE INCOME FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
(UNAUDITED)
================================================================================
6. Selected Financial Information
<TABLE>
<CAPTION>
Class A Six Months Year Ended April 30,
- ------- Ended ----------------------------------------------------------------------
October 31, 1997 1997 1996 1995 1994 1993
---------------- ---------- ---------- ---------- ---------- ----------
<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............... 0.015 0.028 0.030 0.027 0.018 0.023
Less distributions:
Dividends from net investment income (0.015) ( 0.028) ( 0.030) ( 0.027) ( 0.018) ( 0.023)
-------- ------- ------- ------- ------- --------
Net asset value, end of period........ $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
========= ======== ======== ======== ======== =========
Total Return.......................... 2.99%* 2.80% 3.08% 2.74% 1.84% 2.28%
Ratios/Supplemental Data
Net assets, end of period (000)....... $354,084 $323,746 $283,368 $254,422 $218,348 $210,486
Ratios to average net assets:
Expenses............................ 0.83%*+ 0.82%+ 0.84%+ 0.87% 0.89% 0.89%
Net investment income............... 2.94%* 2.76% 3.02% 2.71% 1.82% 2.25%
Expenses paid indirectly............ 0.00%* 0.00% 0.00% -- -- --
<CAPTION>
Class B Six Months October 10, 1996
- ------- Ended (Commencement of Sales) to
October 31, 1997 April 30, 1997
---------------- ---------------------
<S> <C> <C>
Per Share Operating Performance:
(for a share outstanding throughout the period)
Net asset value, beginning of period............. $ 1.00 $ 1.00
--------- ---------
Income from investment operations:
Net investment income.......................... 0.016 0.017
Less distributions:
Dividends from net investment income ( 0.016) ( 0.017)
------- -------
Net asset value, end of period................... $ 1.00 $ 1.00
========= =========
Total Return..................................... 3.22%* 3.02%*
Ratios/Supplemental Data
Net assets, end of period (000).................. 139 7
Ratios to average net assets:
Expenses....................................... 0.63%*+ 0.62%*
Net investment income.......................... 3.12%* 2.99%*
Expenses paid indirectly....................... 0.00%* 0.00%
</TABLE>
* Annualized
+ Includes expenses paid indirectly.
- --------------------------------------------------------------------------------
<PAGE>
- --------------------------------------------------------------------------------
NEW YORK
DAILY
TAX FREE
INCOME
FUND, INC.
Semi-Annual Report
October 31,1997
(Unaudited)
- --------------------------------------------------------------------------------
<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.
- ------------------------------------------------------
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
801 Pennsylvania
Kansas City, Missouri 64105
Transfer Agent &
Dividend Disbursing Agent
Reich & Tang Services L.P.
600 Fifth Avenue
New York, New York 10020
- --------------------------------------------------------------------------------
<PAGE>
