<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, 1998 through October 31, 1998.
The Fund had net assets of $471,431,395 and 2,758 active shareholders as of
October 31, 1998.
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, 1998
(UNAUDITED)
================================================================================
<TABLE>
<CAPTION>
Ratings (a)
-----------------
Face Maturity Value Standard
Amount Date Yield (Note 1) Moody's & Poor's
------ ---- ----- ------ ------- -------
Other Tax Exempt Investments (14.75%)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$ 5,595,000 Clinton County, NY BAN (c) 12/11/98 3.75% $ 5,596,151
2,000,000 Corning, NY Community College (c) 08/19/99 3.65 2,004,586
9,950,000 Cattaraugus, Alleghany, Erie, & Wyoming Counties, NY BOCES (c) 12/30/98 3.84 9,951,816
10,000,000 Eastern Suffolk County, NY BOCES RAN (c) 06/23/99 3.67 10,001,787
4,250,000 Glens Falls, NY CSD RAN (c) 06/30/99 3.65 4,251,345
3,990,000 Holland Patent CSD Oneida and Herkimer Counties, NY (c) 12/04/98 3.80 3,990,504
4,365,000 New York State GO Bond - Series B (c) 03/01/99 3.61 4,377,026
4,900,000 Niagara County Wheatfield, NY CSD BAN (c) 12/30/98 3.75 4,903,371
2,525,000 Niagara County Wheatfield, NY BAN - Series 1998 (c) 07/08/99 3.58 2,526,156
3,000,000 Perry CSD, Wyoming & Livingston Counties, NY BAN (c) 02/04/99 3.65 3,000,371
4,300,000 Putman & Westchester Counties, NY BOCES RAN (c) 10/22/99 3.26 4,302,002
11,600,000 Saint Lawrence & Lewis Counties BOCES
Sole Supervisory District RAN (c) 06/28/99 3.65 11,603,580
1,265,000 Seneca, NY BAN (c) 09/30/99 3.52 1,266,942
1,748,000 South Jefferson CSD, NY (c) 06/29/99 3.73 1,751,800
------------ ------------
69,488,000 Total Other Tax Exempt Investments 69,527,437
------------ ------------
<CAPTION>
Other Variable Rate Demand Instruments (b) (74.36%)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$ 5,000,000 Counties of Warren & Washington, NY IDA IDRB
(Griffith Micro Science Incorporated Project) - Series 1994
LOC First National Bank of Chicago 12/01/14 3.20% $ 5,000,000 A1+
2,100,000 Commonwealth of Puerto Rico RB
(Highway & Transportation Authority)
AMBAC Insured 07/01/28 2.60 2,100,000 VMIG-1 A1+
1,000,000 Erie County, NY IDA ( Episcopal Church) - Series B
LOC Banque Paribas 02/01/05 2.90 1,000,000 VMIG-1
1,800,000 Great Neck Water Authority Water System RB - Series 1993A
FGIC Insured 01/01/20 2.95 1,800,000 VMIG-1 A1+
1,000,000 Islip, NY IDA Brentwood (c)
LOC Fleet National Bank 05/01/09 3.10 1,000,000
5,750,000 Jefferson County, NY IDA IDRB (c)
LOC PNC Bank, N.A. 09/01/18 3.30 5,750,000
1,575,000 Metropolitan Museum of Art
(New York State Dormitory Authority) - Series 1993A 07/01/15 2.70 1,575,000 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>
$ 1,160,000 Metropolitan Museum of Art
(New York State Dormitory Authority) - Series 1993B 07/01/23 2.70% $ 1,160,000 VMIG-1 A1+
1,000,000 Monroe County, NY IDA (Collegiate Housing Foundation)
LOC First Union National Bank 10/01/28 3.10 1,000,000 VMIG-1
370,000 Monroe County, NY IDA IDRB (Brazil Merk Partnership) (c)
LOC Fleet National Bank 01/01/06 3.70 370,000
8,000,000 Monroe County, NY IDA RB
(Life Care Community Jewish Home) - Series B
LOC Manufacturers & Traders 04/01/04 2.80 8,000,000 VMIG-1
1,000,000 Nassau County, NY IDA (Manhasset Association Project) (c)
LOC Bankers Trust Company 12/01/99 3.10 1,000,000
1,800,000 New York City, NY Cultural Resource RB
(Museum of Broadcasting Project) - Series 1989
LOC Kredietbank 05/01/14 2.80 1,800,000 VMIG-1 A1+
5,915,000 New York City, NY GO Bond - Series A-5
LOC Kredietbank 08/01/15 3.70 5,915,000 VMIG-1 A1+
1,200,000 New York City, NY GO Bond - Series A-7
LOC Morgan Guaranty Trust Company 08/01/20 3.70 1,200,000 VMIG-1 A1+
1,500,000 New York City, NY GO Bond - Series A-7
LOC Morgan Guaranty Trust Company 08/01/21 3.70 1,500,000 VMIG-1 A1+
2,000,000 New York City, NY GO Bond - Series B
FGIC Insured 10/01/22 3.60 2,000,000 VMIG-1 A1+
2,830,000 New York City, NY GO Bond - Series B
FGIC Insured 10/01/20 3.60 2,830,000 VMIG-1 A1+
6,200,000 New York City, NY GO Bond - Subseries B-2
MBIA Insured 08/15/03 3.70 6,200,000 VMIG-1 A1+
19,500,000 New York City, NY GO Bond - Series E-4
LOC State Street Bank & Trust Company 08/01/22 3.70 19,500,000 VMIG-1 A1+
1,300,000 New York City, NY GO Bond - Series E-5
LOC Morgan Guaranty Trust Company 08/01/10 3.70 1,300,000 VMIG-1 A1+
1,200,000 New York City, NY GO Bond - Series E-5
LOC Morgan Guaranty Trust Company 08/01/15 3.70 1,200,000 VMIG-1 A1+
1,200,000 New York City, NY GO Bond - Series E-5
LOC Morgan Guaranty Trust Company 08/01/16 3.70 1,200,000 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, 1998
(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>
$ 1,700,000 New York City, NY GO Bond - Series E-5
LOC Morgan Guaranty Trust Company 08/01/17 3.70% $ 1,700,000 VMIG-1 A1+
1,400,000 New York City, NY GO Bond - Series E-5
LOC Morgan Guaranty Trust Company 08/01/18 3.70 1,400,000 VMIG-1 A1+
5,800,000 New York City, NY GO Bond - Series E-5
LOC Morgan Guaranty Trust Company 08/01/19 3.70 5,800,000 VMIG-1 A1+
13,600,000 New York City, NY GO Bond - Subseries E-6
FGIC Insured 08/01/19 3.70 13,600,000 VMIG-1 A1+
1,025,000 New York City, NY GO Bond - Series 1993B
FGIC Insured 10/01/21 3.60 1,025,000 VMIG-1 A1+
6,800,000 New York City, NY GO Bond - Series 1993E-4
LOC State Street Bank & Trust Company 08/01/21 3.70 6,800,000 VMIG-1 A1+
4,630,000 New York City, NY GO Bond - Series 1994A-10
LOC Morgan Guaranty Trust Company 08/01/17 3.60 4,630,000 VMIG-1 A1+
3,500,000 New York City, NY GO Bond - Series 1994B
LOC Morgan Guaranty Trust Company 08/15/20 3.60 3,500,000 VMIG-1 A1+
2,000,000 New York City, NY GO Bond - Series 1995 Subseries B-3
MBIA Insured 08/15/04 3.70 2,000,000 VMIG-1 A1+
2,100,000 New York City, NY GO Bond
LOC Union Bank Switzerland 08/15/23 3.60 2,100,000 VMIG-1 A1+
1,000,000 New York City, NY GO Bond
LOC Union Bank Switzerland 08/15/21 3.60 1,000,000 VMIG-1 A1+
4,400,000 New York City, NY Housing Development Corporation
(Montefiore Medical Center Project) - Series 1993A
LOC Chase Manhattan Bank, N.A. 05/01/30 2.80 4,400,000 A1
6,525,000 New York City, NY Housing Development Corporation
Multifamily Rent Housing (Jane Street Development)
Fannie Mae Collateralized 09/15/28 3.00 6,525,000 A1+
2,000,000 New York City, NY Housing Development Corporation Multifamily RB
(Crotona Ave Project) - Series A
LOC Fleet National Bank 09/01/30 3.00 2,000,000 A1
5,000,000 New York City, NY Housing Development Corporation Multifamily RB
(Queenswood Apartment Project)
LOC National City Bank 02/01/17 2.80 5,000,000 VMIG-1 A1
11,300,000 New York City, NY IDA Special Facility RB
(Korean Airlines Company Limited Project) - Series 1997
LOC Bankers Trust Company 11/01/24 2.95 11,300,000 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>
$ 5,200,000 New York City, NY IDRB (Airport Services Project) - Series 1985 (c)
LOC Bayerische Landesbank Girozentrale 04/01/00 2.90% $ 5,200,000
11,500,000 New York City, NY Municipal Assistance Corporation - Series K-3
LOC Landesbank Hessen 07/01/08 2.70 11,500,000 VMIG-1 A1+
5,000,000 New York City, NY Municipal Water Finance Authority RB
Municipal Securities Trust Receipts
MBIA Insured 06/15/23 3.31 5,000,000 A1+
3,555,000 New York City, NY Municipal Water Finance Authority RB
Municipal Securities Trust Receipts
MBIA Insured 06/15/29 3.31 3,555,000 A1+
2,200,000 New York City, NY
Municipal Water Finance Authority & Sewer System - Series C
FGIC Insured 06/15/23 3.70 2,200,000 VMIG-1 A1+
1,900,000 New York City, NY
Municipal Water Finance Authority & Sewer System - Series 1992C
FGIC Insured 06/15/22 3.70 1,900,000 VMIG-1 A1+
6,200,000 New York City, NY
Municipal Water Finance Authority & Sewer System - Series 1995A
FGIC Insured 06/15/25 3.70 6,200,000 VMIG-1 A1+
2,600,000 New York City Transitional Finance Authority - Series C 05/01/28 3.70 2,600,000 VMIG-1
3,000,000 New York City, NY Trust for Cultural Resources
(Carnegie Hall) - Series 1990
LOC Westdeutsche Landesbank 12/01/10 2.70 3,000,000 VMIG-1 A1+
5,500,000 New York State Dormitory Authority RB
LOC Landesbank Hessen 07/01/23 3.65 5,500,000 VMIG-1
1,700,000 New York State Dormitory Authority RB
(New York Public Library) - Series B
LOC Canadian Imperical Bank of Commerce 07/01/22 2.70 1,700,000 VMIG-1 A1+
2,200,000 New York State Dormitory Authority RB (Saint Francis Center)
LOC Banque Paribas 07/01/23 3.75 2,200,000 VMIG-1
3,400,000 New York State Dormitory Authority (Oxford University Press, Inc.)
LOC Landesbank Hessen 07/01/25 2.75 3,400,000 VMIG-1
2,000,000 New York State ERDA PCRB
(Central Hudson Gas & Electric) - Series B
LOC Deutsche Bank A.G. 11/01/20 2.80 2,000,000 P1
</TABLE>
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
<PAGE>
- --------------------------------------------------------------------------------
NEW YORK DAILY TAX FREE INCOME FUND, INC.
STATEMENT OF NET ASSETS (CONTINUED)
OCTOBER 31, 1998
(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>
$ 4,200,000 New York State ERDA PCRB (New York Gas & Electric)
LOC Union Bank Switzerland 10/01/29 3.60% $ 4,200,000 VMIG-1 A1+
5,200,000 New York State ERDA PCRB
(Niagara Mohawk Power Corporation)
LOC Toronto-Dominion Bank 12/01/25 3.70 5,200,000 P1
13,200,000 New York State ERDA PCRB
(Niagara Mohawk Power Corporation) - Series B
LOC Toronto-Dominion Bank 12/01/26 3.75 13,200,000 P1
12,000,000 New York State ERDA PCRB
(Niagara Mohawk Power Corporation) - Series 1985
LOC Toronto-Dominion Bank 07/01/15 3.70 12,000,000 A1+
8,150,000 New York State ERDA PCRB
(Niagara Mohawk Power Corporation) - Series 1985C
LOC Canadian Imperial Bank of Commerce 12/01/25 3.70 8,150,000 P1
5,900,000 New York State ERDA
(Niagara Mohawk Power Corporation)
LOC Morgan Guaranty Trust Company 12/01/23 3.75 5,900,000 A1+
10,000,000 New York State ERDA PCRB
(Rochester Gas & Electric Corporation) - Series 1997A
MBIA Insured 08/01/32 2.75 10,000,000 VMIG-1 A1+
5,000,000 New York State HFA (Normandie Court II) - Series A
LOC Fleet National Bank 11/01/02 2.85 5,000,000 VMIG-1
8,000,000 New York State HFA HRB (Normandie Court I)
LOC Landesbank Hessen 05/15/15 2.75 8,000,000 VMIG-1 A1+
610,000 New York State JDA - Series G
LOC Bayerische Landesbank/Morgan Guaranty Trust Company 03/01/99 3.50 610,000 VMIG-1 A1+
490,000 New York State JDA - Series 1984D
LOC Bayerische Landesbank/Morgan Guaranty Trust Company 03/01/99 3.50 490,000 VMIG-1 A1
2,500,000 New York State LGAC - Series C
LOC Landesbank Hessen 04/01/25 2.75 2,500,000 VMIG-1 A1+
6,000,000 New York State LGAC - Series E
LOC Canadian Imperial Bank of Commerce 04/01/25 2.80 6,000,000 VMIG-1 A1+
1,100,000 New York State LGAC - Series E
LOC Bank of Nova Scotia 04/01/25 2.70 1,100,000 VMIG-1 A1+
4,800,000 New York State LGAC - Series G
LOC Bank of Nova Scotia 04/01/25 2.70 4,800,000 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>
$ 5,600,000 New York State LGAC - Series 1994B
LOC Kredietbank 04/01/23 2.70% $ 5,600,000 VMIG-1 A1+
8,000,000 New York State Medical Care Facilities Financial Authority
LOC Chase Manhattan Bank, N.A. 11/01/15 2.90 8,000,000 VMIG-1
1,000,000 New York State Medical Care Pooled Equipment Authority - Series 1994A
LOC Chase Manhattan Bank, N.A. 11/01/03 2.90 1,000,000 VMIG-1
8,200,000 New York State Municipal Assistance Corporation
(Public Benefit Corporation)
AMBAC Insured 07/01/08 2.70 8,200,000 P1 A1+
9,960,000 New York State Thruway Authority PT-1076
(Highway & Bridge Trust Fund Project)
AMBAC Insured 04/01/07 3.35 9,960,000 A1+
19,000,000 Niagara County, NY IDA
(American Refueling Company) - Series 1996D
LOC Wachovia Bank, N.A. 11/15/26 3.00 19,000,000 P1 A1+
2,000,000 Puerto Rico Industrial Medical & Environmental PCFA PCRB
(Ana Mendez Foundation)
LOC Banco Santander 10/01/21 2.40 2,000,000 A1+
6,500,000 Suffolk County, NY IDA
(Nissequogue Cogen Partners) - Series 1993
LOC Toronto-Dominion Bank 12/15/23 2.90 6,500,000 VMIG-1 A1+
------------ ------------
350,545,000 Total Other Variable Rate Demand Instruments 350,545,000
------------ ------------
<CAPTION>
Put Bond (d) (1.46%)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$ 6,865,000 New York State ERDA PCRB (Long Island Lighting Company)
LOC Deutsche Bank A.G. 03/01/99 3.58% $ 6,865,000 VMIG-1
------------ ------------
6,865,000 Total Put Bond 6,865,000
------------ ------------
<CAPTION>
Tax Exempt Commercial Paper (6.74%)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$ 2,000,000 Dormitory Authority of NY,
Memorial Sloan Kettering Cancer Center - Series 1989B
LOC Chase Manhattan Bank, N.A. 12/10/98 3.40% $ 2,000,000 VMIG-1 A1
2,300,000 Dormitory Authority of NY,
Memorial Sloan Kettering Cancer Center - Series 1996
LOC Morgan Guaranty Trust Company 01/21/99 2.90 2,300,000 VMIG-1 A1+
9,500,000 Long Island Power Authority (Electric System Subordinated) - Series 3
LOC Bayerische Landesbank/Westdeutsche Landesbank 11/12/98 3.40 9,500,000 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, 1998
(UNAUDITED)
================================================================================
<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>
$ 3,000,000 Long Island Power Authority (Electric System Subordinated) - Series 3
LOC Bayerische Landesbank/Westdeutsche Landesbank 11/18/98 3.40% $ 3,000,000 VMIG-1 A1+
3,000,000 New York City, NY GO Bond - Series 1994H-2
MBIA Insured 12/09/98 3.20 3,000,000 MIG-1 A1+
6,000,000 New York City, NY GO Bond - Series 1996J-2
LOC Commerzbank 12/15/98 3.40 6,000,000 P1 A1+
6,000,000 New York State Environmental Facilities Solid Waste RB - Series 1992 11/03/98 3.05 6,000,000 P1 A1+
------------ ------------
31,800,000 Total Tax Exempt Commercial Paper 31,800,000
------------ ------------
<CAPTION>
Variable Rate Demand Instruments - Participations (b) (0.76%)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$ 159,949 Centennial Associates/W & H Stampings, Incorporated
LOC Chase Manhattan Bank, N.A. 10/01/00 5.20% $ 159,949 P1 A1
1,040,000 Executive Square Business Park
LOC Chase Manhattan Bank, N.A. 06/01/01 5.20 1,040,000 P1 A1
86,206 Faden Paper Supply Company
LOC Chase Manhattan Bank, N.A. 01/01/00 5.20 86,206 P1 A1
84,600 GL II Associates
LOC Chase Manhattan Bank, N.A. 01/01/99 5.20 84,600 P1 A1
1,207,500 Giaquinto Joint Venture
LOC Chase Manhattan Bank, N.A. 07/01/02 5.20 1,207,500 P1 A1
99,287 I.G. Federal Electric Supply Corporation 1984
LOC Chase Manhattan Bank, N.A. 11/01/99 5.20 99,287 P1 A1
67,744 Nassau County, NY IDA IDRB
(Steven Klein/Normandie Metal Fabricators)
LOC Chase Manhattan Bank, N.A. 11/01/99 5.20 67,744 P1 A1
172,255 New York City, NY
(Seybert-Nicholas Printing Corporation/Kenner Printing)
LOC Chase Manhattan Bank, N.A. 06/01/00 5.20 172,255 P1 A1
22,222 New York City, NY IDA IDRB (Abigail Press, Incorporated Project)
LOC Chase Manhattan Bank, N.A. 02/01/99 5.20 22,222 P1 A1
21,417 One Crouse Medical Plaza
LOC Chase Manhattan Bank, N.A. 12/10/98 5.20 21,417 P1 A1
425,000 Penn-Plax Plastics, Nassau County
LOC Chase Manhattan Bank, N.A. 01/01/00 5.20 425,000 P1 A1
4,999 Ram Realty Company Project
LOC The Bank of New York 02/01/99 4.80 4,999 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
------ ---- ----- ------ ------- -------
Variable Rate Demand Instruments - Participations (b) (Continued)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$ 209,966 Texpak Incorporated Project
LOC Chase Manhattan Bank, N.A. 01/01/01 5.20% $ 209,966 P1 A1
------------ ------------
3,601,145 Total Variable Rate Demand Instruments - Participations 3,601,145
------------ ------------
<CAPTION>
Variable Rate Demand Instruments - Private Placements (b) (2.38%)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$ 326,381 Adirondack Transit Lines
LOC Key Bank, N.A. 02/01/01 4.80% $ 326,381 P1 A1
6,500,000 Blaser Real Estate 1986
LOC Union Bank of Switzerland 09/01/21 5.36 6,500,000 P1 A1
138,625 J. Treffiletti & Sons
LOC Key Bank, N.A. 09/01/00 4.80 138,625 P1 A1
3,150,000 New York City IDA Civic Facilities RB
(1997 Epiphany Community Nursery School Project)
LOC The Bank of New York 05/01/11 3.25 3,150,000 VMIG-1
270,417 Troy Mall Associates - Series 1985B
LOC Key Bank, N.A. 07/01/15 4.80 270,417 P1 A1
848,750 Troy Mall Associates - Series 1985C
LOC Key Bank, N.A. 04/01/16 4.80 848,750 P1 A1
------------ ------------
11,234,173 Total Variable Rate Demand Instruments - Private Placements 11,234,173
------------ ------------
Total Investments (100.45%) (Cost $473,572,755+) 473,572,755
Liabilities in Excess of Cash and Other Assets (-0.45%) ( 2,141,360)
------------
Net Assets (100.00%) $471,431,395
============
Net assets value, offering and redemption price per share:
Class A Shares, 467,701,592 shares outstanding (Note 3) $ 1.00
============
Class B Shares, 3,740,729 shares outstanding (Note 3) $ 1.00
============
+ Aggregate cost for federal income tax purposes is identical.
</TABLE>
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
<PAGE>
- --------------------------------------------------------------------------------
NEW YORK DAILY TAX FREE INCOME FUND, INC.
STATEMENT OF NET ASSETS (CONTINUED)
OCTOBER 31, 1998
(UNAUDITED)
===============================================================================
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 IDRB = Industrial Development Revenue Bond
CSD = Central School District JDA = Job Development Authority
ERDA = Energy and Research Development Authority LGAC = Local Government Assistance Corporation
HFA = Housing Finance Authority PCFA = Pollution Control Financial Authority
HRB = Hospital Revenue Bond PCRB = Pollution Control Revenue Bond
GO = General Obligation RAN = Revenue Anticipation Note
IDA = Industrial Development Authority RB = Revenue Bond
</TABLE>
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
<PAGE>
- --------------------------------------------------------------------------------
NEW YORK DAILY TAX FREE INCOME FUND, INC.
STATEMENT OF OPERATIONS
SIX MONTHS ENDED OCTOBER 31, 1998
(UNAUDITED)
================================================================================
<TABLE>
<CAPTION>
INVESTMENT INCOME
<S> <C>
Income:
Interest.............................................................. $ 7,694,772
-------------
Expenses: (Note 2)
Investment management fee............................................. 657,712
Administration fee.................................................... 460,399
Shareholder servicing fee............................................. 434,460
Custodian expenses.................................................... 21,841
Shareholder servicing and
related shareholder expenses...................................... 169,598
Legal, compliance and filing fees..................................... 52,997
Audit and accounting.................................................. 41,696
Directors' fees and expenses.......................................... 7,500
Other expenses........................................................ 13,548
-------------
Total expenses.................................................... 1,859,751
Less: Expenses paid indirectly.................................... ( 448)
-------------
Net expenses........................................... 1,859,303
-------------
Net investment income................................................... 5,835,469
<CAPTION>
REALIZED GAIN (LOSS) ON INVESTMENTS
<S> <C>
Net realized gain (loss) on investments................................. -0-
-------------
Increase in net assets from operations.................................. $ 5,835,469
-------------
</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, 1998 Ended
(Unaudited) April 30, 1998
--------- --------------
INCREASE (DECREASE) IN NET ASSETS
Operations:
<S> <C> <C>
Net investment income......................................... $ 5,835,469 $ 10,443,567
Net realized gain (loss) on investments....................... -0- -0-
--------------- ---------------
Increase in net assets from operations........................ 5,835,469 10,443,567
Dividends to shareholders from net investment income
Class A....................................................... ( 5,777,454)* ( 10,418,544)*
Class B....................................................... ( 58,015)* ( 25,023)*
Capital share transactions (Note 3)
Class A....................................................... 97,646,722 46,297,742
Class B....................................................... ( 671,773) 4,405,809
--------------- ---------------
Total increase (decrease)................................. 96,974,949 50,703,551
Net assets:
Beginning of period........................................... 374,456,446 323,752,895
--------------- ---------------
End of period................................................. $ 471,431,395 $ 374,456,446
=============== ===============
* 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, Inc. (the Distributor) have
entered into a Distribution Agreement and a Shareholder Servicing
- --------------------------------------------------------------------------------
<PAGE>
- -------------------------------------------------------------------------------
NEW YORK DAILY TAX FREE INCOME FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
(UNAUDITED)
================================================================================
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 $108,086 paid to Reich & Tang
Services, Inc. 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 $448.
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, 1998, 20,000,000,000 shares of $.001 par value stock were
authorized and capital paid in amounted to $471,440,632. Transactions in capital
stock, all at $1.00 per share, were as follows:
<TABLE>
<CAPTION>
Six Months Year
Ended Ended
October 31, 1998 April 30, 1998
---------------- --------------
Class A
- -------
<S> <C> <C>
Sold...................................... 339,711,429 604,303,728
Issued on reinvestment of dividends....... 5,852,064 10,230,471
Redeemed.................................. ( 247,916,771) ( 568,236,457)
-------------- --------------
Net increase (decrease)................... 97,646,722 46,297,742
============== ==============
Six Months Year
Ended Ended
October 31, 1998 April 30, 1998
---------------- --------------
Class B
- -------
<S> <C> <C>
Sold...................................... 3,682,682 9,480,346
Issued on reinvestment of dividends....... 62,474 15,467
Redeemed.................................. ( 4,416,929) ( 5,090,004)
-------------- --------------
Net increase (decrease)................... ( 671,773) 4,405,809
============== ==============
</TABLE>
4. Sales of Securities
Accumulated undistributed realized losses at October 31, 1998 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 64% 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>
- --------------------------------------------------------------------------------
================================================================================
<TABLE>
<CAPTION>
6. Financial Highlights
Six Months Year Ended April 30,
Class A Ended --------------------------------------------------------------
- ------- October 31, 1998 1998 1997 1996 1995 1994
---------------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
Per Share Operating Performance:
(for a share outstanding throughout the period)
Net asset value, beginning of period........... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
------- ------- ------- ------- ------- -------
Income from investment operations:
Net investment income........................ 0.014 0.029 0.028 0.030 0.027 0.018
Less distributions:
Dividends from net investment income ( 0.014) ( 0.029) ( 0.028) ( 0.030) ( 0.027) ( 0.018)
------- ------- ------- ------- ------- -------
Net asset value, end of period................. $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======= ======= ======= ======= ======= =======
Total Return................................... 2.71%* 2.90% 2.80% 3.08% 2.74% 1.84%
Ratios/Supplemental Data
Net assets, end of period (000)................ $467,691 $370,044 $323,746 $283,368 $254,422 $218,348
Ratios to average net assets:
Expenses..................................... 0.85%*+ 0.85%+ 0.82%+ 0.84%+ 0.87% 0.89%
Net investment income........................ 2.66%* 2.85% 2.76% 3.02% 2.71% 1.82%
Expenses paid indirectly..................... 0.00%* 0.00% 0.00% 0.00% 0.00% 0.00%
<CAPTION>
Six Months Year October 10, 1996
Class B Ended Ended (Commencement of Sales) to
- ------- October 31, 1998 April 30, 1998 April 30, 1997
---------------- -------------- --------------
<S> <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
-------- -------- --------
Income from investment operations:
Net investment income........................ 0.015 0.031 0.017
Less distributions:
Dividends from net investment income ( 0.015) ( 0.031) ( 0.017)
-------- -------- --------
Net asset value, end of period................. $ 1.00 $ 1.00 $ 1.00
======== ======== ========
Total Return................................... 2.92%* 3.12% 3.02%*
Ratios/Supplemental Data
Net assets, end of period (000)................ $ 3,740 $ 4,412 $ 7
Ratios to average net assets:
Expenses..................................... 0.64%*+ 0.64%+ 0.62%*
Net investment income........................ 2.89%* 2.94% 2.99%*
Expenses paid indirectly..................... 0.00%* 0.00% 0.00%
* Annualized
+ Includes expenses paid indirectly.
</TABLE>
- --------------------------------------------------------------------------------
<PAGE>
- --------------------------------------------------------------------------------
- -------------------------------------------------------
This report is submitted for the general information
of the shareholders of the Fund. It is not authorized
for distribution to prospective investors in the Fund
unless preceded or accompanied by an effective
prospectus, which includes information regarding the
Fund's objectives and policies, experience of its
management, marketability of shares, and other
information.
- -------------------------------------------------------
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, Inc.
600 Fifth Avenue
New York, New York 10020
- --------------------------------------------------------------------------------
<PAGE>
- --------------------------------------------------------------------------------
NEW YORK
DAILY
TAX FREE
INCOME
FUND, INC.
Semi-Annual Report
October 31,1998
(Unaudited)
- --------------------------------------------------------------------------------
<PAGE>
