<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 annual report of New York Daily Tax Free Income
Fund, Inc. for the year ended April 30, 1998.
The Fund had net assets of $374,456,446 and 2,750 active shareholders as of
April 30, 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
APRIL 30, 1998
================================================================================
<TABLE>
<CAPTION>
Ratings (a)
-----------------
Face Maturity Value Standard
Amount Date Yield (Note 1) Moody's & Poor's
------ ---- ----- ------ ------- -------
Other Tax Exempt Investments (24.35%)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$ 9,950,000 Cattaraugus, Alleghany, Erie, & Wyoming Counties, NY (c) 12/30/98 3.84% $ 9,957,610
2,380,000 Chitenango CSD RAN (c) 06/25/98 3.80 2,381,381
5,595,000 Clinton County, NY BAN (c) 12/11/98 3.75 5,601,611
10,000,000 Commonwealth of Puerto Rico TRAN - Series A 07/30/98 3.72 10,018,113 MIG-1 SP-1+
2,560,000 Corning, NY Community College (c) 08/21/98 3.85 2,560,754
3,000,000 Enlarged Ogdenburg City School District,
St. Lawrence County, NY RAN (c) 06/25/98 3.85 3,000,172
2,000,000 Erie County, NY
LOC Union Bank of Switzerland 10/29/98 3.77 2,006,494 MIG-1
4,980,000 Greenwood Lake UFSD Orange County, NY BAN (c) 06/10/98 3.82 4,981,311
3,990,000 Holland Patent CSD Oneida and Herkimer Counties, NY (c) 12/04/98 3.80 3,993,416
4,900,000 Homer, NY CSD RAN (c) 06/26/98 3.80 4,900,210
11,625,000 Manchester Shoetville, NY CSD BAN 08/20/98 3.84 11,637,232 MIG-1
5,000,000 New York City, NY RAN - Series A
LOC Bayerische Landesbank/Landesbank Hessen/
Morgan Guaranty/National Westminster/Societe Generale/
Westdeutsche Landesbank 06/30/98 3.58 5,006,273 MIG-1 SP-1+
4,365,000 New York State GO Bond - Series B (c) 03/01/99 3.52 4,395,722
4,900,000 New York State Niagara Wheatfield CSD BAN (c) 12/30/98 3.75 4,914,125
3,000,000 Perry CSD Wyoming & Livingston Counties, NY BAN (c) 02/04/99 3.65 3,001,101
1,020,000 Seneca, NY BAN (c) 10/01/98 3.58 1,020,909
11,790,000 Valley Stream Central High School
District Nassau County, NY TAN (c) 06/30/98 3.85 11,790,865
------------- ------------
91,055,000 Total Other Tax Exempt Investments 91,167,299
------------- ------------
<CAPTION>
Other Variable Rate Demand Instruments (b) (57.26%)
- ------------------------------------------------------------------------------------------------------------------------------------
<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 4.30% $ 5,000,000 A1+
3,000,000 Franklin County, NY IDA IDRB (Kes Chatauqua Project)
LOC Bank of Tokyo - Mitsubishi, Ltd. 07/01/21 4.20 3,000,000 A1
1,000,000 Islip, NY IDA Brentwood (c)
LOC Fleet National Bank 05/01/09 4.40 1,000,000
1,580,000 Metropolitan Museum of Art
(Dormitory Authority of New York) RB - Series 1993A 07/01/15 3.80 1,580,000 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>
$ 370,000 Monroe County, NY IDA IDRB (Brazil Merk Partnership) (c)
LOC Fleet National Bank 01/01/06 3.80% $ 370,000
8,000,000 Monroe County, NY IDA RB
(Life Care Community Jewish Home) - Series B
LOC Manufacturers & Traders 04/01/04 3.95 8,000,000 VMIG-1
1,000,000 Nassau County, Manhassett (c)
LOC Bankers Trust Company 12/01/99 4.10 1,000,000
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 4.00 4,400,000 A1
1,900,000 New York City, NY Cultural Resource RB (Jewish Museum Project) 12/01/21 4.70 1,900,000 VMIG-1 A1
1,800,000 New York City, NY Cultural Resource RB
(Museum of Broadcasting Project) - Series 1989
LOC Kredietbank 05/01/14 3.95 1,800,000 VMIG-1 A1+
11,100,000 New York City, NY GO - Series 1993 E-4
LOC State Street Bank & Trust Co. 08/01/21 4.10 11,100,000 VMIG-1 A1+
3,100,000 New York City, NY GO - Series 1995 B-4
MBIA Insured 08/15/23 4.20 3,100,000 VMIG-1 A1+
1,000,000 New York City, NY GO - Series E-5
LOC Morgan Guaranty Trust Company 08/01/10 4.10 1,000,000 VMIG-1 A1+
4,200,000 New York City, NY GO - Series E-2
LOC Morgan Guaranty Trust Company 08/01/20 4.10 4,200,000 VMIG-1 A1+
6,900,000 New York City, NY GO Bond - Series 1993 Subseries E-5
LOC Morgan Guaranty Trust Company 08/01/17 4.10 6,900,000 VMIG-1 A1+
2,000,000 New York City, NY GO Bond - Series 1995 Subseries B-3
MBIA Insured 08/15/04 4.20 2,000,000 VMIG-1 A1+
5,915,000 New York City, NY GO Bond - Series A-5
LOC Kredietbank 08/01/15 4.20 5,915,000 VMIG-1 A1+
7,600,000 New York City, NY GO Bond - Series A-7
LOC Morgan Guaranty Trust Company 08/01/20 4.10 7,600,000 VMIG-1 A1+
19,500,000 New York City, NY GO Bond - Series E-4
LOC State Street Bank & Trust Co. 08/01/22 4.10 19,500,000 VMIG-1 A1+
2,600,000 New York City, NY GO Bond - Series E-5
LOC Morgan Guaranty Trust Company 08/01/15 4.10 2,600,000 VMIG-1 A1+
13,100,000 New York City, NY GO Bond - Subseries E-6
FGIC Insured 08/01/19 4.10 13,100,000 VMIG-1 A1+
</TABLE>
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
<PAGE>
- --------------------------------------------------------------------------------
NEW YORK DAILY TAX FREE INCOME FUND, INC.
STATEMENT OF NET ASSETS (CONTINUED)
APRIL 30, 1998
================================================================================
<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>
$ 6,200,000 New York City, NY GO Bond - Subseries B-2
MBIA Insured 08/15/03 4.20% $ 6,200,000 VMIG-1 A1+
2,800,000 New York City, NY IDA
(Field Hotel Associates JFK Airport Project)
LOC Banque Indosuez 12/01/15 3.95 2,800,000 VMIG-1 A1+
5,200,000 New York City, NY IDRB (Airport Project) - Series 1985 (c)
LOC Bayerische Landesbank Girozentrale 04/01/00 4.10 5,200,000
10,600,000 New York City, NY Municipal Water Finance
Authority & Sewer System - Series 1992C
FGIC Insured 06/15/22 4.20 10,600,000 VMIG-1 A1+
2,800,000 New York City, NY Municipal Water Finance
Authority & Sewer System - Series 1995A
FGIC Insured 06/15/25 4.25 2,800,000 VMIG-1 A1+
5,000,000 New York City, NY Municipal Water Finance
Authority RB Municipal Securities Trust Receipts
MBIA Insured 06/15/23 4.25 5,000,000 A1+
1,100,000 New York City, NY Municipal Water Finance
Authority Water & Sewer System RB - Series C
FGIC Insured 06/15/23 4.20 1,100,000 VMIG-1 A1+
3,500,000 New York State Dormitory Authority RB
LOC Landesbank Hessen 07/01/23 4.20 3,500,000 VMIG-1
2,000,000 New York State ERDA PCRB
(Central Hudson Gas & Electric) - Series B
LOC Deutsche Bank A.G. 11/01/20 4.50 2,000,000 P1
8,700,000 New York State ERDA PCRB (New York Gas & Electric)
LOC First National Bank of Chicago 10/01/29 4.20 8,700,000 VMIG-1 A1+
6,300,000 New York State ERDA PCRB
(Niagara Mohawk Power Corporation)
LOC Toronto-Dominion Bank 12/01/25 4.20 6,300,000 P1
2,050,000 New York State ERDA PCRB
(Niagara Mohawk Power Corporation) - Series 1985C
LOC Canadian Imperial Bank of Commerce 12/01/25 4.20 2,050,000 P1
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 Corp.) - Series 1997A
MBIA Insured 08/01/32 3.85 10,000,000 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>
$ 490,000 New York State JDA - Series D
LOC Bayerische Landesbank/Morgan Guaranty 03/01/99 3.55% $ 490,000 VMIG-1 A1+
610,000 New York State JDA - Series G
LOC Bayerische Landesbank/Morgan Guaranty 03/01/99 3.55 610,000 VMIG-1 A1+
5,600,000 New York State LGAC - Series 1994B
LOC Kredietbank 04/01/23 3.85 5,600,000 VMIG-1 A1+
4,800,000 New York State LGAC - Series E
LOC Canadian Imperial Bank of Commerce 04/01/25 3.90 4,800,000 VMIG-1 A1+
4,800,000 New York State LGAC - Series G
LOC Bank of Nova Scotia 04/01/25 3.90 4,800,000 VMIG-1 A1+
8,000,000 New York State Medical Care Facilities Financial Authority
LOC Chase Manhattan Bank, N.A. 11/01/15 4.15 8,000,000 VMIG-1
1,100,000 New York State Medical Care Pooled
Equipment Authority - Series 1994A
LOC Chase Manhattan Bank, N.A. 11/01/03 4.00 1,100,000 VMIG-1
500,000 Puerto Rico Industrial Medical & Environmental PCFA PCRB
(Ana Mendez Foundation)
LOC Bank of Tokyo - Mitsubishi, Ltd. 12/01/15 4.60 500,000 A1
6,500,000 Suffolk County, NY IDA (Nissequogue Cogen Partners)- Series 1993
LOC Toronto-Dominion Bank 12/15/23 4.00 6,500,000 VMIG-1 A1+
------------ ------------
214,415,000 Total Other Variable Rate Demand Instruments 214,415,000
------------ ------------
<CAPTION>
Put Bonds (d) (1.83%)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$ 6,865,000 New York State ERDA PCRB (Long Island Lighting Co.)
LOC Deutsche Bank A.G. 03/01/99 3.58% $ 6,865,000 VMIG-1
------------ ------------
6,865,000 Total Put Bonds 6,865,000
------------ ------------
<CAPTION>
Tax Exempt Commercial Paper (12.82%)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$ 5,500,000 Dormitory Authority of NY Memorial Sloan
Kettering Cancer Center - Series 1989C
LOC Chase Manhattan Bank, N.A. 06/17/98 3.35% $ 5,500,000 VMIG-1 A1+
2,000,000 Dormitory Authority of NY Memorial Sloan
Kettering Cancer Center - Series 1989C
LOC Chase Manhattan Bank, N.A. 07/08/98 3.55 2,000,000 VMIG-1 A1
6,000,000 New York City Municipal Assistance Corporation
LOC Landesbank Hessen 08/12/98 3.45 6,000,000 VMIG-1 A1+
</TABLE>
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
<PAGE>
- --------------------------------------------------------------------------------
NEW YORK DAILY TAX FREE INCOME FUND, INC.
STATEMENT OF NET ASSETS (CONTINUED)
APRIL 30, 1998
================================================================================
<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>
$ 5,500,000 New York City Municipal Assistance Corporation - Series K-3
LOC Landesbank Hessen 07/21/98 3.50% $ 5,500,000 VMIG-1 A1+
8,500,000 New York City Municipal Water Finance Authority
LOC Canadian Imperial Bank of Commerce 05/07/98 3.20 8,500,000 P1 A1+
5,000,000 New York City Municipal Assistance Corp. - Series F
AMBAC Insured 05/06/98 3.25 5,000,000 P1 A1+
3,000,000 New York City, NY GO Bond 1994 - Series H
MBIA Insured 05/20/98 3.25 3,000,000 MIG-1 A1+
6,000,000 New York City, NY GO Bond 1996 - Series J
LOC Commerzbank A.G. 05/06/98 3.25 6,000,000 P1 A1+
1,000,000 New York State Environmental Facilities Corp.
(G.E. Co Project) - Series 1987A 06/11/98 3.40 1,000,000 P1 A1+
2,500,000 New York State Environmental Quality - Series 1997A
LOC Bayerische Landesbank/Landesbank Hessen 06/10/98 3.40 2,500,000 VMIG-1 A1+
3,000,000 New York State GO BAN 07/13/98 3.55 3,000,000 P1 A1
------------ ------------
48,000,000 Total Tax Exempt Commercial Paper 48,000,000
------------ ------------
<CAPTION>
Variable Rate Demand Instruments - Participations (b) (1.29%)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$ 199,951 Centennial Associates/W & H Stampings, Incorporated
LOC Chase Manhattan Bank, N.A. 10/01/00 5.53% $ 199,951 P1 A1
68,966 Datagraphic Incorporated
LOC Chase Manhattan Bank, N.A. 10/01/98 5.53 68,966 P1 A1
1,155,000 Executive Square Business Park
LOC Chase Manhattan Bank, N.A. 06/01/01 5.53 1,155,000 P1 A1
120,689 Faden Paper Supply Company
LOC Chase Manhattan Bank, N.A. 01/01/00 5.53 120,689 P1 A1
253,800 GL II Associates
LOC Chase Manhattan Bank, N.A. 01/01/99 5.53 253,800 P1 A1
1,312,500 Giaquinto Joint Venture
LOC Chase Manhattan Bank, N.A. 07/01/02 5.53 1,312,500 P1 A1
145,121 I.G. Federal Electric Supply Corporation 1984
LOC Chase Manhattan Bank, N.A. 11/01/99 5.53 145,121 P1 A1
245,600 Metro Seliger Industries, Incorporated 1984
LOC Chase Manhattan Bank, N.A. 08/10/99 5.53 245,600 P1 A1
</TABLE>
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
<PAGE>
- --------------------------------------------------------------------------------
NEW YORK DAILY TAX FREE INCOME FUND, INC.
STATEMENT OF NET ASSETS (CONTINUED)
APRIL 30, 1998
================================================================================
<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>
$ 101,668 Nassau County, NY IDA IDRB
(Steven Klein/Normandie Metal Fabricators)
LOC Chase Manhattan Bank, N.A. 11/01/99 5.53% $ 101,668 P1 A1
225,589 New York City, NY
(Seybert-Nicholas Printing Corporation/Kenner Printing)
LOC Chase Manhattan Bank, N.A. 06/01/00 5.53 225,589 P1 A1
55,555 New York City, NY IDA IDRB (Abigail Press, Incorporated Project)
LOC Chase Manhattan Bank, N.A. 02/01/99 5.53 55,555 P1 A1
64,250 One Crouse Medical Plaza
LOC Chase Manhattan Bank, N.A. 12/10/98 5.53 64,250 P1 A1
595,000 Penn-Plax Plastics, Nassau County
LOC Dai-Ichi Kangyo Bank, Ltd. 01/01/00 5.53 595,000 P1 A1
14,999 Ram Realty Company Project
LOC The Bank of New York 02/01/99 5.10 14,999 P1 A1
256,634 Texpak Incorporated Project
LOC Chase Manhattan Bank, N.A. 01/01/01 5.53 256,634 P1 A1
------------ ------------
4,815,322 Total Variable Rate Demand Instruments - Participations 4,815,322
------------ ------------
<CAPTION>
Variable Rate Demand Instruments - Private Placements (b) (3.07%)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$ 391,218 Adirondack Transit Lines
LOC Key Bank, N.A. 02/01/01 5.10% $ 391,218 P1 A1
6,500,000 Blaser Real Estate 1986
LOC Union Bank of Switzerland 09/01/21 5.53 6,500,000 P1 A1
173,250 J. Treffiletti & Sons
LOC Key Bank, N.A. 09/01/00 5.10 173,250 P1 A1
3,300,000 New York City IDA Civic Facilities RB
(1997 Epiphany Community Nursery School Project)
LOC Swiss Bank Corporation 05/01/11 4.52 3,300,000 VMIG-1
278,750 Troy Mall Associates - Series 1985B
LOC Key Bank, N.A. 07/01/15 5.10 278,750 P1 A1
873,750 Troy Mall Associates - Series 1985C
LOC Key Bank, N.A. 04/01/16 5.10 873,750 P1 A1
------------ ------------
11,516,968 Total Variable Rate Demand Instruments - Private Placements 11,516,968
------------ ------------
Total Investments (100.62%) (Cost $376,779,589+) 376,779,589
Liabilities in Excess of Cash and Other Assets (-0.62%) ( 2,323,143)
------------
Net Assets (100.00%) $374,456,446
============
Net asset value, offering and redemption price per share:
Class A Shares, 370,054,870 shares outstanding (Note 3) $ 1.00
============
Class B Shares, 4,412,502 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)
APRIL 30, 1998
================================================================================
FOOTNOTES:
(a) Unless financial instruments are assigned their own ratings, the ratings
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
IDA = Industrial Development Authority RB = Revenue Bond
IDRB = Industrial Development Revenue Bond TAN = Tax Anticipation Note
JDA = Job Development Authority TRAN = Tax and Revenue Anticipation Note
UFSD = Unified School District
</TABLE>
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
<PAGE>
- --------------------------------------------------------------------------------
NEW YORK DAILY TAX FREE INCOME FUND, INC.
STATEMENT OF OPERATIONS
YEAR ENDED APRIL 30, 1998
================================================================================
<TABLE>
<CAPTION>
INVESTMENT INCOME
<S> <C>
Income:
Interest.............................................................. $ 13,546,136
--------------
Expenses: (Note 2)
Investment management fee............................................. 1,100,638
Administration fee.................................................... 770,447
Shareholder servicing fee............................................. 732,056
Custodian expenses.................................................... 26,312
Shareholder servicing and
related shareholder expenses...................................... 327,177
Legal, compliance and filing fees..................................... 53,736
Audit and accounting.................................................. 62,438
Directors' fees and expenses.......................................... 15,000
Other expenses........................................................ 16,077
--------------
Total expenses.................................................... 3,103,881
Less: Expenses paid indirectly.................................... ( 1,312)
--------------
Net expenses........................................... 3,102,569
--------------
Net investment income................................................... 10,443,567
<CAPTION>
REALIZED GAIN (LOSS) ON INVESTMENTS
<S> <C>
Net realized gain (loss) on investments.................................. -0-
--------------
Increase in net assets from operations................................... $ 10,443,567
==============
</TABLE>
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
<PAGE>
- --------------------------------------------------------------------------------
NEW YORK DAILY TAX FREE INCOME FUND, INC.
STATEMENTS OF CHANGES IN NET ASSETS
YEARS ENDED APRIL 30, 1998 AND 1997
================================================================================
<TABLE>
<CAPTION>
1998 1997
--------------- ---------------
INCREASE (DECREASE) IN NET ASSETS
<S> <C> <C>
Operations:
Net investment income....................................... $ 10,443,567 $ 7,969,041
Net realized gain (loss) on investments..................... -0- ( 8,672)
--------------- ---------------
Increase in net assets from operations......................... 10,443,567 7,960,369
Dividends to shareholders from net investment income
Class A..................................................... ( 10,418,544)* ( 7,968,922)*
Class B..................................................... ( 25,023)* ( 119)*
Capital share transactions (Note 3)
Class A..................................................... 46,297,742 40,386,831
Class B..................................................... 4,405,809 6,693
--------------- ---------------
Total increase (decrease)............................... 50,703,551 40,384,852
Net assets:
Beginning of year........................................... 323,752,895 283,368,043
--------------- ---------------
End of year................................................. $ 374,456,446 $ 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
- --------------------------------------------------------------------------------
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 Agreement,
- --------------------------------------------------------------------------------
<PAGE>
- --------------------------------------------------------------------------------
NEW YORK DAILY TAX FREE INCOME FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
================================================================================
2. Investment Management Fees and Other Transactions with Affiliates (Continued)
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 $183,496 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 $1,312.
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, 1998, 20,000,000,000 shares of $.001 par value stock were
authorized and capital paid in amounted to $374,465,683. Transactions in capital
stock, all at $1.00 per share, were as follows:
<TABLE>
<CAPTION>
Year Year
Ended Ended
Class A April 30, 1998 April 30, 1997
- ------- -------------- --------------
<S> <C> <C>
Sold................................... 604,303,728 498,357,444
Issued on reinvestment of dividends.... 10,230,471 7,175,397
Redeemed............................... ( 568,236,457) ( 465,146,010)
-------------- --------------
Net increase (decrease)................ 46,297,742 40,386,831
============== ==============
<CAPTION>
Year October 10, 1996
Ended (Commencement of Sales) to
April 30, 1998 April 30, 1997
-------------- --------------
Class B
-------
<S> <C> <C>
Sold...................................... 9,480,346 12,177
Issued on reinvestment of dividends....... 15,467 108
Redeemed.................................. ( 5,090,004) ( 5,592)
-------------- --------------
Net increase (decrease)................... 4,405,809 6,693
============== ==============
</TABLE>
4. Sales of Securities
Accumulated undistributed realized losses at April 30, 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 through 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 59% 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
Year Ended April 30,
--------------------------------------------------------------------
Class A
- ------- 1998 1997 1996 1995 1994
-------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
Per Share Operating Performance:
(for a share outstanding throughout the year)
Net asset value, beginning of year.... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
-------- -------- -------- -------- --------
Income from investment operations:
Net investment income.............. 0.029 0.028 0.030 0.027 0.018
Less distributions:
Dividends from net investment income ( 0.029) ( 0.028) ( 0.030) ( 0.027) ( 0.018)
-------- -------- -------- -------- --------
Net asset value, end of year.......... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======== ======== ======== ======== ========
Total Return.......................... 2.90% 2.80% 3.08% 2.74% 1.84%
Ratios/Supplemental Data
Net assets, end of year (000)......... $370,044 $323,746 $283,368 $254,422 $218,348
Ratios to average net assets:
Expenses.......................... 0.85%+ 0.82%+ 0.84%+ 0.87% 0.89%
Net investment income............. 2.85% 2.76% 3.02% 2.71% 1.82%
Expenses paid indirectly.......... 0.00% 0.00% 0.00% 0.00% 0.00%
<CAPTION>
Year October 10, 1996
Class B Ended (Commencement of Sales) to
- ------- April 30, 1998 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...................... 0.031 0.017
Less distributions:
Dividends from net investment income....... ( 0.031) ( 0.017)
-------- --------
Net asset value, end of period................. $ 1.00 $ 1.00
======== ========
Total Return................................... 3.12% 3.02%*
Ratios/Supplemental Data
Net assets, end of period (000)................. $ 4,412 $ 7
Ratios to average net assets:
Expenses..................................... 0.64%+ 0.62%*
Net investment income........................ 2.94% 2.99%*
Expenses paid indirectly..................... 0.00% 0.00%
* Annualized
+ Includes expenses paid indirectly.
</TABLE>
- --------------------------------------------------------------------------------
<PAGE>
- --------------------------------------------------------------------------------
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, 1998, 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 financial highlights for
each of the five years in the period then ended. These financial statements and
financial highlights are the responsibility of the Fund's management. Our
responsibility is to express an opinion on these financial statements and
financial highlights 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 financial
highlights 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, 1998, 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 financial highlights 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, 1998, the results of its
operations, the changes in its net assets and the financial highlights for the
periods indicated, in conformity with generally accepted accounting principles.
\s\McGladrey & Pullen, LLP
May 20, 1998
New York, New York
- --------------------------------------------------------------------------------
<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>
- --------------------------------------------------------------------------------
NEW YORK
DAILY
TAX FREE
INCOME
FUND, INC.
Annual Report
April 30, 1998
- --------------------------------------------------------------------------------
<PAGE>
