<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, 1999.
The Fund had net assets of $481,341,831 and 2,532 active shareholders as of
April 30, 1999.
We thank you for your support and we 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, 1999
================================================================================
<TABLE>
<CAPTION>
Ratings (a)
-----------------
Face Maturity Value Standard
Amount Date Yield (Note 1) Moody's & Poor's
------ ---- ----- ------ ------- -------
Other Tax Exempt Investments (15.21%)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$ 4,940,000 Argyle, NY Central School District Washington County (c) 12/01/99 3.16% $ 4,944,161
6,600,000 Arkport, NY Central School District Steuben and Alleghany Counties (c)03/03/00 3.07 6,633,550
2,490,000 Bath, NY Central School District Steuben County (c) 09/30/99 3.16 2,490,993
2,000,000 Corning, NY Community College (c) 08/19/99 3.65 2,001,708
9,950,000 Counties of Cattaraugus, Alleghany, Erie, & Wyoming, NY BOCES (c) 12/30/99 3.17 9,953,139
10,000,000 Eastern Suffolk, NY BOCES RAN (c) 06/23/99 3.67 10,000,391
4,250,000 Glens Falls, NY Central School District RAN (c) 06/30/99 3.65 4,250,325
7,000,000 Heuvelton, NY Central School District Saint Lawrence County (c) 01/26/00 3.16 7,002,467
4,300,000 Putman & Westchester Counties, NY BOCES RAN (c) 10/22/99 3.26 4,300,973
11,600,000 Saint Lawrence & Lewis Counties BOCES
Sole Supervisory District RAN (c) 06/28/99 3.65 11,600,842
1,265,000 Seneca, NY BAN (c) 09/30/99 3.52 1,265,877
1,748,000 South Jefferson Central School District, NY (c) 06/29/99 3.73 1,748,906
4,500,000 Spencersport Central School District, NY RAN (c) 01/28/00 3.04 4,501,577
2,525,000 Wheatfield, NY Niagara County BAN - Series 1998 (c) 07/08/99 3.58 2,525,308
------------- ------------
73,168,000 Total Other Tax Exempt Investments 73,220,217
------------- ------------
<CAPTION>
Other Variable Rate Demand Instruments (b) (72.05%)
- ------------------------------------------------------------------------------------------------------------------------------------
<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 4.10% $ 5,000,000 A1+
3,000,000 Commonwealth of Puerto Rico GO
(Puerto Rico Electric Power Authority)
MBIA Insured 07/01/23 3.86 3,000,000 VMIG-1
2,100,000 Commonwealth of Puerto Rico RB
(Highway & Transportation Authority)
AMBAC Insured 07/01/28 3.90 2,100,000 VMIG-1 A1+
1,000,000 Erie County, NY IDA (Episcopal Church) - Series B
LOC Banque Paribas 02/01/05 3.90 1,000,000 VMIG-1
1,700,000 Great Neck Water Authority Water System RB - Series 1993A
FGIC Insured 01/01/20 3.95 1,700,000 VMIG-1 A1+
1,000,000 Islip, NY IDA Brentwood (c)
LOC Fleet National Bank 05/01/09 3.60 1,000,000
5,750,000 Jefferson County, NY IDA IDRB (c)
LOC PNC Bank, N.A. 10/01/13 4.05 5,750,000
4,995,000 Long Island Power Authority, NY Electric System
FSA Insured 12/01/15 4.01 4,995,000 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>
$ 1,575,000 Metropolitan Museum of Art
(New York State Dormitory Authority) - Series 1993A 07/01/15 3.90% $ 1,575,000 VMIG-1 A1+
1,160,000 Metropolitan Museum of Art
(New York State Dormitory Authority) - Series 1993B 07/01/23 3.90 1,160,000 VMIG-1 A1+
1,000,000 Monroe County, NY IDA (Collegiate Housing Foundation)
LOC First Union National Bank 10/01/28 3.95 1,000,000 VMIG-1
320,000 Monroe County, NY IDA IDRB (Brazil Merk Partnership) (c)
LOC Fleet National Bank 01/01/06 3.10 320,000
8,000,000 Monroe County, NY IDA RB
(Life Care Community Jewish Home) - Series B
LOC Manufacturers & Traders 04/01/04 3.85 8,000,000 VMIG-1
1,000,000 Nassau County, NY IDA (Manhasset Association Project) (c)
LOC Bankers Trust Company 12/01/99 4.00 1,000,000
1,800,000 New York City, NY Cultural Resource RB
(Museum of Broadcasting Project) - Series 1989
LOC Kredietbank 05/01/14 3.80 1,800,000 VMIG-1 A1+
2,595,000 New York City, NY GO Bond PA-277
LOC Merrill Lynch & Company, Inc. 11/15/11 4.11 2,595,000 A1+
7,915,000 New York City, NY GO Bond - Series A-5
LOC Kredietbank 08/01/15 4.25 7,915,000 VMIG-1 A1+
30,000 New York City, NY GO Bond - Series B
FGIC Insured 10/01/20 4.40 30,000 VMIG-1 A1+
2,450,000 New York City, NY GO Bond - Series E-2
LOC Morgan Guaranty Trust Company 08/01/20 4.30 2,450,000 VMIG-1 A1+
16,500,000 New York City, NY GO Bond - Series E-4
LOC State Street Bank & Trust Company 08/01/22 4.30 16,500,000 VMIG-1 A1+
1,100,000 New York City, NY GO Bond - Series 1994B
LOC Morgan Guaranty Trust Company 08/15/20 4.40 1,100,000 VMIG-1 A1+
3,000,000 New York City, NY GO Bond - Series 1996F
FSA Insured 02/01/19 4.06 3,000,000 A1+
2,000,000 New York City, NY GO
MBIA Insured 05/15/28 4.01 2,000,000 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 3.85 4,400,000 A1
6,525,000 New York City, NY
Housing Development Corporation Multifamily Rent Housing
(Jane Street Development)
Fannie Mae Collateral 09/15/28 4.00 6,525,000 A1+
</TABLE>
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
<PAGE>
- --------------------------------------------------------------------------------
NEW YORK DAILY TAX FREE INCOME FUND, INC.
STATEMENT OF NET ASSETS (CONTINUED)
APRIL 30, 1999
================================================================================
<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>
$ 4,100,000 New York City, NY Housing Development Corporation Multifamily RB
(Crotona Ave Project) - Series A
LOC Fleet National Bank 09/01/30 3.90% $ 4,100,000 A1
9,075,000 New York City, NY Housing Development Corporation Multifamily RB
(Queenswood Apartment Project)
LOC National City Bank 02/01/17 3.75 9,075,000 VMIG-1 A1
10,500,000 New York City, NY
Housing Development Corporation Multifamily Rent Housing
(Parkgate Project) - Series A
Fannie Mae Collateral 10/15/28 3.80 10,500,000 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 4.05 11,300,000 VMIG-1 A1+
5,200,000 New York City, NY IDRB (Airport Services Project) - Series 1985 (c)
LOC Bayerische Landesbank Girozentrale 04/01/00 3.95 5,200,000
11,500,000 New York City, NY Municipal Assistance Corporation - Series K-3
LOC Landesbank Hessen 07/01/08 4.00 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 4.06 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 4.06 3,555,000 A1+
2,000,000 New York City, NY Municipal Water Finance Authority & Sewer System
FGIC Insured 06/15/22 4.25 2,000,000 VMIG-1 A1+
7,100,000 New York City, NY Municipal Water
Finance Authority & Sewer System - Series 1992C
FGIC Insured 06/15/23 4.25 7,100,000 VMIG-1 A1+
3,000,000 New York City, NY Trust for Cultural Resources
(Carnegie Hall) - Series 1990
LOC Westdeutsche Landesbank 12/01/10 3.35 3,000,000 VMIG-1 A1+
1,425,000 New York City, NY Trust for Cultural Resources
(Solomon R. Guggenheim Foundation)
LOC Union Bank Switzerland 12/01/15 4.20 1,425,000 A1+
1,700,000 New York State Dormitory Authority RB
(New York Public Library) - Series B
LOC Canadian Imperial Bank of Commerce 07/01/22 3.85 1,700,000 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>
$ 7,500,000 New York State Dormitory Authority RB (Saint Francis Center)
LOC Banque Paribas 07/01/23 4.30% $ 7,500,000 VMIG-1
3,400,000 New York State Dormitory Authority (Oxford University Press, Inc.)
LOC Landesbank Hessen 07/01/25 3.85 3,400,000 VMIG-1
8,900,000 New York State ERDA Electric and Gas
LOC First National Bank of Chicago 10/01/29 4.30 8,900,000 VMIG-1 A1+
2,000,000 New York State ERDA PCRB
(Central Hudson Gas & Electric) - Series B
LOC Deutsche Bank A.G. 11/01/20 3.40 2,000,000 P1
7,000,000 New York State ERDA PCRB (Niagara Mohawk Power Corporation)
LOC Toronto-Dominion Bank 12/01/25 4.20 7,000,000 P1
16,800,000 New York State ERDA PCRB
(Niagara Mohawk Power Corporation) - Series B
LOC Toronto-Dominion Bank 12/01/26 4.25 16,800,000 P1
9,950,000 New York State ERDA PCRB
(Niagara Mohawk Power Corporation) - Series 1985C
LOC Canadian Imperial Bank of Commerce 12/01/25 4.20 9,950,000 P1
5,900,000 New York State ERDA (Niagara Mohawk Power Corporation)
LOC Morgan Guaranty Trust Company 12/01/23 4.45 5,900,000 A1+
10,000,000 New York State ERDA PCRB
(Rochester Gas & Electric Corporation) - Series 1997A
MBIA Insured 08/01/32 3.80 10,000,000 VMIG-1 A1+
5,000,000 New York State HFA (70 Battery Place Project)
LOC Bayerische HypoVereinsbank, A.G. 11/01/31 4.00 5,000,000 VMIG-1
5,000,000 New York State HFA (750-5th Ave Project)
LOC Fleet National Bank 11/01/31 3.90 5,000,000 VMIG-1
4,900,000 New York State HFA (Normandie Court II) - Series A
LOC Fleet National Bank 11/01/02 3.90 4,900,000 VMIG-1
7,900,000 New York State HFA HRB (Normandie Court I)
LOC Landesbank Hessen 05/15/15 3.80 7,900,000 VMIG-1 A1+
12,000,000 New York State HFA (Saxony Housing) - Series 1997A
LOC Chase Manhattan Bank, N.A. 11/01/30 4.00 12,000,000 P1
2,500,000 New York State Local Government Assistance Corporation - Series C
LOC Landesbank Hessen 04/01/25 3.85 2,500,000 VMIG-1 A1+
5,900,000 New York State Local Government Assistance Corporation - Series E
LOC Canadian Imperial Bank of Commerce 04/01/25 3.75 5,900,000 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, 1999
================================================================================
<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>
$ 1,100,000 New York State Local Government Assistance Corporation - Series E
LOC Bank of Nova Scotia 04/01/25 3.85% $ 1,100,000 VMIG-1 A1+
4,800,000 New York State Local Government Assistance Corporation - Series G
LOC Bank of Nova Scotia 04/01/25 3.70 4,800,000 VMIG-1 A1+
5,500,000 New York State Local Government Assistance Corporation - Series 1994B
LOC Kredietbank 04/01/23 3.95 5,500,000 VMIG-1 A1+
7,000,000 New York State Local Government Assistance Corporation - Series 1995D
LOC Societe Generale 04/01/25 3.75 7,000,000 VMIG-1 A1+
1,600,000 New York State Medical Care Facilities Financial Authority
LOC Chase Manhattan Bank, N.A. 11/01/15 3.80 1,600,000 VMIG-1
9,995,000 New York State Medical Care Facilities Revenue Bonds
LOC Merrill Lynch & Company, Inc. 02/15/25 4.00 9,995,000 A1+
800,000 New York State Medical Care Pooled Equipment Authority - Series 1994A
LOC Chase Manhattan Bank, N.A. 11/01/03 3.80 800,000 VMIG-1
8,200,000 New York State Municipal Assistance Corporation
(Public Benefit Corporation)
AMBAC Insured 07/01/08 4.00 8,200,000 VMIG-1 A1
19,000,000 Niagara County, NY IDA (American Refueling Company) - Series 1996D
LOC Wachovia Bank, N.A. 11/15/26 3.90 19,000,000 P1 A1+
6,200,000 Port Authority of NY & NJ Special Versatile Structure Obligation 06/01/20 4.20 6,200,000 VMIG-1 A1+
1,500,000 Port Authority of NY & NJ Special Versatile Structure Obligation 08/01/24 4.20 1,500,000 VMIG-1 A1+
2,000,000 Puerto Rico Industrial Medical & Environmental PCFA PCRB
(Ana Mendez Foundation)
LOC Banco Santander 10/01/21 3.95 2,000,000 A1+
2,000,000 Saint Lawrence County, NY IDA (Aluminum Company of America) 12/01/33 3.55 2,000,000 A1
1,100,000 Suffolk County, NY IDA (Cold Spring Harbor Laboratory)
LOC Morgan Guaranty Trust Company 07/01/23 4.25 1,100,000 A1+
------------ ------------
346,815,000 Total Other Variable Rate Demand Instruments 346,815,000
------------ ------------
<CAPTION>
Tax Exempt Commercial Paper (10.18%)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$ 9,395,000 Dormitory Authority of NY,
Memorial Sloan Kettering Cancer Center - Series 1989B
LOC Chase Manhattan Bank, N.A. 05/20/99 2.95% $ 9,395,000 VMIG-1 A1+
4,000,000 Long Island Power Authority (Electric System Subordinated) - Series 3
LOC Bayerische Landesbank/Westdeutsche Landesbank 07/20/99 3.15 4,000,000 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
------ ---- ----- ------ ------- -------
Tax Exempt Commercial Paper (Continued)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$ 2,000,000 Long Island Power Authority
(Electric System Subordinated) - Series 4
LOC Bayerische Landesbank/Westdeutsche Landesbank 08/10/99 3.15% $ 2,000,000 VMIG-1 A1+
2,600,000 MTA Transportation Facilities Special Obligation BAN - Series CP-1
LOC ABN AMRO Bank N.V. 05/19/99 2.70 2,600,000 P1 A1+
1,000,000 New York City, NY GO Bond - Series 1996
LOC Morgan Guaranty Trust Company 05/03/99 3.20 1,000,000 P1 A1+
15,000,000 New York City, NY GO Bond - Series 1996J-2
LOC Commerzbank 05/03/99 3.20 15,000,000 P1 A1+
2,000,000 New York City, NY GO Bond - Series 1994H-6
MBIA Insured 08/16/99 3.10 2,000,000 MIG-1 A1+
10,000,000 New York State Environmental Series 1997
LOC Bayerische Landesbank/Landesbank Hesen 08/26/99 3.10 10,000,000 MIG-1 A1
3,000,000 New York State GO BAN - Series W 07/21/99 3.05 3,000,000 P1 A1
------------ ------------
48,995,000 Total Tax Exempt Commercial Paper 48,995,000
------------ ------------
<CAPTION>
Variable Rate Demand Instruments - Participations (b) (0.11%)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$ 119,947 Centennial Associates/W & H Stampings, Incorporated
LOC Chase Manhattan Bank, N.A. 10/01/00 5.03% $ 119,947 P1 A1
51,723 Faden Paper Supply Company
LOC Chase Manhattan Bank, N.A. 01/01/00 5.03 51,723 P1 A1
53,453 I.G. Federal Electric Supply Corporation 1984
LOC Chase Manhattan Bank, N.A. 11/01/99 5.03 53,453 P1 A1
33,820 Nassau County, NY IDA IDRB
(Steven Klein/Normandie Metal Fabricators)
LOC Chase Manhattan Bank, N.A. 11/01/99 5.03 33,820 P1 A1
118,921 New York City, NY
(Seybert-Nicholas Printing Corporation/Kenner Printing)
LOC Chase Manhattan Bank, N.A. 06/01/00 5.03 118,921 P1 A1
163,298 Texpak Incorporated Project
LOC Chase Manhattan Bank, N.A. 01/01/01 5.03 163,298 P1 A1
------------ ------------
541,162 Total Variable Rate Demand Instruments - Participations 541,162
------------ ------------
<CAPTION>
Variable Rate Demand Instruments - Private Placements (b) (2.29%)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$ 260,248 Adirondack Transit Lines
LOC Key Bank, N.A. 02/01/01 4.65% $ 260,248 P1 A1
6,500,000 Blaser Real Estate 1986
LOC Union Bank of Switzerland 09/01/21 5.03 6,500,000 P1 A1
</TABLE>
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
<PAGE>
- --------------------------------------------------------------------------------
NEW YORK DAILY TAX FREE INCOME FUND, INC.
STATEMENT OF NET ASSETS (CONTINUED)
APRIL 30, 1999
================================================================================
<TABLE>
<CAPTION>
Ratings (a)
-----------------
Face Maturity Value Standard
Amount Date Yield (Note 1) Moody's & Poor's
------ ---- ----- ------ ------- -------
Variable Rate Demand Instruments - Private Placements (b) (Continued)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$ 3,150,000 New York City IDA Civic Facilities RB
(1997 Epiphany Community Nursery School Project)
LOC Bank of New York 05/01/11 3.65% $ 3,150,000 VMIG-1
262,083 Troy Mall Associates - Series 1985B
LOC Key Bank, N.A. 07/01/15 4.65 262,083 P1 A1
823,750 Troy Mall Associates - Series 1985C
LOC Key Bank, N.A. 04/01/16 4.65 823,750 P1 A1
------------ ------------
10,996,081 Total Variable Rate Demand Instruments - Private Placements 10,996,081
------------ ------------
Total Investments (99.84%) (Cost $480,567,460+) 480,567,460
Cash and Other Assets, Net of Liabilities (0.16%) 774,371
------------
Net Assets (100.00%) $481,341,831
============
Net Asset Value offering and redemption price per share:
Class A Shares, 473,968,495 shares outstanding (Note 3) $ 1.00
============
Class B Shares, 7,377,039 shares outstanding (Note 3) $ 1.00
============
+ Aggregate cost for federal income tax purposes is identical.
</TABLE>
FOOTNOTES:
(a) Unless the variable rate demand instruments are assigned their own ratings,
the ratings are those of the holding company of the bank whose letter of
credit guarantees the issue or the insurance company who insures the issue.
All letters of credit and insurance are irrevocable and direct pay covering
both principal and interest. Certain issuers have either a line of credit,
a liquidity facility, a standby purchase agreement or some other financing
mechanism to ensure the remarketing of the securities. This is not a
guarantee and does not serve to insure or collateralize the issue.
(b) Securities payable on demand at par including accrued interest (usually
with seven days notice) and where indicated are unconditionally secured as
to principal and interest by a bank letter of credit. The interest rates
are adjustable and are based on bank prime rates or other interest rate
adjustment indices. The rate shown is the rate in effect at the date of
this statement.
(c) Securities that are not rated which the Fund's Board of Directors has
determined to be of comparable quality to those rated securities in which
the Fund invests.
<TABLE>
<CAPTION>
KEY:
<S> <C> <C> <C> <C> <C>
BAN = Bond Anticipation Note IDA = Industrial Development Authority
ERDA = Energy and Research Development Authority IDRB = Industrial Development Revenue Bond
FGIC = Financial Guaranty Insurance Company LOC = Letter of Credit
FSA = Financial Security Assurance PCFA = Pollution Control Financial Authority
GO = General Obligation PCRB = Pollution Control Revenue Bond
HFA = Housing Finance Authority RB = Revenue Bond
HRB = Hospital Revenue Bond
</TABLE>
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
<PAGE>
- --------------------------------------------------------------------------------
NEW YORK DAILY TAX FREE INCOME FUND, INC.
STATEMENT OF OPERATIONS
YEAR ENDED APRIL 30, 1999
================================================================================
<TABLE>
<CAPTION>
INVESTMENT INCOME
<S> <C>
Income:
Interest.............................................................. $ 14,977,582
-------------
Expenses: (Note 2)
Investment management fee............................................. 1,368,074
Administration fee.................................................... 957,652
Shareholder servicing fee (Class A)................................... 903,834
Custodian expenses.................................................... 41,266
Shareholder servicing and
related shareholder expenses...................................... 351,344
Legal, compliance and filing fees..................................... 124,127
Audit and accounting.................................................. 79,664
Directors' fees and expenses.......................................... 16,304
Other expenses........................................................ 26,810
-------------
Total expenses.................................................... 3,869,075
Less: Expenses paid indirectly.................................... ( 1,534)
-------------
Net expenses........................................... 3,867,541
-------------
Net investment income................................................... 11,110,041
<CAPTION>
REALIZED GAIN (LOSS) ON INVESTMENTS
<S> <C>
Net realized gain (loss) on investments................................. 7,223
-------------
Increase in net assets from operations.................................. $ 11,117,264
=============
</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, 1999 AND 1998
================================================================================
<TABLE>
<CAPTION>
1999 1998
---------------- ----------------
INCREASE (DECREASE) IN NET ASSETS
<S> <C> <C>
Operations:
Net investment income....................................... $ 11,110,041 $ 10,443,567
Net realized gain (loss) on investments..................... 7,223 -0-
--------------- ---------------
Increase in net assets from operations......................... 11,117,264 10,443,567
Dividends to shareholders from net investment income
Class A..................................................... ( 10,999,906)* ( 10,418,544)*
Class B..................................................... ( 110,135)* ( 25,023)*
Capital share transactions (Note 3)
Class A..................................................... 103,913,625 46,297,742
Class B..................................................... 2,964,537 4,405,809
--------------- ---------------
Total increase (decrease)............................... 106,885,385 50,703,551
Net assets:
Beginning of year........................................... 374,456,446 323,752,895
--------------- ---------------
End of year................................................. $ 481,341,831 $ 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
================================================================================
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 shareholder servicing 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 $226,872 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 $1,534.
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, 1999, 20,000,000,000 shares of $.001 par value stock were
authorized and capital paid in amounted to $481,343,845. Transactions in capital
stock, all at $1.00 per share, were as follows:
<TABLE>
<CAPTION>
Year Year
Ended Ended
April 30, 1999 April 30, 1998
-------------- --------------
Class A
-------
<S> <C> <C>
Sold................................... 660,180,543 604,303,728
Issued on reinvestment of dividends.... 11,022,965 10,230,471
Redeemed............................... ( 567,289,883) ( 568,236,457)
-------------- --------------
Net increase (decrease)................ 103,913,625 46,297,742
============== ==============
<CAPTION>
Year Year
Ended Ended
April 30, 1999 April 30, 1998
-------------- --------------
Class B
-------
<S> <C> <C>
Sold...................................... 11,061,287 9,480,346
Issued on reinvestment of dividends....... 107,774 15,467
Redeemed.................................. ( 8,204,524) ( 5,090,004)
-------------- --------------
Net increase (decrease)................... 2,964,537 4,405,809
============== ==============
</TABLE>
4. Sales of Securities
Accumulated undistributed realized losses at April 30, 1999 amounted to $2,014.
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 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>
- --------------------------------------------------------------------------------
================================================================================
<TABLE>
<CAPTION>
6. Financial Highlights
Year Ended April 30,
------------------------------------------------------------
Class A
- -------
1999 1998 1997 1996 1995
-------- -------- -------- -------- --------
<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.................... 0.025 0.029 0.028 0.030 0.027
Less distributions:
Dividends from net investment income..... ( 0.025) ( 0.029) ( 0.028) ( 0.030) ( 0.027)
-------- -------- -------- -------- --------
Net asset value, end of year............... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======== ======== ======== ======== ========
Total Return............................... 2.48% 2.90% 2.80% 3.08% 2.74%
Ratios/Supplemental Data
Net assets, end of year (000).............. $473,965 $370,044 $323,746 $283,368 $254,422
Ratios to average net assets:
Expenses................................. 0.85%+ 0.85%+ 0.82%+ 0.84%+ 0.87%
Net investment income.................... 2.43% 2.85% 2.76% 3.02% 2.71%
Expenses paid indirectly................. 0.00% 0.00% 0.00% 0.00% 0.00%
<CAPTION>
Year Ended
Class B April 30, October 10, 1996
- ------- ---------------------------- (Commencement of Sales) to
1999 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.................... 0.027 0.031 0.017
Less distributions:
Dividends from net investment income..... ( 0.027) ( 0.031) ( 0.017)
-------- -------- --------
Net asset value, end of period............. $ 1.00 $ 1.00 $ 1.00
======== ======== ========
Total Return............................... 2.70% 3.12% 3.02%*
Ratios/Supplemental Data
Net assets, end of period (000)............ $ 7,377 $ 4,412 $ 7
Ratios to average net assets:
Expenses................................. 0.64%+ 0.64%+ 0.62%*
Net investment income.................... 2.68% 2.94% 2.99%*
Expenses paid indirectly................. 0.00% 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, 1999, 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, 1999, 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, 1999, 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 25, 1999
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
NY499AN
- --------------------------------------------------------------------------------
<PAGE>
- --------------------------------------------------------------------------------
NEW YORK
DAILY
TAX FREE
INCOME
FUND, INC.
Annual Report
April 30, 1999
- --------------------------------------------------------------------------------
<PAGE>
