<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, 1999 through October 31, 1999.
The Fund had net assets of $469,598,749 and 2,689 active shareholders as of
October 31, 1999.
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, 1999
(UNAUDITED)
================================================================================
<TABLE>
<CAPTION>
Ratings (a)
----------------
Face Maturity Value Standard
Amount Date Yield (Note 1) Moody's & Poor's
------ ---- ----- ------ ------- --------
Other Tax Exempt Investments (25.26%)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
$ 4,940,000 Argyle, NY Central School District Washington County(c) 12/01/99 3.16% $ 4,940,589
6,600,000 Arkport, NY Central School District Steuben and Alleghany Counties(c) 03/03/00 3.07 6,613,530
4,000,000 Beacon Central School District, Dutchess County, NY GO (c) 06/29/00 3.35 4,002,523
3,000,000 Burnt Hills-Ballston Lake Central School District,
Saratoga & Schenectady Counties, NY (c) 06/29/00 3.39 3,001,907
3,141,727 Burnt Hills-Ballston Lake Central School District,
Saratoga & Schenectady Counties, NY (c) 07/14/00 3.39 3,143,843
4,185,000 Canadaigua, NY Central School District TAN (c) 07/12/00 3.49 4,186,394
7,000,000 Chatham, NY Central School District BAN (c) 07/28/00 3.54 7,019,933
2,213,000 City of Watertown, Jefferson County, NY GO BAN (c) 06/21/00 3.25 2,215,719
7,100,000 Clifton Fine Central School District, NY BAN (c) 07/27/00 3.54 7,102,505
2,000,000 Copiague Unified School District, Suffolk County, NY TAN (c) 06/26/00 3.44 2,006,279
9,950,000 Counties of Cattaraugus, Alleghany, Erie, & Wyoming, NY BOCES (c) 12/30/99 3.17 9,950,768
9,900,000 Fort Plain, NY Central School District BAN (c) 07/28/00 3.54 9,903,515
2,000,000 Greece Central School District, Monroe County, NY RAN (c) 06/26/00 3.44 2,006,276
5,000,000 Harrison Central School District, Weschester County, NY (c) 06/23/00 3.25 5,001,545
7,000,000 Heuvelton, NY Central School District Saint Lawrence County (c) 01/26/00 3.16 7,000,792
1,849,500 Jerusalem, NY BAN (c) 05/25/00 3.25 1,851,510
6,786,184 Liverpool Central School District, Onondaga County, NY RAN (c) 07/15/00 3.44 6,789,090
3,000,000 Marcellus Central School District, Onondaga County, NY
(School District Serial Bonds) (c) 06/29/00 3.35 3,001,896
3,500,000 Monroe County, NY BOCES First Supervisory District TAN (c) 06/16/00 3.25 3,504,209
9,700,000 Newark, NY Central School District BAN (c) 08/30/00 3.59 9,727,062
4,300,000 Putman & Westchester Counties, NY BOCES RAN (c) 10/20/00 3.79 4,301,585
3,000,000 Red Creek Central School District,
Cayuga & Wayne Counties, NY RAN (c) 06/30/00 3.39 3,008,133
3,814,000 South Jefferson Central School District,
Jefferson, Lewis & Oswego Counties, NY (c) 06/21/00 3.44 3,818,686
4,500,000 Spencersport Central School District, NY RAN (c) 01/28/00 3.04 4,500,514
- ------------- ------------
118,479,411 Total Other Tax Exempt Investments 118,598,803
- ------------- ------------
</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) (58.82%)
- ------------------------------------------------------------------------------------------------------------------------------------
<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 Bank One 12/01/14 3.55% $ 5,000,000 A1+
3,000,000 Commonwealth of Puerto Rico GO
(Puerto Rico Electric Power Authority)
Insured by MBIA Insurance Corp. 07/01/23 3.22 3,000,000 VMIG-1
2,100,000 Commonwealth of Puerto Rico RB
(Highway & Transportation Authority)
Insured by AMBAC Indemnity Corp. 07/01/28 3.10 2,100,000 VMIG-1 A1+
600,000 Erie County, NY IDA ( Episcopal Church) - Series B
LOC Banque Paribas 02/01/05 3.50 600,000 VMIG-1
1,700,000 Great Neck Water Authority Water System RB - Series 1993A
Insured by FGIC Insurance Corp. 01/01/20 3.50 1,700,000 VMIG-1 A1+
1,000,000 Islip, NY IDA Brentwood (c)
LOC Fleet National Bank 05/01/09 3.35 1,000,000
5,450,000 Jefferson County, NY IDA IDRB (c)
LOC PNC Bank, N.A. 10/01/13 3.60 5,450,000
1,470,000 Metropolitan Museum of Art
(New York State Dormitory Authority) - Series 1993A 07/01/15 3.25 1,470,000 VMIG-1 A1+
1,160,000 Metropolitan Museum of Art
(New York State Dormitory Authority) - Series 1993B 07/01/23 3.25 1,160,000 VMIG-1 A1+
1,000,000 Monroe County, NY IDA (Collegiate Housing Foundation)
LOC First Union National Bank 10/01/28 3.45 1,000,000 VMIG-1
200,000 Monroe County, NY IDA RB
(Life Care Community Jewish Home) - Series B
LOC Manufacturers & Traders 04/01/04 3.50 200,000 VMIG-1
1,000,000 Nassau County, NY IDA (Manhasset Association Project) (c)
LOC Bankers Trust Company 12/01/99 3.55 1,000,000
15,000,000 New York City, NY GO Bond Fiscal 1996 - Series J
LOC Commerzbank 02/15/16 3.40 15,000,000 P1 A1+
11,000,000 New York City, NY GO Bond Fiscal 1996 - Series J
LOC Morgan Guaranty Trust Company 02/15/16 3.40 11,000,000 P1 A1+
1,500,000 New York City, NY GO Bond - Series B
Insured by FGIC Insurance Corp. 10/01/22 4.00 1,500,000 VMIG-1 A1+
17,800,000 New York City, NY GO Bond - Series E-4
LOC State Street Bank & Trust Company 08/01/22 3.50 17,800,000 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, 1999
(UNAUDITED)
================================================================================
<TABLE>
<CAPTION>
Ratings (a)
----------------
Face Maturity Value Standard
Amount Date Yield (Note 1) Moody's & Poor's
------ ---- ----- ------ ------- --------
Other Variable Rate Demand Instruments (b) (Continued)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$ 5,000,000 New York City, NY GO Bond - Series 1995B3
Insured by MBIA Insurance Corp. 08/15/04 3.55% $ 5,000,000 VMIG-1 A1+
3,000,000 New York City, NY GO Bond - Series 1996F
Insured by FSA 02/01/19 3.54 3,000,000 A1+
3,100,000 New York City, NY GO Bond - Series E-4
LOC State Street Bank & Trust Company 08/01/21 3.50 3,100,000 VMIG-1 A1+
1,000,000 New York City, NY GO Bond - Series E-5
LOC Morgan Guaranty Trust Company 08/01/15 3.50 1,000,000 VMIG-1 A1+
1,600,000 New York City, NY GO Bond - Series E-5
LOC Morgan Guaranty Trust Company 08/01/19 3.50 1,600,000 VMIG-1 A1+
1,500,000 New York City, NY GO Bond - Subseries A-7
LOC Morgan Guaranty Trust Company 08/01/20 3.50 1,500,000 VMIG-1 A1+
3,100,000 New York City, NY GO Bond - Subseries E-6
Insured by FGIC Insurance Corp. 08/01/19 3.50 3,100,000 VMIG-1 A1+
2,000,000 New York City, NY GO P-Floats PA 442
Insured by MBIA Insurance Corp. 05/15/28 3.57 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 3.30 4,400,000 A1
6,525,000 New York City, NY Housing Development Corporation
Multifamily Rent Housing (Jane Street Development)
Collateralized by Federal National Mortgage Association 09/15/28 3.35 6,525,000 A1+
4,100,000 New York City, NY Housing Development Corporation Multifamily RB
(Crotona Ave Project) - Series A
LOC Fleet National Bank 09/01/30 3.35 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 3.25 9,075,000 VMIG-1 A1
10,500,000 New York City, NY Housing Development Corporation Multifamily
Rent Housing (Parkgate Project) - Series A
Collateralized by Federal National Mortgage Association 10/15/28 3.25 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 3.30 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 3.45 5,200,000
</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>
$ 5,000,000 New York City, NY Municipal Water Finance Authority RB
Municipal Securities Trust Receipts
Insured by MBIA Insurance Corp. 06/15/23 3.54% $ 5,000,000 A1+
3,555,000 New York City, NY Municipal Water Finance Authority RB
Municipal Securities Trust Receipts
Insured by MBIA Insurance Corp. 06/15/29 3.54 3,555,000 A1+
1,700,000 New York City, NY Municipal Water Finance Authority & Sewer System
Insured by FGIC Insurance Corp. 06/15/22 3.55 1,700,000 VMIG-1 A1+
3,400,000 New York City, NY Municipal Water Finance Authority & Sewer System
Insured by FGIC Insurance Corp. 06/15/25 3.75 3,400,000 VMIG-1 A1+
3,000,000 New York City, NY Trust for Cultural Resources
(Carnegie Hall) - Series 1990
LOC Westdeutsche Landesbank 12/01/10 3.20 3,000,000 VMIG-1 A1+
2,395,000 New York State Dormitory Authority RB
(Memorial Sloan-Kettering Cancer Center)
LOC Chase Manhattan Bank, N.A. 07/01/19 3.30 2,395,000 VMIG-1 A1+
3,400,000 New York State Dormitory Authority (Oxford University Press, Inc.)
LOC Landesbank Hessen 07/01/25 3.30 3,400,000 VMIG-1
3,000,000 New York State ERDA Electric and Gas
LOC Bank One 10/01/29 3.50 3,000,000 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 3.50 2,000,000 P1
4,000,000 New York State ERDA PCRB
(Niagara Mohawk Power Corporation) - Series B
LOC Toronto-Dominion Bank 12/01/26 3.60 4,000,000 P1
1,700,000 New York State ERDA
(Niagara Mohawk Power Corporation) - Series 1985
LOC Toronto-Dominion Bank 07/01/15 3.70 1,700,000 A1+
1,800,000 New York State ERDA PCRB
(Niagara Mohawk Power Corporation) - Series 1985C
LOC Canadian Imperial Bank of Commerce 12/01/25 3.50 1,800,000 P1
10,000,000 New York State ERDA PCRB
(Rochester Gas & Electric Corporation) - Series 1997A
Insured by MBIA Insurance Corp. 08/01/32 3.25 10,000,000 VMIG-1 A1+
</TABLE>
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
<PAGE>
- --------------------------------------------------------------------------------
NEW YORK DAILY TAX FREE INCOME FUND, INC.
STATEMENT OF NET ASSETS (CONTINUED)
OCTOBER 31, 1999
(UNAUDITED)
================================================================================
<TABLE>
<CAPTION>
Ratings (a)
----------------
Face Maturity Value Standard
Amount Date Yield (Note 1) Moody's & Poor's
------ ---- ----- ------ ------- --------
Other Variable Rate Demand Instruments (b) (Continued)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$ 5,000,000 New York State HFA (70 Battery Place Project)
LOC Bayerische HypoVereinsbank, A.G. 11/01/31 3.37% $ 5,000,000 VMIG-1
5,000,000 New York State HFA (750-5th Ave Project)
LOC Fleet National Bank 11/01/31 3.40 5,000,000 VMIG-1
4,900,000 New York State HFA (Normandie Court II) - Series A
LOC Fleet National Bank 11/01/02 3.30 4,900,000 VMIG-1
12,000,000 New York State HFA (Saxony Housing) - Series 1997A
LOC Chase Manhattan Bank, N.A. 11/01/30 3.37 12,000,000 P1
2,500,000 New York State Local Government Assistance Corporation - Series C
LOC Landesbank Hessen 04/01/25 3.30 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 3.20 5,900,000 VMIG-1 A1+
1,100,000 New York State Local Government Assistance Corporation - Series E
LOC Bank of Nova Scotia 04/01/25 3.30 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 3.35 4,800,000 VMIG-1 A1+
5,500,000 New York State Local Government Assistance Corporation - Series 1994B
LOC Bayerische Landesbank/Westdeutsche Landesbank 04/01/23 3.30 5,500,000 VMIG-1 A1+
7,000,000 New York State Local Government Assistance Corporation - Series 1995D
LOC Societe Generale 04/01/25 3.20 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 3.40 1,600,000 VMIG-1
9,995,000 New York State Medical Care Facilities Revenue Bonds P-FLOATS-407
LOC Merrill Lynch & Company, Inc. 02/15/25 3.53 9,995,000 A1+
600,000 New York State Medical Care Pooled Equipment Authority - Series 1994A
LOC Chase Manhattan Bank, N.A. 11/01/03 3.40 600,000 VMIG-1
19,000,000 Niagara County, NY DA (American Refueling Company) - Series 1996D
LOC Wachovia Bank, N.A. 11/15/26 3.30 19,000,000 P1 A1+
2,000,000 Port Authority of NY & NJ Special Versatile Structure Obligation 04/01/24 3.60 2,000,000 VMIG-1 A1+
2,000,000 Puerto Rico Industrial Medical & Environmental PCFA PCRB
(Ana Mendez Foundation)
LOC Banco Santander 10/01/21 3.40 2,000,000 A1+
2,000,000 Saint Lawrence County, NY IDA (Aluminum Company of America) 12/01/33 3.43 2,000,000 A1
------------ ------------
276,225,000 Total Other Variable Rate Demand Instruments 276,225,000
------------ ------------
</TABLE>
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
<PAGE>
- --------------------------------------------------------------------------------
================================================================================
<TABLE>
<CAPTION>
Ratings (a)
----------------
Face Maturity Value Standard
Amount Date Yield (Note 1) Moody's & Poor's
------ ---- ----- ------ ------- --------
Put Bonds (d) (4.88%)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$ 5,475,000 New York Metropolitan Transit Authority P-FLOATS -PA 477R
Insured by FSA 02/17/00 3.60% $ 5,475,000 A1+
9,695,000 New York State Dormitory Authority - Series PPT-5
LOC Credit Suisse First Boston 05/04/00 3.60 9,695,000 A1+
7,745,000 Port Authority of NY & NJ P-FLOATS-PA 384 02/24/00 3.65 7,745,000 A1+
------------ ------------
22,915,000 Total Put Bonds 22,915,000
------------ ------------
<CAPTION>
Tax Exempt Commercial Paper (8.56%)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$ 4,000,000 Long Island Power Authority
(Electric System Subordinated) - Series 3
LOC Bayerische Landesbank/Westdeutsche Landesbank 11/29/99 3.45% $ 4,000,000 VMIG-1 A1+
2,000,000 Long Island Power Authority
(Electric System Subordinated) - Series 4
LOC Bayerische Landesbank/Westdeutsche Landesbank 11/09/99 3.35 2,000,000 VMIG-1 A1+
5,500,000 MTA Transportation Facilities Special Obligation BAN - Series CP-1
LOC ABN AMRO Bank N.V. 02/16/00 3.60 5,500,000 P1 A1+
2,000,000 New York City, NY GO Bond - Series 1994H-6
Insured by MBIA Insurance Corp. 11/16/99 3.45 2,000,000 MIG-1 A1+
1,700,000 New York City Municipal Water Finance Authority - Series 1
LOC Candian Imperial Bank of Commerce 12/23/99 3.40 1,700,000 P1 A1+
4,000,000 New York State Dormitory Authority (Cornell University) 12/16/99 3.50 4,000,000 P1 A1+
11,000,000 New York State Environmental Facilities Corporation
Solid Waste Refunding RB - Series 1997
LOC Bayerische Landesbank/Landesbank Hessen 11/18/99 3.25 11,000,000 VMIG-1 A1+
3,000,000 New York State GO BAN - Series W 01/25/00 3.55 3,000,000 P1 A1
7,000,000 Puerto Rico GDB 11/17/99 3.35 7,000,000 A1+
------------ ------------
40,200,000 Total Tax Exempt Commercial Paper 40,200,000
------------ ------------
<CAPTION>
Variable Rate Demand Instruments - Participations (b) (0.05%)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$ 79,945 Centennial Associates/W & H Stampings, Incorporated
LOC Chase Manhattan Bank, N.A. 10/01/00 5.36% $ 79,945 P1 A1
17,241 Faden Paper Supply Company
LOC Chase Manhattan Bank, N.A. 01/01/00 5.36 17,241 P1 A1
7,619 I.G. Federal Electric Supply Corporation 1984
LOC Chase Manhattan Bank, N.A. 11/01/99 5.36 7,619 P1 A1
5,550 Nassau County, NY IDA IDRB
(Steven Klein/Normandie Metal Fabricators)
LOC Chase Manhattan Bank, N.A. 11/01/99 5.36 5,550 P1 A1
</TABLE>
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
<PAGE>
- --------------------------------------------------------------------------------
NEW YORK DAILY TAX FREE INCOME FUND, INC.
STATEMENT OF NET ASSETS (CONTINUED)
OCTOBER 31, 1999
(UNAUDITED)
================================================================================
<TABLE>
<CAPTION>
Ratings (a)
----------------
Face Maturity Value Standard
Amount Date Yield (Note 1) Moody's & Poor's
------ ---- ----- ------ ------- --------
Variable Rate Demand Instruments - Participations (b) (Continued)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$ 116,630 Texpak Incorporated Project
LOC Chase Manhattan Bank, N.A. 01/01/01 5.36% $ 116,630 P1 A1
------------ ------------
226,985 Total Variable Rate Demand Instruments - Participations 226,985
------------ ------------
<CAPTION>
Variable Rate Demand Instruments - Private Placements (b) (2.28%)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$ 191,520 Adirondack Transit Lines
LOC Key Bank, N.A. 02/01/01 4.80% $ 191,520 P1 A1
6,500,000 Blaser Real Estate 1986
LOC Union Bank of Switzerland 09/01/21 5.20 6,500,000 P1 A1
2,975,000 New York City IDA Civic Facilities RB
(1997 Epiphany Community Nursery School Project)
LOC Bank of New York 05/01/11 3.35 2,975,000 VMIG-1
253,750 Troy Mall Associates - Series 1985B
LOC Key Bank, N.A. 07/01/15 4.80 253,750 P1 A1
798,750 Troy Mall Associates - Series 1985C
LOC Key Bank, N.A. 04/01/16 4.80 798,750 P1 A1
------------ ------------
10,719,020 Total Variable Rate Demand Instruments - Private Placements 10,719,020
------------ ------------
Total Investments (99.85%) (Cost $468,884,808+) 468,884,808
Cash and Other Assets, Net of Liabilities (0.15%) 713,941
------------
Net Assets (100.00%) $469,598,749
============
Net Asset Value, offering and redemption price per share:
Class A Shares, 445,856,853 shares outstanding (Note 3) $ 1.00
============
Class B Shares, 23,745,599 shares outstanding (Note 3) $ 1.00
============
+ Aggregate cost for federal income tax purposes is identical.
</TABLE>
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
<PAGE>
- --------------------------------------------------------------------------------
================================================================================
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.
(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
ERDA = Energy and Research Development Authority LOC = Letter of Credit
FGIC = Financial Guaranty Insurance Company PCFA = Pollution Control Financial Authority
FSA = Financial Security Assurance PCRB = Pollution Control Revenue Bond
GO = General Obligation RAN = Revenue Anticipation Note
HFA = Housing Finance Authority RB = Revenue Bond
IDA = Industrial Development Authority TAN = Tax Anticipation Note
</TABLE>
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
<PAGE>
- --------------------------------------------------------------------------------
NEW YORK DAILY TAX FREE INCOME FUND, INC.
STATEMENT OF OPERATIONS
SIX MONTHS ENDED OCTOBER 31, 1999
(UNAUDITED)
================================================================================
<TABLE>
<CAPTION>
INVESTMENT INCOME
<S> <C>
Income:
Interest.............................................................. $ 7,862,832
--------------
Expenses: (Note 2)
Investment management fee............................................. 717,013
Administration fee.................................................... 501,909
Shareholder servicing fee (Class A)................................... 457,602
Custodian expenses.................................................... 28,281
Shareholder servicing and
related shareholder expenses...................................... 182,720
Legal, compliance and filing fees..................................... 54,912
Audit and accounting.................................................. 58,940
Directors' fees and expenses.......................................... 12,266
Other expenses........................................................ 18,954
--------------
Total expenses.................................................... 2,032,597
--------------
Net investment income................................................... 5,830,235
REALIZED GAIN (LOSS) ON INVESTMENTS
Net realized gain (loss) on investments................................. -0-
--------------
Increase in net assets from operations.................................. $ 5,830,235
==============
</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, 1999 Ended
(Unaudited) April 30, 1999
--------- --------------
INCREASE (DECREASE) IN NET ASSETS
<S> <C> <C>
Operations:
Net investment income......................................... $ 5,830,235 $ 11,110,041
Net realized gain (loss) on investments....................... -0- 7,223
---------------- ----------------
Increase in net assets from operations........................ 5,830,235 11,117,264
Dividends to shareholders from net investment income
Class A....................................................... ( 5,559,707)* ( 10,999,906)*
Class B....................................................... ( 270,528)* ( 110,135)*
Capital share transactions (Note 3)
Class A....................................................... ( 28,111,642) 103,913,625
Class B....................................................... 16,368,560 2,964,537
---------------- ----------------
Total increase (decrease)................................. ( 11,743,082) 106,885,385
Net assets:
Beginning of period........................................... 481,341,831 374,456,446
---------------- ----------------
End of period................................................. $ 469,598,749 $ 481,341,831
================ ================
* 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 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
- --------------------------------------------------------------------------------
<PAGE>
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================================================================================
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 $120,157 paid to Reich & Tang
Services, Inc. an affiliate of the Manager as servicing agent for the Fund.
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, 1999, 20,000,000,000 shares of $.001 par value stock were
authorized and capital paid in amounted to $469,600,763. Transactions in capital
stock, all at $1.00 per share, were as follows:
<TABLE>
<CAPTION>
Six Months Year
Ended Ended
October 31, 1999 April 30, 1999
---------------- --------------
Class A
-------
<S> <C> <C>
Sold...................................... 230,132,451 660,180,543
Issued on reinvestment of dividends....... 5,404,041 11,022,965
Redeemed.................................. ( 263,648,134) ( 567,289,883)
------------- -------------
Net increase (decrease)................... ( 28,111,642) 103,913,625
============= =============
<CAPTION>
Six Months Year
Ended Ended
October 31, 1999 April 30, 1999
Class B
-------
<S> <C> <C>
Sold...................................... 64,114,221 11,061,287
Issued on reinvestment of dividends....... 257,235 107,774
Redeemed.................................. ( 48,002,896) ( 8,204,524)
------------- -------------
Net increase (decrease)................... 16,368,560 2,964,537
============= =============
</TABLE>
4. Sales of Securities
Accumulated undistributed realized losses at October 31, 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 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 52% 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.
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<PAGE>
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NEW YORK DAILY TAX FREE INCOME FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
(UNAUDITED)
================================================================================
6. Financial Highlights
<TABLE>
<CAPTION>
Six Months Year Ended April 30,
Class A Ended -------------------------------------------------------------
------- October 31, 1999 1999 1998 1997 1996 1995
---------------- ------- ------- ------- ------- -------
<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........................ 0.012 0.025 0.029 0.028 0.030 0.027
Less distributions:
Dividends from net investment income......... ( 0.012) ( 0.025) ( 0.029) ( 0.028) ( 0.030) ( 0.027)
------- ------ ------ ------ ------ ------
Net asset value, end of period................. $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======== ======= ======= ======= ======= =======
Total Return................................... 2.45%* 2.48% 2.90% 2.80% 3.08% 2.74%
Ratios/Supplemental Data
Net assets, end of period (000)................ $445,853 $473,965 $370,044 $323,746 $283,368 $254,422
Ratios to average net assets:
Expenses..................................... 0.86%* 0.85%+ 0.85%+ 0.82%+ 0.84%+ 0.87%
Net investment income........................ 2.43%* 2.43% 2.85% 2.76% 3.02% 2.71%
Expenses paid indirectly..................... 0.00%* 0.00% 0.00% 0.00% 0.00% 0.00%
<CAPTION>
Year Ended
Six Months April 30, October 10, 1996
Class B Ended ----------------------- (Commencement of Sales) to
------- October 31, 1999 1999 1998 April 30, 1997
---------------- ---------- ---------- --------------
<S> <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
--------- ---------- ---------- ---------
Income from investment operations:
Net investment income........................ 0.013 0.027 0.031 0.017
Less distributions:
Dividends from net investment income......... ( 0.013) ( 0.027) ( 0.031) ( 0.017)
------- ------- ------- -------
Net asset value, end of period................. $ 1.00 $ 1.00 $ 1.00 $ 1.00
======== ======== ======== ========
Total Return................................... 2.67%* 2.70% 3.12% 3.02%*
Ratios/Supplemental Data
Net assets, end of period (000)................ $ 23,745 $ 7,377 $ 4,412 $ 7
Ratios to average net assets:
Expenses..................................... 0.64%*+ 0.64%+ 0.64%+ 0.62%*
Net investment income........................ 2.65%* 2.68% 2.94% 2.99%*
Expenses paid indirectly..................... 0.00%* 0.00% 0.00% 0.00%
* Annualized
+ Includes expenses paid indirectly.
</TABLE>
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<PAGE>
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NEW YORK DAILY TAX FREE INCOME FUND, INC.
CHANGE IN INDEPENDENT ACCOUNTANTS
================================================================================
On August 13, 1999, McGladrey & Pullen, LLP (McGladrey) resigned as independent
auditors of the Fund pursuant to an agreement by PricewaterhouseCoopers LLP
(PwC) to acquire McGladrey's investment company practice. The McGladrey partners
and professionals serving the Fund at the time of the acquisition have joined
PwC.
The report of McGladrey on the financial statements of the Fund for the past
fiscal year contained no adverse opinion or a disclaimer of opinion, and were
not qualified or modified as to uncertainty, audit scope or accounting
principles.
In connection with its audit for the most recent fiscal year and through August
13, 1999, there were no disagreements with McGladrey on any matter of accounting
principle or practices, financial statement disclosure, or auditing scope or
procedure, which disagreements, if not resolved to the satisfaction of McGladrey
would have caused it to make reference to the subject matter of disagreement in
connection with its report.
Effective August 13, 1999, the Fund, with the approval of its Board of Directors
and its Audit Committee, engaged PwC as its independent auditors.
- --------------------------------------------------------------------------------
<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
NY1099S
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<PAGE>
- --------------------------------------------------------------------------------
NEW YORK
DAILY
TAX FREE
INCOME
FUND, INC.
Semi-Annual Report
October 31,1999
(Unaudited)
- --------------------------------------------------------------------------------
<PAGE>
