<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, 2000.
The Fund had net assets of $446,423,449 and 2,457 active shareholders as of
April 30, 2000.
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, 2000
================================================================================
<TABLE>
<CAPTION>
Ratings (a)
-----------------
Face Maturity Value Standard
Amount Date Yield (Note 1) Moody's & Poor's
------ ---- ----- ------ ------- -------
Other Tax Exempt Investments (23.64%)
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$ 4,000,000 Beacon Central School District, Dutchess County, NY GO (c) 06/29/00 3.35% $ 4,000,618
3,000,000 Burnt Hills-Ballston Lake Central School District,
Saratoga & Schenectady Counties, NY (c) 06/29/00 3.39 3,000,467
3,141,727 Burnt Hills-Ballston Lake Central School District,
Saratoga & Schenectady Counties, NY (c) 07/14/00 3.39 3,142,338
4,185,000 Canadaigua, NY Central School District TAN (c) 07/12/00 3.49 4,185,395
7,475,000 Canadaigua Central School District, Ontario County, NY BAN (c) 03/29/01 4.25 7,476,977
7,000,000 Chatham, NY Central School District BAN (c) 07/28/00 3.54 7,006,497
2,213,000 City of Watertown, Jefferson County, NY GO BAN (c) 06/21/00 3.25 2,213,595
7,100,000 Clifton Fine Central School District, NY BAN (c) 07/27/00 3.54 7,100,810
2,000,000 Copiague Unified School District, Suffolk County, NY TAN (c) 06/26/00 3.44 2,001,478
9,900,000 Fort Plain, NY Central School District BAN (c) 07/28/00 3.54 9,901,146
2,000,000 Greece Central School District, Monroe County, NY RAN (c) 06/26/00 3.44 2,001,477
5,000,000 Harrison Central School District, Weschester County, NY (c) 06/23/00 3.25 5,000,348
1,849,500 Jerusalem, NY BAN (c) 05/25/00 3.25 1,849,734
6,786,184 Liverpool Central School District, Onondaga County, NY RAN (c) 07/15/00 3.44 6,787,032
2,626,920 Lyons Central School District, Wayne County, NY (c) 05/01/01 4.34 2,629,416
3,000,000 Marcellus Central School District, Onondaga County, NY
(School District Serial Bonds) (c) 06/29/00 3.35 3,000,464
3,500,000 Monroe County, NY BOCES First Supervisory District TAN (c) 06/16/00 3.25 3,500,849
9,700,000 Newark, NY Central School District BAN (c) 08/30/00 3.59 9,710,807
4,300,000 Putman & Northern Westchester Counties, NY BOCES RAN (c) 10/20/00 3.79 4,300,770
3,000,000 Red Creek Central School District,
Cayuga & Wayne Counties, NY RAN (c) 06/30/00 3.39 3,002,016
5,000,000 Roosevelt Union Free School District, Nassau County, NY (c) 06/29/00 4.37 5,004,755
3,814,000 South Jefferson Central School District,
Jefferson, Lewis & Oswego Counties, NY (c) 06/21/00 3.44 3,815,026
4,900,000 Sydney, N Y Central School District 11/15/00 3.88 4,913,943 MIG-1
------------ ------------
105,491,331 Total Other Tax Exempt Investments 105,545,958
------------ ------------
<CAPTION>
Other Variable Rate Demand Instruments (b) (60.58%)
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$ 1,100,000 Babylon, NY IDA Resource (Babylon Project)
LOC Union Bank of Switzerland 12/01/24 6.10% $ 1,100,000 A1+
5,000,000 Counties of Warren & Washington, NY IDA IDRB
(Griffith Micro Science Incorporated Project) - Series 1994
LOC Bank One 12/01/14 5.10 5,000,000 A1+
</TABLE>
--------------------------------------------------------------------------------
The accompanying notes are an integral part of these 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>
$ 4,230,000 Commonwealth of Puerto Rico GO
(Puerto Rico Electric Power Authority)
Insured by MBIA Insurance Corp. 07/01/23 4.93% $ 4,230,000 VMIG-1
2,100,000 Commonwealth of Puerto Rico RB
(Highway & Transportation Authority)
Insured by AMBAC Indemnity Corp. 07/01/28 4.90 2,100,000 VMIG-1 A1+
5,400,000 Commonwealth of Puerto Rico (Floating Rate Trust Receipts) 07/30/00 6.10 5,400,000 VMIG-1
600,000 Erie County, NY IDA ( Episcopal Church) - Series B
LOC Banque Paribas 02/01/05 5.20 600,000 VMIG-1
1,700,000 Great Neck Water Authority Water System RB - Series 1993A
Insured by FGIC 01/01/20 5.05 1,700,000 VMIG-1 A1+
1,000,000 Islip, NY IDA Brentwood (c)
LOC Fleet National Bank 05/01/09 4.50 1,000,000
5,450,000 Jefferson County, NY IDA IDRB (c)
LOC PNC Bank, N.A. 10/01/13 5.10 5,450,000
1,300,000 Long Island Power Authority RB - Series 7, Subseries 7-A
Insured by MBIA Insurance Corp. 04/01/25 4.85 1,300,000 VMIG-1 A1+
3,200,000 Long Island Power Authority RB - Series 7, Subseries 7-B
Insured by MBIA Insurance Corp. 04/01/25 5.00 3,200,000 VMIG-1 A1+
1,470,000 Metropolitan Museum of Art
(New York State Dormitory Authority) - Series 1993A 07/01/15 4.85 1,470,000 VMIG-1 A1+
1,160,000 Metropolitan Museum of Art
(New York State Dormitory Authority) - Series 1993B 07/01/23 4.85 1,160,000 VMIG-1 A1+
5,475,000 Metropolitan Transit Authority, NY
Insured by FSA 07/01/14 5.08 5,475,000 A1+
2,500,000 Monroe County, NY IDA - Series A
LOC First Union 06/01/29 4.90 2,500,000 VMIG-1
2,000,000 Nassau County, NY IDA (Cold Spring Harbor Project) - Series 1999 (c) 01/01/34 5.75 2,000,000
15,000,000 New York City, NY GO Bond Fiscal 1996 - Series J
LOC Commerzbank 02/15/16 5.00 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 5.00 11,000,000 P1 A1+
12,400,000 New York City, NY GO Bond - Series E-4
LOC State Street Bank & Trust Company 08/01/22 6.00 12,400,000 VMIG-1 A1+
3,000,000 New York City, NY GO Bond - Series 1996F
Insured by FSA 02/01/19 5.10 3,000,000 A1+
400,000 New York City, NY GO Bond - Subseries E-6
Insured by FGIC 08/01/19 6.00 400,000 VMIG-1 A1+
</TABLE>
--------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
<PAGE>
--------------------------------------------------------------------------------
NEW YORK DAILY TAX FREE INCOME FUND, INC.
STATEMENT OF NET ASSETS (CONTINUED)
APRIL 30, 2000
================================================================================
<TABLE>
<CAPTION>
Ratings (a)
-----------------
Face Maturity Value Standard
Amount Date Yield (Note 1) Moody's & Poor's
------ ---- ----- ------ ------- -------
Other Variable Rate Demand Instruments (b) (Continued)
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$ 2,000,000 New York City, NY GO
Insured by MBIA Insurance Corp. 05/15/28 5.13% $ 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 4.85 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 5.05 6,525,000 A1+
9,075,000 New York City, NY Housing Development Corporation Multifamily RB
(Queenswood Apartment Project)
LOC National City Bank 02/01/17 4.85 9,075,000 VMIG-1 A1
11,000,000 New York City, NY
Housing Development Corporation Multifamily Rent Housing
(Parkgate Project) - Series A
Collateralized by Federal National Mortgage Association 10/15/28 4.90 11,000,000 A1+
11,300,000 New York City, NY IDA Special Facility RB
(Korean Airlines Company Limited Project) - Series 1997
LOC Citibank 11/01/24 5.10 11,300,000 VMIG-1 A1+
5,000,000 New York City, NY Municipal Water Finance Authority RB
Municipal Securities Trust Receipts
Insured by MBIA Insurance Corp. 06/15/23 5.10 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 5.10 3,555,000 A1+
2,910,000 New York City, NY Trust for Cultural Resources
(Carnegie Hall) - Series 1990
LOC Westdeutsche Landesbank 12/01/10 4.40 2,910,000 VMIG-1 A1+
3,000,000 New York State Dormitory Authority RB (Cornell University) - Series A
LOC Toronto-Dominion Bank 07/01/29 4.30 3,000,000 A1+
2,395,000 New York State Dormitory Authority RB
(Memorial Sloan-Kettering Cancer Center)
LOC Chase Manhattan Bank, N.A. 07/01/19 4.95 2,395,000 VMIG-1 A1+
3,400,000 New York State Dormitory Authority (Oxford University Press, Inc.)
LOC Landesbank Hessen 07/01/25 4.90 3,400,000 VMIG-1
8,300,000 New York State ERDA PCRB
(Niagara Mohawk Power Corporation) - Series B
LOC Toronto-Dominion Bank 12/01/26 6.15 8,300,000 P1
</TABLE>
--------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
<PAGE>
--------------------------------------------------------------------------------
================================================================================
<TABLE>
<CAPTION>
Ratings (a)
-----------------
Face Maturity Value Standard
Amount Date Yield (Note 1) Moody's & Poor's
------ ---- ----- ------ ------- -------
Other Variable Rate Demand Instruments (b) (Continued)
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$ 2,300,000 New York State ERDA PCRB
(Niagara Mohawk Power Corporation) - Series 1985C
LOC Canadian Imperial Bank of Commerce 12/01/25 6.10% $ 2,300,000 P1
10,000,000 New York State ERDA PCRB
(Rochester Gas & Electric Corporation) - Series 1997A
Insured by MBIA Insurance Corp. 08/01/32 4.90 10,000,000 VMIG-1 A1+
5,000,000 New York State HFA RB (E 39th Street Housing)
LOC Key Bank 11/01/32 5.00 5,000,000 VMIG-1
4,000,000 New York State HFA RB (Union Square Housing)
Collateralized by Federal National Mortgage Association 11/01/24 5.00 4,000,000 VMIG-1
4,700,000 New York State HFA (70 Battery Place Project) - Series A
Collateralized by Federal National Mortgage Association 05/15/29 5.05 4,700,000 VMIG-1
5,000,000 New York State HFA (750-5th Ave Project)
LOC Fleet National Bank 11/01/31 5.00 5,000,000 VMIG-1
12,000,000 New York State HFA (Normandie Court)
Collateralized by Federal National Mortgage Corporation 11/01/29 5.05 12,000,000 VMIG-1
12,000,000 New York State HFA (Saxony Housing) - Series 1997A
LOC Chase Manhattan Bank, N.A. 11/01/30 5.05 12,000,000 P1
2,400,000 New York State Local Government Assistance Corporation - Series C
LOC Landesbank Hessen 04/01/25 5.00 2,400,000 VMIG-1 A1+
5,600,000 New York State Local Government Assistance Corporation - Series E
LOC Canadian Imperial Bank of Commerce 04/01/25 4.95 5,600,000 VMIG-1 A1+
1,000,000 New York State Local Government Assistance Corporation - Series E
LOC Bank of Nova Scotia 04/01/25 5.00 1,000,000 VMIG-1 A1+
4,700,000 New York State Local Government Assistance Corporation - Series G
LOC Bank of Nova Scotia 04/01/25 4.90 4,700,000 VMIG-1 A1+
5,300,000 New York State Local Government Assistance Corporation - Series 1994B
LOC Bayerische Landesbank/Westdeutsche Landesbank 04/01/23 5.00 5,300,000 VMIG-1 A1+
6,700,000 New York State Local Government Assistance Corporation - Series 1995D
LOC Societe Generale 04/01/25 4.95 6,700,000 VMIG-1 A1+
900,000 New York State Medical Care Facilities Financial Authority
LOC Chase Manhattan Bank, N.A. 11/01/15 4.65 900,000 VMIG-1
9,995,000 New York State Medical Care Facilities RB
LOC Merrill Lynch & Company, Inc. 02/15/25 5.08 9,995,000 A1+
500,000 New York State Medical Care Pooled Equipment Authority - Series 1994A
LOC Chase Manhattan Bank, N.A. 11/01/03 5.05 500,000 VMIG-1
</TABLE>
--------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
<PAGE>
--------------------------------------------------------------------------------
NEW YORK DAILY TAX FREE INCOME FUND, INC.
STATEMENT OF NET ASSETS (CONTINUED)
APRIL 30, 2000
================================================================================
<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>
$ 15,000,000 Niagara County, NY IDA (American Refuel Co.)
LOC Chase Manhattan Bank, N.A. 11/15/26 5.05% $ 15,000,000 P1 A1+
995,000 Port Authority of New York & New Jersey 12/01/12 5.13 995,000 A1+
2,000,000 Puerto Rico Industrial Medical & Environmental PCFA PCRB
(Ana Mendez Foundation)
LOC Banco Santander 10/01/21 5.10 2,000,000 A1+
2,000,000 Saint Lawrence County, NY IDA (Aluminum Company of America) 12/01/33 4.57 2,000,000 A1
------------ ------------
270,435,000 Total Other Variable Rate Demand Instruments 270,435,000
------------ ------------
<CAPTION>
Put Bonds (d) (4.34%)
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$ 9,380,000 New York State Dormitory Authority - Series PPT-5
Insured by FHA 05/04/00 3.60% $ 9,380,000 A1+
10,000,000 New York State GO Bonds - Series B
LOC Dexia Credit Locale de France 08/09/00 4.05 10,000,000 VMIG-1 A1+
------------ ------------
19,380,000 Total Put Bonds 19,380,000
------------ ------------
<CAPTION>
Tax Exempt Commercial Paper (8.29%)
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$ 4,000,000 Long Island Power Authority (Electric System Subordinated) - Series 3
LOC Bayerische Landesbank/Westdeutsche Landesbank 06/06/00 3.90% $ 4,000,000 VMIG-1 A1+
2,000,000 Long Island Power Authority (Electric System Subordinated) - Series 4
LOC Bayerische Landesbank/Westdeutsche Landesbank 05/24/00 3.75 2,000,000 VMIG-1 A1+
5,500,000 MTA Transportation Facilities Special Obligation BAN - Series CP-1
LOC ABN AMRO Bank N.V. 07/12/00 3.80 5,500,000 P1 A1+
2,000,000 New York City Municipal Water - Series 4
LOC Westdeutche Landesbank 07/13/00 3.95 2,000,000 P1 A1+
2,000,000 New York City, NY GO Bond - Series 1994H-6
Insured by MBIA Insurance Corp. 06/07/00 3.95 2,000,000 MIG-1 A1+
4,000,000 New York State Dormitory Authority (Cornell University) 05/04/00 3.75 4,000,000 P1 A1+
5,500,000 New York State Environmental Facilities Corporation
Solid Waste Refunding RB - Series 1997
LOC Bayerische Landesbank/Landesbank Hessen 06/07/00 3.80 5,500,000 VMIG-1 A1+
2,000,000 New York Power Authority - Series 4 06/14/00 3.75 2,000,000 P1 A1
4,000,000 New York Power Authority - Series 4 08/09/00 3.90 4,000,000 P1 A1
3,000,000 New York State GO BAN - Series W 05/11/00 3.65 3,000,000 P1 A1
3,000,000 New York State GO BAN - Series W 06/07/00 3.75 3,000,000 P1 A1
------------ ------------
37,000,000 Total Tax Exempt Commercial Paper 37,000,000
------------ ------------
</TABLE>
--------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
<PAGE>
--------------------------------------------------------------------------------
================================================================================
<TABLE>
<CAPTION>
Ratings (a)
-----------------
Face Maturity Value Standard
Amount Date Yield (Note 1) Moody's & Poor's
------ ---- ----- ------ ------- -------
Variable Rate Demand Instruments - Participations (b) (0.02%)
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$ 39,943 Centennial Associates/W & H Stampings, Incorporated
LOC Chase Manhattan Bank, N.A. 10/01/00 5.85% $ 39,943 P1 A1
69,962 Texpak Incorporated Project
LOC Chase Manhattan Bank, N.A. 01/01/01 5.85 69,962 P1 A1
------------ ------------
109,905 Total Variable Rate Demand Instruments - Participations 109,905
------------ ------------
<CAPTION>
Variable Rate Demand Instruments - Private Placements (b) (2.38%)
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$ 121,418 Adirondack Transit Lines
LOC Key Bank, N.A. 02/01/01 5.40% $ 121,418 P1 P1
6,500,000 Blaser Real Estate 1986
LOC Union Bank of Switzerland 09/01/21 5.85 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 4.62 2,975,000 VMIG-1
245,417 Troy Mall Associates - Series 1985B
LOC Key Bank, N.A. 07/01/15 5.40 245,417 P1 P1
773,750 Troy Mall Associates - Series 1985C
LOC Key Bank, N.A. 04/01/16 5.40 773,750 P1 P1
------------ ------------
10,615,585 Total Variable Rate Demand Instruments - Private Placements 10,615,585
------------ ------------
Total Investments (99.25%) (Cost $443,086,448+) 443,086,448
Cash and Other Assets, Net of Liabilities (0.75%) 3,337,001
------------
Net Assets (100.00%) $446,423,449
============
Net Asset Value offering and redemption price per share:
Class A Shares, 323,218,762 shares outstanding (Note 3) $ 1.00
============
Class B Shares, 39,276,984 shares outstanding (Note 3) $ 1.00
============
Evergreen Shares, 18,185,910 shares outstanding (Note 3) $ 1.00
============
Victory Shares, 65,745,496 shares outstanding (Note 3) $ 1.00
============
+ Aggregate cost for federal income tax purposes is identical.
</TABLE>
--------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
<PAGE>
--------------------------------------------------------------------------------
NEW YORK DAILY TAX FREE INCOME FUND, INC.
STATEMENT OF NET ASSETS (CONTINUED)
APRIL 30, 2000
================================================================================
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
FHA = Federal Housing Administration PCRB = Pollution Control Revenue Bond
FSA = Financial Security Assurance RAN = Revenue Anticipation Note
GO = General Obligation RB = Revenue Bond
HFA = Housing Finance Authority TAN = Tax Anticipation Note
IDA = Industrial Development Authority
</TABLE>
--------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
<PAGE>
--------------------------------------------------------------------------------
NEW YORK DAILY TAX FREE INCOME FUND, INC.
STATEMENT OF OPERATIONS
YEAR ENDED APRIL 30, 2000
================================================================================
<TABLE>
<CAPTION>
INVESTMENT INCOME
<S> <C>
Income:
Interest.............................................................. $ 16,589,903
-------------
Expenses: (Note 2)
Investment management fee............................................. 1,442,517
Administration fee.................................................... 1,009,762
Shareholder servicing fee (Class A)................................... 731,013
Shareholder servicing fee (Evergreen shares).......................... 34,639
Shareholder servicing fee (Victory shares)............................ 141,865
Custodian expenses.................................................... 62,669
Shareholder servicing and
related shareholder expenses...................................... 365,625
Legal, compliance and filing fees..................................... 102,476
Audit and accounting.................................................. 127,416
Directors' fees and expenses.......................................... 22,766
Other expenses........................................................ 34,794
-------------
Total expenses.................................................... 4,075,542
Less: Expenses paid indirectly.................................... ( 331)
-------------
Net expenses........................................... 4,075,211
-------------
Net investment income.................................................... 12,514,692
<CAPTION>
REALIZED GAIN (LOSS) ON INVESTMENTS
<S> <C>
Net realized gain (loss) on investments.................................. -0-
-------------
Increase in net assets from operations................................... $ 12,514,692
=============
</TABLE>
--------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
<PAGE>
--------------------------------------------------------------------------------
NEW YORK DAILY TAX FREE INCOME FUND, INC.
STATEMENTS OF CHANGES IN NET ASSETS
YEARS ENDED APRIL 30, 2000 AND 1999
================================================================================
<TABLE>
<CAPTION>
2000 1999
---------------- ----------------
INCREASE (DECREASE) IN NET ASSETS
<S> <C> <C>
Operations:
Net investment income....................................... $ 12,514,692 $ 11,110,041
Net realized gain (loss) on investments..................... -0- 7,223
--------------- ---------------
Increase in net assets from operations.......................... 12,514,692 11,117,264
Dividends to shareholders from net investment income
Class A..................................................... ( 10,128,205)* ( 10,999,906)*
Class B..................................................... ( 776,671)* ( 110,135)*
Evergreen shares............................................ ( 316,654)* --
Victory shares.............................................. ( 1,293,162)* --
Capital share transactions (Note 3)
Class A..................................................... ( 150,749,733) 103,913,625
Class B..................................................... 31,899,945 2,964,537
Evergreen shares............................................ 18,185,910 --
Victory shares.............................................. 65,745,496 --
--------------- ---------------
Total increase (decrease)............................... ( 34,918,382) 106,885,385
Net assets:
Beginning of year........................................... 481,341,831 374,456,446
--------------- ---------------
End of year................................................. $ 446,423,449 $ 481,341,831
=============== ===============
</TABLE>
* Designated as exempt-interest dividends for federal income tax purposes.
--------------------------------------------------------------------------------
The accompanying notes are an integral part of these 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 four classes of stock authorized, Class A, Class B, Evergreen and Victory
Shares. The Class A, Evergreen and Victory 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, all share classes represent the same interest in the income and assets
of the Fund. Distribution of Class B shares commenced October 10, 1996. The
Evergreen and Victory shares commenced on August 27,1999.
The Fund's financial statements are prepared in accordance with accounting
principles generally accepted in the United States. 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 accounting
principles generally accepted in the United States 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,
with respect to the Class A, Evergreen and Victory shares of the Fund. For its
services under the Shareholder Servicing
--------------------------------------------------------------------------------
<PAGE>
--------------------------------------------------------------------------------
NEW YORK DAILY TAX FREE INCOME FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
================================================================================
2. Investment Management Fees and Other Transactions with Affiliates (Continued)
Agreement, the Distributor receives from the Fund a fee equal to .20% of the
Fund's average daily net assets with respect to such classes. 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 $241,724 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 caption "Shareholder servicing
and related shareholder expenses" are expense offsets of $331.
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, 2000, 20,000,000,000 shares of $.001 par value stock were
authorized and capital paid in amounted to $446,425,463. Transactions in capital
stock, all at $1.00 per share, were as follows:
<TABLE>
<CAPTION>
Year Ended Year Ended
April 30, 2000 April 30, 1999
Class A -------------- --------------
-------
<S> <C> <C>
Sold................................... 629,533,666 660,180,543
Issued on reinvestment of dividends.... 9,990,794 11,022,965
Redeemed............................... ( 790,274,193) ( 567,289,883)
------------- -------------
Net increase (decrease)................ ( 150,749,733) 103,913,625
============= =============
<CAPTION>
Year Ended Year Ended
April 30, 2000 April 30, 1999
Class B -------------- --------------
-------
<S> <C> <C>
Sold...................................... 187,905,596 11,061,287
Issued on reinvestment of dividends....... 713,071 107,774
Redeemed.................................. ( 156,718,722) ( 8,204,524)
------------- -------------
Net increase (decrease)................... 31,899,945 2,964,537
============= =============
<CAPTION>
August 27, 1999
(Commencement of Offering)
to April 30, 2000
-----------------
<S> <C>
Evergreen Shares
----------------
Sold...................................... 46,384,646
Issued on reinvestment of dividends....... 315,190
Redeemed.................................. ( 28,513,926)
------------
Net increase (decrease)................... 18,185,910
============
<CAPTION>
August 27, 1999
(Commencement of Offering)
to April 30, 2000
-----------------
<S> <C>
Victory Shares
--------------
Sold...................................... 136,468,489
Issued on reinvestment of dividends....... 1,293,058
Redeemed.................................. ( 72,016,051)
------------
Net increase (decrease)................... 65,745,496
============
</TABLE>
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<PAGE>
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================================================================================
4. Sales of Securities
Accumulated undistributed realized losses at April 30, 2000 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 49% 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.
6. Financial Highlights
<TABLE>
<CAPTION>
Year Ended April 30,
-----------------------------------------------------------------
CLASS A
------- 2000 1999 1998 1997 1996
--------- ---------- ---------- ---------- ----------
<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...................... 0.026 0.025 0.029 0.028 0.030
Less distributions:
Dividends from net investment income....... ( 0.026) ( 0.025) ( 0.029) ( 0.028) ( 0.030)
-------- -------- -------- -------- --------
Net asset value, end of year.................. $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
========= ========= ========= ========= =========
Total Return.................................. 2.62% 2.48% 2.90% 2.80% 3.08%
Ratios/Supplemental Data
Net assets, end of year (000)................. $ 323,216 $ 473,965 $ 370,044 $ 323,746 $ 283,368
Ratios to average net assets:
Expenses................................... 0.86%+ 0.85%+ 0.85%+ 0.82%+ 0.84%+
Net investment income...................... 2.59% 2.43% 2.85% 2.76% 3.02%
Expenses paid indirectly................... 0.00% 0.00% 0.00% 0.00% 0.00%
</TABLE>
+ Includes expenses paid indirectly.
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<PAGE>
--------------------------------------------------------------------------------
NEW YORK DAILY TAX FREE INCOME FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
================================================================================
6. Financial Highlights (Continued)
<TABLE>
<CAPTION>
Year Ended
CLASS B April 30, October 10, 1996
------- ------------------------------------- (Commencement of Sales) to
2000 1999 1998 April 30, 1997
--------- --------- --------- --------------
<S> <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
--------- --------- --------- ---------
Income from investment operations:
Net investment income...................... 0.028 0.027 0.031 0.017
Less distributions:
Dividends from net investment income....... ( 0.028) ( 0.027) ( 0.031) ( 0.017)
-------- -------- -------- --------
Net asset value, end of year.................. $ 1.00 $ 1.00 $ 1.00 $ 1.00
========= ========= ========= =========
Total Return.................................. 2.84% 2.70% 3.12% 3.02%**
Ratios/Supplemental Data
Net assets, end of year (000)................. $ 39,277 $ 7,377 $ 4,412 $ 7
Ratios to average net assets:
Expenses................................... 0.64%+ 0.64%+ 0.64%+ 0.62%**
Net investment income...................... 2.87% 2.68% 2.94% 2.99%**
Expenses paid indirectly................... 0.00% 0.00% 0.00% 0.00%
<CAPTION>
August 27, 1999
(Commencement of Offering)
EVERGREEN SHARES to April 30, 2000
---------------- -----------------
<S> <C>
Per Share Operating Performance:
(for a share outstanding throughout the period)
Net asset value, beginning of period.......... $ 1.00
--------
Income from investment operations:
Net investment income...................... 0.018
Less distributions:
Dividends from net investment income....... ( 0.018)
-------
Net asset value, end of period................ $ 1.00
========
Total Return.................................. 1.84%*
Ratios/Supplemental Data
Net assets, end of period (000)............... $ 18,186
Ratios to average net assets:
Expenses................................... 0.86%**
Net investment income...................... 2.59%**
Expenses paid indirectly................... 0.00%**
</TABLE>
* Not Annualized
** Annualized
+ Includes expenses paid indirectly.
--------------------------------------------------------------------------------
<PAGE>
--------------------------------------------------------------------------------
NEW YORK DAILY TAX FREE INCOME FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
================================================================================
6. Financial Highlights (Continued)
<TABLE>
<CAPTION>
August 27, 1999
(Commencement of Offering)
VICTORY SHARES to April 30, 2000
-------------- -----------------
<S> <C>
Per Share Operating Performance:
(for a share outstanding throughout the period)
Net asset value, beginning of period........... $ 1.00
--------
Income from investment operations:
Net investment income....................... 0.018
Less distributions:
Dividends from net investment income........ ( 0.018)
-------
Net asset value, end of period................. $ 1.00
========
Total Return................................... 1.84%*
Ratios/Supplemental Data
Net assets, end of period (000)................ $ 65,745
Ratios to average net assets:
Expenses.................................... 0.86%**
Net investment income....................... 2.59%**
Expenses paid indirectly.................... 0.00%**
</TABLE>
* Not Annualized
** Annualized
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<PAGE>
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NEW YORK DAILY TAX FREE INCOME FUND, INC.
REPORT OF INDEPENDENT ACCOUNTANTS
================================================================================
To the Board of Directors and Shareholders of
New York Daily Tax Free Income Fund, Inc.
In our opinion, the accompanying statement of net assets and the related
statements of operations and of changes in net assets and the financial
highlights present fairly, in all material respects, the financial position of
New York Daily Tax Free Income Fund, Inc. (the "Fund") at April 30, 2000, and
the results of its operations, the changes in its net assets and the financial
highlights for the year then ended, in conformity with accounting principles
generally accepted in the United States. These financial statements and
financial highlights (hereafter referred to as "financial statements") are the
responsibility of the Fund's management; our responsibility is to express an
opinion on these financial statements based on our audit. We conducted our audit
of these financial statements in accordance with auditing standards generally
accepted in the United States which require that we plan and perform the audit
to obtain reasonable assurance about whether the financial statements are free
of material misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements, assessing
the accounting principles used and significant estimates made by management, and
evaluating the overall financial statement presentation. We believe that our
audit, which included confirmation of securities at April 30, 2000 by
correspondence with the custodian and brokers, provides a reasonable basis for
the opinion expressed above. The financial statements for the year ended April
30, 1999, including the financial highlights for each of the four years in the
period then ended were audited by other independent accountants whose report
dated May 25, 1999 expressed an unqualified opinion on those financial
statements.
PricewaterhouseCoopers LLP
New York, New York
May 23, 2000
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<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
State Street Kansas City
801 Pennsylvania
Kansas City, Missouri 64105
Transfer Agent & Dividend
Disbursing Agent
Reich & Tang Services, Inc.
600 Fifth Avenue
New York, NY 10020
NY4/00A
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<PAGE>
--------------------------------------------------------------------------------
NEW YORK
DAILY
TAX FREE
INCOME
FUND, INC.
Annual Report
April 30, 2000
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<PAGE>
