<PAGE>
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CONNECTICUT
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 Connecticut Daily Tax Free Income
Fund, Inc. for the year ended January 31, 1997.
The Fund had net assets of $136,612,927 and 539 active shareholders as of
January 31, 1997.
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
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<PAGE>
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CONNECTICUT DAILY TAX FREE INCOME FUND, INC.
STATEMENT OF INVESTMENTS
JANUARY 31, 1997
================================================================================
<TABLE>
<CAPTION>
Ratings (a)
-----------------
Face Maturity Value Standard
Amount Date Yield (Note 1) Moody's & Poors
------ ---- ----- ------ ------- -----
Other Tax Exempt Investments (20.81%)
- ----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$ 1,000,000 Bethel, CT BAN (c) 07/11/97 3.50% $ 1,000,165
2,065,000 Darien, CT BAN (c) 05/07/97 3.56 2,065,151
3,100,000 Milford, CT BAN (c) 11/13/97 3.58 3,100,675
5,000,000 North Haven, CT BAN (c) 09/04/97 3.62 5,008,965
5,000,000 Puerto Rico Commonwealth TRAN 07/30/97 3.40 5,013,570 MIG-1 SP-1+
2,000,000 Puerto Rico Commonwealth TRAN 07/30/97 3.24 2,007,132 MIG-1 SP-1+
1,221,000 Redding, CT BAN (c) 10/23/97 3.67 1,223,786
2,000,000 State of Connecticut GO Bond 1996 - Series A (c) 05/15/97 3.55 2,002,148
3,000,000 Town of Fairfield, Connecticut GO BAN (c) 01/14/98 3.31 3,010,947
3,000,000 Town of Farmington, Connecticut BAN (c) 06/12/97 3.08 3,001,569
1,000,000 Westport, CT BAN (c) 06/27/97 3.50 1,000,075
------------ -----------
28,386,000 Total Other Tax Exempt Investments 28,434,183
------------ -----------
<CAPTION>
Other Variable Rate Demand Instruments (b) (42.27%)
- ----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$ 5,100,000 Connecticut Development Authority
(Exeter Energy Project) - Series 1989B
LOC Sanwa Bank, Ltd. 12/01/19 3.60% $ 5,100,000 A1
5,000,000 Connecticut Development Authority PCRB
(CT Light and Power Company Project 1996) - Series A (c)
LOC Canadian Imperial Bank of Commerce 05/01/31 3.50 5,000,000
5,600,000 Connecticut HFA Housing Mortgage Finance Program (c)
AMBAC Insured 05/15/18 3.50 5,600,000
1,000,000 Connecticut PCR Refunding Bond
(Connecticut Light & Power Company Project)
LOC Union Bank of Switzerland 09/01/28 3.45 1,000,000 VMIG-1 A1+
6,900,000 Connecticut State Development Authority
(CT Light & Power Co. Project) - Series 1993A
LOC Deutsche Bank A.G. 09/01/28 3.55 6,900,000 VMIG-1 A1+
6,000,000 Connecticut State Development Authority
(Corporation for Independent Living Project)
LOC Chase Manhattan Bank, N.A. 07/01/15 3.30 6,000,000 VMIG-1
1,000,000 Connecticut State Development Authority
(Western Mass Electric Company) - Series 1993A
LOC Union Bank of Switzerland 09/01/28 3.30 1,000,000 VMIG-1 A1+
</TABLE>
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See Notes to Financial Statements.
<PAGE>
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<TABLE>
<CAPTION>
Ratings (a)
----------------
Face Maturity Value Standard
Amount Date Yield (Note 1) Moody's & Poors
------ ---- ----- ------ ------- -----
Other Variable Rate Demand Instruments (b) (Continued)
- ----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$ 1,100,000 Connecticut State Development Authority
(Western Mass Electric Company) - Series 1993A
LOC Union Bank of Switzerland 09/01/28 3.30% $ 1,100,000 VMIG-1 A1+
1,200,000 Connecticut State Development Authority IDRB
(Columbia Diamond Ring)
LOC Barclays Bank PLC 09/01/08 3.95 1,200,000 P1 A1+
6,000,000 Connecticut State Development Authority IDRB
(Gerber Scientific Incorporated)
LOC Wachovia Bank & Trust Co., N.A. 12/01/14 3.60 6,000,000 A1+
1,500,000 Connecticut State Development Authority IDRB
(Rand Whitney Container Board L.P.)
LOC Chase Manhattan Bank, N.A. 08/01/23 3.25 1,500,000 P1 A1
1,100,000 Connecticut State Development Authority IDRB
(Vitta Corporation Project)
LOC Barclays Bank PLC 08/01/09 3.95 1,100,000 P1 A1+
10,000,000 Connecticut State Special Tax Obligation RB
(Second Lien Transportation Infrastructure)
LOC Commerzbank A.G. 12/01/10 3.50 10,000,000 VMIG-1 A1+
3,845,000 Hartford County, CT RDA (Underwood Tower Project) (c)
LOC Financial Security Assurance, Inc. 06/01/20 3.25 3,845,000
2,400,000 State of Connecticut HEFA - Series A
LOC Credit Locale de France 07/01/24 3.20 2,400,000 VMIG-1
------------ -----------
57,745,000 Total Other Variable Rate Demand Instruments 57,745,000
------------ -----------
Put Bonds (d) (12.93%)
- ----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$ 1,000,000 Connecticut HFA Program Bond - Series A-4 04/10/97 3.36% $ 1,000,232 VMIG-1 A1+
1,545,000 Connecticut HFA Program Bond - Series A-4 04/10/97 3.65 1,545,000 VMIG-1 A1+
1,600,000 Connecticut State HEFA (Yale University) - Series E
FGIC Insured 06/01/97 3.60 1,600,000 VMIG-1 A1+
3,655,000 Connecticut State RRA Bond
(Wallingford Resource Recovery) - Series 1986
LOC National Westminster Bank PLC 11/15/97 3.80 3,655,000 VMIG-1 A1+
5,000,000 Connecticut State Special Assessment Unemployment
Compensation Advance Fund RB - Ser 93C
FGIC Insured 07/01/97 3.90 5,000,000 VMIG-1 A1+
</TABLE>
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See Notes to Financial Statements.
<PAGE>
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CONNECTICUT DAILY TAX FREE INCOME FUND, INC.
STATEMENT OF INVESTMENTS (CONTINUED)
JANUARY 31, 1997
================================================================================
<TABLE>
<CAPTION>
Ratings (a)
----------------
Face Maturity Value Standard
Amount Date Yield (Note 1) Moody's & Poors
------ ---- ----- ------ ------- -----
Put Bonds (d) (Continued)
- ----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$ 4,860,000 Puerto Rico Industrial Medical & Environmental PCFA RB
(Reynolds Metals Corporation)
LOC ABN AMRO Bank N.V. 09/01/97 3.80% $ 4,860,000 VMIG-1 A1+
------------ ------------
17,660,000 Total Put Bonds 17,660,232
------------ ------------
<CAPTION>
Tax Exempt Commercial Paper (14.96%)
- ----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$ 2,000,000 Connecticut HEFA (Yale University) - Series L 02/05/97 3.25%(d) $ 2,000,000 VMIG-1 A1+
500,000 Connecticut HEFA (Yale University) - Series O 02/05/97 3.40 (d) 500,000 VMIG-1 A1+
3,000,000 Connecticut HEFA (Yale University) - Series M 02/05/97 3.25 (d) 3,000,000 VMIG-1 A1+
935,000 Connecticut HFA Mortgage Project 1989 - Series D 04/04/97 3.55 (d) 935,000 VMIG-1 A1
4,000,000 Connecticut Municipal Electric Energy Cooperative
Power Supply System RB 1995 - Series A
LOC Fleet National Bank 02/11/97 3.05 4,000,000 P1 A1
10,000,000 Puerto Rico Government Development Bank 02/19/97 3.30 10,000,000 A1+
------------ ----------
20,435,000 Total Tax Exempt Commercial Paper 20,435,000
------------ ----------
<CAPTION>
Variable Rate Demand Instruments - Participations (b) (0.90%)
- ----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$ 815,921 Connecticut State Development Authority IDRB (Nefco Holding)
LOC Chase Manhattan Bank, N.A. 11/01/00 5.36% $ 815,921 P1 A1
409,616 Connecticut State Development Authority IDRB
(The Finlay Brothers Project)
LOC Chase Manhattan Bank, N.A. 10/01/00 5.36 409,616 P1 A1
------------ ------------
1,225,537 Total Variable Rate Demand Instruments - Participations 1,225,537
------------ ------------
Total Investments (91.87%) (Cost 125,499,952+) 125,499,952
Cash and Other Assets, Net of Liabilities (8.13%) 11,112,975
------------
Net Assets (100.00%) $136,612,927
============
</TABLE>
+ Aggregate cost for federal income tax purposes is identical.
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See Notes to Financial Statements.
<PAGE>
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FOOTNOTES:
(a) The ratings noted for variable rate demand instruments are those of the
bank whose letter of credit secures such instruments or the guarantor of
the bond. P1 and A1+ are the highest ratings assigned for tax exempt
commercial paper.
(b) Securities payable on demand at par including accrued interest (usually
with seven days notice) and 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 have
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>
KEY:
<S> <C>
BAN = Bond Anticipation Note PCFA = Pollution Control Finance Authority
GO = General Obligation PCR = Pollution Control Revenue
HEFA = Health and Education Facilities Authority PCRB = Pollution Control Revenue Bond
HFA = Housing Finance Authority RB = Revenue Bond
IDRB = Industrial Development Revenue Bond RDA = Revenue Development Authority
LOC = Letter of Credit RRA = Resource Recovery Authority
TRAN = Tax and Revenue Anticipation Note
</TABLE>
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See Notes to Financial Statements.
<PAGE>
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CONNECTICUT DAILY TAX FREE INCOME FUND, INC.
STATEMENT OF ASSETS AND LIABILITIES
JANUARY 31, 1997
================================================================================
<TABLE>
<CAPTION>
ASSETS
<S> <C>
Investments in securities at value (Cost $125,499,952) ........................ $ 125,499,952
Cash........................................................................... 5,724,233
Receivables:
Securities sold............................................................. 5,000,000
Interest ................................................................... 759,764
---------------
Total assets.............................................................. 136,983,949
---------------
LIABILITIES
<S> <C>
Accrued expenses................................................................. 161,903
Dividends payable................................................................ 209,119
---------------
Total liabilities......................................................... 371,022
---------------
Net assets....................................................................... $ 136,612,927
===============
<CAPTION>
Net Asset Value, offering and redemption price per share:
<S> <C>
Class A Shares 136,631,315 Shares Outstanding (Note 3)........................... $ 1.00
==============
Class B Shares 6,827 Shares Outstanding (Note 3)........................... $ 1.00
==============
</TABLE>
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See Notes to Financial Statement.
<PAGE>
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CONNECTICUT DAILY TAX FREE INCOME FUND, INC.
STATEMENT OF OPERATIONS
YEAR ENDED JANUARY 31, 1997
================================================================================
<TABLE>
<CAPTION>
INVESTMENT INCOME
<S> <C>
Income:
Interest....................................................................... $ 4,147,773
---------------
Expenses: (Note 2)
Investment management fee..................................................... 360,874
Administration fee............................................................ 252,612
Shareholder servicing fee..................................................... 240,579
Custodian expenses............................................................ 13,280
Shareholder servicing and related shareholder expenses........................ 114,369
Legal, compliance and filing fees............................................. 22,779
Audit and accounting.......................................................... 65,283
Directors' fees............................................................... 13,830
Other......................................................................... 6,646
--------------
Total expenses............................................................ 1,090,252
Less:
Expenses paid indirectly................................................ ( 23,804)
--------------
Net expenses....................................................... 1,066,448
--------------
Net investment income......................................................... 3,081,325
<CAPTION>
REALIZED GAIN (LOSS) ON INVESTMENTS
<S> <C>
Net realized gain (loss) on investments.......................................... ( 7,566)
---------------
Increase in net assets from operations........................................... $ 3,073,759
===============
</TABLE>
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See Notes to Financial Statements.
<PAGE>
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CONNECTICUT DAILY TAX FREE INCOME FUND, INC.
STATEMENTS OF CHANGES IN NET ASSETS
YEARS ENDED JANUARY 31, 1997 AND 1996
================================================================================
<TABLE>
<CAPTION>
1997 1996
---------------- ---------------
INCREASE (DECREASE) IN NET ASSETS
<S> <C> <C>
Operations:
Net investment income...................................... $ 3,081,325 $ 2,747,513
Net realized gain (loss) on investments.................... ( 7,566) 2,987
-------------- ------------
Increase (decrease) in net assets from operations............... 3,073,759 2,750,500
Dividends to shareholders from net investment income:
Class A.................................................... ( 3,081,273)* ( 2,747,513)*
Class B.................................................... ( 52)* --
Capital share transactions (Note 3):
Class A.................................................... 30,787,660 24,022,159
Class B.................................................... 6,827 --
-------------- -------------
Total increase (decrease).................................. 30,786,921 24,025,146
Net assets:
Beginning of year.......................................... 105,826,006 81,800,860
-------------- -------------
End of year................................................ $ 136,612,927 $ 105,826,006
============== =============
* Designated as exempt-interest dividends for federal income tax purposes.
</TABLE>
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See Notes to Financial Statements.
<PAGE>
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CONNECTICUT DAILY TAX FREE INCOME FUND, INC.
NOTES TO FINANCIAL STATEMENTS
================================================================================
1. Summary of Accounting Policies.
Connecticut 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 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 and
Service Plan. The Class B shares are not subject to a service fee. Additionally,
the Fund may allocate among its classes certain expenses, to the extent
allowable to specific classes, including transfer agent fees, government
registration fees, certain printing and postage costs, and administrative and
legal expenses. Class specific expenses of the Fund were limited to distribution
fees and minor transfer agent expenses. In all other respects the Class A and
Class B shares represent the same interest in the income and assets of the Fund.
Distribution of Class B shares commenced on October 10, 1996 and all Fund shares
outstanding before October 10, 1996 were designated as Class A shares. The Fund
is a short-term, tax-exempt money market Fund. Its 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) at the annual rate of .30%
of the Fund's average daily net assets.
- --------------------------------------------------------------------------------
<PAGE>
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CONNECTICUT DAILY TAX FREE INCOME FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
================================================================================
2. Investment Management Fees and Other Transactions with Affiliates.(Continued)
Pursuant to an Administrative Services Contract 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 L.P. (the Distributor) have
entered into a Distribution Agreement and a Shareholder Servicing Agreement,
only with respect to Class A shares of the Fund. For its services under the
Shareholder Servicing Agreement, the Distributor receives from the Fund with
respect only to the Class A shares, 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.
Fees are paid to Directors who are unaffiliated with the Manager on the basis of
$3,000 per annum plus $500 per meeting attended.
Included in the Statement of Operations under the caption "Shareholder servicing
and related shareholder expenses" are fees of $46,997 paid to Reich & Tang
Services L.P., an affiliate of the Manager, as servicing agent for the Fund.
Included in the Statement of Operations under the captions "Custodian expenses"
and "Shareholder servicing and related shareholder expenses" are expense offsets
of $23,804.
3. Capital Stock.
At January 31, 1997, 20,000,000,000 shares of $.001 par value stock were
authorized and capital paid in amounted to $136,619,832. Transactions in capital
stock, all at $1.00 per share, were as follows:
<TABLE>
<CAPTION>
Class A Class B
--------------------------------------- ------------------
Year Year October 10, 1996
Ended Ended (Commencement of Offering)
January 31, 1997 January 31, 1996 to January 31, 1997
---------------- ---------------- -------------------
<S> <C> <C> <C>
Sold.................................. 238,155,043 230,071,612 6,886
Issued on reinvestment of dividends... 2,976,919 2,456,633 42
Redeemed.............................. ( 210,344,302) ( 208,506,086) ( 101)
------------- ------------- -------------
Net increase ......................... 30,787,660 24,022,159 6,827
============= ============= =============
</TABLE>
4. Sales of Securities.
Accumulated undistributed realized losses at January 31, 1997 amounted to
$6,905. This amount represents tax basis capital losses which may be carried
forward to offset future capital gains. Such losses expire January 31, 2005.
5. Concentration of Credit Risk.
The Fund invests primarily in obligations of political subdivisions of the State
of Connecticut 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 creditworthiness 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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================================================================================
6. Selected Financial Information.
<TABLE>
<CAPTION>
CLASS A Year Ended January 31,
- ------- ------------------------------------------------------------------------------
1997 1996 1995 1994 1993
---------- ---------- ---------- ---------- ----------
Per Share Operating Performance:
(for a share outstanding throughout the period)
<S> <C> <C> <C> <C> <C>
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 0.030 0.023 0.017 0.021
Less distributions:
Dividends from net investment income.......... ( 0.026) ( 0.030) ( 0.023) ( 0.017) ( 0.021)
------- -------- -------- -------- --------
Net asset value, end of year.................... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
========== ========== ========== ========== ==========
Total Return.................................... 2.59% 3.02% 2.29% 1.70% 2.12%
Ratios/Supplemental Data
Net assets, end of year (000)................... $ 136,606 $ 105,826 $ 81,801 $ 120,551 $ 129,297
Ratios to average net assets:
Expenses...................................... 0.91%(a) 0.91%(b) 0.88% 0.87% 0.86%(c)
Net investment income......................... 2.56%(a) 2.96%(b) 2.25% 1.68% 2.14%(c)
October 10, 1996
CLASS B (Commencement of offering) to
- ------- January 31, 1997
-----------------------------
<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......................... 0.009
Less distributions:
Dividends from net investment income.......... ( 0.009 )
----------
Net asset value, end of period.................. $ 1.00
===========
Total Return.................................... 2.83%
Ratios/Supplemental Data
Net assets, end of period (000)................. $ 7
Ratios to average net assets:
Expenses...................................... 0.70%*(a)
Net investment income......................... 2.80%*(a)
</TABLE>
* Annualized
(a) Includes expense offsets equivalent to .02% of average net assets.
(b) Net of administration fees waived equivalent to .03% of average net assets.
(c) Net of management fees waived equivalent to .06% of average net assets.
- --------------------------------------------------------------------------------
<PAGE>
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CONNECTICUT DAILY TAX FREE INCOME FUND, INC.
INDEPENDENT AUDITOR'S REPORT
================================================================================
The Board of Directors and Shareholders
Connecticut Daily Tax Free Income Fund, Inc.
We have audited the accompanying statement of assets and liabilities, including
the statement of investments, of Connecticut Daily Tax Free Income Fund, Inc. as
of January 31, 1997, 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 selected financial information for each of the five
years in the period then ended. These financial statements and selected
financial information are the responsibility of the Fund's management. Our
responsibility is to express an opinion on these financial statements and
selected financial information 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 selected
financial information 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 January 31, 1997, 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 selected financial information
referred to above present fairly, in all material respects, the financial
position of Connecticut Daily Tax Free Income Fund, Inc. as of January 31, 1997,
the results of its operations, the changes in its net assets and the selected
financial information for the periods indicated, in conformity with generally
accepted accounting principles.
\s\McGladrey & Pullen, LLP
New York, New York
March 4, 1997
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<PAGE>
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- -----------------------------------------------------
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.
- -----------------------------------------------------
Connecticut 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
127 West 10th Street
Kansas City, Missouri 64105
Transfer Agent &
Dividend Disbursing Agent
Reich & Tang Services L.P.
600 Fifth Avenue
New York, New York 10020
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<PAGE>
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CONNECTICUT
DAILY
TAX FREE
FUND, INC.
Annual Report
January 31, 1997
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<PAGE>
