<PAGE>
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CONNECTICUT
DAILY TAX FREE 600 FIFTH AVENUE, NEW YORK, N.Y. 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, 2000.
The Fund had net assets of $185,776,436 and 486 active shareholders as of
January 31, 2000.
Thank you for your support and we look forward to continuing to serve your cash
management needs.
Sincerely,
[GRAPHIC OMITTED][GRAPHIC OMITTED]
\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 NET ASSETS
JANUARY 31, 2000
================================================================================
<TABLE>
<CAPTION>
Ratings (a)
-----------------
Face Maturity Value Standard
Amount Date Yield (Note 1) Moody's & Poor's
------ ---- ----- ------ ------- ------
Other Tax Exempt Investments (17.33%)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$ 450,000 Connecticut Regional School District #6 (c) 06/01/00 3.13% $ 454,067
3,780,000 Connecticut State GO Bonds - Series B (c) 03/15/00 3.07 3,786,490
3,150,000 Danbury, CT BAN (c) 08/08/00 3.75 3,150,598
2,330,000 East Granby, CT BAN (c) 08/10/00 3.39 2,333,519
2,589,000 New Fairfield, CT BAN (c) 08/02/00 3.70 2,589,492
2,000,000 Old Saybrook, CT (c) 09/06/00 3.78 2,000,223
3,550,000 Puerto Rico Commonwealth Highway RB - Series Q
Collateralized by U.S. Government Obligations 07/01/00 3.05 3,685,116 AAA
2,100,000 Towns of Bethany and Orange, CT Regional School District #5 (c) 03/23/00 2.79 2,101,190
3,000,000 Towns of Bethlehem and Woodbury, CT
Regional School District #14 (c) 05/25/00 3.06 3,000,267
1,000,000 Town of Brookfield, CT BAN (c) 12/08/00 3.79 1,000,324
1,735,000 Town of Manchester, CT GO (c) 07/06/00 3.34 1,739,290
3,350,000 Town of Rocky Hill, CT GO BAN (c) 03/15/00 3.09 3,351,419
3,000,000 Windsor, CT BAN 01/18/01 3.79 3,011,110 MIG-1 SP1+
------------- ------------
32,034,000 Total Other Tax Exempt Investments 32,203,105
------------- ------------
<CAPTION>
Other Variable Rate Demand Instruments (b) (56.32%)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$ 3,100,000 Connecticut Development Authority Refunding Airport Hotel RB
(Bradley Airport Hotel Project) - Series 1997A
LOC Kredietbank 03/01/17 3.00% $ 3,100,000 VMIG-1
1,000,000 Connecticut Development Authority Refunding Airport Hotel RB
(Bradley Airport Hotel Project) - Series 1997B
LOC Royal Bank Of Canada 03/01/17 3.00 1,000,000 VMIG-1
5,600,000 Connecticut Development Authority PCRB
(CT Light & Power Company Project) - Series 1996A
Insured by AMBAC Indemnity Corp. 05/01/31 2.90 5,600,000 VMIG-1 A1+
5,000,000 Connecticut HFA (Elm Haven) - Series A (c)
LOC Fleet National Bank 12/01/17 2.95 5,000,000
800,000 Connecticut HFA Housing Mortgage
Finance Program Bonds - Series 1995G
Insured by AMBAC Indemnity Corp. 05/15/18 3.10 800,000 VMIG-1 A1+
</TABLE>
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The accompanying notes are an integral part of these financial statements.
<PAGE>
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================================================================================
<TABLE>
<CAPTION>
Ratings (a)
-----------------
Face Maturity Value Standard
Amount Date Yield (Note 1) Moody's & Poor's
------ ---- ----- ------ ------- ------
Other Variable Rate Demand Instruments (b) (Continued)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$ 6,750,000 Connnecticut Resources Recovery Authority
(Ref-Fuel Company of South East Connecticut - Duke Capital) 11/15/15 3.40% $ 6,750,000 A1
3,100,000 Connecticut Special Tax Obligation RB
(Second Lien Transportation Infrastructure)
LOC Commerzbank A.G. 12/01/10 3.25 3,100,000 P1 A1+
1,700,000 Connecticut State Development Authority (Independent Living)
LOC Chase Manhattan Bank, N.A. 07/01/15 3.15 1,700,000 VMIG-1
6,000,000 Connecticut State Development Authority IDRB
(Gerber Scientific Incorporated)
LOC Wachovia Bank & Trust Co., N.A. 12/01/14 3.25 6,000,000 A1+
5,000,000 Connecticut State General Obligation - Series 1997 B 05/15/14 2.80 5,000,000 VMIG-1 A1+
1,500,000 Connecticut State Special Tax Obligation RB
(Second Lien Transportation Infrastructure)
LOC Commerzbank A.G. 12/01/10 3.25 1,500,000 P1 A1+
4,000,000 Morgan Stanley Floating Rate
(Connecticut State General Obligation) (c) 05/01/09 3.15 4,000,000
1,855,000 Puerto Rico Ana Mendez University System
(Industrial Tourist Educational, Medical & Environmental)
LOC Banco Santander 10/01/21 2.50 1,855,000 A1+
19,000,000 Puerto Rico Commonwealth (Floating Rate Trust Receipts) 07/30/00 3.55 19,000,000 VMIG-1
6,000,000 Puerto Rico Commonwealth GO
(Puerto Rico Electric Power Authority)
Insured by MBIA Insurance Corp. 07/01/23 2.80 6,000,000 VMIG-1
2,000,000 Puerto Rico Public Finance Corporation
(Commonwealth Appropriation)
Insured by AMBAC Indemnity Corp. 12/01/06 2.80 2,000,000 A1
3,000,000 Puerto Rico Electric Power Authority - Series AA
Insured by MBIA Insurance Corp. 07/01/22 2.60 3,000,000 A1+
1,660,000 Shelton, CT Housing Authority RB (c)
LOC First Union National Bank 01/01/31 3.10 1,660,000
4,600,000 State of Connecticut Ascension - Series 99B 11/15/29 3.10 4,600,000 VMIG-1 A1+
5,100,000 State of Connecticut HEFA (Bradley Health Care Issue) - Series B
LOC Fleet National Bank 07/01/29 2.70 5,100,000 VMIG-1
1,400,000 State of Connecticut HEFA (Charlotte Hungerford Hospital)
LOC Bank of Boston 07/01/13 3.15 1,400,000 VMIG-1
</TABLE>
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The accompanying notes are an integral part of these financial statements.
<PAGE>
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CONNECTICUT DAILY TAX FREE INCOME FUND, INC.
STATEMENT OF NET ASSETS (CONTINUED)
JANUARY 31, 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>
$ 1,600,000 State of Connecticut HEFA
(Hospital of Saint Raphael Issue) - Series K
LOC Kredietbank 07/01/22 2.65% $ 1,600,000 VMIG-1
1,370,000 State of Connecticut HEFA (Sharon Hospital Issue)
LOC Bank of Boston 07/01/27 3.15 1,370,000 VMIG-1
11,100,000 State of Connecticut HEFA (Yale University) 07/01/29 2.85 11,100,000 VMIG-1 A1+
2,400,000 State of Connecticut HEFA - Series A
LOC Credit Locale de France 07/01/24 3.15 2,400,000 VMIG-1
------------- -------------
104,635,000 Total Other Variable Rate Demand Instruments 104,635,000
------------- -------------
<CAPTION>
Put Bonds (d) (9.78%)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$ 1,000,000 Connecticut HEFA (Yale New Haven Hospital) - Series E
Insured by FGIC 06/01/00 3.20% $ 1,000,000 VMIG-1 A1+
805,000 Connecticut HFA Program 09/05/00 3.90 805,000 VMIG-1
8,200,000 Connecticut State Special Assessment
Unemployment Compensation RB
Insured by FGIC 07/01/00 3.38 8,200,000 VMIG-1 A1+
8,160,000 Puerto Rico Industrial Medical & Environmental PCFA RB
(Reynolds Metals Corporation)
LOC ABN AMRO Bank N.V. 09/01/00 3.50 8,160,000 VMIG-1 A1+
------------- -------------
18,165,000 Total Put Bonds 18,165,000
------------- -------------
<CAPTION>
Tax Exempt Commercial Paper (17.71%)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$ 895,000 Connecticut HFA Mortgage Project 1989 - Series D
Guaranteed by FHA/VA/Private Mortgages 02/08/00 3.70% $ 895,000 VMIG-1 A1+
2,500,000 Connecticut HFA Mortgage Project 1989 - Series D
Guaranteed by FHA/VA/Private Mortgages 02/11/00 3.30 2,500,000 VMIG-1 A1+
8,500,000 Puerto Rico Government Development Bank 02/09/00 3.40 8,500,000 A1+
5,000,000 Puerto Rico Government Development Bank 02/16/00 3.30 5,000,000 A1+
2,000,000 State of Connecticut HEFA RB (Yale University) 02/16/00 3.00 2,000,000 VMIG-1 A1+
7,000,000 State of Connecticut Special Assessment Second Injury Fund
LOC Credit Agricole/Credit Commercial de Belgique 02/03/00 3.65 7,000,000 P1 A1+
7,000,000 State of Connecticut Special Assessment Second Injury Fund
LOC Credit Agricole/Credit Commercial de Belgique 03/08/00 3.65 7,000,000 P1 A1+
------------- -------------
32,895,000 Total Tax Exempt Commercial Paper 32,895,000
------------- -------------
</TABLE>
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The accompanying notes are an integral part of these financial statements.
<PAGE>
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================================================================================
<TABLE>
<CAPTION>
Ratings (a)
-----------------
Face Maturity Value Standard
Amount Date Yield (Note 1) Moody's & Poor's
------ ---- ----- ------ ------- ------
Variable Rate Demand Instruments Participations (b) (0.29%)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$ 538,815 Connecticut State Development Authority IDRB (Nefco Holding)
LOC Chase Manhattan Bank, N.A. 11/01/00 5.52% $ 538,815 P1 A1
------------- -------------
538,815 Total Variable Rate Demand Instruments - Participations 538,815
------------- -------------
Total Investments (101.43%) (Cost $188,436,920+) $ 188,436,920
Liabilities in Excess of Cash and Other Assets (-1.43%) ( 2,660,484)
-------------
Net Assets (100.00%) $ 185,776,436
=============
Net Asset Value, offering and redemption price per share:
Class A Shares, 100,503,792 Shares Outstanding (Note 3) $ 1.00
=============
Class B Shares, 10,629,178 Shares Outstanding (Note 3) $ 1.00
=============
Evergreen Shares, 33,678,234 Shares Outstanding (Note 3) $ 1.00
=============
Chase Vista Select Shares, 40,988,227 Shares Outstanding (Note 3) $ 1.00
=============
+ Aggregate cost for federal income tax purposes is identical.
</TABLE>
FOOTNOTES:
(a) Unless the variable rate demand instruments are assigned their own ratings,
the ratings are those of the holding company of the bank whose letter of
credit guarantees the issue or the insurance company who insures the issue.
All letters of credit and insurance are irrevocable and direct pay covering
both principal and interest. Certain issuers have either a line of credit,
a liquidity facility, a standby purchase agreement or some other financing
mechanism to ensure the remarketing of the securities. This is not a
guarantee and does not serve to insure or collateralize the issue.
(b) Securities payable on demand at par including accrued interest (usually
with seven days notice) and 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>
<CAPTION>
KEY:
<S> <C><C> <C> <C> <C>
BAN = Bond Anticipation Note IDRB = Industrial Development Revenue Bond
FGIC = Financial Guaranteed Insurance Company LOC = Letter of Credit
GO = General Obligation PCFA = Pollution Control Finance Authority
HEFA = Health and Education Facilities Authority PCRB = Pollution Control Revenue Bond
HFA = Housing Finance Authority RB = Revenue Bond
</TABLE>
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The accompanying notes are an integral part of these financial statements.
<PAGE>
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CONNECTICUT DAILY TAX FREE INCOME FUND, INC.
STATEMENT OF OPERATIONS
YEAR ENDED JANUARY 31, 2000
================================================================================
<TABLE>
<CAPTION>
INVESTMENT INCOME
<S> <C>
Income:
Interest..................................................................................$ 5,425,779
----------------
Expenses: (Note 2)
<S> <C>
Investment management fee................................................................. 520,876
Administration fee........................................................................ 364,613
Shareholder servicing fee (Class A)....................................................... 261,229
Shareholder servicing fee (Evergreen shares).............................................. 33,335
Shareholder servicing fee (Chase Vista Select shares)..................................... 36,749
Custodian expenses........................................................................ 24,580
Shareholder servicing and related shareholder expenses.................................... 79,852
Legal, compliance and filing fees......................................................... 56,396
Audit and accounting...................................................................... 76,539
Directors' fees........................................................................... 15,230
Other..................................................................................... 10,298
----------------
Total expenses........................................................................ 1,479,697
Less: Expenses paid indirectly........................................................( 277)
----------------
Net expenses................................................................... 1,479,420
----------------
Net investment income..................................................................... 3,946,359
REALIZED GAIN (LOSS) ON INVESTMENTS
Net realized gain (loss) on investments..................................................... 2,668
----------------
Increase in net assets from operations......................................................$ 3,949,027
================
</TABLE>
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The accompanying notes are an integral part of these financial statements.
<PAGE>
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CONNECTICUT DAILY TAX FREE INCOME FUND, INC.
STATEMENTS OF CHANGES IN NET ASSETS
YEARS ENDED JANUARY 31, 2000 AND 1999
================================================================================
<TABLE>
<CAPTION>
2000 1999
---------------- ------------------
INCREASE (DECREASE) IN NET ASSETS
<S> <C> <C>
Operations:
Net investment income...................................... $ 3,946,359 $ 4,302,232
Net realized gain (loss) on investments.................... 2,668 546
--------------- ----------------
Increase (decrease) in net assets from operations.............. 3,949,027 4,302,778
Dividends to shareholders from net investment income:
Class A.................................................... ( 2,908,519)* ( 4,298,462)*
Class B.................................................... ( 198,653)* ( 3,770)*
Evergreen shares........................................... ( 398,613)* --
Chase Vista Select shares.................................. ( 440,574)* --
Capital share transactions (Note 3):
Class A.................................................... ( 81,749,348) 14,447,178
Class B.................................................... 10,240,419 384,423
Evergreen shares........................................... 33,678,234 --
Chase Vista Select Class................................... 40,988,227 --
--------------- ----------------
Total increase (decrease).................................. 3,160,200 14,832,147
Net assets:
Beginning of year.......................................... 182,616,236 167,784,089
--------------- ----------------
End of year................................................ $ 185,776,436 $ 182,616,236
=============== ================
* Designated as exempt-interest dividends for federal income tax purposes.
</TABLE>
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The accompanying notes are an integral part of these 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 four classes of stock authorized, Class A, Class B,
Evergreen shares and Chase Vista Select shares. The Class A, Evergreen and Chase
Vista Select 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 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. The
Fund is a short-term, tax-exempt money market Fund. The Evergreen and Chase
Vista Select shares commenced on July 30, 1999. Its 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) at the annual rate of .30%
of the Fund's average daily net assets.
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.
- --------------------------------------------------------------------------------
<PAGE>
- --------------------------------------------------------------------------------
================================================================================
2. Investment Management Fees and Other Transactions with Affiliates.
(Continued)
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,
only with respect to Class A, Evergreen and Chase Vista Select 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, Evergreen
and Chase Vista Select 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 $86,888 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 $277.
3. Capital Stock.
At January 31, 2000, 20,000,000,000 shares of $.001 par value stock were
authorized and capital paid in amounted to $185,781,120. Transactions in capital
stock, all at $1.00 per share, were as follows:
<TABLE>
<CAPTION>
Year Year
Class A Ended Ended
------- January 31, 2000 January 31, 1999
---------------- ----------------
<S> <C> <C>
Sold................................... 328,532,184 324,965,031
Issued on reinvestment of dividends.... 2,921,055 4,392,198
Redeemed............................... ( 413,202,587) ( 314,910,051)
------------- --------------
Net increase (decrease)................ ( 81,749,348) 14,447,178
============= ==============
<CAPTION>
Year Year
Class B Ended Ended
------- January 31, 2000 January 31, 1999
---------------- ----------------
<S> <C> <C>
Sold................................... 93,352,275 973,103
Issued on reinvestment of dividends.... 175,387 3,412
Redeemed............................... ( 83,287,243) ( 592,092)
------------- --------------
Net increase (decrease)................ 10,240,419 384,423
============= ==============
<CAPTION>
July 30, 1999
Evergreen Shares (Commencement of Offering)
---------------- to January 31, 2000
-------------------
<S> <C>
Sold................................... 65,494,918
Issued on reinvestment of dividends.... 398,197
Redeemed............................... ( 32,214,881)
-------------
Net increase (decrease)................ 33,678,234
=============
</TABLE>
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<PAGE>
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CONNECTICUT DAILY TAX FREE INCOME FUND, INC.
NOTES TO FINANCIAL STATEMENTS
================================================================================
<TABLE>
<CAPTION>
3. Capital Stock. (Continued)
July 30, 1999
Chase Vista Select Shares (Commencement of Offering)
------------------------- to January 31, 2000
-------------------
<S> <C>
Sold................................... 83,337,503
Issued on reinvestment of dividends.... 404,479
Redeemed............................... ( 42,753,755)
-------------
Net increase (decrease)................ 40,988,227
=============
</TABLE>
4. Sales of Securities.
Accumulated undistributed net realized losses at January 31, 2000 amounted to
$4,684. This amount represents tax basis capital losses which may be carried
forward to offset future capital gains. Such losses expire January 31, 2005
through January 31, 2006.
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 32% 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.
- --------------------------------------------------------------------------------
<PAGE>
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================================================================================
<TABLE>
<CAPTION>
6. Financial Highlights.
Year Ended January 31,
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...................... 0.023 0.025 0.027 0.026 0.030
Less distributions:
Dividends from net investment income....... ( 0.023) ( 0.025) ( 0.027) ( 0.026) ( 0.030)
------- ------- ------- ------- -------
Net asset value, end of year.................. $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======== ======== ======== ======== ========
Total Return.................................. 2.31% 2.52% 2.74% 2.59% 3.02%
Ratios/Supplemental Data
Net assets, end of year (000)................. $ 100,554 $ 182,227 $ 167,780 $ 136,606 $ 105,826
Ratios to average net assets:
Expenses................................... 0.86% 0.88% 0.89% 0.91% 0.91%
Net investment income...................... 2.26% 2.48% 2.70% 2.56% 2.96%
Administration fees waived................. -- -- -- -- 3.02%
Expenses paid indirectly................... -- -- -- 0.02% --
<CAPTION>
Year Ended
January 31, October 10, 1996
CLASS B ------------------------------------- (Commencement of Offering) to
------- 2000 1999 1998 January 31, 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...................... 0.025 0.027 0.029 0.009
Less distributions:
Dividends from net investment income....... ( 0.025) ( 0.027) ( 0.029) ( 0.009)
------- ------- ------- -------
Net asset value, end of period................ $ 1.00 $ 1.00 $ 1.00 $ 1.00
======== ======== ======== ========
Total Return.................................. 2.50% 2.72% 2.96% 2.83%*
Ratios/Supplemental Data
Net assets, end of period (000)............... $ 10,628 $ 389 $ 4 $ 7
Ratios to average net assets:
Expenses................................... 0.67% 0.69% 0.67% 0.70%*
Net investment income...................... 2.49% 2.50% 2.95% 2.80%*
Expenses paid indirectly................... -- -- -- 0.02%*
*......................................Annualized
</TABLE>
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<PAGE>
- --------------------------------------------------------------------------------
CONNECTICUT DAILY TAX FREE INCOME FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
================================================================================
<TABLE>
<CAPTION>
6. Financial Highlights. (Continued)
July 30, 1999
(Commencement of Offering) to
EVERGREEN SHARES January 31, 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............................. 0.012
Less distributions:
Dividends from net investment income.............. ( 0.012)
-------
Net asset value, end of period....................... $ 1.00
========
Total Return......................................... 2.31%*
Ratios/Supplemental Data
Net assets, end of period (000)...................... $ 33,611
Ratios to average net assets:
Expenses.......................................... 0.86%*
Net investment income............................. 2.26%*
<CAPTION>
July 30, 1999
(Commencement of Offering) to
CHASE VISTA SELECT SHARES January 31, 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............................. 0.012
Less distributions:
Dividends from net investment income.............. ( 0.012)
-------
Net asset value, end of period....................... $ 1.00
========
Total Return......................................... 2.31%*
Ratios/Supplemental Data
Net assets, end of period (000)...................... $ 40,983
Ratios to average net assets:
Expenses.......................................... 0.86%*
Net investment income............................. 2.26%*
*.............................. Annualized
</TABLE>
- --------------------------------------------------------------------------------
<PAGE>
- --------------------------------------------------------------------------------
CONNECTICUT DAILY TAX FREE INCOME FUND, INC.
REPORT OF INDEPENDENT ACCOUNTANTS
================================================================================
To the Board of Directors and Shareholders of
Connecticut 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
Connecticut Daily Tax Free Income Fund, Inc. (the "Fund") at January 31, 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 January 31, 2000 by
correspondence with the custodian and brokers, provides a reasonable basis for
the opinion expressed above. The financial statements for the year ended January
31, 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 February 26, 1999 expressed an unqualified opinion on those financial
statements.
PricewaterhouseCoopers LLP
New York, New York
February 29, 2000
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<PAGE>
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CONNECTICUT 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 joined PwC.
The reports of McGladrey on the financial statements of the Fund during the past
two fiscal years 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 audits for the two most recent fiscal years 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.
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<PAGE>
- --------------------------------------------------------------------------------
CONNECTICUT
DAILY
TAX FREE
INCOME
FUND, INC.
Annual Report
January 31, 2000
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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
801 Pennsylvania
Kansas City, Missouri 64105
Transfer Agent &
Dividend Disbursing Agent
Reich & Tang Services, Inc.
600 Fifth Avenue
New York, New York 10020
CT1/00A
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<PAGE>
