NEW JERSEY
DAILY
MUNICIPAL
INCOME
FUND, INC.
Semi-Annual Report
April 30, 1995
(Unaudited)
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1
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NEW JERSEY
DAILY MUNICIPAL 600 FIFTH AVENUE, NEW YORK, NY 10020
INCOME FUND, INC. 212-830-5200
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Dear Shareholder:
We are pleased to present the semi-annual report of New Jersey Daily Municipal
Income Fund, Inc. for the period November 1, 1994 through April 30, 1995.
The Fund had net assets of $103,779,058 and 2,292 active shareholders as of
April 30, 1995. Dividends earned on a share held throughout the period were
$.015 which, when adjusted for the compounding effect of the reinvestment of
dividends, represents a 3.09% yield on an annual basis.
Thank you for your support and look forward to continuing to serve your cash
management needs.
Sincerely,
/s/ Steven W. Duff
Steven Duff
President
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NEW JERSEY DAILY MUNICIPAL INCOME FUND, INC.
STATEMENT OF NET ASSETS
APRIL 30, 1995
(UNAUDITED)
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<TABLE>
<CAPTION>
Ratings (a)
----------------
Face Maturity Value Standard
Amount Date Yield (Note 1) Moody's & Poor's
------ ---- ----- -------- ------- ------
Other Tax Exempt Investments (24.19%)
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$ 1,955,000 Atlantic City, Series 1994
AMBAC Insured 10/01/95 4.25% $ 1,955,000 Aaa AAA
4,000,000 Jersey City, NJ BAN (b) 09/29/95 4.34 4,005,542
2,391,000 Manchester Township, NJ BAN (b) 07/14/95 4.04 2,391,505
1,000,000 NJ EDA Public School Small 08/15/95 4.03 1,017,354 Aa1 AAA
3,000,000 New Jersey State TRAN Series A 06/15/95 3.96 3,003,240 MIG-1 SP-1+
3,500,000 Southern Regional High School District,
NJ Board of Education (b) 11/02/95 4.49 3,503,885
2,309,000 Township of Chatham (b) 05/05/95 3.45 2,309,039
1,850,000 Township of Hopewell (b) 08/28/95 4.04 1,851,591
5,060,000 Trenton NJ School District GO Notes 10/26/95 4.20 5,068,807 SP-1+
------------ -----------
25,065,000 Total Other Tax Exempt Investments 25,105,963
------------ -----------
<CAPTION>
Other Variable Rate Demand Instruments (c) (62.84%)
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<S> <C> <C> <C> <C> <C> <C>
$ 1,500,000 Glouchester County, NJ PCFA
(Monsanto Co. Project) 12/01/22 4.40% $ 1,500,000 P1 A1
6,100,000 Mercer County, NJ Improvement Authority Pooled
Government Loan Program Bond
LOC Credit Suisse 11/01/98 4.50 6,100,000 VMIG-1 A1+
3,400,000 NJ EDA (400 International Drive Rockefeller Corp.)
LOC Morgan Guaranty Trust Company 09/01/05 4.85 3,400,000 Aaa
1,200,000 NJ EDA El Dorado Terminal 05/01/03 5.10 1,200,000 P1
1,000,000 NJ EDA School RB ( Peddie School) Series B 1994 02/01/19 4.75 1,000,000 A1
1,000,000 NJ EDA Sewage Facility RB
LOC PNC Bank 07/01/01 4.95 1,000,000 P1 A1
2,150,000 New Jersey EDA Economic Growth Bonds 1994-A
LOC National Westminster Bank PLC 08/01/14 4.50 2,150,000 P1 A1+
2,085,000 New Jersey State EDA (Block Drug Corp.) - Series A
LOC Trust Co. Bank of Atlanta 06/01/09 4.75 2,085,000 P1 A1+
1,650,000 New Jersey State EDA (Block Drug Corp.) - Series B
LOC Trust Co. Bank of Atlanta 06/01/09 4.75 1,650,000 P1 A1+
3,250,000 New Jersey State EDA (Campus 130 Associates)
LOC The Bank of New York 12/01/11 4.95 3,250,000 P1 A1
4,000,000 New Jersey State EDA (Crompton & Knowles)
LOC ABN AMRO Bank N.V. 07/01/97 4.63 4,000,000 P1 A1+
</TABLE>
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See Notes to Financial Statements.
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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 (c) (Continued)
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<S> <C> <C> <C> <C> <C> <C>
$ 2,600,000 New Jersey State EDA (Curtiss-Wright Flight Systems)
LOC Bank of Nova Scotia 01/01/02 4.40% $ 2,600,000 A1+
1,791,500 New Jersey State EDA (Hartz & Rex Associates)
LOC Citibank 01/01/12 5.10 1,791,500 P1 A1
2,725,000 New Jersey State EDA
(Industrial & Economic Development)
LOC Wachovia Bank & Trust Co., N.A. 06/01/22 4.75 2,725,000 P1 A1+
70,000 New Jersey State EDA (Rennoc Corp.)
LOC Corestates Bank, N.A. 08/01/08 4.88 70,000 A1
800,000 New Jersey State EDA IDRB
(Tru Urban Renewal Corp) Toys-R-Us
LOC Chemical Bank 04/01/19 4.40 800,000 A1
2,890,000 New Jersey State EDA STPCO II
LOC Barclays Bank PLC 07/01/06 4.60 2,890,000 A1+
12,900,000 New Jersey State Turnpike Authority - Series A
FGIC Insured 01/01/18 4.25 12,900,000 VMIG-1 A1+
4,400,000 PC Finance of Union County
New Jersey For Exxon Project 1994 07/01/33 4.85 4,400,000 P1 A1+
2,500,000 Port Authority of New York & New Jersey - Series 1 08/01/28 4.95 2,500,000 VMIG-1 A1+
7,200,000 Port Authority of New York & New Jersey - Series 3
LOC Deutsche Bank A.G. 10/01/14 4.60 7,200,000 VMIG-1 A1+
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65,211,500 Total Other Variable Rate Demand Instruments 65,211,500
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<CAPTION>
Put Bonds (0.96%)
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<S> <C> <C> <C> <C> <C>
$ 1,000,000 Puerto Rico Industrial Medical & Environmental
LOC Morgan Guaranty Trust Company 12/01/95 4.35% $ 1,000,000 VMIG-1
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1,000,000 Total Put Bonds 1,000,000
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<CAPTION>
Tax Exempt Commercial Paper (12.68%)
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<S> <C> <C> <C> <C> <C> <C>
$ 2,000,000 NJ State TRAN 05/04/95 3.70% $ 2,000,000 P1 A1+
3,000,000 New Jersey State EDA Exempt Facility RB
(Keystone 1992 Project)
LOC Union Bank of Switzerland 07/06/95 3.95 3,000,000 VMIG-1 A1+
1,000,000 New Jersey State EDA Exempt Facility RB
Chambers Cogeneration
LOC Swiss Bank Corp. 05/02/95 3.90 1,000,000 VMIG-1 A1+
</TABLE>
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See Notes to Financial Statements.
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NEW JERSEY DAILY MUNICIPAL INCOME FUND, INC.,
STATEMENT OF NET ASSETS (CONTINUED)
APRIL 30, 1995
(UNAUDITED)
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<TABLE>
<CAPTION>
Ratings (a)
----------------
Face Maturity Value Standard
Amount Date Yield (Note 1) Moody's & Poor's
------ ---- ----- -------- ------- ------
Tax Exempt Commercial Paper (Continued)
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<S> <C> <C> <C> <C> <C> <C>
$ 3,000,000 New Jersey State EDA Exempt Facility RB
Chambers Cogeneration
LOC Swiss Bank Corp. 05/09/95 3.75% $ 3,000,000 VMIG-1 A1
2,105,000 Port Authority of New York & New Jersey 05/09/95 3.75 2,105,000 P1 A1+
685,000 Port Authority of New York & New Jersey 06/08/95 4.20 685,000 P1 A1+
1,370,000 Port Authority of New York & New Jersey 05/17/95 3.80 1,370,000 P1 A1+
------------ ------------
13,160,000 Total Tax Exempt Commercial Paper 13,160,000
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<CAPTION>
Variable Rate Demand Instruments - Participations (0.12%)
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<S> <C> <C> <C> <C> <C> <C>
$ 118,181 New Jersey State EDA EDB
(Thermwell Products Co. Inc. 1986 Project)
LOC Barclays Bank PLC 07/31/96 5.85% $ 118,181 P1 A1+
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118,181 Total Variable Rate Demand Instruments - Participations 118,181
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Total Investments (100.79%) (Cost $104,595,644+) 104,595,644
Liabilities in Excess of Cash and Other Assets (-.79%) ( 816,586)
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Net Assets (100.00%),103,782,942 Shares Outstanding (Note 3) $ 103,779,058
=============
Net Asset Value, offering and redemption price per share $ 1.00
=============
+ Aggregate cost for federal income tax purpose is identical.
</TABLE>
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See Notes to Financial Statements.
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FOOTNOTES:
(a) Unless the variable rate demand instruments are assigned their own ratings,
the ratings noted are those of the bank whose letter of credit secures such
instruments. P1 and A1+ are the highest ratings assigned for tax exempt
commercial paper.
(b) Securities that are not rated which the Fund's Board of Directors has
determined to be of comparable quality to the rated securities in which the
Fund invests.
(c) Securities payable on demand at par including accrued interest (usually
with seven days notice) and where 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.
<TABLE>
<CAPTION>
KEY:
<S> <C> <C> <C> <C> <C>
BAN = Bond Anticipation Note PCRB = Pollution Control Revenue Bond
CI = Certificate of Indebtedness RAN = Revenue Anticipation Note
CLN = Construction Loan Note RAW = Revenue Anticipation Warrant
EDA = Economic Development Authority RB = Revenue Bond
GAN = Grant Anticipation Note RN = Revenue Note
HRB = Hospital Revenue Bond TAN = Tax Anticipation Note
IDRB = Industrial Development Revenue Bond TLN = Tax Loan Note
IPCFA = Industrial Pollution Control Finance Authority TRAN = Tax and Revenue Anticipation Note
</TABLE>
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See Notes to Financial Statements.
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NEW JERSEY DAILY MUNICIPAL INCOME FUND, INC.
STATEMENT OF OPERATIONS
SIX MONTHS ENDED APRIL 30, 1995
(UNAUDITED)
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<TABLE>
<CAPTION>
INVESTMENT INCOME
<S> <C>
Income:
Interest................................................................................ $ 2,019,275
----------
Expenses: (Note 2)
Investment management fee............................................................... 161,855
Administration fee...................................................................... 107,903
Custodian, shareholder servicing and related shareholder expenses....................... 60,274
Legal, compliance and filing fees....................................................... 9,900
Audit and accounting.................................................................... 26,790
Amortization of organization expenses................................................... 5,187
Directors' fees......................................................................... 3,146
Other................................................................................... 2,413
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Total expenses........................................................................ 377,468
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Net investment income....................................................................... 1,641,807
----------
Increase in net assets from operations...................................................... $ 1,641,807
==========
</TABLE>
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See Notes to Financial Statements.
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NEW JERSEY DAILY MUNICIPAL INCOME FUND, INC.
STATEMENTS OF CHANGES IN NET ASSETS
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<TABLE>
<CAPTION>
Six Months
Ended Year
April 30, 1995 Ended
(Unaudited) October 31, 1994
--------- ----------------
INCREASE (DECREASE) IN NET ASSETS
<S> <C> <C>
Operations:
Net investment income......................................... $ 1,641,807 $ 1,950,607
Net realized gain (loss) on investments...................... -- ( 3,614)
------------- --------------
Increase in net assets from operations........................ 1,641,807 1,946,993
Dividends to shareholders from net investment income.............. ( 1,641,807)* ( 1,950,607)*
Capital share transactions (Note 3)............................... ( 2,150,201) 27,585,747
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Total increase (decrease)................................. ( 2,150,201) 27,582,133
Net assets:
Beginning of period.......................................... 105,929,259 78,347,126
-------------- --------------
End of period................................................. $ 103,779,058 $ 105,929,259
============== =============
* Designated as exempt-interest dividends for federal income tax purposes.
</TABLE>
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See Notes to Financial Statements.
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NEW JERSEY DAILY MUNICIPAL INCOME FUND, INC.
STATEMENTS OF CHANGES IN NET ASSETS
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1. Summary of Accounting Policies.
New Jersey Daily Municipal Income Fund, Inc. is a no-load, non-diversified,
open-end management investment company registered under the Investment Company
Act of 1940. 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) 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. The Manager is required to reimburse the
Fund for its expenses (exclusive of interest, taxes, brokerage, and
extraordinary expenses) to the extent that such expenses, including the
investment management and the shareholder servicing and administration fees, for
any fiscal year exceed the limits on investment company expenses prescribed by
any state in which the Fund's shares are qualified for sale. No such
reimbursement was required for the period ended April 30, 1995.
Pursuant to an Administrative Services Agreement, the Fund pays to the Manager
an annual fee of .20% of the Fund's average daily net assets.
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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 L.P. (the Distributor)
entered into a Distribution Agreement and a Shareholder Servicing Agreement. For
its services under the Shareholder Servicing Agreement, the Distributor receives
from the Fund a fee equal to .20% of the Fund's average daily net assets. There
were no additional expenses borne by the Fund pursuant to the Distribution Plan.
During the period April 30, 1995 the Distributor voluntarily waived shareholder
servicing fees of $107,903.
Fees are paid to Directors who are unaffiliated with the Manager on the basis of
$1,000 per annum plus $250 per meeting attended.
Included in the Statement of Operations under the caption "Custodian,
shareholder servicing and related shareholder expenses" are fees of $13,849 paid
to Fundtech Services L.P., an affiliate of the Manager as servicing agent for
the Fund.
3. Capital Stock.
At April 30, 1995, 20,000,000,000 shares of $.001 par value stock were
authorized and capital paid in amounted to $103,782,942. Transactions in capital
stock, all at $1.00 per share, were as follows:
<TABLE>
<CAPTION>
Six Months Year
Ended Ended
April 30, 1995 October 31, 1994
-------------- ----------------
<S> <C> <C>
Sold........................................ 106,397,146 190,710,019
Issued on reinvestment of dividends......... 1,333,940 1,655,365
Redeemed.................................... ( 109,881,287) ( 164,779,637)
------------- -------------
Net increase (decrease)..................... ( 2,150,201) 27,585,747
============= =============
</TABLE>
4. Sales of Securities.
Accumulated undistributed realized losses at April 30, 1995 amounted to $3,884.
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NEW JERSEY DAILY MUNICIPAL INCOME FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
(UNAUDITED)
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5. Concentration of Credit Risk.
The Fund invests primarily in obligations of political subdivisions of the State
of New Jersey and, is subject to the credit risk associated with the
non-performance of such issuers. Approximately 47% 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. Selected Financial Information.
<TABLE>
<CAPTION>
Six Months Year Year Year October 26, 1990
Ended Ended Ended Ended (Inception) to
April 30, 1995 October 31, 1994 October 31, 1993 October 31, 1992 October 31, 1991
-------------- ---------------- ---------------- ---------------- ----------------
Per Share Operating Performance:
(for a share outstanding throughout the period)
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $1.00 $1.00 $1.00 $1.00 $1.00
------ ------ ------ ------ -----
Net investment income.............. .015 0.020 0.020 0.030 0.042
Dividends from net investment income ( .015) ( 0.020) ( 0.020) ( 0.030) ( 0.042)
------ ------- ------- ------- ------
Net asset value, end of period..... $1.00 $1.00 $1.00 $1.00 $1.00
====== ====== ====== ====== ======
Total Return....................... 3.09% 2.03% 1.98% 3.01% 4.62%*
Ratios/Supplemental Data
Net assets, end of period (000)... $103,779 $105,929 $78,347 $46,374 $26,238
Ratios to average net assets:
Expenses....................... 0.90%*+ 0.66%+ 0.61%+ 0.42%+ 0.27%*+
Net investment income.......... 3.04%*+ 2.02%+ 1.95%+ 2.88%+ 4.32%*+
* Annualized
+ Net of management, administration and shareholder servicing fees waived
equivalent to .20%, .26%, .35%, .70% , and .70% of average net assets
respectively, plus expense reimbursement equivalent to .00%, .00%, .00%,
.04% and .53% of average net assets, respectively.
</TABLE>
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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.
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New Jersey Daily Municipal 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
Supervised Service Company
811 Main Street
Kansas City, Missouri 64105
