<PAGE>
- --------------------------------------------------------------------------------
NEW JERSEY
DAILY MUNICIPAL 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 Jersey Daily Municipal Income
Fund, Inc. for the year ended October 31, 1997. The Fund had net assets of
$217,844,166 and 1,939 active shareholders as of October 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
<PAGE>
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NEW JERSEY DAILY MUNICIPAL INCOME FUND, INC.
STATEMENT OF NET ASSETS
OCTOBER 31, 1997
================================================================================
<TABLE>
<CAPTION>
Ratings (a)
----------------
Face Maturity Value Standard
Amount Date Yield (Note 1) Moody's & Poor's
------ ---- ----- -------- ------- ------
Other Tax Exempt Investments (19.95%)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$ 1,732,000 Berkeley Heights Township, NJ BAN (b) 11/07/97 3.65% $ 1,732,007
3,000,000 Board of Education, Pleasantville, NJ BAN 08/28/98 3.82 3,008,940 SP-1+
2,000,000 Clifton, NJ BAN (b) 03/12/98 3.68 2,001,838
2,315,000 Collingwood, NJ BAN (b) 01/04/98 3.78 2,315,569
7,500,000 County of Essex, NJ BAN 08/07/98 3.86 7,518,403 MIG-1
2,280,000 Fort Lee, NJ BAN (b) 05/22/98 3.85 2,283,598
4,000,000 Jersey City, NJ BAN 02/05/98 3.74 4,000,587 SP-1
2,000,000 Township of Montclair, NJ BAN (b) 01/23/98 3.55 2,001,713
3,000,000 Montgomery Township, County of Somerset, NJ BAN (b) 12/12/97 3.47 3,001,485
940,000 Montgomery Township, County of Somerset, NJ BAN (b) 04/23/98 3.95 941,055
5,000,000 Township of Bloomfield, County of Essex, NJ BAN (b) 06/03/98 3.85 5,002,767
1,932,550 Township of Hopewell, County of Mercer, NJ BAN (b) 08/24/98 3.85 1,935,906
1,750,000 Township of Nutley, County of Essex, NJ BAN (b) 07/31/98 3.81 1,751,864
2,053,000 Village Ridgefield Park, County of Bergen, NJ BAN (b) 09/24/98 3.90 2,058,261
3,900,000 Wall Township, NJ BAN (b) 06/25/98 3.80 3,909,628
----------- -----------
43,402,550 Total Other Tax Exempt Investments 43,463,621
----------- -----------
<CAPTION>
Other Variable Rate Demand Instruments (c) (55.83%)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$ 4,900,000 Camden County Improvement Authority RB
(Parkview Redevelopment Housing Proj.) - Series 1996
LOC General Electric Capital Corporation 07/01/26 3.60% $ 4,900,000 A1+
8,430,000 Clipper New Jersey Housing and Mortgage
Finance Agency Home Buyer RB - Series 1996 10/01/21 3.64 8,430,000 VMIG-1
1,500,000 Glouchester County, NJ PCFA (Monsanto Company Project) 12/01/22 3.45 1,500,000 P1 A1
4,700,000 Mercer County, NJ
Improvement Authority Pooled Government Loan Program Bond
LOC Credit Suisse First Boston 11/01/98 3.35 4,700,000 VMIG-1 A1+
1,500,000 NJ EDA Natural Gas Facilities Refunding RB - Series 1997 A
AMBAC Insured 09/01/27 3.50 1,500,000 VMIG-1 A1+
3,200,000 New Jersey EDA
(400 International Drive Rockefeller Corporation) (b)
LOC Morgan Guaranty Trust Company 09/01/05 3.80 3,200,000
4,000,000 New Jersey EDA
(Pennwell Holdings LLC Project) - Series 1996 (b)
LOC First Union National Bank 12/01/16 3.55 4,000,000
700,000 New Jersey EDA Dock Facility Refunding RB
(Bayonne/IMTT-Bayonne Project)
LOC First National Bank of Chicago 12/01/27 3.85 700,000 VMIG-1
</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 & Poor's
------ ---- ----- -------- ------- ------
Other Variable Rate Demand Instruments (c) (Continued)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$ 2,800,000 New Jersey EDA Dock Facility Refunding RB
(Bayonne/IMTT-Bayonne Project) - Series 1993B
LOC ABN AMRO Bank N.V. 12/01/27 3.80% $ 2,800,000 VMIG-1
1,895,000 New Jersey EDA Economic Growth Bonds - Series 1994A
LOC National Westminster Bank PLC 08/01/14 3.60 1,895,000 P1 A1+
10,000,000 New Jersey EDA First Mortgage RB - Series 1996B
(Wencharter Garden at Ward Homestead Project)
LOC Banque Paribas 04/01/06 3.35 10,000,000 VMIG-1 A2
3,000,000 New Jersey EDA IDRB (Kooltronic Incorporated Project) (b)
LOC First Union National Bank 12/01/08 3.55 3,000,000
950,000 New Jersey EDA Manufacturing Facility RB
(Commerce Center Project)
LOC Bank of America 08/01/17 3.80 950,000 A1
2,450,000 New Jersey EDA Manufacturing Facility RB
(Commerce Center Project)
LOC Bank of America 08/01/17 3.80 2,450,000 A1
3,000,000 New Jersey EDA PCRB
(Public Service Electric & Gas) - Series A
MBIA Insured 09/01/12 3.35 3,000,000 VMIG-1
2,000,000 New Jersey EDA School RB (Peddie School) - Series 1994B 02/01/19 3.45 2,000,000 A1
1,000,000 New Jersey EDA VRD RB Sewage Facility
LOC PNC Bank 07/01/01 3.80 1,000,000 P1 A1
1,000,000 New Jersey EDA VRRB (Peddie School) - Series 1996 02/01/26 3.45 1,000,000 A1
2,000,000 New Jersey EDA Water Facility
(Elizabethtown Water Co.)
AMBAC Insured 06/01/27 3.30 2,000,000 VMIG-1 A1+
5,000,000 New Jersey Economic Development Authority RB
(Hoffman LA Roche Inc. Project)
LOC Bayerische Landesbank Girozentrale 11/01/11 3.85 5,000,000 Aaa
2,600,000 New Jersey Sports & Exposition Authority SCB - Series C
MBIA Insured 09/01/24 3.40 2,600,000 VMIG-1 A1+
1,700,000 New Jersey State Dock Facility
(Bayonne/IMTT-Bayonne Project)
LOC Rabobank Nederland 12/01/27 3.80 1,700,000 VMIG-1
2,085,000 New Jersey State EDA (Block Drug Corporation) - Series A00
LOC Trust Co. Bank of Atlanta 06/01/99 3.70 2,085,000 P1
1,650,000 New Jersey State EDA (Block Drug Corporation) - Series B
LOC Trust Co. Bank of Atlanta 06/01/99 3.70 1,650,000 P1
3,250,000 New Jersey State EDA (Campus 130 Association)
LOC The Bank of New York 12/01/11 3.95 3,250,000 P1 A1
</TABLE>
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See Notes to Financial Statements.
<PAGE>
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NEW JERSEY DAILY MUNICIPAL INCOME FUND, INC.
STATEMENT OF NET ASSETS (CONTINUED)
OCTOBER 31, 1997
================================================================================
<TABLE>
<CAPTION>
Ratings (a)
----------------
Face Maturity Value Standard
Amount Date Yield (Note 1) Moody's & Poor's
------ ---- ----- -------- ------- ------
Other Variable Rate Demand Instruments (c) (Continued)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$ 1,000,000 New Jersey State EDA (Church & Dwight Corp.) - Series 1991
LOC Bank of Nova Scotia 12/01/08 3.50% $ 1,000,000 P1
2,600,000 New Jersey State EDA (Curtiss-Wright Flight Systems)
LOC Bank of Nova Scotia 01/01/02 3.35 2,600,000 A1+
1,791,500 New Jersey State EDA (Hartz & Rex Associates)
LOC Citibank 01/01/12 3.78 1,791,500 Aa3
2,725,000 New Jersey State EDA Industrial & Economic Development
(FMC Corporation)
LOC Wachovia Bank & Trust Co., N.A. 06/01/22 3.65 2,725,000 P1 A2
2,890,000 New Jersey State EDA STPCO II
LOC Barclays Bank PLC 07/01/06 3.30 2,890,000 A1+
21,200,000 New Jersey State Turnpike Authority - Series D 01/01/18 3.25 21,200,000 VMIG-1 A1+
6,700,000 Port Authority of New York & New Jersey Special Obligation RB
(Versatile Structure) 08/01/28 4.25 6,700,000 VMIG-1 A1+
5,800,000 Port Authority of New York & New Jersey Special Obligation RB
(Versatile Structure) 04/01/24 4.10 5,800,000 VMIG-1 A1+
1,600,000 Union County, NJ PCFA (Exxon Project) - Series 1994 07/01/33 3.80 1,600,000 VMIG-1 A1+
------------ ------------
121,616,500 Total Other Variable Rate Demand Instruments 121,616,500
------------ ------------
<CAPTION>
Put Bonds (d) (3.17%)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$ 2,500,000 New Jersey EDA Thermal Energy Facility RB (b) 11/13/97 3.85% $ 2,500,000
2,500,000 Puerto Rico Industrial Medical & Environmental PCFA RB
(Reynolds Metals Corporation)
LOC ABN AMRO Bank N.V. 09/01/98 3.80 2,500,000 VMIG-1 A1+
1,900,000 Puerto Rico Industrial Medical & Environmental PCRB
(Key Pharmaceuticals) 12/01/97 3.75 1,900,000 VMIG-1
------------ ------------
6,900,000 Total Put Bonds 6,900,000
------------ ------------
<CAPTION>
Tax Exempt Commercial Paper (d) (20.43%)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$ 3,000,000 NJ EDA Exempt Facility RB
(Chambers Co-Generation Ltd. Partnership - 1991 Project)
LOC Credit Locale de France 01/12/98 3.55% $ 3,000,000 VMIG-1 A1+
1,000,000 NJ EDA Exempt Facility RB
(Chambers Co-Generation Ltd. Partnership - 1991 Project)
LOC Credit Locale de France 12/04/97 3.60 1,000,000 VMIG-1 A1+
2,700,000 NJ EDA Exempt Facility RB
(Logan 1992 Project)
LOC Union Bank of Switzerland 01/06/98 3.65 2,700,000 VMIG-1 A1+
8,000,000 NJ EDA Exempt Facility RB
(Keystone 1992 Project)
LOC Union Bank of Switzerland 02/11/98 3.60 8,000,000 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 & Poor's
------ ---- ----- -------- ------- ------
Tax Exempt Commercial Paper (d) (Continued)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$ 3,000,000 NJ EDA Exempt Facility RB
(Keystone 1992 Project)
LOC Union Bank of Switzerland 11/19/97 3.65% $ 3,000,000 VMIG-1 A1+
1,500,000 NJ EDA Exempt Facility RB
(Keystone 1992 Project)
LOC Union Bank of Switzerland 12/01/97 3.60 1,500,000 VMIG-1 A1+
2,000,000 Puerto Rico Government Development Bank 11/03/97 3.55 2,000,000 A1+
3,000,000 Puerto Rico Government Development Bank 11/10/97 3.55 3,000,000 A1+
7,000,000 Puerto Rico Government Development Bank 11/03/97 3.40 7,000,000 A1+
3,306,000 Puerto Rico Government Development Bank 11/06/97 3.45 3,306,000 A1+
10,000,000 State of NJ TRAN 01/13/98 3.70 10,000,000 P1 A1+
------------ ------------
44,506,000 Total Tax Exempt Commercial Paper 44,506,000
------------ ------------
Total Investments (99.38%) (Cost $216,486,121+) 216,486,121
Cash and Other Assets, in Excess of Liabilities (0.62%) 1,358,045
------------
Net Assets (100.00%) $217,844,166
============
Net Assets Value, offering and redemption price per share:
Class A Shares, 217,544,652 Shares Outstanding (Note 3) $ 1.00
============
Class B Shares, 315,555 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 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 are payable on demand at par including accrued interest (usually
with seven days notice) and where applicable 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.
(d) The maturity date indicated is the next put date.
<TABLE>
<CAPTION>
KEY:
<S> <C> <C> <C> <C> <C>
BAN = Bond Anticipation Note PCRB = Pollution Control Revenue Bond
EDA = Economic Development Authority RB = Revenue Bond
IDRB = Industrial Development Revenue Bond VRD = Variable Rate Demand
PCFA = Pollution Control Finance Authority VRRB = Variable Rate Revenue Bond
TRAN = Tax and Revenue Anticipation Note
</TABLE>
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See Notes to Financial Statements.
<PAGE>
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NEW JERSEY DAILY MUNICIPAL INCOME FUND, INC.
STATEMENT OF OPERATIONS
YEAR ENDED OCTOBER 31, 1997
================================================================================
<TABLE>
<CAPTION>
INVESTMENT INCOME
<S> <C>
Income:
Interest................................................................................ $ 6,721,152
------------
Expenses: (Note 2)
Investment management fee............................................................... 572,090
Administration fee...................................................................... 400,463
Shareholder servicing fee (Class A)..................................................... 380,685
Custodian fee........................................................................... 26,391
Shareholder servicing and related shareholder expenses.................................. 131,217
Legal, compliance and filing fees....................................................... 42,837
Audit and accounting.................................................................... 71,660
Directors' fees......................................................................... 6,344
Other................................................................................... 9,646
------------
Total expenses........................................................................ 1,641,333
Less: Expenses paid indirectly (Note 2)............................................... ( 994)
------------
Net expenses.......................................................................... 1,640,339
------------
Net investment income....................................................................... 5,080,813
REALIZED GAIN (LOSS) ON INVESTMENTS
Net realized gain (loss) on investments..................................................... -0-
------------
Increase in net assets from operations...................................................... $ 5,080,813
============
</TABLE>
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See Notes to Financial Statements.
<PAGE>
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NEW JERSEY DAILY MUNICIPAL INCOME FUND, INC.
STATEMENTS OF CHANGES IN NET ASSETS
YEARS ENDED OCTOBER 31, 1997 AND 1996
================================================================================
<TABLE>
<CAPTION>
1997 1996
--------------- -------------
INCREASE (DECREASE) IN NET ASSETS
<S> <C> <C>
Operations:
Net investment income......................................... $ 5,080,813 $ 4,197,955
Net realized gain (loss) on investments....................... -0- ( 13,169)
--------------- -------------
Increase in net assets from operations........................ 5,080,813 4,184,786
Dividends to shareholders from net investment income:
Class A................................................... ( 5,070,619)* ( 4,019,301)*
Class B................................................... ( 10,194)* ( 178,654)*
Capital share transactions (Note 3):
Class A................................................... 66,108,849 21,305,371
Class B................................................... ( 51,660) 367,215
-------------- -------------
Total increase (decrease)................................. 66,057,189 21,659,417
Net assets:
Beginning of year............................................. 151,786,977 130,127,560
--------------- -------------
End of year................................................... $ 217,844,166 $ 151,786,977
=============== =============
* Designated as exempt-interest dividends for federal income tax purposes.
</TABLE>
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
<PAGE>
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NEW JERSEY DAILY MUNICIPAL INCOME FUND, INC.
NOTES TO FINANCIAL STATEMENTS
================================================================================
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. The Fund is a short term, tax exempt money market fund. The Fund
has two classes of stock authorized, Class A and Class B. The Class A shares are
subject to a service fee pursuant to the Distribution 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 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 for Class B
shares commenced on February 9, 1996 and all Fund shares outstanding before
February 9, 1996 were designated as Class A shares. The Fund's financial
statements are prepared in accordance with generally accepted accounting
principles for investment companies as follows:
a) Valuation of Securities -
Investments are valued at amortized cost. Under this valuation method, a
portfolio instrument is valued at cost and any discount or premium is
amortized on a constant basis to the maturity of the instrument. The
maturity of variable rate demand instruments is deemed to be the longer of
the period required before the Fund is entitled to receive payment of the
principal amount or the period remaining until the next interest rate
adjustment.
b) Federal Income Taxes -
It is the Fund's policy to comply with the requirements of the Internal
Revenue Code applicable to regulated investment companies and to distribute
all of its tax exempt and taxable income to its shareholders. Therefore, no
provision for federal income tax is required.
c) Dividends and Distributions -
Dividends from investment income (excluding capital gains and losses, if
any, and amortization of market discount) are declared daily and paid
monthly. Distributions of net capital gains, if any, realized on sales of
investments are made after the close of the Fund's fiscal year, as declared
by the Fund's Board of Directors.
d) Use of Estimates -
The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates and
assumptions that effect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the
financial statements and the reported amounts of increases and decreases in
net assets from operations during the reporting period. Actual results
could differ from those estimates.
e) General -
Securities transactions are recorded on a trade date basis. Interest income
is accrued as earned. Realized gains and losses from securities
transactions are recorded on the identified cost basis.
2. Investment Management Fees and Other Transactions with Affiliates.
Under the Investment Management Contract, the Fund pays an investment management
fee to Reich & Tang Asset Management L.P. (Manager), at the annual rate of .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.
- --------------------------------------------------------------------------------
<PAGE>
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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) 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.
Included in the statement of operations under the captions "Shareholder
servicing and related shareholder expenses" are expense offsets of $994.
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 "Shareholder servicing
and related shareholder expenses" are fees of $94,708 paid to Reich & Tang
Services L.P., an affiliate of the Manager as servicing agent for the Fund.
3.Capital Stock.
At October 31, 1997, 20,000,000,000 shares of $.001 par value stock were
authorized and capital paid in amounted to $217,860,207. Transactions in capital
stock, all at $1.00 per share, were as follows:
<TABLE>
<CAPTION>
Year Year
Class A Ended Ended
- ------- October 31, 1997 October 31, 1996
---------------- ----------------
<S> <C> <C>
Sold................................... 453,793,587 361,208,660
Issued on reinvestment of dividends.... 4,856,342 3,618,935
Redeemed............................... ( 392,541,080) ( 343,522,224)
------------- ------------
Net increase (decrease)................ 66,108,849 21,305,371
============= ============
<CAPTION>
Year February 9, 1996
Class B Ended (Commencement of Offering)
- ------- October 31, 1997 to October 31, 1996
---------------- -------------------
Sold................................... 22,635 31,823,128
Issued on reinvestment of dividends.... 10,117 1,413
Redeemed............................... ( 84,412) ( 31,457,326)
------------- ------------
Net increase (decrease)................ ( 51,660) 367,215
============= ============
</TABLE>
4. Sales of Securities.
Accumulated undistributed net realized losses at October 31, 1997 amounted to
$16,041. This amount represents tax basis capital losses which may be carried
forward to offset future capital gains. Such losses expire October 31, 1999
through October 31, 2004.
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 40% 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.
- --------------------------------------------------------------------------------
<PAGE>
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NEW JERSEY DAILY MUNICIPAL INCOME FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
================================================================================
6. Financial Highlights.
<TABLE>
<CAPTION>
Year Ended
Class A October 31,
- ------- ------------------------------------------------------------------
1997 1996 1995 1994 1993
--------- -------- --------- --------- --------
<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..................... 0.027 0.027 0.030 0.020 0.020
Less distributions:
Dividends from net investment income...... ( 0.027) ( 0.027) ( 0.030) ( 0.020) ( 0.020)
-------- ------- ------- ------- --------
Net asset value, end of year................ $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
========= ======== ======== ========= =========
Total Return................................ 2.70% 2.69% 3.08% 2.03% 1.98%
Ratios/Supplemental Data
Net assets, end of year (000)............... $ 217,529 $ 151,421 $ 130,128 $ 105,929 $ 78,347
Ratios to average net assets:
Expenses.................................. 0.86%+ 0.78%+ 0.72% 0.66% 0.61%
Net investment income..................... 2.66% 2.65% 3.02% 2.02% 1.95%
Management, administration & shareholder
servicing fee waived ................. -- 0.06% 0.18% 0.26% 0.35%
Year February 9, 1996
Class B Ended (Commencement of offering) to
- ------- October 31, 1997 October 31, 1996
---------------- ----------------
<S> <C> <C>
Per Share Operating Performance:
(for a share outstanding throughout the period)
Net asset value, beginning of period............ $ 1.00 $ 1.00
--------- ---------
Income from investment operations:
Net investment income......................... 0.029 0.020
Less distributions:
Dividends from net investment income.......... ( 0.029 ) ( 0.020)
-------- --------
Net asset value, end of period.................. $ 1.00 $ 1.00
========= =========
Total Return.................................... 2.91% 2.77%*
Ratios/Supplemental Data
Net assets, end of period (000)................. $ 315 $ 366
Ratios to average net assets:
Expenses...................................... 0.65%+ 0.61%*+
Net investment income......................... 2.88% 2.72%*
Management & administration fee waived........ -- --
* Annualized
+ Includes expense offsets.
</TABLE>
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<PAGE>
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NEW JERSEY DAILY MUNICIPAL INCOME FUND, INC.
INDEPENDENT AUDITOR'S REPORT
================================================================================
The Board of Directors and Shareholders
New Jersey Daily Municipal Income Fund, Inc.
We have audited the accompanying statement of net assets of New Jersey Daily
Municipal Income Fund, Inc. as of October 31, 1997, and the related statement of
operations for the year then ended, the statements of changes in net assets for
each of the two years in the period then ended and the financial highlights for
each of the five years in the period then ended. These financial statements and
financial highlights are the responsibility of the Fund's management. Our
responsibility is to express an opinion on these financial statements and
financial highlights 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 financial
highlights 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
October 31, 1997, by correspondence with the custodian and brokers. 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 financial Highlights referred to
above present fairly, in all material respects, the financial position of New
Jersey Daily Municipal Income Fund, Inc. as of October 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
November 26, 1997
- --------------------------------------------------------------------------------
<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.
- ------------------------------------------------------
<TABLE>
<CAPTION>
<S> <C> <C>
NEW JERSEY
DAILY
MUNICIPAL
INCOME
FUND, INC.
Annual Report
October 31, 1997
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
801 Pennsylvania
Kansas City, Missouri 64105-1716
Transfer Agent & Dividend
Disbursing Agent
Reich & Tang Services L.P.
600 Fifth Avenue
New York, New York 10020
- --------------------------------------------------------------------------------
</TABLE>
<PAGE>
