<PAGE>
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INSTITUTIONAL
DAILY
INCOME FUND
Annual Report
March 31, 1996
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<PAGE>
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INSTITUTIONAL 600 FIFTH AVENUE, NEW YORK, N.Y. 10020
DAILY INCOME FUND 212-830-5200
================================================================================
Dear Shareholder,
We are pleased to present the annual report of Institutional Daily Income Fund
for the period April 1, 1995 through March 31, 1996.
The Fund's Money Market Portfolio had 17 shareholders and net assets of
$127,287,025 as of March 31, 1996. The U.S. Treasury Portfolio had 5
shareholders and net assets of $291,747,446 as of March 31, 1996.
We thank you for your support and 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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INSTITUTIONAL DAILY INCOME FUND
MONEY MARKET PORTFOLIO
STATEMENT OF NET ASSETS
MARCH 31, 1996
================================================================================
<TABLE>
<CAPTION>
Face Maturity Value
Amount Date Yield (Note 1)
------ ---- ----- --------
Commercial Paper (36.95%)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
$ 1,000,000 Asset Securitization Corporation 04/18/96 5.44% $ 997,469
4,000,000 Asset Securitization Corporation 04/19/96 5.20 3,989,700
4,000,000 Bear Stearns Companies Incorporated 04/12/96 5.23 3,993,669
5,000,000 Ciesco 04/17/96 5.37 4,988,111
4,000,000 Compagnie Bancaire 04/24/96 5.37 3,986,456
5,000,000 Export Development Corporation 04/02/96 5.36 4,999,257
5,000,000 First Chicago Financial Corporation 04/17/96 5.38 4,988,089
5,000,000 Ford Credit Europe 05/09/96 5.30 4,972,239
4,200,000 Island Finance 06/13/96 5.36 4,154,947
5,000,000 Morgan Stanley Group, Incorporated 04/11/96 5.29 4,992,681
5,000,000 Receivables Capital Corporation 05/16/96 5.23 4,967,687
---------- ----------
47,200,000 Total Commercial Paper 47,030,305
---------- ----------
<CAPTION>
Bankers' Acceptances (7.77%)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
$ 5,000,000 NationsBank 06/03/96 5.35% $ 4,953,712
5,000,000 Trust Company Bank of Georgia 06/28/96 5.34 4,935,589
---------- ----------
10,000,000 Total Bankers' Acceptances 9,889,301
---------- ----------
<CAPTION>
Eurodollar Certificates of Deposit (6.28%)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
$ 4,000,000 Banque Nationale de Paris 05/07/96 5.15% $ 3,999,991
4,000,000 Commerzbank A.G. 05/07/96 5.11 4,000,039
---------- ----------
8,000,000 Total Eurodollar Certificates of Deposit 8,000,030
---------- ----------
<CAPTION>
Letter of Credit Commercial Paper (17.97%)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
$ 5,000,000 Eiger Capital Corporation
LOC Union Bank of Switzerland 04/03/96 5.25% $ 4,998,550
5,000,000 Enterprise Funding
LOC Bayerische Vereinsbank, A.G. 04/12/96 5.52 4,991,597
5,000,000 Guangong Enterprise Limited
LOC Credit Suisse 08/30/96 5.15 4,894,720
5,000,000 SCI Systems
LOC ABN AMRO Bank N.V. 04/22/96 5.31 4,984,600
3,000,000 Unibanco - Uniao de Bancos Grand Cayman
LOC Westdeutsche Landesbank Girozentrale 04/01/96 5.69 3,000,000
---------- ----------
23,000,000 Total Letter of Credit Commercial Paper 22,869,467
---------- ----------
<CAPTION>
Master Notes (3.14%)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
$ 4,000,000 Goldman Sachs 11/04/96 5.85% $ 4,000,000
---------- ----------
4,000,000 Total Master Notes 4,000,000
---------- ----------
</TABLE>
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See Notes to Financial Statements.
<PAGE>
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<TABLE>
<CAPTION>
Face Maturity Value
Amount Date Yield (Note 1)
------ ---- ----- --------
Medium Term Notes (1.73%)
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
$ 2,200,000 First U.S.A. Credit Master Trust - Series 1995-96
Class A (Steers) 12/10/96 5.33% $ 2,200,000
---------- ----------
2,200,000 Total Medium Term Notes 2,200,000
---------- ----------
<CAPTION>
Other Notes (15.21%)
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
$ 2,000,000 Batavia, NY BAN 10/04/96 5.13% $ 2,005,357
3,000,000 County of Passaic, NJ GO Refunding Bond - Series B
LOC Bank of Nova Scotia 09/01/20 (a) 5.50 3,000,000
1,000,000 Fresno County, CA TRAN 06/28/96 6.00 999,852
2,000,000 Mississippi Business Finance Corporation IDRB
(Howard Industries, Inc.) - Series 1995
LOC National Bank of Detroit 06/01/10 (a) 5.65 2,000,000
2,931,000 Rochester NY BAN 03/11/97 5.78 2,921,582
2,240,000 State of Connecticut RRA - Subseries 2
LOC National Westminster Bank PLC 11/15/96 (b) 6.00 2,240,000
2,200,000 State of Missouri HEFA (SSM Health Care System) Series 1995 - Series D
MBIA Insured 06/01/25 (a) 5.50 2,200,000
4,000,000 The City of New York Fiscal 1996 - Series A-2
LOC Societe Generale 08/14/96 5.20 4,000,000
---------- ----------
19,371,000 Total Other Notes 19,366,791
---------- ----------
<CAPTION>
Repurchase Agreements, Overnight (11.00%)
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
$ 14,000,000 Morgan Stanley & Co., Incorporated (Collateralized by:
$14,510,000, U.S. Treasury Bills, due 06/13/96) 04/01/96 5.38% $ 14,000,000
---------- -----------
14,000,000 Total Repurchase Agreements, Overnight 14,000,000
---------- -----------
Total Investments (100.05%) (Cost $127,355,894+) 127,355,894
Liabilities in Excess of Cash and Other Assets (-0.05%) ( 68,869)
-----------
Net Assets (100.00%) $127,287,025
===========
Net Asset Value, offering and redemption price per share:
Class A shares, 5,261 shares outstanding (Note 3) $ 1.00
===========
Class B shares, 127,281,764 shares outstanding (Note 3) $ 1.00
===========
+ Aggregate cost for federal income tax purposes is identical.
</TABLE>
FOOTNOTES:
(a) 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 letter of credit. The interest rates are
adjustable and are based on market rates. The rate shown is the rate in
effect at the date of this statement.
(b) The maturity date indicated for this security is the mandatory put date.
<TABLE>
<CAPTION>
KEYS:
<S> <C> <C> <C> <C> <C>
BAN = Bond Anticipation Note RRA = Resource Recovery Authority
GO = Government Obligation TRAN = Tax and Revenue Anticipation Note
IDRB = Industrial Development Revenue Bond
</TABLE>
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See Notes to Financial Statements.
<PAGE>
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INSTITUTIONAL DAILY INCOME FUND
U.S. TREASURY PORTFOLIO
STATEMENT OF NET ASSETS
MARCH 31, 1996
================================================================================
<TABLE>
<CAPTION>
Face Maturity Value
Amount Date Yield (Note 1)
------ ---- ----- --------
Repurchase Agreements, Overnight (61.01%)
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
$ 103,000,000 Morgan Stanley & Co., Incorporated (Collateralized
by $107,790,000, U.S. Treasury Bills, due 08/22/96) 04/01/96 5.38% $103,000,000
75,000,000 Morgan (JP) Securities, Inc. (Collateralized by $79,415,000,
U.S. Treasury Bills, due 12/12/96) 04/01/96 5.40 75,000,000
----------- -----------
178,000,000 Total Repurchase Agreements, Overnight 178,000,000
----------- -----------
<CAPTION>
U.S. Government Obligations (39.02%)
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
$ 10,000,000 U.S. Treasury Bills 04/04/96 5.33% $ 9,995,638
10,000,000 U.S. Treasury Bills 05/02/96 5.33 9,955,050
10,000,000 U.S. Treasury Bills 05/09/96 5.40 9,944,372
5,000,000 U.S. Treasury Bills 05/23/96 4.90 4,965,044
10,000,000 U.S. Treasury Bills 06/06/96 4.96 9,910,167
5,000,000 U.S. Treasury Bills 06/13/96 5.06 4,949,306
10,000,000 U.S. Treasury Bills 07/11/96 4.99 9,862,808
5,000,000 U.S. Treasury Bills 08/08/96 4.89 4,914,448
10,000,000 U.S. Treasury Bills 08/22/96 4.90 9,802,481
5,000,000 U.S. Treasury Bills 09/19/96 5.18 4,880,063
10,000,000 U.S. Treasury Bills 10/17/96 5.22 9,720,018
5,000,000 U.S. Treasury Bills 11/14/96 5.05 4,847,090
5,000,000 U.S. Treasury Notes 05/15/96 5.33 5,011,497
10,000,000 U.S. Treasury Notes 07/31/96 4.95 10,031,753
5,000,000 U.S. Treasury Notes 09/30/96 5.06 5,040,888
----------- -----------
115,000,000 Total U.S. Government Obligations 113,830,623
----------- -----------
Total Investments (100.03%) (Cost $291,830,623+) 291,830,623
Liabilities in Excess of Cash and Other Assets (-0.03%) ( 83,177)
-----------
Net Assets (100.00%), 291,747,446 Shares Outstanding(Note 3) $291,747,446
===========
Net Asset Value, offering and redemption price per share $ 1.00
===========
+ Aggregate cost for federal income tax purposes is identical.
</TABLE>
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See Notes to Financial Statements.
<PAGE>
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INSTITUTIONAL DAILY INCOME FUND
STATEMENTS OF OPERATIONS
===============================================================================
<TABLE>
<CAPTION>
Money Market U.S. Treasury
Portfolio Portfolio
-------------- ---------------
Year November 29, 1995
Ended (Commencement of
March 31, 1996 Operations) to
-------------- March 31, 1996
--------------
<S> <C> <C>
INVESTMENT INCOME
Income:
Interest................................................... $ 4,346,423 $ 4,922,698
------------------ -----------------
Expenses: (Note 2)
Investment management fee.................................. 60,384 71,723
Administration fee......................................... 37,740 44,827
Distribution fee (Class A)................................. 13 224,133
Custodian expenses......................................... 21,704 6,664
Shareholder servicing and related shareholder expenses..... 10,073 863
Legal, compliance and filing fees.......................... 55,117 84,901
Audit and accounting....................................... 37,164 19,409
Directors' fees ........................................... 7,258 3,000
Amortization of organization costs......................... 10,299 --
Miscellaneous.............................................. 1,475 546
------------------ -----------------
Total expenses......................................... 241,227 456,066
Less:
Reimbursement of expenses from Manager (Note 2)....... ( 24,276) --
Fees waived (Note 2).................................. ( 98,124) ( 72,950)
Expenses paid indirectly.............................. ( 28,313) ( 3,740)
------------------ -----------------
Net expenses................................... 90,514 379,376
------------------ -----------------
Net investment income.......................................... 4,255,909 4,543,322
------------------ -----------------
<CAPTION>
REALIZED GAIN (LOSS) ON INVESTMENTS
<S> <C> <C>
Net realized gain (loss) on investments........................ 847 --
------------------ -----------------
Increase in net assets from operations......................... $ 4,256,756 $ 4,543,322
================== =================
</TABLE>
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See Notes to Financial Statements.
<PAGE>
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INSTITUTIONAL DAILY INCOME FUND
STATEMENTS OF CHANGES IN NET ASSETS
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<TABLE>
<CAPTION>
INCREASE (DECREASE) IN NET ASSETS
Money Market Portfolio U.S. Treasury Portfolio
---------------------------------------------- ----------------------------
April 14, 1994 November 29, 1995
Year (Commencement of Operations) (Commencement of Operations)
Ended to to
March 31, 1996 March 31, 1995 March 31, 1996
-------------- -------------- --------------
<S> <C> <C> <C>
Operations:
Net investment income.................. $ 4,255,909 $ 1,961,158 $ 4,543,322
Net realized gain (loss) on investments 847 -- --
--------------- --------------- ---------------
Increase in net assets from operations. 4,256,756 1,961,158 4,543,322
Dividends to shareholders:
Net investment income
Class A.............................. ( 276) -- ( 4,543,322)
Class B.............................. ( 4,255,633) ( 1,961,158) --
Net realized gain on investments
Class A.............................. -- -- --
Class B.............................. ( 847) -- --
Capital share transactions (Note 3):
Class A.............................. 5,261 -- 291,747,446
Class B.............................. 91,424,998 35,756,766 --
--------------- ------------- ---------------
Total increase (decrease)............ 91,430,259 35,756,766 291,747,446
Net assets:
Beginning of period................. 35,856,766 100,000 -0-
--------------- --------------- -----------------
End of period........................ $ 127,287,025 $ 35,856,766 $ 291,747,446
=============== =============== =================
</TABLE>
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See Notes to Financial Statements.
<PAGE>
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INSTITUTIONAL DAILY INCOME FUND
NOTES TO FINANCIAL STATEMENTS
===============================================================================
1. Summary of Accounting Policies
Institutional Daily Income Fund (the "Fund") is a no-load, diversified, open-end
management investment company registered under the Investment Company Act of
1940. The Fund offers investors three managed portfolios of money market
instruments: U.S. Government Portfolio, Money Market Portfolio and Municipal
Portfolio. Presently only the Money Market Portfolio and U.S. Treasury Portfolio
have been activated. Each Portfolio has two classes of stock authorized, Class A
and Class B. The Class A shares of each Portfolio are subject to a service fee
pursuant to each Portfolio's distribution and service plan. The Class B shares
are not subject to a service fee. In all other respects, the Class A and Class B
shares represent the same interest in the income and assets of each respective
Portfolio. Distribution of Class A shares of the Money Market Portfolio
commenced April 6, 1995. All Fund shares outstanding before April 6, 1995 were
designated as Class B shares. Distribution of Class A shares of the U.S.
Treasury Portfolio commenced November 29, 1995. At March 31, 1996 there were no
Class B shares outstanding in the U.S. Treasury Portfolio.
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.
b) Federal Income Taxes -
It is the policy of each Portfolio to comply with the requirements of the
Internal Revenue Code applicable to regulated investment companies and to
distribute all of its taxable income to its shareholders. Therefore, no
provision for federal income tax is required.
c) Dividends and Distributions -
Dividends from investment income (including net realized short-term capital
gains) are declared daily and paid monthly. Capital gains distributions if
any, will be made at least annually and in no event later than sixty days
after the end of the Fund's fiscal year.
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. It is the Fund's
policy to take possession of securities as collateral under repurchase
agreements and to determine on a daily basis that the value of such
securities are sufficient to cover the value of the repurchase agreements.
2. Investment Management Fees and Other Transactions with Affiliates
Underthe Investment Management Contract, each Portfolio pays an investment
management fee to Reich & Tang Asset Management, L.P. (the Manager) at the
annual rate of .08% of the Portfolios 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
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<PAGE>
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INSTITUTIONAL DAILY INCOME FUND
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
===============================================================================
2. Investment Management Fees and Other Transactions with Affiliates (Continued)
expenses, including the investment management 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.
Pursuant to an Administrative Services Contract each Portfolio pays to the
Manager an annual fee of .05% of the Portfolio's average daily net assets.
The Manager is a wholly-owned subsidiary of New England Investment Companies,
L.P. ("NEIC"). On August 16, 1995, New England Mutual Life Insurance Company
("The New England"), the owner of NEIC's general partner and a majority owner of
the limited partnership interest in NEIC, entered into an agreement to merge
with Metropolitan Life Insurance Company ("MetLife"), with MetLife to be the
survivor of the merger. The merger is subject to several conditions, including
the required approval, by shareholders of the Fund of a proposed new investment
advisory agreement, intended to take effect at the time of the merger. The new
agreement will be substantially similar to the existing agreement.
Pursuant to a distribution and service 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 (with respect to the Class A shares of the Fund only). For
its services under the Shareholder Servicing Agreement, the Distributor receives
from each Portfolio with respect only to the Class A shares, a service fee equal
to .25% of 1% per annum of each Portfolio's average daily net assets.
The Manager has voluntarily agreed to waive its management and administrative
services fees in whole or in part and reimburse each Portfolio its operating
expenses to the extent that (i) such Portfolio's Class A shares total operating
expenses exceed .40%, .425% and .45% of the Class A shares average daily net
assets during the first, second, and third fiscal years of the Fund,
respectively, and (ii) such Portfolio's Class B shares total operating expenses
exceed .15%, .175%, and .20% of the Class B shares average daily net assets
during the first, second, and third fiscal years of the Fund.
During the period ended March 31, 1996, the Manager and Distributor voluntarily
waived investment management fees and administration fees of $60,384 and
$37,740, respectively, for the Money Market Portfolio and $36,843 and $36,107,
respectively, for the U.S. Treasury Portfolio. In addition, although not
required to do so, the Manager has agreed to reimburse expenses amounting to
$24,276 for the Money Market Portfolio.
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 Statements of Operations under the caption "Custodian expenses"
and "Shareholder servicing and related shareholder expenses" are expense offsets
of $28,313 and $3,740 for the Money Market Portfolio and U.S. Treasury
Portfolio, respectively.
3. Transactions in Shares of Beneficial Interest
At March 31, 1996, an unlimited number of shares of beneficial interest were
authorized and capital paid in for the Money Market Portfolio and the U.S.
Treasury Portfolio amounted to $127,287,025 and $291,747,446, respectively.
Transactions in shares of beneficial interest, all at $1.00 per share, were as
follows:
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<PAGE>
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================================================================================
<TABLE>
<CAPTION>
3. Transactions in Shares of Beneficial Interest (Continued)
Money Market Portfolio U.S. Treasury Portfolio
-------------------------------------------------- --------------------------------
April 6, 1995 November 29, 1995
(Commencement of Operations) to (Commencement of Operations) to
March 31, 1996 March 31, 1996
-------------- --------------
Class A
<S> <C> <C>
Sold............................... $ 5,009 $ 439,583,631
Issued on reinvestment of dividends 252 4,016,345
Redeemed........................... ( -- ) ( 151,852,530)
------------ ------------
Net increase (decrease)............ 5,261 291,747,446
============ ============
<CAPTION>
Year April 14, 1994
Ended (Commencement of Operations) to
March 31, 1996 March 31, 1995
-------------- --------------
Class B
<S> <C> <C>
Sold............................... $ 553,221,220 $ 301,915,598
Issued on reinvestment of dividends 2,877,254 1,531,019
Redeemed........................... ( 464,673,476) ( 267,689,851)
------------ ------------
Net increase (decrease)............ 91,424,998 35,756,766
============ ============
</TABLE>
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<PAGE>
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INSTITUTIONAL DAILY INCOME FUND
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
================================================================================
<TABLE>
<CAPTION>
4. Selected Financial Information
Money Market Portfolio U.S. Treasury Portfolio
--------------------------------------------- -----------------------
Class A** Class B Class A
--------------- --------------------------- -------------------
For the April 14,1994 November 29, 1995
Period (Commencement (Commencement
Ended of Operations) to of Operations) to
March 31, 1996 March 31, 1995 March 31, 1996
----------------------------- -------------- --------------
Per Share Operating Performance:
(For a share outstanding throughout the period)
<S> <C> <C> <C> <C>
Net asset value, beginning of period...... $ 1.00 $ 1.00 $ 1.00 $ 1.00
--------- --------- --------- ----------
Income from investment operations:
Net investment income..................... 0.054 0.057 0.045 .017
Less distributions:
Dividends from net investment income...... ( 0.054) ( 0.057) ( 0.045) ( .017)
--------- --------- --------- ----------
Net asset value, end of period............ $ 1.00 $ 1.00 $ 1.00 $ 1.00
========= ========== ========= ==========
Total Return.............................. 5.58% 5.85% 5.16%* 5.18%*
Ratios/Supplemental Data
Net assets, end of period (000)........... $ 5 $ 127,282 $ 35,857 $ 291,747
Ratios to average net assets:
Expenses (includes expenses paid
indirectly)....................... .41%+ .16%+ .02%*+ .43%*++
Net investment income.................. 5.46%+ 5.64%+ 5.14%*+ 5.07%*++
* Annualized
** Class A commenced operations on April 6, 1995.
+ Net of management and administration fees waived equivalent to .13% for
1996 and 1995 of average net assets. Expenses reimbursed equivalent to .03%
and .25% for 1996 and 1995, respectively, of average net assets.
++ Net of management and administration fees waived equivalent to 0.08% of
average net assets.
</TABLE>
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<PAGE>
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INSTITUTIONAL DAILY INCOME FUND
INDEPENDENT AUDITOR'S REPORT
================================================================================
The Board of Trustees and Shareholders
Institutional Daily Income Fund
We have audited the accompanying statements of net assets of the Money Market
Portfolio and the U.S. Treasury Portfolio of Institutional Daily Income Fund as
of March 31, 1996, and the related statements of operations, the statements of
changes in net assets, and the selected financial information for each of the
periods indicated in the accompanying financial statements. 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 March 31, 1996, 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 the Money Market Portfolio and the U.S. Treasury Portfolio of
Institutional Daily Income Fund as of March 31, 1996, 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
April 29, 1996
New York, New York
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<PAGE>
- --------------------------------------------------------------------------------
This report is submitted for the general information of the shareholders of the
Fund. It is not authorized for distribution to prospective investors in the Fund
unless preceded or accompanied by an effective prospectus, which includes
information regarding the Fund's objectives and policies, experience of its
management, marketability of shares, and other information.
- --------------------------------------------------------------------------------
Institutional Daily Income Fund
600 Fifth Avenue
New York, New York 10020
Manager
New England Investment Companies, 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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