<PAGE>
- --------------------------------------------------------------------------------
INSTITUTIONAL
DAILY
INCOME FUND
Semi-Annual Report
September 30, 1996
(Unaudited)
- --------------------------------------------------------------------------------
<PAGE>
- --------------------------------------------------------------------------------
INSTITUTIONAL
DAILY INCOME FUND
600 FIFTH AVENUE, NEW YORK, N.Y. 10020
212-830-5200
================================================================================
Dear Shareholder,
We are pleased to present the semi-annual report of Institutional Daily Income
Fund for the period April 1, 1996 through September 30, 1996.
The Fund's Money Market Portfolio had 21 shareholders and net assets of
$163,375,330 as of September 30, 1996. The U.S. Treasury Portfolio had 15
shareholders and net assets of $256,973,941 as of September 30, 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
- --------------------------------------------------------------------------------
<PAGE>
- --------------------------------------------------------------------------------
INSTITUTIONAL DAILY INCOME FUND
MONEY MARKET PORTFOLIO
STATEMENT OF NET ASSETS
SEPTEMBER 30, 1996
(UNAUDITED)
================================================================================
<TABLE>
<CAPTION>
Face Maturity Value
Amount Date Yield (Note 1)
------ ---- ----- ------
Commercial Paper (42.59%)
- ------------------------------------------------------------------------------------------------------------------------------------
<C> <C> <C> <C> <C>
$ 7,000,000 ABN AMRO 11/12/96 5.45% $ 6,955,900
7,000,000 ANZ Banking Group 10/01/96 5.35 7,000,000
7,000,000 Canadian Imperial Holdings 11/06/96 5.40 6,962,690
7,000,000 Canadian Wheatboard 10/31/96 5.42 6,968,792
7,000,000 Ciesco 11/21/96 5.35 6,947,640
7,000,000 Commonwealth Bank of Australia 11/22/96 5.37 6,946,411
7,000,000 Compagnie Bancaire 11/19/96 5.37 6,949,502
7,000,000 General Electric Capital Corporation 12/05/96 5.54 6,930,992
7,000,000 Knight Ridder, Incorporated 10/09/96 5.38 6,991,678
7,000,000 Toronto Dominion Bank 12/10/96 5.50 6,926,228
- ----------- -------------
70,000,000 Total Commercial Paper 69,579,833
- ----------- -------------
<CAPTION>
Letter of Credit Commercial Paper (20.09%)
- ------------------------------------------------------------------------------------------------------------------------------------
<C> <C> <C> <C> <C>
$ 7,000,000 Daewoo International Corporation
LOC Credit Suisse 10/10/96 5.33% $ 6,990,725
7,000,000 Enterprise Funding Corporation
LOC Nations Bank 10/03/96 5.47 6,997,892
6,000,000 Pemex Capital, Inc.
LOC Swiss Bank Corp. 12/18/96 5.53 5,929,150
6,000,000 Petroleo Brasileiro S.A.
LOC Barclays Bank PLC 10/17/96 5.47 5,985,813
7,000,000 Unibanco-Uniao de Bancos Grand Cayman
LOC Westdeutsche Landesbank Girozentrale 12/10/96 5.55 6,925,411
- ----------- -------------
33,000,000 Total Letter of Credit Commercial Paper 32,828,991
- ----------- -------------
<CAPTION>
Master Notes (2.45%)
- ------------------------------------------------------------------------------------------------------------------------------------
<C> <C> <C> <C> <C>
$ 4,000,000 Goldman Sachs 11/04/96 5.98% $ 4,000,000
- ----------- -------------
4,000,000 Total Master Notes 4,000,000
- ----------- -------------
<CAPTION>
Medium Term Notes (1.35%)
- ------------------------------------------------------------------------------------------------------------------------------------
<C> <C> <C> <C>
$ 2,200,000 First U.S.A. Credit Master Trust - Series 1995-96 Class A (Steers) 12/10/96 5.51% $ 2,200,000
- ----------- -------------
2,200,000 Total Medium Term Notes 2,200,000
- ----------- -------------
<CAPTION>
Other Notes (20.32%)
- ------------------------------------------------------------------------------------------------------------------------------------
<C> <C> <C> <C>
$ 2,000,000 Batavia, NY BAN 10/04/96 5.13% $ 2,000,087
3,000,000 County of Passaic, NJ GO Refunding Bond - Series B
LOC Bank of Nova Scotia 09/01/20 (a) 5.95 3,000,000
1,364,000 Michigan Municipal Bond Authority RAN - Series C 08/04/97 6.42 1,368,877
3,745,000 Michigan Municipal Bond Authority RN - Series E 08/05/97 6.42 3,753,788
1,900,000 Mississippi Business Finance Corporation IDRB
(Howard Industries, Inc.) - Series 1995
LOC First National Bank of Chicago 06/01/10 (a) 5.70 1,900,000
</TABLE>
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See Notes to Financial Statements.
<PAGE>
- --------------------------------------------------------------------------------
================================================================================
<TABLE>
<CAPTION>
Face Maturity Value
Amount Date Yield (Note 1)
------ ---- ----- ------
Other Notes (Continued)
- ------------------------------------------------------------------------------------------------------------------------------------
<C> <C> <C> <C> <C>
$ 2,700,000 Pennsylvania EDFA (West 914 Incorporation Project) RB - Series 1991A
LOC PNC Bank, N.A. 05/01/21 (a) 5.45% $ 2,700,000
1,100,000 Pennsylvania EDFA Economic Development Bond
LOC PNC Bank, N.A. 08/01/02 (a) 5.45 1,100,000
2,931,000 Rochester, NY BAN 03/11/97 5.78 2,926,592
2,240,000 State of Connecticut RRA Taxable VRN - 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 1995D
MBIA Insured 06/01/24 (a) 5.40 2,200,000
2,000,000 State of Tennessee - Series D 07/02/01 (a) 5.40 2,000,000
1,000,000 State of Tennessee Adjustable Taxable BAN - Series B 07/02/01 (a) 5.40 1,000,000
3,000,000 The City of New York Fiscal Series 1996 Series A-2
LOC Societe Generale 10/29/96 5.47 3,000,000
4,000,000 The City of New York Taxable Municipal Fiscal 1996 - Series A-2
LOC Societe Generale 02/10/97 5.70 4,000,000
- ----------- -------------
33,180,000 Total Other Notes 33,189,344
- ----------- -------------
<CAPTION>
Repurchase Agreements, Overnight (12.85%)
- ------------------------------------------------------------------------------------------------------------------------------------
<C> <C> <C> <C> <C>
$21,000,000 Morgan Stanley & Co., Incorporated (Collateralized by
$38,128,061, GNMA's 7.00% to 9.00%, due 04/15/09 through 06/15/24) 10/01/96 5.63% $ 21,000,000
- ----------- -------------
21,000,000 Total Repurchase Agreements, Overnight 21,000,000
- ----------- -------------
Total Investments (99.65%) (Cost $162,798,168+) 162,798,168
Cash and Other Assets, Net of Liabilities (0.35%) 577,162
-------------
Net Assets (100.00%) $163,375,330
=============
Net Asset Value, offering and redemption price per share:
Class A, 5,394 shares outstanding (Note 3) $ 1.00
=============
Class B, 163,369,936 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 RAN = Revenue Anticipation Note
EDFA = Economic Development Finance Authority RN = Revenue Note
GO = Government Obligation RRA = Resource Recovery Authority
HEFA = Health and Educational Finance Authority VRN = Variable Rate Note
IDRB = Industrial Development Revenue Bond
</TABLE>
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
<PAGE>
- --------------------------------------------------------------------------------
INSTITUTIONAL DAILY INCOME FUND
U.S. TREASURY PORTFOLIO
STATEMENT OF NET ASSETS
SEPTEMBER 30, 1996
(UNAUDITED)
================================================================================
<TABLE>
<CAPTION>
Face Maturity Value
Amount Date Yield (Note 1)
------ ---- ----- ------
Repurchase Agreements (43.59%)
- ------------------------------------------------------------------------------------------------------------------------------------
<C> <C> <C> <C> <C>
$ 30,000,000 Goldman Sachs (Collateralized by $42,011,399,
GNMA's 6.00% to 10.00%, due 06/15/08 to 09/15/26) 10/02/96 5.35% $ 30,000,000
22,000,000 Morgan Stanley (Collateralized by $31,852,757,
GNMA's 6.00% to 8.00%, due 08/15/08 to 04/15/24) 10/01/96 5.63 22,000,000
30,000,000 CIBC (Collateralized by $29,880,000,
U.S. Treasury Notes, 6.500%, due 05/31/01) 10/01/96 5.65 30,000,000
30,000,000 J.P. Morgan Securities Inc. (Collateralized by $28,729,000,
U.S. Treasury Notes, 6.000% and 7.875%, due 10/15/99 and 08/15/01) 10/01/96 5.56 30,000,000
- ------------ -------------
112,000,000 Total Repurchase Agreements 112,000,000
- ------------ -------------
<CAPTION>
U.S. Government Obligations (56.06%)
- ------------------------------------------------------------------------------------------------------------------------------------
<C> <C> <C> <C> <C>
$ 5,000,000 U.S. Treasury Bills 10/10/96 5.23% $ 4,993,625
25,000,000 U.S. Treasury Bills 10/17/96 5.25 24,943,267
5,000,000 U.S. Treasury Bills 11/14/96 5.05 4,970,361
10,000,000 U.S. Treasury Bills 11/29/96 5.17 9,916,417
5,000,000 U.S. Treasury Bills 12/05/96 5.27 4,953,055
15,000,000 U.S. Treasury Bills 12/12/96 5.37 14,842,900
5,000,000 U.S. Treasury Bills 12/19/96 5.23 4,943,383
5,000,000 U.S. Treasury Bills 01/09/97 5.56 4,924,861
5,000,000 U.S. Treasury Bills 01/16/97 5.51 4,920,270
10,000,000 U.S. Treasury Bills 02/06/97 5.50 9,809,956
10,000,000 U.S. Treasury Bills 03/06/97 5.50 9,767,950
5,000,000 U.S. Treasury Notes, 8.000% 10/15/96 5.25 5,004,932
5,000,000 U.S. Treasury Notes, 6.875% 10/31/96 5.08 5,006,000
10,000,000 U.S. Treasury Notes, 4.375% 11/15/96 5.24 9,988,016
5,000,000 U.S. Treasury Notes, 7.250% 11/15/96 5.24 5,011,010
15,000,000 U.S. Treasury Notes, 7.250% 11/30/96 5.26 15,043,144
5,000,000 U.S. Treasury Notes, 6.625% 03/31/97 5.41 5,023,216
- ------------ -------------
145,000,000 Total U.S. Government Obligations 144,062,363
- ------------ -------------
Total Investments (99.65%) (Cost $256,062,363+) 256,062,363
Cash and Other Assets, Net of Liabilities (0.35%) 911,578
-------------
Net Assets (100.00%), 256,973,941 Shares Outstanding (Note 3) $256,973,941
=============
Net Asset Value, offering and redemption price per share $ 1.00
=============
+ Aggregate cost for federal income tax purposes is identical.
</TABLE>
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
<PAGE>
- --------------------------------------------------------------------------------
INSTITUTIONAL DAILY INCOME FUND
STATEMENTS OF OPERATIONS
SIX MONTHS ENDED SEPTEMBER 30,1996
(UNAUDITED)
================================================================================
<TABLE>
<CAPTION>
Money Market U.S. Treasury
Portfolio Portfolio
---------------- -----------------
INVESTMENT INCOME
<S> <C> <C>
Income:
Interest................................................... $ 3,971,603 $ 7,733,778
---------------- -----------------
Expenses: (Note 2)
Investment management fee.................................. 64,374 126,705
Administration fee......................................... 36,608 73,237
Distribution fee (Class A)................................. 7 366,184
Custodian expenses......................................... 11,065 19,455
Shareholder servicing and related shareholder expenses..... 17,595 33,660
Legal, compliance and filing fees.......................... 6,195 6,989
Audit and accounting....................................... 26,438 26,273
Directors' fees ........................................... 2,427 3,276
Amortization of organization costs......................... 5,150 --
Miscellaneous.............................................. 1,910 3,369
---------------- -----------------
Total expenses......................................... 171,769 659,148
Less:
Fees waived (Note 2).................................. ( 49,730) ( 53,468)
Expenses paid indirectly.............................. ( 9,803) ( 10,094)
---------------- -----------------
Net expenses................................... 112,236 595,586
---------------- -----------------
Net investment income.......................................... 3,859,367 7,138,192
---------------- -----------------
<CAPTION>
<S> <C> <C>
REALIZED GAIN (LOSS) ON INVESTMENTS
Net realized gain (loss) on investments........................ 287 575
---------------- -----------------
Increase in net assets from operations......................... $ 3,859,654 $ 7,138,767
================ =================
</TABLE>
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
<PAGE>
- --------------------------------------------------------------------------------
INSTITUTIONAL DAILY INCOME FUND
STATEMENTS OF CHANGES IN NET ASSETS
================================================================================
<TABLE>
<CAPTION>
INCREASE (DECREASE) IN NET ASSETS
Money Market Portfolio U.S. Treasury Portfolio
---------------------- -----------------------
Six Months Six Months November 29, 1995
Ended Year Ended (Commencement of
September 30, 1996 Ended September 30, 1996 Operations) to
(Unaudited) March 31, 1996 (Unaudited) March 31, 1996
--------- -------------- --------- --------------
<S> <C> <C> <C> <C>
Operations:
Net investment income................... $ 3,859,367 $ 4,255,909 $ 7,138,192 $ 4,543,322
Net realized gain (loss) on investments. 287 847 575 --
------------ ------------ ------------ ------------
Increase in net assets from operations.. 3,859,654 4,256,756 7,138,767 4,543,322
Dividends to shareholders:
Net investment income
Class A.............................. ( 134) ( 276) ( 7,138,192) ( 4,543,322)
Class B.............................. ( 3,859,233) ( 4,255,633) -- --
Net realized gain on investments
Class A.............................. -- -- ( 575) --
Class B.............................. ( 287) ( 847) -- --
Capital share transactions (Note 3):
Class A.............................. 133 5,261 ( 34,773,505) 291,747,446
Class B.............................. 36,088,172 91,424,998 -- --
------------ ------------ ------------ ------------
Total increase (decrease)............ 36,088,305 91,430,259 ( 34,773,505) 291,747,446
Net assets:
Beginning of period.................. 127,287,025 35,856,766 291,747,446 -0-
------------ ------------ ------------ ------------
End of period........................ $163,375,330 $127,287,025 $256,973,941 $291,747,446
============ ============ ============ ============
</TABLE>
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
<PAGE>
- --------------------------------------------------------------------------------
INSTITUTIONAL DAILY INCOME FUND
NOTES TO FINANCIAL STATEMENTS
(UNAUDITED)
================================================================================
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 September 30, 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.
Under the Investment Management Contract, each Portfolio pays an investment
management fee to Reich & Tang Asset Management, L.P. (the Manager) at the
annual rate of .12% of the Portfolio's average daily net assets. The Manager is
required to
- -------------------------------------------------------------------------------
<PAGE>
- --------------------------------------------------------------------------------
INSTITUTIONAL DAILY INCOME FUND
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
(UNAUDITED)
===============================================================================
2. Investment Management Fees and Other Transactions with Affiliates (Continued)
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 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. Prior to August 30, 1996 the investment
management fee was .08% of the Portfolio's average daily net assets.
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.
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 September 30, 1996, the Manager and Distributor
voluntarily waived investment management fees and administration fees of $27,765
and $21,965, respectively, for the Money Market Portfolio and $9,526 and
$43,942, respectively, for the U.S. Treasury 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 Statement of Operations under the caption "Shareholder servicing
and related shareholder expenses" are fees of $12,517 and $24,261 paid to Reich
& Tang Services, L.P., an affiliate of the Manager, as servicing agent for the
Fund, for the Money Market Portfolio and U.S. Treasury Portfolio, respectively.
Included in the Statements of Operations under the caption "Custodian expenses"
and "Shareholder servicing and related shareholder expenses" are expense offsets
of $9,803 and $10,094 for the Money Market Portfolio and U.S. Treasury
Portfolio, respectively.
3. Transactions in Shares of Beneficial Interest
At September 30, 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 $163,375,330 and $256,973,941, respectively.
Transactions in shares of beneficial interest, all at $1.00 per share, were as
follows:
- --------------------------------------------------------------------------------
<PAGE>
- --------------------------------------------------------------------------------
================================================================================
3. Transactions in Shares of Beneficial Interest (Continued)
<TABLE>
<CAPTION>
Money Market Portfolio
------------------------------------------------
April 6, 1995
Six Months (Commencement of Operations)
Ended to
September 30, 1996 March 31, 1996
------------------ --------------
CLASS A
- -------
<S> <C> <C>
Sold.................................... $ -- $ 5,009
Issued on reinvestment of dividends..... 133 252
Redeemed................................ ( -- ) ( -- )
------------- -------------
Net increase (decrease)................. 133 5,261
============= =============
<CAPTION>
Six Months Year
Ended Ended
September 30, 1996 March 31, 1996
------------------ --------------
CLASS B
- -------
<S> <C> <C>
Sold.................................... $ 206,028,057 $ 553,221,220
Issued on reinvestment of dividends..... 2,442,072 2,877,254
Redeemed................................ ( 172,381,957) ( 464,673,476)
------------- ------------
Net increase (decrease)................. 36,088,172 91,424,998
============= ============
<CAPTION>
U.S. Treasury Portfolio
--------------------------------------------------
November 29, 1995
Six Months (Commencement of Operations)
Ended to
September 30, 1996 March 31, 1996
------------------ --------------
CLASS A
- -------
<S> <C> <C>
Sold.................................... $ 260,803,473 $ 439,583,631
Issued on reinvestment of dividends..... 7,144,142 4,016,345
Redeemed................................ ( 302,721,120) ( 151,852,530)
-------------- ------------
Net increase (decrease)................. ( 34,773,505) 291,747,446
============== =============
</TABLE>
- --------------------------------------------------------------------------------
<PAGE>
- --------------------------------------------------------------------------------
INSTITUTIONAL DAILY INCOME FUND
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
(UNAUDITED)
================================================================================
<TABLE>
<CAPTION>
4. Selected Financial Information
Money Market Portfolio
------------------------------------------------------
For the Period April 6, 1995
Ended (Commencement of Sales) to
September 30, 1996 March 31, 1996
------------------ --------------
CLASS A
- -------
<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.................... 0.025 0.054
Less distributions:
Dividends from net investment income..... ( 0.025) ( 0.054)
------------- -------------
Net asset value, end of period.............. $ 1.00 $ 1.00
============= =============
Total Return................................ 5.13%* 5.58%*
Ratios/Supplemental Data
Net assets, end of period (000)............. $ 5 $ 5
Ratios to average net assets:
Expenses................................. 0.42%*(a)(b) 0.41%(a)(b)
Net investment income.................... 5.00%*(a) 5.46%(a)
<CAPTION>
Money Market Portfolio
-----------------------------------------------------------------------------
April 14, 1994
For the Period For the Year (Commencement of Operations)
Ended Ended to
September 30, 1996 March 31, 1996 March 31, 1995
CLASS B ------------------ -------------- --------------
- -------
<S> <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
------------- ------------- -------------
Income from investment operations:
Net investment income.................... 0.026 0.057 0.045
Less distributions:
Dividends from net investment income..... ( 0.026) ( 0.057) ( 0.045)
------------- ------------- ------------
Net asset value, end of period.............. $ 1.00 $ 1.00 $ 1.00
============= ============= ============
Total Return................................ 5.40%* 5.85% 5.16%*
Ratios/Supplemental Data
Net assets, end of period (000)............. $ 163,370 $ 127,282 $ 35,857
Ratios to average net assets:
Expenses................................. 0.17%*(a)(b) 0.16%(a)(b) 0.02%*(a)
Net investment income.................... 5.26%*(a) 5.64%(a) 5.14%*(a)
* Annualized
(a) Net of management and administration fees waived equivalent to .07%, .13%
and .13% of average net assets. Expenses reimbursed equivalent to .03% and
.25% for period ended March 31, 1996 and March 31, 1995, respectively, of
average net assets.
(b) Expenses paid indirectly equivalent to .01% and .04% of average net assets.
</TABLE>
- --------------------------------------------------------------------------------
<PAGE>
- --------------------------------------------------------------------------------
================================================================================
<TABLE>
<CAPTION>
4. Selected Financial Information (Continued)
U.S. Treasury Portfolio
------------------------------------------------------
For the Period November 29, 1995
Ended (Commencement of Operations) to
September 30, 1996 March 31, 1996
------------------ --------------
CLASS A
- -------
<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.................... 0.024 0.017
Less distributions:
Dividends from net investment income..... ( 0.024) ( 0.017)
------------- -------------
Net asset value, end of period.............. $ 1.00 $ 1.00
============= =============
Total Return................................ 4.98%* 5.18%*
Ratios/Supplemental Data
Net assets, end of period (000)............. $ 256,974 $ 291,747
Ratios to average net assets:
Expenses................................. 0.41%*(a)(b) 0.43%(a)
Net investment income.................... 4.87%*(a) 5.07%(a)
* Annualized
(a) Net of management and administration fees waived equivalent to 0.04% and
0.08% of average net assets.
(b) Expenses paid indirectly equivalent to 0.01% of average net assets.
</TABLE>
- --------------------------------------------------------------------------------
<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
Reich & Tang Asset Management, L.P.
600 Fifth Avenue
New York, New York 10020
Custodian
Investors Fiduciary Trust Company
127 West 10th Street
Kansas City, Missouri 64105
Transfer Agent &
Dividend Disbursing Agent
Reich & Tang Services L.P.
600 Fifth Avenue
New York, New York 10020
- --------------------------------------------------------------------------------
<PAGE>
