<PAGE>
- --------------------------------------------------------------------------------
INSTITUTIONAL 600 FIFTH AVENUE, NEW YORK, N.Y. 10020
DAILY INCOME FUND (212) 830-5200
================================================================================
Dear Shareholder,
We are pleased to present the semi-annual report of Institutional Daily Income
Fund for the period April 1, 1997 through September 30, 1997.
The Fund's Money Market Portfolio had 194 shareholders and net assets of
$251,187,355 as of September 30, 1997. The U.S. Treasury Portfolio had 657
shareholders and net assets of $373,239,542 as of September 30, 1997.
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, 1997
(UNAUDITED)
================================================================================
<TABLE>
<CAPTION>
Face Maturity Value
Amount Date Yield (Note 1)
------ ---- ----- --------
Commercial Paper (28.56%)
- --------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
$13,000,000 General Electric Capital Corporation 11/19/97 5.58% $12,902,681
13,000,000 International Lease Finance Corporation 10/06/97 5.56 12,990,051
9,000,000 Island Finance of Puerto Rico Incorporated 11/25/97 5.60 8,924,375
12,000,000 Sara Lee Corporation 10/03/97 5.85 11,996,100
13,000,000 Sigma Finance Corporation 11/10/97 5.61 12,920,122
12,000,000 UBS Finance, Delaware 10/01/97 6.40 12,000,000
----------- -----------
72,000,000 Total Commercial Paper 71,733,329
----------- -----------
<CAPTION>
Domestic Certificates of Deposit (3.98%)
- --------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
$10,000,000 Harris Trust & Savings Bank 11/18/97 5.57% $ 9,999,547
----------- -----------
10,000,000 Total Domestic Certificates of Deposit 9,999,547
----------- -----------
<CAPTION>
Eurodollar Certificates of Deposit (5.57%)
- --------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
$14,000,000 Svenskahandelsbanken 11/28/97 5.60% $14,000,551
----------- -----------
14,000,000 Total Eurodollar Certificates of Deposit 14,000,551
----------- -----------
<CAPTION>
Japanese Eurodollar Certificates of Deposit (3.19%)
- --------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
$ 8,000,000 Norinchukin Bank 10/02/97 5.64% $ 8,000,002
----------- -----------
8,000,000 Total Japanese Eurodollar Certificates of Deposit 8,000,002
----------- -----------
<CAPTION>
Letter of Credit Commercial Paper (9.11%)
- --------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
$13,000,000 China International Marine Containers
LOC Societe Generale 10/08/97 5.56% $12,986,072
10,000,000 Garanti Funding Corporation
LOC Bayerische Vereinsbank, A.G. 12/04/97 5.65 9,901,511
----------- -----------
23,000,000 Total Letter of Credit Commercial Paper 22,887,583
----------- -----------
<CAPTION>
Master Notes (1.99%)
- --------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
$ 5,000,000 The Goldman Sachs Group L.P. 04/28/98 6.48% $ 5,000,000
----------- -----------
5,000,000 Total Master Notes 5,000,000
----------- -----------
<CAPTION>
Other Notes (39.15%)
- --------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
$ 4,320,000 American West Michigan Properties
LOC Comerica Bank 12/01/25 5.68% $ 4,320,000
885,000 Antonio Sofo & Son Importing Co.
LOC PNC Bank 12/31/09 5.69 885,000
</TABLE>
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
<PAGE>
- --------------------------------------------------------------------------------
================================================================================
<TABLE>
<CAPTION>
Face Maturity Value
Amount Date Yield (Note 1)
------ ---- ----- --------
Other Notes (Continued)
- --------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
$10,000,000 Asset-Backed Securities Investment Trust - Series 1997 06/15/98 5.65% $10,000,000
1,705,000 Bardstown, KY IDRB (R & J Tower Corporation Project)
LOC Comerica Bank 06/01/24 5.68 1,705,000
9,534,000 Capital One Funding Corporation Floating Rate Option Notes - Series 1997D
LOC Bank One Ohio 07/02/18 5.59 9,534,000
1,000,000 City of Colorado Springs Adj. Rate Taxable/Convertible Bonds
(Goodwill Industries) - 1997B
LOC Bank One Ohio 02/01/07 5.67 1,000,000
1,100,000 Crystal Enterprises Inc.
LOC National Bank of Detroit 06/01/25 5.68 1,100,000
3,250,000 Delta Capital L.L.C.
LOC First Michigan Bank 10/01/16 5.75 3,250,000
3,225,000 Delta Capital L.L.C. - Series A
LOC First Michigan Bank 01/01/26 5.75 3,225,000
2,205,000 Dickinson Press, Inc. Taxable VRN - Series 1997
LOC First Michigan Bank 01/01/27 5.78 2,205,000
1,350,000 GCG Portage L.L.C.
LOC Old Kent Bank & Trust Co. 02/01/26 5.68 1,350,000
965,000 Hendricks County (Heartland Crossing)
LOC Bank One Ohio 01/01/22 5.78 965,000
9,000,000 Jacksonville Health Charity Group (Baptist /St. Vincent)
MBIA Insured 08/15/19 5.85 9,000,000
985,000 LRV Enterprises, L.L.C. Taxable VRN - Series 1996
LOC First of America 09/01/21 (a) 5.68 985,000
3,600,000 Mayfair Village Retirement Center, Inc., KY
(Variable Rate Term Notes) - Series 1995
LOC PNC Bank 05/01/00 (a) 5.52 3,600,000
2,906,000 Mercer County Improvement Authority Taxable RB
(County Baseball Stadium Project) - Series1997 04/15/98 5.96 2,908,919
4,250,000 Mississippi Business Finance Corp. Taxable IDRB
(ABTCO, Inc. Project) - Series 1997B
LOC First Union National Bank 04/01/22 5.60 4,250,000
1,800,000 Mississippi Business Finance Corporation IDRB
(Howard Industries, Inc.) - Series 1995
LOC National Bank of Detroit 06/01/10 (a) 5.87 1,800,000
</TABLE>
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
<PAGE>
- --------------------------------------------------------------------------------
INSTITUTIONAL DAILY INCOME FUND
MONEY MARKET PORTFOLIO
STATEMENT OF NET ASSETS (CONTINUED)
SEPTEMBER 30, 1997
(UNAUDITED)
================================================================================
<TABLE>
<CAPTION>
Face Maturity Value
Amount Date Yield (Note 1)
------ ---- ----- --------
Other Notes (Continued)
- --------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
$10,000,000 New York City GO Bonds
FGIC Insured 11/21/97 5.77% $10,000,000
3,000,000 Passaic County, NJ GO Refunding Bond - Series B
LOC Bank of Nova Scotia 09/01/20 (a) 6.00 3,000,000
1,000,000 Pennsylvania EDFA (Oglevee Ltd. Project)
LOC PNC Bank 08/01/02 (a) 5.65 1,000,000
900,000 Pennsylvania EDFA
(Philadelphia Business & Technical Center Project) - Series A1
LOC PNC Bank 04/01/04 (a) 5.55 900,000
1,000,000 Pennsylvania EDFA
(Quality Foods L.P. Project) Taxable Development RB - Series 1995D
LOC PNC Bank 12/01/14 (a) 5.65 1,000,000
900,000 Pennsylvania EDFA
(Southpointe Rink Assoc. Project) Taxable Development RB - Series 1994D7
LOC PNC Bank 12/01/09 (a) 5.65 900,000
2,600,000 Pennsylvania EDFA
(West 914 Incorporation Project) Taxable Development RB - Series 1991A
LOC PNC Bank 05/01/21 (a) 5.55 2,600,000
1,600,000 Pennsylvania EDFA Taxable Development RB
(C & D Charter Power System) - Series 1991B2
LOC PNC Bank 12/01/00 (a) 5.65 1,600,000
2,075,000 Rockside Road Properties VRN
(Rockside Road Properties Project) - Series 1995
LOC First National Bank of Ohio 07/01/10 5.65 2,075,000
1,370,000 SDR Capital, L.L.C.
LOC First Michigan Bank 10/01/26 5.78 1,370,000
3,090,000 State of Connecticut RRA Taxable VRN - Subseries 2
LOC National Westminster Bank PLC 11/15/97 (b) 6.00 3,090,000
2,200,000 State of Missouri HEFA (SSM Health Care System) 1995 - Series D
MBIA Insured 06/01/24 (a) 6.00 2,200,000
1,000,000 State of Tennessee Adjustable Taxable BAN - Series B 07/02/01 (a) 4.05 1,000,000
2,000,000 State of Tennessee Adjustable Taxable BAN - Series D 07/02/01 (a) 4.05 2,000,000
2,030,000 Trendway Corporation
LOC Michigan National Bank 12/01/26 5.68 2,030,000
1,500,000 Zylstra Funding, Inc.
LOC First Michigan Bank 06/01/27 5.78 1,500,000
----------- -----------
98,345,000 Total Other Notes 98,347,919
----------- -----------
</TABLE>
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
<PAGE>
- --------------------------------------------------------------------------------
================================================================================
<TABLE>
<CAPTION>
Face Maturity Value
Amount Date Yield (Note 1)
------ ---- ----- --------
Time Deposits (3.18%)
- --------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
$ 8,000,000 Dresdner Bank, A.G. 10/01/97 6.00% $ 8,000,000
----------- ------------
8,000,000 Total Time Deposits 8,000,000
----------- ------------
<CAPTION>
Yankee Certificates of Deposit (5.18%)
- --------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
$13,000,000 Canadian Imperial Bank of Commerce 11/18/97 5.57% $ 13,000,000
----------- ------------
13,000,000 Total Yankee Certificates of Deposit 13,000,000
----------- ------------
Total Investments (99.91%) (Cost 250,968,931+) 250,968,931
Cash and Other Assets, Net of Liabilities (0.09%) 218,424
------------
Net Assets (100.00%) $251,187,355
============
Net Assets Value, offering and redemption price per share:
Class A, 87,415,355 shares outstanding (Note 3) $ 1.00
============
Class B, 163,772,000 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>
KEYS:
<S> <C> <C> <C> <C> <C>
BAN = Bond Anticipation Note IDRB = Industrial Development Revenue Bond
EDFA = Economic Development Finance Authority RB = Revenue Bond
GO = Government Obligation RRA = Resource Recovery Authority
HEFA = Health and Educational Finance Authority VRN = Variable Rate Note
</TABLE>
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
<PAGE>
- --------------------------------------------------------------------------------
INSTITUTIONAL DAILY INCOME FUND
U.S. TREASURY PORTFOLIO
STATEMENT OF NET ASSETS
SEPTEMBER 30, 1997
(UNAUDITED)
================================================================================
<TABLE>
<CAPTION>
Face Maturity Value
Amount Date Yield (Note 1)
------ ---- ----- --------
Repurchase Agreements (47.42%)
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
$40,000,000 Canadian Imperial Bank of Commerce (Collateralized by $39,844,000,
U.S. Treasury Bills, due 11/13/97,
U.S. Treasury Bonds, 6.750% to 8.875%, due 05/15/16 to 08/15/26,
U.S. Treasury Notes, 5.375 % to 5.875%, due 11/30/97 to 11/30/00) 10/01/97 6.00% $40,000,000
40,000,000 Donaldson Lufkin Jenrette (Collateralized by $39,308,000,
U.S. Treasury Bills, due 12/26/97
U.S. Treasury Bonds, 7.50% to 13.25%, due 05/15/04 to 05/15/17
U.S. Treasury Notes, 5.000% to 7.875%, due 04/15/98 to 01/31/99) 10/01/97 6.05 40,000,000
50,000,000 Goldman Sachs (Collateralized by $112,001,500,
GNMA's, 2.8625% to 8.5000%, due 05/15/09 to 09/20/27) 10/01/97 6.25 50,000,000
27,000,000 Morgan (J.P.) Securities, Inc. (Collateralized by $29,027,000,
U.S. Treasury Bills, due 09/17/98) 10/01/97 6.00 27,000,000
20,000,000 Goldman Sachs (Collateralized by $32,133,392,
GNMA's, 6.50% to 9.00%, due 06/15/08 to 12/15/36) 10/08/97 5.51 20,000,000
----------- -----------
177,000,000 Total Repurchase Agreements 177,000,000
----------- -----------
<CAPTION>
U.S. Government Obligations (52.43%)
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
$40,000,000 U.S. Treasury Bills 10/02/97 4.20% $39,995,333
40,000,000 U.S. Treasury Bills 10/02/97 3.25 39,996,389
35,000,000 U.S. Treasury Bills 10/02/97 2.25 34,997,813
5,000,000 U.S. Treasury Bills 12/11/97 5.24 4,949,659
5,000,000 U.S. Treasury Bills 01/08/98 5.43 4,927,675
2,000,000 U.S. Treasury Bills 02/05/98 5.80 1,961,053
5,000,000 U.S. Treasury Bills 03/05/98 5.63 4,885,365
2,000,000 U.S. Treasury Bills 03/05/98 5.72 1,953,414
2,000,000 U.S. Treasury Bills 03/05/98 5.74 1,953,155
5,000,000 U.S. Treasury Notes, 5.62% 10/31/97 5.56 4,999,180
5,000,000 U.S. Treasury Notes, 5.25% 12/31/97 5.45 4,994,878
5,000,000 U.S. Treasury Notes, 5.25% 12/31/97 5.33 4,996,209
5,000,000 U.S. Treasury Notes, 5.12% 03/31/98 5.37 4,990,754
5,000,000 U.S. Treasury Notes, 6.12% 03/31/98 5.42 5,012,495
5,000,000 U.S. Treasury Notes, 5.87% 04/30/98 5.39 5,008,271
5,000,000 U.S. Treasury Notes, 5.87% 04/30/98 5.39 5,008,185
5,000,000 U.S. Treasury Notes, 6.12% 05/15/98 5.36 5,016,786
5,000,000 U.S. Treasury Notes, 6.12% 05/15/98 5.43 5,014,661
5,000,000 U.S. Treasury Notes, 6.25% 06/30/98 5.44 5,022,045
</TABLE>
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
<PAGE>
- --------------------------------------------------------------------------------
================================================================================
<TABLE>
<CAPTION>
Face Maturity Value
Amount Date Yield (Note 1)
------ ---- ----- --------
U.S. Government Obligations (Continued)
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
$ 5,000,000 U.S. Treasury Notes, 6.25% 07/31/98 5.53% $ 5,021,803
5,000,000 U.S. Treasury Notes, 4.75% 08/31/98 5.59 4,956,157
----------- ------------
196,000,000 Total U.S. Government Obligations 195,661,280
----------- ------------
Total Investments (99.85%) Cost ($372,661,280+) 372,661,280
Cash and Other Assets, Net of Liabilities (0.15%) 578,262
------------
Net Assets (100%) $373,239,542
============
Net Asset Value offering and redemption price per share:
Class A Shares, 365,503,375 shares outstanding (Note 3) $ 1.00
============
Class B Shares, 7,736,167 shares outstanding (Note 3) $ 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 30,1997
(UNAUDITED)
================================================================================
<TABLE>
<CAPTION>
Money Market U.S. Treasury
Portfolio Portfolio
-------------- ---------------
INVESTMENT INCOME
<S> <C> <C>
Income:
Interest................................................... $ 7,290,363 $ 9,326,113
------------------ -----------------
Expenses: (Note 2)
Investment management fee.................................. 154,506 203,630
Administration fee......................................... 64,378 84,846
Distribution fee (Class A)................................. 58,360 416,016
Custodian expenses......................................... 20,613 22,940
Shareholder servicing and related shareholder expenses..... 28,448 35,073
Legal, compliance and filing fees.......................... 31,596 23,962
Audit and accounting....................................... 38,949 33,914
Trustees' fees ............................................ 3,372 3,538
Amortization of organization costs......................... 5,150 --
Miscellaneous.............................................. 3,149 2,608
------------------ -----------------
Total expenses......................................... 408,521 826,527
Less:
Fees waived (Note 2)................................. ( 106,157) ( 118,784)
Expenses paid indirectly............................. ( 5,099) ( 16,338)
------------------ -----------------
Net expenses................................... 297,265 691,405
------------------ -----------------
Net investment income......................................... 6,993,098 8,634,708
<CAPTION>
REALIZED GAIN (LOSS) ON INVESTMENTS
<S> <C> <C>
Net realized gain (loss) on investments....................... 746 -0-
------------------ -----------------
Increase in net assets from operations........................ $ 6,993,844 $ 8,634,708
================== =================
</TABLE>
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
<PAGE>
- --------------------------------------------------------------------------------
INSTITUTIONAL DAILY INCOME FUND
STATEMENTS OF CHANGES IN NET ASSETS
================================================================================
<TABLE>
<CAPTION>
Money Market Portfolio U.S. Treasury Portfolio
---------------------- -----------------------
Six Months Six Months
Ended Year Ended Year
September 30, 1997 Ended September 30, 1997 Ended
(Unaudited) March 31, 1997 (Unaudited) March 31, 1997
--------- -------------- --------- --------------
INCREASE (DECREASE) IN NET ASSETS
<S> <C> <C> <C> <C>
Operations:
Net investment income............................ $ 6,993,098 $ 8,746,758 $ 8,634,708 $ 14,333,683
Net realized gain (loss) on investments.......... 746 287 -0- 3,711
------------- ------------- ------------- -------------
Increase in net assets from operations........... 6,993,844 8,747,045 8,634,708 14,337,394
Dividends to shareholders:
Net investment income
Class A........................................ ( 1,218,570) ( 581,612) ( 8,459,644) ( 14,207,747)
Class B........................................ ( 5,774,528) ( 8,165,146) ( 175,064) ( 125,936)
Net realized gain on investments
Class A........................................ ( 106) -- -- ( 3,638)
Class B........................................ ( 640) ( 287) -- ( 73)
Capital share transactions (Note 3):
Class A........................................ 49,195,196 38,214,898 55,213,420 18,542,509
Class B........................................ 5,246,867 31,243,369 ( 63,056) 7,799,223
------------- ------------- ------------ -------------
Total increase (decrease)...................... 54,442,063 69,458,267 55,150,364 26,341,732
Net assets:
Beginning of period............................ 196,745,292 127,287,025 318,089,178 291,747,446
------------- ------------- ------------- -------------
End of period.................................. $ 251,187,355 $ 196,745,292 $ 373,239,542 $ 318,089,178
============= ============= ============= =============
</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. Treasury 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. Additionally, each Portfolio 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 minor transfer agent
expenses, 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 Portfolio shares outstanding before April 6, 1995 were designated as
Class A shares. Distribution of Class B shares of the U.S. Treasury Portfolio
commenced November 18, 1996. All Portfolio shares outstanding before November
18, 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.
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.
- --------------------------------------------------------------------------------
<PAGE>
- --------------------------------------------------------------------------------
================================================================================
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.
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% per annum of each Portfolio's average daily net assets.
During the period ended September 30, 1997, the Manager voluntarily waived
investment management fees and administration fees of $67,531 and $38,626,
respectively, for the Money Market Portfolio and $67,877 and $50,907,
respectively, for the U.S. Treasury Portfolio.
Fees are paid to Trustees 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 $25,673 and $33,859 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 captions "Custodian expenses"
and "Shareholder servicing and related shareholder expenses" are expense offsets
of $5,099 and $16,338 for the Money Market Portfolio and U.S. Treasury
Portfolio, respectively.
3. Transactions in Shares of Beneficial Interest.
At September 30, 1997, 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 $251,187,355 and $373,239,542, respectively.
Transactions in shares of beneficial interest, all at $1.00 per share, were as
follows:
- --------------------------------------------------------------------------------
<PAGE>
- --------------------------------------------------------------------------------
INSTITUTIONAL DAILY INCOME FUND
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
(UNAUDITED)
================================================================================
3. Transactions in Shares of Beneficial Interest. (Continued)
<TABLE>
<CAPTION>
Money Market Portfolio
-----------------------------------------
Six Months Ended Year Ended
September 30, 1997 March 31, 1997
------------------ --------------
CLASS A
-------
<S> <C> <C>
Sold.................................... $ 270,957,975 $ 225,303,821
Issued on reinvestment of dividends..... 1,127,077 511,560
Redeemed................................ ( 222,889,856) ( 187,600,483)
------------- -------------
Net increase (decrease)................. 49,195,196 38,214,898
============= =============
Six Months Ended Year Ended
September 30, 1997 March 31, 1997
------------------ --------------
CLASS B
-------
<S> <C> <C>
Sold.................................... $ 471,082,517 $ 585,658,049
Issued on reinvestment of dividends..... 5,486,673 6,523,737
Redeemed................................ ( 471,322,323) ( 560,938,417)
------------- ------------
Net increase (decrease)................. 5,246,867 31,243,369
============= ============
<CAPTION>
U.S. Treasury Portfolio
-----------------------------------------
Six Months Ended Year Ended
September 30, 1997 March 31, 1997
------------------ --------------
CLASS A
-------
<S> <C> <C>
Sold.................................... $ 404,759,922 $ 566,923,016
Issued on reinvestment of dividends..... 8,199,512 14,118,326
Redeemed................................ ( 357,746,014) ( 562,498,833)
------------- ------------
Net increase (decrease)................. 55,213,420 18,542,509
============= ============
November 18, 1996
Six Months Ended (Commencement of Sales) to
September 30, 1997 September 30, 1997
CLASS B ------------------ ------------------
-------
<S> <C> <C>
Sold.................................... $ 8,115,601 $ 9,174,613
Issued on reinvestment of dividends..... 175,063 126,008
Redeemed................................ ( 8,353,720) ( 1,501,398)
------------- -------------
Net increase (decrease)................. ( 63,056) 7,799,223
============= =============
</TABLE>
- --------------------------------------------------------------------------------
<PAGE>
- --------------------------------------------------------------------------------
================================================================================
4. Financial Highlights.
<TABLE>
<CAPTION>
Money Market Portfolio
-----------------------------------------------------------------------------
Six Months For the Year April 6, 1995
Ended Ended (Commencement of Sales) to
September 30, 1997 March 31, 1997 March 31, 1996
CLASS A ------------------ -------------- --------------
- -------
<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 0.050 0.054
Less distributions:
Dividends from net investment income.......... ( 0.026) ( 0.050) ( 0.054)
--------- --------- ---------
Net asset value, end of period................... $ 1.00 $ 1.00 $ 1.00
========== ========== ==========
Total Return..................................... 5.35%* 5.16% 5.58%*
Ratios/Supplemental Data
Net assets, end of period (000).................. $ 87,415 $ 38,220 $ 5
Ratios to average net assets:
Expenses (net of fees waived and reimbursed).. 0.44%*+ 0.42%+ 0.41%*+
Net investment income......................... 5.22%* 5.07% 5.46%*
Expenses paid indirectly......................... 0.00%* 0.01% 0.04%
Management and administration fees waived........ 0.08%* 0.09% 0.13%
Expenses reimbursed.............................. -- -- 0.03%
<CAPTION>
Money Market Portfolio
-----------------------------------------------------------------------------
For the Year
Ended
Six Months March 31, April 14, 1995
CLASS A Ended ------------------------ (Commencement of Sales) to
- ------- September 30, 1997 1997 1996 March 31, 1995
------------------ ---------- ---------- --------------
<S> <C> <C> <C> <C>
Per Share Operating Performance:
(for a share outstanding throughout the period)
Net asset value, beginning of period.......... $ 1.00 $ 1.00 $ 1.00 $ 1.00
---------- ---------- ---------- ----------
Income from investment operations:
Net investment income......................... 0.027 0.053 0.057 0.045
Less distributions:
Dividends from net investment income.......... ( 0.027) ( 0.053) ( 0.057) ( 0.045)
--------- --------- --------- ---------
Net asset value, end of period................... $ 1.00 $ 1.00 $ 1.00 $ 1.00
========== ========== ========== ==========
Total Return..................................... 5.62%* 5.42% 5.85% 5.16%*
Ratios/Supplemental Data
Net assets, end of period (000).................. $ 163,772 $ 158,525 $ 127,282 $ 35,857
Ratios to average net assets:
Expenses (net of fees waived and reimbursed).. 0.19%*+ 0.17%+ 0.16%+ 0.02%*
Net investment income......................... 5.48%* 5.29% 5.64% 5.14%*
Expenses paid indirectly......................... 0.00%* 0.01% 0.04% --
Management and administration fees waived........ 0.08%* 0.09% 0.13% 0.13%
Expenses reimbursed.............................. -- -- 0.03% 0.25%
* Annualized
+ Includes expenses paid indirectly.
</TABLE>
- --------------------------------------------------------------------------------
<PAGE>
- --------------------------------------------------------------------------------
INSTITUTIONAL DAILY INCOME FUND
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
(UNAUDITED)
================================================================================
4. Financial Highlights. (Continued)
<TABLE>
<CAPTION>
U.S. Treasury Portfolio
-----------------------------------------------------------------------------
Six Months For the Year November 29, 1995
Ended Ended (Commencement of Operations) to
September 30, 1997 March 31, 1997 March 31, 1996
CLASS A ------------------ -------------- --------------
- -------
<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......................... 0.025 0.049 0.017
Less distributions:
Dividends from net investment income.......... ( 0.025) ( 0.049) ( 0.017)
---------- ---------- ---------
Net asset value, end of period................... $ 1.00 $ 1.00 $ 1.00
=========== =========== ===========
Total Return..................................... 5.20%* 5.00% 5.18%*
Ratios/Supplemental Data
Net assets, end of period (000).................. $ 365,503 $ 310,290 $ 291,747
Ratios to average net assets:
Expenses (net of fees waived and reimbursed).. 0.42%*+ 0.42%+ 0.43%*
Net investment income......................... 5.08%* 4.89% 5.07%*
Expenses paid indirectly......................... 0.01%* 0.01% --
Management and administration fees waived........ 0.07%* 0.05% 0.08%
<CAPTION>
U.S. Treasury Portfolio
------------------------------------------------------
Six Months November 18, 1996
Ended (Commencement of Sales) to
September 30, 1997 March 31, 1997
------------------ --------------
CLASS B
- -------
<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......................... 0.027 0.019
Less distributions:
Dividends from net investment income.......... ( 0.027) ( 0.019)
------------- ------------
Net asset value, end of period................... $ 1.00 $1.00
============= ============
Total Return..................................... 5.46%* 5.27%*
Ratios/Supplemental Data
Net assets, end of period (000).................. $ 7,736 $ 7,799
Ratios to average net assets:
Expenses (net of fees waived and reimbursed).. 0.17%*+ 0.17%*+
Net investment income......................... 5.33%* 5.14%*
Expenses paid indirectly......................... 0.01%* 0.01%*
Management and administration fees waived........ 0.07%* 0.05%*
</TABLE>
* Annualized
+ Includes expenses paid indirectly.
- --------------------------------------------------------------------------------
<PAGE>
- --------------------------------------------------------------------------------
INSTITUTIONAL
DAILY
INCOME FUND
Semi-Annual Report
September 30, 1997
(Unaudited)
- --------------------------------------------------------------------------------
<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
801 Pennsylvania
Kansas City, Missouri 64105
Transfer Agent &
Dividend Disbursing Agent
Reich & Tang Services L.P.
600 Fifth Avenue
New York, New York 10020
- --------------------------------------------------------------------------------
<PAGE>
