<PAGE>
- --------------------------------------------------------------------------------
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 year ended March 31, 1999.
The Fund's Money Market Portfolio had 88 shareholders and net assets of
$503,377,109 as of March 31, 1999. The U.S. Treasury Portfolio had 37
shareholders and net assets of $800,990,253 as of March 31, 1999.
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
MARCH 31, 1999
================================================================================
<TABLE>
<CAPTION>
Face Maturity Value
Amount Date Yield (Note 1)
------ ---- ----- ------
Commercial Paper (24.72%)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
$ 20,000,000 Asset Securitization Corporation 05/14/99 4.88% $ 19,884,139
15,000,000 Bank of America Corporation 05/18/99 5.08 14,903,063
20,000,000 Enterprise Funding Corporation 04/15/99 4.91 19,961,967
10,000,000 Receivables Capital Corporation 04/12/99 4.88 9,985,119
20,000,000 Sigma Finance Corporation 04/16/99 4.89 19,959,750
20,000,000 Special Purpose Accounts Receivable Co-Operation 06/08/99 4.94 19,815,644
20,000,000 Spice Trust 1 04/27/99 4.94 19,928,644
-------------- -------------
125,000,000 Total Commercial Paper 124,438,326
-------------- -------------
<CAPTION>
Letter of Credit Commercial Paper (16.36%)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
$ 10,000,000 Banca Serfin S.A.
LOC Barclays Bank 08/26/99 5.40% $ 9,790,525
15,000,000 Banco Bozano Simonsen, S.A.
LOC Banco Santander 06/18/99 5.81 14,821,250
20,000,000 Banco de Galicia Y Buenos Aires S.A.
LOC Bayerische HypoVereinsbank, A.G. 05/20/99 4.91 19,867,972
20,000,000 Dixie Overseas, Ltd.
LOC Credit Agricole 04/23/99 4.91 19,940,234
18,000,000 Louis Dreyfus Corporation
LOC ABN AMRO Bank 04/19/99 4.90 17,956,080
-------------- -------------
83,000,000 Total Letter of Credit Commercial Paper 82,376,061
-------------- -------------
<CAPTION>
Loan Participation (1.99%)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
$ 10,000,000 Equitable Life Assurance Society 03/20/00 5.05% $ 10,000,000
-------------- -------------
10,000,000 Total Loan Participation 10,000,000
-------------- -------------
<CAPTION>
Master Notes (1.99%)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
$ 5,000,000 The Goldman Sachs Group L.P. 10/19/99 4.87% $ 5,000,000
5,000,000 The Goldman Sachs Group L.P. 04/11/00 5.03 5,000,000
-------------- -------------
10,000,000 Total Master Notes 10,000,000
-------------- -------------
<CAPTION>
Medium Term Notes (3.88%)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
$ 4,545,772 Structured Enhanced Return Trust STEERS 1998 - Series A-42
MBIA Insured 08/25/99 4.96% $ 4,545,773
15,000,000 Structured Enhanced Return Trust STEERS 1998 - Series A-40
MBIA Insured 01/18/00 5.04 15,000,000
-------------- -------------
19,545,772 Total Medium Term Notes 19,545,773
-------------- -------------
<CAPTION>
Other Notes (24.53%)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
$ 4,000,000 Alpine Capital Investments L.L.C.
LOC First of America 09/15/27 (a) 4.95% $ 4,000,000
13,400,000 Anaheim, CA
LOC Credit Suisse First Boston 06/01/99 (b) 5.03 13,400,000
</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>
$ 856,000 Antonio Sofo & Son Importing Co.
LOC PNC Bank, N.A. 12/31/09 (a) 5.01% $ 856,000
1,705,000 Bardstown, KY IDRB (R & J Tower Corporation Project)
LOC Comerica Bank 06/01/24 (a) 4.95 1,705,000
920,000 City of Colorado Springs Adjustable Rate Taxable/Convertible Bonds
(Goodwill Industries) - Series 1997B
LOC Bank One Ohio 02/01/07 (a) 4.97 920,000
1,100,000 Crystal Enterprises Inc.
LOC Old Kent Bank & Trust Co. 06/01/28 (a) 4.95 1,100,000
3,600,000 Dekalb County, GA (Emory University Project) 04/28/99 (b) 4.85 3,600,000
3,085,000 Delta Capital L.L.C.
LOC First Michigan Bank 10/01/16 (a) 4.95 3,085,000
830,000 Delta Capital L.L.C. - Series A
LOC First Michigan Bank 01/01/26 (a) 4.95 830,000
1,960,000 Dickenson Press, Inc. - Series 1997
LOC First Michigan Bank 01/01/27 (a) 4.95 1,960,000
6,000,000 Douglas County, GA Development Authority
(Abrams Riverside, LLC Project)
LOC Bank of America 11/01/18 (a) 5.05 6,000,000
1,325,000 GCG Portage L.L.C.
LOC Old Kent Bank & Trust Co. 02/01/26 (a) 4.95 1,325,000
965,000 Hendricks County (Heartland Crossing)
LOC Bank One Ohio 01/01/22 (a) 5.11 965,000
2,150,000 Hunter's Square, Inc. Project - Series 1998
LOC National City Bank 10/01/16 (a) 4.95 2,150,000
10,000,000 John Hancock Mutual Life Insurance Company 08/19/00 (a) 5.77 10,000,000
925,000 LRV Enterprises, L.L.C.
LOC First of America 09/01/21 (a) 4.95 925,000
8,000,000 Long Lane Master Trust III
LOC BankBoston 04/30/99 (b) 4.97 8,000,000
3,300,000 Mayfair Village Retirement Center, Inc., KY
(Variable Rate Term Notes) - Series 1995
LOC PNC Bank, N.A. 05/01/00 (a) 4.92 3,300,000
5,855,000 Medic Funding Corporation
Guaranteed by Federal Home Loan Bank 05/01/27 (a) 4.97 5,855,000
3,650,000 Mississippi Business Finance Corporation IDRB
(ABTCO, Inc. Project) - Series 1997B
LOC First Union National Bank 04/01/22 (a) 5.00 3,650,000
1,655,000 Mississippi Business Finance Corporation IDRB
(ABTCO, Inc. Project) - Series 1997B
LOC National Bank of Detroit 06/01/10 (a) 5.05 1,655,000
</TABLE>
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See Notes to Financial Statements.
<PAGE>
- --------------------------------------------------------------------------------
INSTITUTIONAL DAILY INCOME FUND
MONEY MARKET PORTFOLIO
STATEMENT OF NET ASSETS (CONTINUED)
MARCH 31, 1999
================================================================================
<TABLE>
<CAPTION>
Face Maturity Value
Amount Date Yield (Note 1)
------ ---- ----- ------
Other Notes (Continued)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
$ 14,000,000 New York City, NY GO Bonds
FGIC Insured 05/21/99 4.98% $ 14,000,000
1,400,000 Pennsylvania EDFA Taxable Development RB
(C & D Charter Power System) - Series 1989 B2
LOC PNC Bank, N.A. 12/01/00 (a) 5.00 1,400,000
800,000 Pennsylvania EDFA (Oglevee Limited Project)
LOC PNC Bank, N.A. 08/01/02 (a) 5.00 800,000
800,000 Pennsylvania EDFA
(Philadelphia Business & Technical Center Project) - Series A1
LOC PNC Bank, N.A. 04/01/04 (a) 5.00 800,000
800,000 Pennsylvania EDFA Taxable Development RB
(Quality Foods L.P. Project) - Series 1995D
LOC PNC Bank, N.A. 12/01/14 (a) 5.00 800,000
850,000 Pennsylvania EDFA Taxable Development RB
(Southpointe Rink Association Project) - Series 1994D7
LOC PNC Bank, N.A. 12/01/09 (a) 5.00 850,000
2,500,000 Pennsylvania EDFA Taxable Development RB
(West 914 Incorporation Project) - Series 1991A
LOC PNC Bank, N.A. 05/01/21 (a) 5.00 2,500,000
1,220,000 SDR Capital, L.L.C.
LOC First Michigan Bank 10/15/01 (a) 4.95 1,220,000
400,000 State of Tennessee Adjustable Taxable BAN - Series D 07/02/01 (a) 5.05 400,000
20,000,000 Tennessee School Board Authority 06/01/99 (a) 4.92 20,000,000
1,950,000 Trendway Corporation
LOC Michigan National Bank 12/01/26 (a) 4.95 1,950,000
2,000,000 Woodlawn, OH (Southland Properties Project)
LOC Bank of Montreal/Provident Bank 06/01/08 (a) 4.95 2,000,000
1,455,000 Zylstra Funding, Inc.
LOC First Michigan Bank 06/01/27 (a) 4.95 1,455,000
-------------- -------------
123,456,000 Total Other Notes 123,456,000
-------------- -------------
<CAPTION>
Repurchase Agreement, Overnight (26.42%)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
$ 133,000,000 Morgan Stanley & Co., Incorporated
(Collateralized by GNMA, 6.500% to 10.000%,
due 4/15/08 to 3/20/29) 04/01/99 4.98% $ 133,000,000
-------------- -------------
133,000,000 Total Repurchase Agreement, Overnight 133,000,000
-------------- -------------
Total Investments (99.89%) (Cost $502,816,160+) 502,816,160
Cash and Other Assets Net of Liabilities (0.11%) 560,949
-------------
Net Assets (100.00%) $ 503,377,109
=============
Net Asset Value, offering and redemption price per share:
Class A Shares, 282,258,186 shares outstanding (Note 3) $ 1.00
=============
Class B Shares, 221,118,923 shares outstanding (Note 3) $ 1.00
=============
+ Aggregate cost for federal income tax purposes is identical.
</TABLE>
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
<PAGE>
- --------------------------------------------------------------------------------
================================================================================
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>
KEY:
<S> <C> <C> <C> <C> <C>
BAN = Bond Anticipation Note IDRB = Industrial Development Revenue Bond
EDFA = Economic Development Finance Authority LOC = Letter of Credit
FGIC = Financial Guaranty Insurance Company RB = Revenue Bond
GO = General Obligation STEERS = Structured Enhanced Return Trust
</TABLE>
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
<PAGE>
- --------------------------------------------------------------------------------
INSTITUTIONAL DAILY INCOME FUND
U.S. TREASURY PORTFOLIO
STATEMENT OF NET ASSETS
MARCH 31, 1999
================================================================================
<TABLE>
<CAPTION>
Face Maturity Value
Amount Date Yield (Note 1)
------ ---- ----- ------
Repurchase Agreements, Overnight (48.44%)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
$ 120,000,000 The Goldman Sachs Group L.P. (Collateralized by GNMA,
2.863% to 11.000%, due 03/15/08 to 03/15/29) 04/01/99 5.05% $ 120,000,000
125,000,000 Morgan (J.P.) Securities, Inc. (Collateralized by GNMA,
6.000% to 6.500%, due 08/15/27 to 01/15/29) 04/01/99 5.00 125,000,000
143,000,000 Morgan Stanley & Company, Inc. (Collateralized by GNMA,
5.000% to 8.500%, due 02/20/11 to 02/20/29) 04/01/99 4.98 143,000,000
-------------- ------------
388,000,000 Total Repurchase Agreements, Overnight 388,000,000
-------------- ------------
<CAPTION>
U.S. Government Obligations (51.27%)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
$ 175,000,000 U.S. Treasury Bills 04/22/99 4.66% $ 174,525,313
20,000,000 U.S. Treasury Notes, 6.37% 04/30/99 5.37 20,012,369
25,000,000 U.S. Treasury Notes, 6.25% 05/31/99 4.35 25,070,112
40,000,000 U.S. Treasury Notes, 6.00% 06/30/99 4.73 40,109,060
20,000,000 U.S. Treasury Notes, 6.37% 07/15/99 4.94 20,072,001
35,000,000 U.S. Treasury Notes, 5.87% 07/31/99 4.16 35,185,775
10,000,000 U.S. Treasury Notes, 5.87% 08/31/99 4.65 10,048,164
10,000,000 U.S. Treasury Notes, 6.87% 08/31/99 4.65 10,080,042
25,000,000 U.S. Treasury Notes, 7.12% 09/30/99 4.65 25,265,429
30,000,000 U.S. Treasury Notes, 6.00% 10/15/99 4.58 30,202,112
10,000,000 U.S. Treasury Notes, 5.37% 01/31/00 4.50 10,059,570
10,000,000 U.S. Treasury Notes, 5.50% 02/29/00 4.54 10,064,396
-------------- ------------
410,000,000 Total U.S. Government Obligations 410,694,343
-------------- ------------
Total Investments (99.71%) (Cost $798,694,343+) 798,694,343
Cash and Other Assets, Net of Liabilities (0.29%) 2,295,910
------------
Net Assets (100.00%) $ 800,990,253
============
Net Asset Value offering and redemption price per share:
Class A Shares, 721,197,539 shares outstanding (Note 3) $ 1.00
============
Class B Shares, 79,792,714 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
YEAR ENDED MARCH 31, 1999
================================================================================
<TABLE>
<CAPTION>
Money Market U.S. Treasury
Portfolio Portfolio
------------------ -----------------
<S> <C> <C>
INVESTMENT INCOME
Income:
Interest................................................... $ 21,415,924 $ 34,697,358
------------------ -----------------
Expenses: (Note 2)
Investment management fee.................................. 472,729 809,496
Administration fee......................................... 196,971 337,290
Shareholder servicing fee (Class A)........................ 398,230 1,577,248
Custodian expenses......................................... 33,821 63,299
Shareholder servicing and related shareholder expenses..... 89,255 150,397
Legal, compliance and filing fees.......................... 99,333 174,502
Audit and accounting....................................... 73,164 89,322
Trustees' fees ............................................ 6,065 6,065
Amortization of organization costs......................... 10,271 --
Miscellaneous.............................................. 14,946 23,562
------------------ -----------------
Total expenses......................................... 1,394,785 3,231,181
Less:
Fees waived (Note 2).................................. ( 208,703) ( 297,555)
Expenses paid indirectly.............................. -0- ( 7,824)
------------------ -----------------
Net expenses................................... 1,186,082 2,925,802
------------------ -----------------
Net investment income......................................... 20,229,842 31,771,556
<CAPTION>
REALIZED GAIN (LOSS) ON INVESTMENTS
<S> <C> <C>
Net realized gain (loss) on investments....................... 4,250 26,250
------------------ -----------------
Increase in net assets from operations........................ $ 20,234,092 $ 31,797,806
================== =================
</TABLE>
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
<PAGE>
- --------------------------------------------------------------------------------
INSTITUTIONAL DAILY INCOME FUND
STATEMENTS OF CHANGES IN NET ASSETS
YEARS ENDED MARCH 31, 1999 AND 1998
================================================================================
<TABLE>
<CAPTION>
Money Market Portfolio U.S. Treasury Portfolio
----------------------------------- ------------------------------
1999 1998 1999 1998
------------- ------------- ------------- -------------
INCREASE (DECREASE) IN NET ASSETS
<S> <C> <C> <C> <C>
Operations:
Net investment income................... $ 20,229,842 $ 15,790,068 $ 31,771,556 $ 19,993,964
Net realized gain (loss) on investments. 4,250 3,299 26,250 11,744
------------- ------------- ------------- -------------
Increase in net assets from operations.. 20,234,092 15,793,367 31,797,806 20,005,708
Dividends to shareholders:
Net investment income
Class A............................... ( 7,860,183) ( 3,807,170) ( 29,706,735) ( 19,599,207)
Class B............................... ( 12,369,659) ( 11,982,898) ( 2,064,821) ( 394,757)
Net realized gain on investments
Class A............................... ( 1,686) ( 1,031) ( 25,305) ( 11,553)
Class B............................... ( 2,564) ( 2,268) ( 945) ( 191)
Capital share transactions (Note 3):
Class A............................... 173,601,064 70,436,963 253,825,264 157,082,320
Class B............................... ( 6,773,897) 69,367,687 72,960,122 ( 966,631)
------------- ------------- ------------- -------------
Total increase (decrease)............. 166,827,167 139,804,650 326,785,386 156,115,689
Net assets:
Beginning of year..................... 336,549,942 196,745,292 474,204,867 318,089,178
------------- ------------- ------------- -------------
End of year........................... $ 503,377,109 $ 336,549,942 $ 800,990,253 $ 474,204,867
============= ============= ============= =============
</TABLE>
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
<PAGE>
- --------------------------------------------------------------------------------
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. 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 shareholder servicing fees and transfer
agent expenses. In all other respects, the Class A and Class B shares represent
the same interest in the income and assets of 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 B 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 Funds 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>
- --------------------------------------------------------------------------------
INSTITUTIONAL DAILY INCOME FUND
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
================================================================================
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, Inc.
(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 year ended March 31, 1999, the Manager voluntarily waived investment
management fees and administration fees of $90,521 and $118,182, respectively,
for the Money Market Portfolio and $126,559 and $170,996, 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 for each Portfolio.
Included in the Statement of Operations under the caption "Shareholder servicing
and related shareholder expenses" are fees of $78,760 and $135,013 paid to Reich
& Tang Services, Inc., 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"
are expense offsets of $7,824 for U.S. Treasury Portfolio.
3. Transactions in Shares of Beneficial Interest.
At March 31, 1999, 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 $503,377,109 and $800,990,253, respectively.
Transactions in shares of beneficial interest, all at $1.00 per share, were as
follows:
- --------------------------------------------------------------------------------
<PAGE>
- --------------------------------------------------------------------------------
================================================================================
<TABLE>
<CAPTION>
3. Transactions in Shares of Beneficial Interest. (Continued)
Money Market Portfolio
------------------------------------------
For the Year Ended For the Year Ended
March 31, 1999 March 31, 1998
-------------- --------------
CLASS A
- -------
<S> <C> <C>
Sold.................................... $1,206,034,402 $ 814,098,188
Issued on reinvestment of dividends..... 7,406,833 3,558,103
Redeemed................................ (1,039,840,171) ( 747,219,328)
-------------- -------------
Net increase (decrease)................. 173,601,064 70,436,963
============== =============
For the Year Ended For the Year Ended
March 31, 1999 March 31, 1998
-------------- --------------
<CAPTION>
CLASS B
- -------
<S> <C> <C>
Sold.................................... $1,168,818,328 $1,041,115,865
Issued on reinvestment of dividends..... 12,028,592 11,473,035
Redeemed................................ (1,187,620,817) ( 983,221,213)
-------------- -------------
Net increase (decrease)................. ( 6,773,897) 69,367,687
============== =============
U.S. Treasury Portfolio
-----------------------------------------
For the Year Ended For the Year Ended
March 31, 1999 March 31, 1998
-------------- --------------
<CAPTION>
CLASS A
- -------
<S> <C> <C>
Sold.................................... $1,588,809,964 $ 967,765,949
Issued on reinvestment of dividends..... 28,772,982 19,073,209
Redeemed................................ (1,363,757,682) ( 829,756,838)
-------------- -------------
Net increase (decrease)................. 253,825,264 157,082,320
============== =============
For the Year Ended For the Year Ended
March 31, 1999 March 31, 1998
-------------- --------------
<CAPTION>
CLASS B
- -------
<S> <C> <C>
Sold.................................... $ 204,200,988 $ 24,810,119
Issued on reinvestment of dividends..... 1,905,798 388,146
Redeemed................................ ( 133,146,664) ( 26,164,896)
-------------- -------------
Net increase (decrease)................. 72,960,122 ( 966,631)
============== =============
</TABLE>
- --------------------------------------------------------------------------------
<PAGE>
- --------------------------------------------------------------------------------
INSTITUTIONAL DAILY INCOME FUND
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
================================================================================
<TABLE>
<CAPTION>
4. Financial Highlights.
Money Market Portfolio
----------------------------------------------------------------------------
For the Year Ended March 31, April 6, 1995
CLASS A ---------------------------------------------- (Commencement of Sales) to
- ------- 1999 1998 1997 March 31, 1996
-------- -------- -------- --------------
<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........................ .050 0.053 0.050 0.054
Less distributions:
Dividends from net investment income......... ( .050) ( 0.053) ( 0.050) ( 0.054)
------- ------- -------- --------
Net asset value, end of period................. $ 1.00 $ 1.00 $ 1.00 $ 1.00
======= ======= ======== ========
Total Return................................... 5.12% 5.38% 5.16% 5.58%*
Ratios/Supplemental Data
Net assets, end of period (000)................ $ 282,258 $ 108,657 $ 38,220 $ 5
Ratios to average net assets:
Expenses (net of fees waived and reimbursed)+ 0.45% 0.45% 0.42% 0.41%*
Net investment income........................ 4.93% 5.25% 5.07% 5.46%*
Expenses paid indirectly..................... 0.00% 0.00% 0.01% 0.04%*
Management and administration fees waived.... 0.05% 0.07% 0.09% 0.13%*
Expenses reimbursed.......................... 0.00% 0.00% 0.00% 0.03%*
<CAPTION>
Money Market Portfolio
-------------------------------------------------------------------------------
For the Year Ended March 31, April 6, 1994
CLASS B -------------------------------------------------- (Commencement of Sales) to
- ------- 1999 1998 1997 1996 March 31, 1995
-------- -------- -------- -------- --------------
<S> <C> <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 $ 1.00
------- ------- ------- ------- -------
Income from investment operations:
Net investment income........................ .053 0.055 0.053 0.057 0.045
Less distributions:
Dividends from net investment income......... ( .053) ( 0.055) ( 0.053) ( 0.057) ( 0.045)
------- ------- ------- ------- -------
Net asset value, end of period................. $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======= ======= ======= ======= =======
Total Return................................... 5.38% 5.64% 5.42% 5.85% 5.16%*
Ratios/Supplemental Data
Net assets, end of period (000)................ $ 221,119 $ 227,893 $ 158,525 $ 127,282 $ 35,857
Ratios to average net assets:
Expenses (net of fees waived and reimbursed)+ 0.20% 0.20% 0.17% 0.16% 0.02%*
Net investment income........................ 5.27% 5.50% 5.29% 5.64% 5.14%*
Expenses paid indirectly..................... 0.00% 0.00% 0.01% 0.04% 0.00%*
Management and administration fees waived 0.05% 0.07% 0.09% 0.13% 0.13%*
Expenses reimbursed.......................... 0.00% 0.00% 0.00% 0.03% 0.25%*
* Annualized
+ Includes expenses paid indirectly.
</TABLE>
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<PAGE>
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================================================================================
<TABLE>
<CAPTION>
4. Financial Highlights. (Continued)
U.S. Treasury Portfolio
--------------------------------------------------------------------------------
For the Year Ended March 31, November 29, 1995
CLASS A ---------------------------------------------- (Commencement of Operations) to
- ------- 1999 1998 1997 March 31, 1996
-------- -------- -------- --------------
<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....................... 0.048 0.051 0.049 0.017
Less distributions:
Dividends from net investment income........ ( 0.048) ( 0.051) ( 0.049) ( 0.017)
-------- -------- -------- --------
Net asset value, end of period................ $ 1.00 $ 1.00 $ 1.00 $ 1.0
======== ======== ======== ========
Total Return.................................. 4.86% 5.24% 5.00% 5.18%*
Ratios/Supplemental Data
Net assets, end of period (000)............... $ 721,197 $ 467,372 $ 310,290 $ 291,747
Ratios to average net assets:
Expenses (net of fees waived)+.............. 0.45% 0.42% 0.42% 0.43%*
Net investment income....................... 4.71% 5.12% 4.89% 5.07%*
Expenses paid indirectly.................... 0.00% 0.00% 0.01% 0.00%
Management and administration fees waive.... 0.04% 0.07% 0.05% 0.08%*
<CAPTION>
U.S. Treasury Portfolio
---------------------------------------------------------------------------
For the Year Ended November 18, 1996
CLASS B ------------------------------------ (Commencement of Sales) to
- ------- 1999 1998 March 31, 1997
--------- --------- --------------
Per Share Operating Performance:
(for a share outstanding throughout the period)
<S> <C> <C> <C>
Net asset value, beginning of period.......... $ 1.00 $ 1.00 $ 1.00
-------- ------- --------
Income from investment operations:
Net investment income....................... 0.050 0.054 0.019
Less distributions:
Dividends from net investment income........ ( 0.050) ( 0.054) ( 0.019)
-------- ------- --------
Net asset value, end of period................ $ 1.00 $ 1.00 $ 1.00
======== ======= ========
Total Return.................................. 5.12% 5.50% 5.27%*
Ratios/Supplemental Data
Net assets, end of period (000)............... $ 79,793 $ 6,833 $ 7,799
Ratios to average net assets:
Expenses (net of fees waived)+.............. 0.20% 0.17% 0.17%*
Net investment income....................... 4.73% 5.37% 5.14%*
Expenses paid indirectly.................... 0.00% 0.00% 0.01%*
Management and administration fees waived... 0.04% 0.07% 0.05%*
* Annualized
+ Includes expenses paid indirectly.
</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, 1999, and the related statements of operations, the statements of
changes in net assets, and the financial highlights for each of the periods
indicated in the accompanying financial statements. These financial statements
and financial highlights are the responsibility of the Fund's management. Our
responsibility is to express an opinion on these financial statements and
financial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities owned as of March
31, 1999, 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 financial highlights 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, 1999, the results of its operations, the changes in
its net assets and the financial highlights for the periods indicated, in
conformity with generally accepted accounting principles.
\s\McGladrey & Pullen, LLP
April 30, 1999
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
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
IDI399AN
- --------------------------------------------------------------------------------
<PAGE>
- --------------------------------------------------------------------------------
INSTITUTIONAL
DAILY
INCOME FUND
Annual Report
March 31, 1999
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