_______________________________________________________________________________
FLORIDA
DAILY
MUNICIPAL
INCOME
FUND
Semi-Annual Report
February 28, 1995
(Unaudited)
_______________________________________________________________________________
<PAGE>
1
_______________________________________________________________________________
FLORIDA
DAILY MUNICIPAL 600 FIFTH AVENUE, NEW YORK, N.Y. 10020
INCOME FUND 212/830-5200
===============================================================================
Dear Shareholder:
We are pleased to present the semi-annual report of Florida Daily Municipal
Income Fund for the period September 19, 1994 (Commencement of Operations)
through February 28, 1995.
The Fund had net assets of $58,712,194 and 214 active shareholders as of
February 28, 1995. The Federal Reserve, during the last fiscal year, has raised
the Federal Funds Rate from 3.00% to 6.00%. Rates on tax exempt investments have
risen accordingly.
We thank you for your support and look forward to continuing to serve your cash
management needs.
Sincerely,
/S/ Steven Duff
Steven Duff
President
_______________________________________________________________________________
<PAGE>
2
_______________________________________________________________________________
FLORIDA DAILY MUNICIPAL INCOME
STATEMENT OF NET ASSETS
FEBRUARY 28, 1995
(UNAUDITED)
===============================================================================
<TABLE>
<CAPTION>
Ratings (a)
----------------
Face Maturity Standard
Amount Date Yield Value Moody's & Poor's
------ ---- ----- ----- ------- ------
Tax Exempt Commercial Paper (35.49%)
- ---------------------------------------------------------------------------------------------------------------------------
<C> <C> <C> <C> <C> <C>
1,000,000 City of Jacksonville, FL Series A 04/06/95 4.15 1,000,000 P1 A1
1,100,000 City of Orlando, FL0 5/11/95 4.15 1,100,000 P1 A1+
5,100,000 Local Government Commission Pooled
Commercial Paper Program, FL Association of Counties
LOC First Union National Bank 05/17/95 4.50 5,100,000 P1 A1
1,000,000 Florida Municipal Power Agency
Initial Pooled Loan Proj. RB Series A
LOC Morgan Guaranty Trust Company 05/16/95 4.25 1,000,000 VMIG-1 A1+
4,936,000 Orange County, FL Notes Series A 05/01/95 4.15 4,936,000 P1A1+
2,000,000 Sarasota County Public Hospital District HRB - Series 1993A
(Sarasota Memorial Hospital) 06/08/95 4.35 2,000,000 VMIG-1 A1
1,200,000 Sarasota County, FL(Sarasota Memorial Hospital Project)
Series C
LOC Sumitomo Bank, Ltd. 03/17/95 3.90 1,200,000 P1 A1
4,500,000 Sunshine State Governmental Financing
Commission RB
LOC U.B. of Switz. /Morgan Guaranty/National Westminster 03/08/95 3.70 4,500,000 VMIG-1
- ------------ ------------
20,836,000 Total Tax Exempt Commercial Paper 20,836,000
- ------------ ------------
<CAPTION>
Other Tax Exempt Investments (9.04%)
- ----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$ 2,950,000 Martin County, FL School District TAN 06/30/95 4.16%$ 2,951,007 MIG-1
1,000,000 Miami, FL TAN 09/28/95 4.04 1,004,997 MIG-1 SP-1+
1,350,000 Orange County, FL School District RAN Series A 04/06/95 3.73 1,349,894 MIG-1
- ------------ ------------
5,300,000 Total Other Tax Exempt Investments 5,305,898
- ------------ ------------
<CAPTION>
Other Variable Rate Demand Instruments (c) (51.96%)
- ----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$ 3,100,000 Broward County, FL Housing Fin Auth Multifamily Housing RB
Sanctuary Apartments Project
LOC Pittsburgh National Bank 02/01/09 4.00%$ 3,100,000 Aa3
100,000 City of Naples, FL Naples County Hospital Inc. Project
LOC Mellon Bank, N.A. 11/01/22 4.15 100,000 A1
300,000 Dade County Florida Housing Finance Authority
LOC Trust Co. Bank of Atlanta 09/01/05 3.85 300,000 NA A1+
800,000 Dade County Health Fac. Auth, FL Ser 1990
HRB (Miami Children's Hospital)
LOC Barnett Bank of Jacksonville 09/01/20 4.05 800,000 VMIG-1
</TABLE>
_______________________________________________________________________________
See notes to Financial Statements.
<PAGE>
3
_______________________________________________________________________________
FLORIDA DAILY MUNICIPAL INCOME FUND
STATEMENT OF NET ASSETS
FEBRUARY 28, 1995
(UNAUDITED)
===============================================================================
<TABLE>
<CAPTION>
Ratings (a)
----------------
Face Maturity Standard
Amount Date Yield Value Moody's & Poor's
------ ---- ----- ----- ------- ------
Other Variable Rate Demand Instruments (c) (Continued)
- ----------------------------------------------------------------------------------------------------------------------------
<C> <C> <C> <C> <C> <C> <C>
$ 500,000 Dade County, FL Ind. Dev Auth IDRB
For Dynacolor Graphics PJ
LOC ABN AMRO Bank N.V. 06/01/99 4.40% $500,000 A1+
200,000 Dade County, Florida Capital Asset Sub Series 1990
LOC Sanwa Bank, Ltd. 10/01/10 4.15 200,000 VMIG-1 A1+
2,700,000 Dade County, Florida IDRB (Florida Convalescent Assoc.)
LOC Bank of Tokyo, Ltd. 12/01/11 4.25 2,700,000 VMIG-1
100,000 Gulf Breeze, Florida Series 1985B RB
FGIC Insured 12/01/15 4.00 100,000 VMIG-1 A1+
1,400,000 Gulf Breeze, Florida Series 1985C RB
FGIC Insured 12/01/15 4.00 1,400,000 VMIG-1 A1
1,300,000 Indian River County, FL IDRB
Florida Convention Centers Project
LOC Toronto-Dominion Bank 01/01/11 3.90 1,300,000 P1
2,700,000 Jacksonville, FL HRB Series 89 (University Medical Center)
LOC Sumitomo Bank, Ltd. 02/01/19 4.20 2,700,000 VMIG-1
1,900,000 Jacksonville, FL Health Fac. Auth. HRB Baptist Med Ctr. Project
LOC Sun Bank, N.A. 06/01/08 3.95 1,900,000 VMIG-1 A1+
625,000 Jacksonville, FL IDRB Coastal Industries
LOC ABN AMRO Bank N.V. 08/01/08 3.80 625,000 A1+
710,000 Lee, FL IDRB (Christian & Missionary Alliance) - Series 85
LOC Banque Paribas 04/01/10 4.13 710,000 A1
200,000 Monroe County, FL Industrial Dev. Authority
(Beverly Enterprises) Series 1985
LOC Morgan Guaranty Trust Company 06/01/10 4.00 200,000 VMIG-1
900,000 Ocean Highway & Port Auth. FL RB
(Port, Airport & Marina Improvement)
LOC ABN AMRO Bank N.V. 12/01/20 4.50 900,000 VMIG-1 A1+
700,000 Orange County, FL Health Facilities Authority Series 1988
Mayflower Retirement Co. Proj.
LOC Banque Paribas 03/01/18 4.00 700,000 A1+
</TABLE>
_______________________________________________________________________________
See Notes to Financial Statements.
<PAGE>
4
_______________________________________________________________________________
FLORIDA DAILY MUNICIPAL INCOME FUND
STATEMENT OF NET ASSETS
FEBRUARY 28, 1995
(UNAUDITED)
===============================================================================
<TABLE>
<CAPTION>
Ratings (a)
----------------
Face Maturity Standard
Amount Date Yield Value Moody's & Poor's
------ ---- ----- ----- ------- ------
Other Variable Rate Demand Instruments (c) (Continued)
- -----------------------------------------------------------------------------------------------------------------------------------
<C> <C> <C> <C> <C> <C> <C>
$ 2,650,000 Orange County, FL IDRB
Florida Convention Centers Project A
LOC Toronto-Dominion Bank 01/01/11 3.70% $ 2,650,000 P1
1,000,000 Pinellas County, FL (Summit McGregor Property)
LOC Nationsbank 07/01/07 4.20 1,000,000 P1 A1
1,000,000 Pinellas County, FL Industry Council IDRB
Genca Corp. Project (b)
LOC Pittsburgh National Bank 11/01/09 4.30 1,000,000
1,000,000 Pinellas Cty, FL (Indian Country Project) (b)
LOC Wachovia Bank & Trust Co., N.A. 10/01/01 4.05 1,000,000
4,325,000 Polk County, FL IDA For IMC Fertilizer Inc. Project
LOC Rabobank Nederland 02/01/00 4.10 4,325,000 P1
2,300,000 St. Johns County, FL HRB
Flagler Hospital, Inc. 1986 Series A
LOC Kredietbank 08/01/16 4.00 2,300,000 VMIG-1
- ------------ ------------
30,510,000 Total Other Variable Rate Demand Instruments 30,510,000
- ------------ ------------
<CAPTION>
Put Bonds (1.70%)
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$ 1,000,000 Bay County, FL Hospital System RB
(Bay Medical Center Project) 03/06/95 3.85% 1,000,000
----------- ------------
1,000,000 Total Put Bonds 1,000,000
----------- ------------
Total Investments (98.19%) (Cost $57,651,898+) 57,651,898
Cash and Other Assets, in Excess of Liabilities (1.81%) 1,060,296
------------
Net Assets (100.00%) $ 58,712,194
============
Class A Shares, 36,711,458 Shares Outstanding (Note 3) $ 1.00
============
Class B Shares, 22,000,708 Shares Outstanding (Note 3) $ 1.00
============
+Aggregate cost for federal income tax purposes is identical.
</TABLE>
_______________________________________________________________________________
See Notes to Financial Statements.
<PAGE>
5
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===============================================================================
FOOTNOTES:
(a) Unless the variable rate demand instruments are assigned their own ratings,
the ratings noted are those of the holding company of the bank whose letter
of credit collateralizes such instruments. P1 and A1+ are the highest
ratings assigned for tax exempt commercial paper.
(b) Securities that are not rated which the Fund's Board of Directors has
determined to be of comparable quality to those rated securities in which
the Fund invests.
(c) Securities payable on demand at par including accrued interest (usually
with seven days notice) and unconditionally secured as to principal and
interest by a bank letter of credit. The interest rates are adjustable and
are based on bank prime rates or other interest rate adjustment indices.
The rate shown is the rate in effect at the date of this statement.
<TABLE>
<CAPTION>
KEY:
<S> <C> <C> <C> <C> <C>
BAN = Bond Anticipation Note RAN = Revenue Anticipation Note
CI = Certificate of Indebtedness RAW = Revenue Anticipation Warrant
CLN = Construction Loan Note RB = Revenue Bond
FAN = Fund Anticipation Note RN = Revenue Note
GAN = Grant Anticipation Note TAN = Tax Anticipation Note
HRB = Hospital Revenue Bond TLN = Tax Loan Note
IDRB = Industrial Development Revenue Bond TRAN = Tax and Revenue Anticipation Note
PCRB = Pollution Control Revenue Bond
</TABLE>
_______________________________________________________________________________
See Notes to Financial Statements.
<PAGE>
6
_______________________________________________________________________________
FLORIDA DAILY MUNICIPAL INCOME FUND
STATEMENT OF OPERATIONS
SEPTEMBER 19, 1994 (COMMENCEMENT OF OPERATIONS) TO FEBRUARY 28, 1995
(UNAUDITED)
===============================================================================
<TABLE>
<CAPTION>
INVESTMENT INCOME
<S> <C>
Income:
Interest...................................................... $ 833,860
---------
Expenses: (Note 2)
Custodian, shareholder servicing and related shareholder expenses 75,184
Legal, compliance and filing fees............................. 11,618
Audit and accounting.......................................... 25,152
Directors' fees............................................... 4,884
Amortization of organization expenses......................... 3,000
Other......................................................... 1,018
---------
Total expenses............................................. 120,856
Less: Reimbursement of expenses (Note 2)................... (71,021)
---------
Net expenses............................................... 49,835
---------
Net investment income............................................ 784,025
REALIZED GAIN (LOSS) ON INVESTMENTS
Net realized gain (loss) on investments.......................... 28
---------
Increase in net assets from operations........................... $ 784,053
=========
</TABLE>
_______________________________________________________________________________
See Notes to Financial Statements.
<PAGE>
7
_______________________________________________________________________________
FLORIDA DAILY MUNICIPAL INCOME FUND
STATEMENT OF CHANGES IN NET ASSETS
(UNAUDITED)
===============================================================================
<TABLE>
<CAPTION>
September 19, 1994
(Commencement of Operations)
to February 28, 1995
--------------------
INCREASE (DECREASE) IN NET ASSETS
<S> <C>
Operations:
Net investment income................................... $ 784,025
Net realized gain (loss) on investments................. 28
-------------
Increase in net assets from operations..................... 784,053
Dividends to shareholders from net investment income
Class A ................................................ (449,193)
Class B................................................. (334,832)
Transactions in shares of beneficial interest (Note 3)
Class A ................................................ 36,711,458
Class B................................................. 21,900,708
-------------
Total increase (decrease)............................. 58,612,194
Net assets:
Beginning of period..................................... 100,000
-------------
End of period........................................... $ 58,712,194
=============
</TABLE>
_______________________________________________________________________________
See Notes to financial Statements.
<PAGE>
8
_______________________________________________________________________________
FLORIDA DAILY MUNICIPAL INCOME FUND
NOTES TO FINANCIAL STATEMENTS
(UNAUDITED)
===============================================================================
1. Summary of Accounting Policies.
Florida Daily Municipal Income Fund is a no-load, non-diversified, open-end
management investment company registered under the Investment Company Act of
1940. The Fund was established as a Massachusetts Business Trust on August 31,
1994 and commenced operations on September 19, 1994. The Fund has two classes of
stock authorized, Class A and Class B. The Class A shares are subject to a
service fee pursuant to the Distribution and Service Plan. The Class B shares
are not subject to a service fee. In all other respects the Class A and Class B
shares represent the same interest in the income and assets of the Fund. Its
financial statements are prepared in accordance with generally accepted
accounting principles for investment companies as follows
a) Valuation of Securities -
Investments are valued at amortized cost. Under this valuation method, a
portfolio instrument is valued at cost and any discount or premium is
amortized on a constant basis to the maturity of the instrument. The
maturity of variable rate demand instruments is deemed to be the longer of
the period required before the Fund is entitled to receive payment of the
principal amount or the period remaining until the next interest rate
adjustment.
b) Federal Income Taxes -
It is the Fund's policy to comply with the requirements of the Internal
Revenue Code applicable to regulated investment companies and to distribute
all of its tax exempt and taxable income to its shareholders. Therefore, no
provision for federal income tax is required.
c) Dividends and Distributions -
Dividends from investment income (excluding capital gains and losses, if
any, and amortization of market discount) are declared daily and paid
monthly. Distributions of net capital gains, if any, realized on sales of
investments are made after the close of the Fund's fiscal year, as declared
by the Fund's Board of Directors.
d) General -
Securities transactions are recorded on a trade date basis. Interest income
is accrued as earned. Realized gains and losses from securities
transactions are recorded on the identified cost basis.
2. Investment Management Fees and Other Transactions with Affiliates.
Under the Investment Management Contract, the Fund pays an investment management
fee to Reich & Tang Asset Management L.P. (Manager) at the annual rate of .40%
of the Fund's average daily net assets. The Manager is required to reimburse the
Fund for its expenses (exclusive of interest, taxes, brokerage, and
extraordinary expenses) to the extent that such expenses, including the
investment management and the shareholder servicing 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. No such
reimbursement was required for the period ended February 28, 1995.
Pursuant to an Administrative Services Contract the Fund pays to the Manager an
annual fee of .20% of the Fund's average daily net assets.
_______________________________________________________________________________
<PAGE>
9
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===============================================================================
2. Investment Management Fees and Other Transactions with Affiliates(Continued).
Pursuant to a Distribution Plan adopted under Securities and Exchange Commission
Rule 12b-1, the Fund and Reich & Tang Distributors L.P. (the Distributor) have
entered into a Distribution Agreement and a Shareholder Servicing Agreement,
only with respect to Class A shares of the Fund. For its services under the
Shareholder Servicing Agreement, the Distributor receives from the Fund with
respect only to the Class A shares, a fee equal to .25% of the Fund's average
daily net assets. There were no additional expenses borne by the Fund pursuant
to the Distribution Plan.
During the period ended February 28, 1995, the Manager and the Distributor
voluntarily waived investment management fees, administration fees and
shareholder servicing fees of $84,300, $42,150 and $30,927, respectively. In
addition, although not required to do so, the Manager has agreed to reimburse
expenses amounting to $71,021.
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 "Custodian,
shareholder servicing and related shareholder expenses" are fees of $628 paid to
Fundtech Services L.P., an affiliate of the Manager, as servicing agent for the
Fund.
3.Transactions in Shares of Beneficial Interest.
At February 28, 1995, an unlimited number of shares of beneficial interest ($.01
par value) were authorized and capital paid in amounted to $58,712,166.
Transactions, all at $1.00 per share, were as follows:
<TABLE>
<CAPTION>
Class A
September 19, 1994
(Commencement of Operations) to
February 28, 1995
-----------------
<S> <C>
Sold...................................... 169,316,517
Issued on reinvestment of dividends....... 356,091
Redeemed.................................. (132,961,150)
-------------
Net increase (decrease)................... 36,711,458
=============
<CAPTION>
Class B
September 19, 1994
(Commencement of Operations) to
February 28, 1995
-----------------
<S> <C>
Sold...................................... 111,637,521
Issued on reinvestment of dividends....... 293,803
Redeemed.................................. (90,030,616)
-------------
Net increase (decrease)................... 21,900,708
=============
</TABLE>
_______________________________________________________________________________
<PAGE>
10
_______________________________________________________________________________
FLORIDA DAILY TAX FREE INCOME FUND
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
(UNAUDITED)
===============================================================================
4. Sales of Securities.
Accumulated undistributed realized gains at February 28, 1995 amounted to $28.
5. Concentration of Credit Risk.
The Fund invests primarily in obligations of political subdivisions of the State
of Florida and, accordingly, is subject to the credit risk associated with the
non-performance of such issuers. Approximately 71% of these investments are
further secured, as to principal and interest, by letters of credit issued by
financial institutions. The Fund maintains a policy of monitoring its exposure
by reviewing the credit worthiness of the issuers, as well as that of the
financial institutions issuing the letters of credit, and by limiting the amount
of holdings with letters of credit from one financial institution.
6. Selected Financial Information.
<TABLE>
<CAPTION>
September 19, 1994
(Commencement of Operations) to
February 28, 1995
-----------------
Class A Class B
------- -------
Per Share Operating Performance:
(for a share outstanding throughout the period)
<S> <C> <C>
Net asset value, beginning of period............... $ 1.000 $ 1.000
--------- ------------
Income from investment operations
Net investment income.............................. 0.015 0.017
Less distributions:
Dividends from net investment income............... (0.015) (0.017)
--------- ------------
Net asset value, end of period..................... $ 1.000 $ 1.000
========= ============
Total Return....................................... 3.70%* 3.90%*
Ratios/Supplemental Data...........................
Net assets, end of period(000)..................... $ 36,711 $ 22,001
Ratios to average net assets:
Expenses......................................... 0.34%+ 0.09%+
Net investment income............................ 3.63%+ 3.85%+
</TABLE>
* Annualized
+ Net of management and administration fees waived equivalent to .40%, and .20%,
respectively plus expenses reimbursed equivalent to .34% of average net assets.
In addition shareholder servicing fees equivalent to .25% were waived only with
respect to Class A.
_______________________________________________________________________________
<PAGE>
11
[This Page Intentionally Left Blank.]
<PAGE>
12
_______________________________________________________________________________
_______________________________________________________________________________
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.
_______________________________________________________________________________
Florida Daily Municipal 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, MO 64105
Transfer Agent &
Dividend Disbursing Agent
Supervised Service Company
811 Main Street
Kansas City, MO 64105
_______________________________________________________________________________
