<PAGE>
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FLORIDA
DAILY MUNICIPAL 600 Fifth Avenue, New York, NY 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 1, 1996 through February 28, 1997.
The Fund had net assets of $101,663,175 and 487 active shareholders as of
February 28, 1997. Dividends earned on a share held throughout the period were
$.015 and $.016, for Class A shares and Class B shares, respectively. When
adjusted for the compounding effect of the reinvestment of dividends, this
represents a yield of 3.03% and 3.29% on an annual basis for Class A shares and
Class B shares, respectively.
We thank you for your support and look forward to continuing to serve your cash
management needs.
Sincerely,
/s/ Steven W. Duff
Steven W. Duff
President
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<PAGE>
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FLORIDA DAILY MUNICIPAL INCOME FUND
STATEMENT OF NET ASSETS
FEBRUARY 28, 1997
(UNAUDITED)
================================================================================
<TABLE>
<CAPTION>
Ratings (a)
---------------
Face Maturity Value Standard
Amount Date Yield (Note 1) Moody's & Poors
------ ---- ----- ------ ------- -----
Other Tax Exempt Investments (11.83%)
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$1,000,000 Halifax Hospital Medical Center TAN
(Daytona Beach, Florida) - Series 1996 04/15/97 3.70% $ 1,000,056 MIG-1
2,000,000 Martin County, FL - School District TAN
(District Operating Millage) - Series 1996 06/30/97 3.75 2,002,824 MIG-1
2,000,000 Palm Beach County, FL School District TAN - Series 1996 09/26/97 3.85 2,006,540 SP-1+
2,000,000 Puerto Rico Commonwealth TRAN 07/30/97 3.40 2,004,569 MIG-1 SP-1+
5,000,000 The School District of Seminole County, FL RAN Series 1997 02/17/98 3.52 5,014,127 SP-1+
---------- -----------
12,000,000 Total Other Tax Exempt Investments 12,028,116
---------- -----------
<CAPTION>
Other Variable Rate Demand Instruments (c) (75.15%)
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$1,000,000 Atlantic Beach, FL (Fleet Landing) - Series B
LOC Barnett Bank of Jacksonville 10/01/24 3.50% $ 1,000,000 VMIG-1
3,200,000 Broward County, FL HFA MHRB (Sanctuary Apartments Project)
LOC PNC Bank 02/01/09 3.40 3,200,000 VMIG-1
400,000 Broward County, FL IDRB (Allied Signal Incorporated) 03/01/99 3.45 400,000 A1
1,100,000 Citrus Park Community Development
District Capital Improvement Bonds - Series 1996
LOC Dresdner Bank A.G. 11/01/16 3.40 1,100,000 VMIG-1 A1+
500,000 City of Tampa, FL Occupation License Tax Boards - Series 1996A
FGIC Insured 03/01/27 3.40 500,000 VMIG-1 A1+
505,000 Dade County, FL Aviation RB - Series V
LOC Suntrust 10/01/07 3.30 505,000 VMIG-1 A1
3,600,000 Dade County, FL HFA MHRB (Gables Point) - Series 1985
Fannie Mae Collateralized 05/15/05 3.30 3,600,000 A1+
2,600,000 Dade County, FL IDA RB (Florida Convalescent Association)
LOC Bank of Tokyo - Mitsubishi Bank, Ltd. 12/01/11 3.50 2,600,000 VMIG-1
515,000 Escambia County, FL IDRB (Gelman Sciences, Incorporation Project)
LOC First National Bank of Chicago 07/01/04 3.35 515,000 A1+
1,100,000 Florida HFA MHRB (Falls of Venice Project) (b)
LOC PNC Bank 12/01/11 3.45 1,100,000
1,000,000 Florida Housing Finance Agency (Heron Park Project) Series - V
LOC Nations Bank 12/01/26 3.50 1,000,000 VMIG-1
3,000,000 Florida Housing Finance Agency MHRB
(Monterey Meadows Apartment Project) - Series 1985
LOC Citibank 12/01/07 3.40 3,000,000 A1+
915,000 Gulf Breeze, FL RB - Series 1985B 12/01/15 3.35 915,000 VMIG-1 A1+
</TABLE>
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See Notes to Financial Statements.
<PAGE>
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<TABLE>
<CAPTION>
Ratings (a)
----------------
Face Maturity Value Standard
Amount Date Yield (Note 1) Moody's & Poors
------ ---- ----- ------ ------- -----
Other Variable Rate Demand Instruments (c) (Continued)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$1,270,000 Gulf Breeze, FL RB - Series 1985C
FGIC Insured 12/01/15 3.35% $ 1,270,000 VMIG-1 A1
1,000,000 Highlands County, HFA RB
(Adventist Health System/Sunbolt Inc.) - Series 1996B 10/01/26 3.30 1,000,000 VMIG-1 A1+
7,750,000 Hillsborough County, FL IDA PCR
(Tampa Electric Company Cannon) 05/15/18 3.45 7,750,000 VMIG-1 A1+
1,100,000 Indian River County, FL IDR (Florida Convention Centers Project)
LOC Toronto-Dominion Bank 01/01/11 3.60 1,100,000 P1
1,300,000 Jacksonville, FL HFFA HRB (Baptist Medical Center Project) 06/01/08 3.45 1,300,000 VMIG-1 A1+
2,700,000 Jacksonville, FL HRB (University Medical Center) - Series 1989
LOC Sumitomo Bank, Ltd. 02/01/19 3.50 2,700,000 VMIG-1
1,000,000 Jacksonville, FL IDRB
(University of Florida Health Science Center) - Series 1989
LOC Barnett Bank of Jacksonville 07/01/19 3.55 1,000,000 VMIG-1
700,000 Jacksonville, FL PCRB Florida Power & Light Corporation Project 05/01/29 3.45 700,000 VMIG-1 A1
710,000 Lee, Fl IDRB (Christian & Missionary Alliance) - Series 1985
LOC Banque Paribas 04/01/10 3.43 710,000 A1
1,750,000 Marion County, FL IDA
(Hamilton Products, Incorporation Project) - Series 1995 (b)
LOC Comerica Bank 11/01/15 3.60 1,750,000
200,000 Monroe County,FL IDA (Beverly Enterprises) - Series 1985
LOC Morgan Guaranty Trust Company 06/01/10 3.35 200,000 VMIG-1
900,000 Ocean Highway & Port Authority RB - Series 1990
LOC ABN AMRO Bank N.V. 12/01/20 3.35 900,000 VMIG-1 A1+
900,000 Ocean Highway & Port Authority, FL RB
(Port, Airport & Marina Improvement)
LOC ABN AMRO Bank N.V. 12/01/20 3.35 900,000 VMIG-1 A1+
1,000,000 Orange County Health Facilities Authority RB
(Adventist Health System/Sunbelt Obligation)
LOC Rabobank Nederland 11/15/26 3.30 1,000,000 A1+
7,740,000 Orange County, FL HFFA
(Mayflower Retirement Company Project) Series 1998
LOC Rabobank Nederland 03/01/18 3.50 7,740,000 A1+
2,100,000 Orange County, FL Health Facility -
Adventist Orange County Health Facility
LOC Banque Paribas 11/15/14 3.50 2,100,000 VMIG-1 A1
</TABLE>
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See Notes to Financial Statements.
<PAGE>
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FLORIDA DAILY MUNICIPAL INCOME FUND
STATEMENT OF NET ASSETS (CONTINUED)
FEBRUARY 28, 1997
(UNAUDITED)
================================================================================
<TABLE>
<CAPTION>
Ratings (a)
----------------
Face Maturity Value Standard
Amount Date Yield (Note 1) Moody's & Poors
------ ---- ----- ------ ------- -----
Other Variable Rate Demand Instruments (c) (Continued)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$ 950,000 Orange County, FL IDRB
(Florida Convention Centers Project) - Series A
LOC Toronto-Dominion Bank 01/01/11 3.40% $ 950,000 P1
2,000,000 Palm Beach County, FL (Norton Gallery of Art Project) - Series 1995
LOC Northern Trust 05/01/25 3.30 2,000,000 A1+
600,000 Palm Beach County, FL Industrial Development RB
LOC Bank of Tokyo - Mitsubishi Bank, Ltd. 11/01/11 3.50 600,000 VMIG-1
1,000,000 Pinellas County, FL (Indian Country Project) (b)
LOC Wachovia Bank & Trust Co., N.A. 10/01/01 3.35 1,000,000
5,190,000 Pinellas County, FL HFFA (St. Mark Village Project) - Series 1987
LOC Nations Bank 03/01/17 3.40 5,190,000 A1
4,500,000 Pinellas County, FL Health Facilities (Pooled Hospital Loan Project)
LOC Chase Manhattan Bank, N.A. 12/01/15 3.50 4,500,000 VMIG-1 A1
1,000,000 Pinellas County, FL Industry Council IDRB
(Genca Corporation Project) (b)
LOC PNC Bank 11/01/09 3.50 1,000,000
7,700,000 St. Lucie County, FL PCRB (Florida Power & Light Company Project) 03/01/27 3.45 7,700,000 VMIG-1 A1+
1,900,000 University of North Florida
LOC First Union National Bank 11/01/24 3.35 1,900,000 VMIG-1
---------- ----------
76,395,000 Total Other Variable Rate Demand Instruments 76,395,000
---------- -----------
<CAPTION>
Put Bonds (d) (3.43%)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$ 1,510,000 HFA of Escambia County, FL Single Family Mortgage RB
(Backed by GNMA & FNMA Collateral) 02/20/98 3.75% $ 1,510,000 VMIG-1
980,000 Putnam County, FL Development Authority
(Seminole Electric) - Series H-3 03/15/97 3.80 980,000 VMIG-1 A1+
1,000,000 Putnam County, FL Development Authority
(Seminole Electric) - Series 1984 D 06/15/97 3.45 1,000,000 VMIG-1 A1+
---------- -----------
3,490,000 Total Put Bonds 3,490,000
---------- -----------
<CAPTION>
Revenue Bond (1.72%)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$ 750,000 Escanabia County, FL HFA Single Family Mortgage RB
(Multi-County Program) - Series 1996B 04/01/97 3.65% $ 750,000 VMIG-1
1,000,000 Hillsborough County, FL HFA
Single Family Mortgage RB - Series 1997 03/15/98 3.65 1,000,000 VMIG-1 AA
---------- -----------
1,750,000 Total Revenue Bond 1,750,000
---------- -----------
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See Notes to Financial Statements.
</TABLE>
<PAGE>
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<TABLE>
<CAPTION>
Ratings (a)
----------------
Face Maturity Value Standard
Amount Date Yield (Note 1) Moody's & Poors
------ ---- ----- ------ ------- -----
Tax Exempt Commercial Paper (9.31%)
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$1,200,000 City of Gainesville, FL (Utilities System) - Series C 04/09/97 3.45% $ 1,200,000 P1 A1+
1,100,000 City of Orlando, FL CP Notes (Capital Improvements) 03/06/97 3.55 1,100,000 P1 A1+
1,000,000 Florida Municipal Power Agency (Initial Pool Loan Project)
LOC First Union National Bank 06/18/97 3.50 1,000,000 VMIG-1 A1+
1,000,000 Florida Municipal Power Agency RB
(Initial Pool Loan Project) - Series A
LOC First Union National Bank 04/10/97 3.40 1,000,000 P1 A1
1,660,000 Sarasota County Public Hospital District
(Sarasota Memorial Hospital Project) - Series A
LOC Suntrust 03/26/97 3.40 1,660,000 P1 A1+
1,500,000 St. Lucie,County, FL 1994 Bond 05/07/97 3.55 1,500,000 VMIG-1 A1+
2,000,000 Sunshine State Government Financing Commission RB - Series 1986
LOC Union Bank of Switzerland/Morgan Guaranty/
National Westminster 04/10/97 3.40 2,000,000 VMIG-1
---------- -----------
9,460,000 Total Tax Exempt Commercial Paper 9,460,000
---------- -----------
Total Investments (101.44%)(Cost $103,123,116+) 103,123,116
Liabilities in Excess of Cash and Other Assets (-1.44%) ( 1,459,941)
------------
Net Assets (100.00%) $101,663,175
============
Net Asset Value, offering and redemption price per share:
Class A Shares, 84,579,050 Shares Outstanding (Note 3) $ 1.00
===========
Class B Shares, 17,088,022 Shares Outstanding (Note 3) $ 1.00
===========
+ Aggregate cost for federal income tax purposes is identical.
</TABLE>
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See Notes to Financial Statements.
<PAGE>
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FLORIDA DAILY MUNICIPAL INCOME FUND
STATEMENT OF NET ASSETS (CONTINUED)
FEBRUARY 28, 1997
(UNAUDITED)
================================================================================
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 Trustees 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 if indicated, 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.
(d) The maturity date indicated is the next put date.
<TABLE>
KEY:
<S> <C> <C> <C>
CP = Commercial Paper PCR = Pollution Control Revenue
HFA = Housing Finance Authority PCRB = Pollution Control Revenue Bond
HFFA = Health Facility Finance Authority RAN = Revenue Anticipation Note
HRB = Hospital Revenue Bond RB = Revenue Bond
IDA = Industrial Development Authority TAN = Tax Anticipation Note
IDRB = Industrial Development Revenue Bond TRAN = Tax and Revenue Anticipation Note
MHRB = Multi-family Housing Revenue Bond
</TABLE>
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See Notes to Financial Statements.
<PAGE>
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FLORIDA DAILY MUNICIPAL INCOME FUND
STATEMENT OF OPERATIONS
SIX MONTHS ENDED FEBRUARY 28, 1997
(UNAUDITED)
================================================================================
<TABLE>
INVESTMENT INCOME
<S> <C>
Income:
Interest.................................................................... $ 1,287,403
--------------
Expenses: (Note 2)
Investment management fee................................................... 148,571
Administration fee.......................................................... 78,000
Shareholder servicing fee................................................... 72,467
Custodian fee............................................................... 4,447
Shareholder servicing and related shareholder expenses...................... 26,692
Legal, compliance and filing fees........................................... 22,810
Audit and accounting........................................................ 32,539
Trustees' fees.............................................................. 3,007
Amortization of organization expenses....................................... 5,674
Other....................................................................... 2,760
--------------
Total expenses........................................................... 396,967
Less: Expenses paid indirectly (Note 2).................................. ( 5,963)
Less: Fees waived (Note 2)............................................... ( 222,857)
--------------
Net expenses............................................................. 168,147
--------------
Net investment income........................................................... 1,119,256
REALIZED GAIN (LOSS) ON INVESTMENTS
Net realized gain (loss) on investments......................................... -0-
--------------
Increase in net assets from operations.......................................... $ 1,119,256
==============
</TABLE>
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See Notes to Financial Statements.
<PAGE>
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FLORIDA DAILY MUNICIPAL INCOME FUND
STATEMENTS OF CHANGES IN NET ASSETS
================================================================================
<TABLE>
<CAPTION>
Six Months
Ended Year
February 28, 1997 Ended
(Unaudited) August 31, 1996
--------- ---------------
INCREASE (DECREASE) IN NET ASSETS
<S> <C> <C>
Operations:
Net investment income...................................... $ 1,119,256 $ 1,341,397
Net realized gain (loss) on investments.................... -0- -0-
----------------- --------------
Increase in net assets from operations.......................... 1,119,256 1,341,397
Dividends to shareholders from net investment income:
Class A.................................................... ( 856,424)* ( 821,675)*
Class B.................................................... ( 262,832)* ( 519,722)*
Transactions in shares of beneficial interest (Note 3):
Class A.................................................... 47,818,937 15,783,783
Class B.................................................... 7,475,275 ( 562,659)
--------------- ---------------
Total increase......................................... 55,294,212 15,221,124
Net assets:
Beginning of period........................................ 46,368,963 31,147,839
---------------- --------------
End of period.............................................. $ 101,663,175 $ 46,368,963
================ ==============
* Designated as exempt-interest dividends for federal income tax purposes.
</TABLE>
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See Notes to Financial Statements.
<PAGE>
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FLORIDA DAILY MUNICIPAL INCOME FUND
NOTES TO FINANCIAL STATEMENTS
(UNAUDITED)
================================================================================
1. Summary of Accounting Policies.
Florida Daily Municipal Income Fund, a Massachusetts Business Trust, is a
no-load, non-diversified, open-end management investment company registered
under the Investment Company Act of 1940. The Fund is a short-term, tax exempt
money market fund. 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. Additionally, the Fund 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 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) 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.
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.
Pursuant to an Administrative Services Contract the Fund pays to the Manager an
annual fee of .21% of the Fund's average daily net assets.
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<PAGE>
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FLORIDA DAILY MUNICIPAL INCOME FUND
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
(UNAUDITED)
================================================================================
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, 1997 the Manager voluntarily waived
investment management fees and administration fees of $148,571 and $74,286,
respectively.
Included in the statement of operations under the caption "Custodian fee" and
"Shareholder servicing and related shareholder expenses" are expense offsets of
$5,963.
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 $18,625 paid to Reich & Tang
Services L.P., an affiliate of the Manager, as servicing agent for the Fund.
3. Transactions in Shares of Beneficial Interest.
At February 28, 1997, an unlimited number of shares of beneficial interest ($.01
par value) were authorized and capital paid in amounted to $101,667,072.
Transactions, all at $1.00 per share, were as follows:
<TABLE>
<CAPTION>
Class A Six Months Ended Year Ended
February 28, 1997 August 31, 1996
----------------- ----------------
<S> <C> <C>
Sold............................................ 183,672,940 97,806,611
Issued on reinvestment of dividends............. 767,142 750,946
Redeemed........................................ ( 136,621,145) ( 82,773,774)
----------------- ----------------
Net increase ................................... 47,818,937 15,783,783
================= ================
<CAPTION>
Class B Six Months Ended Year Ended
February 28, 1997 August 31, 1996
----------------- -----------------
<S> <C> <C>
Sold............................................ 61,012,130 141,842,014
Issued on reinvestment of dividends............. 253,841 477,971
Redeemed........................................ ( 53,790,696) ( 142,882,644)
----------------- -----------------
Net increase (decrease)......................... 7,475,275 ( 562,659)
================= =================
</TABLE>
4. Sales of Securities.
Accumulated undistributed realized losses at February 28, 1997, amounted to
$3,897. Such amount represents tax basis capital losses which may be carried
forward to offset future capital gains. Such losses expire August 31, 2003.
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 55% 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.
- --------------------------------------------------------------------------------
<PAGE>
- --------------------------------------------------------------------------------
================================================================================
6. Selected Financial Information.
<TABLE>
<CAPTION>
Six Month Ended Year Ended Period Ended
Class A February 28, 1997 August 31, 1996 August 31, 1995**
- ------- ----------------- --------------- -----------------
<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...................................... 0.015 0.031 0.032
Less distributions:
Dividends from net investment income....................... 0.015 ( 0.031 ) ( 0.032 )
--------------- ------------- -------------
Net asset value, end of period............................... $ 1.00 $ 1.00 $ 1.00
=============== ============= =============
Total Return................................................. 3.03%* 3.09% 3.60%*
Ratios/Supplemental Data
Net assets, end of period (000).............................. $ 84,577 $ 36,758 $ 20,974
Ratios to average net assets:
Expenses..................................................... 0.52%* 0.56% 0.40%*
Net investment income........................................ 2.95%* 3.05% 3.54%*
Expenses paid indirectly..................................... 0.02%* 0.06% --
Management and Administration fees waived and expense reimbursed 0.60%* 0.67% 0.95%*
<CAPTION>
Six Month Ended Year Ended Period Ended
Class B February 28, 1997 August 31, 1996 August 31, 1995**
- ------- ----------------- --------------- -----------------
<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...................................... 0.016 0.033 0.036
Less distributions:
Dividends from net investment income....................... 0.016 ( 0.033 ) ( 0.036 )
--------------- ------------- ---------------
Net asset value, end of period............................... $ 1.00 $ 1.00 $ 1.00
=============== ============= ===============
Total Return................................................. 3.29%* 3.35% 3.84%*
Ratios/Supplemental Data
Net assets, end of period (000).............................. $ 17,086 9,611 $ 10,174
Ratios to average net assets:
Expenses..................................................... 0.27%* 0.31% 0.14%*
Net investment income........................................ 3.22%* 3.34% 3.78%*
Expenses paid indirectly..................................... 0.02%* 0.06% --
Management and Administration fee waived and expense reimbursed 0.60%* 0.67% 0.95%*
* Annualized
** Class A commenced operations on October 6, 1994 and Class B commenced
operations on September 19, 1994.
</TABLE>
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<PAGE>
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- -----------------------------------------------------
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, Missouri 64105
Transfer Agent & Dividend
Disbursing Agent
Reich & Tang Services, L.P.
600 Fifth Avenue
New York, NY 10020
- --------------------------------------------------------------------------------
<PAGE>
- --------------------------------------------------------------------------------
FLORIDA
DAILY
MUNICIPAL
INCOME
FUND
Semi-Annual Report
February 28, 1997
(Unaudited)
- --------------------------------------------------------------------------------
<PAGE>
