As filed with the Securities and Exchange Commission on January 5, 2010
Investment Company Act File Number 811-3955
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF
REGISTERED MANAGEMENT INVESTMENT COMPANIES
New York Daily Tax Free Income Fund, Inc.
(Exact name of registrant as specified in charter)
1411 Broadway, 28th Floor
New York, NY 10018
(Address of principal executive offices) (Zip code)
Christine Manna
c/o Reich & Tang Asset Management, LLC
1411 Broadway, 28th Floor
New York, NY 10018
(Name and address of agent for service)
Registrant’s telephone number, including area code: 212-830-5200
Date of fiscal year end: April 30
Date of reporting period: October 31, 2010
Item 1: Report to Stockholders
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New York Daily Tax Free Income Fund, Inc. Shareholder Letter |
Dear Shareholder:
Since its inception in 1974, Reich & Tang Funds has taken a proactive approach to risk management. Our goals of safety and preservation of capital continually drive our investment analysis and decisions. As an organization, we continue to believe that thorough, fundamental credit analysis is the key to continued success in our business.
Reich & Tang is proud to be part of Natixis Global Asset Management, one of the world’s largest money management organizations. Natixis brings together the expertise of multiple specialized investment managers based in the United States, Europe and Asia to offer a wide spectrum of equity, fixed income and alternative investment strategies. For more information on Natixis Global Asset Management, please visit us at www.globalam.natixis.com.
While it is difficult to predict the future as we navigate through multiple complex factors in the market, we believe that our fundamental approach to money market funds and our corporate structure enable us to continue to be a leader in providing funds that focus on preservation of capital and liquidity for our shareholders and valued clients. We welcome any questions you may have about the investments in any of our portfolios and stand ready to respond to you as we have for 36 years.
Sincerely,

Michael P. Lydon
President
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New York Daily Tax Free Income Fund, Inc. Expense Chart For The Six Months Ended October 31, 2010 (Unaudited) |
As a shareholder of the Fund, you incur the following ongoing costs: management fees and other Fund expenses. You may also incur distribution and/or service (12b-1) fees. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period May 1, 2010 through October 31, 2010.
The first line of the table below provides information about actual account values and actual expenses. You may use information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled “Expenses Paid During the Period” to estimate the expenses you paid on your account during this period.
: | | Hypothetical Example for Comparison Purposes |
The second line of the table below provides information about hypothetical account values and hypothetical expenses based on the Funds’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads), redemption fees, or exchange fees that you may incur in other mutual funds. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds.
| | | | | | | | | | | | | | | | |
Class A Shares | | Beginning Account Value 05/01/10 | | | Ending Account Value 10/31/2010 | | | Expenses Paid During the Period* | | | Annualized Expense Ratio* | |
Actual | | | $1,000.00 | | | | $1,000.00 | | | | $1.97 | | | | 0.39% | |
Hypothetical (5% return before expenses) | | | $1,000.00 | | | | $1,023.24 | | | | $1.99 | | | | 0.39% | |
| | | | | | | | | | | | | | | | |
Class B Shares | | Beginning Account Value 05/01/10 | | | Ending Account Value 10/31/2010 | | | Expenses Paid During the Period* | | | Annualized Expense Ratio* | |
Actual | | | $1,000.00 | | | | $1,000.00 | | | | $2.02 | | | | 0.40% | |
Hypothetical (5% return before expenses) | | | $1,000.00 | | | | $1,023.19 | | | | $2.04 | | | | 0.40% | |
| | | | | | | | | | | | | | | | |
New York Tax Exempt Liquidity Fund (“Advantage Shares”) | | Beginning Account Value 05/01/10 | | | Ending Account Value 10/31/2010 | | | Expenses Paid During the Period* | | | Annualized Expense Ratio* | |
Actual | | | $1,000.00 | | | | $1,000.00 | | | | $1.97 | | | | 0.39% | |
Hypothetical (5% return before expenses) | | | $1,000.00 | | | | $1,023.24 | | | | $1.99 | | | | 0.39% | |
* | Expenses are equal to the Fund’s annualized expense ratios multiplied by the average account value over the period (May 1, 2010 through October 31, 2010), multiplied by 184/365 (to reflect the most recent fiscal half-year). |
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|
New York Daily Tax Free Income Fund, Inc. Schedule of Investments October 31, 2010 (Unaudited) |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | Rating (a) | |
Face Amount | | | | | Maturity Date | | | Interest Rate | | | Value (Note 1) | | | Moody’s | | | Standard & Poor’s | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| TAX EXEMPT COMMERCIAL PAPER (1.61%) | |
| | | | | | |
$ | 4,000,000 | | | New York Long Island Power Authority LOC State Street Bank & Trust Company | | | 01/05/11 | | | | 0.27 | % | | $ | 4,000,000 | | | | P-1 | | | | A-1+ | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| 4,000,000 | | | Total Tax Exempt Commercial Paper | | | | | | | | | | | 4,000,000 | | | | | | | | | |
| | | | | �� | | | | | | | | | | | | | | | | | | | |
| TAX EXEMPT GENERAL OBLIGATION NOTES AND BONDS (18.37%) | | | | | | | | | |
| | | | | | |
$ | 6,500,000 | | | Chazy CSD, Clinton County, NY GO BAN – Series 2010 (b) | | | 06/30/11 | | | | 1.25 | % | | $ | 6,531,776 | | | | | | | | | |
| | | | | | |
| 7,195,000 | | | City School District of the City of Beacon Dutchess County, NY BAN – Series 2010 (b) | | | 06/30/11 | | | | 0.80 | | | | 7,216,187 | | | | | | | | | |
| | | | | | |
| 3,000,000 | | | City School District of the City of Oneonta,Otsego County, NY GO RAN – Series 2010 (b) | | | 08/12/11 | | | | 0.98 | | | | 3,006,226 | | | | | | | | | |
| | | | | | |
| 1,000,000 | | | Dundee CSD, Yates and Schuyler Counties, NY BAN – Series 2010 | | | 06/22/11 | | | | 1.17 | | | | 1,002,081 | | | | MIG-1 | | | | A-1 | |
| | | | | | |
| 4,995,000 | | | Evans – Brant (lake Shore) CSD, Erie County, NY BAN – Series 2010 | | | 10/25/11 | | | | 0.70 | | | | 5,009,591 | | | | | | | | A-1 | |
| | | | | | |
| 4,000,000 | | | Medina CSD, Orleans, Niagara and Genesee Counties, NY BAN – Series 2010 (b) | | | 06/24/11 | | | | 0.85 | | | | 4,003,843 | | | | | | | | | |
| | | | | | |
| 7,000,000 | | | North Syracuse CSD, Onondaga County, NY GO RAN – Series 2010 (b) | | | 06/17/11 | | | | 0.85 | | | | 7,028,149 | | | | | | | | | |
| | | | | | |
| 3,500,000 | | | Pearl River Union Free School District, County of Rockland, NY TAN 2010 – 2011 (b) | | | 06/29/11 | | | | 0.83 | | | | 3,503,877 | | | | | | | | | |
| | | | | | |
| 6,500,000 | | | Peru CSD, Clinton County, NY BAN – Series 2010 (b) | | | 06/22/11 | | | | 0.97 | | | | 6,511,494 | | | | | | | | | |
| | | | | | |
| 1,800,483 | | | Victor CSD, Ontario, Monroe and Wayne Counties, NY BAN – Series 2010 (b) | | | 09/30/11 | | | | 0.80 | | | | 1,803,728 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| 45,490,483 | | | Total Tax Exempt General Obligation Notes and Bonds | | | | | | | | | | | 45,616,952 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
The accompanying notes are an integral part of these financial statements.
4
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New York Daily Tax Free Income Fund, Inc. Schedule of Investments October 31, 2010 (Unaudited) (Continued) |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | Rating (a) | |
Face Amount | | | | | Maturity Date | | | Interest Rate | | | Value (Note 1) | | | Moody’s | | | Standard & Poor’s | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| TAX EXEMPT VARIABLE RATE DEMAND INSTRUMENTS (c) (80.19%) | | | | | | | | | |
| | | | | | |
$ | 1,120,000 | | | City of Albany IDA Senior Housing RB (South Mall Towers Albany, L.P. Project) – Series 2003A (d) Collateralized by Federal National Mortgage Association | | | 08/15/35 | | | | 0.30 | % | | $ | 1,120,000 | | | | | | | | A-1+ | |
| | | | | | |
| 1,660,000 | | | County of Monroe, NY IDA RB (Jada Precision Plastics Co., Inc. Project) – Series 1997 (d) LOC Bank of America, N.A. | | | 12/01/13 | | | | 0.55 | | | | 1,660,000 | | | | | | | | A-1 | |
| | | | | | |
| 8,000,000 | | | Dormitory Authority of the State of New York, University of Rochester RB – Series 2006 LOC Bank of America, N.A. | | | 07/01/27 | | | | 0.26 | | | | 8,000,000 | | | | VMIG-1 | | | | A-1 | |
| | | | | | |
| 1,900,000 | | | Dutchess County, NY IDA Civic Facility RB (Marist College Civic Facility Project) – Series 2005A LOC JPMorgan Chase Bank, N.A. | | | 07/01/35 | | | | 0.28 | | | | 1,900,000 | | | | | | | | A-1+ | |
| | | | | | |
| 800,000 | | | Forest City New Rochelle, NY RB Certificate Trust – Series 2003 LOC Wachovia Bank, N.A. | | | 06/01/11 | | | | 0.38 | | | | 800,000 | | | | VMIG-1 | | | | | |
| | | | | | |
| 5,250,000 | | | Long Island Power Authority, NY Electric System Subordinated RB Subseries 2B LOC Bayerische Landesbank A.G. | | | 05/01/33 | | | | 0.30 | | | | 5,250,000 | | | | VMIG-1 | | | | A-1+ | |
| | | | | | |
| 2,000,000 | | | Long Island Power Authority, NY Electric System Series 1, 2, and 3 Subordinated RB Subseries 3B LOC Westdeutsche Landesbank AG | | | 05/01/33 | | | | 0.27 | | | | 2,000,000 | | | | VMIG-1 | | | | A-1+ | |
| | | | | | |
| 5,000,000 | | | Metropolitan Transportation Authority Dedicated Fund Tax RB Series 2008 Subseries 2008B-1 LOC Bank of Nova Scotia | | | 11/01/34 | | | | 0.25 | | | | 5,000,000 | | | | | | | | A-1+ | |
| | | | | | |
| 6,800,000 | | | Metropolitan Transportation Authority, NY Transportation Revenue – Series 2005D-2 LOC Landesbank Hessen – Thuringen Girozentrale | | | 11/01/35 | | | | 0.29 | | | | 6,800,000 | | | | VMIG-1 | | | | A-1+ | |
The accompanying notes are an integral part of these financial statements.
5
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New York Daily Tax Free Income Fund, Inc. Schedule of Investments October 31, 2010 (Unaudited) (Continued) |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | Rating (a) | |
Face Amount | | | | | Maturity Date | | | Interest Rate | | | Value (Note 1) | | | Moody’s | | | Standard & Poor’s | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| TAX EXEMPT VARIABLE RATE DEMAND INSTRUMENTS (c) (CONTINUED) | | | | | | | | | |
| | | | | | |
$ | 2,000,000 | | | Metropolitan Transportation Authority, NY Transportation RB – Series 2008 B-2 LOC BNP Paribas | | | 11/01/34 | | | | 0.25 | % | | $ | 2,000,000 | | | | | | | | A-1+ | |
| | | | | | |
| 4,500,000 | | | Metropolitan Transportation Authority, NY Transportation RB – Series 2008 B-4 LOC KBC Bank, N.A. | | | 11/01/34 | | | | 0.25 | | | | 4,500,000 | | | | | | | | A-1+ | |
| | | | | | |
| 10,000,000 | | | New York City, NY GO – Fiscal 1994, Series A-4 LOC Bayerische Landesbank A.G. | | | 08/01/22 | | | | 0.30 | | | | 10,000,000 | | | | VMIG-1 | | | | A-1+ | |
| | | | | | |
| 7,760,000 | | | New York City, NY GO – Fiscal 2004, Series A-3 LOC BNP Paribas | | | 08/01/31 | | | | 0.25 | | | | 7,760,000 | | | | VMIG-1 | | | | A-1+ | |
| | | | | | |
| 1,770,000 | | | New York City, NY GO – Fiscal 2004, Series A-6 LOC Landesbank Baden – Wurttemberg | | | 08/01/31 | | | | 0.26 | | | | 1,770,000 | | | | VMIG-1 | | | | A-1+ | |
| | | | | | |
| 2,505,000 | | | New York City, NY GO – Fiscal 2004, Series H-2 LOC Bank of New York Mellon | | | 03/01/34 | | | | 0.24 | | | | 2,505,000 | | | | VMIG-1 | | | | A-1+ | |
| | | | | | |
| 3,500,000 | | | New York City, NY GO – Fiscal 2004, Series H-4 LOC Bank of New York Mellon | | | 03/01/34 | | | | 0.21 | | | | 3,500,000 | | | | VMIG-1 | | | | A-1+ | |
| | | | | | |
| 3,400,000 | | | New York City, NY GO – Fiscal 2004, Series H-5 LOC Dexia CLF | | | 03/01/34 | | | | 0.27 | | | | 3,400,000 | | | | VMIG-1 | | | | A-1+ | |
| | | | | | |
| 5,000,000 | | | New York City, NY GO – Fiscal 2006, Series F-3 LOC Sumitomo Mitsui Banking Corporation | | | 09/01/35 | | | | 0.28 | | | | 5,000,000 | | | | VMIG-1 | | | | A-1+ | |
| | | | | | |
| 7,600,000 | | | New York City, NY GO – Fiscal 2006, Series H Subseries H-1 and H-2 LOC Dexia CLF | | | 01/01/36 | | | | 0.27 | | | | 7,600,000 | | | | VMIG-1 | | | | A-1+ | |
| | | | | | |
| 1,600,000 | | | New York City, NY GO Series 1994 B-3 LOC JPMorgan Chase Bank, N.A. | | | 08/15/18 | | | | 0.25 | | | | 1,600,000 | | | | VMIG-1 | | | | A-1+ | |
The accompanying notes are an integral part of these financial statements.
6
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New York Daily Tax Free Income Fund, Inc. Schedule of Investments October 31, 2010 (Unaudited) (Continued) |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | Rating (a) | |
Face Amount | | | | | Maturity Date | | | Interest Rate | | | Value (Note 1) | | | Moody’s | | | Standard & Poor’s | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| TAX EXEMPT VARIABLE RATE DEMAND INSTRUMENTS (c) (CONTINUED) | | | | | | | | | |
| | | | | | |
$ | 3,000,000 | | | New York City, NY GO Series 1994 E-4 LOC BNP Paribas | | | 08/01/21 | | | | 0.23 | % | | $ | 3,000,000 | | | | VMIG-1 | | | | A-1+ | |
| | | | | | |
| 1,200,000 | | | New York City, NY GO Series 1994 E-4 LOC BNP Paribas | | | 08/01/22 | | | | 0.23 | | | | 1,200,000 | | | | VMIG-1 | | | | A-1+ | |
| | | | | | |
| 1,100,000 | | | New York City, NY GO Series 1994 E-5 LOC JPMorgan Chase Bank, N.A. | | | 08/01/15 | | | | 0.25 | | | | 1,100,000 | | | | VMIG-1 | | | | A-1+ | |
| | | | | | |
| 2,700,000 | | | New York City, NY HDC Multi-Family Rental Housing RB (2 Gold Street) – Series 2006A (b) Guaranteed by Federal National Mortgage Association | | | 04/15/36 | | | | 0.25 | | | | 2,700,000 | | | | | | | | | |
| | | | | | |
| 5,300,000 | | | New York City, NY HDC Multi-Family Mortgage RB (Brookhaven Apartments Project) – Series 2004A (d) LOC Citibank, N.A. | | | 01/01/36 | | | | 0.30 | | | | 5,300,000 | | | | | | | | A-1 | |
| | | | | | |
| 2,900,000 | | | New York City, NY HDC Multi-Family Mortgage RB (White Plains Courtyard Apartments) – Series 2005A (d) Guaranteed by Federal Home Loan Mortgage Corporation | | | 03/01/38 | | | | 0.28 | | | | 2,900,000 | | | | P-1 | | | | A-1+ | |
| | | | | | |
| 1,245,000 | | | New York City, NY IDA Civic Facility RB (1991 Church of the Heavenly Rest Day School Project) LOC Commerce Bank | | | 07/01/21 | | | | 0.27 | | | | 1,245,000 | | | | VMIG-1 | | | | | |
| | | | | | |
| 5,000,000 | | | New York City, NY IDA Civic Facility RB (Jamaica First Parking, LLC Project) – Series 2004 LOC JPMorgan Chase Bank, N.A. | | | 03/01/34 | | | | 0.29 | | | | 5,000,000 | | | | | | | | A-1+ | |
| | | | | | |
| 8,300,000 | | | New York City, NY IDA Liberty RB (FC Hanson Office Associates, LLC Project) – Series 2004 LOC Lloyds PLC | | | 12/01/39 | | | | 0.27 | | | | 8,300,000 | | | | VMIG-1 | | | | | |
The accompanying notes are an integral part of these financial statements.
7
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New York Daily Tax Free Income Fund, Inc. Schedule of Investments October 31, 2010 (Unaudited) (Continued) |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | Rating (a) | |
Face Amount | | | | | Maturity Date | | | Interest Rate | | | Value (Note 1) | | | Moody’s | | | Standard & Poor’s | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| TAX EXEMPT VARIABLE RATE DEMAND INSTRUMENTS (c) (CONTINUED) | | | | | | | | | |
| | | | | | |
$ | 3,000,000 | | | New York City, NY Trust for Cultural Resources RB (Alvin Ailey Dance Foundation) – Series 2003 LOC Citibank, N.A. | | | 07/01/33 | | | | 0.25 | % | | $ | 3,000,000 | | | | VMIG-1 | | | | A-1 | |
| | | | | | |
| 10,000,000 | | | New York Liberty Development Corporation RB (Goldman Sachs Headquarters Issue) – Series 2005 LOC Wells Fargo, N.A. | | | 10/01/35 | | | | 0.29 | | | | 10,000,000 | | | | | | | | A-1 | |
| | | | | | |
| 1,300,000 | | | New York State Dormitory Authority RB (Cornell University) – Series 2000A | | | 07/01/29 | | | | 0.26 | | | | 1,300,000 | | | | VMIG-1 | | | | A-1+ | |
| | | | | | |
| 1,470,000 | | | New York State Dormitory Authority RB (LeMoyne College Project) – Series 2009 LOC TD Bank, N.A. | | | 01/01/39 | | | | 0.26 | | | | 1,470,000 | | | | VMIG-1 | | | | | |
| | | | | | |
| 3,300,000 | | | New York State Energy Research and Development Authority and Electric Facilities RB (Long Island Lighting Company Project) – 1997 Series A (d) LOC Royal Bank of Scotland PLC | | | 12/01/27 | | | | 0.28 | | | | 3,300,000 | | | | VMIG-1 | | | | | |
| | | | | | |
| 5,000,000 | | | New York State Housing Finance Agency RB (600 West 42nd Street Housing) – Series 2009A LOC Bank of New York Mellon | | | 11/01/41 | | | | 0.29 | | | | 5,000,000 | | | | VMIG-1 | | | | | |
| | | | | | |
| 2,900,000 | | | New York State Housing Finance Agency RB (80 Dekalb Avenue) – Series 2009B (b) LOC Wachovia Bank, N.A. | | | 05/01/42 | | | | 0.26 | | | | 2,900,000 | | | | | | | | | |
| | | | | | |
| 2,800,000 | | | New York State Housing Finance Agency RB (Archstone Westbury Apartments Project) – Series 2004A (d) LOC Bank of America, N.A. | | | 11/01/36 | | | | 0.28 | | | | 2,800,000 | | | | VMIG-1 | | | | | |
| | | | | | |
| 2,400,000 | | | New York State Housing Finance Agency RB (101 West End Avenue Project) – Series 2000A (d) Guaranteed by Federal National Mortgage Association | | | 05/15/31 | | | | 0.28 | | | | 2,400,000 | | | | VMIG-1 | | | | | |
The accompanying notes are an integral part of these financial statements.
8
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New York Daily Tax Free Income Fund, Inc. Schedule of Investments October 31, 2010 (Unaudited) (Continued) |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | Rating (a) | |
Face Amount | | | | | Maturity Date | | | Interest Rate | | | Value (Note 1) | | | Moody’s | | | Standard & Poor’s | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| TAX EXEMPT VARIABLE RATE DEMAND INSTRUMENTS (c) (CONTINUED) | | | | | | | | | |
| | | | | | |
$ | 3,800,000 | | | New York State Housing Finance Agency RB (350 West 43rd Street Project) – Series 2004A (d) LOC Landesbank Hessen – Thuringen Girozentrale | | | 11/01/34 | | | | 0.31 | % | | $ | 3,800,000 | | | | VMIG-1 | | | | | |
| | | | | | |
| 3,900,000 | | | New York State Housing Finance Agency RB (Capitol Green Apartments Housing) – Series 2006A (d) Collateralized by Federal National Mortgage Association | | | 05/15/36 | | | | 0.29 | | | | 3,900,000 | | | | VMIG-1 | | | | | |
| | | | | | |
| 3,750,000 | | | New York State Housing Finance Agency RB (Capitol Green Apartments Housing) – Series 2006A (d) Guaranteed by Federal National Mortgage Association | | | 05/15/36 | | | | 0.28 | | | | 3,750,000 | | | | VMIG-1 | | | | | |
| | | | | | |
| 650,000 | | | New York State Housing Finance Agency RB (Normandie Court I Housing Project) – Series 1991A LOC Landesbank Hessen – Thuringen Girozentrale | | | 05/15/15 | | | | 0.27 | | | | 650,000 | | | | VMIG-1 | | | | A-1+ | |
| | | | | | |
| 1,875,000 | | | New York State Local Government Assistance Corporation – Series 1995E LOC Landesbank Hessen – Thuringen Girozentrale | | | 04/01/25 | | | | 0.28 | | | | 1,875,000 | | | | VMIG-1 | | | | A-1+ | |
| | | | | | |
| 9,500,000 | | | New York State Urban Development Corporation Service Contract Revenue Refunding Bonds – Series 2008A Subseries 2008A-5 LOC TD Bank, N.A. | | | 01/01/30 | | | | 0.24 | | | | 9,500,000 | | | | | | | | A-1+ | |
| | | | | | |
| 3,580,000 | | | North Amityville Fire Company Inc., Fire Department RB – Series 2003 LOC Citibank, N.A. | | | 09/01/23 | | | | 0.55 | | | | 3,580,000 | | | | | | | | A-1 | |
| | | | | | |
| 4,000,000 | | | Suffolk County, NY IDA Civic Facility RB (St. Anthony’s High School Civic Facility) – Series 2006 LOC U.S. Bank, N.A. | | | 12/01/36 | | | | 0.26 | | | | 4,000,000 | | | | | | | | A-1+ | |
The accompanying notes are an integral part of these financial statements.
9
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New York Daily Tax Free Income Fund, Inc. Schedule of Investments October 31, 2010 (Unaudited) (Continued) |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | Rating (a) | |
Face Amount | | | | | Maturity Date | | | Interest Rate | | | Value (Note 1) | | | Moody’s | | | Standard & Poor’s | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| TAX EXEMPT VARIABLE RATE DEMAND INSTRUMENTS (c) (CONTINUED) | | | | | | | | | |
| | | | | | |
$ | 5,700,000 | | | Suffolk County, NY IDA Civic Facility RB (Touro College Project) – Series 2007 LOC JPMorgan Chase Bank, N.A. | | | 06/01/37 | | | | 0.27 | % | | $ | 5,700,000 | | | | VMIG-1 | | | | A-1+ | |
| | | | | | |
| 1,500,000 | | | Town of Riverhead, NY IDA RB (Altaire Pharmaceuticals, Inc. Facility) – Series 1998 (d) LOC Bank of New York Mellon | | | 10/01/13 | | | | 0.33 | | | | 1,500,000 | | | | P-1 | | | | A-1+ | |
| | | | | | |
| 10,910,000 | | | Triborough Bridge and Tunnel Authority General RB (MTA Bridge and Tunnels) – Series 2001B LOC State Street Bank & Trust Company | | | 01/01/32 | | | | 0.23 | | | | 10,910,000 | | | | VMIG-1 | | | | A-1+ | |
| | | | | | |
| 3,000,000 | | | Trust for Cultural Resources of the City of New York Refunding RB (Manhattan School of Music) – Series 2009A LOC Wells Fargo, N.A. | | | 10/01/29 | | | | 0.22 | | | | 3,000,000 | | | | P-1 | | | | A-1+ | |
| | | | | | |
| 1,100,000 | | | Trust for Cultural Resources of the City of New York, Refunding RB (Lincoln Center for the Performing Arts) – Series 2008A-2 LOC Bank of America, N.A. | | | 12/01/35 | | | | 0.26 | | | | 1,100,000 | | | | VMIG-1 | | | | A-1+ | |
| | | | | | |
| 750,000 | | | Trust for Cultural Resources of the County of Onondaga, NY RB (Syracuse University Project) – Series 2010A LOC Bank of America, N.A. | | | 12/01/29 | | | | 0.27 | | | | 750,000 | | | | VMIG-1 | | | | A-1 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| 199,095,000 | | | Total Tax Exempt Variable Rate Demand Instruments | | | | | | | | | | | 199,095,000 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | Total Investments (100.17%) (cost $248,711,952†) | | | | | | | | | | $ | 248,711,952 | | | | | | | | | |
| | | | Liabilities in excess of cash and other assets (-0.17%) | | | | | | | | (430,864 | ) | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | Net Assets (100.00%) | | | | | | | | | | $ | 248,281,088 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | † Aggregate cost for federal income tax purposes is identical. All securities are valued at amortized cost and as a result, there is no unrealized appreciation and depreciation. | |
The accompanying notes are an integral part of these financial statements.
10
|
New York Daily Tax Free Income Fund, Inc. Schedule of Investments October 31, 2010 (Unaudited) (Continued) |
FOOTNOTES:
| (a) | Unless the securities are assigned their own ratings, the ratings are those of the bank whose letter of credit guarantees the issue or the insurance company who insures the issue. All letters of credit and insurance are irrevocable and direct pay covering both principal and interest. Ratings are unaudited. In addition, certain issuers may have either a line of credit, a liquidity facility, a standby purchase agreement or some other financing mechanism to ensure the remarketing of the securities. This is not a guarantee and does not serve to insure or collateralize the issue. |
| (b) | Securities that are not rated which the Fund’s adviser 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) | Security subject to alternative minimum tax. |
KEY:
| | | | | | |
BAN | | = Bond Anticipation Note | | LOC | | = Letter of Credit |
CSD | | = Central School District | | RAN | | = Revenue Anticipation Note |
GO | | = General Obligation | | TAN | | = Tax Anticipation Note |
HDC | | = Housing Development Corporation | | RB | | = Revenue Bond |
IDA | | = Industrial Development Authority | | | | |
BREAKDOWN OF PORTFOLIO HOLDINGS BY MATURITY (Unaudited)
| | | | | | | | |
Securities Maturing in | | Value | | | % of Portfolio | |
Less than 31 Days | | $ | 199,095,000 | | | | 80.05 | % |
31 through 60 Days | | | -0- | | | | -0- | |
61 through 90 Days | | | 4,000,000 | | | | 1.61 | |
91 through 120 Days | | | -0- | | | | -0- | |
121 through 180 Days | | | -0- | | | | -0- | |
Over 180 Days | | | 45,616,952 | | | | 18.34 | |
Total | | $ | 248,711,952 | | | | 100.00 | % |
BREAKDOWN OF PORTFOLIO HOLDINGS BY STATE (Unaudited)
| | | | | | | | |
States | | Value | | | % of Portfolio | |
New York | | $ | 248,711,952 | | | | 100.00 | % |
Total | | $ | 248,711,952 | | | | 100.00 | % |
The accompanying notes are an integral part of these financial statements.
11
|
New York Daily Tax Free Income Fund, Inc. Statement of Asset and Liabilities October 31, 2010 (Unaudited) |
| | | | |
:Assets | | | | |
Investments in securities, at amortized cost (Note 1) | | $ | 248,711,952 | |
Accrued interest receivable | | | 222,082 | |
Prepaid Expenses | | | 18,524 | |
| | | | |
Total assets | | | 248,952,558 | |
| | | | |
| |
:Liabilities | | | | |
Payable to affiliates (Note 2) | | | 54,880 | |
Due to Custodian | | | 519,782 | |
Accrued expenses | | | 96,549 | |
Dividends payable | | | 259 | |
| | | | |
Total liabilities | | | 671,470 | |
| | | | |
Net assets | | $ | 248,281,088 | |
| | | | |
| |
:Sources of Net Assets | | | | |
Net capital paid in on shares of capital stock (Note 5) | | $ | 248,281,088 | |
Accumulated net realized gain (losses) | | | -0- | |
| | | | |
Net assets | | $ | 248,281,088 | |
| | | | |
NET ASSET VALUE, PER SHARE (NOTE 5):
| | | | | | | | | | | | |
Class Name | | Net Assets | | | Shares Outstanding | | | Net Assets Value | |
Class A Shares | | | $151,508,314 | | | | 151,506,769 | | | | $1.00 | |
Class B Shares | | | $2,480,628 | | | | 2,480,603 | | | | $1.00 | |
Advantage Shares | | | $94,292,146 | | | | 94,291,186 | | | | $1.00 | |
The accompanying notes are an integral part of these financial statements.
12
|
New York Daily Tax Free Income Fund, Inc. Statement of Operations Six Months Ended October 31, 2010 (Unaudited) |
| | | | |
:Investment Income | | | | |
INCOME: | | | | |
Interest | | $ | 529,944 | |
| | | | |
| |
EXPENSES: (NOTE 2) | | | | |
Investment management fee | | | 403,109 | |
Administration fee | | | 282,177 | |
Shareholder servicing fee (Class A) | | | 161,995 | |
Shareholder servicing fee (Advantage Shares) | | | 129,392 | |
Distribution fee (Advantage Shares) | | | 232,907 | |
Custodian expenses | | | 5,907 | |
Shareholder servicing and related shareholder expenses† | | | 70,709 | |
Legal, compliance and filing fees | | | 46,029 | |
Audit and accounting | | | 59,675 | |
Directors’ fees and expenses | | | 20,871 | |
Other expenses | | | 11,906 | |
| | | | |
Total expenses | | | 1,424,677 | |
Less: Fees waived (Note 2) | | | (899,432 | ) |
| | | | |
Net expenses | | | 525,245 | |
| | | | |
Net investment income | | | 4,699 | |
| |
:Realized Gain (Loss) on Investments | | | | |
Accumulated net realized gain (losses) | | | -0- | |
| | | | |
Increase in net assets from operations | | $ | 4,699 | |
| | | | |
† | Includes class specific transfer agency expenses of $40,463 and $808 for Class A and Class B, respectively. |
The accompanying notes are an integral part of these financial statements.
13
|
New York Daily Tax Free Income Fund, Inc. Statements of Changes in Net Assets October 31, 2010 |
| | | | | | | | |
| | Six Months Ended October 31, 2010 (Unaudited) | | | Year Ended April 30, 2010 | |
| | | | | | | | |
| | |
: Increase (Decrease) in Net Assets from: | | | | | | | | |
OPERATIONS: | | | | | | | | |
Net investment income | | $ | 4,699 | | | $ | 14,694 | |
Net realized gain on investments | | | -0- | | | | 1,418 | |
| | | | | | | | |
Increase in net assets from operations | | | 4,699 | | | | 16,112 | |
| | | | | | | | |
| | |
DIVIDENDS TO SHAREHOLDERS FROM NET INVESTMENT INCOME*: | | | | | | | | |
Class A Shares | | | (1,926 | ) | | | (5,428 | ) |
Class B Shares | | | (39 | ) | | | (2,431 | ) |
Advantage Shares | | | (2,734 | ) | | | (6,835 | ) |
| | | | | | | | |
Total dividends to shareholders | | | (4,699 | ) | | | (14,694 | ) |
| | | | | | | | |
| | |
DIVIDENDS TO SHAREHOLDERS FROM REALIZED GAINS ON INVESTMENTS: | | | | | | | | |
Class A Shares | | | (817 | ) | | | (7,399 | ) |
Class B Shares | | | (16 | ) | | | (383 | ) |
Advantage Shares | | | (585 | ) | | | (4,136 | ) |
| | | | | | | | |
Total dividends to shareholders | | | (1,418 | ) | | | (11,918 | ) |
| | | | | | | | |
| | |
CAPITAL SHARE TRANSACTIONS (NOTE 5): | | | | | | | | |
Class A Shares | | | (2,514,402 | ) | | | (36,112,663 | ) |
Class B Shares | | | (4,376,723 | ) | | | (4,137,808 | ) |
Advantage Shares | | | (2,299,569 | ) | | | (7,534,864 | ) |
| | | | | | | | |
Total capital share transactions | | | (9,190,694 | ) | | | (47,785,335 | ) |
| | | | | | | | |
Total increase/(decrease) | | | (9,192,112 | ) | | | (47,795,835 | ) |
| | |
NET ASSETS: | | | | | | | | |
Beginning of period | | | 257,473,200 | | | | 305,269,035 | |
| | | | | | | | |
End of period | | $ | 248,281,088 | | | $ | 257,473,200 | |
| | | | | | | | |
UNDISTRIBUTED NET INVESTMENT INCOME: | | $ | -0- | | | $ | -0- | |
| | | | | | | | |
* | Designated as exempt-interest dividend for federal income tax purposes. |
The accompanying notes are an integral part of these financial statements.
14
|
New York Daily Tax Free Income Fund, Inc. Financial Highlights |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | Six Months Ended October 31, 2010 (Unaudited) | | | Years Ended April 30, | |
: Class A shares | | | 2010 | | | 2009 | | | 2008 | | | 2007 | | | 2006 | |
| | | | | | |
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 | | | $ | 1.00 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Income from investment operations: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income | | | 0.000 | | | | 0.000 | | | | 0.009 | | | | 0.025 | | | | 0.027 | | | | 0.019 | |
Net realized and unrealized gain (loss) on investments | | | 0.000 | | | | 0.000 | | | | 0.000 | | | | 0.000 | | | | — | | | | 0.000 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total from investment operations | | | 0.000 | | | | 0.000 | | | | 0.009 | | | | 0.025 | | | | 0.027 | | | | 0.019 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Less distributions from: | | | | | | | | | | | | | | | | | | | | | | | | |
Dividends from net investment income | | | (0.000) | | | | (0.000) | | | | (0.009) | | | | (0.025) | | | | (0.027) | | | | (0.019) | |
Net realized gain on investments | | | (0.000) | | | | (0.000) | | | | — | | | | — | | | | — | | | | (0.000) | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Distributions | | | (0.000) | | | | (0.000) | | | | (0.009) | | | | (0.025) | | | | (0.027) | | | | (0.019) | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net asset value, end of period | | $ | 1.00 | | | $ | 1.00 | | | $ | 1.00 | | | $ | 1.00 | | | $ | 1.00 | | | $ | 1.00 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
TOTAL RETURN | | | 0.00% | (a) | | | 0.01% | | | | 0.92% | | | | 2.50% | | | | 2.73% | | | | 1.93% | |
| | | | | | |
RATIO/SUPPLEMENTAL DATA | | | | | | | | | | | | | | | | | | | | | | | | |
Net assets, end of period (000’s) | | $ | 151,508 | | | $ | 154,024 | | | $ | 190,143 | | | $ | 273,458 | | | $ | 218,850 | | | $ | 285,247 | |
Ratio to average net assets: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income | | | 0.00% | (c) | | | 0.00% | | | | 0.96% | | | | 2.44% | | | | 2.69% | | | | 1.91% | |
Expenses (net of fees waived) (b) | | | 0.39% | (c) | | | 0.54% | | | | 0.89% | | | | 0.86% | | | | 0.87% | | | | 0.86% | |
Management and administration fees waived | | | 0.25% | (c) | | | 0.15% | | | | — | | | | — | | | | — | | | | — | |
Shareholder servicing fees waived | | | 0.20% | (c) | | | 0.18% | | | | 0.00% | | | | — | | | | — | | | | — | |
Transfer agency fees waived | | | 0.05% | (c) | | | 0.03% | | | | — | | | | — | | | | — | | | | — | |
Expenses paid indirectly | | | — | | | | — | | | | — | | | | 0.00% | | | | 0.00% | | | | 0.00% | |
(b) | Includes expenses paid indirectly, if applicable. |
The accompanying notes are an integral part of these financial statements.
15
|
New York Daily Tax Free Income Fund, Inc. Financial Highlights (Continued) |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | Six Months Ended October 31, 2010 (Unaudited) | | | Years Ended April 30, | |
: Class B shares | | | 2010 | | | 2009 | | | 2008 | | | 2007 | | | 2006 | |
| | | | | | |
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 | | | $ | 1.00 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Income from investment operations: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income | | | 0.000 | | | | 0.000 | | | | 0.011 | | | | 0.027 | | | | 0.029 | | | | 0.021 | |
Net realized and unrealized gain (loss) on investments | | | 0.000 | | | | 0.000 | | | | 0.000 | | | | 0.000 | | | | — | | | | 0.000 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total from investment operations | | | 0.000 | | | | 0.000 | | | | 0.011 | | | | 0.027 | | | | 0.029 | | | | 0.021 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Less distributions from: | | | | | | | | | | | | | | | | | | | | | | | | |
Dividends from net investment income | | | (0.000) | | | | (0.000) | | | | (0.011) | | | | (0.027) | | | | (0.029) | | | | (0.021) | |
Net realized gain on investments | | | (0.000) | | | | (0.000) | | | | — | | | | — | | | | — | | | | (0.000) | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Distributions | | | (0.000) | | | | (0.000) | | | | (0.011) | | | | (0.027) | | | | (0.029) | | | | (0.021) | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net asset value, end of period | | $ | 1.00 | | | $ | 1.00 | | | $ | 1.00 | | | $ | 1.00 | | | $ | 1.00 | | | $ | 1.00 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
TOTAL RETURN | | | 0.00% | (a) | | | 0.03% | | | | 1.13% | | | | 2.71% | | | | 2.93% | | | | 2.14% | |
| | | | | | |
RATIO/SUPPLEMENTAL DATA | | | | | | | | | | | | | | | | | | | | | | | | |
Net assets, end of period (000’s) | | $ | 2,481 | | | $ | 6,857 | | | $ | 10,996 | | | $ | 15,849 | | | $ | 32,597 | | | $ | 33,330 | |
Ratio to average net assets: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income | | | 0.00% | (c) | | | 0.03% | | | | 1.24% | | | | 2.80% | | | | 2.90% | | | | 2.14% | |
Expenses (net of fees waived) (b) | | | 0.40% | (c) | | | 0.52% | | | | 0.68% | | | | 0.65% | | | | 0.68% | | | | 0.67% | |
Management and administration fees waived | | | 0.25% | (c) | | | 0.15% | | | | — | | | | — | | | | — | | | | — | |
Transfer agency fees waived | | | 0.05% | (c) | | | 0.04% | | | | — | | | | — | | | | — | | | | — | |
Expenses paid indirectly | | | — | | | | — | | | | — | | | | 0.00% | | | | 0.00% | | | | 0.00% | |
(b) | Includes expenses paid indirectly, if applicable. |
The accompanying notes are an integral part of these financial statements.
16
|
New York Daily Tax Free Income Fund, Inc. Financial Highlights (Continued) |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | Six Months Ended October 31, 2010 (Unaudited) | | | Years Ended April 30, | |
: Advantage shares | | | 2010 | | | 2009 | | | 2008 | | | 2007 | | | 2006 | |
| | | | | | |
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 | | | $ | 1.00 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Income from investment operations: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income | | | 0.000 | | | | 0.000 | | | | 0.008 | | | | 0.023 | | | | 0.025 | | | | 0.018 | |
Net realized and unrealized gain (loss) on investments | | | 0.000 | | | | 0.000 | | | | 0.000 | | | | 0.000 | | | | — | | | | 0.000 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total from investment operations | | | 0.000 | | | | 0.000 | | | | 0.008 | | | | 0.023 | | | | 0.025 | | | | 0.018 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Less distributions from: | | | | | | | | | | | | | | | | | | | | | | | | |
Dividends from net investment income | | | (0.000) | | | | (0.000) | | | | (0.008) | | | | (0.023) | | | | (0.025) | | | | (0.018) | |
Net realized gain on investments | | | (0.000) | | | | (0.000) | | | | — | | | | — | | | | — | | | | (0.000) | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Distributions | | | (0.000) | | | | (0.000) | | | | (0.008) | | | | (0.023) | | | | (0.025) | | | | (0.018) | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net asset value, end of period | | $ | 1.00 | | | $ | 1.00 | | | $ | 1.00 | | | $ | 1.00 | | | $ | 1.00 | | | $ | 1.00 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
TOTAL RETURN | | | 0.00% | (a) | | | 0.01% | | | | 0.80% | | | | 2.34% | | | | 2.58% | | | | 1.79% | |
| | | | | | |
RATIO/SUPPLEMENTAL DATA | | | | | | | | | | | | | | | | | | | | | | | | |
Net assets, end of period (000’s) | | $ | 94,292 | | | $ | 96,592 | | | $ | 104,130 | | | $ | 111,059 | | | $ | 72,419 | | | $ | 66,680 | |
Ratio to average net assets: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income | | | 0.01% | (c) | | | 0.01% | | | | 0.79% | | | | 2.26% | | | | 2.55% | | | | 1.77% | |
Expenses (net of fees waived) (b) | | | 0.39% | (c) | | | 0.53% | | | | 1.01% | | | | 1.02% | | | | 1.02% | | | | 1.01% | |
Management and administration fees waived | | | 0.25% | (c) | | | 0.15% | | | | — | | | | — | | | | — | | | | — | |
Distribution and shareholder servicing fees waived | | | 0.70% | (c) | | | 0.67% | | | | 0.33% | | | | 0.28% | | | | 0.30% | | | | 0.31% | |
Expenses paid indirectly | | | — | | | | — | | | | — | | | | 0.00% | | | | 0.00% | | | | 0.00% | |
(b) | Includes expenses paid indirectly, if applicable. |
The accompanying notes are an integral part of these financial statements.
17
[This Page Intentionally Left Blank.]
|
New York Daily Tax Free Income Fund, Inc. Notes to the Financial Statements (Unaudited) |
1: Summary of Accounting Policies
New York Daily Tax Free Income Fund, Inc. (the “Fund”) is an open-end management investment company registered under the Investment Company Act of 1940 (the “1940 Act”). The Fund is a short-term, tax exempt money market fund and its objective is to seek as high a level of current income exempt from federal income tax and, to the extent possible, from New York State and New York City personal income taxes, as is believed to be consistent with the preservation of capital, maintenance of liquidity and stability of principal. There can be no assurance that the Fund will achieve its objective. The Fund has three classes of stock authorized, Class A, Class B and Advantage Shares.
The Fund’s financial statements are prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for investment companies as follows:
VALUATION OF SECURITIES
Investments are recorded on the basis of amortized cost, which approximates value, as permitted by Rule 2a-7 under the 1940 Act. Under this 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.
SECURITIES TRANSACTIONS AND INVESTMENT INCOME
Securities transactions are recorded on a trade date basis. Interest income, adjusted for accretion of discount and amortization of premium, is recorded on the accrual basis from settlement date. Realized gains and losses on sales are computed on the basis of specific identification of the securities sold.
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 (if any) income to its shareholders. As such, the Fund will not be subject to federal income taxes on otherwise taxable income (including net realized capital gain) that is distributed to shareholders. Therefore, no provision for federal income tax is required in the financial statements. The Fund recognizes interest and penalties, if any, as income tax expense in the Statement of Operations.
Consistent with the provisions of GAAP, management evaluates tax positions taken or expected to be taken in the course of preparing the Fund’s tax returns to determine whether the tax positions are “more-likely-than-not” of being sustained by the applicable tax authority. Tax positions not deemed to meet the “more-likely-than-not” threshold are recorded as a component of income tax expense in the current period with a corresponding adjustment to a liability for uncertain tax positions. The Fund recognizes interest and penalties, if any, related to uncertain tax positions as income tax expense in the Statement of Operations.
In addition, GAAP requires management of the Fund to analyze all open tax years, fiscal years 2008-2010 and the six months period ended October 31, 2010, as defined by IRS statute of limitations for all major jurisdictions, including federal tax authorities and certain state tax authorities. As of and during the period ended October 31, 2010, the Fund did not have
19
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New York Daily Tax Free Income Fund, Inc. Notes to the Financial Statements (Unaudited) (Continued) |
1: Summary of Accounting Policies (Continued)
liabilities for any uncertain tax positions and no unrecognized tax benefits. The Fund has no examination in progress and is not aware of any tax positions for which it is reasonably possible that the total tax amounts of unrecognized tax benefits will significantly change in the next twelve months.
DIVIDENDS AND DISTRIBUTIONS
Dividends from net investment income (excluding capital gains and losses, if any, and amortization of market discount) are declared daily and paid monthly. Net realized capital gains, if any, are distributed at least annually and in no event later than 60 days after the end of the Fund’s fiscal year.
ACCOUNTING ESTIMATES
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect 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.
REPRESENTATIONS AND INDEMNIFICATIONS
In the normal course of business the Fund enters into contracts that contain a variety of representations and warranties which provide general indemnifications. The Fund’s maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Fund that have not yet occurred. However, based on experience, the Fund expects the risk of loss to be remote.
ALLOCATION OF INCOME AND EXPENSES
The Fund may allocate among its classes and to the extent allowable, to specific classes, certain expenses, including shareholder servicing fees, distribution fees, transfer agent fees, government registration fees, certain printing and postage costs, and administrative and legal expenses. For the period ended October 31, 2010, class specific expenses of the Fund were limited to shareholder servicing fees, distribution fees and transfer agent expenses. Income, expenses (other than expenses attributable to a specific class), and realized and unrealized gains or losses on investments are allocated to each class of shares based on its relative net assets. In all other respects, all share classes represent the same interest in the income and assets of the Fund.
RISKS
The effect on performance from investing in securities issued or guaranteed by companies in the banking and financial services industries will depend to a greater extent on the overall condition of those industries. Financial services companies are highly dependent on the supply of short-term financing. The value of securities of issuers in the banking and financial services industry can be sensitive to changes in government regulation and interest rates and to economic downturns in the United States and abroad.
The value of, payment of interest on, repayment of principal for and the ability to sell a municipal security may be affected by constitutional amendments, legislative enactments, executive orders, administrative regulations, voter initiatives and the economics of the regions in which the issuers are located.
20
|
New York Daily Tax Free Income Fund, Inc. Notes to the Financial Statements (Unaudited) (Continued) |
1: Summary of Accounting Policies (Continued)
Since many municipal securities are issued to finance similar projects, especially those relating to education, housing, health care, transportation and utilities, conditions in those sectors can affect the overall municipal securities market and a Fund’s investment in municipal securities.
There is some risk that a portion or all of the interest received from certain tax-free municipal securities could become taxable as a result of determinations by the Internal Revenue Service.
In a low interest rate environment, such as the environment that existed at October 31, 2010, Reich & Tang Asset Management, LLC (the “Manager”) and Reich & Tang Distributors, Inc. (the “Distributor”) have historically waived their fees to maintain a minimum non-negative yield for all classes of the Fund. The Manager and Distributor are under no contractual obligation to continue such waiver in the future.
2: Investment Management Fees and Other Transactions with Affiliates
Under the Investment Management Contract, the Fund pays an investment management fee to the Manager at the annual rate of 0.30% of the Fund’s average daily net assets.
Pursuant to an Administrative Services Contract, the Fund pays to the Manager an annual fee of 0.21% of the Fund’s average daily net assets.
Pursuant to Distribution and Service Plans adopted under Securities and Exchange Commission Rule 12b-1, the Fund and the Distributor, an affiliate of the Manager, have entered into a Distribution Agreement and a Shareholder Servicing Agreement, with respect to the Class A and Advantage Shares of the Fund. For its services under the Shareholder Servicing Agreement, the Distributor receives from the Fund a fee based on the average daily net assets of the respective share classes equal to 0.20% for Class A Shares and 0.25% for Advantage Shares. In addition, for its services under the Distribution Agreement, the Distributor receives 0.45% per annum in distribution fees based on the Advantage Shares’ average daily net assets. There were no additional expenses borne by the Fund pursuant to the Distribution and Service Plan.
As of October 31, 2010, the amounts Payable to affiliates included in the Statement of Assets and Liabilities are as follows:
| | | | | | | | |
Fee Type | | Affiliate | | | Amount | |
Investment management fee | | | Manager | | | $ | 51,880 | |
Administration fee | | | Manager | | | | 3,000 | |
| | | | | | | | |
Total | | | | | | $ | 54,880 | |
| | | | | | | | |
21
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New York Daily Tax Free Income Fund, Inc. Notes to the Financial Statements (Unaudited) (Continued) |
2: Investment Management Fees and Other Transactions with Affiliates (Continued)
For the period ended October 31, 2010, the following fees were voluntarily waived by the Manager, Distributor and Reich & Tang Services, Inc. (the “TA”):
| | | | |
Investment Management fees | | $ | 66,996 | |
Administration fees | | | 267,177 | |
Distribution fees – Advantage shares | | | 232,907 | |
Shareholder servicing fees – Class A shares | | | 161,995 | |
Shareholder servicing fees – Advantage shares | | | 129,392 | |
Transfer agency fees – Class A shares | | | 40,165 | |
Transfer agency fees – Class B shares | | | 800 | |
| | | | |
Total | | $ | 899,432 | |
| | | | |
Included in the above amounts were waivers to maintain a minimum yield in light of market conditions. The Manager, Distributor and TA have no right to recoup prior fee waivers.
Fees are paid to Directors who are unaffiliated with the Manager on the basis of $7,000 per annum, plus a fee of $1,375 per Board of Directors meeting attended.
Included in the Statement of Operations under the caption “Shareholder servicing and related shareholder expenses” are fees pursuant to the Transfer Agency Agreement between the TA and the Fund. The TA, an affiliate of the Manager, as transfer agent and dividend agent, receives a fee of $17.40 per account per year or a minimum of 0.05% of the monthly average net assets of the Class A and Class B shares of the Fund. The Advantage shares do not participate in the Transfer Agency Agreement. For the period ended October 31, 2010, these fees after waivers amounted to:
| | | | | | | | |
| | Amount | | | % | |
Class A shares | | $ | 298 | | | | 0.00 | % |
Class B shares | | | 8 | | | | 0.00 | % |
| | | | | | | | |
Total | | $ | 306 | | | | | |
| | | | | | | | |
As of October 31, 2010, certain Directors and Officers had investments in the Fund representing less than 1% of the Fund.
3: Securities Transactions with Affiliated Funds
The Fund is permitted to purchase or sell securities from or to certain other Reich & Tang Funds under specified conditions outlined in procedures adopted by the Board of Directors of the Fund. The procedures have been designed to ensure that any purchase or sale of securities of the Fund from or to another fund or portfolio that is or could be considered an affiliate by virtue of having a common investment advisor (or affiliated investment advisors), common Directors and/or common officers complies with Rule 17a-7 of the 1940 Act. Further, as defined under the procedures, each transaction is effected at the
22
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New York Daily Tax Free Income Fund, Inc. Notes to the Financial Statements (Unaudited) (Continued) |
3: Securities Transactions with Affiliated Funds (Continued)
current market price. For the period ended October 31, 2010, the Fund engaged in purchases and sales with affiliates, none of which resulted in any gains or losses, which amounted to:
| | | | |
Transaction Type | | Amount | |
Purchases | | $ | 27,005,000 | |
Sales | | | 41,425,000 | |
Gains/(Losses) | | | -0- | |
4: Compensating Balance Agreement
Pursuant to a compensating balance arrangement, the Fund is permitted to temporarily overdraft or leave balances in its accounts with The Bank of New York Mellon (the “Bank”). The Fund may leave funds or overdraft funds in the account so the Bank or the Fund can be compensated for use of funds based upon the agreed upon formula. Unless agreed otherwise at the end of pre-determined three month periods, the Fund will be charged for average overdrafts or receive an earnings credit for average positive balances computed at the agreed upon rate on the last day of the period.
Earnings credit, if any, are offset against the Fund’s safekeeping fees which are included in the Statement of Operations under the caption custodian expenses.
5: Capital Stock
At October 31, 2010, 20,000,000,000 shares of $.001 par value stock were authorized. Transactions in capital stock, all at $1.00 per share, were as follows:
| | | | | | | | | | | | | | | | |
| | Six Months Ended October 31, 2010 | | | Year Ended April 30, 2010 | |
Class A Shares | | Net Assets | | | Shares | | | Net Assets | | | Shares | |
Sold | | $ | 239,718,994 | | | | 239,718,994 | | | $ | 449,830,824 | | | | 449,830,824 | |
Issued on reinvestment of dividends | | | 2,604 | | | | 2,604 | | | | 14,464 | | | | 14,464 | |
Redeemed | | | (242,236,000 | ) | | | (242,236,000 | ) | | | (485,957,951 | ) | | | (485,957,951 | ) |
| | | | | | | | | | | | | | | | |
Net increase (decrease) | | $ | (2,514,402 | ) | | | (2,514,402 | ) | | $ | (36,112,663 | ) | | | (36,112,663 | ) |
| | | | | | | | | | | | | | | | |
| | | | |
Class B Shares | | Net Assets | | | Shares | | | Net Assets | | | Shares | |
Sold | | $ | 10,426,965 | | | | 10,426,965 | | | $ | 19,534,888 | | | | 19,534,888 | |
Issued on reinvestment of dividends | | | 59 | | | | 59 | | | | 3,663 | | | | 3,663 | |
Redeemed | | | (14,803,747 | ) | | | (14,803,747 | ) | | | (23,676,359 | ) | | | (23,676,359 | ) |
| | | | | | | | | | | | | | | | |
Net increase (decrease) | | $ | (4,376,723 | ) | | | (4,376,723 | ) | | $ | (4,137,808 | ) | | | (4,137,808 | ) |
| | | | | | | | | | | | | | | | |
| | | | |
Advantage Shares | | Net Assets | | | Shares | | | Net Assets | | | Shares | |
Sold | | $ | 108,199,961 | | | | 108,199,961 | | | $ | 112,354,028 | | | | 112,354,028 | |
Issued on reinvestment of dividends | | | 3,394 | | | | 3,394 | | | | 12,721 | | | | 12,721 | |
Redeemed | | | (110,502,924 | ) | | | (110,502,924 | ) | | | (119,901,613 | ) | | | (119,901,613 | ) |
| | | | | | | | | | | | | | | | |
Net increase (decrease) | | $ | (2,299,569 | ) | | | (2,299,569 | ) | | $ | (7,534,864 | ) | | | (7,534,864 | ) |
| | | | | | | | | | | | | | | | |
23
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New York Daily Tax Free Income Fund, Inc. Notes to the Financial Statements (Unaudited) (Continued) |
6: Concentration of Credit Risk
The Fund invests primarily in obligations of political subdivisions of the State of New York and, accordingly, is subject to the credit risk associated with the non-performance of such issuers. Approximately 81% of these investments are further secured, as to principal and interest, by credit enhancements such as letters of credit, municipal bond insurance, and guarantees 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 credit enhancements, and by limiting the amount of holdings with credit enhancements from one financial institution.
7: Tax Information
The amount and character of income and gains to be distributed are determined in accordance with U.S. income tax regulations, which may differ from generally accepted accounting principles. Reclassifications are made to each Portfolio’s capital accounts to reflect income and gains available for distribution (or available capital loss carryforwards) under U.S. income tax regulations. The tax character of distributions paid during the year and the tax components of net assets will be reported at the Fund’s fiscal year end.
Capital loss carryforward is calculated and reported as of a specific date. Results of transactions and other activity after that date may effect the amount of capital loss carryforward available for the Portfolios to utilize. The ability to utilize capital loss carryforward in the future may be limited under the Internal Revenue Code and related regulations based on the result of future transactions.
8: Additional Valuation Information
Under the provisions of GAAP, fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date under current market conditions. GAAP establishes a hierarchy that prioritizes the inputs to valuation methods giving the highest priority to readily available unadjusted quotes prices in an active market for identical assets (Level 1) and the lowest priority to significant unobservable inputs (Level 3) generally when market prices are not readily available or are unreliable. Based on the valuation inputs, the securities or other investments are tiered into one of three levels. Changes in valuation methods may result in transfers in or out of an investment’s assigned level:
Level 1 – | prices are determined using quoted prices in an active market for identical assets. |
Level 2 – | prices are determined using other significant observable inputs. Observable inputs are inputs that the other market participants may use in pricing a security. These may include quoted prices for similar securities, interest rates, prepayment speeds, credit risk and others. |
Level 3 – | prices are determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable (for example, when there is little or no market activity for an investment at the end of the period), unobservable inputs may be used. Unobservable inputs reflect the Fund’s own assumptions about the factors market participants would use in determining fair value of the securities or instruments and would be based on the best available information. |
24
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New York Daily Tax Free Income Fund, Inc. Notes to the Financial Statements (Unaudited) (Continued) |
8: Additional Valuation Information (Continued)
The following is a summary of the tiered valuation input levels, as of the end of the reporting period, October 31, 2010. The level assigned to the securities valuations may not be an indication of the risk or liquidity associated with investing in those securities. Money market securities may be valued using amortized cost, in accordance with the 1940 Act. Generally, amortized cost approximates the current fair value of a security, but as the value is not obtained from a quoted price in an active market, such securities are reflected as a Level 2.
The following table summarizes the inputs used to value the Fund’s investments as of October 31, 2010:
| | | | | | | | | | | | |
Description | | Quoted Prices in Active Markets for Identical Assets (Level 1) | | | Significant Other Observable Inputs (Level 2) | | | Significant Unobservable Inputs (Level 3) | |
Debt securities issued by states of the United States and political subdivisions of the states | | $ | -0- | | | $ | 248,711,952 | | | $ | -0- | |
| | | | | | | | | | | | |
Total | | $ | -0- | | | $ | 248,711,952 | | | $ | -0- | |
| | | | | | | | | | | | |
For the period ended October 31, 2010, there was no Level 1 or 3 investments.
25
|
New York Daily Tax Free Income Fund, Inc. Additional Information (Unaudited) |
: | | Additional Information About Portfolio Holdings |
The Fund is required to file its complete schedule of portfolio holdings with the Securities and Exchange Commission (“SEC”) on Form N-Q for its first and third fiscal quarters. The Fund’s Form N-Q is available without charge on the SEC’s website (http://www.sec.gov) or by calling the Fund toll free at (800) 433-1918. You can also obtain copies of the Fund’s Form N-Q by visiting the SEC’s Public Reference Room in Washington, DC (please call the SEC at (800) 732-0330 for information on the operation of the Public Reference Room).
: | | Information About Proxy Voting |
Information regarding the Fund’s proxy voting record for the 12 month period ending June 30 of each year is filed with the SEC on Form N-PX no later than August 31 of each year. The Fund’s Form N-PX is available without charge, upon request, by calling the Fund at (800) 433-1918 and on the SEC’s website (http://www.sec.gov). The Fund does not presently invest in voting securities and has therefore not adopted proxy voting policies and procedures.
26
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New York Daily Tax Free Income Fund, Inc. Notice of Reich & Tang* Privacy Policy |
We do not disclose to third parties nonpublic personal information about current or former Reich & Tang customers, clients or mutual fund shareholders other than as described below.
We collect nonpublic personal information about you, such as your name, address, social security number, account activity and account balances from your account application and other forms that you may deliver to us. We use this information to provide advisory services to you, to open an account for you, or to process a transaction for your account. In order to service your account and effect your transactions, we provide your nonpublic personal information to our affiliates and to unaffiliated firms to effect or process transactions for you or to assist us in servicing your account.
We may also disclose nonpublic personal information about you to other service providers who agree to protect the confidentiality of your information and to use the information only for the purpose for which the disclosure is made. We do not otherwise provide nonpublic personal information about you to outside firms, organizations or individuals except as permitted by law.
We restrict access to nonpublic personal information about you to those employees who need to know that information to provide products or services to you. We maintain physical, electronic and procedural safeguards that comply with federal standards to guard your personal information.
* | For purposes of this notice, “Reich & Tang” includes; Reich & Tang Asset Management, LLC, Reich & Tang Distributors, Inc., Reich & Tang Services, Inc. and all mutual funds or other funds managed or advised by Reich & Tang Asset Management, LLC. |
THIS IS NOT PART OF THE SHAREHOLDER REPORT
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.
New York Daily Tax Free Income Fund, Inc.
1411 Broadway, 28th Floor
New York, New York 10018
Manager
Reich & Tang Asset Management, LLC
1411 Broadway, 28th Floor
New York, New York 10018
Custodian
The Bank of New York Mellon
2 Hanson Place, 7th Floor,
Brooklyn, New York 11217
Transfer Agent & Dividend Disbursing Agent
Reich & Tang Services, Inc.
1411 Broadway, 28th Floor
New York, New York 10018
Distributor
Reich & Tang Distributors, Inc.
1411 Broadway, 28th Floor
New York, New York 10018
NY 10/10 SA
|
New York Daily Tax Free Income Fund, Inc. |
The Notice of the Reich & Tang Privacy Policy is included with this Shareholder Report but is not part of the Shareholder Report.
Semi-Annual Report
October 31, 2010
Item 2: Code of Ethics
Not Applicable.
Item 3: Audit Committee Financial Expert
Not Applicable
Item 4: Principal Accountant Fees and Services
Not Applicable
Item 5: Audit Committee of Listed Registrants
Not applicable.
Item 6: Schedule of Investments
Schedule of Investments in securities of unaffiliated issuers is included under Item 1.
Item 7: Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment
Companies
Not applicable.
Item 8: Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers
Not applicable.
Item 9: Submission of Matters to a Vote of Security Holders
There were no material changes to the procedures by which shareholders may recommend nominees to the registrant’s board of directors that were implemented after the registrant last provided disclosure in response to the requirements of Item 7(d)(2)(ii)(G) of Schedule 14A, or this Item 9.
Item 10: Controls and Procedures
(a) | The registrant’s Principal Executive Officer and Principal Financial Officer have evaluated the design and operation of the registrant's disclosure controls and procedures within 90 days of this filing and have concluded that the registrant’s disclosure controls and procedures were effective in ensuring that information required to be disclosed by the registrant in this Form N-CSR was recorded, processed, summarized and reported on a timely basis. |
(b) | There were no changes in the registrant's internal controls over financial reporting that occurred during the registrant’s second fiscal quarter of the period covered by this report that have materially affected, or are reasonably likely to affect, the registrant’s internal controls over financial reporting. |
Item 11: Exhibits
| | |
(a)(1) | | Not Applicable (disclosure required in annual report on N-CSR only). |
| |
(a)(2) | | Certifications of Principal Executive Officer and Principal Financial Officer, under Rule 30a-2 of the Investment Company Act of 1940. |
| |
(a)(3) | | Not applicable. |
| |
(b) | | Certifications of Principal Executive Officer and Principal Financial Officer, under Section 906 of the Sarbanes-Oxley Act of 2002 and 18 U.S.C. §1350. |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) New York Daily Tax Free Income Fund, Inc.
| | | | |
By (Signature and Title)* | | /s/ Christine Manna | | |
| | Christine Manna, Secretary | | |
Date: January 3, 2011
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
| | | | |
By (Signature and Title)* | | /s/ Michael P. Lydon | | |
| | Michael P. Lydon, President | | |
Date: January 3, 2011
| | | | |
By (Signature and Title)* | | /s/ Joseph Jerkovich | | |
| | Joseph Jerkovich, Treasurer and Assistant Secretary | | |
Date: January 3, 2011
* Print the name and title of each signing officer under his or her signature.