Daily Income Fund N-CSRS Certified semi-annual shareholder report (management investment company)

As filed with the Securities and Exchange Commission on December 3, 2013

Investment Company Act File Number 811-8312

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF

REGISTERED MANAGEMENT INVESTMENT COMPANIES

Daily Income Fund

(Exact name of registrant as specified in charter)

1411 Broadway, 28^th Floor

New York, NY 10018

(Address of principal executive offices)             (Zip code)

Christine Manna

c/o Reich & Tang Asset Management, LLC

1411 Broadway, 28^th Floor

New York, New York 10018

(Name and address of agent for service)

Registrant’s telephone number, including area code:   212-830-5200

Date of fiscal year end:          March 31

Date of reporting period:       September 30, 2013

Item 1: Report to Stockholders

Daily Income Fund

The Notice of the Reich & Tang Privacy Policy is included with this Shareholder Report but is not part of the Shareholder Report.
1411 BROADWAY, 28TH FLOOR NEW YORK, NY 10018 (212) 830-5200	SEMI-ANNUAL REPORT SEPTEMBER 30, 2013

Daily Income Fund

Table of Contents

SHAREHOLDER LETTER	3
EXPENSE CHART	4
SCHEDULE OF INVESTMENTS
Daily Income Fund
Money Market Portfolio	7
U.S. Treasury Portfolio	11
U.S. Government Portfolio	13
Municipal Portfolio	16
STATEMENTS OF ASSETS AND LIABILITIES	24
STATEMENTS OF OPERATIONS	25
STATEMENTS OF CHANGES IN NET ASSETS	26
FINANCIAL HIGHLIGHTS	28
NOTES TO THE FINANCIAL STATEMENTS	37
ADDITIONAL INFORMATION	49

2

Daily Income Fund

Shareholder Letter

Dear Shareholder:

We all recently witnessed another near default by the U.S. Treasury. To say that tensions were palpable is an understatement, but at least our country’s credit rating was not downgraded this time around. Markets were rattled, investors were spooked, and the world hung on every word that came out of Capitol Hill until there was that collective sigh of relief. As is often said, nervousness is a function of preparedness. While many money fund sponsors worked feverishly to shed near-term Treasury holdings, Reich & Tang made the extra effort to focus on communicating what could be expected to happen in the event of a default and importantly, the potential effect of such an event on the Daily Income Fund portfolios.

Reich & Tang normally maintains no exposure to Treasury securities in its money market funds with the exception of its US Government and US Treasury portfolios. The scare of a default deadline of October 17, 2013, was in our opinion overblown as it was merely the date that the U.S. Treasury would not be able to issue new debt if a deal in Congress were not to be worked out. The government had enough cash on hand to satisfy its obligations almost certainly through October 31, 2013, which gave Congress close to another two weeks to negotiate a deal. After having sold a December Treasury position at a profit in the US Treasury Fund, none of the Daily Income Fund portfolios held Treasury securities after that date. Similarly, the portfolios do not hold, nor do we expect to hold any Treasury securities that become payable in the newly determined debt ceiling hot zone of February 7, 2014, through April 24, 2014. We also highlight the fact that the U.S. Treasury can use extraordinary measures to ultimately make good on its obligations, which would stretch the new February 7, 2014 “D-Day” date sometime into early Spring.

It seems that the slow, but steady fuse of economic growth that was progressing over the past few months has fizzled somewhat. First, the Fed determined at its highly anticipated September FOMC meeting that the need to begin tapering its QE program (the very accommodative $85 billion in monthly buying of Treasury and Mortgage backed securities) was not yet upon us. Second, the government shutdown did nothing to bolster the economy. And third, a painfully prolonged, elevated level of unemployment remains the dark cloud that refuses to dissipate and present a clear view to future growth. This coupled with an inevitable debt ceiling re-do in the beginning of the year will likely coax the Fed into stating that any tapering of the QE program ahead of the first quarter 2014 debt ceiling deadlines would be irresponsible. Short-term markets (e.g. money market mutual funds) will continue to forge forward and endure historically low interest rates for a while longer.

Reich & Tang submitted its comments to the SEC in response to the money fund reform proposals it put forth this past summer. Reich & Tang’s comments are posted on the SECs website and on www.reichandtang.com/news. We remain confident that Reich & Tang’s large retail shareholder base (approximately 85%-90%) will keep our shareholders well insulated from meaningful change. We will keep all shareholders updated as we learn more about the direction the SEC will ultimately take.

Despite a low interest rate environment and the debt ceiling crisis, total assets in the Daily Income Fund portfolios grew approximately 45% in 3Q2013 due to organic growth coupled with the acquisition of the HighMark money market funds that we closed in July. We remain well positioned in each of our funds as we look to close out 2013 and head into the New Year. As always, please let us know how we can best support your cash management needs.

Sincerely,

Michael P. Lydon

President

3

Expense Chart For The Six Months Ended September 30, 2013 (Unaudited)

As a shareholder of the Portfolio, you incur the following ongoing costs: management fees and other Portfolio 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 Portfolio 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 April 1, 2013 through September 30, 2013.

^:  Actual Expenses

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 Portfolio’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Portfolio’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 Portfolio and other funds. To do so, compare this 5% hypothetical example with the 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.

DAILY INCOME FUND MONEY MARKET PORTFOLIO

Institutional Class Shares (“Institutional Shares”)	Beginning Account Value 4/01/2013		Ending Account Value 9/30/2013		Expenses Paid During the Period*		Annualized Expense Ratio*
Actual		$1,000.00		$1,000.30		$1.00		0.20%
Hypothetical (5% return before expenses)		$1,000.00		$1,024.07		$1.01		0.20%
Institutional Service Class Shares (“Institutional Service Shares”)	Beginning Account Value 4/01/2013		Ending Account Value 9/30/2013		Expenses Paid During the Period*		Annualized Expense Ratio*
Actual		$1,000.00		$1,000.10		$1.20		0.24%
Hypothetical (5% return before expenses)		$1,000.00		$1,023.87		$1.22		0.24%
Investor Class Shares (“Investor Shares”)	Beginning Account Value 4/01/2013		Ending Account Value 9/30/2013		Expenses Paid During the Period*		Annualized Expense Ratio*
Actual		$1,000.00		$1,000.10		$1.20		0.24%
Hypothetical (5% return before expenses)		$1,000.00		$1,023.87		$1.22		0.24%
Investor Service Class Shares (“Investor Service Shares”)	Beginning Account Value 4/01/2013		Ending Account Value 9/30/2013		Expenses Paid During the Period*		Annualized Expense Ratio*
Actual		$1,000.00		$1,000.10		$1.20		0.24%
Hypothetical (5% return before expenses)		$1,000.00		$1,023.87		$1.22		0.24%
Retail Class Shares (“Retail Shares”)	Beginning Account Value 4/01/2013		Ending Account Value 9/30/2013		Expenses Paid During the Period*		Annualized Expense Ratio*
Actual		$1,000.00		$1,000.10		$1.20		0.24%
Hypothetical (5% return before expenses)		$1,000.00		$1,023.87		$1.22		0.24%
Advantage Primary Liquidity Fund (“Advantage Shares”)	Beginning Account Value 4/01/2013		Ending Account Value 9/30/2013		Expenses Paid During the Period*		Annualized Expense Ratio*
Actual		$1,000.00		$1,000.10		$1.15		0.23%
Hypothetical (5% return before expenses)		$1,000.00		$1,023.92		$1.17		0.23%
money market Xpress Fund (“Xpress Shares”)	Beginning Account Value 4/01/2013		Ending Account Value 9/30/2013		Expenses Paid During the Period*		Annualized Expense Ratio*
Actual		$1,000.00		$1,000.10		$1.20		0.24%
Hypothetical (5% return before expenses)		$1,000.00		$1,023.87		$1.22		0.24%

4

Expense Chart For The Six Months Ended September 30, 2013 (Unaudited) (Continued)

DAILY INCOME FUND MONEY MARKET PORTFOLIO (CONTINUED)

Fiduciary Class Shares (“Fiduciary Shares”)	Beginning Account Value 4/01/2013		Ending Account Value 9/30/2013		Expenses Paid During the Period*		Annualized Expense Ratio*
Actual		$1,000.00		$1,000.10		$0.41		0.21%
Hypothetical (5% return before expenses)		$1,000.00		$1,024.02		$1.07		0.21%
Investor Select Class Shares (“Investor Select Shares”)	Beginning Account Value 4/01/2013		Ending Account Value 9/30/2013		Expenses Paid During the Period*		Annualized Expense Ratio*
Actual		$1,000.00		$1,000.10		$0.56		0.21%
Hypothetical (5% return before expenses)		$1,000.00		$1,024.02		$1.07		0.21%

DAILY INCOME FUND U.S. TREASURY PORTFOLIO

Institutional Class Shares (“Institutional Shares”)	Beginning Account Value 4/01/2013		Ending Account Value 9/30/2013		Expenses Paid During the Period*		Annualized Expense Ratio*
Actual		$1,000.00		$1,000.00		$0.35		0.07%
Hypothetical (5% return before expenses)		$1,000.00		$1,024.72		$0.36		0.07%
Institutional Service Class Shares (“Institutional Service Shares”)	Beginning Account Value 4/01/2013		Ending Account Value 9/30/2013		Expenses Paid During the Period*		Annualized Expense Ratio*
Actual		$1,000.00		$1,000.00		$0.35		0.07%
Hypothetical (5% return before expenses)		$1,000.00		$1,024.72		$0.36		0.07%
Investor Class Shares (“Investor Shares”)	Beginning Account Value 4/01/2013		Ending Account Value 9/30/2013		Expenses Paid During the Period*		Annualized Expense Ratio*
Actual		$1,000.00		$1,000.00		$0.35		0.07%
Hypothetical (5% return before expenses)		$1,000.00		$1,024.72		$0.36		0.07%
Investor Service Class Shares (“Investor Service Shares”)	Beginning Account Value 4/01/2013		Ending Account Value 9/30/2013		Expenses Paid During the Period*		Annualized Expense Ratio*
Actual		$1,000.00		$1,000.00		$0.35		0.07%
Hypothetical (5% return before expenses)		$1,000.00		$1,024.72		$0.36		0.07%
Retail Class Shares (“Retail Shares”)	Beginning Account Value 4/01/2013		Ending Account Value 9/30/2013		Expenses Paid During the Period*		Annualized Expense Ratio*
Actual		$1,000.00		$1,000.00		$0.35		0.07%
Hypothetical (5% return before expenses)		$1,000.00		$1,024.72		$0.36		0.07%
Fiduciary Class Shares (“Fiduciary Shares”)	Beginning Account Value 4/01/2013		Ending Account Value 9/30/2013		Expenses Paid During the Period*		Annualized Expense Ratio*
Actual		$1,000.00		$1,000.00		$0.08		0.04%
Hypothetical (5% return before expenses)		$1,000.00		$1,024.87		$0.20		0.04%
Investor Select Class Shares (“Investor Select Shares”)	Beginning Account Value 4/01/2013		Ending Account Value 9/30/2013		Expenses Paid During the Period*		Annualized Expense Ratio*
Actual		$1,000.00		$1,000.00		$0.11		0.04%
Hypothetical (5% return before expenses)		$1,000.00		$1,024.87		$0.20		0.04%

DAILY INCOME FUND U.S. GOVERNMENT PORTFOLIO

Institutional Class Shares (“Institutional Shares”)	Beginning Account Value 4/01/2013		Ending Account Value 9/30/2013		Expenses Paid During the Period*		Annualized Expense Ratio*
Actual		$1,000.00		$1,000.10		$0.65		0.13%
Hypothetical (5% return before expenses)		$1,000.00		$1,024.42		$0.66		0.13%

5

Expense Chart For The Six Months Ended September 30, 2013 (Unaudited) (Continued)

DAILY INCOME FUND U.S. GOVERNMENT PORTFOLIO (CONTINUED)

Institutional Service Class Shares (“Institutional Service Shares”)	Beginning Account Value 4/01/2013		Ending Account Value 9/30/2013		Expenses Paid During the Period*		Annualized Expense Ratio*
Actual		$1,000.00		$1,000.10		$0.65		0.13%
Hypothetical (5% return before expenses)		$1,000.00		$1,024.42		$0.66		0.13%
Retail Class Shares (“Retail Shares”)	Beginning Account Value 4/01/2013		Ending Account Value 9/30/2013		Expenses Paid During the Period*		Annualized Expense Ratio*
Actual		$1,000.00		$1,000.10		$0.65		0.13%
Hypothetical (5% return before expenses)		$1,000.00		$1,024.42		$0.66		0.13%
Advantage Government Liquidity Fund (“Advantage Shares”)	Beginning Account Value 4/01/2013		Ending Account Value 9/30/2013		Expenses Paid During the Period*		Annualized Expense Ratio*
Actual		$1,000.00		$1,000.10		$0.65		0.13%
Hypothetical (5% return before expenses)		$1,000.00		$1,024.42		$0.65		0.13%
Fiduciary Class Shares (“Fiduciary Shares”)	Beginning Account Value 4/01/2013		Ending Account Value 9/30/2013		Expenses Paid During the Period*		Annualized Expense Ratio*
Actual		$1,000.00		$1,000.00		$0.21		0.11%
Hypothetical (5% return before expenses)		$1,000.00		$1,024.52		$0.56		0.11%
Investor Select Class Shares (“Investor Select Shares”)	Beginning Account Value 4/01/2013		Ending Account Value 9/30/2013		Expenses Paid During the Period*		Annualized Expense Ratio*
Actual		$1,000.00		$1,000.00		$0.21		0.11%
Hypothetical (5% return before expenses)		$1,000.00		$1,024.52		$0.56		0.11%

DAILY INCOME FUND MUNICIPAL PORTFOLIO

Institutional Class Shares (“Institutional Shares”)	Beginning Account Value 4/01/2013		Ending Account Value 9/30/2013		Expenses Paid During the Period*		Annualized Expense Ratio*
Actual		$1,000.00		$1,000.10		$1.10		0.22%
Hypothetical (5% return before expenses)		$1,000.00		$1,023.97		$1.12		0.22%
Institutional Service Class Shares (“Institutional Service Shares”)	Beginning Account Value 4/01/2013		Ending Account Value 9/30/2013		Expenses Paid During the Period*		Annualized Expense Ratio*
Actual		$1,000.00		$1,000.10		$0.80		0.16%
Hypothetical (5% return before expenses)		$1,000.00		$1,024.27		$0.81		0.16%
Investor Service Class Shares (“Investor Service Shares”)	Beginning Account Value 4/01/2013		Ending Account Value 9/30/2013		Expenses Paid During the Period*		Annualized Expense Ratio*
Actual		$1,000.00		$1,000.00		$0.80		0.16%
Hypothetical (5% return before expenses)		$1,000.00		$1,024.27		$0.81		0.16%
Retail Class Shares (“Retail Shares”)	Beginning Account Value 4/01/2013		Ending Account Value 9/30/2013		Expenses Paid During the Period*		Annualized Expense Ratio*
Actual		$1,000.00		$1,000.00		$0.80		0.16%
Hypothetical (5% return before expenses)		$1,000.00		$1,024.27		$0.81		0.16%
Advantage Municipal Liquidity Fund (“Advantage Shares”)	Beginning Account Value 4/01/2013		Ending Account Value 9/30/2013		Expenses Paid During the Period*		Annualized Expense Ratio*
Actual		$1,000.00		$1,000.00		$0.80		0.16%
Hypothetical (5% return before expenses)		$1,000.00		$1,024.27		$0.81		0.16%

* Expenses are equal to the Class’ annualized expense ratio (for the six-month period), multiplied by the average account value over the period, multiplied by 183/365 to reflect the one-half year period (except for the Fiduciary Shares of the Money Market Portfolio, U.S. Treasury Portfolio and Government Portfolio Actual return information, which reflects the 71-day period ended September 30, 2013 due to each share class’ inception date of July 22, 2013 and for the Investor Select Shares of Money Market Portfolio, U.S. Treasury Portfolio and U.S. Government Portfolio Actual return information which reflects the 98-day, 97-day and 71-day period ended September 30, 2013, respectively, due to each share class’ inception dates of June 25, 2013, June 26, 2013 and July 22, 2013, respectively.) The Class’ total return would have been lower had certain expenses not been waived during the period.

6

Daily Income Fund Money Market Portfolio

Schedule of Investments September 30, 2013 (Unaudited)

Face Amount		Security Description	Value (Note 1)
	ASSET BACKED COMMERCIAL PAPER (1) (22.01%)
$	30,000,000	Anglesea Funding LLC, 0.20%, 10/02/13	$	29,999,833
	132,000,000	Anglesea Funding LLC, 0.38%, 12/03/13 (3)		132,000,000
	55,000,000	Anglesea Funding LLC, 0.36%, 04/11/14 (4)		55,000,000
	100,000,000	Anglesea Funding LLC, 0.33%, 05/09/14 (5)		100,000,000
	185,000,000	Chesham Finance LLC, 0.18%, 10/01/13		185,000,000
	150,000,000	Chesham Finance LLC, 0.17%, 10/04/13		149,997,875
	200,000,000	Ebury Finance LLC, 0.18%, 10/01/13		200,000,000
	135,000,000	Ebury Finance LLC, 0.17%, 10/03/13		134,998,725
	191,000,000	Halkin Finance LLC, 0.18%, 10/01/13		191,000,000
	60,000,000	Ridgefield Funding Company, LLC, 0.31%, 10/09/13 LOC BNP Paribas S.A.		59,995,867
	125,000,000	Ridgefield Funding Company, LLC, 0.32%, 11/08/13 (6) LOC BNP Paribas S.A.		124,997,924
	100,000,000	Ridgefield Funding Company, LLC, 0.27%, 02/05/14 (7) LOC BNP Paribas S.A.		100,000,000
	22,000,000	Ridgefield Funding Company, LLC, 0.34%, 02/10/14 LOC BNP Paribas S.A.		21,972,573
	1,485,000,000	Total Asset Backed Commercial Paper		1,484,962,797
	COMMERCIAL PAPER (12.18%)
$	30,500,000	Commonwealth Bank of Australia, 0.32%, 11/08/13 (8)	$	30,500,000
	35,000,000	Commonwealth Bank of Australia, 0.29%, 04/04/14 (9)		35,000,000
	97,700,000	Dexia Credit Local, 0.39%, 02/20/14 Guaranteed by Belgium, France & Luxembourg		97,549,705
	106,032,000	Dexia Credit Local, 0.36%, 03/05/14 Guaranteed by Belgium, France & Luxembourg		105,867,650
	125,000,000	Dexia Credit Local, 0.41%, 03/10/14 Guaranteed by Belgium, France & Luxembourg		124,772,222

Face Amount		Security Description	Value (Note 1)
	COMMERCIAL PAPER (CONTINUED)
$	215,000,000	Nederlandse Waterschapsbank N.V., 0.30%, 08/14/14 (10)	$	215,000,000
	30,000,000	Private Export Funding Corporation, 0.31%, 12/06/13		29,982,950
	15,000,000	Private Export Funding Corporation, 0.30%, 01/08/14		14,987,625
	75,000,000	Private Export Funding Corporation, 0.25%, 03/04/14		74,919,792
	25,000,000	Private Export Funding Corporation, 0.25%, 03/10/14		24,972,222
	43,750,000	Private Export Funding Corporation, 0.26%, 05/22/14		43,676,379
	25,000,000	Westpac Banking Corp., 0.29%, 01/03/14 (11)		25,000,000
	822,982,000	Total Commercial Paper		822,228,545
	FLOATING RATE SECURITIES (19.55%)
$	65,000,000	Bank of Montreal, 0.28%, 06/26/14 (12)	$	65,000,000
	180,000,000	Bank of Tokyo-Mitsubishi UFJ Ltd., 0.35%, 06/23/14 (13)		180,000,000
	194,000,000	China Construction Bank Corp., 0.43%, 07/20/15 (14)		194,000,000
	50,000,000	Credit Suisse AG, 0.35%, 10/25/13 (15)		50,000,000
	25,000,000	Credit Suisse AG, 0.62%, 01/09/14 (16)		25,000,000
	70,000,000	Deutsche Bank AG, 0.30%, 03/26/14 (17)		70,000,000
	85,000,000	JPMorgan Chase Bank, N.A., 0.34%, 11/07/14 (18)		85,000,000
	70,000,000	Royal Bank of Canada, 0.30%, 03/19/14 (19)		70,000,000
	94,830,000	SSIF Nevada, Limited Partnership, 0.34%, 04/14/14 (20) Guaranteed by Bank of Nova Scotia		95,154,661
	60,000,000	Standard Chartered Bank, 0.32%, 04/16/14 (21)		60,000,000
	60,000,000	Toronto-Dominion Bank, 0.23%, 06/17/14 (22)		60,000,000
	71,000,000	Toyota Motor Credit Corp., 0.26%, 04/07/14 (23)		71,000,000
	60,000,000	UBS AG, 0.29%, 10/04/13 (24)		60,000,000

The accompanying notes are an integral part of these financial statements.

7

Daily Income Fund Money Market Portfolio

Schedule of Investments September 30, 2013 (Unaudited) (Continued)

Face Amount		Security Description	Value (Note 1)
	FLOATING RATE SECURITIES (CONTINUED)
$	234,200,000	Westpac Banking Corp., 0.27%, 08/15/14 (25)	$	234,200,000
	1,319,030,000	Total Floating Rate Securities		1,319,354,661
	REPURCHASE AGREEMENTS (10.48%)
$	509,000,000	BNY Mellon Capital Market, LLC, 0.09%, dated 09/30/13, due 10/01/13, repurchase proceeds at maturity $509,001,273 (Collateralized by FHLMC, 2.50% to 4.50%, due 09/01/27 to 10/01/43, value $290,564,406, FNMA, 3.00% to 4.50%, due 09/01/23 to 10/01/43, value $228,615,595)	$	509,000,000
	198,000,000	BNY Mellon Capital Market, LLC, 0.08%, dated 09/30/13, due 10/01/13, repurchase proceeds at maturity $198,000,440 (Collateralized by GNMA, 2.00% to 6.00%, due 09/20/28 to 09/15/43, value $201,960,000)		198,000,000
	707,000,000	Total Repurchase Agreements		707,000,000
	TIME DEPOSIT (21.64%)
$	340,000,000	Abbey National Treasury Services PLC, 0.03%, 10/01/13	$	340,000,000
	300,000,000	Canadian Imperial Bank of Commerce, 0.01%, 10/01/13		300,000,000
	140,000,000	Credit Agricole S.A., 0.03%, 10/01/13		140,000,000
	340,000,000	Credit Industriel et Commercial, 0.04%, 10/01/13		340,000,000
	340,000,000	Skandinaviska Enskilda Banken AB, 0.01%, 10/01/13		340,000,000
	1,460,000,000	Total Time Deposit		1,460,000,000
	VARIABLE RATE DEMAND INSTRUMENTS (2) (1.12%)
$	770,000	Central Michigan Inns, LLC (Pohlcat Inc) – Series 2000A, 0.24%, 04/01/30 LOC Wells Fargo Bank, N.A.	$	770,000

Face Amount		Security Description	Value (Note 1)
	VARIABLE RATE DEMAND INSTRUMENTS (2) (CONTINUED)
$	2,370,000	Columbus, GA Development Authority RB (Columbus Economic Development Corporation/Bricken Financial Project) – Series 2006, 0.24%, 02/01/26 LOC Wells Fargo Bank, N.A.	$	2,370,000
	3,027,693	Federal Home Loan Mortgage Corporation Multifamily Class A Certificates – Series M004, 0.24%, 10/15/45		3,027,693
	45,739,702	Federal Home Loan Mortgage Corporation Multifamily Class A Certificates – Series M006, 0.24%, 01/15/42		45,739,702
	2,500,000	Healtheum, LLC Series 2004, 0.13%, 11/01/29 LOC Wells Fargo Bank, N.A.		2,500,000
	700,000	Kit Carson County, CO Agricultural Development RB (Midwest Farms, LLC) – Series 1997, 0.12%, 06/01/27 LOC Wells Fargo Bank, N.A.		700,000
	1,795,000	Lauren Company, LLC – Series 2003, 0.24%, 07/01/33 LOC Wells Fargo Bank, N.A.		1,795,000
	2,500,000	Mississippi Business Finance Corporation IDRB (Attala Steel Industries, LLC Project) – Series 2005, 0.20%, 07/01/20 Guaranteed by Federal Home Loan Bank		2,500,000
	3,660,000	Montgomery County, PA MHRB (Brookside Manor Apartments) – Series 2001A, 0.17%, 08/15/31 Collateralized by Federal National Mortgage Association		3,660,000
	6,900,000	Olathe, KS IDRB (Diamant Board Project) – Series 1997B, 0.42%, 03/01/27 LOC Svenska Handelsbanken		6,900,000
	5,480,000	Rural Electric Cooperative Grantor Trust Certificates (Kansas Electric Power Cooperative, Inc.) – Series 1997, 0.35%, 12/18/17 LOC U.S. Government		5,480,000
	75,442,395	Total Variable Rate Demand Instruments		75,442,395

The accompanying notes are an integral part of these financial statements.

8

Daily Income Fund Money Market Portfolio

Schedule of Investments September 30, 2013 (Unaudited) (Continued)

Face Amount		Security Description	Value (Note 1)
	YANKEE CERTIFICATES OF DEPOSIT (13.03%)
$	170,000,000	Bank of Montreal, 0.18%, 01/03/14	$	170,000,000
	140,000,000	China Construction Bank Corp., 0.55%, 11/19/13		140,000,000
	140,000,000	Industrial and Commercial Bank of China Ltd., 0.33%, 10/15/13		140,000,000
	124,200,000	Industrial and Commercial Bank of China Ltd., 0.55%, 11/18/13		124,200,000
	60,750,000	Sumitomo Mitsui Banking Corp., 0.22%, 12/06/13		60,751,107
	69,000,000	Sumitomo Mitsui Banking Corp., 0.22%, 12/20/13		69,001,526
	175,000,000	Toronto-Dominion Bank, 0.33%, 11/07/13		175,000,000
	878,950,000	Total Yankee Certificates of Deposit		878,952,633
		Total Investments (100.01%) (cost $6,747,941,031†)		6,747,941,031
		Liabilities in excess of cash and other assets (-0.01%)		(440,304	)
		Net Assets (100.00%)	$	6,747,500,727
		†     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.

FOOTNOTES

(1) Security purchased in a transaction exempt from registration under the Securities Act of 1933, as amended. The security may be resold pursuant to an exemption from registration under the 1933 Act, typically to qualified institutional buyers. The aggregate value of these securities at the time of this statement was $1,484,962,797, which represented 22.01% of the Portfolio’s net assets. Unless otherwise indicated, these securities are not considered to be illiquid.

(2) Securities payable on demand at par including accrued interest (usually with seven days notice) and where indicated are 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.

(3) The interest rate is adjusted monthly based upon one month LIBOR plus 0.20%.

(4) The interest rate is adjusted monthly based upon one month LIBOR plus 0.175%.

(5) The interest rate is adjusted monthly based upon one month LIBOR plus 0.15%.

(6) The interest rate is adjusted monthly based upon one month LIBOR plus 0.10%.

(7) The interest rate is adjusted monthly based upon one month LIBOR plus 0.09%.

(8) The interest rate is adjusted quarterly based upon quarterly LIBOR plus 0.05%.

(9) The interest rate is adjusted quarterly based upon quarterly LIBOR plus 0.02%.

(10) The interest rate is adjusted quarterly based upon quarterly LIBOR plus 0.04%.

(11) The interest rate is adjusted daily based upon one month Federal Funds Effective rate plus 0.21%.

(12) The interest rate is adjusted monthly based upon one month LIBOR plus 0.10%.

(13) The interest rate is adjusted quarterly based upon quarterly LIBOR plus 0.10%.

(14) The interest rate is adjusted monthly based upon one month LIBOR plus 0.25% and has a 30-day put.

(15) The interest rate is adjusted monthly based upon one month LIBOR plus 0.17%.

(16) The interest rate is adjusted quarterly based upon quarterly LIBOR plus 0.35%.

(17) The interest rate is adjusted quarterly based upon quarterly LIBOR plus 0.05%.

(18) The interest rate is adjusted quarterly based upon quarterly LIBOR plus 0.08%.

(19) The interest rate is adjusted daily based upon one month Federal Funds Effective rate plus 0.22%.

(20) The interest rate is adjusted quarterly based upon quarterly LIBOR plus 0.70%.

(21) The interest rate is adjusted quarterly based upon quarterly LIBOR plus 0.05%.

(22) The interest rate is adjusted monthly based upon one month LIBOR plus 0.05%.

(23) The interest rate is adjusted daily based upon one month Federal Funds Effective rate plus 0.18%.

(24) The interest rate is adjusted monthly based upon one month LIBOR plus 0.11%.

(25) The interest rate is adjusted monthly based upon one month LIBOR plus 0.09%.

KEY

FHLMC	=  Federal Home Loan Mortgage Corporation
FNMA	=  Federal National Mortgage Association
GNMA	=  Government National Mortgage Association
IDRB	=  Industrial Development Revenue Bond
LOC	=  Letter of Credit
MHRB	=  Multi-Family Housing Revenue Bond
RB	=  Revenue Bond

The accompanying notes are an integral part of these financial statements.

9

Daily Income Fund Money Market Portfolio

Schedule of Investments September 30, 2013 (Unaudited) (Continued)

BREAKDOWN OF PORTFOLIO HOLDINGS BY MATURITY (UNAUDITED)

Securities Maturing in	Value		% of Portfolio
Less than 31 Days	$	3,637,434,695		53.90	%
31 through 60 Days		981,697,923		14.55
61 through 90 Days		229,735,583		3.41
91 through 120 Days		234,987,625		3.48
121 through 180 Days		520,054,165		7.71
181 through 397 Days		1,144,031,040		16.95
Total	$	6,747,941,031		100.00	%

The accompanying notes are an integral part of these financial statements.

10

Daily Income Fund U.S. Treasury Portfolio

Schedule of Investments September 30, 2013 (Unaudited)

Face Amount		Security Description	Value (Note 1)
	REPURCHASE AGREEMENTS (55.94%)
$	150,000,000	BNP Paribas Securities Corp., 0.03%, dated 09/30/13, due 10/01/13 repurchase proceeds at maturity $150,000,125, (Collateralized by U.S. Treasury Note, 0.375%, due 08/31/15, value $153,000,015)	$	150,000,000
	350,000,000	BNY Mellon Capital Market, LLC, 0.08%, dated 09/30/13, due 10/01/13, repurchase proceeds at maturity $350,000,778 (Collateralized by GNMA, 2.000% to 9.500%, due 04/15/19 to 09/20/43, value $357,000,001)		350,000,000
	110,000,000	Goldman, Sachs & Co., 0.02%, dated 09/30/13, due 10/04/13, repurchase proceeds at maturity $110,000,428 (Collateralized by U. S. Treasury Note, 0.875%, due 01/31/18, value $112,200,043)		110,000,000
	70,000,000	Merrill Lynch, Pierce, Fenner & Smith Inc., 0.04%, dated 09/30/13, due 10/01/13, repurchase proceeds at maturity $70,000,078 (Collateralized by U.S. Treasury Note 1.000% to 2.000%, due 01/15/14 to 05/31/18, value $71,400,047)		70,000,000
	42,000,000	Merrill Lynch, Pierce, Fenner & Smith Inc., 0.04%, dated 09/30/13, due 10/01/13, repurchase proceeds at maturity $42,000,047 (Collateralized by U.S. Treasury Note, 0.375%, due 06/30/15, value $42,840,026)		42,000,000
	390,000,000	Royal Bank of Canada, 0.03%, dated 09/30/13, due 10/01/13, repurchase proceeds at maturity $390,000,325 (Collateralized by U.S. Treasury Note, 0.625% to 1.750%, due 05/31/16 to 08/15/16, value $229,050,082, U.S.Treasury Bond, 4.500%, due 5/15/38, value 168,750,000)		390,000,000
	1,112,000,000	Total Repurchase Agreements		1,112,000,000

Face Amount		Security Description	Value (Note 1)
	U.S. GOVERNMENT OBLIGATIONS (44.02%)
$	100,000,000	U.S. Treasury Bill, 0.03%, 10/17/13	$	99,998,556
	300,000,000	U.S. Treasury Bill, 0.01%, 10/24/13		299,997,891
	100,000,000	U.S. Treasury Bill, 0.01%, 10/24/13		99,999,201
	75,000,000	U.S. Treasury Bill, 0.06%, 05/01/14		74,973,500
	50,000,000	U.S. Treasury Bill, 0.08%, 08/21/14		49,964,000
	50,000,000	U.S. Treasury Bill, 0.10%, 09/18/14		49,952,334
	50,000,000	U.S. Treasury Note, 0.01%, 10/15/13		50,009,212
	50,000,000	U.S. Treasury Note, 0.15%, 12/15/13		50,061,018
	40,000,000	U.S. Treasury Note, 0.16%, 03/31/14		40,017,266
	60,000,000	U.S. Treasury Note, 0.14%, 07/31/14		59,992,065
	875,000,000	Total U.S. Government Obligations		874,965,043
		Total Investments (99.96%) (cost $1,986,965,043†)		1,986,965,043
		Cash and other assets, net of liabilities (0.04%)		722,771
		Net Assets (100.00%)	$	1,987,687,814
		†      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.

KEY:

GNMA =  Government National Mortgage Association

The accompanying notes are an integral part of these financial statements.

11

Daily Income Fund U.S. Treasury Portfolio

Schedule of Investments September 30, 2013 (Unaudited) (Continued)

BREAKDOWN OF PORTFOLIO HOLDINGS BY MATURITY (UNAUDITED)

Securities Maturing in	Value		% of Portfolio
Less than 31 Days	$	1,662,004,860		83.65	%
31 through 60 Days		0		0
61 through 90 Days		50,061,018		2.52
91 through 120 Days		0		0
121 through 180 Days		0		0
181 through 397 Days		274,899,165		13.83
Total	$	1,986,965,043		100.00	%

The accompanying notes are an integral part of these financial statements.

12

Daily Income Fund U.S. Government Portfolio

Schedule of Investments September 30, 2013 (Unaudited)

Face Amount		Security Description	Value (Note 1)
	COMMERCIAL PAPERS (3.75%)
$	30,000,000	Army & Air Force Exchange Service, Guaranteed by U.S. Government, 0.20%, 01/22/14	$	29,981,167
	45,000,000	Army & Air Force Exchange Service, Guaranteed by U.S. Government, 0.20%, 01/27/14		44,970,500
	75,000,000	Total Commercial Papers		74,951,667
	FLOATING RATE SECURITIES (5.50%)
$	50,000,000	Federal Farm Credit Bank, 0.16%, 08/15/14 (1)	$	49,991,399
	9,322,000	Overseas Private Investment Corporation, Guaranteed by U.S. Government, 0.13%, 01/15/21		9,322,000
	6,000,000	Overseas Private Investment Corporation, Guaranteed by U.S. Government, 0.13%, 06/15/17		6,000,000
	10,000,000	Overseas Private Investment Corporation, Guaranteed by U.S. Government, 0.13%, 06/15/17		10,000,000
	8,000,000	Overseas Private Investment Corporation, Guaranteed by U.S. Government, 0.13%, 06/15/34		8,000,000
	26,850,000	Overseas Private Investment Corporation, Guaranteed by U.S. Government, 0.13%, 12/15/19		26,850,000
	110,172,000	Total Floating Rate Securities		110,163,399
	REPURCHASE AGREEMENTS (33.24%)
$	173,000,000	BNY Mellon Capital Markets, LLC, 0.09%, dated 09/30/13, due 10/01/13, repurchase proceeds at maturity $173,000,433 (Collateralized by FHLMC, 3.000% to 4.000%, due 04/01/32 to 08/01/43, value $57,733,965, FNMA, 3.000% to 5.500%, due 05/01/27 to 10/01/43, value $118,727,064)	$	173,000,000
	197,000,000	BNY Mellon Capital Markets, LLC, 0.08%, dated 09/30/13, due 10/01/13. repurchase proceeds at maturity $197,000,438 (Collateralized by GNMA, 2.500% to 9.000%, due 08/15/17 to 09/20/43, value $200,940,000)		197,000,000

Face Amount		Security Description	Value (Note 1)
	REPURCHASE AGREEMENTS (CONTINUED)
$	100,000,000	Merrill Lynch, Pierce, Fenner & Smith, Inc., 0.04%, dated 09/30/13 due 10/01/13, repurchase proceeds at maturity $100,000,111 (Collateralized by GNMA, 1.625% to 8.500%, due 02/20/24 to 03/15/54, value $102,000,000)	$	100,000,000
	155,000,000	Merrill Lynch, Pierce, Fenner & Smith, Inc., 0.04%, dated 09/30/13 due 10/01/13, repurchase proceeds at maturity $155,000,172 (Collateralized by GNMA, 1.625% to 13.500%, due 12/20/13 to 12/15/54, value $158,100,001)		155,000,000
	40,000,000	UBS Securities, LLC, 0.02%, dated 09/30/13, due 10/01/13, repurchase proceeds at maturity $40,000,022 (Collateralized by FCSB, 0.250% to 6.300%, due 11/25/13 to 01/12/22, value $315,094, FHLB, 0.500% to 7.020%, due 06/03/14 to 11/17/17, value $717,884, FHLMC, 0.550% to 5.150%, due 01/07/14 to 01/13/22, value $1,711,427, FNMA, 0.875% to 6.625%, due 04/15/14 to 11/15/30, value $3,368,769, TVBD, 5.500%, due 07/18/17, value $582,750, USTR, 0.000% to 6.250%, due 12/05/13 to 09/30/17, value $34,104,506)		40,000,000
	665,000,000	Total Repurchase Agreements		665,000,000
	U.S. GOVERNMENT AGENCY DISCOUNT NOTES (43.80%)
$	37,000,000	Federal Agricultural Mortgage Corporation, 0.01%, 10/17/13	$	36,999,836
	25,000,000	Federal Agricultural Mortgage Corporation, 0.01%, 10/23/13		24,999,847
	12,000,000	Federal Agricultural Mortgage Corporation, 0.12%, 07/30/14		11,987,920
	15,000,000	Federal Agricultural Mortgage Corporation, 0.125%, 04/23/14		14,989,375
	35,000,000	Federal Agricultural Mortgage Corporation, 0.14%, 05/15/14		34,969,239
	25,000,000	Federal Agricultural Mortgage Corporation, 0.15%, 07/25/14		24,969,063
	20,000,000	Federal Agricultural Mortgage Corporation, 0.17%, 02/14/14		19,987,155

The accompanying notes are an integral part of these financial statements.

13

Daily Income Fund U.S. Government Portfolio

Schedule of Investments September 30, 2013 (Unaudited) (Continued)

Face Amount		Security Description	Value (Note 1)
	U.S. GOVERNMENT AGENCY DISCOUNT NOTES (CONTINUED)
$	17,985,000	Federal Agricultural Mortgage Corporation, 0.17%, 02/25/14	$	17,972,515
	25,000,000	Federal Agricultural Mortgage Corporation, 0.17%, 03/25/14		24,979,340
	25,000,000	Federal Agricultural Mortgage Corporation, 0.20%, 10/23/13		24,996,944
	20,900,000	Federal Agricultural Mortgage Corporation, 0.21%, 11/01/13		20,896,221
	10,000,000	Federal Farm Credit Bank, 0.01%, 10/07/13		9,999,983
	10,000,000	Federal Farm Credit Bank, 0.01%, 10/08/13		9,999,981
	10,000,000	Federal Farm Credit Bank, 0.01%, 10/15/13		9,999,961
	35,000,000	Federal Farm Credit Bank, 0.15%, 05/07/14		34,968,208
	19,000,000	Federal Farm Credit Bank, 0.19%, 10/11/13		18,998,997
	26,200,000	Federal Home Loan Bank, 0.01%, 10/18/13		26,199,876
	24,700,000	Federal Home Loan Bank, 0.01%, 10/25/13		24,699,835
	100,000,000	Federal Home Loan Bank, 0.01%, 10/29/13		99,999,222
	75,000,000	Federal Home Loan Bank, 0.025%, 12/18/13		74,995,938
	64,000,000	Federal Home Loan Bank, 0.045%, 01/17/14		63,991,360
	35,000,000	Federal Home Loan Bank, 0.11%, 11/06/13		34,996,325
	40,000,000	Federal Home Loan Bank, 0.16%, 06/17/14		39,953,956
	74,875,000	Federal National Mortgage Association, 0.01%, 10/10/13		74,874,813
	45,000,000	Federal National Mortgage Association, 0.02%, 01/07/14		44,997,550
	50,000,000	Federal National Mortgage Association, 0.13%, 06/02/14		49,955,945
	876,660,000	Total U.S. Government Agency Discount Notes		876,379,405
	U.S. GOVERNMENT AGENCY MEDIUM TERM NOTES (3.50%)
$	20,000,000	Federal Farm Credit Bank, 0.21%, 10/22/13	$	19,999,850
	50,000,000	Federal Home Loan Bank, 0.17%, 08/07/14		49,999,007
	70,000,000	Total U.S. Government Agency Medium Term Notes		69,998,857

Face Amount		Security Description	Value (Note 1)
	U.S. GOVERNMENT OBLIGATIONS (5.50%)
$	100,000,000	U.S. Treasury Bill, 0.0125%, 10/24/13	$	99,999,201
	10,000,000	U.S. Treasury Note, 0.16%, 03/31/14		10,004,317
	110,000,000	Total U.S. Government Obligations		110,003,518
	VARIABLE RATE DEMAND INSTRUMENTS (2) (4.68%)
$	3,000,000	California Statewide Communities Development Authority Multifamily Housing RB (Valley Palms Apartments Project) 2002 Series C-T, 0.12%, 05/15/35 Guaranteed by Federal National Mortgage Association	$	3,000,000
	4,800,000	City of Milpitas (The Crossing at Montague Apartments), CA Multifamily Housing RB 2000 Series A-T, 0.16%, 08/15/33 Guaranteed by Federal National Mortgage Association		4,800,000
	13,360,000	Dormitory Authority of the State of New York (Royal Charter Properties-East, Inc.) RB – Series 2006B, 0.13%, 11/15/36 Guaranteed by Federal National Mortgage Association		13,360,000
	750,000	Housing Authority of the County of Sacramento, CA Multifamily Housing RB (Deer Park Apartments) 2002 Issue A-T, 0.15%, 07/15/35 Guaranteed by Federal National Mortgage Association		750,000
	7,100,000	New York City HDC (Multi-Family Rental Housing RB (90 West Street) 2006 Series B, 0.09%, 03/15/36 Guaranteed by Federal National Mortgage Association		7,100,000
	14,025,000	New York City HDC Multi-Family Mortgage RB (201 Pearl Street Development) 2006 Series B, 0.09%, 10/15/41 Guaranteed by Federal National Mortgage Association		14,025,000
	2,355,000	New York City HDC Multi-Family Rental Housing RB (2 Gold Street) 2006 Series B, 0.09%, 04/15/36 Guaranteed by Federal National Mortgage Association		2,355,000

The accompanying notes are an integral part of these financial statements.

14

Daily Income Fund U.S. Government Portfolio

Schedule of Investments September 30, 2013 (Unaudited) (Continued)

Face Amount		Security Description	Value (Note 1)
	VARIABLE RATE DEMAND INSTRUMENTS (2) (CONTINUED)
$	4,070,000	New York City HDC Multi-Family Rental Housing RB (The Nicole) 2005 Series B, 0.15%, 11/15/35 Guaranteed by Federal National Mortgage Association	$	4,070,000
	6,800,000	New York City HDC Multi-Family Rental Housing RB (Related -Westport Development), 2004 Series B, 0.15%, 06/15/34 Guaranteed by Federal National Mortgage Association		6,800,000
	100,000	New York State Housing Finance Agency (Tower 31 Housing RB) 2006 Series A, 0.09%, 11/01/36 Guaranteed by Federal Home Loan Mortgage Corp.		100,000
	26,050,000	Redevelopment Agency of the City and County of San Francisco, CA Multifamily Housing RB (Related – Third and Mission) 1999 Series D, 0.16%, 08/15/31 Guaranteed by Federal National Mortgage Association		26,050,000
	4,925,000	Redevelopment Authority of the County of Montgomery, PA Multifamily Housing RB (Kingswood Apartment Project) 2001 A-T1, 0.16%, 08/15/31 Guaranteed by Federal National Mortgage Association		4,925,000
	3,510,000	Washington State Housing Finance Commission Multifamily Housing RB (Ballard Landmark Inn Project), Series 2006B, 0.15%, 12/15/41 Guaranteed by Federal Home Loan Bank		3,510,000

Face Amount		Security Description	Value (Note 1)
	VARIABLE RATE DEMAND INSTRUMENTS (2) (CONTINUED)
$	2,875,000	Washington State Housing Finance Commission Multifamily Housing RB (Bridgewood at Four Seasons Project), Series 2002B, 0.13%, 09/01/34 Guaranteed by Federal National Mortgage Association	$	2,875,000
	93,720,000	Total Variable Rate Demand Instruments		93,720,000
		Total Investments (99.97%) (cost $2,000,216,846†)		2,000,216,846
		Cash and other assets, net of liabilities (0.03%)		595,519
		Net Assets (100.00%)	$	2,000,812,365
		†     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.

FOOTNOTES:

1) The Interest rate is adjusted monthly based upon one month LIBOR minus 0.02%.

2) Securities payable on demand at par including accrued interest (usually with seven days notice) and where indicated are 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.

KEY:

FCSB	=  Federal Farm Credit Banks Consolidated     Systemwide Bonds
FHLB	=  Federal Home Loan Bank
FHLMC	=  Federal Home Loan Mortgage Corporation
FNMA	=  Federal National Mortgage Association
GNMA	=  Government National Mortgage Association
HDC	=  Housing Development Corporation
RB	=  Revenue Bond
TVBD	=  Tennessee Valley Power Bonds
USTR	=  U.S. Treasury Note

BREAKDOWN OF PORTFOLIO HOLDINGS BY MATURITY (UNAUDITED)

Securities Maturing in	Value		% of Portfolio
Less than 31 Days	$	1,350,651,747		67.52	%
31 through 60 Days		55,892,546		2.79
61 through 90 Days		74,995,937		3.75
91 through 120 Days		183,940,577		9.20
121 through 180 Days		62,939,011		3.15
181 through 397 Days		271,797,028		13.59
Total	$	2,000,216,846		100.00	%

The accompanying notes are an integral part of these financial statements.

15

Daily Income Fund Municipal Portfolio

Schedule of Investments September 30, 2013 (Unaudited)

Face Amount		Security Description	Value (Note 1)
	TAX EXEMPT COMMERCIAL PAPER (11.22%)
$	14,818,000	Maryland Health and Higher Educational Facilities Authority, MD Revenue Note (John Hopkins Health Systems) – Series B, 0.08%, 10/02/13	$	14,818,000
	13,000,000	Maryland Health and Higher Educational Facilities Authority, MD Revenue Note (John Hopkins Health Systems) – Series B, 0.09%, 10/02/13		13,000,000
	15,000,000	Pendleton County, KY Municipal Multi-County Lease RB (Kentucky Association of Counties Leasing Trust Program), 0.24%, 10/01/13 LOC JPMorgan Chase Bank, N.A.		15,000,000
	25,650,000	Tennessee City School Bond Authority Series 1997A, 0.10%, 10/01/13		25,650,000
	68,468,000	Total Tax Exempt Commercial Paper		68,468,000
	TAX EXEMPT OBLIGATION NOTES AND BONDS (16.13%)
$	6,500,000	Board of Cooperative Educational Service for the Sole Supervisory District of Onondaga, Cortland, and Madison Counties, NY RAN Series 2013, 0.70%, 06/18/14	$	6,536,771
	2,000,000	City School District of the City of Glens Falls, Warren County, NY GO RAN 2013, 0.51%, 06/20/14		2,003,417
	7,100,000	City School District of the City of Gloversville, Fulton County, NY BAN, 2013, 0.59%, 01/17/14		7,103,323
	1,120,000	City School District of the City of Mechanicville, Saratoga County, NY BAN 2013, 0.56%, 06/27/14		1,123,609
	3,501,498	City School District of the City of Poughkeepsie, Dutschess County, NY BAN 2013, 0.50%, 06/25/14		3,507,850
	2,000,000	Greene CSD, Chenango County, NY GO BAN 2013, 0.59%, 06/27/14		2,005,993
	4,500,000	Greenport Union Free School District, Suffolk County, NY TAN for 2013-2014 Taxes, 0.42%, 06/26/14		4,519,108
	1,935,000	Greenwich CSD, Washington County, NY BAN 2013, 0.54%, 06/26/14		1,937,955
	2,400,000	Hadley-Luzerne CSD, Saratoga and Warren Counties, NY BAN 2012, 0.51%, 07/16/14		2,409,222

Face Amount		Security Description	Value (Note 1)
	TAX EXEMPT OBLIGATION NOTES AND BONDS (CONTINUED)
$	2,000,000	Herkimer CSD, Herkimer County, NY BAN 2013, 0.65%, 04/24/14	$	2,003,898
	1,916,118	Jordan-Elbridge CSD, Onondaga and Cayuga Counties, NY BAN 2013, 0.62%, 07/24/14		1,925,866
	4,000,000	Lafayette CSD, Onondaga County, NY RAN 2013, 0.50%, 06/26/14		4,014,589
	2,350,000	Lansing CSD, Tompkins County, NY BAN 2013, 0.40%, 08/01/14		2,361,685
	3,500,000	Lewiston-Porter CSD, Niagara County, NY BAN 2013A, 0.55%, 09/18/14		3,523,489
	3,000,000	Merrick Union Free School District, Nassau County, NY TAN for 2013-2014 Taxes, 0.36%, 06/20/14		3,013,380
	10,677,420	Mexico CSD, Oswego County, NY GO BAN 2013, 0.45%, 07/18/14		10,723,824
	1,543,396	Minisink Valley CSD, Orange and Sullivan Counties, NY BAN 2013, 0.50%, 08/07/14		1,553,175
	2,190,000	Moriah CSD, Essex County, NY GO BAN 2013, 0.50%, 06/27/14		2,194,003
	1,048,861	New Hartford CSD, Oneida County, NY BAN 2013, 0.49%, 10/03/14		1,054,168
	1,475,000	Perry CSD, Wyoming County, NY BAN 2013, 0.65%, 06/25/14		1,478,744
	3,595,998	Phoenix CSD, Onondaga and Oswego Counties, NY BAN 2013, 0.45%, 06/19/14		3,610,128
	4,063,838	Pine Valley CSD, Cattaraugus and Chautauqua Counties, NY BAN 2013, 0.50%, 10/02/14		4,094,073
	1,565,635	Sandy Creek CSD, Oswego County, NY BAN 2013, 0.48%, 06/27/14		1,571,624
	1,850,000	Schoharie CSD, Schoharie County, NY BAN 2013, 0.54%, 06/27/14		1,856,221
	2,351,976	Sidney CSD, Delaware, Chenango and Otsego Counties, NY BAN 2013, 0.51%, 08/01/14		2,361,516
	6,277,443	Wappingers CSD, Dutchess and Putnam Counties, NY BAN 2013 Series A, 0.53%, 07/11/14		6,300,173
	6,000,000	Wappingers CSD, Dutchess and Putnam Counties, NY TAN 2013, 0.28%, 10/31/13		6,003,520
	4,000,000	West Seneca CSD, Erie County, NY BAN 2012, 0.49%, 11/27/13		4,001,600

The accompanying notes are an integral part of these financial statements.

16

Daily Income Fund Municipal Portfolio

Schedule of Investments September 30, 2013 (Unaudited) (Continued)

Face Amount		Security Description	Value (Note 1)
	TAX EXEMPT OBLIGATION NOTES AND BONDS (CONTINUED)
$	1,134,605	Whitesboro CSD, Oneida and Herkimer Counties, NY BAN 2013, 0.46%, 09/19/14	$	1,140,503
	2,450,000	Yorktown CSD, Westchester County, NY TAN for 2013-2014 Taxes, 0.29%, 10/31/13		2,450,913
	98,046,788	Total Tax Exempt Obligation Notes and Bonds		98,384,340
	TAX EXEMPT VARIABLE RATE DEMAND INSTRUMENTS (1) (72.61%)
$	3,000,000	ABAG Finance Authority for Nonprofit Corporation, CA RB (On Look Senior Health Services) – Series 2008, 0.04%, 08/01/38 LOC Wells Fargo Bank, N.A.	$	3,000,000
	1,755,000	Adams County IDA, PA RB (Say Plastics, Inc. Project) – Series 2007A, 0.27%, 08/01/32 LOC Wells Fargo Bank, N.A.		1,755,000
	4,200,000	Allegheny County IDA, PA Health Care RB (Vincentian Collaborative System) – Series 2008A, 0.08%, 06/01/38 LOC PNC Bank, N.A.		4,200,000
	2,500,000	BB&T Municipal Trust Floater Certificates – Series 5000 DLL, 0.17%, 10/01/28 LOC Rabobank Nederland, N.A.		2,500,000
	1,960,000	BB&T Municipal Trust Series 2006 (Puerto Rico Electric Power Authority – Series 2008-1 VV), 0.09%, 01/01/27 LOC Branch Banking and Trust Company		1,960,000
	2,000,000	BB&T Municipal Trust Series 2011, 0.11%, 09/01/22 LOC Branch Banking and Trust Company		2,000,000
	650,000	Broward County, FL HFA (Sailboat Bend Artist Lofts Project) – Series 2006, 0.28%, 04/15/38 (2) LOC Citibank, N.A.		650,000
	1,380,000	Calcasieu Parish Public Trust Authority Gulf Opportunity Zone RB (Delta Equine Center, L.L.C. Project) – Series 2007, 0.08%, 01/01/32 (2) LOC Branch Banking and Trust Company		1,380,000
	4,000,000	California Infrastructure and Economic Development Bank Refunding RB (Pacific Gas and Electric Company) – Series 2009A, 0.04%, 11/01/26 LOC Mizuho Corporate Bank, Ltd.		4,000,000

Face Amount		Security Description	Value (Note 1)
	TAX EXEMPT VARIABLE RATE DEMAND INSTRUMENTS (1) (CONTINUED)
$	4,000,000	California Infrastructure and Economic Development Bank Refunding RB (Pacific Gas and Electric Company) – Series 2009D, 0.01%, 12/01/16 LOC Sumitomo Mitsui Banking Corp.	$	4,000,000
	2,000,000	California PCFA Pollution Control Refunding RB (Pacific Gas and Electric Company) Series 1996C, 0.06%, 11/01/26 LOC JPMorgan Chase Bank, N.A.		2,000,000
	1,500,000	City of Galesburg, IL RB (Knox College Project) – Series 1999, 0.09%, 07/01/24 LOC PNC Bank, N.A.		1,500,000
	1,200,000	City of Jeffersontown, KY RB (Kentucky League of Cities Funding Trust Lease Program) – Series 2000, 0.08%, 03/01/30 LOC U.S. Bank, N.A.		1,200,000
	4,520,000	City of Milwaukee, WI IDRB (Midwest Express Airlines, Inc. Project) – Series 1998, 0.27%, 08/01/30 (2) LOC U.S. Bank, N.A.		4,520,000
	4,100,000	City of New York GO Bonds Fiscal 2004 Subseries A-6, 0.07%, 08/01/31 LOC Mizuho Corporate Bank, Ltd.		4,100,000
	3,735,000	City of Williamstown, KY RB (Kentucky League of Cities Funding Trust Lease Program) – Series 08A, 0.08%, 07/01/38 LOC U.S. Bank, N.A.		3,735,000
	3,000,000	Colorado HFA Solid Waste Disposal RB (Waste Management, Inc. Project) – Series 2003, 0.10%, 08/01/38 (2) LOC Wells Fargo Bank, N.A.		3,000,000
	6,000,000	Commonwealth of Puerto Rico Public Improvement Refunding Bonds Sub-Series 2003 C-5-2, 0.07%, 07/01/20 LOC Barclays Bank PLC		6,000,000
	2,240,000	Community Development Authority of the City of Manitowoc, WI Housing RB (Southbrook Manor Project) – Series 1998, 0.17%, 05/01/33 (2) LOC Federal Home Loan Bank		2,240,000

The accompanying notes are an integral part of these financial statements.

17

Daily Income Fund Municipal Portfolio

Schedule of Investments September 30, 2013 (Unaudited) (Continued)

Face Amount		Security Description	Value (Note 1)
	TAX EXEMPT VARIABLE RATE DEMAND INSTRUMENTS (1) (CONTINUED)
$	735,000	Community Development Authority of the Village of Saukville, WI IDRB (Calibre, Inc. Project) – Series 2004, 0.27%, 09/01/29 LOC BMO Harris Bank N.A.	$	735,000
	700,000	Connecticut State Development Authority Solid Waste Disposal Facilities RB (Rand – Whitney Containerboard Limited Partnership Project) – Series 1993, 0.10%, 08/01/23 (2) LOC BMO Harris Bank N.A.		700,000
	2,625,000	County of Jefferson, KY Industrial RRB (Zeochem L.L.C. Project) – Series 2001, 0.22%, 08/01/21 LOC UBS AG		2,625,000
	2,445,000	County of Saratoga Industrial Development Agency The Saratoga Hospital Obligated Group Civic Facility RB (The Saratoga Hospital Project – Letter of Credit Secured) – Series 2007A, 0.08%, 12/01/32 LOC HSBC Bank USA, N.A.		2,445,000
	10,615,000	Development Authority of Columbus, GA MHRB (Avalon apartments Projects) – Series 2008, 0.12%, 10/15/40 (2) Guaranteed by Federal National Mortgage Association		10,615,000
	4,000,000	Dormitory Authority of the State of New York RB (BlytheDale Children Hospital) – Series 2009, 0.08%, 12/01/36 LOC TD Bank, N.A.		4,000,000
	7,665,000	Dormitory Authority of the State of New York RB Highland Community Development Corporation Series 1994B, 0.09%, 07/01/23 LOC HSBC Bank USA, N.A.		7,665,000
	2,800,000	Dormitory Authority of the State of New York RB (F.F.T Senior Communities, Inc.) – Series 2012, 0.07%, 07/01/39 LOC HSBC Bank USA, N.A.		2,800,000
	1,700,000	Duval County, FL HFA Multifamily Housing Mortgage RB (Camri Green Apartments) – Series 2003, 0.10%, 11/15/36 (2) Guaranteed by Federal National Mortgage Association		1,700,000

Face Amount		Security Description	Value (Note 1)
	TAX EXEMPT VARIABLE RATE DEMAND INSTRUMENTS (1) (CONTINUED)
$	9,060,000	Federal Home Loan Mortgage Corporation Class A Multi-family Certificates, Series M015, 0.11%, 05/15/46 (2)	$	9,060,000
	850,000	Florida Development Finance Corporation Enterprise Bond Program IDRB (Press Ex, Inc. Project) – Series 2007B, 0.15%, 07/01/17 (2) LOC Branch Banking and Trust Company		850,000
	4,600,000	Fulton County, KY Industrial Building RB (The Burke-Parsons-Bowlby Corporation Project) – Series 2006, 0.25%, 07/01/26 (2) LOC Branch Banking and Trust Company		4,600,000
	10,000,000	HEFA of the State of Missouri, MO Health Facilities RB (Lutheran Senior Services) – Series 2008, 0.07%, 02/01/39 LOC PNC Bank, N.A.		10,000,000
	7,400,000	Housing Authority of Cobb County, GA MHRB (Highland Ridge Apartments Project) – Series 2008, 0.07%, 07/01/41 Guaranteed by Federal Home Loan Mortgage Corporation		7,400,000
	1,690,000	Housing Authority of the County of Door, WI Housing RB (Big Hill Regency House Project) – Series 1998, 0.17%, 11/01/28 (2) LOC Federal Home Loan Bank		1,690,000
	2,930,000	Howard County, MD RB (Glenelg Country School, Inc. Facility) – Series 2008, 0.07%, 07/01/33 LOC PNC Bank, N.A.		2,930,000
	2,400,000	Irvine Ranch Water District, CA Consolidated GO’s of Improvement District Nos 105, 140, 240 & 250 – Series 1995, 0.06%, 01/01/21 LOC Sumitomo Mitsui Banking Corp.		2,400,000
	1,700,000	King George County, VA IDA RB (Birchwood Power Partners, L.P. Project) – Series 1995, 0.07%, 11/01/25 (2) LOC Bank of Nova Scotia		1,700,000
	24,500,000	Long Island Power Authority Electric System GO, NY RB Series 2012D, 0.06%, 12/01/29 LOC TD Bank, N.A.		24,500,000

The accompanying notes are an integral part of these financial statements.

18

Daily Income Fund Municipal Portfolio

Schedule of Investments September 30, 2013 (Unaudited) (Continued)

Face Amount		Security Description	Value (Note 1)
	TAX EXEMPT VARIABLE RATE DEMAND INSTRUMENTS (1) (CONTINUED)
$	600,000	Loudoun County, VA IDA RB (Howard Hughes Medical Institute Issue) – Series 2003C, 0.07%, 02/15/38	$	600,000
	1,440,000	Lower Neches Valley Authority IDC, TX RRB (ExxonMobil Project) – Series 2001 Subseries 2001A, 0.06%, 11/01/29		1,440,000
	1,085,000	Michigan Strategic Fund Limited Obligation RB (Midbrook Products, Inc. Project) – Series 1994, 0.27%, 10/01/14 (2) LOC PNC Bank, N.A.		1,085,000
	4,000,000	Mississippi Business Finance Corporation Gulf Opportunity Zone IDRB (Chevron U.S.A. Inc. Project) – Series 2010G, 0.03%, 11/01/35		4,000,000
	10,675,000	MTA Dedicated Tax Fund Refunding Bonds – Series 2008A Subseries 2008A-2, 0.06%, 11/01/31 LOC Bank of Tokyo-Mitsubishi UFJ Ltd.		10,675,000
	9,000,000	MTA Transportation RB – Series 2005 D-2, 0.06%, 11/01/35 LOC Landesbank Hessen-Thuringen Girozentrale		9,000,000
	9,700,000	Narragansett Bay Commission Wastewater System, RI RRB 2008 Series A, 0.07%, 09/01/34 LOC U.S. Bank, N.A.		9,700,000
	3,450,000	Nevada Housing Division MHRB (Golden Apartment) – Series 2007, 0.10%, 10/01/37 (2) Guaranteed by Federal Home Loan Mortgage Corporation		3,450,000
	1,800,000	Nevada Housing Division Multi-Unit Housing RB (Maryland Villas Project) – Series 1997A, 0.10%, 10/01/30 (2) LOC U.S. Bank, N.A.		1,800,000
	2,500,000	New Jersey EDA IDRB (CST Products, LLC Project) – Series 2006, 0.21%, 04/01/26 LOC National Bank of Canada		2,500,000
	2,600,000	New Jersey Health Care Facilities Financing Authority RB (Robert Wood Johnson University Hospital Project) – Series 2003 A-3, 0.05%, 07/01/23 LOC Wells Fargo Bank, N.A.		2,600,000

Face Amount		Security Description	Value (Note 1)
	TAX EXEMPT VARIABLE RATE DEMAND INSTRUMENTS (1) (CONTINUED)
$	3,500,000	New York City Housing Development Corporation Multi-Family Rental Housing RB (100 Jane Street Development) – Series A, 0.08%, 09/15/28 (2) Collateralized by Federal National Mortgage Association	$	3,500,000
	5,000,000	New York City Housing Development Corporation Multi-Family Rental Housing RB (Brookhaven Apartments) – Series 2004 A, 0.09%, 01/01/36 (2) LOC Citibank, N.A.		5,000,000
	3,900,000	New York City Industrial Development Agency Civic Facility RB (2004 Jamaica First Parking, LLC Project), 0.08%, 03/01/34 LOC TD Bank, N.A.		3,900,000
	16,000,000	New York City Transitional Finance Authority Future Tax Secured Refunding Senior Bonds Fiscal 2003 Subseries A-3, 0.06%, 11/01/29 LOC Bank of Tokyo-Mitsubishi UFJ Ltd.		16,000,000
	4,575,000	New York City, NY Adjustable Rate Subseries A-6, 0.08%, 08/01/19 LOC Landesbank Hessen-Thuringen Girozentrale		4,575,000
	6,200,000	New York City, NY GO Bonds – Series 1994 E-4, Subseries E4, 0.08%, 08/01/22 LOC BNP Paribas, N.A.		6,200,000
	2,900,000	New York City, NY HDC Multi-Family Mortgage RB (White Plains Courtyard Apartments) – Series 2005A, 0.09%, 03/01/38 (2) Guaranteed by Federal Home Loan Mortgage Corporation		2,900,000
	5,300,000	New York City, NY IDA Liberty RB (FC Hanson Office Associates, LLC Project) – Series 2004, 0.07%, 12/01/39 LOC Lloyds TSB Bank PLC		5,300,000
	1,200,000	New York State Dormitory Authority RB (Cornell University) – Series 2000A, 0.08%, 07/01/29		1,200,000
	1,345,000	New York State Dormitory Authority RB (LeMoyne College Project) – Series 2009, 0.07%, 01/01/39 LOC TD Bank, N.A.		1,345,000

The accompanying notes are an integral part of these financial statements.

19

Daily Income Fund Municipal Portfolio

Schedule of Investments September 30, 2013 (Unaudited) (Continued)

Face Amount		Security Description	Value (Note 1)
	TAX EXEMPT VARIABLE RATE DEMAND INSTRUMENTS (1) (CONTINUED)
$	10,480,000	New York State Energy Research and Development Authority Facilities RB (Consolidated Edison company of New York, Inc. Project) – Series 2005A-3, 0.06%, 05/01/39 LOC Mizuho Corporate Bank Ltd.	$	10,480,000
	5,000,000	New York State HFA RB (Tribeca Green Housing) – Series 2003A, 0.11%, 11/01/36 LOC Landesbank Hessen-Thuringen Girozentrale		5,000,000
	5,000,000	New York State Housing Finance Agency RB (10 Liberty Street Housing) – 2003 Series A, 0.07%, 05/01/35 Guaranteed by Federal Home Loan Mortgage Corporation		5,000,000
	4,000,000	New York State Housing Finance Agency RB (Capitol Green Apartments Housing) – Series 2006A, 0.09%, 05/15/36 (2) Guaranteed by Federal National Mortgage Association		4,000,000
	3,900,000	New York State Housing Finance Agency RB (Capitol Green Apartments Housing) – Series 2006A, 0.09%, 05/15/36 (2) Guaranteed by Federal National Mortgage Association		3,900,000
	3,100,000	New York State Housing Finance Agency RB (Gotham West Housing) – Series 2011A-2, 0.05%, 05/01/45 LOC Wells Fargo, N.A.		3,100,000
	11,000,000	New York State Housing Finance Agency (388 Bridge Street Housing RB) – 2012 Series A, 0.08%, 05/01/46 LOC Manufacturers and Trader Trust Company		11,000,000
	2,550,000	Oneida County Industrial Development Agency Civic Facility, NY RB (St. Elizabeth Medical Center Facility) – Series 2006A, 0.09%, 06/01/26 LOC HSBC Bank USA, N.A.		2,550,000
	1,000,000	Orange County, FL HFA MHRB (Post Fountains at Lee Vista Project) – Series 1997E, 0.08%, 06/01/25 Collateralized by Federal National Mortgage Association		1,000,000

Face Amount		Security Description	Value (Note 1)
	TAX EXEMPT VARIABLE RATE DEMAND INSTRUMENTS (1) (CONTINUED)
$	3,500,000	Palm Beach County, FL RB (Norton Gallery and School of Art, Inc. Project) – Series 1995, 0.12%, 05/01/25 LOC Northern Trust Bank	$	3,500,000
	2,000,000	Pennsylvania EDFA EDRB (Joseph R & Nancy L DelSignore Project) – 2005 Series B-2, 0.16%, 08/01/30 (2) LOC PNC Bank, N.A.		2,000,000
	2,890,000	Pittsburg, CA Redevelopment Agency (Los Medanos Community Development Project) – 2004 Series A, 0.06%, 09/01/35 LOC State Street Bank & Trust Company/California State Teachers Retirement System		2,890,000
	7,800,000	Public Finance Authority Midwestern Disaster Area, WI RB Series 2011 (RPD Holdings, LLC and HGI Wisconsin, LLC Project), 0.07%, 09/01/36 LOC Farm Credit Service of America / AgriBank Farm Credit Bank		7,800,000
	800,000	Rockingham County, NC Industrial Facilities and PCFA IDRB (Eden Custom Processing, LLC Project) – Series 2004, 0.15%, 01/01/17 (2) LOC Branch Banking and Trust Company		800,000
	1,650,000	South Carolina State Jobs EDA EDRB (Diversified Coating Systems, Inc Project) – Series 2002, 0.15%, 04/01/17 (2) LOC Branch Banking and Trust Company		1,650,000
	9,150,000	State of California GO Bonds – Series 2004B-1, 0.06%, 05/01/34 LOC Citibank, N.A.		9,150,000
	4,320,000	State of California GO Bonds – Series A-2, 0.05%, 05/01/34 LOC State Street Bank and Trust Company and California State Teacjers Retirement Systems		4,320,000
	7,675,000	State of California GO Series A1-2, 0.06%, 05/01/40 LOC Royal Bank of Canada		7,675,000
	2,680,000	State of Connecticut HEFA RB (Yale University Issue) – Series V-1, 0.05%, 07/01/36		2,680,000

The accompanying notes are an integral part of these financial statements.

20

Daily Income Fund Municipal Portfolio

Schedule of Investments September 30, 2013 (Unaudited) (Continued)

Face Amount		Security Description	Value (Note 1)
	TAX EXEMPT VARIABLE RATE DEMAND INSTRUMENTS (1) (CONTINUED)
$	1,800,000	State of Connecticut HEFA RB (Gaylord Hospital Issue) – Series B, 0.13%, 07/01/37 LOC Bank of America, N.A.	$	1,800,000
	1,800,000	State of Connecticut HEFA RB (Yale-New Haven Hospital Issue) – Series K-1, 0.08%, 07/01/25 LOC JPMorgan Chase Bank, N.A.		1,800,000
	6,100,000	State of Connecticut HEFA RB (Yale University Issue) – Series T-2, 0.05%, 07/01/29		6,100,000
	5,500,000	State of Connecticut HEFA RB (Yale University Issue) – Series U-1, 0.06%, 07/01/33		5,500,000
	3,700,000	Suffolk County, NY IDA Civic Facility RB (St. Anthony’s High School Civic Facility) – Series 2006, 0.06%, 12/01/36 LOC U.S. Bank, N.A.		3,700,000
	800,000	Suffolk, VA Redevelopment and Housing Authority MHRB (Oak Springs Apartments, LLC Project) – Series 1999, 0.13%, 12/01/19 Guaranteed by Federal Home Loan Mortgage Corporation		800,000
	2,335,000	The City of New York Fiscal 2004 Series H-4, 0.05%, 03/01/34 LOC Bank of New York Mellon, N.A.		2,335,000
	1,000,000	The City of New York GO Bonds, Fiscal 2008 Series J-6, 0.08%, 08/01/24 LOC Landesbank Hessen-Thuringen Girozentrale		1,000,000
	2,500,000	The City of New York GO Bonds, Fiscal 2008 Series L-4, 0.06%, 04/01/38 LOC U.S. Bank, N.A		2,500,000
	10,745,000	The City of New York GO Bonds, Fiscal 2012 Series D, Subseries D-3, 0.05%, 10/01/39 LOC Bank of New York Mellon, N.A.		10,745,000
	100,000	The City of New York GO Bonds, Fiscal 2012 Series G Subseries G-4, 0.05%, 04/01/42 LOC PNC Bank, N.A.		100,000
	3,800,000	The City of New York GO, Fiscal 1994 Series A-7, 0.07%, 08/01/20 LOC JPMorgan Chase Bank, N.A.		3,800,000

Face Amount		Security Description	Value (Note 1)
	TAX EXEMPT VARIABLE RATE DEMAND INSTRUMENTS (1) (CONTINUED)
$	1,815,000	The County Commission of Cabell County, WV Adjustable Rate Demand Commercial Development RB (Valley Health Systems, Inc. Project)) – Series 2006A, 0.21%, 01/01/32 LOC JPMorgan Chase Bank, N.A.	$	1,815,000
	2,710,000	The Economic Development Corporation of the City of Lapeer, MI RB (H & H Tool, Inc. Project) – Series 2007, 0.10%, 01/01/37 LOC PNC Bank, N.A		2,710,000
	3,800,000	The Trust for Cultural Resources of the City of New York RB (WNYC Radio, Inc.) – Series 2006, 0.05%, 04/01/26 LOC Wells Fargo Bank, N.A.		3,800,000
	4,700,000	The Trust for Cultural Resources of the City of New York RRB (Lincoln Center for the Performing Arts, Inc.) – 2008A-2, 0.05%, 12/01/35 LOC Bank of New York Mellon, N.A.		4,700,000
	7,095,000	The Trust for Cultural Resources of the of the County of Onondaga, Onondaga County, NY RB (Syracuse University Project) – Series 2010A, 0.06%, 12/01/29 LOC Wells Fargo Bank, N.A.		7,095,000
	3,200,000	Three Valleys Municipal Water District, NY COP (Miramar Water Treatment, Water Transmission and Hydroelectric Generating Facilities Projects), 0.08%, 11/01/14 LOC Wells Fargo Bank, N.A.		3,200,000
	1,500,000	Town of Riverhead, NY IDA RB (Altaire Pharmaceuticals, Inc. Facility) – Series 1998, 0.10%, 10/01/13 (2) LOC Bank of New York Mellon, N.A.		1,500,000
	6,295,000	Triborough Bridge and Tunnel Authority RB Series 2001B, 0.07%, 01/01/32 LOC State Street Bank & Trust Company		6,295,000
	160,000	University of North Carolina at Chapel Hill RB – Series 2001B, 0.05%, 12/01/25		160,000

The accompanying notes are an integral part of these financial statements.

21

Daily Income Fund Municipal Portfolio

Schedule of Investments September 30, 2013 (Unaudited) (Continued)

Face Amount		Security Description	Value (Note 1)
	TAX EXEMPT VARIABLE RATE DEMAND INSTRUMENTS (1) (CONTINUED)
$	800,000	Upper Illinois River Valley Development Authority IDRB (Advanced Flexible Composites, Inc. Project) – Series 2003-A, 0.21%, 06/01/25 (2) LOC Bank of America, N.A.	$	800,000
	15,600,000	Utah Transit Authority Subordinated Sales Tax RB, Series 2006B, 0.06%, 06/15/36 LOC BNP Paribas, N.A.		15,600,000
	3,600,000	Washington Health Care Facilities Authority RB (MultiCare Health System) – Series 2007D, 0.06%, 08/15/41 LOC Barclays Bank PLC		3,600,000
	2,700,000	Washington State HFC MHRB (The Seasons Apartment Project) – Series 2006, 0.10%, 12/15/40 (2) Guaranteed by Federal National Mortgage Association		2,700,000
	8,005,000	Washington State HFC Nonprofit Housing RB (Rockwood Retirement Communities Program) – Series 2002, 0.06%, 01/01/34 LOC Wells Fargo Bank, N.A.		8,005,000
	3,455,000	Wisconsin HEFA RB (Cedar Crest Inc. Project) – Series 2006, 0.07%, 07/01/31 LOC BMO Harris Bank N.A.		3,455,000
	443,035,000	Total Tax Exempt Variable Rate Demand Instruments		443,035,000
		Total Investments (99.96%)		609,887,340
		(cost $609,887,340†)
		Cash and other assets, net of liabilities (0.04%)		265,260
		Net Assets (100.00%)	$	610,152,600
		†      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.

FOOTNOTES:

1) Securities payable on demand at par including accrued interest (usually with seven days notice) and where indicated are 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.

2) Security subject to alternative minimum tax.

KEY:

BAN	=  Bond Anticipation Note
COP	=  Certificates of Participation
CSD	=  Central School District
EDA	=  Economic Development Authority
EDFA	=  Economic Development Finance Authority
EDRB	=  Economic Development Revenue Bond
GO	=  General Obligation
HDC	=  Housing Development Corporation
HEFA	=  Health and Education Facilities Authority
HFA	=  Housing Finance Authority
HFC	=  Housing Finance Commission
IDA	=  Industrial Development Authority
IDC	=  Industrial Development Corporation
IDRB	=  Industrial Development Revenue Bond
LOC	=  Letter of Credit
MHRB	=  Multi-Family Housing Revenue Bond
MTA	=  Metropolitan Transportation Authority
PCFA	=  Pollution Control Finance Authority
RAN	=  Revenue Anticipation Note
RB	=  Revenue Bond
RRB	=  Revenue Refunding Bonds
TAN	=  Tax Anticipation Note

The accompanying notes are an integral part of these financial statements.

22

Daily Income Fund Municipal Portfolio

Schedule of Investments September 30, 2013 (Unaudited) (Continued)

BREAKDOWN OF PORTFOLIO HOLDINGS BY MATURITY (UNAUDITED)

Securities Maturing in	Value		% of Portfolio
Less than 31 Days	$	511,503,000		83.87	%
31 through 60 Days		12,456,033		2.04
61 through 90 Days		-0-		-0-
91 through 120 Days		7,103,324		1.17
121 through 180 Days		-0-		-0-
181 through 397 Days		78,824,983		12.92
Total	$	609,887,340		100.00	%

BREAKDOWN OF PORTFOLIO HOLDINGS BY STATE (UNAUDITED)

States	Value		% of Portfolio
California	$	44,635,000		7.32	%
Colorado		3,000,000		0.49
Connecticut		18,580,000		3.05
Florida		7,700,000		1.26
Georgia		18,015,000		2.95
Illinois		2,300,000		0.38
Kentucky		27,160,000		4.45
Louisiana		1,380,000		0.23
Maryland		30,748,000		5.04
Michigan		3,795,000		0.62
Mississippi		4,000,000		0.66
Missouri		10,000,000		1.64
Nevada		5,250,000		0.86
New Jersey		5,100,000		0.84
New York		306,089,340		50.19
North Carolina		960,000		0.16
Pennsylvania		7,955,000		1.30
Puerto Rico		7,960,000		1.30
Rhode Island		9,700,000		1.59
South Carolina		1,650,000		0.27
Tennessee		25,650,000		4.21
Texas		1,440,000		0.24
Utah		15,600,000		2.56
Virginia		3,100,000		0.51
Washington		14,305,000		2.34
West Virginia		1,815,000		0.30
Wisconsin		20,440,000		3.35
Other Territories		11,560,000		1.89
Total	$	609,887,340		100.00	%

The accompanying notes are an integral part of these financial statements.

23

Statements of Assets and Liabilities September 30, 2013 (Unaudited)

	Daily Income Fund Money Market Portfolio		Daily Income Fund U.S. Treasury Portfolio		Daily Income Fund U.S. Government Portfolio		Daily Income Fund Municipal Portfolio
: Assets
Investments in securities, at amortized cost (Note 1)	$	6,040,941,031	$	874,965,043	$	1,335,216,846	$	609,887,340
Repurchase agreements		707,000,000		1,112,000,000		665,000,000		—
Cash		118,494		739,745		994,710		8,321,759
Accrued interest receivable		1,472,170		240,386		46,205		259,662
Prepaid expenses		195,087		72,095		51,871		42,831
Total assets		6,749,726,782		1,988,017,269		2,001,309,632		618,511,592
: Liabilities
Payable to affiliates (Note 2)		1,034,969		5,000		116,673		35,651
Securities purchase payable		—		—		—		8,161,621
Accrued expenses		1,150,694		320,608		372,548		160,069
Dividends payable		40,392		3,847		8,046		1,651
Total liabilities		2,226,055		329,455		497,267		8,358,992
Net assets	$	6,747,500,727	$	1,987,687,814	$	2,000,812,365	$	610,152,600
: Source of Net Assets
Net capital paid in on share of capital stock (Note 5)	$	6,747,318,610	$	1,987,684,278	$	2,000,805,834	$	610,151,592
Accumulated undistributed net investment income		—		—		4,987		—
Accumulated net realized gain (loss)		182,117		3,536		1,544		1,008
Net assets	$	6,747,500,727	$	1,987,687,814	$	2,000,812,365	$	610,152,600

NET ASSET VALUE, PER SHARE (NOTE 5):

	Daily Income Fund Money Market Portfolio						Daily Income Fund U.S. Treasury Portfolio
Class Name	Net Assets		Shares Outstanding		Net Asset Value		Net Assets		Shares Outstanding		Net Asset Value
Institutional Shares		$416,564,229		416,548,436		$1.00		$901,897,943		901,924,156		$1.00
Institutional Service Shares		$56,101,331		56,099,204		$1.00		$203,858,827		203,864,752		$1.00
Investor Shares		$143,999,783		143,994,324		$1.00		$225,938,653		225,945,219		$1.00
Investor Service Shares		$274,611,396		274,600,985		$1.00		$162,291,753		162,296,470		$1.00
Retail Shares		$2,159,512,845		2,159,430,973		$1.00		$76,764,393		76,766,624		$1.00
Advantage Shares		$1,950,839,571		1,950,765,610		$1.00		—		—		—
Xpress Shares		$275,740,254		275,729,800		$1.00		—		—		—
Fiduciary Shares		$1,116,556,425		1,116,514,093		$1.00		$268,213,562		268,221,358		$1.00
Investor Select Shares		$353,574,893		353,561,489		$1.00		$148,722,683		148,727,006		$1.00
Total		$6,747,500,727		6,747,244,914				$1,987,687,814		1,987,745,585

	Daily Income Fund U.S. Government Portfolio						Daily Income Fund Municipal Portfolio
Class Name	Net Assets		Shares Outstanding		Net Asset Value		Net Assets		Shares Outstanding		Net Asset Value
Institutional Shares		$22,910,740		22,911,390		$1.00		$905,997		906,321		$1.00
Institutional Service Shares		$132,792,617		132,796,387		$1.00		$3,082,177		3,083,279		$1.00
Investor Service Shares		—		—		—		$52,100,808		52,119,430		$1.00
Retail Shares		$294,367,452		294,375,809		$1.00		$239,830,441		239,916,164		$1.00
Advantage Shares		$1,017,892,224		1,017,921,124		$1.00		$314,233,177		314,345,493		$1.00
Fiduciary Shares		$473,488,819		473,502,262		$1.00		—		—		—
Investor Select Shares		$59,360,513		59,362,199		$1.00		—		—		—
Total		$2,000,812,365		2,000,869,171				$610,152,600		610,370,687

The accompanying notes are an integral part of these financial statements.

24

Statements of Operations Six Months Ended September 30, 2013 (Unaudited)

	Daily Income Fund Money Market Portfolio			Daily Income Fund U.S. Treasury Portfolio			Daily Income Fund U.S. Government Portfolio			Daily Income Fund Municipal Portfolio
: Investment Income
INCOME:
Interest	$	6,254,738		$	509,166		$	1,314,433		$	534,382
EXPENSES: (NOTE 2)
Investment management fee		2,996,618			907,170			1,124,328			372,370
Administration fee		1,248,591			377,987			468,470			155,154
Shareholder servicing fee (Institutional Service Shares)		82,192			228,593			162,054			3,728
Shareholder servicing fee (Investor Shares)		183,119			282,799			—			—
Shareholder servicing fee (Investor Service Shares)		334,961			189,522			—			65,599
Shareholder servicing fee (Retail Shares)		1,589,006			94,306			505,253			317,085
Shareholder servicing fee (Advantage Shares)		2,290,449			—			1,310,408			387,707
Shareholder servicing fee (Xpress Shares)		336,943			—			—			—
Shareholder servicing fee (Fiduciary Shares)		579,814			135,024			298,125			—
Shareholder servicing fee (Investor Select Shares)		174,963			74,634			38,452			—
Distribution fee (Investor Shares)		146,496			226,239			—			—
Distribution fee (Investor Service Shares)		602,930			341,139			—			118,078
Distribution fee (Retail Shares)		4,131,414			245,196			1,313,658			824,421
Distribution fee (Advantage Shares)		6,871,348			—			3,931,225			1,163,121
Distribution fee (Xpress Shares)		1,010,829			—			—			—
Distribution fee (Fiduciary Shares)		231,925			54,010			119,250			—
Distribution fee (Investor Select Shares)		244,948			104,488			53,833			—
Custodian		142,963			25,264			29,068			12,798
Shareholder servicing and related shareholder		844,923	(a)		280,787	(b)		242,284	(c)		108,532	(d)
Legal, compliance and filing fees		422,771			106,945			92,891			55,709
Audit and accounting		185,991			94,976			102,137			59,908
Trustees’ fees and expenses		149,425			47,811			57,692			21,103
Others		46,541			19,072			16,846			7,224
Total expenses		24,849,160			3,835,962			9,865,974			3,672,537
Less: Fees waived (Note 2)		(19,109,135	)		(3,344,079	)		(8,645,343	)		(3,169,087	)
Net expenses		5,740,025			491,883			1,220,631			503,450
Net investment income		514,713			17,283			93,802			30,932
: Realized Gain (Loss) on Investments
Net realized gain (loss) on investments		311,662			(3,140	)		20,122			648
Increase in net assets from operations	$	826,375		$	14,143		$	113,924		$	31,580

(a) Includes class specific transfer agency expenses of $57,224, $4,398, $37,497, $68,088, 318,067, 115,963 and $34,993 for the Institutional, Institutional Service, Investor, Investor Service, Retail, Fiduciary and Investor Select Shares, respectively.

(b) Includes class specific transfer agency expenses of $71,124, $18,914, $57,074, $39,448, $18,269, 27,005 and $14,927 for the Institutional, Institutional Service, Investor, Investor Service, Retail, Fiduciary and Investor Select Shares, respectively.

(c) Includes class specific transfer agency expenses of $2,955, $12,165, $103,493, $59,625 and $7,690 for the Institutional, Institutional Service, Retail, Fiduciary and Investor Select Shares, respectively.

(d) Includes class specific transfer agency expenses of $143, $298, $14,269 and $63,983 for the Institutional, Institutional Service, Investor Service and Retail Shares, respectively.

The accompanying notes are an integral part of these financial statements.

25

Statements of Changes in Net Assets

	Daily Income Fund Money Market Portfolio						Daily Income Fund U.S. Treasury Portfolio
	Six Months Ended September 30, 2013 (Unaudited)			Year Ended March 31, 2013			Six Months Ended September 30, 2013 (Unaudited)			Year Ended March 31, 2013
: Increase (Decrease) in Net Assets from
OPERATIONS:
Net investment income	$	514,713		$	985,115		$	17,283		$	116,388
Net realized gain (loss) on investments		311,662			1,333,095			(3,140	)		9,254
Increase in net assets from operations		826,375			2,318,210			14,143			125,642
DIVIDENDS TO SHAREHOLDERS FROM NET INVESTMENT INCOME:
Institutional Shares		(139,939	)		(488,299	)		(7,115	)		(67,203	)
Institutional Service Shares		(3,287	)		(7,113	)		(1,879	)		(17,636	)
Investor Shares		(7,323	)		(16,284	)		(2,131	)		(13,831	)
Investor Service Shares		(13,394	)		(24,399	)		(1,411	)		(12,227	)
Retail Shares		(63,535	)		(86,439	)		(734	)		(5,491	)
Advantage Shares		(183,197	)		(335,408	)		—			—
Xpress Shares		(13,473	)		(27,173	)		—			—
Fiduciary Shares		(69,571	)		—			(2,583	)		—
Investor Select Shares		(20,994	)		—			(1,430	)		—
Total dividends to shareholders		(514,713	)		(985,115	)		(17,283	)		(116,388	)
DIVIDENDS TO SHAREHOLDERS FROM REALIZED GAINS ON INVESTMENTS:
Institutional Shares		—			—			—			—
Institutional Service Shares		—			—			—			—
Investor Shares		—			—			—			—
Investor Service Shares		—			—			—			—
Retail Shares		—			—			—			—
Advantage Shares		—			—			—			—
Xpress Shares		—			—			—			—
Fiduciary Shares		—			—			—			—
Investor Select Shares		—			—			—			—
Total dividends to shareholders		—			—			—			—
CAPITAL SHARE TRANSACTIONS (NOTE 5):
Institutional Shares		135,341,147			(26,412,668	)		325,757,848			(114,563,587	)
Institutional Service Shares		(8,382,675	)		(19,077,343	)		40,338,643			(78,312,169	)
Investor Shares		(2,726,208	)		(20,192,823	)		17,024,296			2,341,374
Investor Service Shares		3,652,579			50,759,159			9,494,460			(2,338,181	)
Retail Shares		1,257,109,496			79,621,917			(10,789,256	)		58,306,776
Advantage Shares		153,750,513			247,705,688			—			—
Xpress Shares		(7,096,739	)		(757,093	)		—			—
Fiduciary Shares		1,116,517,424			—			268,210,204			—
Investor Select Shares		353,562,544			—			148,720,821			—
Total capital share transactions		3,001,728,081			311,646,837			798,757,016			(134,565,787	)
Total increase/(decrease)		3,002,039,743			312,979,932			798,753,876			(134,556,533	)
NET ASSETS:
Beginning of period		3,745,460,984			3,432,481,052			1,188,933,938			1,323,490,471
End of period	$	6,747,500,727		$	3,745,460,984		$	1,987,687,814		$	1,188,933,938
UNDISTRIBUTED (OVERDISTRIBUTED) NET INVESTMENT INCOME	$	—		$	—		$	—		$	—

The accompanying notes are an integral part of these financial statements.

26

Statements of Changes in Net Assets (Continued)

	Daily Income Fund U.S. Government Portfolio						Daily Income Fund Municipal Portfolio
	Six Months Ended September 30, 2013 (Unaudited)			Year Ended March 31, 2013			Six Months Ended September 30, 2013 (Unaudited)			Year Ended March 31, 2013
: Increase (Decrease) in Net Assets from
OPERATIONS:
Net investment income	$	93,802		$	143,648		$	30,932		$	84,746
Net realized gain (loss) on investments		20,122			52,089			648			867
Increase in net assets from operations		113,924			195,737			31,580			85,613
DIVIDENDS TO SHAREHOLDERS FROM NET INVESTMENT INCOME:
Institutional Shares		(1,249	)		(7,819	)		(66	)		(1,028	)
Institutional Service Shares		(6,481	)		(8,933	)		(150	)		(193	)
Investor Service Shares		—			—			(2,617	)		(7,254	)
Retail Shares		(20,207	)		(30,144	)		(12,641	)		(36,558	)
Advantage Shares		(52,405	)		(96,752	)		(15,458	)		(39,713	)
Fiduciary Shares		(11,922	)		—			—			—
Investor Select Shares		(1,538	)		—			—			—
Total dividends to shareholders		(93,802	)		(143,648	)		(30,932	)		(84,746	)
DIVIDENDS TO SHAREHOLDERS FROM REALIZED GAINS ON INVESTMENTS:
Institutional Shares		—			—			—			—
Institutional Service Shares		—			—			—			—
Investor Service Shares		—			—			—			—
Retail Shares		—			—			—			—
Advantage Shares		—			—			—			—
Fiduciary Shares		—			—			—			—
Investor Select Shares		—			—			—			—
Total dividends to shareholders		—			—			—			—
CAPITAL SHARE TRANSACTIONS (NOTE 5):
Institutional Shares		247,003			(19,695,957	)		(4,364,358	)		58,827
Institutional Service Shares		5,369,683			65,217,878			6,256			3,077,023
Investor Service Shares		—			—			230,625			(1,942,076	)
Retail Shares		(25,338,448	)		35,744,584			5,102,668			55,516,274
Advantage Shares		(32,549,160	)		168,516,725			3,053,544			105,164,905
Fiduciary Shares		473,497,529			—			—			—
Investor Select Shares		59,361,606			—			—			—
Total capital share transactions		480,588,213			249,783,230			4,028,735			161,874,953
Total increase/(decrease)		480,608,335			249,835,319			4,029,383			161,875,820
NET ASSETS:
Beginning of period		1,520,204,030			1,270,368,711			606,123,217			444,247,397
End of period	$	2,000,812,365		$	1,520,204,030		$	610,152,600		$	606,123,217
UNDISTRIBUTED (OVERDISTRIBUTED) NET INVESTMENT INCOME	$	4,987		$	4,987		$	—		$	—

The accompanying notes are an integral part of these financial statements.

27

Financial Highlights

^:  Daily Income Fund Money Market Portfolio

	Institutional Shares
	Six Months Ended September 30, 2013 (Unaudited)			Years Ended March 31,
				2013			2012			2011			2010			2009
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			0.001			0.001			0.001			0.003			0.024
Net realized and unrealized gain (loss) on investments*		0.000			0.000			0.000			0.000			0.000			0.000
Total from investment operations		0.000			0.001			0.001			0.001			0.003			0.024
Less dividends/distributions from:
Net investment income*		(0.000	)		(0.001	)		(0.001	)		(0.001	)		(0.003	)		(0.024	)
Net realized gain on investment*		—			—			—			—			—			(0.000	)
Total distributions		(0.000	)		(0.001	)		(0.001	)		(0.001	)		(0.003	)		(0.024	)
Net asset value, end of period	$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00
TOTAL RETURN		0.03%	(a)		0.10%			0.08%			0.11%			0.29%			2.46%
RATIO/SUPPLEMENTAL DATA
Net assets, end of period (000’s)	$	416,564		$	281,203		$	307,495		$	227,901		$	221,078		$	295,039
Ratio to average net assets:**
Net investment income		0.05%	(c)		0.10%			0.07%			0.11%			0.26%			2.52%
Expenses (net of fees waived) (b)		0.20%	(c)		0.20%			0.22%			0.25%			0.25%			0.22%
Management and administration fees waived		0.02%	(c)		0.02%			0.01%			0.00%			0.01%			0.06%
Shareholder servicing and distribution fees waived		—			—			—			—			—			—
Transfer agency fees waived		0.02%	(c)		0.02%			0.01%			0.00%			0.01%			0.01%
Expenses paid indirectly		—			—			—			—			—			0.00%
	Investor Service Shares1
	Six Months Ended September 30, 2013 (Unaudited)			Years Ended March 31,
				2013			2012			2011			2010			2009
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			0.000			0.000			0.000			0.017
Net realized and unrealized gain (loss) on investments*		0.000			0.000			0.000			0.000			0.000			0.000
Total from investment operations		0.000			0.000			0.000			0.000			0.000			0.017
Less dividends/distributions from:
Net investment income*		(0.000	)		(0.000	)		(0.000	)		(0.000	)		(0.000	)		(0.017	)
Net realized gain on investment*		—			—			—			—			—			(0.000	)
Total distributions		(0.000	)		(0.000	)		(0.000	)		(0.000	)		(0.000	)		(0.017	)
Net asset value, end of period	$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00
TOTAL RETURN		0.01%	(a)		0.01%			0.00%			0.00%			0.02%			1.71%
RATIO/SUPPLEMENTAL DATA
Net assets, end of period (000’s)	$	274,611		$	270,944		$	220,100		$	351,736		$	278,303		$	262,237
Ratio to average net assets:**
Net investment income		0.01%	(c)		0.01%			0.00%			0.00%			0.02%			1.71%
Expenses (net of fees waived) (b)		0.24%	(c)		0.29%			0.28%			0.36%			0.52%			0.96%
Management and administration fees waived		0.02%	(c)		0.02%			0.01%			0.00%			0.01%			0.06%
Shareholder servicing and distribution fees waived		0.70%	(c)		0.66%			0.67%			0.62%			0.47%			0.03%
Transfer agency fees waived		0.01%	(c)		0.00%			0.01%			0.00%			—			—
Expenses paid indirectly		—			—			—			—			—			0.00%

* Amounts denoted 0.000 are less than 0.001

** Ratios denoted 0.00% are less than 0.01%

^1.  Prior to July 29, 2011, Investor Service Class Shares were known as Short Term Income Shares Class Shares

(a) Unannualized

(b) Includes expenses paid indirectly, if applicable

(c) Annualized

The accompanying notes are an integral part of these financial statements.

28

Institutional Service Shares																		Investor Shares
Six Months Ended September 30, 2013 (Unaudited)			Years Ended March 31,															Six Months Ended September 30, 2013 (Unaudited)			Years Ended March 31,
			2013			2012			2011			2010			2009						2013			2012			2011			2010			2009
$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00
	0.000			0.000			0.000			0.000			0.001			0.022			0.000			0.000			0.000			0.000			0.001			0.020
	0.000			0.000			0.000			0.000			0.000			0.000			0.000			0.000			0.000			0.000			0.000			0.000
	0.000			0.000			0.000			0.000			0.001			0.022			0.000			0.000			0.000			0.000			0.001			0.020
	(0.000	)		(0.000	)		(0.000	)		(0.000	)		(0.001	)		(0.022	)		(0.000	)		(0.000	)		(0.000	)		(0.000	)		(0.001	)		(0.020	)
	—			—			—			—			—			(0.000	)		—			—			—			—			—			(0.000	)
	(0.000	)		(0.000	)		(0.000	)		(0.000	)		(0.001	)		(0.022	)		(0.000	)		(0.000	)		(0.000	)		(0.000	)		(0.001	)		(0.020	)
$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00
	0.01%	(a)		0.01%			0.00%			0.00%			0.12%			2.21%			0.01%	(a)		0.01%			0.00%			0.00%			0.06%			2.01%
$	56,101		$	64,481		$	83,525		$	158,401		$	235,431		$	199,697		$	144,000		$	146,718		$	166,845		$	191,794		$	215,983		$	337,701
	0.01%	(c)		0.01%			0.00%			0.00%			0.09%			2.31%			0.01%	(c)		0.01%			0.00%			0.00%			0.07%			1.96%
	0.24%	(c)		0.29%			0.28%			0.36%			0.42%			0.47%			0.24%	(c)		0.29%			0.28%			0.36%			0.50%			0.68%
	0.02%	(c)		0.02%			0.01%			0.00%			0.01%			0.06%			0.02%	(c)		0.02%			0.01%			0.00%			0.01%			0.06%
	0.23%	(c)		0.18%			0.21%			0.15%			0.09%			0.01%			0.45%	(c)		0.41%			0.42%			0.37%			0.24%			0.04%
	—			0.00%			0.00%			—			—			—			0.01%	(c)		0.00%			0.01%			0.00%			—			—
	—			—			—			—			—			0.00%			—			—			—			—			—			0.00%

Retail Shares
Six Months Ended September 30, 2013 (Unaudited)			Years Ended March 31,
			2013			2012			2011			2010			2009
$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00
	0.000			0.000			0.000			0.000			0.000			0.016
	0.000			0.000			0.000			0.000			0.000			0.000
	0.000			0.000			0.000			0.000			0.000			0.016
	(0.000	)		(0.000	)		(0.000	)		(0.000	)		(0.000	)		(0.016	)
	—			—			—			—			—			(0.000	)
	(0.000	)		(0.000	)		(0.000	)		(0.000	)		(0.000	)		(0.016	)
$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00
	0.01%	(a)		0.01%			0.00%			0.00%			0.01%			1.65%
$	2,159,513		$	902,309		$	822,368		$	914,654		$	1,051,014		$	1,384,774
	0.01%	(c)		0.01%			0.00%			0.00%			0.01%			1.64%
	0.24%	(c)		0.29%			0.28%			0.36%			0.55%			1.02%
	0.02%	(c)		0.02%			0.01%			0.00%			0.01%			0.06%
	0.90%	(c)		0.86%			0.87%			0.83%			0.65%			0.14%
	0.01%	(c)		0.00%			0.01%			0.00%			—			—
	—			—			—			—			—			0.00%

The accompanying notes are an integral part of these financial statements.

29

Financial Highlights (Continued)

^:  Daily Income Fund Money Market Portfolio (Continued)

	Advantage Shares
	Six Months Ended September 30, 2013 (Unaudited)			Years Ended March 31,
				2013			2012			2011			2010			2009
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			0.000			0.001			0.001			0.016
Net realized and unrealized gain (loss) on investments*		0.000			0.000			0.000			0.000			0.000			0.000
Total from investment operations		0.000			0.000			0.000			0.001			0.001			0.016
Less dividends/distributions from:
Net investment income*		(0.000	)		(0.000	)		(0.000	)		(0.001	)		(0.001	)		(0.016	)
Net realized gain on investment*		—			—			—			—			—			(0.000	)
Total distributions		(0.000	)		(0.000	)		(0.000	)		(0.001	)		(0.001	)		(0.016	)
Net asset value, end of period	$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00
TOTAL RETURN		0.01%	(a)		0.02%			0.03%			0.05%			0.05%			1.63%
RATIO/SUPPLEMENTAL DATA
Net assets, end of period (000’s)	$	1,950,840		$	1,796,984		$	1,548,680		$	1,549,602		$	1,574,427		$	1,704,903
Ratio to average net assets:**
Net investment income		0.02%	(c)		0.02%			0.03%			0.05%			0.05%			1.70%
Expenses (net of fees waived) (b)		0.23%	(c)		0.28%			0.26%			0.31%			0.49%			1.04%
Management and administration fees waived		0.02%	(c)		0.02%			0.01%			0.00%			0.01%			0.06%
Shareholder servicing and distribution fees waived		0.97%	(c)		0.92%			0.95%			0.93%			0.75%			0.17%
Transfer agency fees waived		—			—			—			—			—			—
Expenses paid indirectly		—			—			—			—			—			0.00%

^:  Daily Income Fund U.S. Treasury Portfolio

	Institutional Shares
	Six Months Ended September 30, 2013 (Unaudited)			Years Ended March 31,
				2013			2012			2011			2010			2009
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			0.000			0.000			0.001			0.010
Net realized and unrealized gain (loss) on investments*		(0.000	)		0.000			(0.000	)		0.000			—			—
Total from investment operations		0.000			0.000			0.000			0.000			0.001			0.010
Less dividends/distributions from:
Net investment income*		(0.000	)		(0.000	)		(0.000	)		(0.000	)		(0.001	)		(0.010	)
Net realized gain on investment*		—			—			—			(0.000	)		—			—
Total distributions		(0.000	)		(0.000	)		(0.000	)		(0.000	)		(0.001	)		(0.010	)
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%			0.00%			0.00%			0.07%			0.97%
RATIO/SUPPLEMENTAL DATA
Net assets, end of period (000’s)	$	901,898		$	576,142		$	690,702		$	473,133		$	499,667		$	526,947
Ratio to average net assets:**
Net investment income		0.00%	(c)		0.01%			0.00%			0.00%			0.08%			0.93%
Expenses (net of fees waived) (b)		0.07%	(c)		0.16%			0.11%			0.22%			0.21%			0.23%
Management and administration fees waived		0.15%	(c)		0.06%			0.11%			0.03%			0.06%			0.03%
Shareholder servicing and distribution fees waived		—			—			—			—			—			—
Transfer agency fees waived		0.02%	(c)		0.02%			0.02%			0.02%			0.01%			—
Expenses paid indirectly		—			—			—			—			—			0.00%

* Amounts denoted 0.000 are less than 0.001

** Ratios denoted 0.00% are less than 0.01%

(a) Unannualized

(b) Includes expenses paid indirectly, if applicable

(c) Annualized

The accompanying notes are an integral part of these financial statements.

30

Xpress Shares																		Fiduciary Shares			Investor Select Shares
Six Months Ended September 30, 2013 (Unaudited)			Years Ended March 31,															From July 22, 2013 (commencement of operation) to September 30, 2013 (Unaudited)			From June 25, 2013 (commencement of operation) to September 30, 2013 (Unaudited)
			2013			2012			2011			2010			2009
$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00
	0.000			0.000			0.000			0.000			0.000			0.014			0.000			0.000
	0.000			0.000			0.000			0.000			0.000			0.000			0.000			0.000
	0.000			0.000			0.000			0.000			0.000			0.014			0.000			0.000
	(0.000	)		(0.000	)		(0.000	)		(0.000	)		(0.000	)		(0.014	)		(0.000	)		(0.000	)
	—			—			—			—			—			(0.000	)		—			—
	(0.000	)		(0.000	)		(0.000	)		(0.000	)		(0.000	)		(0.014	)		(0.000	)		(0.000	)
$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00
	0.01%	(a)		0.01%			0.01%			0.02%			0.02%			1.40%			0.01%	(a)		0.01%	(a)
$	275,740		$	282,822		$	283,468		$	276,727		$	282,144		$	271,167		$	1,116,557		$	353,575
	0.01%	(c)		0.01%			0.01%			0.02%			0.02%			1.40%			0.03%	(c)		0.03%	(c)
	0.24%	(c)		0.29%			0.28%			0.34%			0.53%			1.27%			0.21%	(c)		0.21%	(c)
	0.02%	(c)		0.02%			0.01%			0.00%			0.01%			0.06%			0.02%	(c)		0.02%	(c)
	0.96%	(c)		0.91%			0.93%			0.90%			0.71%			0.00%			0.35%	(c)		0.60%	(c)
	—			—			—			—			—			—			0.04%	(c)		0.04%	(c)
	—			—			—			—			—			0.00%			—			—

Institutional Service Shares																		Investor Shares
Six Months Ended September 30, 2013 (Unaudited)			Years Ended March 31,															Six Months Ended September 30, 2013 (Unaudited)			Years Ended March 31,
			2013			2012			2011			2010			2009						2013			2012			2011			2010			2009
$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00
	0.000			0.000			0.000			0.000			0.000			0.007			0.000			0.000			0.000			0.000			0.000			0.006
	(0.000	)		0.000			(0.000	)		0.000			—			—			(0.000	)		0.000			(0.000	)		0.000			—			—
	0.000			0.000			0.000			0.000			0.000			0.007			0.000			0.000			0.000			0.000			0.000			0.006
	(0.000	)		(0.000	)		(0.000	)		(0.000	)		(0.000	)		(0.007	)		(0.000	)		(0.000	)		(0.000	)		(0.000	)		(0.000	)		(0.006	)
	—			—			—			(0.000	)		—			—			—			—			—			(0.000	)		—			—
				��
	(0.000	)		(0.000	)		(0.000	)		(0.000	)		(0.000	)		(0.007	)		(0.000	)		(0.000	)		(0.000	)		(0.000	)		(0.000	)		(0.006	)
$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00
	0.00%			0.01%			0.00%			0.00%			0.01%			0.75%			0.00%			0.01%			0.00%			0.00%			0.00%			0.65%
$	203,859		$	163,522		$	241,833		$	223,950		$	251,926		$	233,270		$	225,939		$	208,916		$	206,573		$	179,546		$	198,429		$	212,706
	0.00%			0.01%			0.00%			0.00%			0.01%			0.83%			0.00%			0.01%			0.00%			0.00%			0.00%			0.68%
	0.07%			0.16%			0.10%			0.22%			0.26%			0.44%			0.07%			0.16%			0.11%			0.22%			0.27%			0.55%
	0.15%			0.06%			0.11%			0.03%			0.06%			0.03%			0.15%			0.06%			0.11%			0.03%			0.06%			0.03%
	0.25%			0.25%			0.25%			0.25%			0.19%			0.03%			0.45%			0.45%			0.45%			0.45%			0.40%			0.15%
	0.02%			0.02%			0.02%			0.01%			0.01%			—			0.05%			0.05%			0.05%			0.04%			0.03%			—
	—			—			—			—			—			0.00%			—			—			—			—			—			0.00%

The accompanying notes are an integral part of these financial statements.

31

Financial Highlights (Continued)

^:  Daily Income Fund U.S. Treasury Portfolio (Continued)

	Investor Service Shares1
	Six Months Ended September 30, 2013 (Unaudited)			Year Ended March 31,
				2013			2012			2011			2010			2009
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			0.000			0.000			0.000			0.005
Net realized and unrealized gain (loss) on investments*		(0.000	)		0.000			(0.000	)		0.000			—			—
Total from investment operations		0.000			0.000			0.000			0.000			0.000			0.005
Less dividends/distributions from:
Net investment income*		(0.000	)		(0.000	)		(0.000	)		(0.000	)		(0.000	)		(0.005	)
Net realized gain on investment*		—			—			—			(0.000	)		—			—
Total distributions		(0.000	)		(0.000	)		(0.000	)		(0.000	)		(0.000	)		(0.005	)
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%			0.00%			0.00%			0.00%			0.51%
RATIO/SUPPLEMENTAL DATA
Net assets, end of period (000’s)	$	162,292		$	152,799		$	155,136		$	143,733		$	191,847		$	188,138
Ratio to average net assets:**
Net investment income		0.00%	(c)		0.01%			0.00%			0.00%			0.00%			0.54%
Expenses (net of fees waived) (b)		0.07%	(c)		0.16%			0.11%			0.22%			0.27%			0.70%
Management and administration fees waived		0.15%	(c)		0.06%			0.11%			0.03%			0.06%			0.03%
Shareholder servicing and distribution fees waived		0.70%	(c)		0.70%			0.70%			0.70%			0.65%			0.26%
Transfer agency fees waived		0.05%	(c)		0.05%			0.05%			0.05%			0.03%			—
Expenses paid indirectly		—			—			—			—			—			0.00%

^:  Daily Income Fund U.S. Government Portfolio

	Institutional Shares2
	Six Months Ended September 30, 2013 (Unaudited)			Year Ended March 31,									For the period May 5, 2009 through March 31, 2010			For the period April 1, 2008 through December 11, 2008
				2013			2012			2011
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			0.001			0.000			0.000			0.002			0.012
Net realized and unrealized gain (loss) on investments*		0.000			0.000			0.000			0.000			—			(0.000	)
Total from investment operations		0.000			0.001			0.000			0.000			0.002			0.012
Less dividends/distributions from:
Net investment income*		(0.000	)		(0.001	)		(0.000	)		(0.000	)		(0.002	)		(0.012	)
Net realized gain on investment*		—			—			—			—			—			—
Total distributions		(0.000	)		(0.001	)		(0.000	)		(0.000	)		(0.002	)		(0.012	)
Net asset value, end of period	$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00
TOTAL RETURN		0.01%	(a)		0.05%			0.01%			0.04%			0.17%	(a)		1.24%	(a)
RATIO/SUPPLEMENTAL DATA
Net assets, end of period (000’s)	$	22,911		$	22,663		$	42,357		$	32,219		$	90,506		$	-0-
Ratio to average net assets:**
Net investment income		0.01%	(c)		0.05%			0.01%			0.04%			0.17%	(c)		1.76%	(c)
Expenses (net of fees waived)		0.13%	(c)		0.20%			0.20%			0.25%			0.25%	(c)		0.25%	(c)
Management and administration fees waived		0.08%	(c)		0.01%			0.03%			0.00%			0.02%	(c)		0.05%	(c)
Shareholder Servicing and Distribution fees waived		—			—			—			—			—			—
Transfer agency fees waived		0.02%	(c)		0.02%			0.02%			—			—			—

* Amounts denoted 0.000 are less than 0.001

** Ratios denoted 0.00% are less than 0.01%

^1.  Prior to July 29, 2011, Investor Service Class Shares were known as Short Term Income Shares Class Shares

^2.  Shares were fully liquidated on December 11, 2008 and became active on May 5, 2009.

(a) Unannualized

(b) Includes expenses paid indirectly, if applicable

(c) Annualized

The accompanying notes are an integral part of these financial statements.

32

Retail Shares																		Fiduciary Shares			Investor Select Shares
Six Months Ended September 30, 2013 (Unaudited)			Year Ended March 31,															From July 22, 2013 (commencement of operation) to September 30, 2013 (Unaudited)			From June 26, 2013 (commencement of operation) to September 30, 2013 (Unaudited)
			2013			2012			2011			2010			2009
$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00
	0.000			0.000			0.000			0.000			0.000			0.005			0.000			0.000
	(0.000	)		0.000			(0.000	)		0.000			—			—			(0.000	)		(0.000	)
	0.000			0.000			0.000			0.000			0.000			0.005			0.000			0.000
	(0.000	)		(0.000	)		(0.000	)		(0.000	)		(0.000	)		(0.005	)		(0.000	)		(0.000	)
	—			—			—			(0.000	)		—			—			—			—
	(0.000	)		(0.000	)		(0.000	)		(0.000	)		(0.000	)		(0.005	)		(0.000	)		(0.000	)
$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00
	0.00%	(a)		0.01%			0.00%			0.00%			0.00%			0.46%			0.00%	(a)		0.00%	(a)
$	76,764		$	87,555		$	29,246		$	14,906		$	23,249		$	10,410		$	268,213		$	148,723
	0.00%	(c)		0.01%			0.00%			0.00%			0.00%			0.46%			0.00%	(c)		0.00%	(c)
	0.07%	(c)		0.16%			0.11%			0.22%			0.25%			0.73%			0.04%	(c)		0.04%	(c)
	0.15%	(c)		0.06%			0.11%			0.03%			0.06%			0.03%			0.15%	(c)		0.15%	(c)
	0.90%	(c)		0.90%			0.90%			0.90%			0.87%			0.44%			0.35%	(c)		0.60%	(c)
	0.05%	(c)		0.05%			0.05%			0.05%			0.02%			—			0.05%	(c)		0.05%	(c)
	—			—			—			—			—			0.00%			—			—

Institutional Service Shares																		Retail Shares
Six Months Ended September 30, 2013 (Unaudited)			Years Ended March 31,															Six Months Ended September 30, 2013 (Unaudited)			Years Ended March 31,
			2013			2012			2011			2010			2009						2013			2012			2011			2010			2009
$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00
	0.000			0.000			0.000			0.000			0.001			0.012			0.000			0.000			0.000			0.000			0.000			0.007
	0.000			0.000			0.000			0.000			—			(0.000	)		0.000			0.000			0.000			0.000			—			(0.000	)
	0.000			0.000			0.000			0.000			0.001			0.012			0.000			0.000			0.000			0.000			0.000			0.007
	(0.000	)		(0.000	)		(0.000	)		(0.000	)		(0.001	)		(0.012	)		(0.000	)		(0.000	)		(0.000	)		(0.000	)		(0.000	)		(0.007	)
	—			—			—			—			—			—			—			—			—			—			—			—
	(0.000	)		(0.000	)		(0.000	)		(0.000	)		(0.001	)		(0.012	)		(0.000	)		(0.000	)		(0.000	)		(0.000	)		(0.000	)		(0.007	)
$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00
	0.01%	(a)		0.01%			0.00%			0.00%			0.09%			1.23%			0.01%	(a)		0.01%			0.00%			0.00%			0.01%			0.71%
$	132,793		$	127,421		$	62,202		$	66,183		$	73,383		$	283		$	294,367		$	319,699		$	283,942		$	219,973		$	189,069		$	208,912
	0.01%	(c)		0.01%			0.00%			0.00%			0.00%			1.35%			0.01%	(c)		0.01%			0.01%			0.00%			0.00%			0.60%
	0.13%	(c)		0.23%			0.20%			0.28%			0.30%			0.47%			0.13%	(c)		0.23%			0.20%			0.28%			0.48%			0.99%
	0.08%	(c)		0.01%			0.03%			0.00%			0.02%			0.05%			0.08%	(c)		0.01%			0.03%			0.00%			0.02%			0.05%
	0.25%	(c)		0.23%			0.25%			0.22%			0.20%			—			0.90%	(c)		0.90%			0.90%			0.89%			0.70%			0.17%
	0.02%	(c)		0.01%			0.02%			0.00%			—			—			0.05%	(c)		0.02%			0.04%			0.01%			0.00%			—

The accompanying notes are an integral part of these financial statements.

33

Financial Highlights (Continued)

^:  Daily Income Fund U.S. Government Portfolio (Continued)

	Advantage Shares
	Six Months Ended September 30, 2013 (Unaudited)			Years Ended March 31,
				2013			2012			2011			2010			2009
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			0.000			0.000			0.000			0.007
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			0.000			0.000			0.000			0.007
Less dividends/distributions from:
Net investment income*		(0.000	)		(0.000	)		(0.000	)		(0.000	)		(0.000	)		(0.007	)
Net realized gain on investment*		—			—			—			—			—			—
Total distributions		(0.000	)		(0.000	)		(0.000	)		(0.000	)		(0.000	)		(0.007	)
Net asset value, end of period	$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00
TOTAL RETURN		0.01%	(a)		0.01%			0.01%			0.01%			0.02%			0.70%
RATIO/SUPPLEMENTAL DATA
Net assets, end of period (000’s)	$	1,017,892		$	1,050,421		$	881,868		$	882,200		$	867,087		$	970,310
Ratio to average net assets:**
Net investment income		0.01%	(c)		0.01%			0.01%			0.01%			0.01%			0.66%
Expenses (net of fees waived)		0.13%	(c)		0.24%			0.19%			0.27%			0.47%			0.99%
Management and administration fees waived		0.08%	(c)		0.01%			0.03%			0.00%			0.02%			0.05%
Shareholder Servicing & Distribution fees waived		1.00%	(c)		0.96%			1.00%			0.95%			0.76%			0.21%
Transfer agency fees waived		—			—			—			—			—			—

^:  Daily Income Fund Municipal Portfolio

	Institutional Shares
	Six Months Ended September 30, 2013 (Unaudited)			Years Ended March 31,
				2013			2012			2011			2010			2009
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			0.000			0.002			0.004			0.019
Net realized and unrealized gain (loss) on investments*		0.000			0.000			0.000			(0.000	)		0.000			0.000
Total from investment operations		0.000			0.000			0.000			0.002			0.004			0.019
Less dividends/distributions from:
Net investment income*		(0.000	)		(0.000	)		(0.000	)		(0.002	)		(0.004	)		(0.019	)
Net realized gain on investment*		—			—			—			(0.000	)		(0.000	)	��	—
Total distributions		(0.000	)		(0.000	)		(0.000	)		(0.002	)		(0.004	)		(0.019	)
Net asset value, end of period	$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00
TOTAL RETURN		0.01%	(a)		0.02%			0.03%			0.19%			0.42%			1.96%
RATIO/SUPPLEMENTAL DATA
Net assets, end of period (000’s)	$	906		$	5,269		$	5,209		$	5,171		$	25,344		$	4,061
Ratio to average net assets:**
Net investment income		0.01%	(c)		0.02%			0.03%			0.22%			0.27%			1.93%
Expenses (net of fees waived) (b)		0.22%	(c)		0.22%			0.25%			0.25%			0.25%			0.23%
Management and administration fees waived		0.07%	(c)		0.03%			0.03%			0.05%			0.07%			0.10%
Shareholder Servicing and Distribution fees waived		—			—			—			—			—			—
Transfer Agency Account fees waived		0.02%	(c)		0.02%			0.01%			—			—			—
Expenses paid indirectly		—			0.00%			0.00%			0.00%			—			0.00%

* Amounts denoted 0.000 are less than 0.001

** Ratios denoted 0.00% are less than 0.01%

(a) Unannualized

(b) Includes expense paid indirectly, if applicable

(c) Annualized

^1.  Shares were fully liquidated on December 22, 2009 and became active on November 2, 2012.

^2.  Prior to July 29, 2011, Investor Service Class Shares were known as Short Term Income Shares Class Shares

The accompanying notes are an integral part of these financial statements.

34

Fiduciary Shares			Investor Select Shares
From July 22, 2013 (commencement of operation) to September 30, 2013 (Unaudited)			From July 22, 2013 (commencement of operation) to September 30, 2013 (Unaudited)
$	1.00		$	1.00
	0.000			0.000
	0.000			0.000
	0.000			0.000
	(0.000	)		(0.000	)
	—			—
	(0.000	)		(0.000	)
$	1.00		$	1.00
	0.00%	(a)		0.00%	(a)
$	473,489		$	59,360
	0.01%	(c)		0.01%	(c)
	0.11%	(c)		0.11%	(c)
	0.08%	(c)		0.08%	(c)
	0.35%	(c)		0.60%	(c)
	0.05%	(c)		0.05%	(c)

Institutional Service  Shares1												Investor Service Shares2
Six Months Ended September 30, 2013 (Unaudited)			For the period November 2, 2012 through March 31, 2013			For the period April 1, 2009 through December 21, 2009			Year Ended March 31, 2009			Six Months Ended September 30, 2013 (Unaudited)			Years Ended March 31,
															2013			2012			2011			2010			2009
$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00
	0.000			0.000			0.002			0.017			0.000			0.000			0.000			0.000			0.001			0.014
	0.000			0.000			0.000			0.000			0.000			0.000			0.000			(0.000	)		0.000			0.000
	0.000			0.000			0.002			0.017			0.000			0.000			0.000			0.000			0.001			0.014
	(0.000	)		(0.000	)		(0.002	)		(0.017	)		(0.000	)		(0.000	)		(0.000	)		(0.000	)		(0.001	)		(0.014	)
	—			—			(0.000	)		—			—			—			—			(0.000	)		(0.000	)		—
	(0.000	)		(0.000	)		(0.002	)		(0.017	)		(0.000	)		(0.000	)		(0.000	)		(0.000	)		(0.001	)		(0.014	)
$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00
	0.01%	(a)		0.01%	(a)		0.18%	(a)		1.70%			0.00%	(a)		0.02%			0.01%			0.00%			0.06%			1.39%
$	3,082		$	3,076		$	-0-		$	249		$	52,101		$	51,870		$	53,804		$	50,387		$	45,068		$	60,907
	0.01%	(c)		0.01%	(c)		0.26%	(c)		1.69%			0.01%	(c)		0.02%			0.01%			0.00%			0.05%			1.41%
	0.16%	(c)		0.18%	(c)		0.50%	(c)		0.48%			0.16%	(c)		0.23%			0.27%			0.44%			0.61%			0.78%
	0.07%	(c)		0.03%	(c)		0.07%	(c)		0.10%			0.07%	(c)		0.03%			0.03%			0.05%			0.07%			0.10%
	0.25%	(c)		0.25%	(c)		—			—			0.70%	(c)		0.70%			0.03%			—			—			—
	0.02%	(c)		0.02%	(c)		0.00%	(c)		0.00%			0.05%	(c)		0.05%			0.69%			0.54%			0.37%			0.17%
	—			0.00%	(c)		—			0.00%			—			0.00%			0.00%			0.00%			—			0.00%

The accompanying notes are an integral part of these financial statements.

35

Financial Highlights (Continued)

^:  Daily Income Fund Municipal Portfolio (Continued)

	Retail Shares
	Six Months Ended September  30, 2013 (Unaudited)			Years Ended March 31,
				2013			2012			2011			2010			2009
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			0.000			0.000			0.000			0.011
Net realized and unrealized gain (loss) on investments*		0.000			0.000			0.000			(0.000	)		0.000			0.000
Total from investment operations		0.000			0.000			0.000			0.000			0.000			0.011
Less dividends/distributions from:
Net investment income*		(0.000	)		(0.000	)		(0.000	)		(0.000	)		(0.000	)		(0.011	)
Net realized gain on investment*		—			—			—			(0.000	)		(0.000	)		—
Total distributions		(0.000	)		(0.000	)		(0.000	)		(0.000	)		(0.000	)		(0.011	)
Net asset value, end of period	$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00
TOTAL RETURN		0.00%	(a)		0.02%			0.01%			0.00%			0.04%			1.15%
RATIO/SUPPLEMENTAL DATA
Net assets, end of period (000’s)	$	239,831		$	234,729		$	179,209		$	121,734		$	152,582		$	151,745
Ratio to average net assets:**
Net investment income		0.01%	(c)		0.02%			0.01%			0.00%			0.02%			1.13%
Expenses (net of fees waived) (b)		0.16%	(c)		0.22%			0.27%			0.45%			0.61%			1.02%
Management and administration fees waived		0.07%	(c)		0.03%			0.03%			0.05%			0.07%			0.10%
Shareholder servicing and distribution fees waived		0.90%	(c)		0.90%			0.89%			0.74%			0.56%			0.13%
Transfer agency fees waived		0.05%	(c)		0.05%			0.03%			—			0.01%			—
Expenses paid indirectly		—			0.00%			0.00%			0.00%			—			0.00%
	Advantage Shares
	Six Months Ended September 30, 2013 (Unaudited)			Years Ended March 31,
				2013			2012			2011			2010			2009
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			0.000			0.001			0.001			0.011
Net realized and unrealized gain (loss) on investments*		0.000			0.000			0.000			(0.000	)		0.000			(0.000	)
Total from investment operations		0.000			0.000			0.000			0.001			0.001			0.011
Less dividends/distributions from:
Net investment income*		(0.000	)		(0.000	)		(0.000	)		(0.001	)		(0.001	)		(0.011	)
Net realized gain on investment*		—			—			—			(0.000	)		(0.000	)		—
Total distributions		(0.000	)		(0.000	)		(0.000	)		(0.001	)		(0.001	)		(0.011	)
Net asset value, end of period	$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00
TOTAL RETURN		0.00%	(a)		0.02%			0.03%			0.05%			0.08%			1.12%
RATIO/SUPPLEMENTAL DATA
Net assets, end of period (000’s)	$	314,233		$	311,179		$	206,025		$	182,277		$	212,071		$	186,442
Ratio to average net assets:**
Net investment income		0.01%	(c)		0.02%			0.03%			0.05%			0.05%			1.12%
Expenses (net of fees waived) (b)		0.16%	(c)		0.22%			0.25%			0.40%			0.57%			1.04%
Management and administration fees waived		0.07%	(c)		0.03%			0.03%			0.05%			0.07%			0.10%
Shareholder servicing and distribution fees waived		1.00%	(c)		1.00%			0.99%			0.83%			0.66%			0.16%
Expenses paid indirectly		—			0.00%			0.00%			0.00%			—			0.00%

* Amounts denoted 0.000 are less than 0.001

** Ratios denoted 0.00% are less than 0.01%

(a) Unannualized

(b) Includes expense paid indirectly, if applicable

(c) Annualized

The accompanying notes are an integral part of these financial statements.

36

Daily Income Fund

Notes to the Financial Statements (Unaudited)

1: Summary of Accounting Policies

Daily Income Fund (the “Fund”) is a diversified, open-end management investment company registered under the Investment Company Act of 1940 (the “1940 Act”). The Fund comprises four managed portfolios of money market instruments: the Money Market Portfolio, the U.S. Treasury Portfolio, the U.S. Government Portfolio and the Municipal Portfolio (each referred to as a “Portfolio”). The RNT Natixis Liquid Prime Portfolio was fully liquidated on September 5, 2013. The investment objective of the Money Market, U.S. Treasury and U.S. Government Portfolios is to seek as high a level of current income to the extent consistent with the preservation of capital and the maintenance of liquidity. The investment objective of the Municipal Portfolio is to seek as high a level of tax-exempt current income to the extent consistent with the preservation of capital and the maintenance of liquidity. There can be no assurance that the Portfolios will achieve their objectives. The Fund has five core classes of stock authorized: Institutional, Institutional Service, Investor, Investor Service (formerly Short Term Income) and Retail shares. In addition to the core classes, the Money Market Portfolio includes the Advantage, Xpress, Fiduciary and Investor Select shares, the U.S. Government Portfolio includes the Advantage, Fiduciary and Investor Select shares and Municipal Portfolio includes the Advantage shares. Commencement of operations, or the most recent re-activation, for each of the share classes began as follows:

Share classes	Money Market Portfolio		U.S. Treasury Portfolio		U.S. Government Portfolio		Municipal Portfolio
Institutional shares		May 13, 1994		November 18, 1996		October 30, 2006		October 30, 2006
Institutional Service shares		April 3, 1995		November 29, 1995		March 19, 2007		November 1, 2012
Investor shares		November 28, 2006		February 21, 2007		Not Active (“N/A”)		N/A
Investor Service shares		February 12, 2007		November 2, 2006		N/A		February 20, 2007
Retail shares		November 28, 2006		December 12, 2006		December 12, 2006		December 8, 2006
Advantage shares		November 1, 2006		N/O		November 2, 2006		November 2, 2006
Xpress shares		June 20, 2007		N/O		N/O		N/O
Fiduciary shares		July 22, 2013		July 22, 2013		July 22, 2013		October 30, 2006
Investor Select shares		June 25, 2013		June 26, 2013		July 22, 2013		November 1, 2012

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.

REPURCHASE AGREEMENTS

All Portfolios may enter into repurchase agreements. Eligible securities for collateral are securities consistent with the Portfolio’s investment objectives and may consist of U.S. Government Securities and/or U.S. Government Sponsored Agency Securities. In connection with transactions in repurchase agreements, it is the Portfolio’s policy that its custodian take possession of the underlying collateral securities, the fair value of which exceeds the principal amount of the repurchase transaction, including accrued interest, at all times. Under these arrangements, the Portfolios are permitted to deliver or re-pledge these securities. If the seller of a repurchase agreement fails to repurchase the security in accordance with the terms of the agreement, the Portfolios might incur expenses in enforcing their rights and could experience losses, including a decline in the value of the collateral and loss of income.

FEDERAL INCOME TAXES

It is the policy of each Portfolio to comply with the requirements of the Internal Revenue Code applicable to regulated investment companies and to distribute all of its tax exempt and taxable (if any) income to its shareholders. As such, the Portfolios 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 Portfolios recognize interest and penalties, if any, 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 2010-2013 and the six months period ended September 30, 2013, 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 September 30, 2013, the Portfolios did not have liabilities for any uncertain tax positions or 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 long-term capital gains and losses, if any, and amortization of market discount on tax exempt securities) 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.

37

Daily Income Fund

Notes to the Financial Statements (Unaudited) (Continued)

1: Summary of Accounting Policies (Continued)

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

Each Portfolio 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 September 30, 2013, class specific expenses of each Portfolio 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 each Portfolio.

RISKS

Investments in obligations issued by agencies and instrumentalities of the U.S. Government may vary in the level of support they receive from the government. The government may choose not to provide financial support to government sponsored agencies or instrumentalities if it is not legally obligated to do so. In this case, if the issuer defaulted, the underlying Portfolio holding securities of such issuer might not be able to recover its investment from the U.S. Government.

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.

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 Portfolio’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 September 30, 2013, 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.

Certain Portfolios may purchase interests in loans extended to a Corporate borrower or to the U.S. Government and its agencies or instrumentalities. When purchasing loan participations, a Portfolio assumes the credit risk of the borrower, and may assume the credit risk associated with an interposed bank or other financial intermediary.

2: Investment Management Fees and Other Transactions with Affiliates

Under the Investment Management Contract, each Portfolio, pays an investment management fee to the Manager at the annual rate of 0.12% of the Portfolio’s average daily net assets.

Pursuant to an Administrative Services Contract, each Portfolio, pays to the Manager an annual fee of 0.05% of the Portfolio’s average daily net assets.

Pursuant to a Sub-Accounting Agreement, Reich & Tang Services, Inc., (the “TA”), an affiliate of the Manager, performs or sub-contracts or employs others to perform certain sub-accounting services for the Advantage and Xpress shareholders. For its services under the Sub-Accounting Agreement, the TA receives from the Portfolio a fee up to 0.10% per annum of the average daily net assets of the Advantage shares and Xpress shares.

38

Daily Income Fund

Notes to the Financial Statements (Unaudited) (Continued)

2: Investment Management Fees and Other Transactions with Affiliates (Continued)

The Fund and the Distributor, an affiliate of the Manager, have entered into a Shareholder Servicing Agreement and a Distribution Agreement. For its services under the Shareholder Servicing and Distribution Agreements, the Distributor receives from each Portfolio a fee, accrued daily and paid monthly, at an annual rate of each Class’s average daily net assets as follows:

	Shareholder Servicing Fees			Distribution Fees
Institutional Shares		-0-			-0-
Institutional Service Shares		0.25	%		-0-
Investor Shares		0.25	%		0.20	%
Investor Service Shares		0.25	%		0.45	%
Retail Shares		0.25	%		0.65	%
Advantage Shares		0.25	%		0.75	%
Xpress Shares		0.25	%		0.75	%
Fiduciary Shares		0.25	%		0.10	%
Investor Select Shares		0.25	%		0.35	%

As of September 30, 2013, the amounts Payable to affiliates included in the Statement of Assets and Liabilities are broken down as follows:

Fee Type/Affiliate	Money Market Portfolio		U.S. Treasury Portfolio		U.S. Government Portfolio		Municipal Portfolio
Investment management fees/Manager	$	689,480	$	5,000	$	116,673	$	35,651
Administration fees/Manager		229,827		-0-		-0-		-0-
Shareholder servicing fees/Distributor		38,731		-0-		-0-		-0-
Transfer agency fees/TA		76,931		-0-		-0-		-0-
Total	$	1,034,969	$	5,000	$	116,673	$	35,651

For the period ended September 30, 2013, the following fees were voluntarily waived by the Manager, Distributor and TA:

	Money Market Portfolio		U.S. Treasury Portfolio		U.S. Government Portfolio		Municipal Portfolio
Investment management fees	$	-0-	$	745,793	$	298,334	$	77,263
Administration fees		386,228		377,987		431,175		135,118
Shareholder servicing fees – Institutional Service shares		75,346		228,593		162,054		3,728
Shareholder servicing fees – Investor shares		181,910		282,799		N/A		N/A
Shareholder servicing fees – Investor Service shares		332,837		189,522		N/A		65,599
Shareholder servicing fees – Retail shares		1,581,627		94,306		505,253		317,085
Shareholder servicing fees – Advantage shares		2,003,165		N/O		1,310,408		387,707
Shareholder servicing fees – Xpress shares		280,591		N/O		N/O		N/O
Shareholder servicing fees – Fiduciary shares		579,814		135,024		298,125		N/O
Shareholder servicing fees – Investor Select shares		174,963		74,634		38,452		N/O
Distribution fees – Investor shares		146,496		226,239		N/A		N/A
Distribution fees – Investor Service shares		602,930		341,139		N/A		118,078
Distribution fees – Retail shares		4,131,414		245,196		1,313,658		824,421
Distribution fees – Advantage shares		6,871,348		N/O		3,931,225		1,163,121
Distribution fees – Xpress shares		1,010,829		N/O		N/O		N/O
Distribution fees – Fiduciary shares		231,925		54,010		119,250		N/O
Distribution fees – Investor Select shares		244,948		104,488		53,833		N/O
Transfer agency fees – Institutional shares		53,721		70,805		2,245		132
Transfer agency fees – Institutional Service shares		-0-		18,287		12,964		298
Transfer agency fees – Investor shares		7,180		56,560		N/A		N/A
Transfer agency fees – Investor Service shares		13,535		37,904		N/A		13,120
Transfer agency fees – Retail shares		81,881		18,861		101,051		63,417
Transfer agency fees – Fiduciary shares		89,509		27,005		59,625		N/O
Transfer agency fees – Investor Select shares		26,938		14,927		7,691		N/O
Total	$	19,109,135	$	3,344,079	$	8,645,343	$	3,169,087

Included in the above amounts were waivers to maintain a minimum yield in light of market conditions.

The Fund’s investment manager and distributor have voluntarily agreed to waive fees and/or reimburse expenses in order to maintain Total Annual Operating expenses as set forth below (“the Expense Cap Arrangement”).

39

Daily Income Fund

Notes to the Financial Statements (Unaudited) (Continued)

2: Investment Management Fees and Other Transactions with Affiliates (Continued)

Share classes	Money Market Portfolio			U.S. Treasury Portfolio			U.S. Government Portfolio			Municipal Portfolio
Institutional shares		0.20	%		0.20	%		0.20	%		0.27	%
Institutional Service shares		0.47	%		0.47	%		0.47	%		0.52	%
Investor shares		0.65	%		0.65	%		N/A			N/A
Investor Service shares		0.95	%		0.95	%		N/A			0.95	%
Retail shares		1.00	%		1.00	%		1.00	%		1.07	%
Fiduciary shares		0.50	%		0.50	%		0.50	%		N/O
Investor Select shares		0.75	%		0.75	%		0.75	%		N/O

Trustees of the Fund not affiliated with the Manager are paid a fee that is allocated among multiple funds, as defined below. Each Independent Trustee receives an annual retainer of $65,000 and a fee of $3,750 for each Board of Trustees meeting attended. Each Independent Trustee also receives a fee up to $1,500 at the discretion of the Lead Trustee for telephonic Board meetings and committee meetings that are not held on the same day as a Board Meeting. In addition, the Lead Independent Trustee receives an additional annual fee of $15,000, payable quarterly and the Audit Committee Chairman and Compliance Oversight Committee Chairman will each receive an additional annual fee of $10,000, payable quarterly. Each Independent Trustee will also be reimbursed for all out-of-pocket expenses relating to attendance at such meetings. The fees noted above are to be allocated at the discretion of the Manager among the Fund and the California Daily Tax Free Income Fund, Inc.

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 Portfolios. 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 (i) 0.05% of the monthly average net assets of the Investor, Investor Service, Retail, Fiduciary and Investor Select shares of the Portfolios or (ii) 0.02% of the monthly average net assets of the Institutional Service, and Institutional shares of the Portfolios. The Advantage and Xpress shares do not participate in the Transfer Agency Agreement. For the period ended September 30, 2013 these fees after waivers amounted to:

	Money Market Portfolio					U.S. Treasury Portfolio					U.S. Government Portfolio					Municipal Portfolio
	Amount		%			Amount		%			Amount		%			Amount		%
Institutional shares	$	-0-		0.00	%	$	-0-		0.00	%	$	-0-		0.00	%	$	-0-		0.00	%
Institutional Service shares		6,575		0.02	%		-0-		0.00	%		-0-		0.00	%		-0-		0.00	%
Investor shares		29,444		0.04	%		-0-		0.00	%		N/A					N/A
Investor Service shares		53,457		0.04	%		-0-		0.00	%		N/A					-0-		0.00	%
Retail shares		235,920		0.04	%		-0-		0.00	%		-0-		0.00	%		-0-		0.00	%
Fiduciary shares		26,454		0.01	%		-0-		0.00	%		-0-		0.00	%		N/O
Investor Select shares		8,054		0.01	%		-0-		0.00	%		-0-		0.00	%		N/O
Total	$	359,904				$	-0-				$	-0-				$	-0-

Natixis Global Asset Management, LP (“NGAM”), the parent company of the Manager, invests a portion of its excess cash balance in Daily Income Fund – Money Market Portfolio – Institutional shares. For the period ended September 30, 2013, NGAM has invested an average of $173,971,952 and as of September 30, 2013, as an investment of $7,617. Also, on a daily basis, the Manager, Distributor, TA and affiliated investment entities invested their excess cash in Daily Income Fund in amounts that are not material to the entity.

As of September 30, 2013, certain Trustees, Officers and affiliated entities had investments in the Portfolios representing less than 1% of each Portfolio.

3: Securities Transactions with Affiliated Funds

The Portfolios are 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 Trustees of the Portfolio. The procedures have been designed to ensure that any purchase or sale of securities of the Portfolio 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 Trustees 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 current market price.

For the period ended September 30, 2013, the Portfolios engaged in purchases and sales with affiliates, none of which resulted in any gain or loss, which amounted to:

Transaction Type	Money Market Portfolio		U.S. Treasury Portfolio		U.S. Government Portfolio		Municipal Portfolio
Purchases	$	-0-	$	-0-	$	-0-	$	20,050,000
Sales		4,999,298		-0-		-0-		23,580,000
Gains/(losses)		-0-		-0-		-0-		-0-

40

Daily Income Fund

Notes to the Financial Statements (Unaudited) (Continued)

4: Compensating Balance Arrangement and Other Transactions

Pursuant to a Compensating Balance Agreement, the Portfolios are permitted to temporarily overdraft or leave balances in their accounts with The Bank of New York Mellon (the “Bank”). The Portfolios may, in the case of the Municipal Portfolio, leave funds or overdraft funds in the account so the Bank or the Portfolio 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 Portfolio 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.

For the Money Market, U.S. Treasury and U.S. Government, the Bank or the Portfolios will be compensated by accumulating the daily overdraft charges and/or earnings credits throughout the month, respectively.

Earnings credit, if any, reduce the Fund’s safekeeping fees, but are separately disclosed as expense paid indirectly and custodian expenses, respectively, in the Statement of Operations.

5: Transactions in Shares of Beneficial Interest

At September 30, 2013, an unlimited number of shares of beneficial interest ($0.001 par value) were authorized. Transactions in capital stock, all at $1.00 per share were as follows:

MONEY MARKET PORTFOLIO	Six Months Ended September 30, 2013 (Unaudited)			Year Ended March 31, 2013
Institutional Shares
Sold		2,498,905,884		$	4,595,936,712
Issued on reinvestment of dividends		134,486			472,473
Redeemed		(2,363,700,466	)		(4,622,821,853	)
Adjustment to paid-in-capital*		1,243			-0-
Net increase (decrease)		135,341,147		$	(26,412,668	)
Institutional Service Shares
Sold		256,263,130		$	387,684,290
Issued on reinvestment of dividends		3,318			7,190
Redeemed		(264,649,290	)		(406,768,823	)
Adjustment to paid-in-capital*		167			-0-
Net increase (decrease)		(8,382,675	)	$	(19,077,343	)
Investor Shares
Sold		216,691,460		$	428,326,806
Issued on reinvestment of dividends		7,274			16,328
Redeemed		(219,425,372	)		(448,535,957	)
Adjustment to paid-in-capital*		430			-0-
Net increase (decrease)		(2,726,208	)	$	(20,192,823	)
Investor Service Shares
Sold		496,501,592		$	861,611,396
Issued on reinvestment of dividends		12,946			23,432
Redeemed		(492,862,778	)		(810,875,669	)
Adjustment to paid-in-capital*		819			-0-
Net increase (decrease)		3,652,579		$	50,759,159
Retail Shares
Sold		2,567,421,789		$	2,454,196,851
Issued on reinvestment of dividends		63,196			86,031
Redeemed		(1,310,381,931	)		(2,374,660,965	)
Adjustment to paid-in-capital*		6,442			-0-
Net increase (decrease)		1,257,109,496		$	79,621,917
Advantage Shares
Sold		1,639,252,004		$	3,229,725,251
Issued on reinvestment of dividends		181,519			338,961
Redeemed		(1,485,688,829	)		(2,982,358,524	)
Adjustment to paid-in-capital*		5,819			-0-
Net increase (decrease)		153,750,513		$	247,705,688

41

Daily Income Fund

Notes to the Financial Statements (Unaudited) (Continued)

5: Transactions in Shares of Beneficial Interest (Continued)

MONEY MARKET PORTFOLIO	Six Months Ended September 30, 2013 (Unaudited)			Year Ended March 31, 2013
Xpress Shares
Sold		196,534,063		$	419,446,902
Issued on reinvestment of dividends		13,473			27,097
Redeemed		(203,645,098	)		(420,231,092	)
Adjustment to paid-in-capital*		823			-0-
Net increase (decrease)		(7,096,739	)	$	(757,093	)
Fiduciary Shares
Sold		788,644,333
Issued on reinvestment of dividends		7,731
Redeemed		(876,133,178	)
Shares issued in connection with acquisition of HighMark Diversified Money Market Fund (Note 6)		1,203,995,207
Adjustment to paid-in-capital*		3,331
Net increase (decrease)		1,116,517,424
Investor Select Shares
Sold		95,514,836
Issued on reinvestment of dividends		20,857
Redeemed		(123,020,900	)
Shares issued in connection with acquisition of HighMark Diversified Money Market Fund (Note 6)		381,046,696
Adjustment to paid-in-capital*		1,055
Net increase (decrease)		353,562,544

* Due to various adjustments related to acquisition of HighMark Diversified Money Market Fund.

U.S. TREASURY PORTFOLIO	Six Months Ended September 30, 2013 (Unaudited)			Year Ended March 31, 2013
Institutional Shares
Sold		4,497,689,952		$	6,629,195,165
Issued on reinvestment of dividends		5,463			70,314
Redeemed		(4,171,900,062	)		(6,743,829,066	)
Adjustment to paid-in-capital*		(37,505	)		-0-
Net increase (decrease)		325,757,848		$	(114,563,587	)
Institutional Service Shares
Sold		630,307,587		$	1,523,980,659
Issued on reinvestment of dividends		1,460			18,627
Redeemed		(589,961,927	)		(1,602,311,455	)
Adjustment to paid-in-capital*		(8,477	)		-0-
Net increase (decrease)		40,338,643		$	(78,312,169	)
Investor Shares
Sold		643,427,641		$	969,320,254
Issued on reinvestment of dividends		1,757			14,327
Redeemed		(626,395,706	)		(966,993,207	)
Adjustment to paid-in-capital*		(9,396	)		-0-
Net increase (decrease)		17,024,296		$	2,341,374
Investor Service Shares
Sold		205,116,794		$	413,331,322
Issued on reinvestment of dividends		1,095			12,744
Redeemed		(195,616,680	)		(415,682,247	)
Adjustment to paid-in-capital*		(6,749	)		-0-
Net increase (decrease)		9,494,460		$	(2,338,181	)

42

Daily Income Fund

Notes to the Financial Statements (Unaudited) (Continued)

5: Transactions in Shares of Beneficial Interest (Continued)

U.S. TREASURY PORTFOLIO	Six Months Ended September 30, 2013 (Unaudited)			Year Ended March 31, 2013
Retail Shares
Sold		180,051,250		$	456,804,325
Issued on reinvestment of dividends		609			5,589
Redeemed		(190,837,923	)		(398,503,138	)
Adjustment to paid-in-capital*		(3,192	)		-0-
Net increase (decrease)		(10,789,256	)	$	58,306,776
Fiduciary Shares
Sold		347,950,362
Issued on reinvestment of dividends		97
Redeemed		(395,908,402	)
Shares issued in connection with acquisition of HighMark 100% U.S. Treasury Money Market Fund (Note 6)		214,307,589
Shares issued in connection with acquisition of HighMark Treasury Plus Money Market Fund (Note 6)		101,871,712
Adjustment to paid-in-capital*		(11,154	)
Net increase (decrease)		268,210,204
Investor Select Shares
Sold		97,204,271
Issued on reinvestment of dividends		1,429
Redeemed		(108,325,502	)
Shares issued in connection with acquisition of HighMark 100% U.S. Treasury Money Market Fund (Note 6)		154,641,350
Shares issued in connection with acquisition of HighMark Treasury Plus Money Market Fund (Note 6)		5,205,458
Adjustment to paid-in-capital*		(6,185	)
Net increase (decrease)		148,720,821

* Due to various adjustments related to acquisition of HighMark 100% U.S. Treasury Money Market Fund and HighMark Treasury Plus Money Market Fund.

U.S. GOVERNMENT PORTFOLIO	Six Months Ended September 30, 2013 (Unaudited)			Year Ended March 31, 2013
Institutional Shares
Sold		26,049,785		$	63,272,225
Issued on reinvestment of dividends		1,249			7,744
Redeemed		(25,803,802	)		(82,975,926	)
Adjustment to paid-in-capital*		(229	)		-0-
Net increase (decrease)		247,003		$	(19,695,957	)
Institutional Service Shares
Sold		59,218,600		$	54,818,976
Issued on reinvestment of dividends		6,481			8,911
Redeemed		(53,854,071	)		(53,855,309	)
Shares issued in connection with acquisition of Value Line U. S. Government Money Market Fund (Note 6)		-0-			64,245,300
Adjustment to paid-in-capital*		(1,327	)		-0-
Net increase (decrease)		5,369,683		$	65,217,878
Retail Shares
Sold		3,454,370,040		$	7,224,151,540
Issued on reinvestment of dividends		20,001			30,079
Redeemed		(3,479,725,547	)		(7,188,437,035	)
Adjustment to paid-in-capital*		(2,942	)		-0-
Net increase (decrease)		(25,338,448	)	$	35,744,584

43

Daily Income Fund

Notes to the Financial Statements (Unaudited) (Continued)

5: Transactions in Shares of Beneficial Interest (Continued)

U.S. GOVERNMENT PORTFOLIO	Six Months Ended September 30, 2013 (Unaudited)			Year Ended March 31, 2013
Advantage Shares
Sold		645,389,315		$	1,513,048,742
Issued on reinvestment of dividends		52,213			97,875
Redeemed		(677,980,514	)		(1,344,629,892	)
Adjustment to paid-in-capital*		(10,174	)		-0-
Net increase (decrease)		(32,549,160	)	$	168,516,725
Fiduciary Shares
Sold		494,177,186
Issued on reinvestment of dividends		560
Redeemed		(722,957,197	)
Shares issued in connection with acquisition of HighMark U.S. Government Money Market Fund (Note 6)		702,281,713
Adjustment to paid-in-capital*		(4,733	)
Net increase (decrease)		473,497,529
Investor Select Shares
Sold		49,459,164
Issued on reinvestment of dividends		1,535
Redeemed		(74,722,726	)
Shares issued in connection with acquisition of HighMark U.S. Government Money Market Fund (Note 6)		84,624,226
Adjustment to paid-in-capital*		(593	)
Net increase (decrease)		59,361,606

* Due to various adjustments related to acquisition of HighMark U.S. Government Money Market Fund.

MUNICIPAL PORTFOLIO	Six Months Ended September 30, 2013 (Unaudited)			Year Ended March 31, 2013
Institutional Shares
Sold		703,995		$	286,900
Issued on reinvestment of dividends		86			1,052
Redeemed		(5,068,439	)		(229,125	)
Net increase (decrease)		(4,364,358	)	$	58,827
Institutional Service Shares
Sold		4,228,654		$	5,760,789
Issued on reinvestment of dividends		150			192
Redeemed		(4,222,548	)		(2,683,958	)
Net increase (decrease)		6,256		$	3,077,023
Investor Service Shares
Sold		127,616,209		$	185,611,290
Issued on reinvestment of dividends		2,582			7,511
Redeemed		(127,388,166	)		(187,560,877	)
Net increase (decrease)		230,625		$	(1,942,076	)
Retail Shares
Sold		581,354,557		$	747,488,485
Issued on reinvestment of dividends		12,426			36,659
Redeemed		(576,264,315	)		(692,008,870	)
Net increase (decrease)		5,102,668		$	55,516,274

44

Daily Income Fund

Notes to the Financial Statements (Unaudited) (Continued)

5: Transactions in Shares of Beneficial Interest (Continued)

MUNICIPAL PORTFOLIO	Six Months Ended September 30, 2013 (Unaudited)			Year Ended March 31, 2013
Advantage Shares
Sold		191,205,046		$	441,703,894
Issued on reinvestment of dividends		15,297			40,756
Redeemed		(188,166,799	)		(336,579,745	)
Net increase (decrease)		3,053,544		$	105,164,905

6: Acquisition of Value Line U.S. Government Money Market Fund and HighMark Money Market Funds

On October 19, 2012, U.S. Government Portfolio acquired all of the net assets of Value Line U.S. Government Money Market Fund, an open-end investment company, pursuant to a plan of reorganization approved by the Board of Directors of Value Line U.S. Government Money Market Fund on June 21, 2012. The purpose of the transaction was to combine two funds with substantially similar investment policies and strategies. The acquisition was accomplished by a tax-free exchange of 64,245,300 shares of U.S. Government Portfolio, valued at $64,245,300, all of the assets and the assumption of the liabilities (net assets of $64,245,300) of Value Line U.S. Government Money Market Fund on October 19, 2012. The investment portfolio of Value Line U.S. Government Money Market Fund, with an amortized cost of $64,097,982, which approximates the market value at October 19, 2012, was the principal asset acquired by U.S. Government Portfolio. For financial reporting purposes, assets received and shares issued by U.S. Government Portfolio were recorded at amortized cost which approximates fair value; and the amortized cost basis of the investments received from Value Line U.S. Government Money Market Fund was carried forward to align ongoing reporting of U.S. Government Portfolio. Immediately prior to the merger, the net assets of U.S. Government Portfolio were $1,402,021,082.

On July 19, 2013, Money Market Portfolio acquired all of the net assets of HighMark Diversified Money Market Fund, an open- end investment company, pursuant to a plan of reorganization approved by the Board of Directors of HighMark Diversified Money Market Fund on April 2, 2013. The purpose of the transaction was to combine two funds with substantially similar investment policies and strategies. The acquisition was accomplished by a tax-free exchange of 1,585,041,903 shares of Money Market Portfolio, valued at $1,585,041,903, for all of the assets and the assumption of the liabilities (net assets of $1,585,085,155) of HighMark Diversified Money Market Fund on July 19, 2013. The investment portfolio of HighMark Diversified Money Market Fund, with an amortized cost of $1,552,364,853, which approximates the market value at July 19, 2013, was the principal asset acquired by Money Market Portfolio. For financial reporting purposes, assets received and shares issued by Money Market Portfolio were recorded at amortized cost which approximates fair value; and the amortized cost basis of the investments received from HighMark Diversified Money Market Fund, was carried forward to align ongoing reporting of Money Market Portfolio. Immediately prior to the merger, the net assets of Money Market Portfolio were $3,942,861,503.

Assuming the acquisition had been completed on April 1, 2013, the beginning of the semi-annual reporting period of Money Market Portfolio, Money Market Portfolio’s pro forma results of operations for the period ended September 30, 2013, are as follows:

Net investment income $660,078

Net realized gain (loss) on investments $311,662

Net increase (decrease) in net assets resulting from operations $971,740

Because the combined investment portfolios have been managed as a single integrated portfolio since the acquisition was completed, it is not practicable to separate the amounts of revenue and earnings of HighMark Diversified Money Market Fund that have been included in Money Market Portfolio’s Statement of Operations since July 19, 2013.

On July 19, 2013, U.S. Treasury Portfolio acquired all of the net assets of HighMark 100% U.S. Treasury Money Market Fund, an open- end investment company, pursuant to a plan of reorganization approved by the Board of Directors of HighMark 100% U.S. Treasury Money Market Fund on April 2, 2013. The purpose of the transaction was to combine two funds with substantially similar investment policies and strategies. The acquisition was accomplished by a tax-free exchange of 368,948,939 shares of U.S. Treasury Portfolio, valued at $368,948,939, for all of the assets and the assumption of the liabilities (net assets of $368,793,955) of HighMark 100% U.S. Treasury Money Market Fund on July 19, 2013. The investment portfolio of HighMark 100% U.S. Treasury Money Market Fund, with an amortized cost of $368,823,255, which approximates the market value at July 19, 2013, was the principal asset acquired by U. S. Treasury Portfolio. For financial reporting purposes, assets received and shares issued by U.S. Treasury Portfolio were recorded at amortized cost which approximates fair value; and the amortized cost basis of the investments received from HighMark 100% U.S. Treasury Money Market Fund, was carried forward to align ongoing reporting of U.S. Treasury Portfolio. Immediately prior to the merger, the net assets of U.S. Treasury Portfolio were $1,358,482,407.

On July 19, 2013, U.S. Treasury Portfolio acquired all of the net assets of HighMark Treasury Plus Money Market Fund, an open- end investment company, pursuant to a plan of reorganization approved by the Board of Directors of HighMark Treasury Plus Money Market Fund on April 2, 2013. The purpose of the transaction was to combine two funds with substantially similar investment policies and strategies. The acquisition was accomplished by a tax-free exchange of 107,077,170 shares of U.S. Treasury Portfolio, valued at $107,077,170, for all of the assets and the assumption of the liabilities (net assets of $107,076,992) of HighMark Treasury Plus Market Fund on July 19, 2013. The investment portfolio of HighMark Treasury Plus Money Market Fund, with an amortized cost of $94,598,557, which approximates the market value at July 19, 2013, was the principal asset acquired by U. S. Treasury Portfolio. For financial reporting purposes, assets received and

45

Daily Income Fund

Notes to the Financial Statements (Unaudited) (Continued)

6: Acquisition of Value Line U.S. Government Money Market Fund and HighMark Money Market Funds (Continued)

shares issued by U.S. Treasury Portfolio were recorded at amortized cost which approximates fair value; and the amortized cost basis of the investments received from HighMark Treasury Plus Money Market Fund, was carried forward to align ongoing reporting of U.S.Treasury Portfolio. Immediately prior to the merger, the net assets of U.S. Treasury Portfolio were $1,358,482,407.

Assuming the acquisition had been completed on April 1, 2013, the beginning of the semi-annual reporting period of U.S. Treasury Portfolio, U.S. Treasury Portfolio’s pro forma results of operations for the period ended September 30, 2013, are as follows:

Net investment income $7,475

Net realized gain (loss) on investments $(3,140)

Net increase (decrease) in net assets resulting from operations $4,335

Because the combined investment portfolios have been managed as a single integrated portfolio since the acquisition was completed, it is not practicable to separate the amounts of revenue and earnings of HighMark 100% U.S. Treasury Money Market Fund and HighMark Treasury Plus Money Market Fund that have been included in U.S. Treasury Portfolio’s Statement of Operations since July 19, 2013.

On July 19, 2013, U.S.Government Portfolio acquired all of the net assets of HighMark U.S. Government Money Market Fund, an open- end investment company, pursuant to a plan of reorganization approved by the Board of Directors of HighMark U.S. Government Money Market Fund on April 2, 2013. The purpose of the transaction was to combine two funds with substantially similar investment policies and strategies. The acquisition was accomplished by a tax-free exchange of 786,905,939 shares of U.S. Government Portfolio, valued at $786,905,939, for all of the assets and the assumption of the liabilities (net assets of $786,891,058) of HighMark U.S. Government Market Fund on July 19, 2013. The investment portfolio of HighMark U.S. Government Money Market Fund, with an amortized cost of $742,452,208, which approximates the market value at July 19, 2013, was the principal asset acquired by U. S. Government Portfolio. For financial reporting purposes, assets received and shares issued by U.S. Government Portfolio were recorded at amortized cost which approximates fair value; and the amortized cost basis of the investments received from HighMark U.S. Government Money Market Fund, was carried forward to align ongoing reporting of U.S.Government Portfolio. Immediately prior to the merger, the net assets of U.S. Government Portfolio were $1,566,779,480.

Assuming the acquisition had been completed on April 1, 2013, the beginning of the semi-annual reporting period of U.S.Government Portfolio, U.S. Government Portfolio’s pro forma results of operations for the period ended September 30, 2013, are as follows:

Net investment income $118,832

Net realized gain (loss) on investments $20,122

Net increase (decrease) in net assets resulting from operations $138,954

Because the combined investment portfolios have been managed as a single integrated portfolio since the acquisition was completed, it is not practicable to separate the amounts of revenue and earnings of HighMark U.S. Government Money Market Fund that have been included in U.S. Government Portfolio’s statement of operations since July 19, 2013.

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 carry forwards) 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 carry forward 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 carry forward 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

At March 31, 2013, the Fund had capital loss transactions available for Federal income tax purposes and to be applied against future gains, if any. The capital loss transactions were as follows:

	Capital Loss Utilized		Capital Loss Remaining		Expiration of Carryforwards
Money Market Portfolio	$	1,333,095	$	129,545		2017
U.S. Government Portfolio		3,771		-0-		N/A
		203		-0-		N/A
		48,115		5,955		2016
		-0-		12,623		2017
Total U.S. Government Portfolio	$	52,089	$	18,578
Municipal Portfolio		508		-0-		N/A

The Regulated Investment Company Modernization Act of 2010 (the “Act”) was signed into law on December 22, 2010. The act makes changes to several tax rules impacting Regulated Investment Companies (“RICs”). The Act allows for capital losses originating in taxable years beginning after December 22, 2010 (“post-enactment capital losses”) to be carried forward indefinitely. However, the Act requires any future

46

Daily Income Fund

Notes to the Financial Statements (Unaudited) (Continued)

7: Tax Information (Continued)

capital gains to be first offset by post-enactment capital losses before using capital losses incurred in taxable years beginning prior to the effective date of the Act. As a result of this ordering rule, capital loss carryforwards incurred in taxable years beginning prior to the effective date of the Act have an increased likelihood to expire unused. Furthermore, post-enactment capital losses will retain their character as either short-term or long-term capital losses rather than being considered all short-term capital losses as under previous law. As of March 31, 2013, the Portfolios did not have any post-enactment capital loss carryforwards.

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 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.

The following is a summary of the tiered valuation input levels, as of the end of the reporting period, September 30, 2013. 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 Daily Income Fund – Money Market Portfolio’s investments as of September 30, 2013:

Description	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Repurchase agreements	$	-0-	$	707,000,000	$	-0-
Debt securities issued by corporations, financial institutions, states of the United States and political subdivisions of the states	$	-0-	$	6,040,941,031	$	-0-
Total	$	-0-	$	6,747,941,031	$	-0-

The following table summarizes the inputs used to value the Daily Income Fund – U.S. Treasury Portfolio’s investments as of September 30, 2013:

Description	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Repurchase agreements	$	-0-	$	1,112,000,000	$	-0-
Debt securities issued by the U.S. Treasury and other U.S. Government corporation and agencies	$	-0-	$	874,965,043	$	-0-
Total	$	-0-	$	1,986,965,043	$	-0-

47

Daily Income Fund

Notes to the Financial Statements (Unaudited) (Continued)

8: Additional Valuation Information (Continued)

The following table summarizes the inputs used to value the Daily Income Fund – U.S. Government Portfolio’s investments as of September 30, 2013:

Description	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Repurchase agreements	$	-0-	$	665,000,000	$	-0-
Debt securities issued by the U.S. Treasury and other U.S. Government corporation and agencies	$	-0-	$	1,335,216,846	$	-0-
Total	$	-0-	$	2,000,216,846	$	-0-

The following table summarizes the inputs used to value the Daily Income Fund – Municipal Portfolio’s investments as of September 30, 2013:

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-	$	609,887,340	$	-0-
Total	$	-0-	$	609,887,340	$	-0-

For the period ended September 30, 2013, there was no Level 1 or Level 3 investments. There were also no transfers between levels during the period ended September 30, 2013.

48

Daily Income Fund

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.

49

Protecting Your Privacy at Reich & Tang

This policy applies to Reich & Tang Asset Management, LLC (“RTAM”), its subsidiaries Reich & Tang Distributors, Inc. (“RTD”) and Reich & Tang Services, Inc. (“RTS”), RTS affiliate Reich & Tang Deposit Solutions, LLC (“RTDS”) and RTDS subsidiaries Stable Custody Group LLC, and Stable Custody Group II, LLC (collectively “Reich & Tang”), along with all mutual funds or other funds managed or advised by Reich & Tang Asset Management, LLC.

^:  Who is covered by our Privacy Policy

This Privacy Policy applies to all current and former Reich & Tang customers. New customers receive our Privacy Policy when an account is opened and annually thereafter. You will be notified of any major change to the Privacy Policy.

^:  Protecting customer information

Keeping your personal information secure is important to us at Reich & Tang. This Privacy Policy explains how we protect your privacy, when we collect and use information about you in order to administer your account, and the measures we take to safeguard that information. All personal information provided by our customers is used exclusively to administer our business and related services in a manner consistent with all applicable laws and regulations. It is kept confidential and not sold to third parties for use in marketing or solicitation. We maintain your personal information according to strict confidentiality and security standards.

^:  Types of information we collect from our customers

• Information from applications, incoming phone calls, online registrations or other forms (such as your name, address, e-mail address, social security number, tax identification number and income).

• Information about your account, account transactions (e.g., account number, history, use of online products and services) and other transactions with Reich & Tang.

• Information obtained in connection with our efforts to protect against fraudulent or unauthorized use of your account(s).

• If you visit our website, we use software to collect anonymous data to better understand website usage and to improve our website. The information is stored in log files and is used for aggregated and statistical reporting. This log information is not linked to personally identifiable information gathered elsewhere on the site. Please refer to the Disclosure section found on our website at www.reichandtang.com for more information.

^:  Use of information

When we collect personal information from you, we will reference this policy or otherwise explain to you how we intend to use the information. We limit the collection and use of personal information to what is necessary to administer our business. We may disclose personal information as required by law, and where we believe in good faith that disclosure is required under law, to cooperate with regulators or law enforcement authorities, to process and service your account(s), to protect against fraud, to protect the security of our records, to protect our rights or property, or upon your written request.

In order to service your account and effect your transactions, we provide your nonpublic personal information to our affiliates and to third-party service providers 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. They are required to keep this information confidential and not use it for any other purpose than to carry out the services they are performing for Reich & Tang, such as printing statements, checks, etc.

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.

^:  Questions

If you have any questions, please call our Client Services Department at 800-433-1918 between the hours of 8:30a.m. and 5:00p.m. Eastern Time, send a letter to Reich & Tang, Attn: Client Services, 1411 Broadway, 28th Floor, New York, NY 10018-3450, or Email: info@rnt.com.

[This Page Intentionally Left Blank.]

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.

Daily Income Fund

1411 Broadway, 28^th Floor

New York, New York 10018

Manager

Reich & Tang Asset Management, LLC

1411 Broadway, 28^th Floor

New York, New York 10018

Custodian

The Bank of New York Mellon

2 Hanson Place, 7^th Floor

Brooklyn, New York 11217

Transfer Agent & Dividend Disbursing Agent

Reich & Tang Services, Inc.

1411 Broadway, 28^th Floor

New York, New York 10018

00106498

Item 2: Code of Ethics

Not Applicable (disclosure required in annual report on N-CSR only).

Item 3: Audit Committee Financial Expert

Not Applicable (disclosure required in annual report on N-CSR only).

Item 4: Principal Accountant Fees and Services

Not Applicable (disclosure required in annual report on N-CSR only).

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 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) Daily Income Fund
By (Signature and Title)*	/s/ Christine Manna
	Christine Manna, Secretary

Date:  December 2, 2013

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:  December 2, 2013

By (Signature and Title)*	/s/ Esther Cheung
	Esther Cheung, Treasurer and Assistant Secretary

Date:  December 2, 2013

^* Print the name and title of each signing officer under his or her signature.