As filed with the Securities and Exchange Commission on January 5, 2004
Investment Company Act file number 811-3955
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF
REGISTERED MANAGEMENT INVESTMENT COMPANIES
New York Daily Tax Free Income Fund, Inc.
(Exact name of registrant as specified in charter)
600 Fifth Avenue
New York, NY 10020
(Address of principal executive offices) (Zip code)
Rosanne Holtzer
c/o Reich & Tang Asset Management, LLC
600 Fifth Avenue
New York, New York 10020
(Name and address of agent for service)
Registrant's telephone number, including area code: 212-830-5200
Date of fiscal year end: April 30th
Date of reporting period: September 30, 2003
Item 1: Report to Stockholders
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NEW YORK
DAILY TAX FREE 600 FIFTH AVENUE, NEW YORK, NY 10020
INCOME FUND, INC. (212)830-5200
================================================================================
Dear Shareholder:
We are pleased to present the semi-annual report of New York Daily Tax Free
Income Fund, Inc. for the period May 1, 2003 through October 31, 2003.
The Fund had net assets of $456,466,462 and 3,421 active shareholders as of
October 31, 2003.
We thank you for your support and look forward to continuing to serve your cash
management needs.
Sincerely,
\s\Steven W. Duff
Steven W. Duff
President
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NEW YORK DAILY TAX FREE INCOME FUND, INC.
STATEMENT OF NET ASSETS
OCTOBER 31, 2003
(UNAUDITED)
================================================================================
Ratings (a)
----------------
Face Maturity Value Standard
Amount Date Yield (Note 1) Moody's & Poor's
------ ---- ----- ------ ------- --------
Put Bond (b) (1.10%)
- ------------------------------------------------------------------------------------------------------------------------------------
$ 5,000,000 New York, NY (Merlots) - Series A 37 08/11/04 1.10% $ 5,000,000 VMIG-1
- ------------ ------------
5,000,000 Total Put Bond 5,000,000
- ------------ ------------
Revenue Bond (3.29%)
- ------------------------------------------------------------------------------------------------------------------------------------
$ 15,000,000 Commonwealth of Puerto Rico Public Improvement
Refunding Bonds, Series 2001 TICs / TOCs Trust - Series 2001-1
Insured by FSA 05/26/04 0.95% $ 15,000,000 A1+
- ------------ ------------
15,000,000 Total Revenue Bond 15,000,000
- ------------ ------------
Tax Exempt Commercial Paper (3.59%)
- ------------------------------------------------------------------------------------------------------------------------------------
$ 9,000,000 New York City, NY MTA Transportation Facilities BAN - Series A
LOC ABN AMRO Bank, N. A. 11/06/03 0.90% $ 9,000,000 P1 A1+
5,000,000 New York State Dormitory Authority (Columbia University) 11/12/03 0.85 5,000,000 A1+
2,400,000 New York State Environmental Quality (Clean Water Act 1986)
LOC Bayerische Landesbank / Landesbank Hessen 12/09/03 0.85 2,400,000 P1 A1+
- ------------ ------------
16,400,000 Total Tax Exempt Commercial Paper 16,400,000
- ------------ ------------
Tax Exempt General Obligation Notes & Bonds (23.09%)
- ------------------------------------------------------------------------------------------------------------------------------------
$ 15,000,000 Albany, NY Central School District BAN (c) 03/26/04 1.17% $ 15,004,680
2,021,000 Arlington, NY Central School District BAN (c) 11/04/03 1.75 2,021,008
17,061,905 Batavia, NY Central School District BAN (c) 03/26/04 1.15 17,063,884
5,929,500 Corning, NY Central School District BAN (c) 08/12/04 1.05 5,930,850
2,500,000 Essex County, NY GO BAN - Series D (c) 12/30/03 1.25 2,502,999
3,147,388 Greece, NY Central School District BAN (c) 12/18/03 1.30 3,147,587
1,034,500 Honeoye Falls-Lima, NY Central School District BAN (c) 12/17/03 1.30 1,035,657
4,000,000 Honeoye Falls-Lima, NY Central School District RAN (c) 06/17/04 1.00 4,000,856
2,238,515 Hyde Park, NY Central School District BAN (c) 06/25/04 1.00 2,249,271
14,100,157 Lewiston-Porter, NY Central School District BAN (c) 06/17/04 1.00 14,104,492
2,000,000 Middletown, NY Central School District BAN (c) 12/19/03 1.30 2,002,141
7,670,000 New York and New Jersey ABN AMRO Municipal TOPS
Certificates Trust - Series 2002-33
LOC Dexia CLF 05/05/04 1.09 7,670,000 VMIG-1
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The accompanying notes are an integral part of these financial statements.
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================================================================================
Ratings (a)
----------------
Face Maturity Value Standard
Amount Date Yield (Note 1) Moody's & Poor's
------ ---- ----- ------ ------- --------
Tax Exempt General Obligation Notes & Bonds (Continued)
- ------------------------------------------------------------------------------------------------------------------------------------
$ 3,000,000 Newburgh, NY Central School District BAN (c) 09/02/04 1.07% $ 3,016,851
13,328,581 Ontario County, NY Geneva Central School District (c) 01/28/04 1.20 13,329,191
7,500,000 Syosset, NY Central School District BAN (c) 07/16/04 1.05 7,502,499
4,800,000 Tonawanda, NY BAN (c) 08/05/04 1.05 4,825,222
- ------------ ------------
105,331,546 Total Tax Exempt General Obligation Notes & Bonds 105,407,188
- ------------ ------------
Variable Rate Demand Instruments (d) (67.12%)
- ------------------------------------------------------------------------------------------------------------------------------------
$ 5,000,000 Commonwealth of Puerto Rico Public Improvement
Bonds TOCS - Series 2001
Insured by FSA 07/01/19 1.06% $ 5,000,000 A1+
1,200,000 Dutchess County, NY IDA (Trinity - Pawling School Corp.)
LOC Allied Irish Bank 10/01/32 1.05 1,200,000 VMIG-1
1,000,000 Islip, NY IDRB (Brentwood Distributor Co. Facility) - Series 1984 (c)
LOC Fleet Bank 05/01/09 1.00 1,000,000
4,550,000 Jefferson County, NY IDA IDRB (Stature Electric) (c)
LOC PNC Bank, N.A. 10/01/13 1.10 4,550,000
22,450,000 Long Island Power Authority, NY RB
(Electric System) - Series 7, Subseries 7-B
Insured by MBIA Insurance Corp. 04/01/25 1.00 22,450,000 VMIG-1 A1+
9,000,000 Long Island Power Authority, NY RB (Electric System) - Subseries 1-B
LOC State Street Bank & Trust Company 05/01/33 1.12 9,000,000 VMIG-1 A1+
6,600,000 Long Island Power Authority, NY RB (Electric System) - Subseries 2-B
LOC Bayerische Landesbank, A.G. 05/01/33 1.15 6,600,000 VMIG-1 A1+
2,500,000 Monroe County, NY IDA - Series A
LOC Wachovia Bank & Trust Company, N.A. 06/01/29 1.00 2,500,000 VMIG-1
2,000,000 New York City, NY GO - Series A-5
LOC KBC Bank 08/01/15 1.15 2,000,000 VMIG-1 A1+
3,000,000 New York City, NY GO - Series E-4
LOC State Street Bank & Trust Company 08/01/21 1.15 3,000,000 VMIG-1 A1+
3,600,000 New York City, NY GO - Series E-4
LOC State Street Bank & Trust Company 08/01/22 1.15 3,600,000 VMIG-1 A1+
3,900,000 New York City, NY GO - Series F-6
LOC Morgan Guaranty Trust Company 02/15/18 1.04 3,900,000 VMIG-1 A1+
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The accompanying notes are an integral part of these financial statements.
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NEW YORK DAILY TAX FREE INCOME FUND, INC.
STATEMENT OF NET ASSETS (CONTINUED)
OCTOBER 31, 2003
(UNAUDITED)
================================================================================
Ratings (a)
----------------
Face Maturity Value Standard
Amount Date Yield (Note 1) Moody's & Poor's
------ ---- ----- ------ ------- --------
Variable Rate Demand Instruments (d) (Continued)
- ------------------------------------------------------------------------------------------------------------------------------------
$ 4,500,000 New York City, NY GO - Series H-4
Insured by AMBAC Indemnity Corp. 08/01/15 1.00% $ 4,500,000 VMIG-1 A1
4,000,000 New York City, NY GO - Series J, Subseries J-2
LOC Westdeutsche Landesbank 02/15/16 1.05 4,000,000 P1 A1+
2,000,000 New York City, NY GO Bonds - Series B-9
LOC Chase Manhattan Bank, N.A. 08/15/23 1.05 2,000,000 VMIG-1 A1+
10,545,000 New York City, NY GO Fiscal 1993 - Series A-6
LOC Landesbank Hessen 08/01/19 1.00 10,545,000 VMIG-1 A1+
3,000,000 New York City, NY GO Trust Receipts SGB33 - Series 1 1996F
Insured by FSA 02/01/19 1.08 3,000,000 A1+
2,800,000 New York City, NY HDC Residential RB
(Montefiore Medical Center) - Series 1993A
LOC Chase Manhattan Bank, N.A. 05/01/30 1.04 2,800,000 A1
4,725,000 New York City, NY IDA Civic Facilities RB
(American Society Technion Project)
LOC Allied Irish Bank 10/01/33 1.07 4,725,000 VMIG-1
24,100,000 New York City, NY IDA Civic Facilities RB
(Center For Jewish History)
LOC Allied Irish Bank 09/01/31 1.05 24,100,000 VMIG-1
3,865,000 New York City, NY IDA Civic Facilities RB
(Convent Sacred Heart School)
LOC Allied Irish Bank 11/01/32 1.12 3,865,000 VMIG-1
2,075,000 New York City, NY IDA Civic Facilities RB
(Epiphany Community Nursery School Project) - Series 1997
LOC Bank of New York 05/01/11 1.12 2,075,000 VMIG-1
10,000,000 New York City, NY IDA Special Facility RB
(Korean Airlines Company Limited Project) - Series 1997
LOC Citibank, N.A. 11/01/24 1.12 10,000,000 VMIG-1 A1+
2,000,000 New York City, NY Municipal Water Finance Authority RB
(Water & Sewer System) 06/15/33 1.08 2,000,000 A1+
5,000,000 New York City, NY Municipal Water Finance Authority RB
Municipal Securities Trust Receipts
Insured by MBIA Insurance Corp. 06/15/23 1.08 5,000,000 A1+
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The accompanying notes are an integral part of these financial statements.
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================================================================================
Ratings (a)
----------------
Face Maturity Value Standard
Amount Date Yield (Note 1) Moody's & Poor's
------ ---- ----- ------ ------- --------
Variable Rate Demand Instruments (d) (Continued)
- ------------------------------------------------------------------------------------------------------------------------------------
$ 1,162,000 New York City, NY Trust for Cultural Resources
(Carnegie Hall) - Series 1990
LOC Westdeutche Landesbank 12/01/15 0.80% $ 1,162,000 VMIG-1 A1+
12,155,000 New York State Development Corporation (Eagle) 07/01/16 1.08 12,155,000 A1+
7,870,000 New York State Dormitory Authority - Series PPT-5
Insured by FHA 10/11/30 1.20 7,870,000 A1+
990,000 New York State Dormitory Authority (Merlots) - Series A30
Insured by AMBAC Indemnity Corp. 02/15/18 1.10 990,000 VMIG-1
2,800,000 New York State Dormitory Authority RB (Cornell University) - Series A
LOC Toronto Dominion Bank 07/01/29 1.02 2,800,000 A1+
1,065,000 New York State Dormitory Authority RB
(Metropolitan Museum of Art) - Series 1993A 07/01/15 1.00 1,065,000 VMIG-1 A1+
650,000 New York State Dormitory Authority RB
(Metropolitan Museum of Art) - Series 1993B 07/01/23 1.00 650,000 VMIG-1 A1+
4,785,000 New York State Dormitory Authority RB (Public Library) - Series A
Insured by MBIA Insurance Corp. 07/01/28 1.00 4,785,000 VMIG-1 A1
3,100,000 New York State Dormitory Authority RB (Wagner College Project)
LOC Morgan Guaranty Trust Company 07/01/28 1.05 3,100,000 A1+
1,000,000 New York State Dormitory Authority RB P-Floats PA 199
Insured by MBIA Insurance Corp. 07/01/13 1.07 1,000,000 A1
10,000,000 New York State ERDA (New York State Electric & Gas)
LOC Mellon Bank 02/01/29 1.15 10,000,000 VMIG-1 A1+
12,000,000 New York State HFA (Normandie Court II Project) - Series A
Guaranteed by Federal Home Loan Mortgage Corporation 11/01/29 1.08 12,000,000 VMIG-1
12,000,000 New York State HFA RB (Saxony Housing) - Series 1997A 05/15/30 1.08 12,000,000 VMIG-1
4,000,000 New York State HFA RB (Union Square Housing)
Guaranteed by Federal National Mortgage Association 11/01/24 1.05 4,000,000 VMIG-1
6,300,000 New York State HFA RB - Series A
Guaranteed by Federal National Mortgage Association 05/01/29 1.05 6,300,000 VMIG-1
1,285,000 New York State Job Development Authority - Series A1 through A13
LOC Bayerische Landesbank / JP Morgan Chase 03/01/07 1.20 1,285,000 VMIG-1
3,300,000 New York State Local Government
Assistance Corporation - Series A-7V
Insured by FGIC 04/01/20 1.00 3,300,000 VMIG-1 A1+
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The accompanying notes are an integral part of these financial statements.
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NEW YORK DAILY TAX FREE INCOME FUND, INC.
STATEMENT OF NET ASSETS (CONTINUED)
OCTOBER 31, 2003
(UNAUDITED)
================================================================================
Ratings (a)
----------------
Face Maturity Value Standard
Amount Date Yield (Note 1) Moody's & Poor's
------ ---- ----- ------ ------- --------
Variable Rate Demand Instruments (d) (Continued)
- ------------------------------------------------------------------------------------------------------------------------------------
$ 1,000,000 New York State Local Government Assistance Corporation - Series B
LOC Bank of Nova Scotia 04/01/25 1.00% $ 1,000,000 VMIG-1 A1+
13,400,000 New York State Local Government Assistance Corporation - Series C
LOC Landesbank Hessen 04/01/25 1.00 13,400,000 VMIG-1 A1+
5,000,000 New York State Local Government Assistance Corporation - Series E
LOC Landesbank Hessen 04/01/25 1.00 5,000,000 VMIG-1 A1+
9,000,000 New York State Local Government
Assistance Corporation - Series 1994B
LOC Westdeutsche Landesbank/Bayerische Landesbank 04/01/23 1.00 9,000,000 VMIG-1 A1+
5,000,000 New York State Local Government
Assistance Corporation - Series 1995D
LOC Societe Generale 04/01/25 1.00 5,000,000 VMIG-1 A1+
8,900,000 New York State Local Government
Assistance Corporation - Series 1995F
LOC Societe Generale 04/01/25 1.00 8,900,000 VMIG-1 A1+
1,200,000 New York State Medical Care Facilities Finance Agency
RB P-Floats - 407 02/15/25 1.07 1,200,000 A1+
4,595,000 New York State Thruway Authority
(Highway & Bridge Trust Fund) ROCS II R4506
Insured by AMBAC Indemnity Corp. 04/01/19 1.08 4,595,000 A1+
4,400,000 New York Triborough Bridge & Tunnel Authority - Series C
Insured by AMBAC Indemnity Corp. 01/01/33 1.00 4,400,000 VMIG-1 A1+
6,000,000 New York Triborough Bridge & Tunnel Authority
BAN - Series M1J - Regulation D
Insured by MBIA Insurance Corp. 11/15/10 1.15 6,000,000 VMIG-1
4,000,000 Port Authority of New York And New Jersey
ROB/INS Trust Receipts Class F - Series 10
Insured by FSA 01/15/17 1.05 4,000,000 VMIG-1 A1+
2,000,000 Puerto Rico Commonwealth PA 625
Insured by AMBAC Indemnity Corp. 07/01/10 1.04 2,000,000 A1+
1,595,000 Puerto Rico HFC (Eagle) - Series 2000-C5102
Insured by AMBAC Indemnity Corp. 10/01/11 1.15 1,595,000 A1+
2,000,000 Puerto Rico Infrastructure Financing Authority
(Eagle Trust) - Series 2001 (c) 10/01/34 1.08 2,000,000
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The accompanying notes are an integral part of these financial statements.
- --------------------------------------------------------------------------------
================================================================================
Ratings (a)
----------------
Face Maturity Value Standard
Amount Date Yield (Note 1) Moody's & Poor's
------ ---- ----- ------ ------- --------
Variable Rate Demand Instruments (d) (Continued)
- ------------------------------------------------------------------------------------------------------------------------------------
$ 3,400,000 Puerto Rico PFC P-Floats PA 783 10/01/19 1.04% $ 3,400,000 A1+
2,000,000 Saint Lawrence County, NY IDA (Aluminum Company of America) 12/01/33 1.42 2,000,000 A1
5,000,000 Warren & Washington Counties, NY IDA IDRB
(Griffith Micro Science Inc. Project) - Series 1994
LOC Bank One 12/01/14 1.15 5,000,000 A1+
- ------------ ------------
306,362,000 Total Variable Rate Demand Instruments 306,362,000
- ------------ ------------
Variable Rate Demand Instruments - Private Placements (d) (1.42%)
- ------------------------------------------------------------------------------------------------------------------------------------
$ 3,000,000 Blaser Real Estate 1986
LOC Union Bank of Switzerland 09/01/21 2.60% $ 3,000,000 P1 A1+
3,500,000 Blaser Real Estate 1990
LOC Union Bank of Switzerland 09/01/21 2.60 3,500,000 P1 A1
- ------------ ------------
6,500,000 Total Variable Rate Demand Instruments - Private Placements 6,500,000
- ------------ ------------
Total Investments (99.61%) (cost $454,669,188+) 454,669,188
Cash and other assets, net of liabilities (0.39%) 1,797,274
------------
Net Assets (100.00%) $456,466,462
============
Net Asset Value, offering and redemption price per share:
Class A, 284,977,989 shares outstanding (Note 3) $ 1.00
============
Class B, 43,483,389 shares outstanding (Note 3) $ 1.00
============
Victory Shares, 71,418,559 shares outstanding (Note 3) $ 1.00
============
Liquidity Shares, 56,588,214 shares outstanding (Note 3) $ 1.00
============
<FN>
+ Aggregate cost for federal income tax purposes is identical.
</FN>
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The accompanying notes are an integral part of these financial statements.
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NEW YORK DAILY TAX FREE INCOME FUND, INC.
STATEMENT OF NET ASSETS (CONTINUED)
OCTOBER 31, 2003
(UNAUDITED)
================================================================================
FOOTNOTES:
(a) Unless the variable rate demand instruments are assigned their own ratings,
the ratings are those of the holding company of the bank whose letter of
credit guarantees the issue or the insurance company who insures the issue.
All letters of credit and insurance are irrevocable and direct pay covering
both principal and interest. Ratings are unaudited.
In addition, certain issuers have either a line of credit, a liquidity
facility, a standby purchase agreement or some other financing mechanism to
ensure the remarketing of the securities. This is not a guarantee and does
not serve to insure or collateralize the issue.
(b) The maturity date indicated is the next put date.
(c) Securities that are not rated that the Adviser has determined to be of
comparable quality to those rated securities in which the Fund invests.
(d) 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:
BAN = Bond Anticipation Note LOC = Letter of Credit
ERDA = Energy and Research Development Authority MTA = Metropolitan Transit Authority
FGIC = Financial Guaranty Insurance Company PFC = Public Finance Corporation
FHA = Federal Housing Administration RAN = Revenue Anticipation Note
FSA = Financial Security Assurance RB = Revenue Bond
GO = General Obligation ROB/INS = Reverse Option Bond / Inverse Securities
HDC = Housing Development Corporation ROCS = Reset Option Certificates
HFA = Housing Finance Authority TICs = Trust Inverse Certificates
HFC = Housing Finance Commission TOCs = Tender Option Certificates
IDA = Industrial Development Authority TOPS = Tender Option Puts
IDRB = Industrial Development Revenue Bond
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The accompanying notes are an integral part of these financial statements.
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NEW YORK DAILY TAX FREE INCOME FUND, INC.
STATEMENT OF OPERATIONS
SIX MONTHS ENDED OCTOBER 31, 2003
(UNAUDITED)
================================================================================
INVESTMENT INCOME
Income:
Interest..................................................................... $ 2,607,365
----------
Expenses: (Note 2)
Investment management fee.................................................... 753,739
Administration fee........................................................... 527,617
Distribution fee (Liquidity Shares).......................................... 142,600
Shareholder servicing fee (Class A).......................................... 310,004
Shareholder servicing fee (Victory Shares)................................... 79,374
Shareholder servicing fee (Liquidity Shares)................................. 79,222
Custodian expenses........................................................... 9,743
Shareholder servicing and related shareholder expenses+...................... 128,235
Legal, compliance and filing fees............................................ 49,999
Audit and accounting......................................................... 47,024
Directors' fees and expenses................................................. 9,750
Other expenses............................................................... 6,377
----------
Total expenses........................................................... 2,143,684
Less: Expenses paid indirectly (Note 2)................................. ( 2,030)
Fees Waived (Note 2).............................................. ( 128,036)
----------
Net expenses ................................................................ 2,013,618
----------
Net investment income........................................................... 593,747
REALIZED GAIN (LOSS) ON INVESTMENTS
Net realized gain (loss) on investments......................................... -0-
----------
Increase in net assets from operations.......................................... $ 593,747
==========
<FN>
+ Includes class specific transfer agency expenses of $77,500, $12,434 and
$19,843 for Class A, Class B and Victory Shares, respectively.
</FN>
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The accompanying notes are an integral part of these financial statements.
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NEW YORK DAILY TAX FREE INCOME FUND, INC.
STATEMENTS OF CHANGES IN NET ASSETS
================================================================================
Six Months
Ended Year
October 31, 2003 Ended
(Unaudited) April 30, 2003
----------- --------------
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income......................................... $ 593,747 $ 3,145,190
Net realized gain (loss) on investments....................... -0- 3,741
------------ -------------
Increase in net assets from operations........................ 593,747 3,148,931
Dividends to shareholders from net investment income:
Class A....................................................... ( 349,617)* ( 2,117,552)*
Class B....................................................... ( 105,394)* ( 347,924)*
Victory Shares................................................ ( 90,110)* ( 594,818)*
Liquidity Shares.............................................. ( 48,626)* ( 84,896)*
Distributions from realized gain on investments:
Class A....................................................... -0- ( 1,130)
Class B....................................................... -0- ( 159)
Victory Shares................................................ -0- ( 266)
Liquidity Shares.............................................. -0- ( 172)
Capital share transactions (Note 3):
Class A....................................................... ( 39,108,854) ( 19,810,540)
Class B....................................................... ( 3,482,379) ( 3,476,323)
Victory Shares................................................ ( 8,364,349) ( 10,180,643)
Liquidity Shares.............................................. ( 661,484) 57,249,698
----------- -------------
Total (decrease) increase................................. ( 51,617,066) 23,784,206
Net assets:
Beginning of period........................................... 508,083,528 484,299,322
------------ -------------
End of period................................................. $456,466,462 $ 508,083,528
============ =============
<FN>
* Designated as exempt-interest dividends for federal income tax purposes.
</FN>
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The accompanying notes are an integral part of these financial statements.
- --------------------------------------------------------------------------------
NEW YORK DAILY TAX FREE INCOME FUND, INC.
NOTES TO FINANCIAL STATEMENTS
(UNAUDITED)
================================================================================
1. Summary of Accounting Policies
New York Daily Tax Free Income Fund, Inc. (the "Fund") is a no-load,
non-diversified, open-end management investment company registered under the
Investment Company Act of 1940. The Fund is a short-term, tax exempt money
market fund. The Fund has four classes of stock authorized, Class A, Class B,
Victory and New York Tax Exempt Liquidity Fund Shares ("Liquidity Shares"). The
Class A, Victory and Liquidity Shares are subject to a service fee pursuant to
the Distribution and Service Plan. The Liquidity Shares are also subject to an
additional distribution fee pursuant to a Shareholder Servicing Agreement. The
Class B shares are not subject to a service fee. Additionally, the Fund may
allocate among its classes certain expenses to the extent allowable to specific
classes, including transfer agent fees, government registration fees, certain
printing and postage costs, and certain administrative and legal expenses. Class
specific expenses of the Fund were limited to shareholder servicing fees,
distribution fees and transfer agent expenses. In all other respects, all share
classes represent the same interest in the income and assets of the Fund. The
Victory Shares commenced on August 27, 1999. The Liquidity Shares commenced on
November 22, 2002 (formerly CIBC World Markets New York Tax Exempt Fund Shares;
redesignated New York Tax Exempt Liquidity Fund Shares on May 27, 2003).
The Fund's financial statements are prepared in accordance with accounting
principles generally accepted in the United States of America for investment
companies as follows:
a) Valuation of Securities -
Investments are valued at amortized cost. Under this valuation method, a
portfolio instrument is valued at cost and any discount is accreted or
premium is amortized on a constant basis to the maturity of the instrument.
The maturity of variable rate demand instruments is deemed to be the longer
of the period required before the Fund is entitled to receive payment of
the principal amount or the period remaining until the next interest rate
adjustment.
b) Federal Income Taxes -
It is the Fund's policy to comply with the requirements of the Internal
Revenue Code applicable to regulated investment companies and to distribute
all of its tax exempt and taxable (if any) income to its shareholders.
Therefore, no provision for federal income tax is required.
c) Dividends and Distributions -
Dividends from investment income (excluding capital gains and losses, if
any, and amortization of market discount) are declared daily and paid
monthly. Distributions of net capital gains, if any, realized on sales of
investments are made after the close of the Fund's fiscal year, as declared
by the Fund's Board of Directors.
d) Use of Estimates -
The preparation of financial statements in conformity with accounting
principles generally accepted in the United States of America 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.
e) General -
Securities transactions are recorded on a trade date basis. Interest
income, including accretion of discount and amortization of premiums, is
accrued as earned. Realized gains and losses from securities transactions
are recorded on the identified cost basis.
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
NEW YORK DAILY TAX FREE INCOME FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
(UNAUDITED)
================================================================================
2. Investment Management Fees and Other Transactions with Affiliates
Under the Investment Management Contract, the Fund pays an investment management
fee to Reich & Tang Asset Management LLC (the "Manager"), equal to .30% of the
Fund's average daily net assets.
Pursuant to an Administrative Services Agreement, the Fund pays to the Manager
an annual fee of .21% of the Fund's average daily net assets.
Pursuant to the Fund's Distribution Plans adopted under Securities and Exchange
Commission Rule 12b-1, the Fund and Reich & Tang Distributors, Inc. (the
"Distributor") have entered into a Distribution Agreement and a Shareholder
Servicing Agreement, with respect to the Class A, Victory and Liquidity Shares
of the Fund. For its services under the Shareholder Servicing Agreement, the
Distributor receives from the Fund a fee equal to .20% of the Fund's average
daily net assets with respect to the Class A and Victory Shares and a service
fee of .25% with respect to the Liquidity Shares. In addition for its services
under the Distribution Agreement, the Distributor receives .45% per annum in
distribution fees of the Liquidity Shares' average daily net assets. There were
no additional expenses borne by the Fund pursuant to the Distribution Plan.
For the period ended October 31, 2003, the Distributor voluntarily waived
shareholder servicing fees of $4,001, $1,024 and $79,222 for the Class A,
Victory and the Liquidity Shares, respectively. The Distributor also waived
distribution fees of $43,789 for the Liquidity Shares.
Fees are paid to Directors who are unaffiliated with the Manager on the basis of
$4,000 per annum plus $750 per meeting attended.
Included in the Statement of Operations under the caption "Shareholder servicing
and related shareholder expenses" are fees of $109,161 paid to Reich & Tang
Services, Inc., an affiliate of the Manager, as shareholder servicing agent for
the Fund. Also included under the same caption are expenses paid indirectly of
$2,030.
3. Capital Stock
At October 31, 2003, 20,000,000,000 shares of $.001 par value stock were
authorized and capital paid in amounted to $456,466,462. Transactions in capital
stock, all at $1.00 per share, were as follows:
Six Months
Ended Year
October 31, 2003 Ended
(Unaudited) April 30, 2003
Class A --------- --------------
- -------
Sold...................................... 544,589,986 663,226,627
Issued on reinvestment of dividends....... 241,273 1,189,376
Redeemed.................................. (583,940,113) (684,226,543)
----------- -----------
Net (decrease)............................ ( 39,108,854) ( 19,810,540)
=========== ===========
Class B
- -------
Sold...................................... 118,939,504 262,746,630
Issued on reinvestment of dividends....... 112,050 350,336
Redeemed.................................. (122,533,933) (266,573,289)
----------- -----------
Net (decrease)............................ ( 3,482,379) ( 3,476,323)
=========== ===========
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
================================================================================
3. Capital Stock (Continued)
Six Months
Ended Year
October 31,2003 Ended
(Unaudited) April 30, 2003
--------- --------------
Victory Shares
- --------------
Sold...................................... 48,715,123 151,410,340
Issued on reinvestment of dividends....... 91,053 595,064
Redeemed.................................. ( 57,170,525) (162,186,047)
----------- -----------
Net (decrease)............................ ( 8,364,349) ( 10,180,643)
=========== ===========
Six Months
Ended November 22, 2002
October 31, 2003 (Commencement of Offering) to
(Unaudited) April 30, 2003
--------- --------------
Liquidity Shares
- ----------------
Sold...................................... 129,666,881 169,576,276
Issued on reinvestment of dividends....... 54,639 76,044
Redeemed.................................. (130,383,004) (112,402,622)
----------- -----------
Net (decrease) increase................... ( 661,484) 57,249,698
=========== ===========
4. Tax Information
The tax character of distributions paid from realized gains during the year
ended April 30, 2003 consisted of $1,727 in ordinary income.
At April 30, 2003, the Fund had undistributed tax exempt income of $97,690 for
income tax purposes included in dividends payable.
5. Concentration of Credit Risk
The Fund invests primarily in obligations of political subdivisions of the State
of New York and, accordingly, is subject to the credit risk associated with the
non-performance of such issuers. Approximately 68% of these investments are
further secured, as to principal and interest, by credit enhancements such as
letters of credit, municipal bond insurance, and guarantees issued by financial
institutions. The Fund maintains a policy of monitoring its exposure by
reviewing the credit worthiness of the issuers, as well as that of the financial
institutions issuing the credit enhancements, and by limiting the amount of
holdings with credit enhancements from one financial institution.
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
NEW YORK DAILY TAX FREE INCOME FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
(UNAUDITED)
================================================================================
6. Financial Highlights
Six Months
Ended Year Ended April 30,
CLASS A October 31, 2003 -----------------------------------------------------------
- ------- (Unaudited) 2003 2002 2001 2000 1999
--------- ------ ------ ------ ------ ------
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........................ 0.001 0.006 0.012 0.031 0.026 0.025
Less distributions:
Dividends from net investment income ( 0.001) ( 0.006) ( 0.012) ( 0.031) ( 0.026) ( 0.025)
------ ------ ------ ------ ------ ------
Net asset value, end of period................. $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======= ======= ======= ======= ======= =======
Total Return................................... 0.11%(a) 0.59% 1.23% 3.11% 2.62% 2.48%
Ratios/Supplemental Data
Net assets, end of period (000)................ $284,977 $324,086 $343,895 $406,791 $323,216 $473,965
Ratios to average net assets:
Expenses (b)................................. 0.81%(c) 0.82% 0.85% 0.87% 0.86% 0.85%
Net investment income........................ 0.23%(c) 0.59% 1.27% 3.03% 2.59% 2.43%
Expenses paid indirectly..................... 0.00%(c) 0.00% 0.00% 0.00% 0.00% 0.00%
Shareholder servicing fees waived............ 0.00%(c) 0.00% 0.00% 0.00% 0.00% 0.00%
Six Months
Ended Year Ended April 30,
CLASS B October 31, 2003 -----------------------------------------------------------
- ------- (Unaudited) 2003 2002 2001 2000 1999
--------- ------ ------ ------ ------ ------
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........................ 0.002 0.008 0.015 0.033 0.028 0.027
Less distributions:
Dividends from net investment income ( 0.002) ( 0.008) ( 0.015) ( 0.033) ( 0.028) ( 0.027)
------ ------ ------ ------ ------ ------
Net asset value, end of period................. $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======= ======= ======= ======= ======= =======
Total Return................................... 0.21%(a) 0.79% 1.46% 3.37% 2.84% 2.70%
Ratios/Supplemental Data
Net assets, end of period (000)................ $43,483 $46,966 $50,441 $45,149 $39,277 $ 7,377
Ratios to average net assets:
Expenses (b)................................. 0.62%(c) 0.61% 0.62% 0.62% 0.64% 0.64%
Net investment income........................ 0.42%(c) 0.77% 1.44% 3.31% 2.87% 2.68%
Expenses paid indirectly..................... 0.00%(c) 0.00% 0.00% 0.00% 0.00% 0.00%
<FN>
(a) Not annualized
(b) Includes expenses paid indirectly
(c) Annualized
</FN>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
================================================================================
6. Financial Highlights (Continued)
Six Month Ended Year Ended April 30, August 27, 1999
Victory Shares October 31, 2003 -------------------------------- (Commencement of Offering)
- -------------- (Unaudited) 2003 2002 2001 April 30, 2000
--------- ------ ------ ------ --------------
Per Share Operating Performance:
(for a share outstanding throughout the period)
Net asset value, beginning of period........... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
Income from investment operations: ------- ------- ------- ------- -------
Net investment income........................ 0.001 0.006 0.012 0.031 0.018
Less distributions:
Dividends from net investment income......... ( 0.001) ( 0.006) ( 0.012) ( 0.031) ( 0.018)
------ ------ ------ ------ ------
Net asset value, end of period................. $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======= ======= ======= ======= =======
Total Return................................... 0.11%(a) 0.59% 1.23% 3.11% 1.84%(a)
Ratios/Supplemental Data
Net assets, end of period (000)................ $ 71,418 $ 79,783 $ 89,963 $ 78,428 $ 65,745
Ratios to average net assets:
Expenses (b)................................. 0.81%(c) 0.82% 0.85% 0.87% 0.86%(c)
Net investment income........................ 0.23%(c) 0.59% 1.27% 3.03% 2.59%(c)
Expenses paid indirectly..................... 0.00%(c) 0.00% 0.00% 0.00% 0.00%(c)
Shareholder servicing fees waived............ 0.00%(c) 0.00% 0.00% 0.00% 0.00%(c)
Six Months Ended November 22, 2002
October 31, 2003 (Commencement of Offering) to
Liquidity Shares (Unaudited) April 30, 2003
- ---------------- --------- --------------
Per Share Operating Performance:
(for a share outstanding throughout the period)
Net asset value, beginning of period........... $ 1.00 $ 1.00
Income from investment operations: ------- -------
Net investment income........................ 0.001 0.001
Less distributions:
Dividends from net investment income ( 0.001) ( 0.001)
------ ------
Net asset value, end of period................. $ 1.00 $ 1.00
======= =======
Total Return................................... 0.08%(a) 0.15%(a)
Ratios/Supplemental Data
Net assets, end of period (000)................ $ 56,588 $ 57,249
Ratios to average net assets:
Expenses (b)................................. 0.88%(c) 0.90%(c)
Net investment income........................ 0.15%(c) 0.33%(c)
Expenses paid indirectly..................... 0.00%(c) 0.00%(c)
Distribution and shareholder servicing fees waived 0.39%(c) 0.37%(c)
<FN>
(a) Not annualized
(b) Includes expenses paid indirectly
(c) Annualized
</FN>
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
NEW YORK DAILY TAX FREE INCOME FUND, INC.
ADDITIONAL INFORMATION
(UNAUDITED)
===============================================================================
Directors and Officers Information
October 31, 2003+
- ------------------------ -------------- --------------- -------------------------- ----------------------- ---------------
Position(s) Term of Office Principal Occupation(s) Number of Portfolios in Other
Name, Address1, Held with and Length of During Past Fund Complex Directorships
and Age Fund Time Served 5 Years Overseen by Director held by
or Officer Director
- ------------------------ -------------- --------------- -------------------------- ----------------------- ---------------
Disinterested Directors:
- ------------------------ -------------- --------------- -------------------------- ----------------------- ---------------
Edward A. Kuczmarksi, Director 1984 Certified Public Director of one Trustee of the
Age 53 Accountant and Partner of portfolio Empire Builder
Hays & Company since 1980. Tax Free Bond
Fund
- ------------------------ -------------- -------------- -------------------------- ----------------------- ---------------
Caroline E. Newell, Director 1984 Director of the Park Director of one Trustee of the
Age 63 Avenue Church Day School portfolio Empire Builder
since 2001. Director of Tax Free Bond
Le Chateau des Enfants Fund
and the American School
in Switzerland, both
since 1990.
- ------------------------ -------------- -------------- -------------------------- ----------------------- ---------------
John P. Steines, Director 1984 Professor of Law, New Director of one Trustee of the
Age 55 York University School of portfolio Empire Builder
Law since 1980. Tax Free Bond
Fund
- ------------------------ -------------- -------------- -------------------------- ----------------------- ---------------
<FN>
+ The Statement of Additional Information includes additional information
about New York Daily Tax Free Income Fund, Inc. (the "Fund") directors and
is available, without charge, upon request by calling the Fund's transfer
agent at (212) 830-5200.
1 The address for each of the above directors/officers of the Fund is Reich &
Tang Asset Management, LLC, 600 Fifth Avenue, New York, NY 10020.
</FN>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
================================================================================
Directors and Officers Information
October 31, 2003+ (continued)
- ------------------------ -------------- --------------- -------------------------- ----------------------- ---------------
Position(s) Term of Office Principal Occupation(s) Number of Portfolios in Other
Name, Address1, Held with and Length of During Past Fund Complex Directorships
and Age Fund Time Served 5 Years Overseen by Director held by
or Officer Director
- ------------------------ -------------- --------------- -------------------------- ----------------------- ---------------
Interested Directors/Officers:
- ------------------------ -------------- --------------- -------------------------- ----------------------- ---------------
Steven W. Duff, President and 1994 Manager and President of Director/Trustee N/A
Age 49 Director2 Reich & Tang Asset and/or Officer of
Management, LLC ("RTAM, sixteen portfolios
LLC"), a registered
Investment Advisor.
Associated with RTAM, LLC
since 1994.
- ------------------------ -------------- --------------- -------------------------- ----------------------- ---------------
Molly Flewharty, Vice President 1986 Senior Vice President of Officer of sixteen N/A
Age 52 RTAM, LLC. Associated portfolios
with RTAM, LLC since 1977.
- ------------------------ -------------- --------------- -------------------------- ----------------------- ---------------
Dana E. Messina, Vice President 1986 Executive Vice President Officer of N/A
Age 47 of RTAM, LLC. Associated thirteen portfolios
with RTAM, LLC since 1980.
- ------------------------ -------------- --------------- -------------------------- ----------------------- ---------------
Richard DeSanctis, Treasurer and 1992 Executive Vice President, Officer of sixteen N/A
Age 47 Assistant CFO and Treasurer of portfolios
Secretary RTAM, LLC. Associated
with RTAM, LLC since 1990.
- ------------------------ -------------- --------------- -------------------------- ----------------------- ---------------
Rosanne Holtzer, Secretary and 1998 Senior Vice President of Officer of sixteen N/A
Age 39 Assistant RTAM, LLC. Associated portfolios
Treasurer with RTAM, LLC since 1986.
- ------------------------ -------------- --------------- -------------------------- ----------------------- ---------------
<FN>
+ The Statement of Additional Information includes additional information
about New York Daily Tax Free Income Fund, Inc. (the "Fund") directors and
is available, without charge, upon request by calling the Fund's transfer
agent at (212) 830-5200.
1 The address for each of the above directors/officers of the Fund is Reich &
Tang Asset Management, LLC, 600 Fifth Avenue, New York, NY 10020.
2 Steven W. Duff is deemed an interested person of the Fund due to his
affiliation with RTAM, LLC, the Fund's investment advisor.
</FN>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
- -------------------------------------------------------
This report is submitted for the general information
of the shareholders of the Fund. It is not authorized
for distribution to prospective investors in the Fund
unless preceded or accompanied by an effective
prospectus, which includes information regarding the
Fund's objectives and policies, experience of its
management, marketability of shares, and other
information.
- -------------------------------------------------------
New York Daily Tax Free Income Fund, Inc.
600 Fifth Avenue
New York, New York 10020
Manager
Reich & Tang Asset Management, LLC
600 Fifth Avenue
New York, New York 10020
Custodian
The Bank of New York
100 Church Street, 10th Floor
New York, New York 10286
Transfer Agent &
Dividend Disbursing Agent
Reich & Tang Services, Inc.
600 Fifth Avenue
New York, New York 10020
NY10/03S
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
NEW YORK
DAILY
TAX FREE
INCOME
FUND, INC.
Semi-Annual Report
October 31,2003
(Unaudited)
- --------------------------------------------------------------------------------
Item 2: Code of Ethics
Not applicable.
Item 3: Audit Committee Financial Expert
Not applicable.
Item 4: Principal Accountant Fees and Services
Not applicable.
Item 5: Audit Committee of Listed Registrants
Not applicable.
Item 6: Reserved
Item 7: Disclosure of Proxy Voting Policies and Procedures for Closed-End
Management Investment Companies
Not applicable.
Item 8: Reserved
Item 9: Controls and Procedures
(a) The registrant's Principal Executive Officer and Principal Financial
Officer have evaluated the registrant's disclosure controls and
procedures within 90 days of this filing and have concluded that the
registrant's disclosure controls and procedures were effective in
ensuring that information required to be disclosed by the registrant
in this Form N-CSR was recorded, processed, summarized and reported on
a timely basis.
(b) There were no changes in the registrant's internal controls over
financial reporting that occurred during the registrant's last fiscal
half-year that have materially affected, or are reasonably likely to
affect, the registrant's internal controls over financial reporting.
Item 10: Exhibits
(a)(1) Not applicable.
(a)(2) Certifications of Principal Executive Officer and Principal Financial
Officer, under Rule 30a-2 of the Investment Company Act of 1940.
(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. ss.1350.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to
be signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) New York Daily Tax Free Income Fund, Inc.
By (Signature and Title)* /s/ Rosanne Holtzer
Rosanne Holtzer, Secretary
Date January 5, 2004
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/ Steven W. Duff
Steven W. Duff, Chief Executive Officer
Date January 5, 2004
By (Signature and Title)* /s/ Richard DeSanctis
Richard DeSanctis, Chief Financial Officer
Date January 5, 2004
* Print the name and title of each signing officer under his or her signature.