As filed with the Securities and Exchange Commission on July 1, 2003
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: 04/30
Date of reporting period: 04/30/2003
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 annual report of New York Daily Tax Free Income
Fund, Inc. for the year ended April 30, 2003.
The Fund had net assets of $508,083,528 and 3,396 active shareholders as of
April 30, 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
APRIL 30, 2003
================================================================================
Ratings (a)
----------------
Face Maturity Value Standard
Amount Date Yield (Note 1) Moody's & Poor's
------ ---- ----- ------ ------- --------
Put Bond (b) (1.72%)
- ------------------------------------------------------------------------------------------------------------------------------------
$ 8,770,000 New York State Dormitory Authority - Series PPT-5
Insured by FHA 10/02/03 1.50% $ 8,770,000 A1+
- ------------ ------------
8,770,000 Total Put Bond 8,770,000
- ------------ ------------
Tax Exempt Commercial Paper (2.64%)
- ------------------------------------------------------------------------------------------------------------------------------------
$ 9,000,000 New York City, NY MTA Transportation Facilities BAN - Series A
LOC ABN AMRO Bank N.A. 06/12/03 1.15% $ 9,000,000 P1 A1+
2,000,000 New York City Municipal Water Authority - Series 6 07/17/03 1.00 2,000,000 P1 A1+
2,400,000 New York State Environmental Quality (Clean Water Act 1986)
LOC Bayerische Landesbank/Landesbank Hessen 06/02/03 1.05 2,400,000 P1 A1+
- ------------ ------------
13,400,000 Total Tax Exempt Commercial Paper 13,400,000
- ------------ ------------
Tax Exempt General Obligation Notes & Bonds (22.76%)
- ------------------------------------------------------------------------------------------------------------------------------------
$ 15,000,000 Albany, NY Central School District BAN (c) 03/26/04 1.17% $ 15,010,578
9,920,000 Alden, NY Central School District BAN (c) 06/27/03 1.72 9,920,294
2,021,000 Arlington, NY Central School District BAN (c) 11/04/03 1.75 2,021,507
17,061,905 Batavia, NY Central School District BAN (c) 03/26/04 1.15 17,066,379
2,500,000 Essex County, NY GO BAN - Series D (c) 12/30/03 1.25 2,512,351
3,147,388 Greece, NY Central School District BAN (c) 12/18/03 1.30 3,148,364
1,034,500 Honeoye Falls - Lima, NY Central School District BAN (c) 12/17/03 1.35 1,040,288
8,010,261 Horseheads, NY Central School District BAN (c) 08/15/03 1.45 8,028,592
7,500,000 Islip, NY UFSD #002 TAN (c) 06/26/03 1.72 7,500,222
2,000,000 Middletown, NY Central School District BAN (c) 12/19/03 1.30 2,010,348
5,870,000 New York and New Jersey ABN AMRO Munitops
Certificates Trust - Series 2002-33
LOC Dexia CLF 09/24/03 1.13 5,870,000 VMIG-1
9,000,000 Onondaga County, NY BOCES RAN - Series A (c) 06/26/03 1.75 9,000,400
13,328,581 Ontario County, NY Geneva Central School District (c) 01/28/04 1.20 13,330,468
10,000,000 Sachem, NY BAN 07/23/03 1.50 10,019,602 MIG-1
5,000,000 South Glen Falls, NY Central School District RAN (c) 06/17/03 1.75 5,000,251
4,150,000 West Seneca, NY BAN (c) 06/05/03 1.88 4,152,909
- ------------ ------------
115,543,635 Total Tax Exempt General Obligation Notes & Bonds 115,632,553
- ------------ ------------
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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) (70.77%)
- ------------------------------------------------------------------------------------------------------------------------------------
$ 1,200,000 Dutchess County, NY IDA (Trinity - Pawling School Corp.)
LOC Allied Irish Bank 10/01/32 1.35% $ 1,200,000 VMIG-1
1,470,000 Great Neck Water Authority Water System RB - Series 1993A
Insured by FGIC 01/01/20 1.35 1,470,000 VMIG-1 A1+
1,000,000 Islip, NY IDRB (Brentwood Distributor Co. Facility) - Series 1984 (c)
LOC Fleet Bank 05/01/09 1.40 1,000,000
14,600,000 Jay Street Development Corporation, NY Lease RB
(Jay Street Project) - Series A
LOC Morgan Guaranty Trust Company 05/01/22 1.35 14,600,000 VMIG-1 A1+
4,550,000 Jefferson County, NY IDA IDRB (Stature Electric) (c)
LOC PNC Bank, N.A. 10/01/13 1.40 4,550,000
8,900,000 Long Island Power Authority, NY RB (Electric System ) - Series 2
LOC State Street Bank & Trust Company/Westdeutsche Landesbank 05/01/33 1.35 8,900,000 VMIG-1 A1+
1,300,000 Long Island Power Authority, NY RB
(Electric System) - Series 7, Subseries 7-A
Insured by MBIA Insurance Corp. 04/01/25 1.25 1,300,000 VMIG-1 A1+
16,100,000 Long Island Power Authority, NY RB
(Electric System) - Series 7, Subseries 7-B
Insured by MBIA Insurance Corp. 04/01/25 1.35 16,100,000 VMIG-1 A1+
1,270,000 Metropolitan Museum of Art
(New York State Dormitory Authority) - Series 1993A 07/01/15 1.30 1,270,000 VMIG-1 A1+
650,000 Metropolitan Museum of Art
(New York State Dormitory Authority) - Series 1993B 07/01/23 1.30 650,000 VMIG-1 A1+
2,500,000 Monroe County, NY IDA - Series A
LOC First Union National Bank 06/01/29 1.35 2,500,000 VMIG-1
2,315,000 New York City Civic Facilities IDA RB
(Epiphany Community Nursery School Project) - Series 1997
LOC Bank of New York 05/01/11 1.51 2,315,000 VMIG-1
6,200,000 New York City, NY GO - Series A-5
LOC KBC Bank 08/01/15 1.40 6,200,000 VMIG-1 A1+
5,760,000 New York City, NY GO - Series B
Insured by FGIC 10/01/20 1.40 5,760,000 VMIG-1 A1+
10,000,000 New York City, NY GO - Series C-3
LOC BNP Paribas 08/01/20 1.35 10,000,000 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
APRIL 30, 2003
================================================================================
Ratings (a)
----------------
Face Maturity Value Standard
Amount Date Yield (Note 1) Moody's & Poor's
------ ---- ----- ------ ------- --------
Variable Rate Demand Instruments (d) (Continued)
- ------------------------------------------------------------------------------------------------------------------------------------
$ 2,000,000 New York City, NY GO - Series E-3
LOC Westdeutsche Landesbank 08/01/23 1.40% $ 2,000,000 VMIG-1 A1+
11,000,000 New York City, NY GO - Series E-4
LOC State Street Bank & Trust Company 08/01/21 1.30 11,000,000 VMIG-1 A1+
1,100,000 New York City, NY GO - Series E-5
LOC Morgan Guaranty Trust Company 08/01/09 1.40 1,100,000 VMIG-1 A1+
1,500,000 New York City, NY GO - Series E-5
LOC Morgan Guaranty Trust Company 08/01/15 1.40 1,500,000 VMIG-1 A1+
1,600,000 New York City, NY GO - Series E-5
LOC Morgan Guaranty Trust Company 08/01/18 1.40 1,600,000 VMIG-1 A1+
4,500,000 New York City, NY GO - Series F-3
LOC Morgan Guaranty Trust Company 02/15/13 1.35 4,500,000 VMIG-1 A1+
7,900,000 New York City, NY GO - Series F-6
LOC Morgan Guaranty Trust Company 02/15/18 1.35 7,900,000 VMIG-1 A1+
4,500,000 New York City, NY GO - Series H-4
Insured by AMBAC Indemnity Corp. 08/01/15 1.35 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 1.30 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 1.30 2,000,000 VMIG-1 A1+
10,045,000 New York City, NY GO Fiscal 1993 - Series A-6
LOC Landesbank Hessen 08/01/19 1.35 10,045,000 VMIG-1 A1+
3,000,000 New York City, NY GO Trust Receipts SGB 33 - Series 1 1996F
Insured by FSA 02/01/19 1.39 3,000,000 A1+
6,525,000 New York City, NY HDC MHRB (Jane Street Development)
Collateralized by Federal National Mortgage Association 09/15/28 1.38 6,525,000 A1+
2,900,000 New York City, NY HDC Residential RB
(Montefiore Medical Center) - Series 1993A
LOC Chase Manhattan Bank, N.A. 05/01/30 1.35 2,900,000 A1
5,000,000 New York City, NY HFA RB (E 39th Street Housing) - Series A
Guaranteed by Federal National Mortgage Association 11/15/31 1.40 5,000,000 VMIG-1
3,865,000 New York City, NY IDA Civic Facilities RB
(Convent Sacred Heart School)
LOC Allied Irish Bank 11/01/32 1.45 3,865,000 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
------ ---- ----- ------ ------- --------
Variable Rate Demand Instruments (d) (Continued)
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$ 4,880,000 New York City, NY IDA Civil Facilities (Center for Jewish History)
LOC Allied Irish Bank 09/01/31 1.30% $ 4,880,000 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 1.40 10,000,000 VMIG-1 A1+
2,000,000 New York City, NY Municipal Water Finance Authority RB
(Water & Sewer System) 06/15/33 1.39 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 1.39 5,000,000 A1+
3,555,000 New York City, NY Municipal Water Finance Authority RB
Municipal Securities Trust Receipts
Insured by MBIA Insurance Corp. 06/15/29 1.39 3,555,000 A1+
1,162,000 New York City, NY Trust for Cultural Resources
(Carnegie Hall) - Series 1990
LOC Westdeutsche Landesbank 12/01/15 1.20 1,162,000 VMIG-1 A1+
12,155,000 New York State Development Corporation (Eagle) 07/01/16 1.39 12,155,000 A1+
990,000 New York State Dormitory Authority (Merlots)
Insured by AMBAC Indemnity Corp. 02/15/18 1.42 990,000 VMIG-1
3,100,000 New York State Dormitory Authority (Wagner College Project)
LOC Morgan Guaranty Trust Company 07/01/28 1.30 3,100,000 A1+
2,900,000 New York State Dormitory Authority RB
(Cornell University) - Series A
LOC Toronto Dominion Bank 07/01/29 1.30 2,900,000 A1+
9,500,000 New York State Dormitory Authority RB
(Columbia University) - Series C 07/01/27 1.35 9,500,000 A1+
4,985,000 New York State Dormitory Authority RB (Public Library) - Series A
Insured by MBIA Insurance Corp. 07/01/28 1.35 4,985,000 VMIG-1 A1
1,500,000 New York State ERDA (New York State Electric & Gas)
LOC Mellon Bank 02/01/29 1.40 1,500,000 VMIG-1 A1+
7,200,000 New York State HFA (70 Battery Place) - Series A
Collateralized by Federal National Mortgage Association 05/15/29 1.38 7,200,000 VMIG-1
12,000,000 New York State HFA (Normandie Court II Project) - Series A
Guaranteed by Federal Home Loan Mortgage Corporation 11/01/29 1.38 12,000,000 VMIG-1
12,000,000 New York State HFA RB (Saxony Housing) - Series 1997A 05/15/30 1.38 12,000,000 VMIG-1
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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
APRIL 30, 2003
================================================================================
Ratings (a)
----------------
Face Maturity Value Standard
Amount Date Yield (Note 1) Moody's & Poor's
------ ---- ----- ------ ------- --------
Variable Rate Demand Instruments (d) (Continued)
- ------------------------------------------------------------------------------------------------------------------------------------
$ 8,300,000 New York State HFA RB (750 Fifth Avenue Project) - Series A
Guaranteed by Federal National Mortgage Association 05/15/31 1.40% $ 8,300,000 VMIG-1
4,000,000 New York State HFA RB (Union Square Housing)
Guaranteed by Federal National Mortgage Association 11/01/24 1.40 4,000,000 VMIG-1
16,900,000 New York State HFA RB (West 23rd Street Housing) - Series A
LOC Bayerische Hypovereinsbank, A.G. 11/01/33 1.45 16,900,000 VMIG-1
6,300,000 New York State HFA RB - Series A
Guaranteed by Federal National Mortgage Association 05/01/29 1.40 6,300,000 VMIG-1
9,000,000 New York State Local Government
Assistance Corporation - Series 1994B
LOC Westdeutsche Landesbank/Bayerische Landesbank 04/01/23 1.35 9,000,000 VMIG-1 A1+
8,900,000 New York State Local Government
Assistance Corporation - Series 1995F
LOC Toronto Dominion Bank 04/01/25 1.35 8,900,000 VMIG-1 A1+
1,000,000 New York State Local Government Assistance Corporation - Series E
LOC Bank of Nova Scotia 04/01/25 1.28 1,000,000 VMIG-1 A1+
13,400,000 New York State Local Government Assistance Corporation - Series C
LOC Landesbank Hessen 04/01/25 1.28 13,400,000 VMIG-1 A1+
175,000 New York State Medical Care Facilities Finance Agency RB
(Pooled Equipment Authority) - Series 1994A
LOC Chase Manhattan Bank, N.A. 11/01/03 1.30 175,000 VMIG-1
4,400,000 New York Triborough Bridge & Tunnel Authority - Series C
Insured by AMBAC Indemnity Corp. 01/01/33 1.35 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 1.40 6,000,000 VMIG-1
3,550,000 New York, NY GO - Series B
Insured by FGIC 10/01/21 1.40 3,550,000 VMIG-1 A1+
1,700,000 Port Authority of New York and New Jersey
ROB/INS Trust Receipts Class F - Series 10
Insured by FSA 01/15/17 1.36 1,700,000 VMIG-1 A1+
2,000,000 Puerto Rico Commonwealth Infrastructure Financing Authority 10/01/34 1.40 2,000,000 A1+
2,000,000 Puerto Rico Commonwealth - PA 625
Insured by AMBAC Indemnity Corp. 07/01/10 1.30 2,000,000 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)
- ------------------------------------------------------------------------------------------------------------------------------------
$ 15,000,000 Puerto Rico Commonwealth Public Improvement Bonds
Tender Option Certificates - Series 2001-1
Insured by FSA 07/01/27 1.40% $ 15,000,000 A1+
5,000,000 Puerto Rico Commonwealth Public Improvement Bonds
Tender Option Certificates - Series 2001
Insured by FSA 07/01/19 1.40 5,000,000 A1+
1,775,000 Puerto Rico Housing Finance Corporate (Eagle) - Series 2000-C5102
Insured by AMBAC Indemnity Corp. 10/01/11 1.43 1,775,000 A1+
1,000,000 Puerto Rico Infrastructure Financing Authority
(Eagle Trust) - Series 2001 10/01/34 1.36 1,000,000 A1+
2,000,000 Saint Lawrence County, NY IDA (Aluminum Company of America) 12/01/33 1.81 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 1.45 5,000,000 A1+
- ------------ ------------
359,577,000 Total Variable Rate Demand Instruments 359,577,000
- ------------ ------------
Variable Rate Demand Instruments - Private Placements (d) (1.28%)
- ------------------------------------------------------------------------------------------------------------------------------------
$ 3,000,000 Blaser Real Estate 1986
LOC Union Bank of Switzerland 09/01/21 2.76% $ 3,000,000 P1 A1+
3,500,000 Blaser Real Estate 1990
LOC Union Bank of Switzerland 09/01/21 2.76 3,500,000 P1 A1
- ------------ ------------
6,500,000 Total Variable Rate Demand Instruments - Private Placements 6,500,000
- ------------ ------------
Total Investments (99.17%) (Cost $ 503,879,553+) 503,879,553
Cash and other assets, net of liabilities (0.83%) 4,203,975
------------
Net Assets (100.00%) $508,083,528
Net Asset Value, offering and redemption price per share: ============
Class A, 324,086,843 Shares Outstanding (Note 3) $ 1.00
============
Class B, 46,965,768 Shares Outstanding (Note 3) $ 1.00
============
CIBC Shares, 57,249,698 Shares Outstanding (Note 3) $ 1.00
============
Victory Shares,79,782,908 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)
APRIL 30, 2003
================================================================================
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 IDRB = Industrial Development Revenue Bond
BOCES = Board of Cooperative Educational Services LOC = Letter of Credit
ERDA = Energy and Research Development Authority MHRB = Multi-Family Housing Revenue Bond
FGIC = Financial Guaranty Insurance Company MTA = Metropolitan Transit Authority
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 TAN = Tax Anticipation Note
HFA = Housing Finance Authority UFSD = Unified School District
IDA = Industrial Development Authority
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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
YEAR ENDED APRIL 30, 2003
================================================================================
INVESTMENT INCOME
Income:
Interest.............................................................. $ 7,406,894
-------------
Expenses: (Note 2)
Investment management fee............................................. 1,594,452
Administration fee.................................................... 1,116,116
Distribution fee (CIBC Shares)........................................ 114,594
Shareholder servicing fee (Class A)................................... 717,864
Shareholder servicing fee (CIBC Shares)............................... 63,663
Shareholder servicing fee (Victory Shares)............................ 204,281
Custodian expenses.................................................... 22,299
Shareholder servicing and related shareholder expenses+............... 300,945
Legal, compliance and filing fees..................................... 93,854
Audit and accounting.................................................. 95,802
Directors' fees and expenses.......................................... 21,226
Other expenses........................................................ 13,190
-------------
Total expenses..................................................... 4,358,286
Less: Expenses paid indirectly.................................... ( 3,634)
Fees Waived................................................. ( 92,948)
-------------
Net expenses.............................................. 4,261,704
-------------
Net investment income................................................... 3,145,190
REALIZED GAIN (LOSS) ON INVESTMENTS
Net realized gain (loss) on investments................................. 3,741
-------------
Increase in net assets from operations.................................. $ 3,148,931
=============
<FN>
+ Includes class specific transfer agency expenses of $191,996, $22,473,
$54,636 and -0- for Class A, Class B, Victory Shares and CIBC 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
YEARS ENDED APRIL 30, 2003 AND 2002
================================================================================
2003 2002
--------------- ---------------
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income......................................... $ 3,145,190 $ 7,004,671
Net realized gain (loss) on investments....................... 3,741 -0-
--------------- ---------------
Increase in net assets from operations........................ 3,148,931 7,004,671
Dividends to shareholders from net investment income:
Class A....................................................... ( 2,117,552)* ( 4,886,822)*
Class B....................................................... ( 347,924)* ( 760,329)*
CIBC Shares................................................... ( 84,896)* -0-
Victory Shares................................................ ( 594,818)* ( 1,159,588)*
Evergreen Shares.............................................. -0- ( 197,932)*
Distributions from realized gain on investments:
Class A....................................................... ( 1,130) -0-
Class B....................................................... ( 159) -0-
CIBC Shares................................................... ( 172) -0-
Victory Shares................................................ ( 266) -0-
Evergreen Shares.............................................. -0- -0-
Capital share transactions (Note 3):
Class A....................................................... ( 19,810,540) ( 62,896,943)
Class B....................................................... ( 3,476,323) 5,292,831
CIBC Shares................................................... 57,249,698 -0-
Victory Shares................................................ ( 10,180,643) 11,535,924
Evergreen Shares.............................................. -0- ( 26,235,846)
--------------- ---------------
Total increase (decrease)................................. 23,784,206 ( 72,304,034)
Net assets:
Beginning of year............................................. 484,299,322 556,603,356
--------------- ---------------
End of year................................................... $ 508,083,528 $ 484,299,322
=============== ===============
<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.
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NEW YORK DAILY TAX FREE INCOME FUND, INC.
NOTES TO FINANCIAL STATEMENTS
================================================================================
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 five classes of stock authorized, Class A, Class B,
Evergreen, Victory and CIBC World Markets New York Tax Exempt Fund Shares ("CIBC
Shares"). The Class A, Evergreen, Victory and CIBC Shares are subject to a
service fee pursuant to the Distribution and Service Plan. The CIBC 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.
Evergreen shares liquidated on September 24, 2001; therefore financial
highlights for this class are not presented. 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 Evergreen
and Victory shares commenced on August 27, 1999. The CIBC Shares commenced on
November 22, 2002.
Effective May 27, 2003, the CIBC Shares were redesignated the New York Tax
Exempt Liquidity Fund Shares.
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.
- --------------------------------------------------------------------------------
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NEW YORK DAILY TAX FREE INCOME FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
================================================================================
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, Evergreen, Victory and CIBC
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, Evergreen and Victory Shares and a
service fee of .25% with respect to the CIBC Shares. In addition for its
services under the Distribution Agreement, the Distributor receives .45% per
annum in distribution fees of the CIBC Shares' average daily net assets. There
were no additional expenses borne by the Fund pursuant to the Distribution Plan.
For the year ended April 30, 2003, the Distributor voluntarily waived
shareholder servicing and distribution fees of $63,663 and $29,285, respectively
for the CIBC 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 $252,976 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
$3,634.
3. Capital Stock
At April 30, 2003, 20,000,000,000 shares of $.001 par value stock were
authorized and capital paid in amounted to $508,083,528. Transactions in capital
stock, all at $1.00 per share, were as follows:
Year Year
Ended Ended
April 30, 2003 April 30, 2002
-------------- --------------
Class A
- -------
Sold...................................... 663,226,627 774,977,392
Issued on reinvestment of dividends....... 1,189,376 4,919,435
Redeemed.................................. (684,226,543) (842,793,770)
----------- -----------
Net increase (decrease)................... ( 19,810,540) ( 62,896,943)
=========== ===========
Class B
- -------
Sold...................................... 262,746,630 295,120,137
Issued on reinvestment of dividends....... 350,336 767,559
Redeemed.................................. (266,573,289) (290,594,865)
----------- -----------
Net increase (decrease)................... ( 3,476,323) 5,292,831
=========== ===========
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
================================================================================
3. Capital Stock (Continued)
November 22, 2002
(Commencement of Offering) to
April 30, 2003
--------------
CIBC Shares
- -----------
Sold...................................... 169,576,276
Issued on reinvestment of dividends....... 76,044
Redeemed.................................. (112,402,622)
-----------
Net increase (decrease)................... 57,249,698
===========
Year Year
Ended Ended
April 30, 2003 April 30, 2002
-------------- --------------
Victory Shares
- --------------
Sold...................................... 151,410,340 145,042,598
Issued on reinvestment of dividends....... 595,064 1,159,527
Redeemed.................................. (162,186,047) (134,666,201)
----------- -----------
Net increase (decrease)................... ( 10,180,643) 11,535,924
=========== ===========
Year
Ended
April 30, 2002
--------------
Evergreen Shares*
- -----------------
Sold......................................................................... 14,491,136
Issued on reinvestment of dividends.......................................... 197,913
Redeemed..................................................................... ( 40,924,895)
-----------
Net increase (decrease)...................................................... ( 26,235,846)
===========
<FN>
* Evergreen shares liquidated on September 24, 2001.
</FN>
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.
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
NEW YORK DAILY TAX FREE INCOME FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
================================================================================
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 69% 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.
6. Financial Highlights
Year Ended April 30,
-------------------------------------------------------
CLASS A
- ------- 2003 2002 2001 2000 1999
------- ------- ------- ------- -------
Per Share Operating Performance:
(for a share outstanding throughout the year)
Net asset value, beginning of year............ $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
------- ------- ------- ------- -------
Income from investment operations:
Net investment income....................... 0.006 0.012 0.031 0.026 0.025
Less distributions:
Dividends from net investment income........ ( 0.006) ( 0.012) ( 0.031) ( 0.026) ( 0.025)
------ ------ ------ ------ ------
Net asset value, end of year.................. $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======= ======= ======= ======= =======
Total Return.................................. 0.59% 1.23% 3.11% 2.62% 2.48%
Ratios/Supplemental Data
Net assets, end of year (000)................. $324,086 $343,895 $406,791 $323,216 $473,965
Ratios to average net assets:
Expenses (a)................................ 0.82% 0.85% 0.87% 0.86% 0.85%
Net investment income....................... 0.59% 1.27% 3.03% 2.59% 2.43%
Expenses paid indirectly.................... 0.00% 0.00% 0.00% 0.00% 0.00%
<FN>
(a) Included expenses paid indirectly
</FN>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
================================================================================
6. Financial Highlights (Continued)
Year Ended April 30,
-------------------------------------------------------
CLASS A
- ------- 2003 2002 2001 2000 1999
------- ------- ------- ------- -------
Per Share Operating Performance:
(for a share outstanding throughout the year)
Net asset value, beginning of year............ $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
------- ------- ------- ------- -------
Income from investment operations:
Net investment income....................... 0.008 0.015 0.033 0.028 0.027
Less distributions:
Dividends from net investment income........ ( 0.008) ( 0.015) ( 0.033) ( 0.028) ( 0.027)
------ ------ ------ ------ ------
Net asset value, end of year.................. $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======= ======= ======= ======= =======
Total Return.................................. 0.79% 1.46% 3.37% 2.84% 2.70%
Ratios/Supplemental Data
Net assets, end of year (000)................. $ 46,966 $ 50,441 $ 45,149 $ 39,277 $ 7,377
Ratios to average net assets:
Expenses (a)................................ 0.61% 0.62% 0.62% 0.64% 0.64%
Net investment income....................... 0.77% 1.44% 3.31% 2.87% 2.68%
Expenses paid indirectly.................... 0.00% 0.00% 0.00% 0.00% 0.00%
November 22, 2002
CIBC Shares (Commencement of Offering) to
- ----------- April 30, 2003
--------------
Per Share Operating Performance:
(for a share outstanding throughout the period)
Net asset value, beginning of period.......... $ 1.00
-------
Income from investment operations:
Net investment income....................... 0.001
Less distributions:
Dividends from net investment income........ ( 0.001)
------
Net asset value, end of period................ $ 1.00
=======
Total Return.................................. 0.15%(b)
Ratios/Supplemental Data
Net assets, end of period (000)............... $ 57,249
Ratios to average net assets:
Expenses (a)................................ 0.90%(c)
Net investment income....................... 0.33%(c)
Expenses paid indirectly.................... 0.00%(c)
Distribution and shareholder
servicing fees waived.................... 0.37%(c)
<FN>
(a) Includes expenses paid indirectly
(b) Not annualized
(c) Annualized
</FN>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
NEW YORK DAILY TAX FREE INCOME FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
================================================================================
6. Financial Highlights (Continued)
Year Ended April 30, August 27, 1999
Victory Shares ------------------------------- (Commencement of Offering) to
- -------------- 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
------- ------- ------- -------
Income from investment operations:
Net investment income....................... 0.006 0.012 0.031 0.018
Less distributions:
Dividends from net investment income........ ( 0.006) ( 0.012) ( 0.031) ( 0.018)
------ ------ ------ ------
Net asset value, end of period................ $ 1.00 $ 1.00 $ 1.00 $ 1.00
======= ======= ======= =======
Total Return.................................. 0.59% 1.23% 3.11% 1.84%(a)
Ratios/Supplemental Data
Net assets, end of period (000)............... $ 79,783 $ 89,963 $ 78,428 $ 65,745
Ratios to average net assets:
Expenses (b)................................ 0.82% 0.85% 0.87% 0.86%(c)
Net investment income....................... 0.59% 1.27% 3.03% 2.59%(c)
Expenses paid indirectly.................... 0.00% 0.00% 0.00% 0.00%(c)
<FN>
(a) Not annualized
(b) Includes expenses paid indirectly
(c) Annualized
</FN>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
NEW YORK DAILY TAX FREE INCOME FUND, INC.
REPORT OF INDEPENDENT ACCOUNTANTS
================================================================================
To the Board of Directors and Shareholders of
New York Daily Tax Free Income Fund, Inc.
In our opinion, the accompanying statement of net assets and the related
statements of operations and of changes in net assets and the financial
highlights present fairly, in all material respects, the financial position of
New York Daily Tax Free Income Fund, Inc. (the "Fund") at April 30, 2003, the
results of its operations for the year then ended, and the changes in its net
assets for each of the two years in the period then ended and the financial
highlights for each of the four years in the period then ended, in conformity
with accounting principles generally accepted in the United States of America.
These financial statements and financial highlights (hereafter referred to as
"financial statements") are the responsibility of the Fund's management; our
responsibility is to express an opinion on these financial statements based on
our audits. We conducted our audits of these financial statements in accordance
with auditing standards generally accepted in the United States of America,
which require that we plan and perform the audit to obtain reasonable assurance
about whether the financial statements are free of material misstatement. An
audit includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements, assessing the accounting principles
used and significant estimates made by management, and evaluating the overall
financial statement presentation. We believe that our audits, which included
confirmation of securities at April 30, 2003 by correspondence with the
custodian, provide a reasonable basis for our opinion. The financial highlights
for the period ended April 30, 1999 were audited by other independent
accountants whose report dated May 25, 1999 expressed an unqualified opinion on
those statements.
PricewaterhouseCoopers LLP
New York, New York
June 6, 2003
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
NEW YORK DAILY TAX FREE INCOME FUND, INC.
ADDITIONAL INFORMATION
(UNAUDITED)
================================================================================
Directors and Officers Information
April 30, 2003+
- ---------------------- --------------- -------------- ----------------------- --------------------- --------------------
Position(s) Term of Principal Number of Other
Name, Address1, Held with Office Occupation(s) Portfolios in Fund Directorships
and Age Fund and Length of During Past Complex held by
Time Served 5 Years Overseen by Director
Director or Officer
- ---------------------- --------------- -------------- ----------------------- --------------------- --------------------
Disinterested Directors:
- ---------------------- --------------- -------------- ----------------------- --------------------- --------------------
Edward A. Kuczmarksi, Director 1984 Certified Public Director of one Trustee of the
Age 53 Accountant and portfolio Empire Builder Tax
Partner of Hays & Free Bond Fund
Company since 1980.
- ---------------------- --------------- -------------- ----------------------- --------------------- --------------------
Caroline E. Newell, Director 1984 Director of the Park Director of one Trustee of the
Age 62 Avenue Church Day portfolio Empire Builder Tax
School since 2001. Free Bond Fund
Director of Le
Chateau des Enfants
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 54 York University portfolio Empire Builder Tax
School of Law since Free Bond Fund
1980.
- ---------------------- --------------- -------------- ----------------------- --------------------- --------------------
<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
April 30, 2003+ (continued)
- --------------------- --------------- ---------------- -------------------------- -------------------- -----------------
Position(s) Term of Office Principal Occupation(s) Number of Other
Name, Address1, Held with and Length of During Past Portfolios in Fund Directorships
and Age Fund Time Served 5 Years Complex held by
Overseen by Director
Director or Officer
- --------------------- --------------- ---------------- -------------------------- -------------------- -----------------
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
LLC"), a registered portfolios
Investment Advisor.
Associated with RTAM,
LLC since 1994.
- --------------------- --------------- ---------------- -------------------------- -------------------- -----------------
Molly Flewharty, Vice President 1986 Senior Vice President of Officer of N/A
Age 52 RTAM, LLC. Associated sixteen
with RTAM, LLC since portfolios
1977.
- --------------------- --------------- ---------------- -------------------------- -------------------- -----------------
Lesley M. Jones, Vice President 1986 Senior Vice President of Officer of ten N/A
Age 54 RTAM, LLC. Associated portfolios
with RTAM, LLC since
1973.
- --------------------- --------------- ---------------- -------------------------- -------------------- -----------------
Dana E. Messina, Vice President 1986 Executive Vice President Officer of thirteen N/A
Age 46 of RTAM, LLC. portfolios
Associated with RTAM,
LLC since 1980.
- --------------------- --------------- ---------------- -------------------------- -------------------- -----------------
Richard DeSanctis, Treasurer and 1992 Executive Vice Officer of N/A
Age 46 Assistant President, CFO and sixteen
Secretary Treasurer of RTAM, LLC. portfolios
Associated with RTAM,
LLC since 1990.
- --------------------- --------------- ---------------- -------------------------- -------------------- -----------------
Rosanne Holtzer, Secretary and 1998 Senior Vice President of Officer of N/A
Age 38 Assistant RTAM, LLC. Associated sixteen
Treasurer with RTAM, LLC since portfolios
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
NY4/03A
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
NEW YORK
DAILY
TAX FREE
INCOME
FUND, INC.
Annual Report
April 30, 2003
Item 2: Code of Ethics
Not applicable at this time.
Item 3: Audit Committee Financial Expert
Not applicable at this time.
Item 4: Principal Accountant Fees and Services
Not applicable at this time.
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
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.
There were no significant changes in the registrant's internal controls or in
other factors that could significantly affect these controls subsequent to the
date of their evaluation, including any corrective actions with regard to
significant deficiencies and material weaknesses.
Item 10: Exhibits
(a) Not applicable at this time.
(b) Certifications of Principal Executive Officer and Principal Financial
Officer, under Rule 30a-2 of the Investment Company Act of 1940.
(c) 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 7/1/2003
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 7/1/2003
By (Signature and Title)* /s/ Richard DeSanctis
Richard DeSanctis, Chief Financial Officer
Date 7/1/2003
* Print the name and title of each signing officer under his or her signature.