As filed with the Securities and Exchange Commission on December 1, 2005
Investment Company Act file number 811-8312
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF
REGISTERED MANAGEMENT INVESTMENT COMPANIES
INSTITUTIONAL DAILY INCOME FUND
(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: March 31
Date of reporting period: September 30, 2005
ITEM 1: REPORT TO STOCKHOLDERS
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INSTITUTIONAL 600 FIFTH AVENUE, NEW YORK, NY 10020
DAILY INCOME FUND (212) 830-5200
================================================================================
Dear Shareholder:
We are pleased to present the semi-annual report of Institutional Daily Income
Fund (the "Fund") for the period ended April 1, 2005 through September 30, 2005.
The Fund's Money Market Portfolio had 915 shareholders and net assets of
$676,583,292 as of September 30, 2005. The U.S. Treasury Portfolio had 183
shareholders and net assets of $795,730,827 as of September 30, 2005.
We thank you for your support and look forward to continuing to serve your cash
management needs.
Sincerely,
/s/ signature
Steven W. Duff
President
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INSTITUTIONAL DAILY INCOME FUND
EXPENSE CHART
FOR THE SIX MONTHS ENDED SEPTEMBER 30, 2005
(UNAUDITED)
================================================================================
As a shareholder of the Fund, you incur the following ongoing costs: management
fees and other Fund expenses. You may also incur distribution and/or service
(12b-1) fees. This example is intended to help you understand your ongoing costs
(in dollars) of investing in the Fund and to compare these costs with the
ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the
period and held for the entire period April 1, 2005 through September 30, 2005.
ACTUAL EXPENSES
The first line of the table below provides information about actual account
values and actual expenses. You may use information in this line, together with
the amount you invested, to estimate the expenses that you paid over the period.
Simply divide your account value by $1,000 (for example, an $8,600 account value
divided by $1,000 = 8.6), then multiply the result by the number in the first
line under the heading entitled "Expenses Paid During the Period" to estimate
the expenses you paid on your account during this period.
HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES
The second line of the table below provides information about hypothetical
account values and hypothetical expenses based on the Fund's actual expense
ratio and an assumed rate of return of 5% per year before expenses, which is not
the Fund's actual return. The hypothetical account values and expenses may not
be used to estimate the actual ending account balance or expenses you paid for
the period. You may use this information to compare the ongoing costs of
investing in the Fund and other funds. To do so, compare this 5% hypothetical
example with the 5% hypothetical examples that appear in the shareholder reports
of the other funds.
Please note that the expenses shown in the table are meant to highlight your
ongoing costs only and do not reflect any transactional costs, such as sales
charges (loads), redemption fees, or exchange fees that you may incur in other
mutual funds. Therefore, the second line of the table is useful in comparing
ongoing costs only, and will not help you determine the relative total costs of
owning different funds.
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================================================================================
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Money Market Portfolio
- ----------------------------------------------------------------------------------------------------------------------
Beginning Account Value Ending Account Value Expenses Paid During the
Class A 04/1/05 09/30/05 Period*
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Actual $1,000.00 $1,014.00 $2.37
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Hypothetical (5% return before $1,000.00 $1,022.71 $2.38
expenses)
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- ----------------------------------------------------------------------------------------------------------------------
Beginning Account Value Ending Account Value Expenses Paid During the
Class B & Pinnacle Shares 04/1/05 09/30/05 Period*
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Actual $1,000.00 $1,015.30 $1.01
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Hypothetical (5% return before $1,000.00 $1,024.07 $1.01
expenses)
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U.S. Treasury Portfolio
- ----------------------------------------------------------------------------------------------------------------------
Beginning Account Value Ending Account Value Expenses Paid During the
Class A 04/1/05 09/30/05 Period*
- ----------------------------------------------------------------------------------------------------------------------
Actual $1,000.00 $1,013.50 $2.27
- ----------------------------------------------------------------------------------------------------------------------
Hypothetical (5% return before $1,000.00 $1,022.81 $2.28
expenses)
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- ----------------------------------------------------------------------------------------------------------------------
Beginning Account Value Ending Account Value Expenses Paid During the
Class B & Pinnacle Shares 04/1/05 09/30/05 Period*
- ----------------------------------------------------------------------------------------------------------------------
Actual $1,000.00 $1,014.80 $1.01
- ----------------------------------------------------------------------------------------------------------------------
Hypothetical (5% return before $1,000.00 $1,024.07 $1.01
expenses)
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<FN>
* Expenses are equal to the Fund's annualized expense ratios of 0.47%, 0.20%,
and 0.20%, for the Money Market Portfolio Class A, Class B, and Pinnacle
shares, respectively and 0.45%, 0.20%, and 0.20% for the U.S. Treasury
Portfolio Class A, Class B, and Pinnacle shares, respectively, multiplied
by the average account value over the period (April 1, 2005 through
September 30, 2005), multiplied by 183/365 (to reflect the most recent
fiscal half-year).
</FN>
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INSTITUTIONAL DAILY INCOME FUND
MONEY MARKET PORTFOLIO
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2005
(UNAUDITED)
================================================================================
Face Maturity Value
Amount Date Yield (Note 1)
------ ---- ----- ------
Asset Back Commercial Paper (30.98%)
- ------------------------------------------------------------------------------------------------------------------------------------
$ 20,000,000 Charta LLC 10/18/05 3.68% $ 19,965,433
10,000,000 Charta LLC 11/09/05 3.83 9,958,725
25,000,000 Clipper Receivables Corporation 10/03/05 3.85 24,994,653
15,000,000 Galaxy Funding Incorporated 10/14/05 3.55 14,980,933
20,000,000 Govco Incorporated 10/14/05 3.63 19,973,928
10,000,000 Greyhawk Funding 10/24/05 3.76 9,976,042
10,000,000 Greyhawk Funding 10/28/05 3.77 9,971,800
15,000,000 Lexington Parker Capital 10/17/05 3.76 14,975,000
15,000,000 Lexington Parker Capital 10/18/05 3.55 14,975,067
15,000,000 Lockhart Funding LLC 10/28/05 3.80 14,957,362
25,000,000 Market Street Funding 10/20/05 3.71 24,951,180
10,000,000 Scaldis Capital LLC 10/12/05 3.51 9,989,367
20,000,000 Windmill Funding Corporation 10/19/05 3.73 19,962,800
- ------------- -------------
210,000,000 Total Asset Back Commercial Paper 209,632,290
- ------------- -------------
Commercial Paper (4.43%)
- ------------------------------------------------------------------------------------------------------------------------------------
$ 30,000,000 Canadian Imperial Holdings Inc. 10/12/05 3.65% $ 29,966,633
- ------------- -------------
30,000,000 Total Commercial Paper 29,966,633
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Domestic Certificate of Deposit (4.43%)
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$ 15,000,000 Harris Trust & Savings Bank 02/02/06 3.81% $ 15,000,638
15,000,000 Wilmington Trust 11/03/05 3.72 15,000,132
- ------------- -------------
30,000,000 Total Domestic Certificate of Deposit 30,000,770
- ------------- -------------
Floating Rate Securities (3.70%)
- ------------------------------------------------------------------------------------------------------------------------------------
$ 10,000,000 Bank of America Prime Floater (a) 12/15/05 3.81% $ 10,000,000
5,000,000 Caterpillar Financial Services Corporation (b) 07/10/06 3.67 5,000,000
10,000,000 Merrill Lynch Extendible Monthly Securities (c) 11/15/06 3.75 10,000,000
- ------------- -------------
25,000,000 Total Floating Rate Securities 25,000,000
- ------------- -------------
Foreign Commercial Paper (8.84%)
- ------------------------------------------------------------------------------------------------------------------------------------
$ 5,000,000 Alliance & Leicester PLC 10/07/05 3.51% $ 4,997,104
20,000,000 Northern Rock PLC 10/12/05 3.50 19,978,795
10,000,000 Societe Generale North America 12/19/05 3.86 9,916,063
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The accompanying notes are an integral part of these financial statements.
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================================================================================
Face Maturity Value
Amount Date Yield (Note 1)
------ ---- ----- ------
Foreign Commercial Paper (Continued)
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$ 25,000,000 Yorkshire Building Society 11/07/05 3.71% $ 24,905,187
- ------------- -------------
60,000,000 Total Foreign Commercial Paper 59,797,149
- ------------- -------------
Letter of Credit Commercial Paper (1.18%)
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$ 8,000,000 Dean Health System Inc.
LOC Marshall & Ilsley 10/03/05 3.60% $ 7,998,409
- ------------- -------------
8,000,000 Total Letter of Credit Commercial Paper 7,998,409
- ------------- -------------
Loan Participation (2.96%)
- ------------------------------------------------------------------------------------------------------------------------------------
$ 15,000,000 AXA Equitable Life Insurance Company
with J.P. Morgan Chase (d) 03/21/06 3.83% $ 15,000,000
5,000,000 Mt. Vernon Phenol (General Electrics Co.) with
J.P. Morgan Chase (d) 05/19/06 3.81 5,000,000
- ------------- --------------
20,000,000 Total Loan Participation 20,000,000
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Other Notes (0.52%)
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$ 3,508,500 Ulster County, NY BAN - Series 2004B 11/18/05 3.25% $ 3,509,620
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3,508,500 Total Other Notes 3,509,620
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Repurchase Agreement (13.45%)
- ------------------------------------------------------------------------------------------------------------------------------------
$ 91,000,000 JP Morgan Securities Inc., purchased on 09/30/05, repurchase
proceeds at maturity $91,027,679 (Collateralized by
$138,611,923, GNMA, 4.125% to 7.500%, due 01/15/07 to 01/15/47,
value $92,822,010) 10/03/05 3.65% $ 91,000,000
- ------------- --------------
91,000,000 Total Repurchase Agreement 91,000,000
- ------------- --------------
Variable Rate Demand Instruments (e) (10.62%)
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$ 1,435,000 American Micro Products
LOC U.S. Bank, N.A. 10/01/08 3.91% $ 1,435,000
2,325,000 Atlas Metal Investment Corporation
LOC Fifth Third Bank 10/01/20 3.84 2,325,000
635,000 Automated Packaging Systems
LOC National City Bank of Michigan/Illinois 10/01/08 3.93 635,000
970,000 Big Brothers Big Sisters
LOC Fifth Third Bank 12/01/20 3.84 970,000
2,820,000 Briarwood Investments, LLC
Collateralized by Federal Home Loan Bank of Cincinnati 04/01/23 3.88 2,820,000
5,600,000 CFM International Inc. Guaranteed Notes - Series 1999A (f)
LOC General Electric Company 01/01/10 3.84 5,600,000
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The accompanying notes are an integral part of these financial statements.
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INSTITUTIONAL DAILY INCOME FUND
MONEY MARKET PORTFOLIO
SCHEDULE OF INVESTMENTS (CONTINUED)
SEPTEMBER 30, 2005
(UNAUDITED)
================================================================================
Face Maturity Value
Amount Date Yield (Note 1)
------ ---- ----- ------
Variable Rate Demand Instruments (e) (Continued)
- ------------------------------------------------------------------------------------------------------------------------------------
$ 1,400,000 CJ Krehbiel Co.
LOC Fifth Third Bank 10/01/10 3.84% $ 1,400,000
250,000 Colorado Springs, CO Adjustable Rate Taxable/Convertible Bonds
(Goodwill Industries Project) - Series 1997B
LOC Bank One 02/01/07 3.89 250,000
2,325,000 D.E.D.E. Realty
LOC Fifth Third Bank 12/01/11 3.84 2,325,000
2,105,000 Delta Capital LLC - Series 1996B
LOC Bank One 10/01/26 3.94 2,105,000
980,000 Dickenson Press, Inc. - Series 1997
LOC Huntington National Bank 01/01/27 3.94 980,000
2,370,000 Erie County, NY IDA RB (Niagara-Maryland LLC Project)
- Series 2003 LOC Manufacturers and Traders Trust Co. 06/01/23 3.92 2,370,000
2,885,000 Ewing Enterprise
LOC US Bank, N.A. 06/01/25 3.86 2,885,000
2,750,000 Fiore Capital LLC
LOC Marshall & Ilsley 08/01/45 3.84 2,750,000
1,105,000 First Metropolitan Title Company
LOC LaSalle National Bank subsidiary of ABN Amro Bank, N.A. 05/01/24 3.94 1,105,000
1,580,000 Frank J. Catanzaro Sons and Daughters
LOC U.S. Bank, N.A. 01/01/15 3.86 1,580,000
2,780,000 Governor's Village LLC
LOC Fifth Third Bank 03/01/20 3.84 2,780,000
1,365,000 Joe Holland Chevrolet
LOC Fifth Third Bank 07/01/24 3.84 1,365,000
210,000 JRB Corporation
LOC Old Kent Bank & Trust Co. 07/01/26 3.94 210,000
1,300,000 Kissel Holdings LLC
LOC U.S. Bank, N.A. 12/01/20 3.86 1,300,000
4,800,000 Lake Mary Bay Limited Partnership
LOC Amsouth Bank, N.A. 03/01/25 3.94 4,800,000
3,100,000 Landmark Church of Christ
LOC Columbus Bank & Trust Company 04/01/20 3.88 3,100,000
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The accompanying notes are an integral part of these financial statements.
- --------------------------------------------------------------------------------
================================================================================
Face Maturity Value
Amount Date Yield (Note 1)
------ ---- ----- ------
Variable Rate Demand Instruments (e) (Continued)
- ------------------------------------------------------------------------------------------------------------------------------------
$ 2,075,000 Lee County, FL HFA
Guaranteed by Federal National Mortgage Association 05/15/35 3.84% $ 2,075,000
1,900,000 Lauren Company, LLC - Series 2003
LOC Wells Fargo Bank, N.A. 07/01/33 3.88 1,900,000
490,000 LRV Enterprises, LLC
LOC National City Bank 09/01/21 4.00 490,000
1,200,000 Mayfair Village Retirement Center, Inc., KY
(Variable Rate Term Notes) - Series 1995
LOC PNC Bank, N.A. 05/15/09 3.84 1,200,000
3,650,000 Mississippi Business Finance Corporation IDRB
(ABT Co., Inc. Project) - Series 1997B
LOC Wachovia Bank, N.A. 04/01/22 3.91 3,650,000
730,000 Mississippi Business Finance Corporation IDRB
(Howard Industries Inc. Project)
LOC Amsouth Bank, N.A. 06/01/10 3.88 730,000
2,400,000 Mt. Carmel West Medical Office Building
LOC National City Bank 08/01/19 3.90 2,400,000
5,000,000 St. Johns County IDA
LOC Allied Irish Bank 08/01/34 3.84 5,000,000
1,600,000 Trendway Corporation
LOC Michigan National Bank 12/01/26 3.94 1,600,000
4,072,000 Washington State HFC Non-Profit Housing RB
(Rockwood Program) - Series B (g)
LOC Wells Fargo Bank, N.A. 01/01/30 3.87 4,072,000
2,010,000 Wholesome Group
LOC Fifth Third Bank 10/01/20 3.84 2,010,000
1,650,000 Wisconsin Housing Preservation Corporation
LOC Marshall & Ilsley 05/01/35 3.84 1,650,000
- ------------- --------------
71,867,000 Total Variable Rate Demand Instruments 71,867,000
- ------------- --------------
Yankee Certificate of Deposit (19.21%)
- ------------------------------------------------------------------------------------------------------------------------------------
$ 20,000,000 Banco Bilbao de Vizcaya 10/17/05 3.63% $ 20,000,044
10,000,000 Barclays Bank 11/08/05 3.70 10,000,000
20,000,000 Calyon 10/17/05 3.62 20,000,044
25,000,000 Credit Suisse First Boston 11/14/05 3.74 25,000,152
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The accompanying notes are an integral part of these financial statements.
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INSTITUTIONAL DAILY INCOME FUND
MONEY MARKET PORTFOLIO
SCHEDULE OF INVESTMENTS (CONTINUED)
SEPTEMBER 30, 2005
(UNAUDITED)
================================================================================
Face Maturity Value
Amount Date Yield (Note 1)
------ ---- ----- ------
Yankee Certificate of Deposit (Continued)
- ------------------------------------------------------------------------------------------------------------------------------------
$ 25,000,000 HSH Nordbank AG 10/27/05 3.80% $ 25,000,090
20,000,000 Societe Generale 11/28/05 3.80 20,000,000
10,000,000 Svenska Handelsbanken 10/12/05 3.61 10,000,015
- ------------- --------------
130,000,000 Total Yankee Certificate of Deposit 130,000,345
- ------------- --------------
Total Investments (100.32%) (cost $678,772,216+) 678,772,216
Liabilities in excess of cash and other assets, (-0.32%) (2,188,924)
--------------
Net Assets (100.00%) $ 676,583,292
==============
<FN>
+ Aggregate cost for federal income tax purposes is identical.
</FN>
FOOTNOTES:
(a) The interest rate is adjusted daily based upon Prime minus 2.935%.
(b) The interest rate is adjusted quarterly based upon three month LIBOR plus
0.12%.
(c) The interest is adjusted monthly based upon one month LIBOR minus 0.02%.
(d) Loan participation agreement with the interest rate adjusted monthly based
upon one month LIBOR plus 0.02%.
(e) Securities payable on demand at par including accrued interest (with seven
days' notice). Interest rate is adjusted weekly.
(f) The interest rate is adjusted weekly based upon average of prior week one
month LIBOR plus 0.05%; weekly put at par.
(g) Securities payable on demand at par including accrued interest (with one day
notice). Interest rate is adjusted daily.
KEY:
BAN = Bond Anticipation Note IDA = Industrial Development Authority
GNMA = Government National Mortgage Association IDRB = Industrial Development Revenue Bond
GO = General Obligation LOC = Letter of Credit
HFA = Housing Finance Authority RB = Revenue Bond
HFC = Housing Finance Commission
- --------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
- --------------------------------------------------------------------------------
INSTITUTIONAL DAILY INCOME FUND
MONEY MARKET PORTFOLIO
BREAKDOWN OF PORTFOLIO HOLDINGS
SEPTEMBER 30, 2005
(UNAUDITED)
================================================================================
BREAKDOWN OF PORTFOLIO HOLDINGS BY MATURITY
- ----------------------------------------------------------------------------------
Securities Maturing in Value % of Portfolio
- ----------------------------------------------------------------------------------
Less than 31 Days $ 555,482,338 81.84%
31 through 60 Days 108,373,815 15.96
61 through 90 Days 14,916,063 2.20
91 through 120 Days -- 0.00
121 through 180 Days -- 0.00
Over 180 Days -- 0.00
- ----------------------------------------------------------------------------------
Total $ 678,772,216 100.00%
- ----------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
- --------------------------------------------------------------------------------
INSTITUTIONAL DAILY INCOME FUND
U.S. TREASURY PORTFOLIO
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2005
(UNAUDITED)
================================================================================
Face Maturity Value
Amount Date Yield (Note 1)
------ ---- ----- ------
Repurchase Agreements (49.26%)
- ------------------------------------------------------------------------------------------------------------------------------------
$ 83,000,000 Bank of America, purchased on 09/30/05, repurchase proceeds at
maturity $83,022,479 (Collateralized by $82,902,000,
U.S. Treasury Note, 4.625%, due 05/15/06, value $84,660,662) 10/03/05 3.25% $ 83,000,000
150,000,000 Bear, Stearns & Co., purchased on 09/30/05, repurchase proceeds at
maturity $150,047,250 (Collateralized by $243,138,020, GNMA 4.000%
to 8.500%, due 03/15/18 to 07/20/34, value $153,000,842) 10/03/05 3.78 150,000,000
84,000,000 JP Morgan Securities, Inc., purchased on 09/30/05, repurchase
proceeds at maturity $84,022,400 (Collateralized by $85,550,000,
U.S. Treasury Note, 4.000%, due 11/15/12, value $85,680,039) 10/03/05 3.20 84,000,000
75,000,000 UBS Paine Webber, purchased on 09/30/05, repurchase proceeds at
maturity $75,020,938 (Collateralized by $196,184,000,TPRX,
6.500% to 7.500%, due 11/15/24 to 11/15/26, value $76,501,825) 10/03/05 3.35 75,000,000
- ------------- --------------
392,000,000 Total Repurchase Agreements 392,000,000
- ------------- --------------
U.S. Government Obligations (50.69%)
- ------------------------------------------------------------------------------------------------------------------------------------
$ 284,025,000 U.S. Treasury Bill 10/06/05 2.50% $ 283,926,380
30,000,000 U.S. Treasury Bill 10/13/05 3.11 29,969,400
30,000,000 U.S. Treasury Bill 11/03/05 3.13 29,915,025
20,000,000 U.S. Treasury Note, 1.625% 02/28/06 3.03 19,887,030
40,000,000 U.S. Treasury Note, 1.625% 02/28/06 3.77 39,651,324
- ------------- --------------
404,025,000 Total U.S. Government Obligations 403,349,159
- ------------- --------------
Total Investments (99.95%) (cost $795,349,159+) 795,349,159
Cash and other assets, net of liabilities (0.05%) 381,668
--------------
Net Assets (100.00%) $ 795,730,827
==============
<FN>
+ Aggregate cost for federal income tax purposes is identical.
</FN>
KEY:
GNMA = Government National Mortgage Association TPRX = U.S. Treasury Principal Strip
- --------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
- --------------------------------------------------------------------------------
INSTITUTIONAL DAILY INCOME FUND
U.S TREASURY PORTFOLIO
BREAKDOWN OF PORTFOLIO HOLDINGS
SEPTEMBER 30, 2005
(UNAUDITED)
================================================================================
BREAKDOWN OF PORTFOLIO HOLDINGS BY MATURITY
- ----------------------------------------------------------------------------------
Securities Maturing in Value % of Portfolio
- ----------------------------------------------------------------------------------
Less than 31 Days $ 705,895,780 88.75%
31 through 60 Days 29,915,025 3.76
61 through 90 Days -- 0.00
91 through 120 Days -- 0.00
121 through 180 Days 59,538,354 7.49
Over 180 Days -- 0.00
- ----------------------------------------------------------------------------------
Total $ 759,349,159 100.00%
- ----------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
- --------------------------------------------------------------------------------
INSTITUTIONAL DAILY INCOME FUND
STATEMENT OF ASSETS AND LIABILITIES
SEPTEMBER 30, 2005
(UNAUDITED)
================================================================================
Money Market U.S. Treasury
Portfolio Portfolio
ASSETS
Investments in securities, at amortized cost (Note 1)........ $ 587,772,216 $ 403,349,159
Repurchase agreements........................................ 91,000,000 392,000,000
Cash ........................................................ -0- 1,277,509
Accrued interest receivable.................................. 986,375 121,183
Prepaid expenses............................................. 19,893 34,462
Other receivables............................................ 5,181 3,089
--------------- ---------------
Total assets.......................................... 679,783,665 796,785,402
--------------- ---------------
LIABILITIES
Payable to affiliates*....................................... 2,953 17,655
Due to custodian............................................. 2,641,771 -0-
Accrued expenses............................................. 206,456 56,602
Dividends payable............................................ 349,193 980,318
--------------- ---------------
Total liabilities...................................... 3,200,373 1,054,575
--------------- ---------------
Net assets................................................... $ 676,583,292 $ 795,730,827
=============== ===============
SOURCE OF NET ASSETS
Net capital paid in on shares of capital stock (Note 3)...... $ 676,583,509 $ 795,731,034
Accumulated net realized loss................................ (217) (207)
--------------- ---------------
Net assets................................................... $ 676,583,292 $ 795,730,827
=============== ===============
Net asset value, per share (Note 3):
Money Market Portfolio:
Class A shares, ($187,977,141 applicable to 187,977,201 shares outstanding) $ 1.00
==========
Class B shares, ($379,498,081 applicable to 379,498,203 shares outstanding) $ 1.00
==========
Pinnacle shares, ($109,108,070 applicable to 109,108,105 shares outstanding) $ 1.00
==========
U.S. Government Portfolio:
Class A shares, ($246,774,901 applicable to 246,774,965 shares outstanding) $ 1.00
==========
Class B shares, ($514,627,654 applicable to 514,627,788 shares outstanding) $ 1.00
==========
Pinnacle shares, ($34,328,272 applicable to 34,328,281 shares outstanding) $ 1.00
==========
<FN>
* Includes fees payable to Reich & Tang Asset Management, LLC, Reich & Tang
Distributors, Inc. and Reich & Tang Services, Inc.
</FN>
- --------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
- --------------------------------------------------------------------------------
INSTITUTIONAL DAILY INCOME FUND
STATEMENTS OF OPERATIONS
SIX MONTHS ENDED SEPTEMBER 30, 2005
(UNAUDITED)
================================================================================
Money Market U.S. Treasury
Portfolio Portfolio
INVESTMENT INCOME
Income:
Interest................................................... $ 8,813,704 $ 12,248,632
--------------- ---------------
Expenses: (Note 2)
Investment management fee.................................. 322,755 470,148
Administration fee......................................... 134,481 195,895
Shareholder servicing fee (Class A shares)................. 182,065 345,511
Custodian expenses......................................... 17,482 18,870
Shareholder servicing and related shareholder expenses+.... 105,665 94,598
Legal, compliance and filing fees.......................... 148,885 88,970
Audit and accounting....................................... 79,847 58,853
Trustees' fees and expenses................................ 9,020 7,519
Other...................................................... 12,082 18,229
--------------- --------------
Total expenses.......................................... 1,012,282 1,298,593
Less: Fees waived (Note 2)............................. (268,829) (156,716)
Expense paid indirectly (Note 2)................. (8,897) (12,786)
--------------- --------------
Net expenses............................................ 734,556 1,129,091
--------------- --------------
Net investment income.......................................... 8,079,148 11,119,541
REALIZED GAIN (LOSS) ON INVESTMENTS
Net realized loss on investments............................... -0- 914
--------------- --------------
Increase in net assets from operations......................... $ 8,079,148 $ 11,120,455
=============== ==============
<FN>
+ Includes class specific transfer agency expenses of $14,565 for Money Market
Portfolio Class A and $27,641, $46,971 and $3,746 for U.S. Treasury Portfolio
Class A, Class B and Pinnacle Shares, respectively.
</FN>
- --------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
- --------------------------------------------------------------------------------
INSTITUTIONAL DAILY INCOME FUND
STATEMENTS OF CHANGES IN NET ASSETS
================================================================================
Money Market Portfolio U.S. Treasury Portfolio
---------------------------------- ---------------------------------
Six Months Ended Year Six Months Ended Year
September 30, 2005 Ended September 30, 2005 Ended
(Unaudited) March 31, 2005 (Unaudited) March 31, 2005
--------- -------------- --------- --------------
INCREASE (DECREASE)
IN NET ASSETS
Operations:
Net investment income....................... $ 8,079,148 $ 5,815,811 $ 11,119,541 $ 10,218,410
Net realized gain (loss) on investments..... -0- (59) 914 (1,121)
------------- -------------- ------------- -------------
Increase in net assets from operations...... 8,079,148 5,815,752 11,120,455 10,217,289
Dividends to shareholders from net investment income:
Class A shares........................... (2,034,530) (987,750) (3,693,259) (2,785,634)
Class B shares........................... (4,296,320) (2,915,564) (6,880,833) (6,873,383)
Pinnacle shares.......................... (1,748,298) (1,912,497) (545,449) (559,393)
Capital share transactions (Note 3):
Class A shares........................... 67,988,601 66,615,672 10,153,545 (25,309,323)
Class B shares........................... 164,184,121 51,484,724 31,193,056 17,393,717
Pinnacle shares.......................... (5,684,352) (8,046,389) (5,481,264) 10,557,265
------------- -------------- ------------- -------------
Total increase(decrease)................ 226,488,370 110,053,948 35,866,251 2,640,538
Net assets:
Beginning of period...................... 450,094,922 340,040,974 759,864,576 757,224,038
------------- -------------- ------------- -------------
End of period............................ $ 676,583,292 $ 450,094,922 $ 795,730,827 $ 759,864,576
============= ============== ============= =============
Undistributed net investment income......... $ -0- $ -0- $ -0- $ -0-
============= ============== ============= =============
- --------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
- --------------------------------------------------------------------------------
INSTITUTIONAL DAILY INCOME FUND
NOTES TO FINANCIAL STATEMENTS
(UNAUDITED)
================================================================================
1. Summary of Accounting Policies
Institutional Daily Income Fund (the "Fund") is a no-load, diversified, open-end
management investment company registered under the Investment Company Act of
1940. The Fund has authorized the creation of three managed portfolios of money
market instruments: U.S. Treasury Portfolio, Money Market Portfolio and
Municipal Portfolio. Presently only the Money Market Portfolio and U.S. Treasury
Portfolio have been activated. The Money Market and U.S. Treasury Portfolios
each have three classes of stock authorized, Class A, Class B and Pinnacle
shares. The Class A shares of each Portfolio are subject to a service fee
pursuant to each Portfolio's distribution and service plan. The Class B and
Pinnacle shares are not subject to a service fee. Additionally, each Portfolio
may allocate among its classes certain expenses, to the extent allowable to
specific classes, including transfer agent fees, government registration fees,
certain printing and postage costs, and administrative and legal expenses. Class
specific expenses of the Fund were limited to shareholder servicing fees and
transfer agent expenses. Income, expenses (other than expenses attributable to a
specific class), and realized and unrealized gains and losses on investments are
allocated to each class of shares based on its relative net assets. In all other
respects, all share classes represent the same interest in the income and assets
of each respective Portfolio. 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 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) Repurchase Agreements -
In connection with transactions in repurchase agreements, it is the Fund's
policy that its custodian take possession of the underlying collateral
securities, the fair value of which exceeds the principal amount of the
repurchase transaction, including accrued interest, at all times. If the
seller defaults, and the fair market value of the collateral declines,
realization of the collateral by the Fund may be delayed or limited.
c) Federal Income Taxes -
It is the policy of each Portfolio to comply with the requirements of the
Internal Revenue Code applicable to regulated investment companies and to
distribute all of its taxable income to its shareholders. Therefore, no
provision for federal income tax is required.
d) Dividends and Distributions -
Dividends from investment income (including net realized short-term capital
gains) are declared daily, paid monthly and taxable as ordinary income.
Capital gains distributions if any, will be made at least annually and in
no event later than sixty days after the end of the Fund's fiscal year.
e) 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.
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
INSTITUTIONAL DAILY INCOME FUND
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
(UNAUDITED)
================================================================================
1. Summary of Accounting Policies (Continued)
f) General -
Securities transactions are recorded on a trade date basis. Interest
income, including accretion of discount and amortization of premium, is
accrued as earned. Realized gains and losses from securities transactions
are recorded on the identified cost basis.
2. Investment Management Fees and Other Transactions with Affiliates
Under the Investment Management Contract, each Portfolio pays an investment
management fee to Reich & Tang Asset Management, LLC (the "Manager") at the
annual rate of .12% of the Portfolio's average daily net assets.
Pursuant to an Administrative Services Contract each Portfolio pays to the
Manager an annual fee of .05% of the Portfolio's average daily net assets.
Pursuant to a Distribution and Service Plan adopted under Securities and
Exchange Commission Rule 12b-1, the Fund and Reich & Tang Distributors, Inc.
(the "Distributor"), an affiliate of the Manager, have entered into a
Distribution Agreement and a Shareholder Servicing Agreement (with respect to
the Class A shares of the Fund only). For its services under the Shareholder
Servicing Agreement, the Distributor receives from each Portfolio a service fee
equal to .25% per annum of each Portfolio's average daily net assets with
respect only to the Class A shares.
For the period ended September 30, 2005, the following fees were voluntarily
waived by the Manager and shareholder servicing agent:
Money Market Portfolio U.S. Treasury Portfolio
---------------------- -----------------------
Investment management fees $ 107,585 $ -0-
Administration fees 107,585 156,716
Transfer agency fees - Class A 14,527 -0-
Transfer agency fees - Class B 39,132 -0-
------------ --------------
Total $ 268,829 $ 156,716
============ ==============
The Manager and shareholder servicing agent have no right to recoup prior fee
waivers.
Fees are paid to Trustees who are unaffiliated with the Manager on the basis of
$5,000 per annum plus $1,200 per meeting attended (there are five scheduled
Board Meetings each year). In addition, the Audit Committee Chairman receives an
aggregate payment of $1,000 per quarter allocated among the funds of the Reich &
Tang Complex on whose Audit Committee he serves and each member of the Audit
Committee will receive an aggregate payment of $750 per Audit Committee meeting
attended allocated among the funds of the Reich & Tang Complex.
Included in the Statements of Operations under the caption "Shareholder
servicing and related shareholder expenses" are fees of $78,153 for the U.S
Treasury Portfolio paid to Reich & Tang Services, Inc., an affiliate of the
Manager, as shareholder servicing agent for the Fund. Pursuant to the Transfer
Agency Agreement, the Transfer Agent receives a fee of $17.40 per account per
year or a minimum of 0.02% of the monthly average net assets of the Class A and
B shares of the Fund. For the period ended September 30, 2005 these fees
amounted to an annual rate of 0.02% of the monthly average net assets of the
Class A and B shares of the Fund.
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
================================================================================
2. Investment Management Fees and Other Transactions with Affiliates (continued)
For the period ended September 30, 2005, the breakdown of expenses paid
indirectly by the Fund were as follows:
Money Market Portfolio U.S. Treasury Portfolio
Custodian expenses $ 8,598 $ 12,526
Shareholder servicing
and related shareholder expenses 299 260
----------- ------------
Total $ 8,897 $ 12,786
=========== ============
3. Transactions in Shares of Beneficial Interest
At September 30, 2005, an unlimited number of shares of beneficial interest
($0.001 par value) were authorized. Transactions, all at $1.00 per share, were
as follows:
Money Market Portfolio U.S. Treasury Portfolio
---------------------------------- ---------------------------------
Six Months Ended Year Six Months Ended Year
September 30, 2005 Ended September 30, 2005 Ended
(Unaudited) March 31, 2005 (Unaudited) March 31, 2005
--------- -------------- --------- --------------
Class A shares
- --------------
Sold...................................... 906,702,849 911,145,861 514,099,574 938,506,250
Issued on reinvestment of dividends. 1,901,646 916,026 1,721,452 913,366
Redeemed.................................. (840,615,894) (845,446,215) (505,667,481) (964,728,939)
-------------- -------------- -------------- --------------
Net increase (decrease)................... 67,988,601 66,615,672 10,153,545 (25,309,323)
============== ============== ============== ==============
Class B shares
- --------------
Sold...................................... 1,040,734,409 1,297,610,795 1,013,717,065 1,489,030,576
Issued on reinvestment of dividends....... 4,190,140 2,764,393 1,213,809 981,169
Redeemed.................................. (880,740,428) (1,248,890,464) (983,737,818) (1,472,618,028)
-------------- -------------- -------------- --------------
Net increase (decrease)................... 164,184,121 51,484,724 31,193,056 17,393,717
============== ============== ============== ==============
Pinnacle shares
- ---------------
Sold...................................... 94,176,259 94,179,403 20,604,900 62,221,333
Issued on reinvestment of dividends....... 1,769,366 1,912,377 550,859 559,350
Redeemed.................................. (101,629,977) (104,138,169) (26,637,023) (52,223,418)
-------------- -------------- -------------- --------------
Net increase (decrease)................... (5,684,352) (8,046,389) (5,481,264) 10,557,265
============== ============== ============== ==============
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
INSTITUTIONAL DAILY INCOME FUND
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
(UNAUDITED)
================================================================================
4. Tax Information
The tax character of all distributions paid by the Portfolios during the years
ended March 31, 2005 and 2004 was ordinary income.
At March 31 2005, the Money Market Portfolio had unused capital loss carry
forwards of $151, available for Federal income tax purposes to be applied
against future gains, if any. If not applied against future gains, the entire
amount will expire in the year 2012.
During the year ended March 31, 2005, the Money Market Portfolio utilized
capital loss carryforwards of $7.
During the year ended March 31, 2005, as permitted under Federal income tax
regulation, the Money Market Portfolio elected to defer $66 of post-October net
capital losses to the next taxable year.
At March 31, 2005, the U.S. Treasury Portfolio had unused capital loss
carryforwards of $1,121, available for Federal income tax purposes to be applied
against future gains, if any. If not applied against future gains, $1,121 will
expire in the year 2013.
At March 31, 2005, there were no distributable earnings for the Money Market
Portfolio and U.S. Treasury Portfolio.
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
================================================================================
5. Financial Highlights
Money Market Portfolio
-------------------------------------------------------------------------------
Six Months Ended
Class A shares September 30, 2005 For the Year Ended March 31,
- -------------- (Unaudited) --------------------------------------------------------------
--------- 2005 2004 2003 2002 2001
---------- ---------- ---------- ---------- ----------
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..................... 0.014 0.013 0.007 0.013 0.028 0.060
Net realized and unrealized gain(loss)
on investments.......................... -- 0.000 0.000 0.000 0.000 0.000
--------- ---------- ---------- ---------- ---------- ----------
Total from investment operations.......... 0.014 0.013 0.007 0.013 0.028 0.060
Less distributions from:
Dividends from net investment income...... (0.014) (0.013) (0.007) (0.013) (0.028) (0.060)
Net realized gain on investments.......... -- (0.000) (0.000) (0.000) (0.000) (0.000)
--------- ---------- ---------- ---------- ---------- ----------
Total Distributions....................... (0.014) (0.013) (0.007) (0.013) (0.028) (0.060)
--------- ---------- ---------- ---------- ---------- ----------
Net asset value, end of period.............. $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
========= ========== ========== ========== ========== ==========
Total Return................................ 1.40%(a) 1.34% 0.73% 1.33% 2.85% 6.16%
Ratios/Supplemental Data
Net assets, end of period (000's)........... $ 187,977 $ 119,989 $ 53,373 $ 114,337 $ 67,459 $1,101,858
Ratios to average net assets:
Expenses (net of fees waived) (b)......... 0.47%(c) 0.47% 0.47% 0.47% 0.45% 0.45%
Net investment income..................... 2.79%(c) 1.49% 0.73% 1.32% 3.39% 5.96%
Management and administration fees waived. 0.08%(c) 0.08% 0.06% 0.06% 0.02% 0.02%
Shareholder servicing fees waived......... 0.02%(c) 0.02% 0.02% 0.00% 0.00% 0.00%
Expenses paid indirectly.................. 0.00%(c) 0.00% 0.00% 0.00% 0.00% 0.00%
(a) Not annualized
(b) Includes expenses paid indirectly
(c) Annualized
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
INSTITUTIONAL DAILY INCOME FUND
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
(UNAUDITED)
================================================================================
5. Financial Highlights (Continued)
Money Market Portfolio
-------------------------------------------------------------------------------
Six Months Ended
Class B shares September 30, 2005 For the Year Ended March 31,
- -------------- (Unaudited) --------------------------------------------------------------
--------- 2005 2004 2003 2002 2001
---------- ---------- ---------- ---------- ----------
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..................... 0.015 0.016 0.010 0.016 0.031 0.062
Net realized and unrealized gain(loss)
on investments.......................... -- 0.000 0.000 0.000 0.000 0.000
--------- ---------- ---------- ---------- ---------- ----------
Total from investment operations.......... 0.015 0.016 0.010 0.016 0.031 0.062
Less distributions from:
Dividends from net investment income...... (0.015) (0.016) (0.010) (0.016) (0.031) (0.062)
Net realized gain on investments.......... -- (0.000) (0.000) (0.000) (0.000) (0.000)
--------- ---------- ---------- ---------- ---------- ----------
Total Distributions....................... (0.015) (0.016) (0.010) (0.016) (0.031) (0.062)
--------- ---------- ---------- ---------- ---------- ----------
Net asset value, end of period.............. $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
========= ========== ========== ========== ========== ==========
Total Return................................ 1.54%(a) 1.61% 1.00% 1.61% 3.12% 6.42%
Ratios/Supplemental Data
Net assets, end of period (000's)........... $ 379,498 $ 215,134 $ 163,829 $132,837 $ 123,267 $ 211,725
Ratios to average net assets:
Expenses (net of fees waived) (b)......... 0.20%(c) 0.20% 0.20% 0.20% 0.20% 0.20%
Net investment income..................... 3.08%(c) 1.63% 0.99% 1.60% 3.15% 6.20%
Management and administration fees waived. 0.08%(c) 0.08% 0.06% 0.06% 0.02% 0.02%
Shareholder servicing fees waived......... 0.02%(c) 0.02% 0.02% 0.02% 0.01% 0.00%
Expenses paid indirectly.................. 0.00%(c) 0.00% 0.00% 0.00% 0.00% 0.00%
(a) Not Annualized
(b) Includes expenses paid indirectly
(c) Annualized
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
================================================================================
5. Financial Highlights (Continued)
Money Market Portfolio
-------------------------------------------------------------------------------
Six Months Ended
Pinnacle shares September 30, 2005 For the Year Ended March 31,
- -------------- (Unaudited) --------------------------------------------------------------
--------- 2005 2004 2003 2002 2001
---------- ---------- ---------- ---------- ----------
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........................ 0.015 0.016 0.010 0.016 0.031 0.062
Net realized and unrealized gain(loss)
on investments............................. -- 0.000 0.000 0.000 0.000 0.000
--------- ---------- ---------- ---------- ---------- ----------
Total from investment operations............. 0.015 0.016 0.010 0.016 0.031 0.062
Less distributions from:
Dividends from net investment income......... (0.015) (0.016) (0.010) (0.016) (0.031) (0.062)
Net realized gain on investments............. -- -- -- (0.000) (0.000) (0.000)
--------- ---------- ---------- ---------- ---------- ----------
Total Distributions.......................... (0.015) (0.016) (0.010) (0.016) (0.031) (0.062)
--------- ---------- ---------- ---------- ---------- ----------
Net asset value, end of period................. $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
========= ========== ========== ========== ========== ==========
Total Return................................... 1.54%(a) 1.61% 1.00% 1.61% 3.12% 6.42%
Ratios/Supplemental Data
Net assets, end of period (000's).............. $ 109,108 $ 114,792 $ 122,839 $ 130,135 $ 153,182 $ 128,777
Ratios to average net assets:
Expenses (net of fees waived) (b)............ 0.20%(c) 0.20% 0.20% 0.20% 0.20% 0.20%
Net investment income........................ 3.08%(c) 1.63% 0.99% 1.60% 3.15% 6.20%
Management and administration fees waived.... 0.08%(c) 0.08% 0.06% 0.06% 0.02% 0.02%
Expenses paid indirectly..................... 0.00%(c) 0.00% 0.00% 0.00% 0.00% 0.00%
(a) Not Annualized
(b) Includes expenses paid indirectly
(c) Annualized
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
INSTITUTIONAL DAILY INCOME FUND
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
(UNAUDITED)
================================================================================
5. Financial Highlights (Continued)
U.S. Treasury Portfolio
-------------------------------------------------------------------------------
Six Months Ended
Class A shares September 30, 2005 For the Year Ended March 31,
- -------------- (Unaudited) --------------------------------------------------------------
--------- 2005 2004 2003 2002 2001
---------- ---------- ---------- ---------- ----------
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..................... 0.013 0.012 0.007 0.013 0.028 0.057
Net realized and unrealized gain(loss)
on investments.......................... 0.000 0.000 0.000 -- -- 0.000
--------- ---------- ---------- ---------- ---------- ----------
Total from investment operations.......... 0.013 0.012 0.007 0.013 0.028 0.057
Less distributions from:
Dividends from net investment income...... (0.013) (0.012) (0.007) (0.013) (0.028) (0.057)
Net realized gain on investments.......... (0.000) (0.000) (0.000) -- -- (0.000)
--------- ---------- ---------- ---------- ---------- ----------
Total Distributions....................... (0.013) (0.012) (0.007) (0.013) (0.028) (0.057)
--------- ---------- ---------- ---------- ---------- ----------
Net asset value, end of period.............. $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
========= ========== ========== ========== ========== ==========
Total Return................................ 1.35%(a) 1.19% 0.66% 1.28% 2.86% 5.88%
Ratios/Supplemental Data
Net assets, end of period (000's)........... $ 246,775 $ 236,621 $ 261,931 $ 276,174 $ 253,948 $ 579,869
Ratios to average net assets:
Expenses (net of fees waived) (b)......... 0.45% 0.45% 0.45% 0.45% 0.45% 0.46%
Net investment income..................... 2.67% 1.18% 0.66% 1.28% 3.12% 5.68%
Management and administration fees waived. 0.04% 0.03% 0.04% 0.03% 0.02% 0.02%
Expenses paid indirectly.................. 0.00% 0.00% 0.00% 0.00% 0.00% 0.01%
(a) Not annualized
(b) Includes expenses paid indirectly
(c) Annualized
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
================================================================================
5. Financial Highlights (Continued)
U.S. Treasury Portfolio
-------------------------------------------------------------------------------
Six Months Ended
Class B shares September 30, 2005 For the Year Ended March 31,
- -------------- (Unaudited) --------------------------------------------------------------
--------- 2005 2004 2003 2002 2001
---------- ---------- ---------- ---------- ----------
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..................... 0.015 0.014 0.009 0.015 0.031 0.060
Net realized and unrealized gain(loss)
on investments.......................... 0.000 0.000 0.000 -- -- 0.000
--------- ---------- ---------- ---------- ---------- ----------
Total from investment operations.......... 0.015 0.014 0.009 0.015 0.031 0.060
Less distributions from:
Dividends from net investment income...... (0.015) (0.014) (0.009) (0.015) (0.031) (0.060)
Net realized gain on investments.......... (0.000) (0.000) (0.000) -- -- (0.000)
--------- ---------- ---------- ---------- ---------- ----------
Total Distributions....................... (0.015) (0.014) (0.009) (0.015) (0.031) (0.060)
--------- ---------- ---------- ---------- ---------- ----------
Net asset value, end of period.............. $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
========= ========== ========== ========== ========== ==========
Total Return................................ 1.48%(a) 1.44% 0.91% 1.53% 3.12% 6.14%
Ratios/Supplemental Data
Net assets, end of period (000's)........... $ 514,628 $ 484,434 $ 466,041 $ 383,677 $ 348,701 $ 151,356
Ratios to average net assets:
Expenses (net of fees waived) (b)......... 0.20% 0.20% 0.20% 0.20% 0.20% 0.21%
Net investment income..................... 2.93% 1.45% 0.90% 1.51% 2.66% 5.89%
Management and administration fees waived. 0.04% 0.03% 0.04% 0.03% 0.02% 0.02%
Expenses paid indirectly.................. 0.00% 0.00% 0.00% 0.00% 0.00% 0.01%
(a) Not annualized
(b) Includes expenses paid indirectly
(c) Annualized
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
INSTITUTIONAL DAILY INCOME FUND
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
(UNAUDITED)
================================================================================
6. Financial Highlights (continued)
U.S. Treasury Portfolio
-------------------------------------------------------------------------------
Six Months Ended
Pinnacle shares September 30, 2005 For the Year Ended March 31,
- --------------- (Unaudited) --------------------------------------------------------------
--------- 2005 2004 2003 2002 2001
---------- ---------- ---------- ---------- ----------
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........................ 0.015 0.014 0.009 0.015 0.031 0.060
Net realized and unrealized gain(loss)
on investments............................. 0.000 0.000 0.000 -- -- 0.000
--------- ---------- ---------- ---------- ---------- ----------
Total from investment operations............. 0.015 0.014 0.009 0.015 0.031 0.060
Less distributions from:
Dividends from net investment income......... (0.015) (0.014) (0.009) (0.015) (0.031) (0.060)
Net realized gain on investments............. (0.000) (0.000) (0.000) -- -- (0.000)
--------- ---------- ---------- ---------- ---------- ----------
Total Distributions.......................... (0.015) (0.014) (0.009) (0.015) (0.031) (0.060)
--------- ---------- ---------- ---------- ---------- ----------
Net asset value, end of period................. $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
========= ========== ========== ========== ========== ==========
Total Return................................... 1.48%(a) 1.44% 0.91% 1.53% 3.12% 6.14%
Ratios/Supplemental Data
Net assets, end of period (000's).............. $ 34,328 $ 39,809 $ 29,252 $ 29,526 $ 17,871 $ 20,724
Ratios to average net assets:
Expenses (net of fees waived) (b)............ 0.20% 0.20% 0.20% 0.20% 0.20% 0.21%
Net investment income........................ 2.93% 1.45% 0.90% 1.51% 2.66% 5.89%
Management and administration fees waived.... 0.04% 0.03% 0.04% 0.03% 0.02% 0.02%
Expenses paid indirectly..................... 0.00% 0.00% 0.00% 0.00% 0.00% 0.01%
(a) Not annualized
(b) Includes expenses paid indirectly
(c) Annualized
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
INSTITUTIONAL DAILY INCOME FUND
ADDITIONAL INFORMATION
(UNAUDITED)
================================================================================
ADDITIONAL INFORMATION ABOUT PORTFOLIO HOLDINGS
The Fund is required to file its complete schedule of portfolio holdings with
the Securities and Exchange Commission ("SEC") on Form N-Q for its first and
third fiscal quarters. The Fund's Form N-Q is available without charge on the
SEC's website (http://www.sec.gov) or by calling the Fund toll free at (800)
433-1918. You can also obtain copies of the Fund's Form N-Q by visiting the
SEC's Public Reference Room in Washington, DC (please call the SEC at (800)
732-0330 for information on the operation of the Public Reference Room).
INFORMATION ABOUT PROXY VOTING
Information regarding the Fund's proxy voting record for the 12 month period
ending June 30 of each year is filed with the SEC on Form N-PX no later than
August 31 of each year. The Fund's Form N-PX is available without charge, upon
request, by calling the Fund at (800) 433-1918 and on the SEC's website
(http//www.sec.gov). The Fund does not presently invest in voting securities and
has therefore not adopted proxy voting policies and procedures.
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
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.
- --------------------------------------------------------------------------------
Institutional Daily Income Fund
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
101 Barclay Street, 13th Floor
New York, New York 10286
Transfer Agent &
Dividend Disbursing Agent
Reich & Tang Services, Inc.
600 Fifth Avenue
New York, New York 10020
IDI9/05S
INSTITUTIONAL
DAILY
INCOME FUND
Semi-Annual Report
September 30, 2005
(Unaudited)
ITEM 2: CODE OF ETHICS
Not Applicable (disclosure required in annual report on N-CSR only).
ITEM 3: AUDIT COMMITTEE FINANCIAL EXPERT
Not Applicable (disclosure required in annual report on N-CSR only).
ITEM 4: PRINCIPAL ACCOUNTANT FEES AND SERVICES
Not Applicable (disclosure required in annual report on N-CSR only).
ITEM 5: AUDIT COMMITTEE OF LISTED REGISTRANTS
Not applicable.
ITEM 6: SCHEDULE OF INVESTMENTS
Schedule of Investments in securities of unaffiliated issuers is included under
Item 1.
ITEM 7: DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES
Not applicable.
ITEM 8: PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT
COMPANY AND AFFILIATED PURCHASERS
Not applicable.
ITEM 9: SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
There were no material changes to the procedures by which shareholders may
recommend nominees to the registrant's board of directors that were implemented
after the registrant last provided disclosure in response to the requirements of
Item 7(d)(2)(ii)(G) of Schedule 14A, or this Item 9.
ITEM 10: CONTROLS AND PROCEDURES
(a) The registrant's Principal Executive Officer and Principal Financial
Officer have evaluated the design and operation of the registrant's
disclosure controls and procedures within 90 days of this filing and
have concluded that the registrant's disclosure controls and procedures
were effective in ensuring that information required to be disclosed by
the registrant in this Form N-CSR was recorded, processed, summarized
and reported on a timely basis.
(b) There were no changes in the registrant's internal controls over
financial reporting that occurred during the second fiscal quarter of
the period covered by this report that have materially affected, or are
reasonably likely to affect, the registrant's internal controls over
financial reporting.
ITEM 11: EXHIBITS
(a)(1) Not applicable (disclosure required in annual report on N-CSR only).
(a)(2) Certifications of Principal Executive Officer and Principal Financial
Officer, under Rule 30a-2 of the Investment Company Act of 1940.
(a)(3) Not applicable.
(b) Certifications of Principal Executive Officer and Principal Financial
Officer, under Section 906 of the Sarbanes-Oxley Act of 2002 and 18
U.S.C. 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) Institutional Daily Income Fund
By (Signature and Title)* /s/ Rosanne Holtzer
-------------------
Rosanne Holtzer, Secretary
Date: December 1, 2005
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, President
Date: December 1, 2005
By (Signature and Title)* /s/ Anthony Pace
----------------
Anthony Pace, Treasurer
Date: December 1, 2005
* Print the name and title of each signing officer under his or her signature.