As filed with the Securities and Exchange Commission on June 8, 2007
Investment Company Act File number 811-8312
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF
REGISTERED MANAGEMENT INVESTMENT COMPANIES
Daily Income Fund
(Exact name of registrant as specified in charter)
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: March 31, 2007
Item 1: Report to Stockholders
- -------------------------------------------------------------------------------
600 Fifth Avenue
Daily New York, NY 10020
Income (212) 830-5200
Fund
===============================================================================
Annual Report
March 31, 2007
[THIS PAGE INTENTIONALLY LEFT BLANK.]
- -------------------------------------------------------------------------------
DAILY INCOME FUND (Formerly Institutional Daily Income Fund)
TABLE OF CONTENTS
===============================================================================
Shareholder Letter 4 Municipal Portfolio
Money Market Portfolio Expense Chart 42
Expense Chart 5 Schedule of Investments 44
Schedule of Investments 7 Statement of Assets and Liabilities 51
Statement of Assets and Liabilities 15 Statement of Operations 52
Statement of Operations 16 Statements of Changes in Net Assets 53
Statements of Changes in Net Assets 17 Financial Highlights 54
Financial Highlights 18
Notes to Financial Statements 58
U.S Treasury Portfolio Report of Independent Registered Public
Accounting Firm 66
Expense Chart 22
Additional Information 67
Schedule of Investments 24
Board Approval of Investment Management
Statement of Assets and Liabilities 25 Contract 68
Statement of Operations 26 Proxy Results 70
Statements of Changes in Net Assets 27 Trustees and Officers Tables 71
Financial Highlights 28
U.S. Government Portfolio
Expense Chart 32
Schedule of Investments 34
Statement of Assets and Liabilities 36
Statement of Operations 37
Statements of Changes in Net Assets 38
Financial Highlights 39
- -------------------------------------------------------------------------------
DAILY INCOME FUND (Formerly Institutional Daily Income Fund)
SHAREHOLDER LETTER
===============================================================================
Dear Shareholder:
We are pleased to present the annual report of Daily Income Fund (the "Fund")
for the year ended March 31, 2007. As of March 31, 2007:
The Money Market Portfolio had net assets of $5,299,002,296.
The U.S. Treasury Portfolio had net assets of $1,036,789,177.
The U.S. Government Portfolio had net assets of $250,898,521.
The Municipal Portfolio had net assets of $236,297,776.
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
- -------------------------------------------------------------------------------
DAILY INCOME FUND (Formerly Institutional Daily Income Fund)
MONEY MARKET PORTFOLIO
EXPENSE CHART
FOR THE SIX MONTHS ENDED MARCH 31, 2007
(UNAUDITED)
===============================================================================
As a shareholder of the Portfolio, you incur the following ongoing costs:
management fees and other Portfolio expenses. You may also incur distribution
and/or service (12b-1) fees. This example is intended to help you understand
your ongoing costs (in dollars) of investing in the Portfolio and to compare
these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the
period and held for the entire period through March 31, 2007.
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.
- ----------------------------------------------------------------------------------------------------------------------------
Institutional Shares (Formerly Class B) Beginning Account Ending Account Value Expenses Paid Annualized
& Pinnacle Shares (a) Value 10/01/06 03/31/07 During the period Expense Ratio
- ----------------------------------------------------------------------------------------------------------------------------
Actual $1,000.00 $1,026.10 $1.01 0.20%
- ----------------------------------------------------------------------------------------------------------------------------
Hypothetical (5% return before $1,000.00 $1,023.93 $1.01 0.20%
expenses)
- ----------------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------------
Institutional Service Shares Beginning Account Ending Account Value Expenses Paid Annualized
(Formerly Class A) (a) Value 10/01/06 03/31/07 During the Period Expense Ratio
- ----------------------------------------------------------------------------------------------------------------------------
Actual $1,000.00 $1,024.80 $2.27 0.45%
- ----------------------------------------------------------------------------------------------------------------------------
Hypothetical (5% return before $1,000.00 $1,022.69 $2.27 0.45%
expenses)
- ----------------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------------
Investor Shares Beginning Account Ending Account Value Expenses Paid Annualized
Value 11/28/06 03/31/07 During the Period Expense Ratio
- ----------------------------------------------------------------------------------------------------------------------------
Actual (b) $1,000.00 $1,016.20 $2.23 0.65%
- ----------------------------------------------------------------------------------------------------------------------------
Hypothetical (5% return before $1,000.00 $1,021.69 $3.28 0.65%
expenses)(a)
- ----------------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------------
Short Term Income Shares Beginning Account Ending Account ValueExpenses Paid Annualized
Value 02/12/07 03/31/07 During the Period Expense Ratio
- ----------------------------------------------------------------------------------------------------------------------------
Actual (c) $1,000.00 $1,005.90 $1.24 0.94%
- ----------------------------------------------------------------------------------------------------------------------------
Hypothetical (5% return before $1,000.00 $1,020.24 $4.73 0.94%
expenses)(a)
- ----------------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
DAILY INCOME FUND (Formerly Institutional Daily Income Fund)
MONEY MARKET PORTFOLIO
EXPENSE CHART (CONTINUED)
FOR THE SIX MONTHS ENDED MARCH 31, 2007
(UNAUDITED)
===============================================================================
- ----------------------------------------------------------------------------------------------------------------------------
Retail Shares Beginning Account Ending Account Value Expenses Paid Annualized
Value 11/28/06 03/31/07 During the Period Expense Ratio
- ----------------------------------------------------------------------------------------------------------------------------
Actual (b) $1,000.00 $1,014.90 $3.42 1.00%
- ----------------------------------------------------------------------------------------------------------------------------
Hypothetical (5% return before $1,000.00 $1,019.95 $5.04 1.00%
expenses)(a)
- ----------------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------------
Beginning Account Ending Account Value Expenses Paid Annualized
Advantage Shares Value 11/01/06 03/31/07 During the Period Expense Ratio
- ----------------------------------------------------------------------------------------------------------------------------
Actual (d) $1,000.00 $1,018.10 $4.26 1.02%
- ----------------------------------------------------------------------------------------------------------------------------
Hypothetical (5% return before $1,000.00 $1,019.85 $5.14 1.02%
expenses)(a)
- ----------------------------------------------------------------------------------------------------------------------------
(a) Expenses are equal to the Fund's annualized expense ratios multiplied by
the average account value over the period (October 1, 2006 through March
31, 2007), multiplied by 182/365 (to reflect the most recent fiscal
half-year).
(b) Expenses are equal to the Fund's annualized expense ratios multiplied by
the average account value over the period (November 28, 2006 through March
31, 2007), multiplied by 124/365 (to reflect the most recent fiscal
half-year).
(c) Expenses are equal to the Fund's annualized expense ratios multiplied by
the average account value over the period (February 12, 2006 through March
31, 2007), multiplied by 48/365 (to reflect the most recent fiscal
half-year).
(d) Expenses are equal to the Fund's annualized expense ratios multiplied by
the average account value over the period (November 1, 2006 through March
31, 2007), multiplied by 151/365 (to reflect the most recent fiscal
half-year).
- -------------------------------------------------------------------------------
DAILY INCOME FUND (Formerly Institutional Daily Income Fund)
MONEY MARKET PORTFOLIO
SCHEDULE OF INVESTMENTS
MARCH 31, 2007
===============================================================================
Face Maturity Current Value
Amount Date Coupon (1) (Note 1)
-------- ------ ---------- --------
Asset Back Commercial Paper (9.81%)
- -----------------------------------------------------------------------------------------------------------------------------------
$ 42,450,000 Charta LLC
Insured by AMBAC Assurance Corporation 04/12/07 5.30% $ 42,381,741
100,000,000 Chesham Finance Limited 05/29/07 5.32 99,153,361
50,000,000 Chesham Finance Limited 06/20/07 5.32 49,417,222
50,000,000 Chesham Finance Limited 06/26/07 5.31 49,374,111
29,892,000 Fountain Square Commercial Funding Corp 04/16/07 5.32 29,826,611
50,000,000 Greyhawk Funding, LLC 04/20/07 5.29 49,861,195
100,000,000 Lexington Parker Capital Company, LLC 07/17/07 5.30 98,452,958
50,000,000 Long Lane Master Trust IV 04/05/07 5.29 49,970,722
51,263,000 Market Street Funding, LLC 04/05/07 5.28 51,233,040
- ---------------- ---------------
523,605,000 Total Asset Back Commercial Paper 519,670,961
- ---------------- ---------------
Commercial Paper (0.36%)
- -----------------------------------------------------------------------------------------------------------------------------------
$ 18,100,000 Cornell University 05/09/07 5.30% $ 17,999,696
1,000,000 Tennessee School Board Authority 04/02/07 5.35 1,000,000
- ---------------- ---------------
19,100,000 Total Commercial Paper 18,999,696
- ---------------- ---------------
Domestic Certificates of Deposit (7.77%)
- -----------------------------------------------------------------------------------------------------------------------------------
$ 75,000,000 Citibank, N.A. 05/16/07 5.32% $ 75,000,000
100,000,000 Citibank, N.A. 06/07/07 5.28 100,000,000
12,000,000 M&I Marshall & Ilsley Bank 06/18/07 5.29 11,999,872
50,000,000 SunTrust Bank Floating Rate CD (2) 11/19/07 5.29 50,003,154
100,000,000 Wilmington Trust Company 06/15/07 5.33 100,000,000
50,000,000 Wilmington Trust Company 06/21/07 5.31 50,000,000
25,000,000 Wilmington Trust Company 07/19/07 5.35 25,000,000
- ---------------- ---------------
412,000,000 Total Domestic Certificates of Deposit 412,003,026
- ---------------- ---------------
Eurodollar Certificates of Deposit (11.79%)
- -----------------------------------------------------------------------------------------------------------------------------------
$ 50,000,000 Alliance & Leicester PLC 05/29/07 5.33% $ 49,999,751
50,000,000 Alliance & Leicester PLC 07/09/07 5.34 50,000,000
50,000,000 Credit Agricole Indosuez 07/11/07 5.32 49,998,094
50,000,000 Credit Industriel et Commercial 07/10/07 5.33 50,000,000
25,000,000 Credit Industriel et Commercial 07/25/07 5.36 25,000,000
50,000,000 DNB Nordbank 06/15/07 5.32 50,000,000
50,000,000 DNB Nordbank 06/19/07 5.30 50,000,000
50,000,000 DNB Nordbank 06/19/07 5.30 50,000,000
125,000,000 Landesbank Baden Wurtemburg 04/19/07 5.32 124,999,370
25,000,000 Societe Generale 10/16/07 5.34 25,000,661
100,000,000 Ulster Bank Limited (3) 06/05/07 5.30 100,000,000
- ---------------- ---------------
625,000,000 Total Eurodollar Certificates of Deposit 624,997,876
- ---------------- ---------------
The accompanying notes are an integral part of these financial statements.
- -------------------------------------------------------------------------------
DAILY INCOME FUND (Formerly Institutional Daily Income Fund)
MONEY MARKET PORTFOLIO
SCHEDULE OF INVESTMENTS (CONTINUED)
MARCH 31, 2007
===============================================================================
Face Maturity Current Value
Amount Date Coupon (1) (Note 1)
-------- ------ ---------- --------
Floating Rate Securities (5.00%)
- -----------------------------------------------------------------------------------------------------------------------------------
$ 100,000,000 Bank of America Federal Funds Floater (4) 09/14/07 5.30% $ 100,000,000
50,000,000 General Electric Capital Corp. (5) 01/03/08 5.42 50,036,639
25,000,000 JPMorgan Chase & Co. Extendable LIBOR Floating Rate Note (6) 04/11/08 5.30 25,000,000
40,000,000 Merrill Lynch & Co. Extendible Floater (7) 04/18/08 5.30 40,000,000
50,000,000 Sigma Finance Inc. (8) 12/13/07 5.33 49,998,166
- ---------------- ---------------
265,000,000 Total Floating Rate Securities 265,034,805
- ---------------- ---------------
Foreign Commercial Paper (4.12%)
- -----------------------------------------------------------------------------------------------------------------------------------
$ 65,000,000 Anglo Irish Bank Corporation PLC 04/11/07 5.33% $ 64,905,118
44,823,000 Britannia Building Society 05/31/07 5.30 44,431,919
10,000,000 Britannia Building Society 06/20/07 5.31 9,883,556
100,000,000 Depfa Bank, PLC 06/15/07 5.30 98,910,417
- ---------------- ---------------
219,823,000 Total Foreign Commercial Paper 218,131,010
- ---------------- ---------------
Letter of Credit Commercial Paper (2.17%)
- -----------------------------------------------------------------------------------------------------------------------------------
$ 30,000,000 Central American Bank
LOC Barclays Bank PLC 04/03/07 5.30% $ 29,991,208
15,200,000 Cofco Capital Corp.
LOC Rabobank Nederland 04/17/07 5.30 15,164,331
45,000,000 Dean Health Systems, Inc.
LOC M&I Marshall & Ilsley 04/19/07 5.29 44,881,425
25,000,000 Walnut Energy Center Authority
LOC State Street Bank & Trust Company 05/15/07 5.32 24,839,583
- ---------------- ---------------
115,200,000 Total Letter of Credit Commercial Paper 114,876,547
- ---------------- ---------------
Loan Participations (3.62%)
- -----------------------------------------------------------------------------------------------------------------------------------
$ 50,000,000 Army and Air Force Exchange Service with JPMorgan Chase & Co. 04/24/07 5.33% $ 50,000,000
62,000,000 AXA Equitable Life Insurance Company with J.P. Morgan Chase (9) 03/21/08 5.37 62,000,000
50,000,000 Caterpillar Financial Services 04/23/07 5.31 50,000,000
25,000,000 Caterpillar Financial Services 04/27/07 5.31 25,000,000
5,000,000 Mt. Vernon Phenol (General Electric Co.) with J.P. Morgan Chase (10)
Guaranteed by General Electric Company 05/21/07 5.34 5,000,000
- ---------------- ---------------
192,000,000 Total Loan Participations 192,000,000
- ---------------- ---------------
Medium Term Notes (0.85%)
- -----------------------------------------------------------------------------------------------------------------------------------
$ 30,000,000 Barclays Bank PLC 11/02/07 5.41% $ 30,000,000
15,000,000 Merrill Lynch & Co. Medium Term Floater (11) 05/14/07 5.29 15,000,000
- ---------------- ---------------
45,000,000 Total Medium Term Note 45,000,000
- ---------------- ---------------
Repurchase Agreement (0.19%)
- -----------------------------------------------------------------------------------------------------------------------------------
$ 10,000,000 UBS Securities, LLC, purchased on 03/30/07, repurchase proceeds
at maturity $10,004,433 (Collateralized by $43,515,000, GNMA,
5.50% to 9.00%, due 04/15/14 to 04/20/35, value $10,200,413.06) 04/02/07 5.32% $ 10,000,000
- ---------------- ---------------
10,000,000 Total Repurchase Agreement 10,000,000
- ---------------- ---------------
The accompanying notes are an integral part of these financial statements.
- -------------------------------------------------------------------------------
===============================================================================
Face Maturity Current Value
Amount Date Coupon (1) (Note 1)
-------- ------ ---------- --------
Variable Rate Demand Instruments (12) (7.43%)
- -----------------------------------------------------------------------------------------------------------------------------------
$ 2,900,000 Allied Services, Ltd - Series 2006
LOC Fifth Third Bank 03/01/21 5.37% $ 2,900,000
375,000 Automated Packaging Systems
LOC National City Bank 10/01/08 5.43 375,000
8,225,000 Beacon Orthopedics Facilities, LLC - Series 2004
LOC Fifth Third Bank 02/01/24 5.38 8,225,000
880,000 Big Brothers Big Sisters Association of Greater Columbus-Series 2000
LOC Fifth Third Bank 12/01/20 5.37 880,000
4,000,000 Bluegrass Wireless, LLC
LOC Fifth Third Bank 02/01/12 5.37 4,000,000
2,730,000 Briarwood Investments, LLC - Series 2003
LOC Federal Home Loan Bank of Cincinnati 04/01/23 5.37 2,730,000
5,135,000 Capital Markets Access Company, LLC.
(Cape Coral Medical & Surgical Suites, LLC Project)
LOC Suntrust Bank 08/01/20 5.37 5,135,000
3,800,000 CFM International Inc. - Series 1999A (13)
Guaranteed by General Electric Company 01/01/10 5.34 3,800,000
20,200,000 Church of the Highlands, Inc.
LOC Amsouth Bank 01/01/23 5.34 20,200,000
11,625,000 City of Auburn, AL
Industrial Development & Infrastructure RB - Series 2004A
LOC Allied Irish Bank 05/01/24 5.32 11,625,000
3,900,000 Cobb County, GA Development Authority RB
(Prime Power Project) - Series 2007
LOC Bank of North Georgia 01/01/32 5.37 3,900,000
10,720,000 Columbus, GA Development Authority RB
(Four J.S. Family, LLP Project) - Series 2002
LOC Columbus Bank & Trust Company 12/01/22 5.32 10,720,000
10,035,000 Columbus, GA Development Authority RB
(Woodmont Properties, LLC
Greystone Farms II Project) - Series 2006
LOC Columbus Bank & Trust Co. Company 02/01/26 5.37 10,035,000
5,000,000 Cubba Capital II, LLC - Series 2006B
LOC Charter One Bank 09/01/56 5.37 5,000,000
1,865,000 D.E.D.E. Realty - Series 1998
LOC Fifth Third Bank 12/01/11 5.37 1,865,000
10,050,000 D.G.Y. Real Estate LP - Series 2000A
LOC PNC Bank, N.A. 05/01/20 5.35 10,050,000
1,780,000 Delta Capital LLC - Series 1996B
LOC JPMorgan Chase Bank, N.A. 10/01/26 5.42 1,780,000
1,990,000 Eagles Landing, LLC
LOC Regions Bank 12/01/26 5.32 1,990,000
2,800,000 East Kentucky Network, LLC
LOC Fifth Third Bank 02/01/16 5.37 2,800,000
7,570,000 El Dorado Enterprises of Miami, Inc. - Series 2000
LOC First Union National Bank 06/01/20 5.44 7,570,000
4,405,000 Elsinore Properties LLP - Series 1999
LOC Fifth Third Bank 01/01/29 5.37 4,405,000
The accompanying notes are an integral part of these financial statements.
- -------------------------------------------------------------------------------
DAILY INCOME FUND (Formerly Institutional Daily Income Fund)
MONEY MARKET PORTFOLIO
SCHEDULE OF INVESTMENTS (CONTINUED)
MARCH 31, 2007
===============================================================================
Face Maturity Current Value
Amount Date Coupon (1) (Note 1)
-------- ------ ---------- --------
Variable Rate Demand Instruments (12) (Continued)
- -----------------------------------------------------------------------------------------------------------------------------------
$ 2,300,000 Erie County, NY IDA RB
(Niagara-Maryland LLC Project) - Series 2003
LOC Manufacturers and Traders Trust Co. 06/01/23 5.40% $ 2,300,000
2,745,000 Fiore Capital LLC - Series 2005A
LOC M & I Marshall & Ilsley Bank 08/01/45 5.32 2,745,000
960,000 First Metropolitan Title Company Demand Notes - Series 1999
LOC LaSalle Bank, N.A. 05/01/24 5.42 960,000
11,135,000 Flint River Services, Inc. - Series 2005
LOC Columbus Bank & Trust Company 01/01/30 5.36 11,135,000
14,935,000 Ft. Northport, LLC - Series 2004
LOC Regions Bank 12/01/31 5.32 14,935,000
1,425,000 G&J Land Management - Series 1996
LOC Fifth Third Bank 12/01/17 5.35 1,425,000
3,535,000 G&L Manufacturing, Inc.
LOC Fifth Third Bank 07/01/20 5.37 3,535,000
3,910,000 Gardner Publications - Series 2000
LOC Fifth Third Bank 10/01/10 5.37 3,910,000
11,040,000 Gastro Partners Land Company, LLC - Series 2005
LOC Union Planters Bank 03/01/35 5.32 11,040,000
8,000,000 Genoa Medical Development, LLC
LOC Fifth Third Bank 12/01/45 5.37 8,000,000
2,535,000 Governor's Village LLC - Series 2000
LOC Fifth Third Bank 03/01/20 5.37 2,535,000
5,850,000 Graf Brothers Flooring, Inc. - Series 2005
LOC Fifth Third Bank 05/01/20 5.37 5,850,000
11,623,200 Herman & Kittle Capital, LLC - Series 2005 (14)
LOC Fifth Third Bank 06/01/55 5.32 11,623,200
1,860,000 HFA of Lee County, FL MHRB
(University Club Apartments) - Series 2002B
Guaranteed by Federal National Mortgage Association 05/15/35 5.32 1,860,000
2,805,000 Hostun LLC - Series 2004
LOC U.S. Bank, N.A. 12/01/27 5.41 2,805,000
1,000,000 Indian Creek Christian Church Inc.
LOC Fifth Third Bank 12/01/55 5.37 1,000,000
5,360,000 Indiana Health & Educational Facilities (Porter Project) Series 2005B
LOC Fifth Third Bank 06/01/19 5.35 5,360,000
1,260,000 Joe Holland Chevrolet, Inc. - Joe Holland Chrysler LLC
(The Holland Family Limited Partnership Number 1) - Series 2004
LOC Fifth Third Bank 07/01/24 5.37 1,260,000
2,925,000 Kenwood County Club, Incorporated - Series 2005
LOC US Bank, N.A. 12/01/15 5.35 2,925,000
2,215,000 Kingston Healthcare Company - Series 1997A
LOC Fifth Third Bank 11/01/17 5.35 2,215,000
4,700,000 Lake Mary Bay Limited Partnership - Series 2005
LOC Amsouth Bank 03/01/25 5.37 4,700,000
2,495,000 Landmark Church of Christ - Series 2005
LOC Columbus Bank & Trust Company 04/01/20 5.32 2,495,000
The accompanying notes are an integral part of these financial statements.
- -------------------------------------------------------------------------------
===============================================================================
Face Maturity Current Value
Amount Date Coupon (1) (Note 1)
-------- ------ ---------- --------
Variable Rate Demand Instruments (12) (Continued)
- -----------------------------------------------------------------------------------------------------------------------------------
$ 12,450,000 Lexington Financial Service
LOC LaSalle National Bank, N.A. 02/01/26 5.36% $ 12,450,000
1,900,000 Lauren Company, LLC - Series 2003
LOC Wells Fargo Bank, N.A. 07/01/33 5.40 1,900,000
315,000 LRV Enterprises, LLC - Series 1996
LOC National City Bank 09/01/21 5.48 315,000
900,000 Mayfair Village Retirement Center, Inc., KY - Series 1995
LOC PNC Bank, N.A. 05/15/09 5.34 900,000
6,820,000 Michigan Equity Group, LLC
(Oakland Investment Company Project) - Series 2004A
LOC Fifth Third Bank 04/01/34 5.37 6,820,000
3,500,000 Mississippi Business Finance Corporation
(Attala Steel Industries, LLC Project) - Series 2005
Guaranteed by Federal Home Loan Bank 07/01/20 5.32 3,500,000
730,000 Mississippi Business Finance Corporation IDRB
(Howard Industries Inc. Project) - Series 1995
LOC Amsouth Bank 06/01/10 5.32 730,000
7,225,000 Mississippi Business Finance Corporation IDRB
(Lextron - Visteon Leasing, LLC Project) - Series 2003
LOC JPMorgan Chase Bank 12/01/27 5.35 7,225,000
7,160,000 Montgomery County, PA MHRB
(Brookside Manor Apartments) - Series 2001A
Collateralized by Federal National Mortgage Association 08/15/31 5.32 7,160,000
10,000,000 Moore Orthopedic Clinic -Land, LLC - Series 2006
LOC National Bank of South Carolina 08/01/31 5.37 10,000,000
7,610,000 MSCH Real Estate Investors,LLC - Series 2004
LOC First Tennessee Bank, N.A. 09/01/21 5.33 7,610,000
2,235,000 Mt. Carmel West Medical Office Building - Series 1999
LOC National City Bank 08/01/19 5.38 2,235,000
4,455,000 New Hampshire Health & Educational Facility Authority RB
(Weeks Medical Center Issue) - Series 2005B
LOC Allied Irish Bank 07/01/35 5.28 4,455,000
3,045,000 Northern Kentucky Cancer Center, LLC - Series 2003
LOC US Bank, N.A. 05/01/24 5.40 3,045,000
2,560,000 OHC Real Estate LLC - Series 2006A
LOC US Bank, N.A. 11/01/26 5.40 2,560,000
1,310,000 OHC Real Estate LLC - Series 2006B
LOC US Bank, N.A. 11/01/26 5.40 1,310,000
3,600,000 Parker Towing Company Inc. - Series 2006
LOC Amsouth Bank 06/01/11 5.37 3,600,000
2,885,000 Putnam County, NY IDA IDRB
(Broad Reach, LLC Project) - Series 2006A
LOC Charter One Bank 07/01/32 5.42 2,885,000
915,000 Putnam County, NY IDA IDRB
(Broad Reach, LLC Project) - Series 2006B
LOC Charter One Bank 07/01/14 5.42 915,000
4,755,000 Reynolds Road Fitness Center - Series 1998
LOC Fifth Third Bank 01/01/19 5.37 4,755,000
The accompanying notes are an integral part of these financial statements.
- -------------------------------------------------------------------------------
DAILY INCOME FUND (Formerly Institutional Daily Income Fund)
MONEY MARKET PORTFOLIO
SCHEDULE OF INVESTMENTS (CONTINUED)
MARCH 31, 2007
===============================================================================
Face Maturity Current Value
Amount Date Coupon (1) (Note 1)
-------- ------ ---------- --------
Variable Rate Demand Instruments (12) (Continued)
- -----------------------------------------------------------------------------------------------------------------------------------
$ 10,203,000 Saber Management LLC - Series 2006
LOC Charter One Bank 07/01/56 5.37% $ 10,203,000
4,800,000 Santa Rosa Property Holdings, LLC - Series 2006
LOC Columbus Bank & Trust Company 08/01/31 5.37 4,800,000
6,270,000 Scott Street Land Company, Ltd. - Series 2000
LOC Fifth Third Bank 01/03/22 5.37 6,270,000
6,100,000 South Central Communications Corporation - Series 2003
LOC Fifth Third Bank 04/01/18 5.35 6,100,000
7,000,000 Southeast Alabama Gas District RB (Lateral Project) - Series 2000
Insured by AMBAC Assurance Corporation 06/01/25 5.32 7,000,000
5,000,000 St. Johns County IDA First Mortgage RB
(Presbyterian Retirement Communities Project) - Series 2004B
LOC Allied Irish Banks 08/01/34 5.42 5,000,000
17,000,000 SWC Princeton, LLC - Series 2006
LOC Compass Bank 03/01/32 5.32 17,000,000
2,360,000 Tireless Corporation - Series 1999
LOC Fifth Third Bank 04/01/19 5.37 2,360,000
1,435,000 Trendway Corporation - Series 1996
LOC ABN Amro Bank, N.A. 12/01/26 5.42 1,435,000
3,572,000 Washington State HFC Non-Profit Housing RB
(Rockwood Program) - Series B (14)
LOC Wells Fargo Bank, N.A. 01/01/30 5.32 3,572,000
15,500,000 William Morris Realty Greystone, LLC - Series 2007
LOC Regions Bank 03/01/32 5.36 15,500,000
1,815,000 Wholesome Group, LLC - Series 2005
LOC Fifth Third Bank 10/01/20 5.37 1,815,000
1,620,000 Wisconsin Housing Preservation Corporation - Series 2005
LOC M & I Marshall & Ilsley Bank 05/01/35 5.32 1,620,000
2,100,000 Woods Group TN, LLC - Series 2006
LOC Amsouth Bank 09/01/31 5.38 2,100,000
- ---------------- ---------------
393,743,200 Total Variable Rate Demand Instruments 393,743,200
- ---------------- ---------------
Yankee Certificates of Deposit (53.27%)
- -----------------------------------------------------------------------------------------------------------------------------------
$ 100,000,000 Abbey National Bank Floating Rate YCD (15) 04/07/08 5.29% $ 99,975,440
25,000,000 Abbey National Bank Floating Rate YCD (16) 11/21/07 5.27 24,996,843
100,000,000 Banco Bilbao de Vizcaya 05/04/07 5.32 100,000,000
50,000,000 Banco Bilbao de Vizcaya 12/20/07 5.30 49,954,546
100,000,000 Banco Bilbao de Vizcaya Floating Rate YCD (17) 04/07/08 5.30 99,980,470
50,000,000 Barclays Bank PLC 04/24/07 5.32 50,000,000
200,000,000 Bayerische Hypo-Und Vereinsbank 04/05/07 5.30 200,000,000
50,000,000 Bayerische Hypo-Und Vereinsbank 05/09/07 5.29 50,000,000
100,000,000 Calyon Floating Rate YCD (18) 06/15/07 5.32 100,000,000
75,000,000 Calyon Floating Rate YCD (19) 09/05/07 5.32 75,000,000
40,000,000 CIBC Floating Rate YCD (20) 11/26/07 5.38 39,997,484
100,000,000 CIBC Floating Rate YCD (21) 12/20/07 5.35 100,000,000
50,000,000 Credit Industriel et Commercial 07/16/07 5.33 50,000,000
The accompanying notes are an integral part of these financial statements.
- -------------------------------------------------------------------------------
DAILY INCOME FUND (Formerly Institutional Daily Income Fund)
MONEY MARKET PORTFOLIO
SCHEDULE OF INVESTMENTS (CONTINUED)
MARCH 31, 2007
===============================================================================
Face Maturity Current Value
Amount Date Coupon (1) (Note 1)
-------- ------ ---------- --------
Yankee Certificates of Deposit (Continued)
- -----------------------------------------------------------------------------------------------------------------------------------
$ 100,000,000 Credit Industriel et Commercial 07/19/07 5.30% $ 99,998,513
100,000,000 Credit Suisse First Boston 04/05/07 5.29 100,000,000
50,000,000 Credit Suisse First Boston 06/12/07 5.29 50,000,000
100,000,000 Credit Suisse First Boston Floating Rate YCD (22) 12/17/07 5.38 100,000,000
25,000,000 Deutsche Bank 10/24/07 5.41 25,000,000
30,000,000 Deutsche Bank 12/17/07 5.34 30,000,000
100,000,000 Deutsche Bank Floating Rate YCD (23) 03/05/08 5.39 100,000,000
50,000,000 Deutsche Bank Floating Rate YCD (24) 03/07/08 5.38 50,000,000
100,000,000 Deutsche Zentral-Genossenschaftsb 04/18/07 5.29 100,000,000
125,000,000 Deutsche Zentral-Genossenschaftsb 04/26/07 5.29 125,000,000
50,000,000 HSH Nordbank AG 07/16/07 5.33 50,000,000
100,000,000 HSH Nordbank AG Floating Rate YCD (25) 03/13/08 5.29 99,990,642
50,000,000 HSH Nordbank AG Floating Rate YCD (25) 03/17/08 5.29 49,995,284
15,000,000 Kreditbank Floating Rate YCD (26) 05/22/07 5.35 15,000,000
18,000,000 Landesbank Baden Wurtemburg 05/24/07 5.40 17,996,344
25,000,000 Norddeutsche Landesbank Girozentral 04/16/07 5.35 25,000,000
50,000,000 Nordeutsche Landesbank Girozentral 07/16/07 5.33 50,000,358
50,000,000 Nordeutsche Landesbank Girozentral 07/16/07 5.34 50,000,000
50,000,000 Royal Bank of Canada 06/21/07 5.32 50,000,000
25,000,000 Royal Bank of Canada 11/09/07 5.40 25,000,000
100,000,000 Societe Generale Floating Rate YCD (27) 12/17/07 5.38 100,000,000
50,000,000 Societe Generale Floating Rate YCD (28) 01/08/08 5.39 50,000,000
50,000,000 Standard Chartered Bank PLC 04/12/07 5.30 50,000,000
50,000,000 Standard Chartered Bank PLC 06/07/07 5.28 50,000,000
100,000,000 Standard Chartered Bank PLC Floating Rate YCD (29) 04/07/08 5.29 99,985,150
50,000,000 Standard Chartered Bank PLC Floating Rate YCD (30) 04/07/08 5.30 49,989,005
70,000,000 Svenska Handelsbanken 10/26/07 5.33 69,987,503
50,000,000 Union Bank of Switzerland 05/07/07 5.29 50,000,000
50,000,000 Union Bank of Switzerland 01/11/08 5.42 50,000,000
- ---------------- ---------------
2,823,000,000 Total Yankee Certificates of Deposit 2,822,847,582
- ---------------- ---------------
Total Investments (106.38%) (cost $5,637,304,703+) 5,637,304,703
Liabilities in excess of cash and other assets (-6.38%) (338,302,407)
---------------
Net Assets (100.00%) $ 5,299,002,296
===============
+ Aggregate cost for federal income tax purposes is identical.
The accompanying notes are an integral part of these financial statements.
- -------------------------------------------------------------------------------
DAILY INCOME FUND (Formerly Institutional Daily Income Fund)
MONEY MARKET PORTFOLIO
SCHEDULE OF INVESTMENTS (CONTINUED)
MARCH 31, 2007
===============================================================================
FOOTNOTES:
1) The interest rate shown reflects the security's current 16) The interest rate is adjusted monthly based upon one
coupon, unless yield is available. month LIBOR minus 0.0325%.
2) The interest rate is adjusted monthly based upon one month 17) The interest rate is adjusted quarterly based upon
LIBOR minus 0.03%. three month LIBOR minus 0.055%.
3) The interest rate is adjusted daily based upon Federal Funds 18) The interest rate is adjusted daily based upon
Target plus 0.055%. Federal Funds Target plus 0.065%.
4) The interest rate is adjusted daily based upon Federal Funds 19) The interest rate is adjusted daily based upon
Target plus 0.05%. Federal Funds Target plus 0.07%.
5) The interest rate is adjusted quarterly based upon three month 20) The interest rate is adjusted daily based upon
LIBOR plus 0.06%. Federal Funds Target plus 0.14%.
6) The interest rate is adjusted monthly based upon one month LIBOR 21) The interest rate is adjusted daily based upon
minus 0.02%. Federal Funds Target plus 0.10%.
7) The interest rate is adjusted monthly based upon one month LIBOR 22) The interest rate is adjusted daily based upon
minus 0.035%. Federal Funds Target plus 0.135%.
8) The interest rate is adjusted daily based upon Federal Funds 23) The interest rate is adjusted daily based upon
prime minus 0.02925% Federal Funds Target plus 0.14%.
9) Loan participation agreement with the interest rate adjusted 24) The interest rate is adjusted daily based upon
quarterly based upon three month LIBOR plus 0.02%. Federal Funds Target plus 0.13%.
10) Loan participation agreement with the interest rate adjusted 25) The interest rate is adjusted monthly based upon
monthly based upon one month LIBOR plus 0.02%. one month LIBOR minus 0.03%.
11) The interest rate is adjusted monthly based upon one month LIBOR 26) The interest rate is adjusted daily based upon
minus 0.03%. Federal Funds Target plus 0.10%.
12) Securities payable on demand at par including accrued interest 27) The interest rate is adjusted daily based upon
(with seven days' notice). Interest rate is adjusted weekly. Federal Funds Target plus 0.125%.
13) The interest rate is adjusted weekly based upon the average one 28) The interest rate is adjusted daily based upon
month LIBOR plus 0.05%. Federal Funds Target plus 0.14%.
14) Securities payable on demand at par including accrued interest 29) The interest rate is adjusted monthly based upon
(with one day notice). Interest rate is adjusted daily. one month LIBOR minus 0.035%.
15) The interest rate is adjusted monthly based upon three month 30) The interest rate is adjusted monthly based upon
LIBOR minus 0.06%. three month LIBOR minus 0.0525%.
KEY:
CD = Certificate of Deposit IDRB = Industrial Development Revenue Bond
GNMA = Government National Mortgage Association LOC = Letter of Credit
HFA = Housing Finance Authority MHRB = Multi-Family Housing Revenue Bond
HFC = Housing Finance Commission RB = Revenue Bond
IDA = Industrial Development Authority YCD = Yankee Certificate of Deposit
BREAKDOWN OF PORTFOLIO HOLDINGS BY MATURITY:
- -------------------------------------------------------------------------------
Securities Maturing in Value % of Portfolio
- -------------------------------------------------------------------------------
Less than 31 Days $ 3,084,961,322 54.73%
31 through 60 Days 484,988,735 8.60
61 through 90 Days 914,017,097 16.21
91 through 120 Days 848,394,840 15.05
121 through 180 Days -- --
Over 180 Days 304,942,709 5.41
- -------------------------------------------------------------------------------
Total $ 5,637,304,703 100.00%
- -------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
- -------------------------------------------------------------------------------
DAILY INCOME FUND (Formerly Institutional Daily Income Fund)
MONEY MARKET PORTFOLIO
STATEMENT OF ASSETS AND LIABILITIES
MARCH 31, 2007
===============================================================================
ASSETS
Investments in securities, at amortized cost (Note 1)............................. $ 5,627,304,703
Repurchase agreements............................................................. 10,000,000
Accrued interest receivable....................................................... 34,316,111
Prepaid expenses.................................................................. 130,520
Other receivables................................................................. 2,687
------------------
Total assets............................................................... 5,671,754,021
------------------
LIABILITIES
Payable to affiliates*............................................................ 2,363,327
Payable for securities purchased.................................................. 349,930,065
Due to Custodian.................................................................. 11,277,634
Accrued expenses.................................................................. 398,399
Dividends payable................................................................. 8,782,300
------------------
Total liabilities.......................................................... 372,751,725
------------------
Net assets........................................................................ $ 5,299,002,296
==================
SOURCE OF NET ASSETS
Net capital paid in on shares of capital stock (Note 3)........................... $ 5,299,002,296
------------------
Net assets........................................................................ $ 5,299,002,296
==================
Net asset value, per share (Note 3):
Class Name Net Assets Shares Outstanding Net Asset Value
Institutional (Formerly Class B) Shares............ $639,573,165 639,573,165 $1.00
Institutional Service (Formerly Class A) Shares.... $267,864,900 267,864,900 $1.00
Pinnacle Shares.................................... $171,028,209 171,028,209 $1.00
Investor Shares.................................... $151,946,857 151,946,857 $1.00
Short Term Income Shares........................... $57,096,721 57,096,721 $1.00
Retail Shares...................................... $897,903,953 897,903,953 $1.00
Advantage Shares................................... $3,113,588,491 3,113,588,491 $1.00
* Includes fees payable to Reich & Tang Asset Management, LLC, Reich & Tang
Distributors, Inc. and Reich & Tang Services, Inc.
The accompanying notes are an integral part of these financial statements.
- -------------------------------------------------------------------------------
DAILY INCOME FUND (Formerly Institutional Daily Income Fund)
MONEY MARKET PORTFOLIO
STATEMENT OF OPERATIONS
FOR THE YEAR ENDED MARCH 31, 2007
===============================================================================
INVESTMENT INCOME
Income:
Interest........................................................................ $ 108,587,662
------------------
Expenses: (Note 2)
Investment management fee....................................................... 2,443,086
Administration fee.............................................................. 1,017,952
Shareholder servicing fee (Institutional Service - Formerly Class A)............ 582,861
Shareholder servicing fee (Investor Shares - Note 1)............................ 28,739
Shareholder servicing fee (Short-Term Income Shares - Note 1)................... 11,363
Shareholder servicing fee (Retail Shares - Note 1).............................. 241,685
Shareholder servicing fee (Advantage Shares - Note 1)........................... 2,351,344
Distribution fee (Investor Shares - Note 1)..................................... 22,991
Distribution fee (Short-Term Income Shares - Note 1)............................ 20,453
Distribution fee (Retail Shares - Note 1)....................................... 628,381
Distribution fee (Advantage Shares - Note 1).................................... 7,054,031
Sub-Accounting fee (Advantage Shares - Note 1).................................. 940,537
Custodian expenses.............................................................. 86,163
Shareholder servicing and related shareholder expenses+......................... 344,717
Legal, compliance and filing fees............................................... 350,266
Audit and accounting............................................................ 222,800
Trustees' fees and expenses..................................................... 78,021
Other........................................................................... 31,363
------------------
Total expenses.................................................................. 16,456,753
Less: Fees waived (Note 2)............................................... (3,210,300)
Expense paid indirectly (Note 2)................................... (20,676)
------------------
Net expenses.................................................................... 13,225,777
------------------
Net investment income........................................................... 95,361,885
REALIZED GAIN (LOSS) ON INVESTMENTS
Net realized gain on investments.................................................... 2,797
------------------
Increase in net assets from operations.............................................. $ 95,364,682
==================
+ Includes class specific transfer agency expenses of $119,247, $46,624,
$30,650, $5,783, $2,813, and $48,428 for the Institutional (Formerly Class
B), Institutional Service (Formerly Class A), Pinnacle, Investor,
Short-Term Income, and Retail Shares, respectively.
The accompanying notes are an integral part of these financial statements.
- -------------------------------------------------------------------------------
DAILY INCOME FUND (Formerly Institutional Daily Income Fund)
MONEY MARKET PORTFOLIO
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED MARCH 31, 2007 AND 2006
===============================================================================
2007 2006
------ ------
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income......................................... $ 95,361,885 $ 22,046,040
Net realized gain (loss) on investments....................... 2,797 -0-
--------------- ----------------
Increase in net assets from operations............................ 95,364,682 22,046,040
Dividends to shareholders from net investment income:
Institutional Shares (Formerly Class B)....................... (30,400,132) (12,262,789)
Institutional Service Shares (Formerly Class A)............... (11,264,771) (5,513,078)
Pinnacle Shares............................................... (7,787,391) (4,270,165)
Investor Shares............................................... (546,986) -0-
Short-Term Income Shares...................................... (203,619) -0-
Retail Shares................................................. (4,247,022) -0-
Advantage Shares.............................................. (40,911,972) -0-
--------------- ----------------
Total dividends to shareholders.......................... (95,361,893) (22,046,032)
--------------- ----------------
Distributions to shareholders from realized gains on investments:
Institutional Shares (Formerly Class B)....................... (462) -0-
Institutional Service Shares (Formerly Class A)............... (149) -0-
Pinnacle Shares............................................... (89) -0-
Investor Shares............................................... (10) -0-
Short-Term Income Shares...................................... (7) -0-
Retail Shares................................................. (152) -0-
Advantage Shares.............................................. (1,711) -0-
--------------- ----------------
Total distributions to shareholders...................... (2,580) -0-
--------------- ----------------
Capital share transactions (Note 3):
Institutional Shares (Formerly Class B)....................... 266,851,902 157,407,181
Institutional Service Shares (Formerly Class A)............... 43,814,744 104,061,556
Pinnacle Shares............................................... 36,345,944 19,889,808
Investor Shares............................................... 151,946,857 -0-
Short-Term Income Shares...................................... 57,096,721 -0-
Retail Shares................................................. 897,903,953 -0-
Advantage Shares.............................................. 3,113,588,491 -0-
--------------- ----------------
Total capital share transactions........................ 4,567,548,612 281,358,545
--------------- ----------------
Total increase ............................................... 4,567,548,821 281,358,553
Net assets:
Beginning of year............................................. 731,453,475 450,094,922
--------------- ----------------
End of year.................................................. $ 5,299,002,296 $ 731,453,475
=============== ================
Undistributed net investment income............................... $ -0- $ 8
=============== ================
The accompanying notes are an integral part of these financial statements.
- -------------------------------------------------------------------------------
DAILY INCOME FUND (Formerly Institutional Daily Income Fund)
MONEY MARKET PORTFOLIO
FINANCIAL HIGHLIGHTS
===============================================================================
For the Years Ended March 31,
Institutional ------------------------------------------------------------
(Formerly Class B) shares 2007 2006 2005 2004 2003
- ------------------------- --------- --------- --------- --------- ---------
Per Share Operating Performance:
Net asset value, beginning of year.............................. $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
--------- --------- --------- --------- ---------
Income from investment operations:
Net investment income......................................... 0.051 0.036 0.016 0.010 0.016
Net realized and unrealized gain(loss) on investments........ 0.000 -- 0.000 0.000 0.000
--------- --------- --------- --------- ---------
Total from investment operations.............................. 0.051 0.036 0.016 0.010 0.016
Less distributions from:
Dividends from net investment income.......................... (0.051) (0.036) (0.016) (0.010) (0.016)
Net realized gain(loss) on investment......................... (0.000) -- (0.000) (0.000) (0.000)
--------- --------- --------- --------- ---------
Total Distributions........................................... (0.051) (0.036) (0.016) (0.010) (0.016)
--------- --------- --------- --------- ---------
Net asset value, end of year.................................... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
========= ========= ========= ========= =========
Total Return.................................................... 5.19% 3.63% 1.61% 1.00% 1.61%
Ratios/Supplemental Data
Net assets, end of year (000's)................................. $ 639,573 $ 372,721 $ 215,314 $ 163,829 $ 132,837
Ratios to average net assets:
Expenses (net of fees waived) (a)............................. 0.20% 0.20% 0.20% 0.20% 0.20%
Net investment income......................................... 5.10% 3.66% 1.63% 0.99% 1.60%
Management and administration fees waived..................... 0.03% 0.06% 0.08% 0.06% 0.06%
Transfer agency fees waived................................... -- 0.02% 0.02% 0.02% 0.02%
Expenses paid indirectly...................................... 0.00% 0.00% 0.00% 0.00% 0.00%
For the Years Ended March 31,
Institutional Service ------------------------------------------------------------
(Formerly Class A) shares 2007 2006 2005 2004 2003
- --------------------------- --------- --------- --------- --------- ---------
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......................................... 0.048 0.033 0.013 0.007 0.013
Net realized and unrealized gain(loss) on investments........ 0.000 -- 0.000 0.000 0.000
--------- --------- --------- --------- ---------
Total from investment operations.............................. 0.048 0.033 0.013 0.007 0.013
Less distributions from:
Dividends from net investment income.......................... (0.048) (0.033) (0.013) (0.007) (0.013)
Net realized gain(loss) on investment......................... (0.000) -- (0.000) (0.000) (0.000)
--------- --------- --------- --------- ---------
Total Distributions........................................... (0.048) (0.033) (0.013) (0.007) (0.013)
--------- --------- --------- --------- ---------
Net asset value, end of year.................................... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
========= ========= ========= ========= =========
Total Return.................................................... 4.92% 3.36% 1.34% 0.73% 1.33%
Ratios/Supplemental Data
Net assets, end of year (000's)................................. $ 267,865 $ 224,050 $ 119,989 $ 53,373 $ 114,337
Ratios to average net assets:
Expenses (net of fees waived) (a)............................. 0.45% 0.47% 0.47% 0.47% 0.47%
Net investment income......................................... 4.83% 3.39% 1.49% 0.73% 1.32%
Management and administration fees waived..................... 0.03% 0.06% 0.08% 0.06% 0.06%
Transfer agency fees waived................................... -- 0.01% 0.02% 0.00% 0.00%
Expenses paid indirectly...................................... 0.00% 0.00% 0.00% 0.00% 0.00%
(a) Includes expenses paid indirectly.
The accompanying notes are an integral part of these financial statements.
- -------------------------------------------------------------------------------
===============================================================================
For the Years Ended March 31,
------------------------------------------------------------
Pinnacle shares 2007 2006 2005 2004 2003
- ---------------- --------- --------- --------- --------- ---------
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.......................................... 0.051 0.036 0.016 0.010 0.016
Net realized and unrealized gain(loss) on investments......... 0.000 -- 0.000 0.000 0.000
--------- --------- --------- --------- ---------
Total from investment operations............................... 0.051 0.036 0.016 0.010 0.016
Less distributions from:
Dividends from net investment income........................... (0.051) (0.036) (0.016) (0.010) (0.016)
Net realized gain(loss) on investment.......................... (0.000) -- (0.000) (0.000) (0.000)
--------- --------- --------- --------- ---------
Total Distributions............................................ (0.051) (0.036) (0.016) (0.010) (0.016)
--------- --------- --------- --------- ---------
Net asset value, end of year..................................... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
========= ========= ========= ========= =========
Total Return..................................................... 5.19% 3.63% 1.61% 1.00% 1.61%
Ratios/Supplemental Data
Net assets, end of year (000's).................................. $ 171,028 $ 134,682 $ 114,792 $ 122,839 $ 130,135
Ratios to average net assets:
Expenses (net of fees waived) (a).............................. 0.20% 0.20% 0.20% 0.20% 0.20%
Net investment income.......................................... 5.08% 3.66% 1.63% 0.99% 1.60%
Management and administration fees waived...................... 0.03% 0.06% 0.08% 0.06% 0.06%
Transfer agency fees waived.................................... -- 0.02% 0.02% 0.02% 0.02%
Expenses paid indirectly....................................... 0.00% 0.00% 0.00% 0.00% 0.00%
(a) Includes expenses paid indirectly.
The accompanying notes are an integral part of these financial statements.
- -------------------------------------------------------------------------------
DAILY INCOME FUND (Formerly Institutional Daily Income Fund)
MONEY MARKET PORTFOLIO
FINANCIAL HIGHLIGHTS (CONTINUED)
===============================================================================
Commencement of Operations
November 28, 2006 through
Investor shares March 31, 2007
- --------------- --------------
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................................................ 0.016
Net realized and unrealized gain(loss) on investments .............. 0.000
--------
Total from investment operations..................................... 0.016
Less distributions from:
Dividends from net investment income................................. (0.016)
Net realized gain on investments..................................... (0.000)
--------
Total Distributions.................................................. (0.016)
--------
Net asset value, end of period......................................... $ 1.00
========
Total Return........................................................... 1.62%(a)
Ratios/Supplemental Data
Net assets, end of period (000's)...................................... $ 151,947
Ratios to average net assets:
Expenses (net of fees waived) (b).................................... 0.65%(c)
Net investment income................................................ 4.76%(c)
Management and administration fees waived............................ 0.03%(c)
Transfer Agency Account fee waiver................................... 0.03%(c)
Expenses paid indirectly............................................. 0.00%(c)
Commencement of Operations
February 12, 2007 through
Short-Term Income shares March 31, 2007
- ------------------------ --------------
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................................................ 0.006
Net realized and unrealized gain(loss) on investments .............. 0.000
--------
Total from investment operations..................................... 0.006
Less distributions from:
Dividends from net investment income................................. (0.006)
Net realized gain on investments..................................... (0.000)
---------
Total Distributions.................................................. (0.006)
---------
Net asset value, end of period......................................... $ 1.00
=========
Total Return........................................................... 0.59%(a)
Ratios/Supplemental Data
Net assets, end of period (000's)...................................... $ 57,097
Ratios to average net assets:
Expenses (net of fees waived) (b).................................... 0.94%(c)
Net investment income................................................ 4.47%(c)
Management and administration fees waived............................ 0.03%(c)
Expenses paid indirectly............................................. 0.00%(c)
(a) Not annualized
(b) Includes expenses paid indirectly.
(c) Annualized
The accompanying notes are an integral part of these financial statements.
- -------------------------------------------------------------------------------
===============================================================================
Commencement of Operations
November 28, 2006 through
Retail shares March 31, 2007
- ------------- --------------
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................................................ 0.015
Net realized and unrealized gain(loss) on investments .............. 0.000
--------
Total from investment operations..................................... 0.015
Less distributions from:
Dividends from net investment income................................. (0.015)
Net realized gain on investments..................................... (0.000)
--------
Total Distributions.................................................. (0.015)
--------
Net asset value, end of period......................................... $ 1.00
========
Total Return........................................................... 1.49%(a)
Ratios/Supplemental Data
Net assets, end of period (000's)...................................... $ 897,904
Ratios to average net assets:
Expenses (net of fees waived) (b).................................... 1.00%(c)
Net investment income................................................ 4.39%(c)
Management and administration fees waived............................ 0.03%(c)
Distribution fees waived............................................. 0.10%(c)
Transfer Agency Account fees waived.................................. 0.03%(c)
Expenses paid indirectly............................................. 0.00%(c)
Commencement of Operations
November 1, 2006 through
Advantage shares March 31, 2007
- ---------------- --------------
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................................................ 0.018
Net realized and unrealized gain(loss) on investments .............. 0.000
--------
Total from investment operations..................................... 0.018
Less distributions from:
Dividends from net investment income................................. (0.018)
Net realized gain on investments..................................... (0.000)
--------
Total Distributions.................................................. (0.018)
--------
Net asset value, end of period......................................... $ 1.00
========
Total Return........................................................... 1.81%(a)
Ratios/Supplemental Data
Net assets, end of period (000's)...................................... $3,113,588
Ratios to average net assets:
Expenses (net of fees waived) (b).................................... 1.02%(c)
Net investment income................................................ 4.35%(c)
Management and administration fees waived............................ 0.03%(c)
Distribution fees waived............................................. 0.16%(c)
Sub-Accounting fees waived........................................... 0.10%(c)
Expenses paid indirectly............................................. 0.00%(c)
(a) Not annualized
(b) Includes expenses paid indirectly.
(c) Annualized
The accompanying notes are an integral part of these financial statements.
- -------------------------------------------------------------------------------
DAILY INCOME FUND (Formerly Institutional Daily Income Fund)
U.S. TREASURY PORTFOLIO
EXPENSE CHART
FOR THE SIX MONTHS ENDED MARCH 31, 2007
(UNAUDITED)
===============================================================================
As a shareholder of the Portfolio, you incur the following ongoing costs:
management fees and other Portfolio expenses. You may also incur distribution
and/or service (12b-1) fees. This example is intended to help you understand
your ongoing costs (in dollars) of investing in the Portfolio and to compare
these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the
period and held for the entire period through March 31, 2007.
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.
- ----------------------------------------------------------------------------------------------------------------------------
Institutional Shares (Formerly Class B) Beginning Account Ending Account Value Expenses Paid Annualized
& Pinnacle Shares (a) Value 10/01/06 03/31/07 During the period Expense Ratio
- ----------------------------------------------------------------------------------------------------------------------------
Actual $1,000.00 $1,025.40 $1.01 0.20%
- ----------------------------------------------------------------------------------------------------------------------------
Hypothetical (5% return before $1,000.00 $1,023.93 $1.01 0.20%
expenses) (a)
- ----------------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------------
Institutional Service Shares Beginning Account Ending Account Value Expenses Paid Annualized
(Formerly Class A) (a) Value 10/01/06 03/31/07 During the Period Expense Ratio
- ----------------------------------------------------------------------------------------------------------------------------
Actual $1,000.00 $1,024.10 $2.27 0.45%
- ----------------------------------------------------------------------------------------------------------------------------
Hypothetical (5% return before expenses) $1,000.00 $1,022.69 $2.27 0.45%
- ----------------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------------
Investor Shares Beginning Account Ending Account Value Expenses Paid Annualized
Value 02/21/07 03/31/07 During the Period Expense Ratio
- ----------------------------------------------------------------------------------------------------------------------------
Actual (b) $1,000.00 $1,004.90 $0.67 0.63%
- ----------------------------------------------------------------------------------------------------------------------------
Hypothetical (5% return before $1,000.00 $1,021.79 $3.18 0.63%
expenses)(a)
- ----------------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------------
Short Term Income Shares Beginning Account Ending Account Value Expenses Paid Annualized
Value 12/12/06 03/31/07 During the Period Expense Ratio
- ----------------------------------------------------------------------------------------------------------------------------
Actual (c) $1,000.00 $1,018.00 $3.73 0.90%
- ----------------------------------------------------------------------------------------------------------------------------
Hypothetical (5% return before $1,000.00 $1,020.44 $4.53 0.90%
expenses) (a)
- ----------------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
===============================================================================
- ----------------------------------------------------------------------------------------------------------------------------
Retail Shares Beginning Account Ending Account Value Expenses Paid Annualized
Value 11/02/06 03/31/07 During the Period Expense Ratio
- ----------------------------------------------------------------------------------------------------------------------------
Actual (d) $1,000.00 $1,012.80 $3.03 1.00%
- ----------------------------------------------------------------------------------------------------------------------------
Hypothetical (5% return before $1,000.00 $1,019.95 $5.04 1.00%
expenses)(a)
- ----------------------------------------------------------------------------------------------------------------------------
(a) Expenses are equal to the Fund's annualized expense ratios multiplied by
the average account value over the period (October 1, 2006 through March
31, 2007), multiplied by 182/365 (to reflect the most recent fiscal
half-year).
(b) Expenses are equal to the Fund's annualized expense ratios multiplied by
the average account value over the period (February 21, 2007 through March
31, 2007), multiplied by 39/365 (to reflect the most recent fiscal
half-year).
(c) Expenses are equal to the Fund's annualized expense ratios multiplied by
the average account value over the period (November 2, 2006 through March
31, 2007), multiplied by 150/365 (to reflect the most recent fiscal
half-year).
(d) Expenses are equal to the Fund's annualized expense ratios multiplied by
the average account value over the period (December 12, 2006 through March
31, 2007), multiplied by 110/365 (to reflect the most recent fiscal
half-year).
- -------------------------------------------------------------------------------
DAILY INCOME FUND (Formerly Institutional Daily Income Fund)
U.S. TREASURY PORTFOLIO
SCHEDULE OF INVESTMENTS
MARCH 31, 2007
===============================================================================
Face Maturity Value
Amount Date Yield (Note 1)
------ ------ ------- --------
Repurchase Agreements (48.51%)
- -----------------------------------------------------------------------------------------------------------------------------------
$ 93,000,000 Bank of America Securities, LLC, purchased on 03/30/07, repurchase
proceeds at maturity $93,039,525 (Collateralized by $94,655,000,
U.S. Treasury Note, 4.375%, due 01/31/08, value $94,860,370) 04/02/07 5.10% $ 93,000,000
195,000,000 Bear, Stearns & Co., Inc., purchased on 03/30/07, repurchase
proceeds at maturity $195,086,450 (Collateralized by $274,142,275,
GNMA, 3.50% to 13.00%, due 09/15/07 to 03/20/37, value
$198,903,344) 04/02/07 5.32 195,000,000
105,000,000 Merrill Lynch Pierce Fenner & Smith Co., purchased on 03/30/07,
repurchase proceeds at maturity $105,045,063 (Collateralized by
105,840,000, U.S. Treasury Note, 4.875%, 01/31/09,
value $107,104,865) 04/02/07 5.15 105,000,000
110,000,000 UBS Securities, LLC, purchased on 03/30/07, repurchase proceeds at
maturity $110,047,117 (Collateralized by $251,649,000, TINT, 0.000%,
due 05/15/20 to 02/15/28, value $105,683,838, TPRX, 5.375%,
due 02/15/31, value $6,516,945) 04/02/07 5.14 110,000,000
- ---------------- --------------
503,000,000 Total Repurchase Agreements 503,000,000
- ---------------- --------------
U.S. Government Obligations (51.56%)
- -----------------------------------------------------------------------------------------------------------------------------------
$ 425,000,000 U.S. Treasury Bill 04/05/07 4.89% $ 424,767,194
10,000,000 U.S. Treasury Bill 04/05/07 4.88 9,994,578
55,000,000 U.S. Treasury Note, 3.125% 05/15/07 4.94 54,884,570
25,000,000 U.S. Treasury Note, 3.125% 05/15/07 5.02 24,945,027
20,000,000 U.S. Treasury Note, 3.125% 05/15/07 5.06 19,955,005
- ---------------- --------------
535,000,000 Total U.S. Government Obligations 534,546,374
- ---------------- --------------
Total Investments (100.07%) (cost $1,037,546,374+) 1,037,546,374
Liabilities in excess of cash and other assets (-0.07%) (757,197)
--------------
Net Assets (100.00%) $1,036,789,177
--------------
+ Aggregate cost for federal income tax purposes is identical.
KEY:
GNMA = Government National Mortgage Association
TINT = U.S. Treasury Interest Strip
TPRX = U.S. Treasury Principal Strip
BREAKDOWN OF PORTFOLIO HOLDINGS BY MATURITY:
- -------------------------------------------------------------------------------
Securities Maturing in Value % of Portfolio
- -------------------------------------------------------------------------------
Less than 31 Days $ 937,761,772 90.38%
31 through 60 Days 99,784,602 9.62
61 through 90 Days -- 0.00
91 through 120 Days -- 0.00
121 through 180 Days -- 0.00
Over 180 Days -- 0.00
- ------------------------------ ------------------------ -----------------------
Total $1,037,546,374 100.00%
- ------------------------------ ------------------------ -----------------------
The accompanying notes are an integral part of these financial statements.
- -------------------------------------------------------------------------------
DAILY INCOME FUND (Formerly Institutional Daily Income Fund)
U.S. TREASURY PORTFOLIO
STATEMENT OF ASSETS AND LIABILITIES
MARCH 31, 2007
- -------------------------------------------------------------------------------
ASSETS
Investments in securities, at amortized cost (Note 1)............................. $ 534,546,374
Repurchase agreements............................................................. 503,000,000
Cash.............................................................................. 304,157
Accrued interest receivable....................................................... 1,328,102
Prepaid expenses.................................................................. 46,909
------------------
Total assets............................................................... 1,039,225,542
------------------
LIABILITIES
Payable to affiliates*............................................................ 183,359
Accrued expenses.................................................................. 137,563
Dividends payable................................................................. 2,111,391
Other Payables.................................................................... 4,052
------------------
Total liabilities.......................................................... 2,436,365
------------------
Net assets........................................................................ $ 1,036,789,177
==================
SOURCE OF NET ASSETS
Net capital paid in on shares of capital stock (Note 3)........................... $ 1,036,789,177
------------------
Net assets........................................................................ $ 1,036,789,177
==================
Net asset value, per share (Note 3):
Class Name Net Assets Shares Outstanding Net Asset Value
Institutional (Formerly Class B) Shares..... $590,254,090 590,254,090 $1.00
Institutional Service (Formerly Class A) Shares $248,961,585 248,961,585 $1.00
Pinnacle Shares............................. $39,627,911 39,627,911 $1.00
Investor Shares............................. $134,910,723 134,910,723 $1.00
Short Term Income Shares.................... $22,663,323 22,663,323 $1.00
Retail Shares............................... $371,545 371,545 $1.00
* Includes fees payable to Reich & Tang Asset Management, LLC, Reich & Tang
Distributors, Inc. and Reich & Tang Services, Inc.
The accompanying notes are an integral part of these financial statemnets.
- -------------------------------------------------------------------------------
DAILY INCOME FUND (Formerly Institutional Daily Income Fund)
U.S. TREASURY PORTFOLIO
STATEMENT OF OPERATIONS
FOR THE YEAR ENDED MARCH 31, 2007
===============================================================================
INVESTMENT INCOME
Income:
Interest........................................................................ $ 46,034,837
------------------
Expenses: (Note 2)
Investment management fee....................................................... 1,083,718
Administration fee.............................................................. 451,549
Shareholder servicing fee (Institutional Service - Formerly Class A)............ 553,034
Shareholder servicing fee (Investor Shares - Note 1)............................ 24,314
Shareholder servicing fee (Short-Term Income Shares - Note 1)................... 17,918
Shareholder servicing fee (Retail Shares - Note 1).............................. 304
Distribution fee (Investor Shares - Note 1)..................................... 19,451
Distribution fee (Short-Term Income Shares - Note 1)............................ 32,253
Distribution fee (Retail Shares - Note 1)....................................... 790
Custodian expenses.............................................................. 36,508
Shareholder servicing and related shareholder expenses+......................... 207,279
Legal, compliance and filing fees............................................... 110,906
Audit and accounting............................................................ 113,288
Trustees' fees and expenses..................................................... 54,364
Other........................................................................... 26,478
------------------
Total expenses.................................................................. 2,732,154
Less: Fees waived (Note 2)............................................... (269,880)
Expense paid indirectly (Note 2)................................... (10,096)
------------------
Net expenses.................................................................... 2,452,178
------------------
Net investment income........................................................... 43,582,659
REALIZED GAIN (LOSS) ON INVESTMENTS
Net realized gain on investments.................................................... -0-
------------------
Increase in net assets from operations.............................................. $ 43,582,659
==================
+ Includes class specific transfer agency expenses of $126,579, $44,240,
$6,394, $4,770, $3,607, and $60 for the Institutional (Formerly Class B),
Institutional Service (Formerly Class A), Pinnacle, Investor, Short Term
Income, and Retail Shares, respectively.
The accompanying notes are an integral part of these financial sattements.
- -------------------------------------------------------------------------------
DAILY INCOME FUND (Formerly Institutional Daily Income Fund)
U.S. TREASURY PORTFOLIO
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED MARCH 31, 2007 AND 2006
===============================================================================
2007 2006
INCREASE (DECREASE) IN NET ASSETS ----- ----
Operations:
Net investment income......................................... $ 43,582,659 $ 28,863,097
Net realized gain (loss) on investments....................... -0- 1,672
--------------- ----------------
Increase in net assets from operations............................ 43,582,659 28,864,769
Dividends to shareholders from net investment income:
Institutional Shares (Formerly Class B)....................... (30,970,760) (19,126,850)
Institutional Service Shares (Formerly Class A)............... (10,279,709) (8,591,800)
Pinnacle Shares............................................... (1,567,484) (1,144,447)
Investor Shares............................................... (449,775) -0-
Short-Term Income Shares...................................... (309,804) -0-
Retail Shares................................................. (5,127) -0-
--------------- ----------------
Total dividends to shareholders.......................... (43,582,659) (28,863,097)
--------------- ----------------
Distributions to shareholders from realized gains on investments:
Institutional Shares (Formerly Class B)....................... -0- (349)
Institutional Service Shares (Formerly Class A)............... -0- (180)
Pinnacle Shares............................................... -0- (22)
Investor Shares............................................... -0- -0-
Short-Term Income Shares...................................... -0- -0-
Retail Shares................................................. -0- -0-
--------------- ----------------
Total distributions to shareholders...................... -0- (551)
--------------- ----------------
Capital share transactions (Note 3):
Institutional Shares (Formerly Class B)....................... (239,459,937) 346,279,295
Institutional Service Shares (Formerly Class A)............... (55,206,814) 67,546,979
Pinnacle Shares............................................... 11,123,008 (11,304,642)
Investor Shares............................................... 134,910,723 -0-
Short-Term Income Shares...................................... 22,663,323 -0-
Retail Shares................................................. 371,545 -0-
--------------- ----------------
Total capital share transactions........................ (125,598,152) 402,521,632
--------------- ----------------
Total increase (decrease) .................................... (125,598,152) 402,522,753
Net assets:
Beginning of year............................................. 1,162,387,329 759,864,576
--------------- ----------------
End of year.................................................. $ 1,036,789,177 $ 1,162,387,329
=============== ================
Undistributed net investment income............................... $ -0- $ -0-
=============== ================
The accomapnying notes are an integral part of these financial statements.
- -------------------------------------------------------------------------------
DAILY INCOME FUND (Formerly Institutional Daily Income Fund)
U.S. TREASURY PORTFOLIO
FINANCIAL HIGHLIGHTS
===============================================================================
Institutional For the Years Ended March 31,
------------------------------------------------------------
(Formerly Class B) shares 2007 2006 2005 2004 2003
- ------------------------- --------- --------- --------- --------- ---------
Per Share Operating Performance:
Net asset value, beginning of year.............................. $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
--------- --------- --------- --------- ---------
Income from investment operations:
Net investment income......................................... 0.049 0.034 0.014 0.009 0.015
Net realized and unrealized gain(loss) on investments........ -- 0.000 0.000 0.000 --
--------- --------- --------- --------- ---------
Total from investment operations.............................. 0.049 0.034 0.014 0.009 0.015
Less distributions from:
Dividends from net investment income.......................... (0.049) (0.034) (0.014) (0.009) (0.015)
Net realized gain(loss) on investment......................... -- (0.000) (0.000) (0.000) --
--------- --------- --------- --------- ---------
Total Distributions........................................... (0.049) (0.034) (0.014) (0.009) (0.015)
--------- --------- --------- --------- ---------
Net asset value, end of year.................................... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
========= ========= ========= ========= =========
Total Return.................................................... 5.02% 3.48% 1.44% 0.91% 1.53%
Ratios/Supplemental Data
Net assets, end of year (000's)................................. $ 590,254 $ 829,714 $ 484,434 $ 466,041 $ 383,677
Ratios to average net assets:
Expenses (net of fees waived) (a)............................. 0.20% 0.20% 0.20% 0.20% 0.20%
Net investment income......................................... 4.89% 3.51% 1.45% 0.90% 1.51%
Management and administration fees waived..................... 0.03% 0.05% 0.03% 0.04% 0.03%
Expenses paid indirectly...................................... 0.00% 0.00% 0.00% 0.00% 0.00%
Institutional Service For the Years Ended March 31,
------------------------------------------------------------
(Formerly Class A) shares 2007 2006 2005 2004 2003
- --------------------------- --------- --------- --------- --------- ---------
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......................................... 0.047 0.032 0.012 0.007 0.013
Net realized and unrealized gain(loss) on investments........ -- 0.000 0.000 0.000 --
--------- --------- --------- --------- ---------
Total from investment operations.............................. 0.047 0.032 0.012 0.007 0.013
Less distributions from:
Dividends from net investment income.......................... (0.047) (0.032) (0.012) (0.007) (0.013)
Net realized gain(loss) on investment......................... -- (0.000) (0.000) (0.000) --
--------- --------- --------- --------- ---------
Total Distributions........................................... (0.047) (0.032) (0.012) (0.007) (0.013)
--------- --------- --------- --------- ---------
Net asset value, end of year.................................... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
========= ========= ========= ========= =========
Total Return.................................................... 4.76% 3.22% 1.19% 0.66% 1.28%
Ratios/Supplemental Data
Net assets, end of year (000's)................................. $ 248,962 $ 304,168 $ 236,621 $ 261,931 $ 276,174
Ratios to average net assets:
Expenses (net of fees waived) (a)............................. 0.45% 0.45% 0.45% 0.45% 0.45%
Net investment income......................................... 4.65% 3.17% 1.18% 0.66% 1.28%
Management and administration fees waived..................... 0.03% 0.05% 0.03% 0.04% 0.03%
Expenses paid indirectly...................................... 0.00% 0.00% 0.00% 0.00% 0.00%
(a) Includes expenses paid indirectly.
The accompanying notes are an integral part of these financial statements.
- -------------------------------------------------------------------------------
===============================================================================
For the Years Ended March 31,
------------------------------------------------------------
Pinnacle shares 2007 2006 2005 2004 2003
- ---------------- --------- --------- --------- --------- ---------
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.......................................... 0.049 0.034 0.014 0.009 0.015
Net realized and unrealized gain(loss) on investments......... -- 0.000 0.000 0.000 --
--------- --------- --------- --------- ---------
Total from investment operations............................... 0.049 0.034 0.014 0.009 0.015
Less distributions from:
Dividends from net investment income........................... (0.049) (0.034) (0.014) (0.009) (0.015)
Net realized gain(loss) on investment.......................... -- (0.000) (0.000) (0.000) --
--------- --------- --------- --------- ---------
Total Distributions............................................ (0.049) (0.034) (0.014) (0.009) (0.015)
--------- --------- --------- --------- ---------
Net asset value, end of year..................................... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
========= ========= ========= ========= =========
Total Return..................................................... 5.02% 3.48% 1.44% 0.91% 1.53%
Ratios/Supplemental Data
Net assets, end of year (000's).................................. $ 39,628 $ 28,505 $ 39,809 $ 29,252 $ 25,526
Ratios to average net assets:
Expenses (net of fees waived) (a).............................. 0.20% 0.20% 0.20% 0.20% 0.20%
Net investment income.......................................... 4.93% 3.51% 1.45% 0.90% 1.51%
Management and administration fees waived...................... 0.03% 0.05% 0.03% 0.04% 0.03%
Expenses paid indirectly....................................... 0.00% 0.00% 0.00% 0.00% 0.00%
(a) Includes expenses paid indirectly.
The accompanying notes are an integral part of these financial statements.
- -------------------------------------------------------------------------------
DAILY INCOME FUND (Formerly Institutional Daily Income Fund)
U.S. TREASURY PORTFOLIO
FINANCIAL HIGHLIGHTS (CONTINUED)
===============================================================================
Commencement of Operations
February 21, 2007 through
Investor shares March 31, 2007
- --------------- --------------
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............................................... 0.005
Net realized and unrealized gain(loss) on investments .............. --
--------
Total from investment operations.................................... 0.005
Less distributions from:
Dividends from net investment income................................ (0.005)
Net realized gain on investments.................................... --
--------
Total Distributions................................................. (0.005)
--------
Net asset value, end of period......................................... $ 1.00
========
Total Return........................................................... 0.50%(a)
Ratios/Supplemental Data
Net assets, end of period (000's)...................................... $134,911
Ratios to average net assets:
Expenses (net of fees waived) (b)................................... 0.63%(c)
Net investment income............................................... 4.62%(c)
Management and Administration fees waived........................... 0.03%(c)
Distribution fee waiver............................................. 0.05%(c)
Expenses paid indirectly............................................ 0.00%(c)
Commencement of Operations
November 2, 2006 through
Short-Term Income shares March 31, 2007
- ------------------------ --------------
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............................................... 0.018
Net realized and unrealized gain(loss) on investments .............. --
--------
Total from investment operations.................................... 0.018
Less distributions from:
Dividends from net investment income................................ (0.018)
Net realized gain on investments.................................... --
--------
Total Distributions................................................. (0.018)
--------
Net asset value, end of period......................................... $ 1.00
========
Total Return........................................................... 1.80%(a)
Ratios/Supplemental Data
Net assets, end of period (000's)...................................... $ 22,663
Ratios to average net assets:
Expenses (net of fees waived) (b)................................... 0.90%(c)
Net investment income............................................... 4.32%(c)
Management and Administration fees waived........................... 0.03%(c)
Distribution fee waiver............................................. 0.03%(c)
Expenses paid indirectly............................................ 0.00%(c)
(a) Not annualized
(b) Includes expenses paid indirectly.
(c) Annualized
The accompanying notes are an integral part of these financial statements.
- -------------------------------------------------------------------------------
===============================================================================
Commencement of Operations
December 12, 2006 through
Retail shares March 31, 2007
- -------------- --------------
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............................................... 0.013
Net realized and unrealized gain(loss) on investments ............. --
--------
Total from investment operations.................................... 0.013
Less distributions from:
Dividends from net investment income................................ (0.013)
Net realized gain on investments.................................... --
--------
Total Distributions................................................. (0.013)
--------
Net asset value, end of period......................................... $ 1.00
========
Total Return........................................................... 1.28%(a)
Ratios/Supplemental Data
Net assets, end of period (000's)...................................... $ 371
Ratios to average net assets:
Expenses (net of fees waived) (b)................................... 1.00%(c)
Net investment income............................................... 4.22%(c)
Management and Administration fees waived........................... 0.03%(c)
Distribution fees waived............................................ 0.10%(c)
Transfer Agency Account fees waived................................. 0.03%(c)
Expenses paid indirectly............................................ 0.00%(c)
(a) Not annualized
(b) Includes expenses paid indirectly
(c) Annualized
The accompanying notes are an integral part of these financial statements.
- -------------------------------------------------------------------------------
DAILY INCOME FUND (Formerly Institutional Daily Income Fund)
U.S. GOVERNMENT PORTFOLIO
EXPENSE CHART
FOR THE PERIOD ENDED MARCH 31, 2007
(UNAUDITED)
===============================================================================
As a shareholder of the Portfolio, you incur the following ongoing costs:
management fees and other Portfolio expenses. You may also incur distribution
and/or service (12b-1) fees. This example is intended to help you understand
your ongoing costs (in dollars) of investing in the Portfolio and to compare
these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the
period and held for the entire period through March 31, 2007.
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.
- ---------------------------------------------------------------------------------------------------------------------------
Beginning Account Ending Account Value Expenses Paid Annualized
Institutional Shares Value 10/30/06 03/31/07 During the Period Expense Ratio
- ---------------------------------------------------------------------------------------------------------------------------
Actual (c) $1,000.00 $1,008.80 $0.84 0.20%
- ---------------------------------------------------------------------------------------------------------------------------
Hypothetical (5% return before $1,000.00 $1,023.93 $1.01 0.20%
expenses) (a)
- ---------------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------------
Beginning Account Ending Account Value Expenses Paid Annualized
Institutional Service Shares Value 03/19/07 03/31/07 During the Period Expense Ratio
- ---------------------------------------------------------------------------------------------------------------------------
Actual (b) $1,000.00 $1,001.70 $0.16 0.45%
- ---------------------------------------------------------------------------------------------------------------------------
Hypothetical (5% return before $1,000.00 $1,022.69 $2.27 0.45%
expenses) (a)
- ---------------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------------
Beginning Account Ending Account Value Expenses Paid Annualized
Retail Shares Value 12/12/06 03/31/07 During the Period Expense Ratio
- ---------------------------------------------------------------------------------------------------------------------------
Actual (d) $1,000.00 $1,013.00 $3.03 1.00%
- ---------------------------------------------------------------------------------------------------------------------------
Hypothetical (5% return before $1,000.00 $1,019.95 $5.04 1.00%
expenses)(a)
- ---------------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
===============================================================================
- ---------------------------------------------------------------------------------------------------------------------------
Beginning Account Ending Account Value Expenses Paid During Annualized
Advantage Shares Value 11/02/06 03/31/07 the Period Expense Ratio
- ---------------------------------------------------------------------------------------------------------------------------
Actual (e) $1,000.00 $1,017.70 $4.23 1.02%
- ---------------------------------------------------------------------------------------------------------------------------
Hypothetical (5% return before $1,000.00 $1,019.85 $5.14 1.02%
expenses)(a)
- ---------------------------------------------------------------------------------------------------------------------------
(a) Expenses are equal to the Fund's annualized expense ratios multiplied by
the average account value over the period (October 1, 2006 through March
31, 2007), multiplied by 182/365 (to reflect the most recent fiscal
half-year).
(b) Expenses are equal to the Fund's annualized expense ratios multiplied by
the average account value over the period (March 19, 2007 through March 31,
2007), multiplied by 13/365 (to reflect the most recent fiscal half-year).
(c) Expenses are equal to the Fund's annualized expense ratios multiplied by
the average account value over the period (October 30, 2006 through March
31, 2007), multiplied by 153/365 (to reflect the most recent fiscal
half-year).
(d) Expenses are equal to the Fund's annualized expense ratios multiplied by
the average account value over the period (December 12, 2006 through March
31, 2007), multiplied by 110/365 (to reflect the most recent fiscal
half-year).
(e) Expenses are equal to the Fund's annualized expense ratios multiplied by
the average account value over the period (November 2, 2006 through March
31, 2007), multiplied by 150/365 (to reflect the most recent fiscal
half-year).
- -------------------------------------------------------------------------------
DAILY INCOME FUND (Formerly Institutional Daily Income Fund)
U.S. GOVERNMENT PORTFOLIO
SCHEDULE OF INVESTMENTS
MARCH 31, 2007
===============================================================================
Face Maturity Current Value
Amount Date Coupon (1) (Note 1)
------ ------ ---------- --------
Floating Rate Securities (2.39%)
- -----------------------------------------------------------------------------------------------------------------------------------
$ 5,000,000 Student Loan Marketing Association (2) 01/25/08 5.44% $ 5,004,139
1,000,000 Student Loan Marketing Association (3) 07/25/07 5.58 1,000,794
- ---------------- -------------
6,000,000 Total Floating Rate Securities 6,004,933
- ---------------- -------------
Loan Participations (9.57%)
- -----------------------------------------------------------------------------------------------------------------------------------
$ 24,000,000 Army and Air Force Exchange Service with JPMorgan Chase & Co. 04/18/07 5.31% $ 24,000,000
- ---------------- -------------
24,000,000 Total Loan Participations 24,000,000
- ---------------- -------------
Repurchase Agreements (48.63%)
- -----------------------------------------------------------------------------------------------------------------------------------
$ 37,000,000 Bank of America Securities, LLC, purchased on 03/30/07, repurchase
proceeds at maturity $37,016,188 (Collateralized by $39,387,679,
GNMA, 6.00%, due 05/20/36 value $37,740,001) 04/02/07 5.25% $ 37,000,000
35,000,000 Citigroup Global Markets Inc, purchased on 03/30/07, repurchase
proceeds at maturity $35,015,458 (Collateralized by $543,180,276,
GNMA, 0.76% to 5.00%, due 06/16/29 to 03/20/35,
value $35,700,001) 04/02/07 5.30 35,000,000
50,000,000 UBS Securities, LLC, purchased on 03/30/07, repurchase proceeds at
maturity $50,022,208 (Collateralized by $49,311,000, FNMA, 5.00%
to 6.625%, due 09/15/09 to 02/13/17, value $51,001,172) 04/02/07 5.33 50,000,000
- ---------------- -------------
122,000,000 Total Repurchase Agreements 122,000,000
- ---------------- -------------
U.S. Government Agency Discount Notes (23.70%)
- -----------------------------------------------------------------------------------------------------------------------------------
$ 5,000,000 Federal Farm Credit 08/14/07 5.26% $ 4,904,375
5,000,000 Federal Home Loan Bank 04/04/07 5.16 4,997,854
5,000,000 Federal Home Loan Bank 04/11/07 5.16 4,992,847
1,744,000 Federal Home Loan Bank 04/20/07 5.17 1,739,256
1,000,000 Federal Home Loan Mortgage Corporation 04/03/07 5.18 999,718
1,000,000 Federal Home Loan Mortgage Corporation 05/08/07 5.23 994,767
5,000,000 Federal Home Loan Mortgage Corporation 06/04/07 5.20 4,954,311
5,000,000 Federal Home Loan Mortgage Corporation 09/20/07 5.26 4,878,358
791,000 Federal National Mortgage Association 04/04/07 5.19 790,665
2,000,000 Federal National Mortgage Association 04/09/07 5.22 1,997,733
5,000,000 Federal National Mortgage Association 04/25/07 5.22 4,982,717
2,000,000 Federal National Mortgage Association 05/02/07 5.20 1,991,199
1,000,000 Federal National Mortgage Association 05/02/07 5.24 995,604
5,645,000 Federal National Mortgage Association 06/20/07 5.20 5,580,522
5,000,000 Federal National Mortgage Association 06/27/07 5.21 4,938,653
5,000,000 Federal National Mortgage Association 10/12/07 5.22 4,864,739
5,000,000 Federal National Mortgage Association 10/26/07 5.24 4,854,256
- ---------------- -------------
60,180,000 Total U.S. Government Agency Discount Notes 59,457,574
- ---------------- -------------
U.S. Government Agency Medium Term Notes (16.12%)
- -----------------------------------------------------------------------------------------------------------------------------------
$ 5,000,000 Federal Home Loan Bank 08/23/07 5.18% $ 4,986,933
5,000,000 Federal Home Loan Bank 01/11/08 5.32 5,000,000
5,000,000 Federal Home Loan Bank (4) 03/20/08 5.25 5,000,000
5,000,000 Federal Home Loan Bank (5) 04/09/08 5.38 5,000,000
The accompanying notes are an integral part of these financial statements.
- -------------------------------------------------------------------------------
===============================================================================
Face Maturity Current Value
Amount Date Coupon (1) (Note 1)
------ ------ ---------- --------
U.S. Government Agency Medium Term Notes (continued)
- -----------------------------------------------------------------------------------------------------------------------------------
$ 5,000,000 Federal Home Loan Mortgage Corporation (4) 01/28/08 5.21% $ 4,991,881
5,000,000 Federal Home Loan Mortgage Corporation (4) 03/27/08 5.36 5,000,000
2,500,000 Federal National Mortgage Association (4) 07/17/07 5.20 2,481,702
5,000,000 Federal National Mortgage Association 09/14/07 5.22 4,994,102
3,000,000 Federal National Mortgage Association 11/21/07 5.25 2,997,514
- ---------------- -------------
40,500,000 Total U.S. Government Agency Medium Term Notes 40,452,132
- ---------------- -------------
Total Investments (100.41%) (cost $251,914,639+) 251,914,639
Liabilities in excess of cash and other assets (-0.41%) (1,016,118)
-------------
Net Assets (100.00%) $ 250,898,521
=============
+ Aggregate cost for federal income tax purposes is identical.
FOOTNOTES:
1) The interest rate shown reflects the security's current coupon, unless
yield is available.
2) Rate changes every three months based on three month LIBOR plus 0.22%.
3) Rate changes every three months based on three month LIBOR plus 0.08%.
4) Callable on a quarterly basis.
5) One time call on September 20, 2007.
KEY:
GNMA = Government National Mortgage Association
FNMA = Federal National Mortgage Association
BREAKDOWN OF PORTFOLIO HOLDINGS BY MATURITY:
- -------------------------------------------------------------------------------
Securities Maturing in Value % of Portfolio
- ------------------------------- ---------------------------- ------------------
Less than 31 Days $ 172,505,724 68.48%
31 through 60 Days 3,981,570 1.58
61 through 90 Days 15,473,486 6.14
91 through 120 Days 2,481,702 0.98
121 through 180 Days 19,763,767 7.85
Over 180 Days 37,708,390 14.97
- ------------------------------- ---------------------------- ------------------
Total $251,914,639 100.00%
- ------------------------------- ---------------------------- ------------------
The accompanying notes are an integral part of these financial statements.
- -------------------------------------------------------------------------------
DAILY INCOME FUND (Formerly Institutional Daily Income Fund)
U.S. GOVERNMENT PORTFOLIO
STATEMENT OF ASSETS AND LIABILITIES
MARCH 31, 2007
===============================================================================
ASSETS
Investments in securities, at amortized cost (Note 1)............................. $ 129,914,639
Repurchase agreements............................................................. 122,000,000
Accrued interest receivable....................................................... 338,464
Prepaid expenses.................................................................. 20,803
------------------
Total assets............................................................... 252,273,906
------------------
LIABILITIES
Payable to affiliates*............................................................ 92,853
Due to Custodian.................................................................. 747,049
Accrued expenses.................................................................. 70,173
Dividends payable................................................................. 459,772
Other payables.................................................................... 5,538
------------------
Total liabilities.......................................................... 1,375,385
------------------
Net assets........................................................................ $ 250,898,521
==================
SOURCE OF NET ASSETS
Net capital paid in on shares of capital stock (Note 3)........................... $ 250,898,521
------------------
Net assets........................................................................ $ 250,898,521
==================
Net asset value, per share (Note 3):
Class Name Net Assets Shares Outstanding Net Asset Value
Institutional Service Shares................ $10,000 10,000 $1.00
Institutional Shares........................ $10,000 10,000 $1.00
Retail Shares............................... $57,051,170 57,051,170 $1.00
Advantage Shares............................ $193,827,351 193,827,351 $1.00
* Includes fees payable to Reich & Tang Asset Management, LLC, Reich & Tang
Distributors, Inc. and Reich & Tang Services, Inc.
The accompanying notes are an integral part of these financial statements.
- -------------------------------------------------------------------------------
DAILY INCOME FUND (Formerly Institutional Daily Income Fund)
U.S. GOVERNMENT PORTFOLIO
STATEMENT OF OPERATIONS
FOR THE PERIOD OCTOBER 16, 2006 (Commencement of Operations)
THROUGH MARCH 31, 2007
===============================================================================
INVESTMENT INCOME
Income:
Interest........................................................................ $ 3,533,184
------------------
Expenses: (Note 2)
Investment management fee....................................................... 80,252
Administration fee.............................................................. 33,438
Shareholder servicing fee (Institutional Service Shares - Note 1)............... 1
Shareholder servicing fee (Retail Shares - Note 1).............................. 11,031
Shareholder servicing fee (Advantage Shares - Note 1)........................... 144,152
Distribution fee (Retail Shares - Note 1)....................................... 28,681
Distribution fee (Advantage Shares - Note 1).................................... 432,454
Sub-Accounting fee (Advantage Shares - Note 1).................................. 57,661
Custodian expenses.............................................................. 6,630
Shareholder servicing and related shareholder expenses+......................... 16,839
Legal, compliance and filing fees............................................... 34,492
Audit and accounting............................................................ 53,750
Trustees' fees and expenses..................................................... 3,852
Other........................................................................... 1,810
------------------
Total expenses.................................................................. 905,043
Less: Fees waived (Note 2)............................................... (263,178)
------------------
Net expenses.................................................................... 641,865
------------------
Net investment income........................................................... 2,891,319
REALIZED GAIN (LOSS) ON INVESTMENTS
Net realized gain on investments.................................................... 5,230
------------------
Increase in net assets from operations.............................................. $ 2,896,549
==================
+ Includes class specific transfer agency expenses of $925, $1, and $2,206 for
the Institutional, Institutional Service, and Retail Shares, respectively.
The accompanying notes are an integral part of these financial statements.
- -------------------------------------------------------------------------------
DAILY INCOME FUND (Formerly Institutional Daily Income Fund)
U.S. GOVERNMENT PORTFOLIO
STATEMENT OF CHANGES IN NET ASSETS
FOR THE PERIOD OCTOBER 16, 2006 (Commencement of Operations)
THROUGH MARCH 31, 2007
===============================================================================
2007
INCREASE (DECREASE) IN NET ASSETS ---------------
Operations:
Net investment income....................................................... $ 2,891,319
Net realized gain (loss) on investments..................................... 5,230
---------------
Increase in net assets from operations.......................................... 2,896,549
Dividends to shareholders from net investment income:
Institutional Shares........................................................ (244,853)
Institutional Service Shares................................................ (17)
Retail Shares............................................................... (189,222)
Advantage Shares............................................................ (2,457,227)
---------------
Total dividends to shareholders........................................ (2,891,319)
---------------
Distributions to shareholders from realized gains on investments:
Institutional Shares........................................................ -0-
Institutional Service Shares................................................ -0-
Retail Shares............................................................... (8)
Advantage Shares............................................................ (5,222)
---------------
Total distributions to shareholders.................................... (5,230)
---------------
Capital share transactions (Note 3):
Institutional Shares........................................................ 10,000
Institutional Service Shares................................................ 10,000
Retail Shares............................................................... 57,051,170
Advantage Shares............................................................ 193,827,351
---------------
Total capital share transactions...................................... 250,898,521
---------------
Total increase ............................................................. 250,898,521
Net assets:
Beginning of year........................................................... -0-
---------------
End of year................................................................ $ 250,898,521
===============
Undistributed net investment income............................................. $ -0-
===============
The accomapnying notes are an integral part of these financial statements.
- -------------------------------------------------------------------------------
DAILY INCOME FUND (Formerly Institutional Daily Income Fund)
U.S. GOVERNMENT PORTFOLIO
FINANCIAL HIGHLIGHTS
===============================================================================
Commencement of Operations
October 30, 2006 through
Institutional shares March 31, 2007
- --------------------- --------------
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............................................... 0.009
Net realized and unrealized gain(loss) on investments .............. 0.000
--------
Total from investment operations.................................... 0.009
Less distributions from:
Dividends from net investment income................................ (0.009)
Net realized gain on investments.................................... --
--------
Total Distributions................................................. (0.009)
--------
Net asset value, end of period......................................... $ 1.00
========
Total Return........................................................... 0.88%(a)
Ratios/Supplemental Data
Net assets, end of period (000's)...................................... $ 10
Ratios to average net assets:
Expenses (net of fees waived) ...................................... 0.20%(b)
Net investment income............................................... 5.10%(b)
Management and Administration fees waived........................... 0.16%(b)
Commencement of Operations
March 19, 2007 through
Institutional Service shares March 31, 2007
- ---------------------------- --------------
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............................................... 0.002
Net realized and unrealized gain(loss) on investments ............. 0.000
--------
Total from investment operations.................................... 0.002
Less distributions from:
Dividends from net investment income................................ (0.002)
Net realized gain on investments.................................... --
--------
Total Distributions................................................. (0.002)
--------
Net asset value, end of period......................................... $ 1.00
========
Total Return........................................................... 0.17%(a)
Ratios/Supplemental Data
Net assets, end of period (000's)...................................... $ 10
Ratios to average net assets:
Expenses (net of fees waived)....................................... 0.45%(b)
Net investment income............................................... 4.85%(b)
Management and Administration fees waived........................... 0.16%(b)
(a) Not annualized
(b) Annualized
The accompanying notes are an integral part of these financial statements.
- -------------------------------------------------------------------------------
DAILY INCOME FUND (Formerly Institutional Daily Income Fund)
U.S. GOVERNMENT PORTFOLIO
FINANCIAL HIGHLIGHTS (CONTINUED)
===============================================================================
Commencement of Operations
December 12, 2006 through
Retail shares March 31, 2007
- --------------- --------------
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................................................ 0.013
Net realized and unrealized gain(loss) on investments .............. 0.000
--------
Total from investment operations..................................... 0.013
Less distributions from:
Dividends from net investment income................................. (0.013)
Net realized gain on investments..................................... (0.000)
--------
Total Distributions.................................................. (0.013)
--------
Net asset value, end of period......................................... $ 1.00
========
Total Return........................................................... 1.30%(a)
Ratios/Supplemental Data
Net assets, end of period (000's)...................................... $ 57,051
Ratios to average net assets:
Expenses (net of fees waived) ....................................... 1.00%(b)
Net investment income................................................ 4.29%(b)
Management and Administration fees waived............................ 0.16%(b)
Distribution fees waived............................................. 0.10%(b)
Transfer Agency Account fees waived.................................. 0.03%(b)
Commencement of Operations
November 2, 2006 through
Advantage shares March 31, 2007
- ---------------- --------------
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................................................ 0.018
Net realized and unrealized gain(loss) on investments .............. 0.000
--------
Total from investment operations..................................... 0.018
Less distributions from:
Dividends from net investment income................................. (0.018)
Net realized gain on investments..................................... (0.000)
--------
Total Distributions.................................................. (0.018)
--------
Net asset value, end of period......................................... $ 1.00
========
Total Return........................................................... 1.77%(a)
Ratios/Supplemental Data
Net assets, end of period (000's)...................................... $193,827
Ratios to average net assets:
Expenses (net of fees waived) ....................................... 1.02%(b)
Net investment income................................................ 4.26%(b)
Management and Administration fees waived............................ 0.16%(b)
Distribution fees waived............................................. 0.16%(b)
Sub-Accounting fees waived........................................... 0.10%(b)
(a) Not annualized
(b) Annualized
The accompanying notes are an integral part of these financial statements.
[THIS PAGE INTENTIONALLY LEFT BLANK.]
- -------------------------------------------------------------------------------
DAILY INCOME FUND (Formerly Institutional Daily Income Fund)
MUNICIPAL PORTFOLIO
EXPENSE CHART
FOR THE PERIOD ENDED MARCH 31, 2007
(UNAUDITED)
===============================================================================
As a shareholder of the Portfolio, you incur the following ongoing costs:
management fees and other Portfolio expenses. You may also incur distribution
and/or service (12b-1) fees. This example is intended to help you understand
your ongoing costs (in dollars) of investing in the Portfolio and to compare
these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the
period and held for the entire period through March 31, 2007.
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.
- ---------------------------------------------------------------------------------------------------------------------------
Beginning Account Ending Account Value Expenses Paid Annualized
Institutional Service Shares Value 03/19/07 03/31/07 During the Period Expense Ratio
- ---------------------------------------------------------------------------------------------------------------------------
Actual (b) $1,000.00 $1,001.20 $0.16 0.42%
- ---------------------------------------------------------------------------------------------------------------------------
Hypothetical (5% return before $1,000.00 $1,022.69 $2.27 0.42%
expenses) (a)
- ---------------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------------
Beginning Account Ending Account Value Expenses Paid Annualized
Institutional Shares (a) Value 10/30/06 03/31/07 During the Period Expense Ratio
- ---------------------------------------------------------------------------------------------------------------------------
Actual (c) $1,000.00 $1,006.00 $0.84 0.20%
- ---------------------------------------------------------------------------------------------------------------------------
Hypothetical (5% return before $1,000.00 $1,023.93 $1.01 0.20%
expenses) (a)
- ---------------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------------
Beginning Account Ending Account Value Expenses Paid Annualized
Short Term Income Shares Value 02/20/07 03/31/07 During the Period Expense Ratio
- ---------------------------------------------------------------------------------------------------------------------------
Actual (d) $1,000.00 $1,002.90 $0.83 0.76%
- ---------------------------------------------------------------------------------------------------------------------------
Hypothetical (5% return before $1,000.00 $1,021.14 $3.83 0.76%
expenses)(a)
- ---------------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------------
Beginning Account Ending Account Value Expenses Paid Annualized
Retail Shares Value 12/08/06 03/31/07 During the Period Expense Ratio
- ---------------------------------------------------------------------------------------------------------------------------
Actual (e) $1,000.00 $1,008.40 $3.14 1.00%
- ---------------------------------------------------------------------------------------------------------------------------
Hypothetical (5% return before $1,000.00 $1,019.95 $5.04 1.00%
expenses) (a)
- ---------------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
===============================================================================
- ---------------------------------------------------------------------------------------------------------------------------
Beginning Account Ending Account Value Expenses Paid Annualized
Advantage Shares Value 11/02/06 03/31/07 During the Period Expense Ratio
- ---------------------------------------------------------------------------------------------------------------------------
Actual (f) $1,000.00 $1,010.90 $4.21 1.02%
- ---------------------------------------------------------------------------------------------------------------------------
Hypothetical (5% return before $1,000.00 $1,019.85 $5.14 1.02%
expenses)(a)
- ---------------------------------------------------------------------------------------------------------------------------
(a) Expenses are equal to the Fund's annualized expense ratios multiplied by
the average account value over the period (October 1, 2006 through March
31, 2007), multiplied by 182/365 (to reflect the most recent fiscal
half-year).
(b) Expenses are equal to the Fund's annualized expense ratios multiplied by
the average account value over the period (March 19, 2007 through March 31,
2007), multiplied by 13/365 (to reflect the most recent fiscal half-year).
(c) Expenses are equal to the Fund's annualized expense ratios multiplied by
the average account value over the period (October 30, 2006 through March
31, 2007), multiplied by 153/365 (to reflect the most recent fiscal
half-year).
(d) Expenses are equal to the Fund's annualized expense ratios multiplied by
the average account value over the period (February 20, 2007 through March
31, 2007), multiplied by 40/365 (to reflect the most recent fiscal
half-year).
(e) Expenses are equal to the Fund's annualized expense ratios multiplied by
the average account value over the period (December 8, 2006 through March
31, 2007), multiplied by 114/365 (to reflect the most recent fiscal
half-year).
(f) Expenses are equal to the Fund's annualized expense ratios multiplied by
the average account value over the period (November 2, 2006 through March
31, 2007), multiplied by 150/365 (to reflect the most recent fiscal
half-year).
- -------------------------------------------------------------------------------
DAILY INCOME FUND (Formerly Institutional Daily Income Fund)
MUNICIPAL PORTFOLIO
SCHEDULE OF INVESTMENTS
MARCH 31, 2007
===============================================================================
Ratings (1)
-----------------
Face Maturity Current Value Standard
Amount Date Coupon (2) (Note 1) Moody's & Poor's
------ ---- --------- -------- ------- --------
Put Bonds (3) (5.84%)
- -----------------------------------------------------------------------------------------------------------------------------------
$ 2,100,000 Clipper Tax Exempt Certificates Trust
(Massachusetts Non-AMT) - Series 2001-4
Insured by MBIA Insurance Corporation 09/06/07 3.65% $ 2,100,000 VMIG-1
6,500,000 Harford County, MD EDRB (A.O. Smith)
LOC Comerica Bank 09/03/07 3.95 6,500,000 P-1 A-1
3,500,000 Intermountain Power Agency, UT Power Supply RB - Series 1985F
Insured by AMBAC Assurance Corporation 09/17/07 3.64 3,500,000 VMIG-1 A-1+
1,700,000 North Carolina Industrial Facility PCFA RB
(GVK America Inc. Project) (4)
LOC Wachovia Bank & Trust Company, N.A. 06/01/07 4.00 1,700,000
- ------------ -----------
13,800,000 Total Put Bonds 13,800,000
- ------------ -----------
Tax Exempt Commercial Paper (6.14%)
- -----------------------------------------------------------------------------------------------------------------------------------
$ 1,000,000 Board of Regents of the University of Texas System
Higher Education 04/02/07 3.60% $ 1,000,000 P-1 A-1+
1,000,000 City of St. Louis, MO Airport RN
(Lambert-St. Louis International Airport) - 2004
LOC JPMorgan Chase Bank 05/17/07 3.75 1,000,000 P-1 A-1+
1,000,000 Clark County, NV Highway RV RB (Motor Vehicle Fuel Tax) 05/10/07 3.62 1,000,000 P-1 A-1+
3,000,000 Kentucky Asset/Liability Commission
Project Notes, 2005 General Fund Second Series 05/25/07 3.60 3,000,000 VMIG-1 A-1
5,509,000 Massachusetts Development Finance Agency
LOC JPMorgan Chase Bank 06/12/07 3.64 5,509,000 P-1
1,000,000 Oklahoma City Water Utilities Trust - Series A
LOC State Street Bank & Trust Co. 05/02/07 3.61 1,000,000 P-1 A-1+
2,000,000 Rhode Island Health & Educational Building Corporation
(Brown University Project) - Series A 04/05/07 3.50 2,000,000 P-1 A-1+
- ------------ -----------
14,509,000 Total Tax-Exempt Commercial Paper 14,509,000
- ------------ -----------
Tax Exempt General Obligation Notes & Bonds (13.62%)
- -----------------------------------------------------------------------------------------------------------------------------------
$ 1,000,000 Adams County, OH Valley Local School District BAN(4) 05/15/07 3.65% $ 1,000,895
1,000,000 Brillion, WI Public School District BAN (4) 04/01/08 4.25 1,001,600
1,100,000 Butler County, OH BAN 09/20/07 3.80 1,103,418 MIG-1
1,500,000 Cambridge, WI School District TRAN (4) 09/05/07 3.77 1,499,590
2,500,000 Concord, CO Metropolitan District Refunding & Improvement Bond
LOC Wells Fargo 12/01/07 3.75 2,500,000 A-1+
2,300,000 East Troy, WI Community School District TRAN (4) 10/05/07 3.70 2,300,562
3,000,000 Lake Superior, MN Independent School District #381
Aid and Anticipation Certificates - Series B 08/27/07 3.85 3,008,931 Aa2
4,850,000 Logan County, OH Sewer Improvement BAN
Sewer System Series B (4) 04/04/07 3.69 4,850,157
1,000,000 Maine State Housing Authority Mortgage RB - Series H 12/14/07 3.62 1,000,000 VMIG-1 A-1+
1,000,000 Menomonie, WI Area School District TRAN (4) 09/04/07 3.73 999,727
1,400,000 Merton, WI Community School District TRAN (4) 10/26/07 3.75 1,399,431
2,500,000 North St. Paul Maplewood, MN Independent School District
District #622 Aid and Anticipation Certificates (4) 08/13/07 3.85 2,506,450
5,000,000 Texas State TRAN 08/31/07 4.50 5,015,602 MIG-1 SP-1+
4,000,000 Waunakee, WI Community School District (4) 10/09/07 3.74 4,004,769
- ------------ -----------
32,150,000 Total Tax Exempt General Obligation Notes & Bonds 32,191,132
- ------------ -----------
The accompanying notes are an integral part of these financial statements.
- -------------------------------------------------------------------------------
===============================================================================
Ratings (1)
-----------------
Face Maturity Current Value Standard
Amount Date Coupon (2) (Note 1) Moody's & Poor's
------ ---- --------- -------- ------- --------
Variable Rate Demand Instruments (5) (75.26%)
- -----------------------------------------------------------------------------------------------------------------------------------
$ 2,000,000 ABN AMRO Munitops Certificate Trust (Colorado Non-AMT)
Single Asset - Series 2005-14
Insured by FGIC 06/01/13 3.70% $ 2,000,000 P-1 A-1+
2,000,000 Alachua County, FL HFA RB Continuing Care Retirement Community
(Oak Hammock at the University of Florida Project) - Series 2002A
LOC BNP Paribas 10/01/32 3.79 2,000,000 VMIG-1
4,145,000 Alachua County, FL IDRB (Oak Hall Private School) - Series 2007
LOC SunTrust Bank 07/01/31 3.71 4,145,000 VMIG-1
5,205,000 Auburn, AL Non-Profit HDA MHRB (Lakeside Project)
LOC Columbus Bank & Trust Company 09/01/27 3.86 5,205,000 A-1
3,250,000 Blue Springs, MO IDA MHRB
(Autumn Place Apartments Project) - Series 2004 - A1
Guaranteed by Federal National Mortgage Association 08/15/37 3.72 3,250,000 VMIG-1
1,400,000 Bowie County, TX IDC (Texarkana Newspaper) - Series 1985
LOC Bank of New York 11/01/25 3.80 1,400,000 A-1+
2,100,000 Brazos River, TX Habor Navigation District Brazoria County
Environmental (Merey Sweeney Project)
LOC Bank of America 04/01/21 3.86 2,100,000 VMIG-1
2,750,000 Broward County, FL HFA
(Sailboat Bend Artist Lofts Project) - Series 2006
LOC Citibank, N.A. 04/15/38 3.77 2,750,000 A-1+
1,100,000 Calhoun County Navigation IDA (BP Amoco PLC ) - Series 2003 01/01/24 3.85 1,100,000 VMIG-1 A-1+
1,150,000 Caledonia, WI IDRB
(Quick Cable Corpoation Project) - Series 1998 (4)
LOC Fifth Third Bank 12/01/18 3.78 1,150,000
2,000,000 Carroll County, GA Development Authority RB
(Royal Metal Products) - Series 2007
LOC Branch Bank & Trust Company 01/18/27 3.78 2,000,000 VMIG-1
1,000,000 Chicago, IL Midway Airport Second Lien RB - Series 1998
Insured by MBIA Insurance Corp. 01/01/29 3.81 1,000,000 VMIG-1 A-1+
1,870,000 Cleveland - Cuyahoga County, OH Port Authority RB
(CBT Project) - Series 2007
LOC Charter One Bank 06/01/31 3.82 1,870,000 P-1 A-1+
5,680,423 Clipper Tax Exempt Trust COPs - (Oklahoma) - Series 2004-3 (4) 07/01/09 3.74 5,680,423
3,000,000 Cohasset, MN RB
(Minnesota Power & Light Co. Project) - Series 1997A
LOC ABN AMRO Bank 06/01/20 3.66 3,000,000 A-1+
2,800,000 Connecticut HEFA RB (Yale University) 07/01/29 3.56 2,800,000 VMIG-1 A-1+
105,000 Connecticut HEFA RB (Yale University) 07/01/36 3.70 105,000 VMIG-1 A-1+
5,925,000 Douglas County, NE IDRB
(Phillips Manufacturing Project) - Series 2002
LOC Wells Fargo Bank, N.A. 12/01/18 3.75 5,925,000 A-1+
2,000,000 Farmington, NM PCRB (Arizona Public Service Company
Four Corners Project) - Series B
LOC Barclays Bank PLC 09/01/24 3.82 2,000,000 P-1 A-1+
2,460,000 Floating Rate Trust Receipts - Series 2005 L26U (Relating to
New Jersey Health Care Facility Finance Authority RB (Bayonne
Hospital Obligated Group Issue) - Series 1994)
Insured by FSA 07/01/12 3.64 2,460,000 VMIG-1 A-1
The accompanying notes are an integral part of these financial statements.
- -------------------------------------------------------------------------------
DAILY INCOME FUND (Formerly Institutional Daily Income Fund)
MUNICIPAL PORTFOLIO
SCHEDULE OF INVESTMENTS (CONTINUED)
MARCH 31, 2007
===============================================================================
Ratings (1)
-----------------
Face Maturity Current Value Standard
Amount Date Coupon (2) (Note 1) Moody's & Poor's
------ ---- --------- -------- ------- --------
Variable Rate Demand Instruments (Continued) (5)
- -----------------------------------------------------------------------------------------------------------------------------------
$ 1,125,000 Florida HFA MHRB (Banyon Bay Apartments Project) 1995 - Series L
Collateralized by Federal National Mortgage Association 12/01/25 3.70% $ 1,125,000 VMIG-1
1,000,000 Florida HFC Housing RB (Stuart Pointe Apartment) - Series 2003B-1
LOC SunTrust Bank 04/01/34 3.71 1,000,000 A-1+
6,290,000 Florida Higher Educational Facilitlites Financing Authority
(Southeastern University, Inc. Project)
LOC Regions Bank 12/02/30 3.70 6,290,000 VMIG-1
1,100,000 Franklin County, OH HRB (Doctors Ohio Health) - Series B
LOC National City Bank 12/01/28 3.65 1,100,000 VMIG-1
1,000,000 Gulf Coast, TX Waste Disposal Authority
(BP Amoco Chemical Company Project) - Series 2003 05/01/38 3.85 1,000,000 VMIG-1 A-1+
3,000,000 Hapeville, GA Development Authority
(Hapeville Hotel Limited Project ) - Series 1985
LOC JPMorgan Chase Bank 11/01/15 3.77 3,000,000 P-1
3,000,000 Illinois Development Finance Authority
(Butterfield Creek Project) - Series 1999 AMT
LOC LaSalle Bank N.A. 04/01/39 3.78 3,000,000 A-1
1,760,000 Illinois Development Finance Authority IDRB
(DCS Diversified Coating Systems, Inc. Project) - Series 2002 (4)
LOC Fifth Third Bank 09/01/17 3.80 1,760,000
2,825,000 Illinois Finance Authority
(Pollman North America, Inc. Project) - Series 2005D
LOC Fifth Third Bank 12/01/25 3.78 2,825,000 P-1 A-1+
1,700,000 Illinois Development Authority IDRB
(U.S. Acrylic, Inc. Project) - Series 2003 (4)
LOC Fifth Third Bank 08/01/33 3.78 1,700,000
1,000,000 Jacksonville,FL Economic Development Commission Special Facilities
Airport RB(Holland Sheltair Aviation Group Project)-Series 2005-B1
LOC Mellon Bank N.A. 05/01/35 3.73 1,000,000 A-1+
1,000,000 Jefferson County, KY Industrial Building (R.C. TWAY Company,
Kentucky Manufacturing Company Project) Series 1998
LOC Fifth Third Bank 06/01/18 3.81 1,000,000 P-1 A-1+
2,400,000 La Porte County, IN EDC RB
(Universal Forest Products) - Series 2000 (4)
LOC LaSalle Bank Midwest N.A. 11/01/20 3.81 2,400,000
1,000,000 Lagrange County, IN EDRB (SV Realty LLC Project) - Series 2006
LOC Fifth Third Bank 03/01/26 3.78 1,000,000 P-1 A-1+
3,535,000 Lehman Municipal Trust Receipts, Floater Trust Receipts
Series 2005 L13 (Related to Parish of Jefferson Home Mortgage
Authority Series 2005 A & Texas Department of Housing
& Community Affairs 2002 Series B) (4)
Insured by MBIA Insurance Corp. 06/01/36 3.80 3,535,000
3,000,000 Lehman Municipal Trust Receipts, Floater Trust Receipts
Series 2006 P58U (Related to Connecticut State Heatlh) (4) 07/01/42 3.64 3,000,000 VMIG-1 A-1
2,600,000 Lincoln County, WY PCRB (Exxon Project) - Series 1987-B 07/01/17 3.82 2,600,000 P-1 A-1+
8,500,000 Lincoln County, WY PCRB (Exxon Project) - Series 1987-C 07/01/17 3.82 8,500,000 P-1 A-1+
1,300,000 Lufkin, TX Health Facilities Development Corporation RB
(Memorial Health System East Texas) - Series 2005
LOC Wachovia Bank, N.A. 02/15/35 3.85 1,300,000 A-1+
The accompanying notes are an integral part of these financial statements.
- -------------------------------------------------------------------------------
===============================================================================
Ratings (1)
-----------------
Face Maturity Current Value Standard
Amount Date Coupon (2) (Note 1) Moody's & Poor's
------ ---- --------- -------- ------- --------
Variable Rate Demand Instruments (Continued) (5)
- -----------------------------------------------------------------------------------------------------------------------------------
$ 1,900,000 Manchester, GA Development Authority
(G&S Metal Consultants) - Series 2006
LOC Fifth Third Bank 10/01/26 3.78% $ 1,900,000 P-1 A-1+
2,100,000 Martin County, FL PCRB (Florida Power & Light
Company Project) Series 2000 07/15/22 3.82 2,100,000 VMIG-1 A-1
1,000,000 Memphis, TN Health Educational and Housing Facilities Board
MHRB (Ashland Lakes Apartments) - Series 2006A
LOC U.S. Bank, N.A. 08/01/41 3.74 1,000,000 A-1+
2,500,000 Metropolitan Nashville, TN Airport Authority Airport
Improvement RB - Series 2006
Insured by AMBAC Assurance Corporation 07/01/26 3.75 2,500,000 A-1+
2,350,000 Michigan State Strategic Fund Limited Obligation RB
(Nuvar Properties LLC Project) - Series 2007
LOC Fifth Third Bank 04/01/37 3.78 2,350,000 P-1 A-1+
2,500,000 Michigan State Strategic Fund Limited Obligation RB
(Grand River Infrastructure, Inc.) - Series 2006 (4)
LOC Fifth Third Bank 06/01/14 3.78 2,500,000
1,925,000 Michigan State Strategic Fund (Sintel, Inc. Project)
- Series 2005 (4)
LOC Fifth Third Bank 10/01/30 3.78 1,925,000
2,000,000 Missouri State HEFA Educational Facilities RB
(St. Louis University Project) - Series A
Insured by MBIA Insurance Corp. 10/01/35 3.75 2,000,000 VMIG-1 A-1+
500,000 Montgomery, AL IDRB Pollution Control & Solid Waste
(General Electric Company Project) 05/01/21 3.82 500,000 VMIG-1 A-1+
1,450,000 Nashville & Davidson County, TN
(Wedgewood Tower Project) - Series 2004 A (4)
LOC Amsouth Bank, N.A. 06/01/34 3.83 1,450,000 P-1 A-1
2,000,000 New York City, NY Municipal Water Finance Authority RB
(Water & Sewer System) - Series 1995A
Insured by FGIC 06/15/25 3.67 2,000,000 VMIG-1 A-1+
1,000,000 New York Municipal Securities Trust Certificates Series 5020 07/01/18 3.75 1,000,000 VMIG-1
2,465,000 North Dakota HFA Housing Finance Program Bonds
Home Mortgage Finance - Series 2002 B
Insured by FSA 01/01/34 3.72 2,465,000 VMIG-1
1,000,000 Olathe, KS IDRB Multi-Modal (Diamant Boart Project)
- Series 1997A (4)
LOC Svenska Handelsbanken 03/01/27 3.79 1,000,000
1,200,000 Orland Park, IL IDRB (Panduit Corp Project) - Series 1996
LOC Fifth Third Bank 04/01/31 3.73 1,200,000 A-1+
2,000,000 Owensboro, KY IDRB
(West Irving Die Lastings of Kentucky, Inc. Project)-Series 1997
LOC Fifth Third Bank 06/01/17 3.86 2,000,000 P-1 A-1+
3,000,000 Palm Beach County, FL RB (Northern Gallery
and School of Art Community
Foundation for Palm Beach & Martin Counties) - Series 1995
LOC Northern Trust 05/01/25 3.69 3,000,000 A-1+
2,600,000 Pennsylvania EDFA EDRB
(Joseph R & Nancy L Delsignore Project) - Series 2005B2
LOC PNC Bank, N.A. 08/01/30 3.73 2,600,000 P-1 A-1+
1,800,000 Pennsylvania EDFA EDRB
(North America Communications, Inc. Project) - Series 2005B3
LOC PNC Bank, N.A. 08/01/12 3.73 1,800,000 P-1 A-1+
The accompanying notes are an integral part of these financial statements.
- -------------------------------------------------------------------------------
DAILY INCOME FUND (Formerly Institutional Daily Income Fund)
MUNICIPAL PORTFOLIO
SCHEDULE OF INVESTMENTS (CONTINUED)
MARCH 31, 2007
===============================================================================
Ratings (1)
-----------------
Face Maturity Current Value Standard
Amount Date Coupon (2) (Note 1) Moody's & Poor's
------ ---- --------- -------- ------- --------
Variable Rate Demand Instruments (Continued) (5)
- -----------------------------------------------------------------------------------------------------------------------------------
$ 1,975,000 Port Bellingham, WA Industrial Development Corporation
(BP West Coast Products LLC Project) - Series 2003 03/01/38 3.85% $ 1,975,000 VMIG-1 A-1+
2,500,000 Richardson, TX Independent School District
(Unlimited Tax School Building Bond) - Series 2000
Guaranteed by Texas Permanent School Fund 08/15/24 3.65 2,500,000 VMIG-1 A-1+
1,325,000 Ridgeland Township, SC RB (Ridgeland LLC Project) - Series A
LOC Columbus Bank & Trust Company 09/01/21 3.75 1,325,000 P-1 A-1
2,000,000 Rockingham County, NC IDRB PCFA
(Eden Customs Processing, LLC Project) Series 2004 (4)
LOC Branch Bank & Trust Company 01/01/17 3.78 2,000,000
2,200,000 Rockingham, NC IDRB PCFA
(Whiteridge Plastics Project) - Series 2003 (4)
LOC Branch Bank & Trust Company 03/01/15 3.78 2,200,000
3,980,000 ROCs II-R Trust Series 353 (Relating to Wayne County, MI Airport
Authority (Detroit Metropolitan Wayne County Airport)
- Series 2005)
Insured by MBIA Insurance Corp. 12/01/17 3.74 3,980,000 VMIG-1
3,100,000 San Antonio, TX Empowerment Zone Development RB
(Drury Southwest Hotel Project) - Series 2005 (4)
LOC U.S. Bank, N.A. 10/01/35 3.71 3,100,000
3,000,000 Savannah, GA EDA RB (Savannah Country Day School) - Series 2004
LOC Suntrust Bank 09/01/29 3.66 3,000,000 VMIG-1
2,570,000 South Carolina Jobs EDA RB
(DCS Diversified Coating Systems, Inc Project) - Series 2002
LOC Branch Bank & Trust Company 04/01/17 3.78 2,570,000 VMIG-1
3,350,000 St. Charles Parish, LA PCRB (Shell Oil Company Project) - A 10/01/22 3.85 3,350,000 VMIG-1 A-1+
2,000,000 Utah State Board of Regents Student Loan RB - Series L
Insured by AMBAC Assurance Corporation 11/01/25 3.77 2,000,000 A-1+
3,000,000 Utah Transit Authority Sales Tax RB - Sub-Series A
LOC Fortis Bank 06/15/36 3.75 3,000,000 VMIG-1 A-1+
750,000 Utah Transit Authority Sales Tax RB - Series 2006B
LOC Fortis Bank 06/15/36 3.70 750,000 VMIG-1 A-1+
3,000,00 Virginia Port Authority Facility RB
Insured by FGIC 07/01/36 3.74 3,000,00 A-1+
2,815,000 Washington State EDFA
(Summer Building LLC Project) - Series 2005F
LOC KeyBank, N.A. 12/01/30 3.80 2,815,000 P-1 A-1
2,800,000 Washington State HFC MHRB -
(Seasons Apartment Project) Series 2006
Collateralized by Federal National Mortgage Association 12/15/40 3.75 2,800,000 VMIG-1
2,100,000 West Des Moines, IA RB Woodgrain Millwork Inc Project)
- Series 1995
LOC Wells Fargo Bank, N.A. 04/01/10 3.85 2,100,000 P-1 A-1+
500,000 Will-Kankakee Regional Development Authority, IL IDRB - Series A
LOC Fifth Third Bank 08/01/36 3.78 500,000 P-1 A-1+
500,000 Wisconsin HEFA (Alverno College) Series 1997
LOC Allied Irish Bank PLC 11/01/17 3.84 500,000 VMIG-1
- ------------ -------------
177,830,423 Total Variable Rate Demand Instruments 177,830,423
- ------------ -------------
Total Investments (100.86%) (cost $238,330,555+) 238,330,555
Liabilities in excess of cash and other assets (-0.86%) (2,032,779)
-------------
Net Assets (100.00%) $ 236,297,776
=============
+ Aggregate cost for federal income tax purposes is identical.
The accompanying notes are an integra; part of these financial statements.
- -------------------------------------------------------------------------------
===============================================================================
FOOTNOTES:
1) Unless the securities are assigned their own ratings, the ratings are those
of the bank whose letter of credit guarantees the issue or the insurance
company who insures the issue. All letters of credit and insurance are
irrevocable and direct pay covering both principal and interest. Ratings
are unaudited.
2) In addition, certain issuers may have either a line of credit, a liquidity
facility, a standby purchase agreement or some other financing mechanism to
ensure the remarketing of the securities. This is not a guarantee and does
not serve to insure or collateralize the issue.
3) The interest rate shown reflects the security's current coupon, unless
yield is available.
4) The maturity date indicated for the put bonds is the next put date.
5) Securities that are not rated that the Adviser has determined to be of
comparable quality to those rated securities in which the Fund invests.
6) 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:
AMT = Alternate Minimum Tax HFC = Housing Finance Commission
BAN = Bond Anticipation Note HRB = Hospital Revenue Bond
COPs = Certificates of Participation IDA = Industrial Development Authority
EDA = Economic Development Authority IDC = Industrial Development Corporation
EDC = Economic Development Corporation IDRB = Industrial Development Revenue Bond
EDFA = Economic Development Finance Authority LOC = Letter of Credit
EDRB = Economic Development Revenue Bond MHRB = Multi-Family Housing Revenue Bond
FGIC = Financial Guaranty Insurance Company PCFA = Pollution Control Finance Authority
FSA = Financial Security Assurance PCRB = Pollution Control Revenue Bond
HEFA = Health and Education Facilities Authority RB = Revenue Bond
HDA = Housing Development Authority RN = Revenue Notes
HFA = Housing Finance Authority TRAN = Tax and Revenue Anticipation Note
The accompanying notes are an integral part of these financial statements.
- -------------------------------------------------------------------------------
DAILY INCOME FUND (Formerly Institutional Daily Income Fund)
MUNICIPAL PORTFOLIO
BREAKDOWN OF PORTFOLIO HOLDINGS BY STATE
MARCH 31, 2007
===============================================================================
- ------------------------- ----------------------------- -----------------------
States Value % of Portfolio
- ------------------------- ----------------------------- -----------------------
Alabama $ 5,705,000 2.39%
Colorado 4,500,000 1.89
Connecticut 5,905,000 2.48
Florida 23,410,000 9.82
Georgia 9,900,000 4.15
Illinois 11,985,000 5.03
Indiana 3,400,000 1.43
Iowa 2,100,000 0.88
Kansas 1,000,000 0.42
Kentucky 6,000,000 2.52
Louisiana 3,350,000 1.41
Maine 1,000,000 0.42
Maryland 6,500,000 2.73
Massachusetts 7,609,000 3.19
Michigan 10,755,000 4.51
Minnesota 8,515,381 3.57
Missouri 6,250,000 2.62
Nebraska 5,925,000 2.49
Nevada 1,000,000 0.42
New Jersey 2,460,000 1.03
New Mexico 2,000,000 0.84
New York 3,000,000 1.26
North Carolina 5,900,000 2.48
North Dakota 2,465,000 1.03
Ohio 9,924,470 4.16
Oklahoma 6,680,423 2.80
Pennsylvania 4,400,000 1.85
Rhode Island 2,000,000 0.84
South Carolina 3,895,000 1.63
Tennessee 4,950,000 2.08
Texas 18,515,602 7.77
Utah 9,250,000 3.88
Virginia 3,000,000 1.26
Washington 7,590,000 3.19
Wisconsin 12,855,679 5.39
Wyoming 11,100,000 4.66
Other Territories 3,535,000 1.48
- ------------------------- ----------------------------- -----------------------
Total $ 238,330,555 100.00%
- ------------------------- ----------------------------- -----------------------
The accomapnying notes are an integral part of these financial statements.
- -------------------------------------------------------------------------------
DAILY INCOME FUND (Formerly Institutional Daily Income Fund)
MUNICIPAL PORTFOLIO
STATEMENT OF ASSETS AND LIABILITIES
MARCH 31, 2007
===============================================================================
ASSETS
Investments in securities, at amortized cost (Note 1)............................. $ 238,330,555
Cash.............................................................................. 166,479
Accrued interest receivable....................................................... 1,531,405
Prepaid expenses.................................................................. 27,059
------------------
Total assets............................................................... 240,055,498
------------------
LIABILITIES
Payable to affiliates*............................................................ 80,877
Payable for securities purchased.................................................. 3,351,600
Accrued expenses.................................................................. 46,801
Dividends payable................................................................. 276,165
Other payable..................................................................... 2,279
------------------
Total liabilities.......................................................... 3,757,722
------------------
Net assets........................................................................ $ 236,297,776
==================
SOURCE OF NET ASSETS
Net capital paid in on shares of capital stock (Note 3)........................... $ 236,297,776
------------------
Net assets........................................................................ $ 236,297,776
==================
Net asset value, per share (Note 3):
Class Name Net Assets Shares Outstanding Net Asset Value
Institutional Shares........................ $10,000 10,000 $1.00
Institutional Service Shares................ $10,000 10,000 $1.00
Short Term Income Shares.................... $57,915,009 57,915,009 $1.00
Retail Shares............................... $41,816,875 41,816,875 $1.00
Advantage Shares............................ $136,545,892 136,545,892 $1.00
* Includes fees payable to Reich & Tang Asset Management, LLC, Reich & Tang
Distributors, Inc. and Reich & Tang Services, Inc.
The accompanying notes are an integral part of these financial statements.
- -------------------------------------------------------------------------------
MUNICIPAL PORTFOLIO
STATEMENT OF OPERATIONS
FOR THE PERIOD OCTOBER 16, 2006 (Commencement of Operations)
THROUGH MARCH 31, 2007
===============================================================================
INVESTMENT INCOME
Income:
Interest........................................................................ $ 2,025,460
------------------
Expenses: (Note 2)
Investment management fee....................................................... 66,329
Administration fee.............................................................. 27,637
Shareholder servicing fee (Institutional Service Shares - Note 1)............... 1
Shareholder servicing fee (Short-Term Income Shares - Note 1)................... 8,607
Shareholder servicing fee (Retail Shares - Note 1).............................. 10,063
Shareholder servicing fee (Advantage Shares - Note 1)........................... 110,943
Distribution fee (Short-Term Income Shares - Note 1)............................ 15,493
Distribution fee (Retail Shares - Note 1)....................................... 26,163
Distribution fee (Advantage Shares - Note 1).................................... 332,830
Sub-Accounting fee (Advantage Shares - Note 1).................................. 44,377
Custodian expenses.............................................................. 3,320
Shareholder servicing and related shareholder expenses=......................... 15,115
Legal, compliance and filing fees............................................... 28,251
Audit and accounting............................................................ 44,227
Trustees' fees and expenses..................................................... 4,128
Other........................................................................... 1,448
------------------
Total expenses.................................................................. 738,932
Less: Fees waived (Note 2)............................................... (213,011)
------------------
Net expenses.................................................................... 525,921
------------------
Net investment income........................................................... 1,499,539
REALIZED GAIN (LOSS) ON INVESTMENTS
Net realized gain on investments.................................................... -0-
------------------
Increase in net assets from operations.............................................. $ 1,499,539
==================
+ Includes class specific transfer agency expenses of $661, $1, $1,682, and
$2,007 for the Institutional (Formerly Class B), Institutional Service
(Formerly Class A), Short Term Income, and Retail Shares, respectively.
The accompanying notes are an integral part of these financial statements.
- -------------------------------------------------------------------------------
DAILY INCOME FUND (Formerly Institutional Daily Income Fund)
MUNICIPAL PORTFOLIO
STATEMENT OF CHANGES IN NET ASSETS
FOR THE PERIOD OCTOBER 16, 2006 (Commencement of Operations)
THROUGH MARCH 31, 2007
===============================================================================
2007
INCREASE (DECREASE) IN NET ASSETS
---------------
Operations:
Net investment income.................................................... $ 1,499,539
Net realized gain (loss) on investments.................................. -0-
---------------
Increase in net assets from operations....................................... 1,499,539
Dividends to shareholders from net investment income:
Institutional Shares..................................................... (117,822)
Institutional Service Shares............................................. (12)
Short Term Income Shares................................................. (99,509)
Retail Shares............................................................ (106,568)
Advantage Shares......................................................... (1,175,628)
---------------
Total dividends to shareholders..................................... (1,499,539)
---------------
Capital share transactions (Note 3):
Institutional Shares..................................................... 10,000
Institutional Service Shares............................................. 10,000
Short Term Income Shares................................................. 57,915,009
Retail Shares............................................................ 41,816,875
Advantage Shares......................................................... 136,545,892
---------------
Total capital share transactions................................... 236,297,776
---------------
Total increase .......................................................... 236,297,776
Net assets:
Beginning of period...................................................... -0-
---------------
End of period........................................................... $ 236,297,776
===============
Undistributed net investment income.......................................... $ -0-
===============
The accompanying notes are an integral part of these financial statements.
- -------------------------------------------------------------------------------
DAILY INCOME FUND (Formerly Institutional Daily Income Fund)
MUNICIPAL PORTFOLIO
FINANCIAL HIGHLIGHTS
===============================================================================
Commencement of Operations
October 30, 2006 through
Institutional shares March 31, 2007
- --------------------- --------------
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................................................ 0.006
Net realized and unrealized gain(loss) on investments .............. --
--------
Total from investment operations..................................... 0.006
Less distributions from:
Dividends from net investment income................................. (0.006)
Net realized gain on investments..................................... --
--------
Total Distributions.................................................. (0.006)
--------
Net asset value, end of period......................................... $ 1.00
========
Total Return........................................................... 0.60%(a)
Ratios/Supplemental Data
Net assets, end of period (000's)...................................... $ 10
Ratios to average net assets:
Expenses (net of fees waived)........................................ 0.20%(b)
Net investment income................................................ 3.44%(b)
Management and administration fees waived............................ 0.16%(b)
Commencement of Operations
March 19, 2007 through
Institutional Service shares March 31, 2007
- ---------------------------- --------------
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
Net realized and unrealized gain(loss) on investments .............. --
--------
Total from investment operations..................................... 0.001
Less distributions from:
Dividends from net investment income................................. (0.001)
Net realized gain on investments..................................... --
--------
Total Distributions.................................................. (0.001)
--------
Net asset value, end of period......................................... $ 1.00
========
Total Return........................................................... 0.12%(a)
Ratios/Supplemental Data
Net assets, end of period (000's)...................................... $ 10
Ratios to average net assets:
Expenses (net of fees waived)........................................ 0.42%(b)
Net investment income................................................ 3.25%(b)
Management and administration fees waived............................ 0.16%(b)
(a) Not annualized
(b) Annualized
The accompanying notes are an integral part of these financial statements.
- -------------------------------------------------------------------------------
===============================================================================
Commencement of Operations
February 20, 2007 through
Short Term Income shares March 31, 2007
- ------------------------ --------------
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................................................ 0.003
Net realized and unrealized gain(loss) on investments ............... --
--------
Total from investment operations..................................... 0.003
Less distributions from:
Dividends from net investment income................................. (0.003)
Net realized gain on investments..................................... --
--------
Total Distributions.................................................. (0.003)
--------
Net asset value, end of period......................................... $ 1.00
========
Total Return........................................................... 0.29%(a)
Ratios/Supplemental Data
Net assets, end of period (000's)...................................... $ 57,915
Ratios to average net assets:
Expenses (net of fees waived) ....................................... 0.76%(b)
Net investment income................................................ 2.89%(b)
Management and administration fees waived............................ 0.16%(b)
Distribution fees waived............................................. 0.17%(b)
Commencement of Operations
December 8, 2006 through
Retail shares March 31, 2007
- --------------- --------------
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................................................ 0.008
Net realized and unrealized gain(loss) on investments .............. --
--------
Total from investment operations..................................... 0.008
Less distributions from:
Dividends from net investment income................................. (0.008)
Net realized gain on investments..................................... --
--------
Total Distributions.................................................. (0.008)
--------
Net asset value, end of period......................................... $ 1.00
========
Total Return........................................................... 0.84%(a)
Ratios/Supplemental Data
Net assets, end of period (000's)...................................... $ 41,817
Ratios to average net assets:
Expenses (net of fees waived) ....................................... 1.00%(b)
Net investment income................................................ 2.65%(b)
Management and administration fees waived............................ 0.16%(b)
Distribution fees waived............................................. 0.10%(b)
Transfer Agency Account fees waived.................................. 0.03%(b)
(a) Not annualized
(b) Annualized
The accompanying notes are an integral part of these financial statements.
- -------------------------------------------------------------------------------
DAILY INCOME FUND (Formerly Institutional Daily Income Fund)
MUNICIPAL PORTFOLIO
FINANCIAL HIGHLIGHTS (CONTINUED)
===============================================================================
Commencement of Operations
November 2, 2006 through
Advantage shares March 31, 2007
- ----------------- --------------
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................................................ 0.011
Net realized and unrealized gain(loss) on investments ............... --
--------
Total from investment operations..................................... 0.011
Less distributions from:
Dividends from net investment income................................. (0.011)
Net realized gain on investments..................................... --
--------
Total Distributions.................................................. (0.011)
--------
Net asset value, end of period......................................... $ 1.00
========
Total Return........................................................... 1.09%(a)
Ratios/Supplemental Data
Net assets, end of period (000's)...................................... $136,546
Ratios to average net assets:
Expenses (net of fees waived)........................................ 1.02%(b)
Net investment income................................................ 2.65%(b)
Management and administration fees waived............................ 0.16%(b)
Distribution fees waived............................................. 0.16%(b)
Sub-Accounting fees waived........................................... 0.10%(b)
(a) Not annualized
(b) Annualized
The accompanying notes are an integral part of these financial statements.
[THIS PAGE INTENTIONALLY LEFT BLANK.]
- -------------------------------------------------------------------------------
DAILY INCOME FUND
NOTES TO THE FINANCIAL STATEMENTS
===============================================================================
1. Summary of Accounting Policies
Daily Income Fund (the "Fund") is a, diversified, open-end management investment
company registered under the Investment Company Act of 1940. The Fund is
comprised of four managed portfolios of money market instruments: the Money
Market Portfolio, the U.S. Treasury Portfolio, the U.S. Government Portfolio and
the Municipal Portfolio (each referred to as "Portfolio"). Effective October 16,
2006, the Fund's name was changed from Institutional Daily Income Fund to Daily
Income Fund, the name of Class A shares was changed to Institutional Service
Shares and the name of the Class B shares was changed to Institutional Shares.
In addition, the Municipal Portfolio was activated and the U.S. Government
Portfolio was created along with additional share classes in all four
portfolios. Each portfolio has five core classes of stock authorized,
Institutional Service, Institutional, Investor, Short Term Income, and Retail
shares. The Money Market and U.S. Treasury Portfolios have Pinnacle shares. In
addition, the Money Market, U.S. Government and Municipal Portfolios consist of
the Advantage Primary Liquidity, Advantage Government Liquidity and Advantage
Municipal Liquidity shares ("Advantage shares"). The Institutional Service,
Investor, Short Term Income, Retail and Advantage shares of each Portfolio are
subject to a service fee pursuant to each Portfolio's distribution and service
plan. The Institutional and Pinnacle shares are not subject to a service fee.
The Investor, Short Term Income, Retail and Advantage shares of each Portfolio
are also subject to a distribution fee pursuant to each Portfolio's Distribution
plan. The Institutional, Institutional Service and Pinnacle shares are not
subject to a distribution 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, distribution
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. Commencement of operations
for each of the share classes began as follows:
Money Market U.S. Treasury U.S. Government Municipal
Share classes Portfolio Portfolio Portfolio Portfolio
--------------- ---------- ---------- --------- ---------
Institutional shares............ May 13, 1994 November 18, 1996 October 30, 2006 October 30, 2006
Institutional Service shares.... April 3, 1995 November 29, 1995 March 19, 2007 March 19, 2007
Pinnacle shares................. July 29, 1999 July 29, 1999 N/A Not Active
Investor shares................. November 28, 2006 February 21, 2007 Not Active Not Active
Short Term Income shares........ February 12, 2007 November 2, 2006 Not Active February 20, 2007
Retail shares................... November 28, 2006 December 12, 2006 December 12, 2006 December 8, 2006
Advantage shares................ November 1, 2006 N/A November 2, 2006 November 2, 2006
The U.S. Government and Municipal Portfolios commenced operations on October 30,
2006 with seed money investment of $60,000,000 from IXIS Asset Management U.S.
Group, LP, an affiliate of the Advisor ("IXIS"). The U.S. Government Portfolio
received $35,000,000 and the Municipal Portfolio received $25,000,000. The
entire amount for both Portfolios was redeemed on December 19, 2006.
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, which approximates market value.
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. If fluctuating interest rates cause the market value of the
Fund's portfolio to deviate more than 1/2 of 1% from the value determined
on the basis of amortized cost, the Board of Trustees will consider whether
any action should be initiated. 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 -
The Money Market, U.S. Treasury and U.S. Government Portfolios may enter
into 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.
- -------------------------------------------------------------------------------
===============================================================================
1. Summary of Accounting Policies (continued)
d) Dividends and Distributions -
Dividends from net investment income (excluding long-term capital gains and
losses, if any, and amortization of market discount) 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.
f) Representations and Indemnifications -
In the normal course of business the Fund enters into contracts that
contain a variety of representations and warranties which provide general
indemnifications. The Fund's maximum exposure under these arrangements is
unknown, as this would involve future claims that may be made against the
Fund that have not yet occurred. However, based on experience, the Fund
expects the risk of loss to be remote.
g) 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 Sub-Accounting and Administration Agreement, Reich & Tang
Distributors, Inc. (the "Distributor"), an affiliate of the Manager, performs or
sub-contracts or employs others to perform certain sub-accounting and
administrative services for the Advantage shareholders. For its services under
the Sub-Accounting and Administrative Agreement, the Distributor receives from
the Fund a fee equal to 0.10% per annum of the average daily net assets of the
Advantage shares.
The Fund and the Distributor, have entered into a Shareholder Servicing
Agreement and Distribution Agreement. For its services under the Shareholder
Servicing and Distribution Agreements, the Distributor receives from the
Portfolio a fee, accrued daily and paid monthly, at an annual rate of each
Class's average daily net assets as follows:
Shareholder Servicing Fees Distribution Fees
-------------------------- -----------------
Institutional Service Shares................ .25% -0-
Investor Shares............................. .25% .20%
Short Term Income Shares.................... .25% .45%
Retail Shares............................... .25% .65%
Advantage Shares............................ .25% .75%
For the year ended March 31, 2007, the following fees were voluntarily waived by
the Manager, Distributor and shareholder servicing agent:
Money Market U.S. Treasury U.S. Government Municipal
Portfolio Portfolio Portfolio Portfolio
--------- --------- --------- ---------
Investment management fees.................. $35,834 $-0- $74,074 $58,907
Administration fees......................... 599,814 262,710 33,438 27,637
Distribution fees - Investor shares......... -0- 4,863 N/A N/A
Distribution fees - Short Term Income shares -0- 2,150 N/A 5,853
Distribution fees - Retail shares........... 96,674 121 4,412 4,025
Distribution fees - Advantage shares........ 1,504,860 N/A 92,257 71,004
Sub-Accounting fees - Advantage shares...... 940,537 N/A 57,661 44,377
Transfer agency fees - Investor shares..... 3,484 -0- N/A N/A
Transfer agency fees - Retail Shares....... 29,097 36 1,336 1,208
Total....................................... $3,210,300 $269,880 $263,178 $213,011
- -------------------------------------------------------------------------------
DAILY INCOME FUND
NOTES TO THE FINANCIAL STATEMENTS (Continued)
===============================================================================
2. Investment Management Fees and Other Transactions with Affiliates (continued)
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) and each member of the Audit Committee received an
aggregate payment of $750 per Audit Committee meeting attended allocated among
the funds of the Reich & Tang Complex. 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. The Lead
Independent Trustee receives an additional annual fee of $8,000 and the Deputy
Lead Trustee receives an additional annual fee of $4,000, both fees paid
quarterly and allocated among the funds of the Reich & Tang Complex. Effective
January 1, 2007, the Trustees of the Fund not affiliated with the Manager are
paid a fee that is to be allocated among multiple funds, as defined below. Each
Independent Trustee will receive an annual retainer of $50,000 and a fee of
$3,000 for each Board of Trustees meeting attended. Each Independent Trustee
will also receive a fee of $1,500 for each Board of Trustees meeting held
telephonically. In addition, the Lead Independent Trustee will receive an
additional annual fee of $12,000, payable quarterly and the Audit Committee
Chairman and the Compliance Oversight Committee Chairman will each receive an
additional annual fee of $8,000, payable quarterly. Each Independent Trustee
will also be reimbursed for all out-of-pocket expenses relating to attendance at
such meetings. The fees noted above are to be allocated at the discretion of the
Manager and for purposes of determining which funds in the Reich & Tang complex
will bear the related expense of Independent Trustees fees, the Fund, the
California Daily Tax Free Income Fund, Inc., the Connecticut Daily Tax Free
Income Fund, Inc., and the New Jersey Daily Municipal Income Fund, Inc. are
collectively referred to as, the Combined Funds, the Daily Tax Free Income Fund,
Inc., the Florida Daily Municipal Income Fund and the Short Term Income Fund,
Inc. are collectively referred to as, the Reich & Tang Funds, and Cortland
Trust, Inc. is referred to as, the Cortland Funds. Mr. Kuczmarski, Dr. Mellon,
Mr. Straniere and Dr. Wong will have their fees allocated among the Combined
Funds and Reich & Tang Funds in accordance with the Manager's discretion. Mr.
Dowden, Mr. Frischling, Mr. Lerner and Mr. Schultz will have their fees
allocated among the Combined Funds and the Cortland Funds in accordance with the
Manager's discretion. Directors who are affiliated with the Manager do not
receive compensation from the Fund.
Pursuant to the Transfer Agency Agreement between Reich & Tang and the Fund,
Reich & Tang Services, Inc. as transfer agent and dividend agent, receives a fee
of $17.40 per account per year or a minimum of (i) 0.05% of the monthly average
net assets of the Investor, Short Term Income, and Retail Shares of the Fund or
(ii) 0.02% of the monthly average net assets of the Institutional Service,
Institutional and Pinnacle shares of the Fund. For the year ended March 31, 2007
these fees after waivers amounted to:
Money Market U.S. Treasury U.S. Government Municipal
Portfolio Portfolio Portfolio Portfolio
--------- --------- --------- ---------
Amount Bps Amount Bps Amount Bps Amount Bps
-------- --- -------- --- ------- --- ------- ---
Institutional shares.......... $119,323 2 $126,495 2 $ 925 2 $ 661 2
Institutional Service shares.. 46,650 2 44,211 2 1 * 1 *
Pinnacle shares............... 30,793 2 6,394 2 N/A N/A
Investor shares............... 2,264 2 4,770 5 N/A N/A
Short Term Income shares...... 2,238 5 3,607 5 N/A 1,682 5
Retail shares................. 19,241 2 24 2 870 2 799 2
Total...................... $220,509 $185,501 $1,796 $3,143
* Per account
3. Compensating Balance Arrangement and Other Transactions
Reich & Tang and the Bank of New York have entered into a compensating balance
arrangement with the Daily Income Fund Municipal Portfolio, which would allow
the Portfolio to compensate the Bank for any overdrafts by maintaining a
positive cash balance the next day. Conversely, on any day the Fund maintains a
positive balance it will be allowed to overdraw the account as compensation. In
both cases the Federal Reserve requirements, currently 10%, will be assessed.
Therefore, all overdrafts must be compensated at 100% of the total and all
positive balances will allow for an overdraft of 90% of the total. On March 31,
2007 the cash balance was $166,479.
For the year ended March 31, 2007, the breakdown of expenses paid indirectly by
the Fund were as follows:
Money Market U.S. Treasury U.S. Government Municipal
Portfolio Portfolio Portfolio Portfolio
--------- --------- --------- ---------
Custodian expenses...................................... $20,316 $ 9,992 $-0- $-0-
Shareholder servicing and related shareholder expenses.. 360 104 -0- -0-
Total................................................ $20,676 $10,096 $-0- $-0-
- -------------------------------------------------------------------------------
===============================================================================
4. Transactions in Shares of Beneficial Interest
At March 31, 2007, 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 Year Ended Year Ended
March 31, 2007 March 31, 2006
--------------- --------------
Institutional Shares
--------------------
Sold................................ 3,532,193,281 2,222,373,090
Issued on reinvestment of dividends. 30,075,742 12,076,068
Redeemed............................ (3,295,417,121) (2,077,041,977)
-------------- --------------
Net increase (decrease)............. 266,851,902 157,407,181
============== ==============
Institutional Service Shares
----------------------------
Sold................................ 2,353,647,274 2,100,732,666
Issued on reinvestment of dividends. 11,234,194 5,277,442
Redeemed............................ (2,321,066,724) (2,001,948,552)
-------------- --------------
Net increase (decrease)............. 43,814,744 104,061,556
============== ==============
Pinnacle Shares
---------------
Sold................................ 191,582,537 183,496,040
Issued on reinvestment of dividends. 7,811,634 4,303,379
Redeemed............................ (163,048,227) (167,909,611)
-------------- --------------
Net increase (decrease)............. 36,345,944 19,889,808
============== ==============
Commencement of Operations
November 28, 2006 through
Investor Shares March 31, 2007
- --------------- --------------
Sold................................ 326,218,371
Issued on reinvestment of dividends. 231,079
Redeemed............................ (174,502,593)
--------------
Net increase (decrease)............. 151,946,857
==============
Commencement of Operations
February 12, 2007 through
Short Term Income Shares March 31, 2007
- ------------------------ --------------
Sold................................ 216,561,971
Issued on reinvestment of dividends. 76,285
Redeemed............................ (159,541,535)
--------------
Net increase (decrease)............. 57,096,721
==============
Commencement of Operations
November 28, 2006 through
Retail Shares March 31, 2007
- -------------- --------------
Sold................................ 1,938,862,432
Issued on reinvestment of dividends. 2,713,087
Redeemed............................ (1,043,671,566)
--------------
Net increase (decrease)............. 897,903,953
==============
Commencement of Operations
November 1, 2006 through
Advantage Shares March 31, 2007
- ------------------ --------------
Sold................................ 4,544,671,364
Issued on reinvestment of dividends. 34,760,496
Redeemed............................ (1,465,843,369)
--------------
Net increase (decrease)............. 3,113,588,491
==============
- -------------------------------------------------------------------------------
DAILY INCOME FUND
NOTES TO THE FINANCIAL STATEMENTS (Continued)
===============================================================================
4. Transactions in Shares of Beneficial Interest (continued)
U.S. Treasury Portfolio Year Ended Year Ended
March 31, 2007 March 31, 2006
-------------- --------------
Institutional Shares
----------------------
Sold................................. 3,095,014,636 2,421,293,275
Issued on reinvestment of dividends.. 8,283,894 3,590,453
Redeemed............................. (3,342,758,467) (2,078,604,433)
-------------- --------------
Net increase (decrease).............. (239,459,937) 346,279,295
============== ==============
Institutional Service Shares
----------------------------
Sold................................. 1,017,713,607 1,043,607,042
Issued on reinvestment of dividends.. 6,373,235 3,409,207
Redeemed............................. (1,079,293,656) (979,469,270)
-------------- --------------
Net increase (decrease).............. (55,206,814) 67,546,979
============== ==============
Pinnacle Shares
---------------
Sold................................. 53,982,889 34,672,577
Issued on reinvestment of dividends.. 1,572,612 1,151,037
Redeemed............................. (44,432,493) (47,128,256)
-------------- --------------
Net increase (decrease).............. 11,123,008 (11,304,642)
============== ==============
Commencement of Operations
February 21, 2007 through
Investor Shares March 31, 2007
---------------- --------------
Sold............................ 281,725,704
Issued on reinvestment of dividends 176,886
Redeemed........................ (146,991,867)
-------------
Net increase (decrease)......... 134,910,723
=============
Commencement of Operations
November 2, 2006 through
Short Term Income Shares March 31, 2007
------------------------ --------------
Sold............................ 46,491,785
Issued on reinvestment of dividends 266,519
Redeemed........................ (24,094,981)
------------
Net increase (decrease)......... 22,663,323
============
Commencement of Operations
December 12, 2006 through
Retail Shares March 31, 2007
------------- --------------
Sold............................ 3,448,689
Issued on reinvestment of dividends 4,406
Redeemed........................ (3,081,550)
------------
Net increase (decrease)......... 371,545
============
- -------------------------------------------------------------------------------
DAILY INCOME FUND
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
===============================================================================
4. Transactions in Shares of Beneficial Interest (continued)
U.S. Government Portfolio
Commencement of Operations
March 19, 2007 through
Institutional Shares (a) March 31, 2007
- ------------------------ --------------
Sold............................... 10,000
Issued on reinvestment of dividends -0-
Redeemed........................... -0-
--------------
Net increase (decrease)............ 10,000
==============
Commencement of Operations
October 30, 2006 through
Institutional Service Shares (a) March 31, 2007
- -------------------------------- --------------
Initial Investment made by IXIS.... 35,000,000
Sold............................... 10,000
Issued on reinvestment of dividends 244,835
Redeemed........................... (35,244,835)
--------------
Net increase (decrease)............ 10,000
==============
Commencement of Operations
December 12, 2006 through
Retail Shares March 31, 2007
- ------------- --------------
Sold............................... 124,415,380
Issued on reinvestment of dividends 101,389
Redeemed........................... (67,465,599)
--------------
Net increase (decrease)............ 57,051,170
==============
Commencement of Operations
November 2, through
Advantage Shares March 31, 2007
- ---------------- --------------
Sold............................... 302,636,615
Issued on reinvestment of dividends 2,087,366
Redeemed........................... (110,896,630)
--------------
Net increase (decrease)............ 193,827,351
==============
- -------------------------------------------------------------------------------
DAILY INCOME FUND
NOTES TO THE FINANCIAL STATEMENTS (Continued)
===============================================================================
4. Transactions in Shares of Beneficial Interest (continued)
Municipal Portfolio
Commencement of Operations
March 19, 2007 through
Institutional Shares (a) March 31, 2007
- ------------------------- --------------
Sold............................... 10,000
Issued on reinvestment of dividends -0-
Redeemed........................... -0-
-------------
Net increase (decrease)............ 10,000
=============
Commencement of Operations
October 30, 2006 through
Institutional Service Shares (a) March 31, 2007
- -------------------------------- --------------
Initial Investment made by IXIS 25,000,000
Sold............................... 10,000
Issued on reinvestment of dividends 117,810
Redeemed........................... (25,117,810)
------------
Net increase (decrease)............ 10,000
============
Commencement of Operations
February 20, 2007 through
Short Term Income Shares March 31, 2007
- ------------------------- --------------
Sold............................... 98,421,212
Issued on reinvestment of dividends 32,790
Redeemed........................... (40,538,993)
-------------
Net increase (decrease)............ 57,915,009
=============
Commencement of Operations
December 8, 2006 through
Retail Shares March 31, 2007
- ------------- --------------
Sold............................... 146,464,053
Issued on reinvestment of dividends 60,003
Redeemed........................... (104,707,181)
--------------
Net increase (decrease)............ 41,816,875
==============
Commencement of Operations
November 2, 2006 through
Advantage Shares March 31, 2007
- ---------------- --------------
Sold............................... 310,727,491
Issued on reinvestment of dividends 1,009,357
Redeemed........................... (175,190,956)
--------------
Net increase (decrease)............ 136,545,892
==============
(a) On March 19, 2007 Reich & Tang Asset Management, LLC invested $10,000 in
each of the Institutional and Institutional classes of the U.S. Government
Portfolio and Municipal Portfolios. The amounts are equivalent to less than
1% of total net assets of each Portfolio.
- -------------------------------------------------------------------------------
===============================================================================
5. Tax Information
The tax character of all dividends and distributions paid during the years ended
March 31, 2007 and 2006 were as follows:
Money Market U.S. Treasury U.S. Government Municipal
Portfolio Portfolio Portfolio Portfolio
--------- --------- --------- ---------
2007 2006 2007 2006 2007 2007
---- ---- ---- ---- ---- ----
Ordinary Income $95,364,473 $22,046,032 $43,582,659 $28,863,648 $2,896,549 $-0-
Tax-Exempt Income $-0- $-0- $-0- $-0- $-0- $1,499,539
During the year ended March 31, 2007, the Money Market Portfolio utilized
capital loss carryforwards of $217.
At March 31, 2007, there were no distributable earnings for any Portfolio.
In July 2006, the Financial Accounting Standards Board (the "FASB") issued
Interpretation No.48, "Accounting for Uncertainty in Income Taxes, an
Interpretation of FASB Statement No. 109" ("the Interpretation"). The
Interpretation establishes for all entities, including pass-through entities
such as the Fund, a minimum threshold for financial statement recognition of the
benefit of positions taken in filling tax returns (including whether an entity
is taxable in a particular jurisdiction) and requires certain expanded tax
disclosures. FIN 48 is effective for fiscal years beginning after December 15,
2006. On December 22, 2006, the Securities and Exchange Commission notified the
industry that the implementation of the Interpretation must be incorporated no
later than the last day on which a Net Assets Value is calculated preceding the
Portfolio's 2007 semi-annual report. Management has begun to evaluate the
application of the Interpretation to the Fund, and is not in a position at this
time to estimate the significance of its impact, if any, on the Fund's financial
statements.
- -------------------------------------------------------------------------------
DAILY INCOME FUND
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
===============================================================================
To The Board of Trustees and Shareholders of
Daily Income Fund
In our opinion, the accompanying statements of assets and liabilities, including
the schedules of investments, 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 Money Market Portfolio, U.S.
Treasury Portfolio, U.S. Government Portfolio and Municipal Portfolio
(constituting Daily Income Fund, (formerly Institutional Daily Income Fund)
hereafter referred to as the "Fund") at March 31, 2007, and the results of each
of their operations, the changes in each of their net assets and the financial
highlights for each of the periods presented, 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 the
standards of the Public Company Accounting Oversight Board (United States).
Those standards 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 March 31, 2007 by
correspondence with the custodian and brokers, provide a reasonable basis for
our opinion.
PricewaterhouseCoopers LLP
New York, New York
May 25, 2007
- -------------------------------------------------------------------------------
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.
QUALIFIED INTEREST INCOME
For the fiscal year ended March 31, 2007, the Funds' designate the following
percentages of ordinary distributions paid during the fiscal year that are from
qualified interest income to foreign shareholders:
Qualified Interest
Income
------
Daily Income Fund - Money Market Portfolio 45%
Daily Income Fund - U.S. Treasury Portfolio 100%
Daily Income Fund - U.S. Government Portfolio 100%
- -------------------------------------------------------------------------------
DAILY INCOME FUND
BOARD APPROVAL OF INVESTMENT MANAGEMENT CONTRACT
(UNAUDITED)
===============================================================================
INFORMATION ABOUT THE INVESTMENT MANAGEMENT CONTRACT
On March 8, 2007, the Board of Trustees approved the continuance of the
Investment Management Contract. In determining whether to approve the
continuance of the Investment Management Contract, the Trustees considered the
following information:
1) The nature, extent and quality of services provided by the Manager.
The Trustees reviewed in detail the nature and extent of the services provided
by the Manager under the terms of the Fund's Investment Management Contract and
the quality of those services over the past year. The Trustees noted that the
services include managing the investment and reinvestment of the Fund's assets;
the provision of reports to the Board regarding changes in portfolio holdings,
important developments affecting the entities whose securities are included in
the Fund's portfolio, and the money market industry and the economy in general;
and the payment of compensation of all officers, trustees and employees of the
Fund who are officers of the Manager or its affiliates. The Board also observed
that the Manager provides various administrative services to the Fund pursuant
to the terms of a separate Administrative Services Contract and considered the
nature, extent and quality of services provided under that agreement as well.
The Trustees evaluated these factors based on their direct experience with the
Manager and in consultation with counsel to the independent Trustees and Fund
counsel. The Trustees concluded that the nature and extent of the services
provided under the Investment Management Contract were reasonable and
appropriate in relation to the management fees, that the level of services
provided by the Manager had not diminished over the past year and that the
quality of services continues to be high. The Trustees reviewed the personnel
responsible for providing advisory services to the Fund and concluded, based on
their experience and interaction with the Manager, that (i) the Manager was able
to retain quality portfolio managers and other personnel; (ii) the Manager
exhibited a high level of diligence and attention to detail in carrying out its
advisory responsibilities under the Investment Management Contract; (iii) the
Manager was responsive to requests of the Trustees; and (iv) the Manager had
kept the Trustees apprised of developments relating to the Fund and the industry
in general. The Trustees also focused on the Manager's reputation and
long-standing relationship with the Fund and, in particular, the experience of
the Manager in advising money market funds. The Trustees also noted the high
quality of services provided by the Manager under the Administrative Services
Contract.
2) The performance of the Fund and the Manager.
The Trustees reviewed the investment performance of the Fund's Money Market
Portfolio and U.S. Treasury Portfolio, both on an absolute basis and as compared
to various Lipper peer group categories for the one-month and one-, three-,
five- and ten-year periods ended December 31, 2006. The peer group categories
included: (i) an asset-based peer group of institutional money market funds, as
classified by Lipper, as the peer group for the Money Market Portfolio's
Institutional Service Class shares and institutional U.S. Treasury money market
funds, as classified by Lipper, as the peer group for the U.S. Treasury
Portfolio's Institutional Service Class shares ("expense group 1"); (ii) a
competitors' class peer group for the Money Market Portfolio's Institutional
Service Class shares and the U.S. Treasury Portfolio's Institutional Service
Class shares, representing other institutional money market funds that are
considered to be competitors of the Money Market Portfolio with similar
distribution channels and institutional U.S. Treasury money market funds that
are considered to be competitors of the U.S. Treasury Portfolio with similar
distribution channels ("expense group 2"); (iii) a peer group of all funds in
the Money Market Portfolio's and the U.S. Treasury Portfolio's Lipper universe
regardless of asset size ("expense universe"); and (iv) other funds with similar
investment objectives to the Money Market Portfolio and the U.S. Treasury
Portfolio that are advised or sub-advised by the Manager. These peer groups are
referred to collectively as the "Peer Groups." The Manager advised the Board
that it does not advise or sub-advise other types of accounts, such as
institutional and pension accounts, with similar investment policies to the
Money Market Portfolio or U.S. Treasury Portfolio. The Trustees used the Money
Market Portfolio's and U.S. Treasury Portfolio's performance against their
respective Peer Groups to provide objective comparative benchmarks against which
they could assess the Money Market Portfolio's and U.S. Treasury Portfolio's
performance. The Trustees considered those comparisons as helpful in their
assessment as to whether the Manager was obtaining for the Fund's shareholders
the performance that was available in the marketplace given the Money Market
Portfolio's and U.S. Treasury Portfolio's investment objectives, strategies,
limitations and restrictions. In particular, the Board noted that the gross
performance of the Money Market Portfolio and U.S. Treasury Portfolio against
their respective Peer Groups was satisfactory and that (i) the Money Market
Portfolio's ranking against the Lipper performance universe (which includes all
funds in the expense universe regardless of asset-size or primary channel of
distribution) was in the 1st quintile for the one-month and three-year periods
and the 2nd quintile for the one-year, five-year and ten-year periods, and (ii)
the U.S. Treasury Portfolio's ranking against the Lipper performance universe
was in the 1st quintile for the ten-year period, the 2nd quintile for the
five-year period and the 3rd quintile for the one-month, one-year and three-year
periods (the 1st quintile is the highest quintile).
In connection with its assessment of the performance of the Manager, the
Trustees considered the Manager's financial condition and whether it has the
resources necessary to continue to carry out its obligations under the
Investment Management Contract. The Trustees took into account, in this regard,
the payments made by the Manager from its own resources to securities brokers,
banks and financial institutions or other industry professionals or
organizations whose customers are shareholders of the Fund ("Participating
Organizations") in connection with distribution assistance and shareholder
servicing provided by the Participating Organizations. The Trustees concluded
that the Manager had the financial resources necessary to continue to perform
its obligations under the Investment Management Contract and to continue to
provide the high quality services that it had provided to the Fund to date.
- -------------------------------------------------------------------------------
===============================================================================
INFORMATION ABOUT THE INVESTMENT MANAGEMENT CONTRACT, continued
3) The cost of the advisory services and the profits to the Manager and its
affiliates from the relationship with the Fund.
In connection with the Trustees' consideration of the level of the management
fees, the Trustees considered a number of factors. The Trustees compared the
level of the management fees for the Money Market Portfolio and the U.S.
Treasury Portfolio, as well as the U.S. Government Portfolio and the Municipal
Portfolio (collectively, the "Portfolios") against the advisory fees charged to
the funds in their respective Peer Groups (with respect to the U.S. Government
Portfolio and the Municipal Portfolio such Peer Groups are defined below) and
each Portfolio's combined management-administrative fees against fees covering
both advisory and administrative services charged to the funds in their
respective Peer Groups. With respect to the U.S. Government Portfolio and the
Municipal Portfolio, the Lipper peer group categories included: (i) an
asset-based peer group of U.S. government money market funds, as classified by
Lipper, as the peer group for the U.S. Government Portfolio's Retail Class
shares and tax-exempt money market funds, as classified by Lipper, as the peer
group for the Municipal Portfolio's Retail Class shares ("expense group 1");
(ii) a competitor's class peer group for the U.S. Government Portfolio and the
Municipal Portfolio representing other U.S. government money market funds that
are considered to be competitors of the U.S. Government Portfolio with similar
distribution channels and tax-exempt money market funds that are considered to
be competitors of the Municipal Portfolio with similar distribution channels
("expense group 2"); (iii) a peer group of all funds in the U.S. Government
Portfolio's and U.S. Treasury Portfolio's Lipper universe regardless of asset
size ("expense universe"); and (iv) other funds with similar investment
objectives to the U.S. Government Portfolio and the Municipal Portfolio that are
advised or sub-advised by the Manager.
The Trustees also considered comparative total fund expenses of each class of
the Portfolios and their respective Peer Groups. The Trustees used this combined
fee information and total expense data as a guide to help assess the
reasonableness of each Portfolio's management fee, although they acknowledged
that it was difficult to make precise comparisons with other funds since the
exact nature of services provided under the respective Peer Groups fund
agreements is often not apparent. The Trustees also viewed the respective Peer
Groups fee information as a whole as useful in assessing whether the Manager was
providing services at a cost that was competitive with other, similar funds. In
assessing this information, the Trustees considered both the comparative
contract rates as well as the level of the management fees after waivers and/or
reimbursements. The Board noted that the contract rate of each Portfolio's
management fee and combined fees (management and administrative) were reasonable
when compared to the combined fees of the respective Peer Groups. The Trustees
also noted that the Manager did not advise or sub-advise any other types of
accounts, such as institutional or pension accounts, with similar investment
policies to the Portfolios. The Trustees concluded that the level of each
Portfolio's management fee was reasonable in light of these factors.
The Trustees also considered the profitability to the Manager and its affiliates
arising out of their relationships with the Fund. In this regard the Trustees
reviewed profitability data relating to the Manager and its affiliates for the
year ended December 31, 2005, and were provided with a verbal update as to the
range of profitability as of December 31, 2006. The Manager assured the Trustees
that final profitability data would be distributed to the Trustees as soon as it
was finalized. The Trustees considered revenues received by the Manager under
the Investment Management Contract and Administrative Services Contract as well
as revenues received by the Manager's affiliates under the 12b-1 Plans and
related agreements, Transfer Agency Agreement and revenues derived from Reich &
Tang's cash management business (e.g. checking and debit card services that are
offered by Reich & Tang to Fund shareholders through certain Participating
Organizations). The Trustees concluded that the profitability of the Fund to the
Manager and its affiliates was not excessive.
4) The extent to which economies of scale will be realized as the Fund grows
and whether fee levels reflect those economies of scale.
With respect to the Trustees' consideration of economies of scale, the Trustees
discussed with the Manager whether economies of scale would be realized by it in
its management of the Fund at higher asset levels. The Trustees also discussed
with the Manager whether certain of the Manager's costs would increase if asset
levels rise and observed that as assets rise, the Manager and its affiliates may
be required to pay increased fees to Participating Organizations. The Trustees
also reviewed the respective Peer Groups data to assess whether the respective
Peer Groups funds had advisory or administrative fee breakpoints and, if so, at
what asset levels. The Trustees concluded that they were unable to assess at
this time whether economies of scale would be realized if the Fund were to
experience significant asset growth. In the event of significant asset growth in
the future, the Trustees determined to reassess whether the management fees
appropriately took into account any economies of scale that had been realized as
a result of that growth.
5) Other Factors.
In addition to the above factors, the Trustees acknowledged the importance of
the ability of the Manager's affiliate, the distributor, to market the Fund
through its distribution networks, including its customer service and
administration system with banks and bank customers Based on a consideration of
all these factors in their totality, the Trustees, including all of the
disinterested Trustees, determined that the Fund's management fees were fair and
reasonable with respect to the quality of services that the Manager provides and
in light of the other factors described above that the Trustees deemed relevant.
The Trustees based their decision on evaluations of all these factors as a whole
and did not consider any one factor as all-important or controlling. The
disinterested Trustees were also assisted by the advice of independent counsel
in making this determination.
- -------------------------------------------------------------------------------
DAILY INCOME FUND
RESULTS OF PROXY
SPECIAL MEETING OF SHAREHOLDERS, DECEMBER 6, 2006
(UNAUDITED)
===============================================================================
A Special Meeting of Shareholders of the Fund was held at the Fund's office, 600
Fifth Avenue, New York, New York, on December 6, 2006. The purpose of the
meeting was to (i) elect Trustees of the Fund and (ii) to amend Daily Income
Fund's fundamental Policy Regarding Lending. To amend fundamental investment
restriction no. 14 regarding loans to read as follows: "The Fund may not make
loans except through (i) the purchase of debt obligations in accordance with its
investment objectives and policies, (ii) the lending of its portfolio
securities, (iii) the use of repurchase agreements, or (iv) the making of loans
to affiliated funds as permitted by the 1940 Act, the rules and regulations
thereunder, or by guidance regarding, and interpretations of , or exemptive
orders under, the 1940 Act.". No other business was transacted at the meeting.
The results of the voting at the Special Meeting are as follows:
1. To elect Trustees for the Fund:
Shares % of % of
Edward A. Kuczmarski Voted Outstanding Shares Shares Voted
- -----------------------------------------------------------------------------------------------------------------------------------
For 1,036,591,542.050 61.62% 99.58%
Withheld 4,369,039.800 0.26% 0.42%
Dr. W. Giles Mellon
- -----------------------------------------------------------------------------------------------------------------------------------
For 1,036,590,496.050 61.62% 99.58%
Withheld 4,370,085.800 0.26% 0.42%
Robert Straniere, Esq.
- -----------------------------------------------------------------------------------------------------------------------------------
For 1,036,592,405.050 61.62% 99.58%
Withheld 4,368,176.800 0.26% 0.42%
Dr. Yung Wong
- -----------------------------------------------------------------------------------------------------------------------------------
For 1,036,574,127.050 61.62% 99.58%
Withheld 4,386,454.800 0.26% 0.42%
Albert R. Dowden
- -----------------------------------------------------------------------------------------------------------------------------------
For 1,036,607,202.050 61.62% 99.58%
Withheld 4,353,379.800 0.26% 0.42%
William Lerner
- -----------------------------------------------------------------------------------------------------------------------------------
For 1,036,607,163.050 61.62% 99.58%
Withheld 4,353,418.800 0.26% 0.42%
James L. Schultz
- -----------------------------------------------------------------------------------------------------------------------------------
For 1,036,607,098.050 61.62% 99.58%
Withheld 4,353,483.800 0.26% 0.42%
Carl Frischling
- -----------------------------------------------------------------------------------------------------------------------------------
For 1,036,588,553.050 61.62% 99.58%
Withheld 4,372,028.800 0.26% 0.42%
Steven W. Duff
- -----------------------------------------------------------------------------------------------------------------------------------
For 1,036,574,127.050 61.62% 99.58%
Withheld 4,386,454.800 0.26% 0.42%
2. To amend the Money Market Portfolio and U.S. Treasury Portfolio fundamental
policy regarding lending
For 248,259,975.480 30.72%
Against 16,051,399.120 1.99%
Abstain 7,113,620.100 0.88%
Broker Non-votes 122,403,513.000 15.15%
Total 393,828,507.700 48.74%
- -------------------------------------------------------------------------------
DAILY INCOME FUND
TRUSTEES AND OFFICERS INFORMATION
(UNAUDITED)
==============================================================================
Trustees and Officers Information
March 31, 2007(1)
- ----------------------------------------------------------------------------------------------------------------------------
Position(s) Term of Office Principal Occupation(s) Number of Other
Name, Address(2), Held with and Length of During Past Portfolios in Directorships
and Age Fund Time Served(3) 5 Years Fund Complex held by
Overseen by Director
Director
- ----------------------------------------------------------------------------------------------------------------------------
Disinterested Directors:
- ----------------------------------------------------------------------------------------------------------------------------
Albert R. Dowden, Trustee Since 2006 Corporate Director/Trustee for Director of ten Director/Trustee
Age 65 Annuity & Life Re (Holdings) portfolios of Annuity & Life
Ltd., Boss Group, Ltd., Re (Holdings)
Homeowners of America Holdings Ltd., Boss Group,
Corporation, CompuDyne Ltd., Homeowners
Corporation, and AIM Funds. of America
Holdings
Corporation,
CompuDyne
Corporation and
the AIM Funds.
- --------------------- ---------- --------------- ---------------------------------- -------------------- -------------------
Carl Frischling, Trustee Since 2006 Partner of Kramer Levin Naftalis Director of ten Director of the AIM
Esq., Age 70 & Frankel LLP (a law firm) with portfolios Funds.
which he has been associated
with since 1994.
- --------------------- ---------- --------------- ---------------------------------- -------------------- -------------------
Edward A. Kuczmarski, Trustee Since 2006 Certified Public Accountant and Director/Trustee Trustee of the
Age 57 Partner of Hays & Company LLP of fourteen Empire Builder
since 1980. portfolios Tax Free Bond
Fund and ISI
Funds.
- --------------------- ---------- --------------- ---------------------------------- -------------------- -------------------
William Lerner, Trustee Since 2006 Self-employed consultant to Director of ten Director of
Esq., Age 70 business entities and portfolios MTM Technologies,
entrepreneurs for corporate Inc. and Coach
governance and corporate Industries Group,
secretarial services. Inc.
- --------------------- ---------- --------------- ---------------------------------- -------------------- -------------------
Dr. W. Giles Mellon, Trustee Since 1987 Professor Emeritus of Business Director/Trustee N/A
Age 76 Administration in the Graduate of thirteen
School of Management, Rutgers portfolios
University with which he has
been associated with since 1966.
- --------------------- ---------- --------------- ---------------------------------- -------------------- -------------------
James L. Schultz, Trustee Since 2006 Self-employed as a consultant. Director of ten None
Age 70 Formerly President of Computer portfolios
Research Inc. from 1975 to 2001.
- --------------------- ---------- --------------- ---------------------------------- -------------------- -------------------
Robert Straniere, Trustee Since 1987 Owner, Straniere Law Firm since Director/Trustee Sparx Japan Funds
Esq, 1980, of thirteen
Age 66 NYS Assemblyman from 1981 to 2004 portfolios
and counsel at Fisher & Fisher
since 1995.
- --------------------- ---------- --------------- ---------------------------------- -------------------- -------------------
Dr. Yung Wong, Trustee Since 1987 Managing Director of Abacus Trustee/Trustee of N/A
Age 68 Associates, an investment firm, thirteen portfolios
since 1996.
- ----------------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
===============================================================================
Trustees and Officers Information
March 31, 2007(1)
- ----------------------------------------------------------------------------------------------------------------------------
Position(s) Term of Office Principal Occupation(s) Number of Other
Name, Address(2), Held with and Length of During Past Portfolios in Directorships
and Age Fund Time Served(3) 5 Years Fund Complex held by
Overseen by Director
Director
- ----------------------------------------------------------------------------------------------------------------------------
Interested Directors/ Officers
- ----------------------------------------------------------------------------------------------------------------------------
Steven W. Duff, President Since 1994 Manager and President of Reich & Director/Trustee None
Age 53 and Tang Asset Management, LLC and/or Officer of
Trustee(4) ("RTAM, LLC"), a registered eighteen portfolios
Investment Advisor and President
of the Mutual Funds Division of
RTAM, LLC. Associated with RTAM,
LLC since 1994. Mr. Duff is also
President and Director/Trustee of
eight other funds in the Reich &
Tang Fund Complex, Director of
Pax World Money Market Fund,
Inc., Principal Executive Officer
of Delafield Fund, Inc. and
President and Chief Executive
Officer of Tax Exempt Proceeds
Fund, Inc. Mr. Duff also serves
as a Director of Reich & Tang
Services, Inc. and President of
Reich & Tang Distributors, Inc.
- -------------------- ----------- --------------- ---------------------------------- -------------------- -------------------
Richard De Sanctis, Vice Since 2005 Executive Vice President and CFO N/A N/A
Age 50 President of RTAM LLC. Associated with
RTAM, LLC since 1990.Mr. De
Sanctis is Vice President of ten
other funds in the Reich & Tang
Fund Complex, Vice President and
Assistant Secretary of Cortland
Trust, Inc. and serves as
Executive Vice President and
Chief Financial Officer of Reich
& Tang Services, Inc. and Reich &
Tang Distributors, Inc. Prior to
December 2004, Mr. De Sanctis was
Treasurer and Assistant Secretary
of eleven funds in the Reich &
Tang Fund Complex and Vice
President, Treasurer and
Assistant Secretary of Cortland
Trust, Inc.
- -------------------- ----------- --------------- ---------------------------------- -------------------- -------------------
Molly Flewharty, Vice Since 1987 Senior Vice President of RTAM, N/A N/A
Age 56 President LLC. Associated with RTAM, LLC
since 1977. Ms. Flewharty is
also Vice President of eleven
other funds in the Reich & Tang
Fund Complex. Ms. Flewharty also
serves as Senior Vice President
of Reich & Tang Distributors, Inc.
- -------------------- ----------- --------------- ---------------------------------- -------------------- -------------------
Rosanne Holtzer, Chief Since 2004 Senior Vice President, Compliance N/A N/A
Age 42 Compliance Officer and Assistant Secretary
Officer of RTAM, LLC. Associated with
Secretary Since 2001 RTAM, LLC since 1986. Ms.
Holtzer is also Chief Compliance
Assistant Officer, Secretary and Assistant
Treasurer Since 1998 Treasurer of eleven other funds
in the Reich & Tang Fund
Complex. Ms. Holtzer also serves
as Senior Vice President,
Assistant Secretary & Compliance
Officer of Reich & Tang
Distributors, Inc. and Senior
Vice President, Assistant
Secretary & Chief Compliance
Officer of Reich & Tang Services,
Inc.
- ----------------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
===============================================================================
Trustees and Officers Information
March 31, 2007(1)
- ----------------------------------------------------------------------------------------------------------------------------
Position(s) Term of Office Principal Occupation(s) Number of Other
Name, Address(2), Held with and Length of During Past Portfolios in Directorships
and Age Fund Time Served(3) 5 Years Fund Complex held by
Overseen by Director
Director
- ----------------------------------------------------------------------------------------------------------------------------
Interested Directors/ Officers (continued)
- ----------------------------------------------------------------------------------------------------------------------------
Michael Lydon, Vice Since 2005 Executive Vice President and N/A N/A
Age 43 President Chief Operations Officer of RTAM,
LLC. Associated with RTAM, LLC
since January 2005. Mr. Lydon
was Vice President at Automatic
Data Processing from July 2000 to
December 2004. Prior to July
2000, Mr. Lydon was Executive
Vice President and Chief
Information Officer of RTAM,
LLC. Mr. Lydon is also Vice
President of eleven other funds
in the Reich & Tang Fund
Complex. Mr. Lydon also serves
as Executive Vice President and
Chief Operations Officer for
Reich & Tang Distributors, Inc.
and Reich & Tang Services, Inc.
- -------------------- ----------- --------------- ---------------------------------- -------------------- -------------------
Dana E. Messina, Vice Since 1987 Executive Vice President of N/A N/A
Age 50 President RTAM, LLC. Associated with
RTAM, LLC since 1980. Ms.
Messina is also Vice President
of eight other funds in the
Reich & Tang Fund Complex. Ms.
Messina also serves as Executive
Vice President of Reich & Tang
Distributors, Inc.
- -------------------- ----------- --------------- ---------------------------------- -------------------- -------------------
Anthony Pace, Treasurer Since 2004 Vice President of RTAM, LLC N/A N/A
Age 41 and since September 2004. Mr. Pace
Assistant was a Director of a Client
Secretary Service Group at GlobeOp
Financial Services, Inc. from
May 2002 to August 2004 and
Controller/Director of Mutual
Fund Administration for Smith
Barney Funds Management LLC and
Salomon Brothers Asset
Management Inc. from 1998 to May
2002. Mr. Pace is also
Treasurer and Assistant
Secretary of eleven other funds
in the Reich & Tang Fund Complex.
- ----------------------------------------------------------------------------------------------------------------------------
(1) The Statement of Additional Information includes additional information
about Daily Income Fund (the "Fund") trustees/officers and is available,
without charge, upon request by calling the Fund's transfer agent at (800)
433-1918.
(2) The address for each of the above trustees/officers of the Fund is Reich &
Tang Asset Management, LLC, 600 Fifth Avenue, New York, NY 10020.
(3) Each Trustee will hold office for an indefinite term until the earliest of
(i) the next meeting of shareholders, if any, called for the purpose of
considering the election or re-election of such Trustee and until the
election and qualification of his or her successor, if any, elected at such
meeting, or (ii) the date a Trustee resigns or retires, or a Trustee is
removed by the Board of Trustees or shareholders, in accordance with the
Fund's Articles of Incorporation, as amended, and Amended and Restated
By-Laws. Each officer will hold office for an indefinite term until the
date he or she resigns or retires or until his\her successor is elected and
qualifies.
(4) Steven W. Duff is deemed an interested person of the Fund due to his
affiliation with Reich & Tang Asset Management, LLC, the Fund's investment
advisor.
[THIS PAGE INTENTIONALLY LEFT BLANK.]
[THIS PAGE INTENTIONALLY LEFT BLANK.]
- ----------------------------------------
This report is submitted for the
general information of the shareholders
of the Fund. It is not authorized for
distribution to prospective investors
in the Fund unless preceded or
accompanied by an effective prospectus,
which includes information regarding
the Fund's objectives and policies,
experience of its management,
marketability of shares, and other
information.
- ----------------------------------------
Daily Income Fund
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
2 Hanson Place, 7th Floor,
Brooklyn, New York 11217
Transfer Agent &
Dividend Disbursing Agent
Reich & Tang Services, Inc.
600 Fifth Avenue
New York, New York 10020
DIF 3/07A
Item 2: Code of Ethics
The registrant has adopted a Code of Ethics applicable to its Principal
Executive and Senior Financial Officers.
Item 3: Audit Committee Financial Expert
The registrant's Board of Trustees has determined that there is an audit
committee financial expert serving on its audit committee, Edward A. Kuczmarski,
who is "independent," as defined in the instructions to this Item.
Item 4: Principal Accountant Fees and Services
FYE 3/31/2007 FYE 3/31/2006
4(a) Audit Fees $126,500 $54,800
4(b) Audit Related Fees $ 0 $ 0
4(c) Tax Fees $ 7,500 $ 7,161
4(d) All Other Fees $ 0 $ 0
4(e)(1) The audit committee has adopted pre-approval policies and procedures
whereby the audit committee has pre-approved the provision of certain enumerated
tax services to the registrant by the registrant's principal accountant to the
extent the fee is less than $5,000 per occurrence.
4(e)(2) None
4(f) Not applicable.
4(g) $7,500 and $49,500, respectively, were the amount of non-audit fees that
were billed by the registrant's accountant for services rendered to (i) the
registrant, and (ii) the registrant's investment adviser and any control person
of the adviser that provides ongoing services to the registrant for the fiscal
year ended March 31, 2007. $7,161 and $45,000, respectively, were the amount of
non-audit fees that were billed by the registrant's accountant for services
rendered to (i) the registrant, and (ii) the registrant's investment adviser and
any control person of the adviser that provides ongoing services to the
registrant for the fiscal year ended March 31, 2006.
4(h) The registrant's audit committee has considered whether its principal
accountant's provision of non-audit services that were rendered to the
registrant's investment adviser, and any control persons of the investment
adviser that provides ongoing services to the registrant, that were not
pre-approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X, is
compatible with maintaining the principal accountant's independence.
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) Code of Ethics.
(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) Daily Income Fund
By (Signature and Title)* /s/Rosanne Holtzer, Secretary
-----------------------------
Rosanne Holtzer, Secretary
Date: June 8, 2007
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, President
----------------------------
Steven W. Duff, President
Date: June 8, 2007
By (Signature and Title)* /s/Anthony Pace, Treasurer
--------------------------
Anthony Pace, Treasurer
Date: June 8, 2007
* Print the name and title of each signing officer under his or her signature.