As filed with the Securities and Exchange Commission on December 7, 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)
Christine Manna
c/o Reich & Tang Asset Management, LLC
600 Fifth Avenue
New York, New York 10020
(Name and address of agent for service)
Registrant's telephone number, including area code: 212-830-5200
Date of fiscal year end: March 31
Date of reporting period: September 30, 2007
Item 1: Report to Stockholders
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DAILY 600 FIFTH AVENUE
INCOME NEW YORK, NY 10020
FUND (212)830-5200
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Semi-Annual
Report
September 30, 2007
(Unaudited)
[THIS PAGE INTENTIONALLY LEFT BLANK.]
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DAILY INCOME FUND
TABLE OF CONTENTS
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Shareholder Letter 4 Municipal Portfolio
Money Market Portfolio Expense Chart 50
Expense Chart 5 Schedule of Investments 52
Schedule of Investments 7 Statement of Assets and Liabilities 62
Statement of Assets and Liabilities 22 Statement of Operations 63
Statement of Operations 23 Statements of Changes in Net Assets 64
Statements of Changes in Net Assets 24 Financial Highlights 65
Financial Highlights 25 Notes to Financial Statements 70
Additional Information 78
U.S Treasury Portfolio
Expense Chart 30
Schedule of Investments 32
Statement of Assets and Liabilities 34
Statement of Operations 35
Statements of Changes in Net Assets 36
Financial Highlights 37
U.S. Government Portfolio
Expense Chart 41
Schedule of Investments 42
Statement of Assets and Liabilities 44
Statement of Operations 45
Statements of Changes in Net Assets 46
Financial Highlights 47
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DAILY INCOME FUND
SHAREHOLDER LETTER
===============================================================================
Dear Shareholder:
We are pleased to present the semi-annual report of Daily Income Fund (the
"Fund") for the period ended September 30, 2007. As of September 30, 2007:
The Money Market Portfolio had net assets of $7,228,166,909.
The U.S. Treasury Portfolio had net assets of $1,243,486,776.
The U.S. Government Portfolio had net assets of $418,386,731.
The Municipal Portfolio had net assets of $404,304,225.
We thank you for your support and look forward to continuing to serve your cash
management needs.
Sincerely,
/S/ Steven W. Duff
Steven W. Duff
President
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DAILY INCOME FUND
MONEY MARKET PORTFOLIO
EXPENSE CHART
FOR THE SIX MONTHS ENDED SEPTEMBER 30, 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 September 30, 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.
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Institutional Shares & Beginning Account Ending Account Value Expenses Paid Annualized
Pinnacle Shares (a) Value 04/01/07 09/30/07 During the period Expense Ratio
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Actual $1,000.00 $1,026.20 $1.01 0.20%
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Hypothetical (5% return before $1,000.00 $1,024.00 $1.01 0.20%
expenses)
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Institutional Service Shares (a) Beginning Account Ending Account Value Expenses Paid Annualized
Value 04/01/07 09/30/07 During the Period Expense Ratio
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Actual $1,000.00 $1,024.90 $2.28 0.45%
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Hypothetical (5% return before $1,000.00 $1,022.75 $2.28 0.45%
expenses)
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Investor Shares (a) Beginning Account Ending Account Value Expenses Paid Annualized
Value 04/01/07 09/30/07 During the Period Expense Ratio
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Actual $1,000.00 $1,023.90 $3.29 0.65%
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Hypothetical (5% return before $1,000.00 $1,021.75 $3.29 0.65%
expenses)
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Short Term Income Shares (a) Beginning Account Ending Account Value Expenses Paid Annualized
Value 04/01/07 09/30/07 During the Period Expense Ratio
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Actual $1,000.00 $1,022.40 $4.75 0.94%
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Hypothetical (5% return before $1,000.00 $1,020.30 $4.75 0.94%
expenses)
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DAILY INCOME FUND
MONEY MARKET PORTFOLIO
EXPENSE CHART (CONTINUED)
FOR THE SIX MONTHS ENDED SEPTEMBER 30, 2007
(UNAUDITED)
===============================================================================
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Retail Shares (a) Beginning Account Ending Account Value Expenses Paid Annualized
Value 04/01/07 09/30/07 During the Period Expense Ratio
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Actual $1,000.00 $1,022.10 $5.06 1.00%
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Hypothetical (5% return before $1,000.00 $1,020.00 $5.05 1.00%
expenses)
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Beginning Account Ending Account Value Expenses Paid Annualized
Advantage Shares (a) Value 04/01/07 09/30/07 During the Period Expense Ratio
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Actual $1,000.00 $1,022.00 $5.16 1.02%
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Hypothetical (5% return before $1,000.00 $1,019.90 $5.15 1.02%
expenses)
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Beginning Account Ending Account Value Expenses Paid Annualized
Xpress Shares Value 06/19/07 09/30/07 During the Period Expense Ratio
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Actual (b) $1,000.00 $1,011.60 $3.57 1.25%
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Hypothetical (5% return before $1,000.00 $1,018.75 $6.31 1.25%
expenses) (a)
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(a) Expenses are equal to the Fund's annualized expense ratios multiplied by
the average account value over the period (April 1, 2007 through September
30, 2007), multiplied by 183/366 (to reflect the most recent fiscal
half-year).
(b) Expenses are equal to the Fund's annualized expense ratios multiplied by
the average account value over the period (June 19, 2007 through September
30, 2007), multiplied by 104/366 (to reflect the most recent fiscal
half-year).
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DAILY INCOME FUND
MONEY MARKET PORTFOLIO
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2007
(UNAUDITED)
===============================================================================
Face Maturity Current Value
Amount Date Coupon (1) (Note 1)
- ----------- ---- ---------- --------
Asset Back Commercial Paper (4.47%)
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$ 150,000,000 Chesham Finance Limited
Supported by Credit Worthy Counterparties* 11/05/07 6.06% $ 149,125,000
75,000,000 Chesham Finance Limited
Supported by Credit Worthy Counterparties* 11/06/07 5.35 74,604,000
25,000,000 Ticonderoga Funding
Supported by Total Return Swaps with Bank of America 10/09/07 6.30 24,965,222
75,000,000 Ticonderoga Funding
Supported by Total Return Swaps with Bank of America 11/21/07 5.89 74,383,750
- ---------------- -------------
325,000,000 Total Asset Back Commercial Paper 323,077,972
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Domestic Certificates of Deposit (2.07%)
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$ 50,000,000 SunTrust Bank Floating Rate CD (2) 11/19/07 5.47% $ 50,000,666
50,000,000 Wilmington Trust Company 01/22/08 5.36 50,000,000
50,000,000 Wilmington Trust Company 12/21/07 5.36 50,000,000
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150,000,000 Total Domestic Certificates of Deposit 150,000,666
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Eurodollar Certificates of Deposit (12.94%)
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$ 100,000,000 Alliance & Leicester PLC 02/14/08 5.56% $ 100,001,845
100,000,000 Barclays Bank PLC 03/11/08 5.50 100,002,190
25,000,000 Barclays Bank PLC 03/14/08 5.56 25,000,557
75,000,000 Credit Industriel et Commercial 10/04/07 5.71 75,000,000
50,000,000 Credit Industriel et Commercial 11/13/07 5.34 50,000,000
25,000,000 HBOS Treasury Services 03/17/08 5.50 25,000,000
200,000,000 HSBC Bank PLC 11/01/07 5.32 200,000,000
75,000,000 Northern Rock PLC 10/19/07 5.33 75,000,000
25,000,000 Societe Generale 10/16/07 5.34 25,000,050
100,000,000 Societe Generale 12/03/07 5.15 100,000,000
75,000,000 Societe Generale 12/19/07 5.37 75,000,000
85,000,000 Unicredito Italiano 12/07/07 5.25 85,002,341
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935,000,000 Total Eurodollar Certificates of Deposit 935,006,983
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Floating Rate Securities (5.05%)
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$ 100,000,000 Bank of America Federal Funds Floater (3) 10/19/07 5.30% $ 100,000,000
50,000,000 General Electric Capital Corp. (4) 01/03/08 5.42 50,012,434
50,000,000 Goldman Sachs & Company (5) 04/16/08 5.78 50,000,000
50,000,000 Harris Bank Floater (6) 08/18/08 5.36 50,000,000
25,000,000 JPMorgan Chase & Co. Extendable LIBOR Floating Rate Note (7) 10/10/08 5.80 25,000,000
40,000,000 Merrill Lynch & Co. Extendible Floater (8) 10/17/08 5.75 40,000,000
50,000,000 Sigma Finance Inc. (9) 12/13/07 4.83 49,999,477
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365,000,000 Total Floating Rate Securities 365,011,911
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The accompanying notes are an integral part of these financial statements.
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DAILY INCOME FUND
MONEY MARKET PORTFOLIO
SCHEDULE OF INVESTMENTS (CONTINUED)
SEPTEMBER 30, 2007
(UNAUDITED)
===============================================================================
Face Maturity Current Value
Amount Date Coupon (1) (Note 1)
- ----------- ---- ---------- ---------
Foreign Commercial Paper (1.85%)
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$ 50,000,000 Anglo Irish Bank Corporation PLC 12/17/07 5.37% $ 49,440,681
11,916,000 Britannia Building Society 10/16/07 5.34 11,889,834
22,855,000 Britannia Building Society 10/22/07 5.34 22,784,607
50,000,000 Yorkshire Building Society 10/10/07 5.32 49,935,250
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134,771,000 Total Foreign Commercial Paper 134,050,372
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Letter of Credit Commercial Paper (0.84%)
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$ 31,000,000 Cofco Capital Corp.
LOC Rabobank Nederland 10/18/07 5.79% $ 30,915,826
30,000,000 ICICI Bank LTD,
LOC Fortis Bank 02/01/08 5.32 29,475,200
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61,000,000 Total Letter of Credit Commercial Paper 60,391,026
- ---------------- -------------
Loan Participations (2.23%)
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$ 62,000,000 AXA Equitable Life Insurance Company with J.P.Morgan Chase(10) 03/21/08 5.26% $ 62,000,000
44,500,000 McGraw Hill Companies 10/04/07 5.36 44,500,000
30,000,000 McGraw Hill Companies 11/05/07 5.37 30,000,000
25,000,000 McGraw Hill Companies 12/04/07 5.39 25,000,000
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161,500,000 Total Loan Participations 161,500,000
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Medium Term Note (0.42%)
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$ 30,000,000 Barclays Bank PLC 11/02/07 5.41% $ 30,000,000
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30,000,000 Total Medium Term Note 30,000,000
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Other Notes (0.14%)
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$ 10,000,000 Michigan Public Educational Facilities Authority
LOC Bank of New York 08/22/08 5.30% $ 10,000,000
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10,000,000 Total Other Note 10,000,000
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Time Deposit (2.90%)
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$ 210,000,000 Dresdner Bank 10/01/07 5.22% $ 210,000,000
- ---------------- -------------
210,000,000 Total Time Deposit 210,000,000
- ---------------- -------------
Variable Rate Demand Instruments (11) (13.25%)
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$ 2,000,000 1212 Jackson LLC - Series 2004
LOC Fifth Third Bank 09/01/24 5.19% $ 2,000,000
1,875,000 1800 Indian Wood Ltd. - Series 2005
Loc Fifth Third Bank 04/01/26 5.19 1,875,000
1,745,000 2150 Investment Company - Series 1997
LOC Fifth Third Bank 02/01/17 5.19 1,745,000
4,320,000 A&M Associates Project - Series 2002
LOC US Bank, N.A. 12/01/34 5.18 4,320,000
900,000 Adams County, CO Housing Agency
(Semper Village Apartments) - Series 2004C
Guaranteed by Federal National Mortgage Association 07/15/37 5.15 900,000
The accompanying notes are an integral part of these financial statements.
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Face Maturity Current Value
Amount Date Coupon (1) (Note 1)
- ----------- ---- ---------- --------
Variable Rate Demand Instruments (11) (Continued)
- -----------------------------------------------------------------------------------------------------------------------------------
$ 2,105,000 Alatrade Foods LLC - Series 2004
LOC Amsouth Bank 12/01/14 5.18% $ 2,105,000
1,970,000 Alabama Incentives Finance Authority, - Series 1999C
Insured by AMBAC Assurance Corporation 10/01/29 5.13 1,970,000
2,000,000 Albany, NY Industrial Development Agency Civic Facilities RB
- Series 2006B
LOC Citizens Bank of Rhode Island 05/01/35 5.13 2,000,000
2,900,000 Allied Services, Ltd.- Series 2006
LOC Fifth Third Bank 03/01/21 5.19 2,900,000
800,000 Atlantic Tool & Die Company - Series 1996
LOC Key Bank, N.A. 12/01/11 5.20 800,000
1,775,000 Atlantic Tool & Die Company - Series 2002
LOC Key Bank, N.A. 03/01/17 5.20 1,775,000
1,788,000 Aztec Properties, LLC
LOC Firststar Bank 08/01/20 5.21 1,788,000
1,725,000 Baird Properties, LLC
LOC Columbus Bank & Trust Company 12/01/26 5.20 1,725,000
185,000 Barnes & Thornburg LLP - Series 2003
LOC Fifth Third Bank 07/01/08 5.19 185,000
1,800,000 Barnes & Thornburg LLP - Series 2005
LOC Fifth Third Bank 12/01/55 5.19 1,800,000
7,259,000 BB Auto Land of Roswell, LLC - Series 2003A
LOC Bank of North Georgia 05/01/23 5.28 7,259,000
2,320,000 BBC, LLC- Series 2000
LOC Columbus Bank & Trust Company 11/01/20 5.15 2,320,000
8,225,000 Beacon Orthopedics Facilities, LLC - Series 2004
LOC Fifth Third Bank 02/01/24 5.19 8,225,000
2,760,000 Bennett Realty LLC - Series 2003
LOC Fifth Third Bank 04/01/23 5.19 2,760,000
845,000 Berkeley Square Retirement Center - Series 1998A
LOC Fifth Third Bank 02/01/13 5.23 845,000
880,000 Big Brothers Big Sisters Association of Greater Columbus-Series 2000
LOC Fifth Third Bank 12/01/20 5.19 880,000
3,900,000 Bluegrass Wireless, LLC
LOC Fifth Third Bank 02/01/12 5.19 3,900,000
3,025,000 Bob Sumerel Tire Company, Inc. - Series 1999
LOC Fifth Third Bank 04/01/19 5.19 3,025,000
2,635,000 Briarwood Investments, LLC - Series 2003
Guaranteed by Federal Home Loan Bank of Cincinnati 04/01/23 5.18 2,635,000
2,700,000 Brookville Enterprises - Series 2004
LOC Fifth Third Bank 10/01/25 5.19 2,700,000
2,100,000 Burke County, GA Development Authority IDRB
(Lichtenberg Holdings II, LLC Project) - Series 2002
LOC JP Morgan Chase Bank, N.A. 01/01/13 5.13 2,100,000
1,260,000 Butler County Surgical Properties LLC - Series 2005
LOC Fifth Third Bank 03/01/23 5.19 1,260,000
2,895,000 Butler County Surgical Properties LLC - Series 2005
LOC Fifth Third Bank 07/01/25 5.19 2,895,000
The accompanying notes are an integral part of these financial statements.
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DAILY INCOME FUND
MONEY MARKET PORTFOLIO
SCHEDULE OF INVESTMENTS (CONTINUED)
SEPTEMBER 30, 2007
(UNAUDITED)
===============================================================================
Face Maturity Current Value
Amount Date Coupon (1) (Note 1)
- ----------- ---- ---------- --------
Variable Rate Demand Instruments (11) (Continued)
- -----------------------------------------------------------------------------------------------------------------------------------
$ 3,000,000 Bybee Food LLC
LOC Key Bank, N.A. 11/01/26 5.20% $ 3,000,000
4,010,000 Carmichael Imaging, LLC - Series 2002
LOC Regions Bank 11/01/10 5.13 4,010,000
5,010,000 Capital Markets Access Company, LLC.
(Cape Coral Medical & Surgical Suites, LLC Project)
LOC Suntrust Bank 08/01/20 5.30 5,010,000
1,965,000 Central Michigan Inns, LLC (Pohlcat Inc) - Series 2000A
LOC Wachovia Bank, N.A. 04/01/30 5.20 1,965,000
9,700,000 CFM International Incorporated - Series 1999A (12)
Guaranteed by General Electric Company 01/01/10 5.20 9,700,000
4,300,000 Charles K. Blandin Foundation - Series 2004 (13)
LOC Wells Fargo Bank, N.A. 05/01/19 5.30 4,300,000
645,000 Chuo Mubea Suspension Component Company - Series 2004
LOC Fifth Third Bank 01/01/11 5.19 645,000
23,000,000 Church of the Highlands, Inc.
LOC Amsouth Bank 01/01/23 5.15 23,000,000
2,615,000 Cinnamon Properties, Inc.
LOC Firstar Bank 04/01/20 5.21 2,615,000
2,060,000 Cirrus Development Ltd. - Series 1999
LOC US Bank, N.A. 05/01/14 5.21 2,060,000
11,315,000 City of Auburn, AL
Industrial Development & Infrastructure RB - Series 2004A
LOC Allied Irish Bank 05/01/24 5.15 11,315,000
2,055,000 CMW Real Estate LLC
LOC Firststar Bank 06/01/20 5.18 2,055,000
1,075,000 Cole Investments LLC
LOC Fifth Third Bank 07/01/19 5.19 1,075,000
3,670,000 Columbus Area, Inc.
LOC Key Bank, N.A. 07/01/24 5.20 3,670,000
2,930,000 Columbus, GA Development Authority Industrial Development RB
(Columbus Economic Development Corporation/
Bricken Financial Project) - Series 2006
LOC Wachovia Bank, N.A. 02/01/26 5.20 2,930,000
5,885,000 Columbus, GA Development Authority RB
(Four J.S. Family, LLP Project) - Series 2000
LOC Columbus Bank & Trust Company 09/01/20 5.18 5,885,000
10,720,000 Columbus, GA Development Authority RB
(Four J.S. Family, LLP Project) - Series 2002
LOC Columbus Bank & Trust Company 12/01/22 5.13 10,720,000
3,715,000 Columbus, GA (Riverton Ford Inc. Project) - Series 2000
LOC Columbus Bank & Trust Company 04/01/20 5.13 3,715,000
2,925,000 Columbus, GA Development Authority RB
(Rivertown Pediatric Project) - Series 2003
LOC Columbus Bank & Trust Company 05/01/23 5.18 2,925,000
7,000,000 Columbus, GA Development Authority RB
(Sunbelt - SCG, LLC Project) - Series 2007
LOC Regions Bank 09/01/27 5.33 7,000,000
The accompanying notes are an integral part of these financial statements.
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===============================================================================
Face Maturity Current Value
Amount Date Coupon (1) (Note 1)
- ----------- ---- ---------- --------
Variable Rate Demand Instruments (11) (Continued)
- -----------------------------------------------------------------------------------------------------------------------------------
$ 6,000,000 Columbus, GA Development Authority RB
(Sunbelt - TCG, LLC Project) - Series 2007
LOC Regions Bank 09/01/27 5.33% $ 6,000,000
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 5.18 10,035,000
1,270,000 Consolidated Equities, LLC - Series 1995
LOC Fifth Third Bank 12/01/25 5.19 1,270,000
9,170,000 Country Club of the South - Series 2002
LOC Bank of North Georgia 12/01/31 5.23 9,170,000
4,620,000 Crestmont Nursing Home - Series 2004
LOC Fifth Third Bank 03/01/24 5.17 4,620,000
6,215,000 Cubba Capital II, LLC - Series 2005A
LOC Comerica Bank 03/01/55 5.20 6,215,000
5,000,000 Cubba Capital II, LLC - Series 2006B
LOC Charter One Bank 09/01/56 5.20 5,000,000
3,800,000 D&G Conduit LLC - Series 2003
LOC Amsouth Bank 10/01/23 5.15 3,800,000
1,700,000 D.E.D.E. Realty - Series 1998
LOC Fifth Third Bank 12/01/11 5.19 1,700,000
9,650,000 D.G.Y. Real Estate LP - Series 2000A
LOC PNC Bank, N.A. 05/01/20 5.75 9,650,000
7,125,000 Daniel Land Company - Series 2004
LOC Columbus Bank & Trust Company 09/01/29 5.18 7,125,000
2,135,000 Deerfoot Market Place, LLC - Series 2002
LOC First Commercial Bank 03/01/28 5.23 2,135,000
1,780,000 Delta Capital LLC - Series 1996B
LOC JPMorgan Chase Bank, N.A. 10/01/26 5.23 1,780,000
3,900,000 Development Authority of Cobb County, GA
(Prime Power Project) - Series 2006
LOC Bank of North Georgia 01/01/32 5.18 3,900,000
1,875,000 Devin F. & Janis L. McCarthy - Series 1997
LOC Firstar Bank 07/01/17 5.21 1,875,000
1,990,000 Eagles Landing, LLC
LOC Regions Bank 12/01/26 5.15 1,990,000
2,800,000 East Kentucky Network, LLC
LOC Fifth Third Bank 02/01/16 5.19 2,800,000
3,280,000 Eckert Seamans Cherin & Mellott, LLC- Series 2000
LOC PNC Bank, N.A. 01/01/15 5.18 3,280,000
7,295,000 El Dorado Enterprises of Miami, Inc. - Series 2000
LOC First Union National Bank 06/01/20 5.25 7,295,000
8,450,000 Elsinore Properties LLP - Series 1999
LOC Fifth Third Bank 01/01/29 5.19 8,450,000
2,225,000 Erie County, NY IDA RB
(Niagara-Maryland LLC Project) - Series 2003
LOC Manufacturers and Traders Trust Co. 06/01/23 5.21 2,225,000
1,000,000 Fall Village Realty, LLC - Series 2004
LOC Fifth Third Bank 12/01/29 5.19 1,000,000
The accompanying notes are an integral part of these financial statements.
- -------------------------------------------------------------------------------
DAILY INCOME FUND
MONEY MARKET PORTFOLIO
SCHEDULE OF INVESTMENTS (CONTINUED)
SEPTEMBER 30, 2007
(UNAUDITED)
===============================================================================
Face Maturity Current Value
Amount Date Coupon (1) (Note 1)
- ----------- ---- ---------- --------
Variable Rate Demand Instruments (11) (Continued)
- -----------------------------------------------------------------------------------------------------------------------------------
$ 800,000 Family Sports & Lifestyle RB
LOC Fifth Third Bank 09/01/22 5.19% $ 800,000
1,890,000 Fannin & Fannin LLC
LOC Fifth Third Bank 12/01/24 5.19 1,890,000
3,290,000 FE, LLC - Series 1998A
LOC Fifth Third Bank 04/01/28 5.17 3,290,000
1,460,000 Findlay Evangelical Presbyterian Church - Series 2004
LOC Fifth Third Bank 11/01/30 5.19 1,460,000
2,690,000 Fiore Capital LLC - Series 2005A
LOC Marshall & Ilsley Bank 08/01/45 5.13 2,690,000
1,725,000 First Metropolitan Title Company Demand Notes - Series 1997
LOC LaSalle Bank, N.A. 05/01/22 5.18 1,725,000
815,000 First Metropolitan Title Company Demand Notes - Series 1999
LOC LaSalle Bank, N.A. 05/01/24 5.23 815,000
615,000 First Park Place LLC
LOC Fifth Third Bank 12/01/19 5.19 615,000
11,135,000 Flint River Services, Inc. - Series 2005
LOC Columbus Bank & Trust Company 01/01/30 5.17 11,135,000
14,935,000 Ft. Northport, LLC - Series 2004
LOC Regions Bank 12/01/31 5.13 14,935,000
17,000,000 Fuller Road Management Corporation
LOC Key Bank, N.A. 07/01/37 5.18 17,000,000
1,365,000 G&J Land Management - Series 1996
LOC Fifth Third Bank 12/01/17 5.16 1,365,000
1,325,000 G&J Land Management - Series 2002
LOC Fifth Third Bank 09/01/23 5.19 1,325,000
3,260,000 G&L Manufacturing, Inc.
LOC Fifth Third Bank 07/01/20 5.19 3,260,000
3,910,000 Gardner Publications - Series 2000
LOC Fifth Third Bank 10/01/10 5.19 3,910,000
1,390,000 Garfield Investment Group
LOC Fifth Third Bank 07/01/28 5.19 1,390,000
10,790,000 Gastro Partners Land Company, LLC - Series 2005
LOC Union Planters Bank 03/01/35 5.15 10,790,000
1,125,000 GCG Portage, LLC
LOC Old Kent Bank & Trust Company 02/01/26 5.23 1,125,000
8,000,000 Genoa Medical Development, LLC
LOC Fifth Third Bank 12/01/45 5.19 8,000,000
800,000 Gilead Friends Church - Series 2002
LOC Fifth Third Bank 10/01/17 5.19 800,000
2,590,000 GMC Financing, LLC - Series 2005
Guaranteed by Federal Home Loan Bank of Atlanta 06/01/30 5.13 2,590,000
1,320,000 Goson Project - Series 1997
Guaranteed by Federal Home Loan Bank of Cincinnati 11/01/17 5.18 1,320,000
2,535,000 Governor's Village LLC - Series 2000
LOC Fifth Third Bank 03/01/20 5.19 2,535,000
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 (11) (Continued)
- -----------------------------------------------------------------------------------------------------------------------------------
$ 5,550,000 Graf Brothers Flooring, Inc. - Series 2005
LOC Fifth Third Bank 05/01/20 5.19% $ 5,550,000
1,305,000 Great Expectations Ltd. (Bass Chevrolet) - Series 1996
LOC Fifth Third Bank 07/01/17 5.26 1,305,000
1,111,100 Gutwein & Co., Inc. and Gutwein Properties LLC - Series 2004
LOC Fifth Third Bank 12/01/24 5.19 1,111,100
1,325,000 HCH, LLC - Series 2000
LOC Key Bank, N.A. 08/01/15 5.20 1,325,000
2,000,000 Healtheum, LLC - Series 2004
LOC Wells Fargo, N.A. 11/01/29 5.12 2,000,000
2,255,000 Henderson, OH Regional Authority
LOC Fifth Third Bank 07/01/23 5.19 2,255,000
14,500,600 Herman & Kittle Capital, LLC - Series 2005 (13)
LOC Fifth Third Bank 06/01/55 5.06 14,500,600
1,860,000 HFA of Lee County, FL MHRB
(University Club Apartments) - Series 2002B
Guaranteed by Federal National Mortgage Association 05/15/35 5.12 1,860,000
1,700,000 Hoosier Stamping Manufacturing Corp. - Series 2004
LOC Fifth Third Bank 07/01/36 5.19 1,700,000
850,000 Hope Realty, Ltd. & Harmony Realty, Ltd. (Kurtz Bros., Inc.)
- Series 2000
LOC Key Bank, N.A. 08/01/15 5.20 850,000
2,805,000 Hostun LLC - Series 2004
LOC U.S. Bank, N.A. 12/01/27 5.23 2,805,000
1,565,000 HRH Capital LLC - Series 2003
LOC Fifth Third Bank 03/01/22 5.19 1,565,000
2,815,000 Hudson Toyota and Hyundai Realty LLC -Series 2003
LOC Fifth Third Bank 04/01/23 5.19 2,815,000
1,500,000 IHA Capital Development Corp.
LOC Fifth Third Bank 07/01/28 5.19 1,500,000
800,000 Illinois Development Finance Authority
(Harbortown Industry Inc. Project) - Series 2000
LOC LaSalle National Bank, N.A. 12/01/20 5.22 800,000
1,000,000 Indian Creek Christian Church Inc.
LOC Fifth Third Bank 12/01/55 5.19 1,000,000
1,587,500 IOP Properties LLC
LOC Fifth Third Bank 04/01/44 5.19 1,587,500
1,200,000 Jacksons Food Stores, Inc. - Series 2006
LOC Key Bank, N.A. 03/01/16 5.20 1,200,000
980,000 James B. Krewatch & Marden H. Krewatch
Revocable Living Trust - Series 2005
LOC Fifth Third Bank 11/01/25 5.19 980,000
2,095,000 JBM Realty Company PLL
LOC Fifth Third Bank 05/01/22 5.19 2,095,000
3,950,000 Jeff Wyler Automotive Family, Inc.
LOC US Bank, N.A. 01/02/26 5.21 3,950,000
The accompanying notes are an integral part of these financial statements.
- -------------------------------------------------------------------------------
DAILY INCOME FUND
MONEY MARKET PORTFOLIO
SCHEDULE OF INVESTMENTS (CONTINUED)
SEPTEMBER 30, 2007
(UNAUDITED)
===============================================================================
Face Maturity Current Value
Amount Date Coupon (1) (Note 1)
- ----------- ---- ---------- --------
Variable Rate Demand Instruments (11) (Continued)
- -----------------------------------------------------------------------------------------------------------------------------------
$ 1,240,000 Joe Holland Chevrolet, Inc. - Joe Holland Chrysler LLC
(The Holland Family Limited Partnership Number 1)-Series 2004
LOC Fifth Third Bank 07/01/24 5.19% $ 1,240,000
1,830,000 Keating Meuthing Klekamp
LOC Fifth Third Bank 11/01/24 5.19 1,830,000
2,925,000 Kenwood County Club, Incorporated - Series 2005
LOC US Bank, N.A. 12/01/15 5.21 2,925,000
3,071,000 KFDT LP - Series 2005
LOC Fifth Third Bank 04/01/35 5.19 3,071,000
2,215,000 Kingston Healthcare Company - Series 1997A
LOC Fifth Third Bank 11/01/17 5.16 2,215,000
1,715,000 Kingston Healthcare Company - Series 1998A
LOC Fifth Third Bank 03/01/18 5.16 1,715,000
4,515,000 Kingston Healthcare Company - Series 2003A
LOC Fifth Third Bank 08/01/25 5.17 4,515,000
3,875,000 Kool Capital, LLC
LOC Michigan National Bank 04/01/29 5.30 3,875,000
2,040,000 L3 Corporation - Series 2002
LOC Fifth Third Bank 11/01/17 5.19 2,040,000
4,400,000 Lakeland Income Properties, LLC - series 2004
Guaranteed by Federal Home Loan Bank 04/01/29 5.13 4,400,000
4,600,000 Lake Mary Bay Limited Partnership - series 2005
LOC Amsouth Bank 03/01/25 5.18 4,600,000
2,395,000 Landmark Church of Christ - Series 2005
LOC Columbus Bank & Trust Company 04/01/20 5.16 2,395,000
5,315,000 Laurel County, KY Industrial Building RB
(Consolidated Biscuit Company Project)
LOC Fifth Third Bank 03/01/15 5.18 5,315,000
1,900,000 Lauren Company, LLC - Series 2003
LOC Wells Fargo Bank, N.A. 07/01/33 5.20 1,900,000
1,740,000 Le Sportsac Inc. - Series 2005
LOC Fifth Third Bank 11/01/14 5.19 1,740,000
12,450,000 Lexington Financial Services, LLC Health Care RB - Series 2001
LOC LaSalle Bank, N.A. 02/01/26 5.17 12,450,000
1,185,000 Louisiana Endoscopy Center, Inc. - Series 2005
LOC Union Planter Bank 03/01/35 5.15 1,185,000
1,000,000 LRC - Meadows Investors LLC - Series 2004
LOC JPMorgan Chase Bank, N.A. 12/01/34 5.23 1,000,000
2,342,100 Materials Processing Inc. - Series 2004
LOC Fifth Third Bank 09/01/34 5.19 2,342,100
600,000 Mayfair Village Retirement Center, Inc., KY - Series 1995
LOC PNC Bank, N.A. 05/15/09 5.22 600,000
6,850,000 MBE Investment Company LLC - Series 2004A
LOC Comerica Bank 12/01/54 5.20 6,850,000
7,320,000 MCSH Real Estate Investors, LLC - Series 2004
LOC First Tennessee Bank, N.A. 09/01/21 5.15 7,320,000
1,755,000 Mercer County,OH Healthcare Facilities RB(Grand Lakes Project)
LOC Fifth Third Bank 04/01/23 5.19 1,755,000
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 (11) (Continued)
- -----------------------------------------------------------------------------------------------------------------------------------
$ 2,335,000 Michigan City, IN EDC
(Consolidated Biscuit Company Project) - Series 1998
LOC Fifth Third Bank 10/01/13 5.19% $ 2,335,000
6,555,000 Michigan Equity Group, LLC
(Oakland Investment Company Project) - Series 2004A
LOC Fifth Third Bank 04/01/34 5.19 6,555,000
2,015,000 Michigan HEFA (Hope College) - Series 1996M
LOC Fifth Third Bank 10/01/16 5.17 2,015,000
3,500,000 Mississippi Business Finance Corporation IDRB
(Attala Steel Industries, LLC Project) - Series 2005
Guaranteed by Federal Home Loan Bank 07/01/20 5.13 3,500,000
530,000 Mississippi Business Finance Corporation IDRB
(Howard Industries Inc. Project) - Series 1995
LOC Amsouth Bank 06/01/10 5.13 530,000
7,225,000 Mississippi Business Finance Corporation IDRB
(Lextron - Visteon Leasing, LLC Project) - Series 2003
LOC JPMorgan Chase Bank, N.A. 12/01/27 5.11 7,225,000
4,800,000 Mississippi Business Finance Corporation IDRB
(Pottery Barn Inc. Project) - Series 2004
LOC Bank of America, N.A. 06/01/24 5.21 4,800,000
2,865,000 Mississippi Business Finance Corporation IDRB
(TTW Farm Products Inc.)
LOC Amsouth Bank 11/01/11 5.13 2,865,000
2,850,000 Mississippi Business Finance Corporation IDRB
(Wade Inc. Project) - Series 2006
LOC Regions Bank 02/01/21 5.13 2,850,000
1,025,000 MMR Development Co., LLC
LOC Fifth Third Bank 05/01/23 5.19 1,025,000
4,000,000 Montgomery, AL Health Facilities Development Inc.
LOC First Commercial Bank 11/01/33 5.18 4,000,000
865,000 Montgomery,AL IDB(The Jobs Company, LLC Project)-Series 1996C
LOC Columbus Bank & Trust Company 07/01/16 5.15 865,000
6,960,000 Montgomery County, PA MHRB
(Brookside Manor Apartments) - Series 2001A
Collateralized by Federal National Mortgage Association 08/15/31 5.13 6,960,000
9,700,000 Moore Orthopedic Clinic -Land, LLC - Series 2006
LOC National Bank of South Carolina 08/01/31 5.18 9,700,000
1,715,000 Mrs. K.C. Jordan & Associates, Inc.
LOC Fifth Third Bank 04/01/23 5.19 1,715,000
2,785,000 Nebar Investments, LLC - Series 2005
LOC Fifth Third Bank 07/01/50 5.19 2,785,000
4,095,000 New Hampshire Health & Educational Facility Authority RB
(Weeks Medical Center Issue) - Series 2005B
LOC Allied Irish Bank 07/01/35 5.09 4,095,000
1,415,000 New Lexington Clinic, P.S.C. - Series 2003
LOC Fifth Third Bank 05/01/18 5.19 1,415,000
1,430,000 New York City, NY IDA Civic Facility RB - 2006A
LOC Key Bank, N.A. 06/01/27 5.07 1,430,000
The accompanying notes are an integral part of these financial statements.
- -------------------------------------------------------------------------------
DAILY INCOME FUND
MONEY MARKET PORTFOLIO
SCHEDULE OF INVESTMENTS (CONTINUED)
SEPTEMBER 30, 2007
(UNAUDITED)
===============================================================================
Face Maturity Current Value
Amount Date Coupon (1) (Note 1)
- ----------- ---- ---------- --------
Variable Rate Demand Instruments (11) (Continued)
- -----------------------------------------------------------------------------------------------------------------------------------
$ 1,400,000 New York State HFA RB (345 East 94th Street)
Guaranteed by Federal Home Loan Mortgage Corporation 11/01/30 5.10% $ 1,400,000
1,500,000 NO S Properties, LLC - Series 2004
LOC Fifth Third Bank 08/01/24 5.19 1,500,000
7,200,000 North Lagoon Partners, Inc. - Series 2004
LOC Columbus Bank & Trust Company 10/01/29 5.15 7,200,000
2,980,000 Northern Kentucky Cancer Center, LLC - Series 2003
LOC US Bank, N.A. 05/01/24 5.21 2,980,000
1,740,000 NPI Capital, LLC - Series 1999A
LOC Michigan National Bank 07/01/29 5.23 1,740,000
2,560,000 OHC Real Estate LLC - Series 2006A
LOC US Bank, N.A. 11/01/26 5.21 2,560,000
1,310,000 OHC Real Estate LLC - Series 2006B
LOC US Bank, N.A. 11/01/26 5.21 1,310,000
6,900,000 Olathe, KS IDRB ( Diamant Boart Project) - Series 1997B
LOC Svenska Handelsbanken 03/01/27 5.28 6,900,000
5,390,000 Opelika IDA (Opelika Industrial Park Project) - Series 1998A
Insured by MBIA Insurance Corp. 06/01/23 5.15 5,390,000
2,325,000 Ordeal Properties LLC - Series 1997
LOC KeyBank, N.A. 10/01/12 5.20 2,325,000
2,150,000 Parisi Investment, LP & Supply Co. - Series 1998
LOC US Bank, N.A. 05/01/18 5.21 2,150,000
3,420,000 Parker Towing Company, Inc. - Series 2006
LOC Amsouth Bank 06/01/11 5.18 3,420,000
3,700,000 Pennsylvania Economic Development Finance Authority
(Repete Associates Project) - Series 2005 B3
LOC PNC Bank, N.A. 08/01/25 5.13 3,700,000
1,285,000 Portland, OR EDRB
(Broadway Project) - Series 2003B
Insured by AMBAC Indemnity Corporation 04/01/11 5.15 1,285,000
2,240,737 Precision Radiotherapy LLC
LOC Fifth Third Bank 08/01/18 5.19 2,240,737
2,885,000 Putnam County, NY IDA IDRB
(Broad Reach, LLC Project) - Series 2006A
LOC Charter One Bank 07/01/32 5.23 2,885,000
915,000 Putnam County, NY IDA IDRB
(Broad Reach, LLC Project) - Series 2006B
LOC Charter One Bank 07/01/14 5.23 915,000
2,355,000 Realty Holdings Co. LLC - Series 2004
LOC Fifth Third Bank 05/01/24 5.19 2,355,000
4,665,000 Reynolds Road Fitness Center, - Series 1998
LOC Fifth Third Bank 01/01/19 5.19 4,665,000
3,490,000 Robert C. Fox Jr. (Fox Racing Shoe Project) - Series A
LOC Comerica Bank 06/01/33 5.12 3,490,000
3,965,000 Rockwood Quarry LLC - Series 2002
LOC Fifth Third Bank 12/01/22 5.17 3,965,000
10,158,000 Saber Management LLC - Series 2006
LOC Charter One Bank 07/01/56 5.19 10,158,000
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 (11) (Continued)
- -----------------------------------------------------------------------------------------------------------------------------------
$ 1,295,000 Sand Run Nursery & Preserve LLC - Series 2004
LOC US Bank, N.A. 03/01/24 5.23% $ 1,295,000
980,000 S & S Partnership (Model Graphics) - Series 1999
LOC Firstar Bank 09/01/19 5.26 980,000
4,800,000 Santa Rosa Property Holdings, LLC - Series 2006
LOC Columbus Bank & Trust Company 08/01/31 5.18 4,800,000
2,375,000 Savoy Properties, Ltd. - Series 2000
LOC KeyBank, N.A. 08/01/20 5.20 2,375,000
6,270,000 Scott Street Land Company, Ltd. - Series 2000
LOC Fifth Third Bank 01/03/22 5.19 6,270,000
10,000,000 Sea Island Company & Sea Island Coastal
Properties LLC - Series 2003B
LOC Columbus Bank & Trust Company 04/01/23 5.18 10,000,000
4,085,000 Security Self-Storage, Inc. - Series 1999
LOC Bank One 02/01/19 5.18 4,085,000
2,800,000 Security Self-Storage, Inc. - Series 2005
LOC Fifth Third Bank 05/01/35 5.19 2,800,000
3,330,000 Servaas, Inc. - Series 2003
LOC Fifth Third Bank 03/01/13 5.19 3,330,000
3,060,000 Shepherd Capital LLC
LOC Fifth Third Bank 03/15/49 5.30 3,060,000
2,000,000 Smugglers Notch Management Company, Ltd. and
Smugglers Notch Investment Company, Ltd. - Series 2000
LOC KeyBank, N.A. 09/01/15 5.20 2,000,000
6,100,000 South Central Communications Corporation - Series 2003
LOC Fifth Third Bank 04/01/18 5.17 6,100,000
15,515,000 Southeast Alabama Gas District RB(Lateral Project)-Series 2000
Insured by AMBAC Assurance Corp. 06/01/25 5.13 15,515,000
1,660,000 Southern Orthopaedic Properties LLC - Series 2001
LOC Columbus Bank & Trust Company 10/01/21 5.16 1,660,000
67,800,000 Southern Ute Indian Tribe of the Southern Ute Indian
Reservation, CO - Series 2007 01/01/27 5.19 67,800,000
11,925,000 Southwestern Group Limited - Series 2001
LOC Firstar Bank 07/01/21 5.19 11,925,000
10,380,000 St. Johns County IDA First Mortgage RB
(Presbyterian Retirement Communities Project) - Series 2004B
LOC Allied Irish Banks 08/01/34 5.70 10,380,000
1,160,000 Stallard-Schrier Family LP - Series 1996
LOC Fifth Third Bank 09/01/16 5.23 1,160,000
900,000 State Crest Ltd. - Series 2000
LOC Fifth Third Bank 06/01/23 5.19 900,000
10,640,000 Stonegate-Partners I,LLC(Stonegate Partners Project)
- Series 2002
LOC US Bank, N.A. 06/01/34 5.18 10,640,000
1,000,000 Stone Creek LLC
LOC Columbus Bank & Trust Company 12/01/41 5.19 1,000,000
18,705,000 SWC Princeton, LLC - Series 2006
LOC Compass Bank 03/01/32 5.13 18,705,000
The accompanying notes are an integral part of these financial statements.
- -------------------------------------------------------------------------------
DAILY INCOME FUND
MONEY MARKET PORTFOLIO
SCHEDULE OF INVESTMENTS (CONTINUED)
SEPTEMBER 30, 2007
(UNAUDITED)
===============================================================================
Face Maturity Current Value
Amount Date Coupon (1) (Note 1)
- ----------- ---- ---------- --------
Variable Rate Demand Instruments (11) (Continued)
- -----------------------------------------------------------------------------------------------------------------------------------
$ 2,100,000 Tampa Bay, FL (Elders Land Development) - Series 2003
LOC Fifth Third Bank 09/01/23 5.19% $ 2,100,000
2,575,000 Tant Real Estate, LLC - Series 2003
LOC Columbus Bank & Trust Company 03/01/23 5.13 2,575,000
1,790,000 Taylor Steel, Inc.
LOC Key Bank, N.A. 02/01/23 5.20 1,790,000
845,000 T.D. Management Ltd. - Series 1996
LOC Fifth Third Bank 01/01/11 5.23 845,000
7,030,000 Thayer Properties II, LLC - Series 2001
LOC Columbus Bank & Trust Company 09/01/21 5.20 7,030,000
1,710,000 The Home City Ice Company & HC Transport, Inc., Series - 2004
LOC U.S. Bank, N.A. 05/01/19 5.21 1,710,000
2,560,000 The Medical Clinic Board of the City of Mobile, AL-Spring Hill
(Springhill Medical Complex, Inc.) - Series 1996B
LOC Amsouth Bank 09/01/11 5.13 2,560,000
3,010,000 The Physician's Center, L.P. - Series 2003
Guaranteed by Federal Home Loan Bank 10/01/29 5.15 3,010,000
5,645,000 The Shoppes at Edgewater - Series 2003
LOC Amsouth Bank 01/01/23 5.13 5,645,000
6,775,000 Three Reading LP
LOC Federal Home Loan Bank of Pittsburg 06/01/24 5.14 6,775,000
2,280,000 Tireless Corporation - Series 1999
LOC Fifth Third Bank 04/01/19 5.19 2,280,000
2,875,000 Town of Islip, NY IDA (Brentwood Real Estate LLC)-Series 2000
LOC Citibank, N.A. 11/01/20 5.16 2,875,000
1,435,000 Trendway Corporation - Series 1996
LOC Michigan National Bank 12/01/26 5.23 1,435,000
5,900,000 Triple Crown Investments, LLC - Series 2004
LOC Federal Home Loan Bank of Dallas 08/01/25 5.15 5,900,000
1,960,000 Trotman Bay Minette, Inc. - Series 2000
LOC Columbus Bank & Trust Company 01/01/21 5.15 1,960,000
2,595,000 Twelfth Street Partners, LLC - Series 2005
LOC Fifth Third Bank 04/01/25 5.19 2,595,000
4,595,000 Upper Illinois River Valley Development Authority
(Exolon-ESK Company Project) - Series 1996B
LOC Bank of America 12/01/21 5.15 4,595,000
755,000 Vincent Enterprise & Partners - Series 2000
LOC KeyBank, N.A. 03/01/20 5.20 755,000
700,000 Walt Sweeney Ford - Series 1996
LOC Fifth Third Bank 01/01/12 5.26 700,000
3,572,000 Washington State HFC Non-Profit Housing RB
(Rockwood Program) - Series B (13)
LOC Wells Fargo Bank, N.A. 01/01/30 5.06 3,572,000
3,490,000 Watson's Dayton Properties, LLC - Series 2002A
LOC US Bank, N.A. 07/01/18 5.21 3,490,000
9,080,000 Wellington Green LLC - Series 1999
LOC Charter One Bank 04/01/29 5.20 9,080,000
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 (11) (Continued)
- -----------------------------------------------------------------------------------------------------------------------------------
$ 9,200,000 Wellstone Mills LLC - Series 2004A
LOC PNC Bank, N.A. 12/15/24 5.18% $ 9,200,000
3,400,000 West Coast Pack, LLC - Series 2005
LOC LaSalle Bank, N.A. 07/01/35 5.12 3,400,000
15,350,000 William Morris Realty Greystone, LLC - Series 2007
LOC Regions Bank 03/01/32 5.17 15,350,000
4,800,000 Willow Creek Interest LLC, OH - Series 2005
LOC Fifth Third Bank 04/01/25 5.19 4,800,000
1,220,000 Wilmington Iron & Metal Company - Series 1999
LOC Bank One 08/01/14 5.22 1,220,000
2,000,000 Wilmington Trust Company (Amtrak Trust 93-A) - Series B Notes
Guaranteed by General Electric Company 01/01/11 5.55 2,000,000
8,125,000 Winder-Barrow Industrial Building Authority
(The Concrete Company Project) - Series 2000
LOC Columbus Bank & Trust Company 02/01/20 5.13 8,125,000
990,000 Windsor Medical Center, Inc. - Series 1997
LOC Federal Home Loan Bank 12/03/18 5.18 990,000
1,590,000 Wisconsin Housing Preservation Corporation - Series 2005
LOC Marshall & Ilsley Bank 05/01/35 5.13 1,590,000
2,100,000 Woods Group TN, LLC - Series 2006
LOC Amsouth Bank 09/01/31 5.19 2,100,000
5,000,000 WW Real Estate LLC & White-Wilson Medical Center PA
LOC Fifth Third Bank 05/01/57 5.19 5,000,000
- ---------------- -------------
957,430,037 Total Variable Rate Demand Instruments 957,430,037
- ---------------- -------------
Yankee Certificates of Deposit (60.26%)
- -----------------------------------------------------------------------------------------------------------------------------------
$ 25,000,000 Abbey National Bank Floating Rate YCD (14) 11/21/07 5.10% $ 24,999,312
100,000,000 Abbey National Bank Floating Rate YCD (15) 04/07/08 5.30 99,987,438
100,000,000 Banco Bilbao de Vizcaya 10/04/07 5.70 100,000,000
50,000,000 Banco Bilbao de Vizcaya 12/20/07 5.30 49,986,174
100,000,000 Banco Bilbao de Vizcaya 01/02/08 5.25 100,000,000
100,000,000 Banco Bilbao de Vizcaya Floating Rate YCD (16) 04/07/08 5.30 99,989,970
100,000,000 Barclays Bank PLC 11/01/07 5.32 100,000,000
100,000,000 Barclays Bank PLC 03/05/08 5.34 100,000,000
75,000,000 Bayerische Hypo-Und Vereinsbank 03/31/08 5.13 75,000,000
145,500,000 Bayerische Landesbank Girozentrale 10/01/07 5.32 145,500,000
100,000,000 Bank of Montreal (17) 06/17/08 4.90 100,000,000
40,000,000 CIBC Floating Rate YCD (18) 11/26/07 4.88 39,999,410
100,000,000 CIBC Floating Rate YCD (19) 12/20/07 4.85 100,000,000
75,000,000 CIBC Floating Rate YCD (17) 05/08/08 4.90 75,000,000
50,000,000 CIBC Floating Rate YCD (20) 05/21/08 5.21 50,000,000
25,000,000 CIBC Floating Rate YCD (21) 07/28/08 4.92 25,000,000
250,000,000 Commerzbank AG 10/01/07 5.30 250,000,000
300,000,000 Commerzbank AG 01/03/08 5.21 300,000,000
100,000,000 Credit Industriel et Commercial 10/25/07 5.32 100,000,000
The accompanying notes are an integral part of these financial statements.
- -------------------------------------------------------------------------------
DAILY INCOME FUND
MONEY MARKET PORTFOLIO
SCHEDULE OF INVESTMENTS (CONTINUED)
SEPTEMBER 30, 2007
(UNAUDITED)
===============================================================================
Face Maturity Current Value
Amount Date Coupon (1) (Note 1)
- ----------- ---- ---------- --------
Yankee Certificates of Deposit (Continued)
- -----------------------------------------------------------------------------------------------------------------------------------
$ 100,000,000 Credit Industriel et Commercial 11/01/07 5.32% $ 100,000,000
25,000,000 Credit Industriel et Commercial 05/27/08 5.33 25,000,000
25,000,000 Credit Suisse First Boston 10/16/07 5.32 25,000,000
100,000,000 Credit Suisse First Boston Floating Rate YCD (22) 12/17/07 4.88 100,000,000
85,000,000 Credit Suisse First Boston 05/16/08 5.00 85,092,246
50,000,000 Credit Suisse First Boston 05/22/08 5.31 50,000,000
40,000,000 Credit Suisse First Boston 06/04/08 5.37 40,000,000
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 (18) 03/05/08 4.89 100,000,000
50,000,000 Deutsche Bank Floating Rate YCD (23) 03/07/08 4.88 50,000,000
50,000,000 Deutsche Bank Floating Rate YCD (17) 04/24/08 4.90 50,000,000
50,000,000 Deutsche Zentral-Genossenschaftsb 10/01/07 5.31 50,000,000
250,000,000 Deutsche Zentral-Genossenschaftsb 01/03/08 5.20 250,000,000
100,000,000 HSH Nordbank AG 11/23/07 5.49 100,000,000
50,000,000 HSH Nordbank AG 01/02/08 5.25 50,000,000
50,000,000 HSH Nordbank AG 02/27/08 5.35 50,000,000
100,000,000 HSH Nordbank AG Floating Rate YCD (2) 03/13/08 5.77 99,995,577
50,000,000 HSH Nordbank AG Floating Rate YCD (2) 03/17/08 5.72 49,997,743
100,000,000 Nordeutsche Landesbank Girozentral 11/21/07 5.58 100,000,000
50,000,000 Nordeutsche Landesbank Girozentral 11/29/07 5.33 50,000,000
20,000,000 Nordeutsche Landesbank Girozentral 04/07/08 5.41 20,000,000
25,000,000 Royal Bank of Canada 11/09/07 5.40 25,000,000
150,000,000 Skandinav Enskilda Banken NY 10/01/07 5.31 150,000,000
100,000,000 Societe Generale Floating Rate YCD (24) 12/17/07 4.88 100,000,000
50,000,000 Societe Generale Floating Rate YCD (18) 01/08/08 4.89 50,000,000
100,000,000 Standard Chartered Bank PLC Floating Rate YCD (8) 04/07/08 5.73 99,992,471
50,000,000 Standard Chartered Bank PLC Floating Rate YCD (25) 04/07/08 5.31 49,994,353
70,000,000 Svenska Handelsbanken 10/26/07 5.39 69,998,498
50,000,000 Toronto Dominion 03/20/08 5.02 50,000,000
100,000,000 Unicredito Italiano SPA 11/27/07 5.53 100,000,000
75,000,000 Unicredito Italiano SPA 11/30/07 5.58 75,000,000
50,000,000 Union Bank of Switzerland 02/29/08 5.40 50,000,000
50,000,000 Union Bank of Switzerland 09/17/08 5.10 50,000,000
50,000,000 Union Bank of Switzerland 09/17/08 5.05 50,000,000
- ---------------- --------------
4,355,500,000 Total Yankee Certificates of Deposit 4,355,533,192
- ---------------- --------------
Total Investments (106.42%) (Cost $7,692,002,159+) 7,692,002,159
Liabilities in excess of cash and other assets (-6.42%) (463,835,250)
--------------
Net Assets (100.00%) $7,228,166,909
==============
* Counterparties with at least a minimum rating of A-1, P-1 & F-1.
+ Aggregate cost for federal income tax purposes is identical.
The accompanying notes are an integral part of these financial statements.
- -------------------------------------------------------------------------------
===============================================================================
FOOTNOTES:
1) The interest rate shown reflects the security's current 14) 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 15) The interest rate is adjusted monthly based upon one
month LIBOR minus 0.03%. month LIBOR minus 0.0325%.
3) The interest rate is adjusted daily based upon Federal 16) The interest rate is adjusted quarterly based upon
Funds Target plus 0.05%. three month LIBOR minus 0.055%.
4) The interest rate is adjusted quarterly based upon three 17) The interest rate is adjusted daily based upon
month LIBOR plus 0.06%. Federal Funds Target plus 0.15%.
5) The interest rate is adjusted quarterly based upon one 18) The interest rate is adjusted daily based upon
month LIBOR plus 0.03%. Federal Funds Target plus 0.14%
6) The interest rate is adjusted quarterly based upon three 19) The interest rate is adjusted daily based upon
months LIBOR minus 0.05%. Federal Funds Target plus 0.10%.
7) The interest rate is adjusted monthly based upon one 20) The interest rate is adjusted daily based upon one
month LIBOR minus 0.02%. month LIBOR plus 0.06%.
8) The interest rate is adjusted monthly based upon one month 21) The interest rate is adjusted daily based upon
LIBOR plus 0.14%. Federal Funds Target plus 0.165%.
9) The interest rate is adjusted daily based upon Federal 22) The interest rate is adjusted daily based upon
Funds prime minus 0.02925%. Federal Funds Target plus 0.135%.
10)Loan participation agreement with the interest rate 23) The interest rate is adjusted daily based upon
adjusted quarterly based upon three month LIBOR plus 0.02%. Federal Funds Target plus 0.13%.
11) Securities payable on demand at par including accrued 24) The interest rate is adjusted daily based upon
interest (with seven day's notice). Interest rate is Federal Funds Target plus 0.125%.
adjusted weekly.
25) The interest rate is adjusted monthly based upon
12) The interest rate is adjusted weekly based upon the three month LIBOR minus 0.0525%.
average one month LIBOR plus 0.05%.
13) Securities payable on demand at par including accrued
interest (with one day notice). Interest rate is
adjusted daily.
KEY:
CD = Certificate of Deposit IDA = Industrial Development Authority
EDC = Economic Development Corp. IDRB = Industrial Development Revenue Bond
EDRB = Economic Development Revenue Bond LOC = Letter of Credit
HEFA = Health & Educational Facilities Authority MHRB = Multi-Family Housing Revenue Bond
HFA = Housing Finance Authority RB = Revenue Bond
HFC = Housing Finance Commission YCD = Yankee Certificate of Deposit
BREAKDOWN OF PORTFOLIO HOLDINGS BY MATURITY:
--------------------------------------------------------------------------
Securities Maturing in Value % of Portfolio
--------------------------------------------------------------------------
--------------------------------------------------------------------------
Less than 31 Days $ 4,234,888,175 55.06%
31 through 60 Days 1,233,112,750 16.03
61 through 90 Days 539,429,195 7.01
91 through 120 Days 750,000,000 9.75
121 through 180 Days 529,479,792 6.88
Over 180 Days 405,092,247 5.27
--------------------------------------------------------------------------
--------------------------------------------------------------------------
Total $ 7,692,002,159 100.00%
--------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
- -------------------------------------------------------------------------------
DAILY INCOME FUND
MONEY MARKET PORTFOLIO
STATEMENT OF ASSETS AND LIABILITIES
SEPTEMBER 30, 2007
(UNAUDITED)
===============================================================================
ASSETS
Investments in securities, at amortized cost (Note 1)............................. $ 7,692,002,159
Cash.............................................................................. 17,790,259
Accrued interest receivable....................................................... 77,889,924
Prepaid expenses.................................................................. 82,953
Other receivables................................................................. 125,916
------------------
Total assets............................................................... 7,787,891,211
------------------
LIABILITIES
Payable to affiliates*............................................................ 3,382,453
Payable for securities purchased.................................................. 550,000,000
Dividends payable................................................................. 6,334,536
Other payable..................................................................... 7,313
------------------
Total liabilities.......................................................... 559,724,302
------------------
Net assets........................................................................ $ 7,228,166,909
==================
SOURCE OF NET ASSETS
Net capital paid in on shares of capital stock (Note 3)........................... $ 7,228,167,182
Accumulated net realized loss..................................................... (273)
------------------
Net assets........................................................................ $ 7,228,166,909
==================
Net asset value, per share (Note 3):
Class Name Net Assets Shares Outstanding Net Asset Value
Institutional Shares........................ $363,237,369 363,237,383 $1.00
Institutional Service Shares................ $218,438,053 218,438,061 $1.00
Investor Shares............................. $191,323,127 191,323,134 $1.00
Short Term Income Shares.................... $247,220,270 247,220,279 $1.00
Retail Shares............................... $1,367,330,596 1,367,330,648 $1.00
Pinnacle Shares............................. $152,691,097 152,691,103 $1.00
Advantage Shares............................ $3,158,738,157 3,158,738,276 $1.00
Xpress Shares............................... $1,529,188,240 1,529,188,298 $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
MONEY MARKET PORTFOLIO
STATEMENT OF OPERATIONS
FOR THE SIX MONTH ENDED SEPTEMBER 30, 2007
(UNAUDITED)
===============================================================================
INVESTMENT INCOME
Income:
Interest........................................................................ $ 167,161,352
------------------
Expenses: (Note 2)
Investment management fee....................................................... 3,720,689
Administration fee.............................................................. 1,550,287
Shareholder servicing fee (Institutional Service Shares)........................ 324,027
Shareholder servicing fee (Investor Shares)..................................... 239,172
Shareholder servicing fee (Short Term Income Shares)............................ 198,359
Shareholder servicing fee (Retail Shares)....................................... 1,421,833
Shareholder servicing fee (Advantage Shares).................................... 3,917,745
Shareholder servicing fee (Xpress Shares - Note 1).............................. 619,500
Distribution fee (Investor Shares).............................................. 191,337
Distribution fee (Short Term Income Shares)..................................... 357,046
Distribution fee (Retail Shares)................................................ 3,696,767
Distribution fee (Advantage Shares)............................................. 11,753,235
Distribution fee (Xpress Shares - Note 1)....................................... 1,858,501
Sub-Accounting fee (Advantage Shares)........................................... 1,567,098
Sub-Accounting fee (Xpress Shares - Note 1)..................................... 247,800
Custodian expenses.............................................................. 40,997
Shareholder servicing and related shareholder expenses+......................... 551,658
Legal, compliance and filing fees............................................... 169,741
Audit and accounting............................................................ 97,920
Trustees' fees and expenses..................................................... 170,562
Other........................................................................... 17,481
------------------
Total expenses.................................................................. 32,711,755
Less: Fees waived (Note 2)............................................... (5,160,358)
Expense paid indirectly (Note 2)................................... (6,596)
------------------
Net expenses.................................................................... 27,544,801
------------------
Net investment income........................................................... 139,616,551
REALIZED GAIN (LOSS) ON INVESTMENTS
Net realized gain (loss) on investments............................................. (233)
------------------
Increase in net assets from operations.............................................. $ 139,616,318
==================
+ Includes class specific transfer agency expenses of $71,667, $25,934,
$45,967, $40,163, $273,296, and $18,848 for the Institutional,
Institutional Service, Investor, Short Term Income, Retail, and Pinnacle
Shares respectively.
The accompanying notes are an integral part of these financial statements.
- -------------------------------------------------------------------------------
DAILY INCOME FUND
MONEY MARKET PORTFOLIO
STATEMENTS OF CHANGES IN NET ASSETS
===============================================================================
Six Months Ended Year
September 30, 2007 Ended
(Unaudited) March 31, 2007
--------- --------------
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income......................................... $ 139,616,551 $ 95,361,885
Net realized gain (loss) on investments....................... (233) 2,797
--------------- ----------------
Increase in net assets from operations............................ 139,616,318 95,364,682
Dividends to shareholders from net investment income:
Institutional Shares.......................................... (16,962,476) (30,400,132)
Institutional Service Shares.................................. (6,401,420) (11,264,771)
Investor Shares............................................... (4,532,599) (546,986)
Short-Term Income Shares...................................... (3,538,520) (203,619)
Retail Shares................................................. (24,975,048) (4,247,022)
Pinnacle Shares............................................... (4,425,388) (7,787,391)
Advantage Shares.............................................. (68,450,115) (40,911,972)
Xpress Shares................................................. (10,330,985) -0-
--------------- ----------------
Total dividends to shareholders.......................... (139,616,551) (95,361,893)
--------------- ----------------
Distributions to shareholders from realized gains on investments:
Institutional Shares.......................................... (5) (462)
Institutional Service Shares.................................. (2) (149)
Investor Shares............................................... (2) (10)
Short-Term Income Shares...................................... -0- (7)
Retail Shares................................................. (7) (152)
Pinnacle Shares............................................... (1) (89)
Advantage Shares.............................................. (23) (1,711)
Xpress Shares................................................. -0- -0-
--------------- ----------------
Total distributions to shareholders...................... (40) (2,580)
--------------- ----------------
Capital share transactions (Note 3):
Institutional Shares.......................................... (276,335,782) 266,851,902
Institutional Service Shares.................................. (49,426,839) 43,814,744
Investor Shares............................................... 39,376,277 151,946,857
Short-Term Income Shares...................................... 190,123,558 57,096,721
Retail Shares................................................. 469,426,695 897,903,953
Pinnacle Shares............................................... (18,337,106) 36,345,944
Advantage Shares.............................................. 45,149,785 3,113,588,491
Xpress Shares................................................. 1,529,188,298 -0-
--------------- ----------------
Total capital share transactions........................ 1,929,164,886 4,567,548,612
--------------- ----------------
Total increase ............................................... 1,929,164,613 4,567,548,821
Net assets:
Beginning of period........................................... 5,299,002,296 731,453,475
--------------- ----------------
End of period................................................ $ 7,228,166,909 $ 5,299,002,296
=============== ================
Undistributed net investment income............................... $ -0- $ -0-
=============== ================
The accompanying notes are an integral part of these financial statements.
- -------------------------------------------------------------------------------
DAILY INCOME FUND
MONEY MARKET PORTFOLIO
FINANCIAL HIGHLIGHTS
(UNAUDITED)
===============================================================================
Six Months Ended For the Years Ended March 31,
-------------------------------------------------------
Institutional shares September 30, 2007 2007 2006 2005 2004 2003
- -------------------- (Unaudited) ------ -------- -------- ------- -------
Per Share Operating Performance:
(for a share outstanding throughout the period)
Net asset value, beginning of period..................... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
-------- -------- -------- -------- --------- --------
Income from investment operations:
Net investment income................................. 0.026 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 0.000
-------- -------- -------- -------- --------- --------
Total from investment operations...................... 0.026 0.051 0.036 0.016 0.010 0.016
Less distributions from:
Dividends from net investment income.................. (0.026) (0.051) (0.036) (0.016) (0.010) (0.016)
Net realized gain(loss) on investment................. (0.000) (0.000) -- (0.000) (0.000) (0.000)
-------- -------- -------- -------- -------- --------
Total Distributions................................... (0.026) (0.051) (0.036) (0.016) (0.010) (0.016)
-------- -------- -------- -------- -------- --------
Net asset value, end of period........................... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======== ======== ======== ======== ======== ========
Total Return............................................. 2.62%(a) 5.19% 3.63% 1.61% 1.00% 1.61%
Ratios/Supplemental Data
Net assets, end of period (000's)........................ $363,237 $ 639,573 $ 372,721 $ 215,314 $ 163,829 $ 132,837
Ratios to average net assets:
Expenses (net of fees waived) (b)..................... 0.20%(c) 0.20% 0.20% 0.20% 0.20% 0.20%
Net investment income................................. 5.19%(c) 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........................... 0.01%(c) -- 0.02% 0.02% 0.02% 0.02%
Expenses paid indirectly.............................. 0.00%(c) 0.00% 0.00% 0.00% 0.00% 0.00%
Six Months Ended For the Years Ended March 31,
-------------------------------------------------------
Institutional Service shares September 30, 2007 2007 2006 2005 2004 2003
- ---------------------------- (Unaudited) ------ -------- -------- ------- -------
Per Share Operating Performance:
(for a share outstanding throughout the period)
Net asset value, beginning of period..................... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
-------- -------- -------- -------- --------- --------
Income from investment operations:
Net investment income................................. 0.025 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 0.000
-------- -------- -------- -------- --------- --------
Total from investment operations...................... 0.025 0.048 0.033 0.013 0.007 0.013
Less distributions from:
Dividends from net investment income.................. (0.025) (0.048) (0.033) (0.013) (0.007) (0.013)
Net realized gain(loss) on investment................. (0.000) (0.000) -- (0.000) (0.000) (0.000)
-------- -------- -------- -------- -------- --------
Total Distributions................................... (0.025) (0.048) (0.033) (0.013) (0.007) (0.013)
-------- -------- -------- -------- -------- --------
Net asset value, end of period........................... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======== ======== ======== ======== ======== ========
Total Return............................................. 2.50%(a) 4.92% 3.36% 1.34% 0.73% 1.33%
Ratios/Supplemental Data
Net assets, end of period (000's)........................ $218,438 $ 267,865 $ 224,050 $ 119,989 $ 53,373 $ 114,337
Ratios to average net assets:
Expenses (net of fees waived) (b)..................... 0.45%(c) 0.45% 0.47% 0.47% 0.47% 0.47%
Net investment income................................. 4.94%(c) 4.83% 3.39% 1.49% 0.73% 1.32%
Management and administration fees waived............. -- (c) 0.03% 0.06% 0.08% 0.06% 0.06%
Distribution fees waived.............................. 0.01%(c) -- -- -- -- --
Transfer agency fees waived........................... -- (c) -- 0.01% 0.02% 0.00% 0.00%
Expenses paid indirectly.............................. 0.00%(c) 0.00% 0.00% 0.00% 0.00% 0.00%
(a) Unannualized
(b) Includes expenses paid indirectly.
(c) Annualized
The accompanying notes are an integral part of these financial statements.
- -------------------------------------------------------------------------------
DAILY INCOME FUND
MONEY MARKET PORTFOLIO
FINANCIAL HIGHLIGHTS (CONTINUED)
(UNAUDITED)
===============================================================================
Six Months Ended Commencement of Operations
September 30, 2007 November 28, 2006 through
Retail shares (Unaudited) March 31, 2007
- -------------- --------- --------------
Per Share Operating Performance:
(for a share outstanding throughout the period)
Net asset value, beginning of period...................... $ 1.00 $ 1.00
---------- -----------
Income from investment operations:
Net investment income.................................. 0.024 0.016
Net realized and unrealized gain(loss) on investments. 0.000 0.000
---------- -----------
Total from investment operations....................... 0.024 0.016
Less distributions from:
Dividends from net investment income................... (0.024) (0.016)
Net realized gain on investments....................... (0.000) (0.000)
---------- -----------
Total Distributions.................................... (0.024) (0.016)
---------- -----------
Net asset value, end of period............................ $ 1.00 $ 1.00
========== ===========
Total Return.............................................. 2.39%(a) 1.62%(a)
Ratios/Supplemental Data
Net assets, end of period (000's)......................... $ 191,323 $ 151,947
Ratios to average net assets:
Expenses (net of fees waived) (b)...................... 0.65%(c) 0.65%(c)
Net investment income.................................. 4.74%(c) 4.76%(c)
Management and administration fees waived.............. -- (c) 0.03%(c)
Distribution fees waived............................... 0.04%(c) -- (c)
Transfer Agency Account fee waiver..................... -- (c) 0.03%(c)
Expenses paid indirectly............................... 0.00%(c) 0.00%(c)
Six Months Ended Commencement of Operations
September 30, 2007 February 12, 2006 through
Short Term Income shares (Unaudited) March 31, 2007
- ------------------------- --------- --------------
Per Share Operating Performance:
(for a share outstanding throughout the period)
Net asset value, beginning of period...................... $ 1.00 $ 1.00
---------- -----------
Income from investment operations:
Net investment income.................................. 0.022 0.006
Net realized and unrealized gain(loss) on investments. 0.000 0.000
---------- -----------
Total from investment operations....................... 0.022 0.006
Less distributions from:
Dividends from net investment income................... (0.022) (0.006)
Net realized gain on investments....................... (0.000) (0.000)
---------- -----------
Total Distributions.................................... (0.022) (0.006)
---------- -----------
Net asset value, end of period............................ $ 1.00 $ 1.00
========== ===========
Total Return.............................................. 2.25%(a) 0.59%(a)
Ratios/Supplemental Data
Net assets, end of period (000's)......................... $ 247,220 $ 57,097
Ratios to average net assets:
Expenses (net of fees waived) (b)...................... 0.94%(c) 0.94%(c)
Net investment income.................................. 4.46%(c) 4.47%(c)
Management and administration fees waived.............. -- (c) 0.03%(c)
Expenses paid indirectly............................... 0.00%(c) 0.00%(c)
(a) Unannualized
(b) Includes expenses paid indirectly.
(c) Annualized
The accompanying notes are an integral part of these financial statements.
- -------------------------------------------------------------------------------
===============================================================================
Six Months Ended Commencement of Operations
September 30, 2007 November 28, 2006 through
Retail shares (Unaudited) March 31, 2007
- -------------- --------- --------------
Per Share Operating Performance:
(for a share outstanding throughout the period)
Net asset value, beginning of period...................... $ 1.00 $ 1.00
------------ -------------
Income from investment operations:
Net investment income.................................. 0.022 0.015
Net realized and unrealized gain(loss) on investments. 0.000 0.000
------------ -------------
Total from investment operations....................... 0.022 0.015
Less distributions from:
Dividends from net investment income................... (0.022) (0.015)
Net realized gain on investments....................... (0.000) (0.000)
------------ -------------
Total Distributions.................................... (0.022) (0.015)
------------ -------------
Net asset value, end of period............................ $ 1.00 $ 1.00
============ =============
Total Return.............................................. 2.21%(a) 1.49%(a)
Ratios/Supplemental Data
Net assets, end of period (000's)......................... $ 1,367,331 $ 897,904
Ratios to average net assets:
Expenses (net of fees waived) (b)...................... 1.00%(c) 1.00%(c)
Net investment income.................................. 4.39%(c) 4.39%(c)
Management and administration fees waived.............. -- (c) 0.03%(c)
Distribution fees waived............................... 0.14%(c) 0.10%(c)
Transfer Agency Account fees waived.................... -- (c) 0.03%(c)
Expenses paid indirectly............................... 0.00%(c) 0.00%(c)
Six Months Ended For the Years Ended March 31,
-------------------------------------------------------
Pinnacle Shares September 30, 2007 2007 2006 2005 2004 2003
- ----------------- (Unaudited) ------ -------- -------- ------- -------
-----------
Per Share Operating Performance:
(for a share outstanding throughout the period)
Net asset value, beginning of period..................... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
-------- -------- -------- -------- --------- --------
Income from investment operations:
Net investment income................................. 0.026 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 0.000
-------- -------- -------- -------- --------- --------
Total from investment operations...................... 0.026 0.051 0.036 0.016 0.010 0.016
Less distributions from:
Dividends from net investment income.................. (0.026) (0.051) (0.036) (0.016) (0.010) (0.016)
Net realized gain(loss) on investment................. (0.000) (0.000) -- (0.000) (0.000) (0.000)
-------- -------- -------- -------- -------- --------
Total Distributions................................... (0.026) (0.051) (0.036) (0.016) (0.010) (0.016)
-------- -------- -------- -------- -------- --------
Net asset value, end of period........................... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======== ======== ======== ======== ======== ========
Total Return............................................. 2.62%(a) 5.19% 3.63% 1.61% 1.00% 1.61%
Ratios/Supplemental Data
Net assets, end of period (000's)........................ $152,691 $ 171,028 $ 134,682 $ 114,792 $ 122,839 $ 130,135
Ratios to average net assets:
Expenses (net of fees waived) (b)..................... 0.20%(c) 0.20% 0.20% 0.20% 0.20% 0.20%
Net investment income................................. 5.19%(c) 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........................... 0.01%(c) -- 0.02% 0.02% 0.02% 0.02%
Expenses paid indirectly.............................. 0.00%(c) 0.00% 0.00% 0.00% 0.00% 0.00%
(a) Unannualized
(b) Includes expenses paid indirectly.
(c) Annualized
The accompanying notes are an integral part of these financial statements.
- -------------------------------------------------------------------------------
DAILY INCOME FUND
MONEY MARKET PORTFOLIO
FINANCIAL HIGHLIGHTS (CONTINUED)
(UNAUDITED)
===============================================================================
Six Months Ended Commencement of Operations
September 30, 2007 November 1, 2006 through
Advantage shares (Unaudited) March 31, 2007
- -------------- --------- --------------
Per Share Operating Performance:
(for a share outstanding throughout the period)
Net asset value, beginning of period...................... $ 1.00 $ 1.00
------------ -------------
Income from investment operations:
Net investment income.................................. 0.022 0.018
Net realized and unrealized gain(loss) on investments. 0.000 0.000
------------ -------------
Total from investment operations....................... 0.022 0.018
Less distributions from:
Dividends from net investment income................... (0.022) (0.018)
Net realized gain on investments....................... (0.000) (0.000)
------------ -------------
Total Distributions.................................... (0.022) (0.018)
------------ -------------
Net asset value, end of period............................ $ 1.00 $ 1.00
============ =============
Total Return.............................................. 2.20%(a) 1.81%(a)
Ratios/Supplemental Data
Net assets, end of period (000's)......................... $ 3,158,738 $ 3,113,588
Ratios to average net assets:
Expenses (net of fees waived) (b)...................... 1.02%(c) 1.02%(c)
Net investment income.................................. 4.37%(c) 4.35%(c)
Management and administration fees waived.............. -- (c) 0.03%(c)
Distribution fees waived............................... 0.17%(c) 0.16%(c)
Transfer Agency Account fees waived.................... 0.10%(c) 0.10%(c)
Expenses paid indirectly............................... 0.00%(c) 0.00%(c)
Commencement of Operations
Xpress shares June 19, 2007 through
- --------------- September 30, 2007
Per Share Operating Performance: (Unaudited)
(for a share outstanding throughout the period) -----------
Net asset value, beginning of period...................... $ 1.00
----------
Income from investment operations:
Net investment income.................................. 0.012
Net realized and unrealized gain(loss) on investments.. 0.000
----------
Total from investment operations....................... 0.012
Less distributions from:
Dividends from net investment income................... (0.012)
Net realized gain on investments....................... (0.000)
----------
Total Distributions.................................... (0.012)
----------
Net asset value, end of period............................ $ 1.00
==========
Total Return.............................................. 1.16%(a)
Ratios/Supplemental Data
Net assets, end of period (000's)......................... $ 1,529,188
Ratios to average net assets:
Expenses (net of fees waived) (b)...................... 1.25%(c)
Net investment income.................................. 4.17%(c)
Management and administration fees waived.............. -- (c)
Sub-Accounting fees waived............................. 0.04%(c)
Expenses paid indirectly............................... 0.00%(c)
(a) Unannualized
(b) Includes expenses paid indirectly.
(c) Annualized
The accompanying notes are an integral part of these financial statements.
[THIS PAGE INTENTIONALLY LEFT BLANK.]
- -------------------------------------------------------------------------------
DAILY INCOME FUND
U.S. TREASURY PORTFOLIO
EXPENSE CHART
FOR THE SIX MONTHS ENDED SEPTEMBER 30, 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 April 1, 2007 through September 30, 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 Beginning Account Ending Account Value Expenses Paid Annualized
& Pinnacle Shares (a) Value 04/01/07 09/30/07 During the period Expense Ratio
- ----------------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------------
Actual $1,000.00 $1,024.30 $1.01 0.20%
- ----------------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------------
Hypothetical (5% return before $1,000.00 $1,024.00 $1.01 0.20%
expenses)
- ----------------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------------
Institutional Service Shares (a) Beginning Account Ending Account Value Expenses Paid Annualized
Value 04/01/07 09/30/07 During the Period Expense Ratio
- ----------------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------------
Actual $1,000.00 $1,023.10 $2.28 0.45%
- ----------------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------------
Hypothetical (5% return before $1,000.00 $1,022.75 $2.28 0.45%
expenses)
- ----------------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------------
Investor Shares (a) Beginning Account Ending Account Value Expenses Paid Annualized
Value 04/01/07 09/30/07 During the Period Expense Ratio
- ----------------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------------
Actual $1,000.00 $1,022.10 $3.18 0.63%
- ----------------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------------
Hypothetical (5% return before $1,000.00 $1,021.85 $3.18 0.63%
expenses)
- ----------------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------------
Short Term Income Shares (a) Beginning Account Ending Account Value Expenses Paid Annualized
Value 04/01/07 09/30/07 During the Period Expense Ratio
- ----------------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------------
Actual $1,000.00 $1,020.80 $4.55 0.90%
- ----------------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------------
Hypothetical (5% return before $1,000.00 $1,020.50 $4.55 0.90%
expenses)
- ----------------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
===============================================================================
- ----------------------------------------------------------------------------------------------------------------------------
Retail Shares (a) Beginning Account Ending Account Value Expenses Paid Annualized
Value 04/01/07 09/30/07 During the Period Expense Ratio
- ----------------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------------
Actual $1,000.00 $1,020.30 $5.05 1.00%
- ----------------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------------
Hypothetical (5% return before $1,000.00 $1,020.00 $5.05 1.00%
expenses)
- ----------------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------------
(a) Expenses are equal to the Fund's annualized expense ratios multiplied by
the average account value over the period (April 1, 2007 through September
30, 2007), multiplied by 183/366 (to reflect the most recent fiscal
half-year).
- -------------------------------------------------------------------------------
DAILY INCOME FUND
U.S. TREASURY PORTFOLIO
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2007
(UNAUDITED)
===============================================================================
Face Maturity Value
Amount Date Yield (Note 1)
- ----------- ------ ----- -------
Repurchase Agreements (48.81%)
- -----------------------------------------------------------------------------------------------------------------------------------
$ 102,000,000 Bank of America Securities, LLC, purchased on 09/28/07, repurchase
proceeds at maturity $102,033,150 (Collateralized by $138,592,000,
TINT, 0%, due 02/15/13 to 11/15/27, value $14,042,097, TPRN, 0% to 4.00%
due 11/15/12 to 08/15/29, value $24,229,177, TRIN, 2.00%, due 01/15/16,
value $46,366, U.S. Treasury Bill, 0%, due 11/8/07, value $4,347,417
U.S. Treasury Bonds, 8.75% to 10.625%, due 08/15/15 to 05/15/17,
value $7,251,096, U.S. Treasury Notes, 3.00% to 4.875%,
due 11/15/07 to 02/15/16, value $54,124,766) 10/01/07 3.90% $ 102,000,000
245,000,000 Bear, Stearns & Co., Inc., purchased on 09/28/07, repurchase
proceeds at maturity $245,100,042 (Collateralized by $399,360,848,
GNMA, 3.50% to 12.00%, due 07/15/08 to 09/15/37, value
$249,904,278) 10/01/07 4.90 245,000,000
70,000,000 Goldman Sachs, purchased on 09/28/07, repurchase proceeds at
maturity $70,021,000 (Collateralized by $68,155,000, U.S. Treasury
Note, 5.125%, due 06/30/11, value $71,400,130) 10/01/07 3.60 70,000,000
90,000,000 Merrill Lynch Pierce Fenner & Smith Co., purchased on 09/28/07,
repurchase proceeds at maturity $90,029,250 (Collateralized by
90,760,000, U.S. Treasury Note, 4.50%, 05/15/17,
value $91,801,057) 10/01/07 3.90 90,000,000
100,000,000 UBS Securities, LLC, purchased on 09/28/07, repurchase proceeds at
maturity $100,032,917 (Collateralized by $192,874,000, TINT, 0%,
due 02/15/18 to 08/15/26, value $102,001,523) 10/01/07 3.95 100,000,000
- ---------------- --------------
607,000,000 Total Repurchase Agreements 607,000,000
- ---------------- --------------
U.S. Government Obligations (51.11%)
- -----------------------------------------------------------------------------------------------------------------------------------
$ 250,000,000 U.S. Treasury Bill 10/04/07 2.95% $ 249,939,583
75,000,000 U.S. Treasury Bill 10/04/07 2.64 74,983,750
250,000,000 U.S. Treasury Bill 02/21/08 3.92 246,103,250
35,000,000 U.S. Treasury Note, 3.75% 05/15/08 4.98 34,738,965
30,000,000 U.S. Treasury Note, 3.75% 05/15/08 5.01 29,775,526
- ---------------- --------------
640,000,000 Total U.S. Government Obligations 635,541,074
- ---------------- --------------
Total Investments (99.92%) (Cost $1,242,541,074+) 1,242,541,074
Cash and other assets in excess of liabilities (0.08%) 945,702
--------------
Net Assets (100.00%) $1,243,486,776
==============
+ 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
TRIN = U.S. Treasury Inflation-Protected Securities
The accompanying notes are an integral part of these financial statements.
- -------------------------------------------------------------------------------
DAILY INCOME FUND
U.S. TREASURY PORTFOLIO
BREAKDOWN OF PORTFOLIO HOLDING BY MATURITY
SEPTEMBER 30, 2007
(UNAUDITED)
===============================================================================
- ------------------------------ ------------------------ -----------------------
Securities Maturing in Value % of Portfolio
- ------------------------------ ------------------------ -----------------------
- ------------------------------ ------------------------ -----------------------
Less than 31 Days $ 931,923,333 75.00%
31 through 60 Days -- 0.00
61 through 90 Days -- 0.00
91 through 120 Days -- 0.00
121 through 180 Days 246,103,250 19.81
Over 180 Days 64,514,491 5.19
- ------------------------------ ------------------------ -----------------------
- ------------------------------ ------------------------ -----------------------
Total $1,242,541,074 100.00%
- ------------------------------ ------------------------ -----------------------
The accompanying notes are an integral part of these financial statements.
- -------------------------------------------------------------------------------
DAILY INCOME FUND
U.S. TREASURY PORTFOLIO
STATEMENT OF ASSETS AND LIABILITIES
SEPTEMBER 30, 2007
(UNAUDITED)
===============================================================================
ASSETS
Investments in securities, at amortized cost (Note 1)............................. $ 635,541,074
Repurchase agreements............................................................. 607,000,000
Cash.............................................................................. 1,890,584
Accrued interest receivable....................................................... 1,137,044
Prepaid expenses.................................................................. 26,737
------------------
Total assets............................................................... 1,245,595,439
------------------
LIABILITIES
Payable to affiliates*............................................................ 266,923
Accrued expenses.................................................................. 253,091
Dividends payable................................................................. 1,588,545
Other Payables.................................................................... 104
------------------
Total liabilities.......................................................... 2,108,663
------------------
Net assets........................................................................ $ 1,243,486,776
==================
SOURCE OF NET ASSETS
Net capital paid in on shares of capital stock (Note 3)........................... $ 1,243,486,776
------------------
Net assets........................................................................ $ 1,243,486,776
==================
Net asset value, per share (Note 3):
Class Name Net Assets Shares Outstanding Net Asset Value
Institutional Shares........................ $540,345,738 540,345,738 $1.00
Institutional Service Shares................ $262,429,330 262,429,330 $1.00
Investor Shares............................. $189,561,936 189,561,936 $1.00
Short Term Income Shares.................... $185,515,718 185,515,718 $1.00
Retail Shares............................... $495,738 495,738 $1.00
Pinnacle Shares............................. $65,138,316 65,138,316 $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
U.S. TREASURY PORTFOLIO
STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED SEPTEMBER 30, 2007
(UNAUDITED)
===============================================================================
INVESTMENT INCOME
Income:
Interest........................................................................ $ 30,160,918
------------------
Expenses: (Note 2)
Investment management fee....................................................... 723,328
Administration fee.............................................................. 301,386
Shareholder servicing fee (Institutional Service Shares)........................ 289,695
Shareholder servicing fee (Investor Shares)..................................... 213,342
Shareholder servicing fee (Short Term Income Shares)............................ 108,360
Shareholder servicing fee (Retail Shares)....................................... 729
Distribution fee (Investor Shares).............................................. 170,673
Distribution fee (Short Term Income Shares)..................................... 195,048
Distribution fee (Retail Shares)................................................ 1,894
Custodian expenses.............................................................. 36,602
Shareholder servicing and related shareholder expenses+......................... 198,100
Legal, compliance and filing fees............................................... 127,189
Audit and accounting............................................................ 118,503
Trustees' fees and expenses..................................................... 36,875
Other........................................................................... 19,056
------------------
Total expenses.................................................................. 2,540,780
Less: Fees waived (Note 2)............................................... (357,433)
Expense paid indirectly (Note 2)................................... (15,419)
------------------
Net expenses.................................................................... 2,167,928
------------------
Net investment income........................................................... 27,992,990
REALIZED GAIN (LOSS) ON INVESTMENTS
Net realized gain on investments.................................................... -0-
------------------
Increase in net assets from operations.............................................. $ 27,992,990
==================
+ Includes class specific transfer agency expenses of $67,323, $23,176,
$42,668, $21,672, $141, and $4,261 for the Institutional, Institutional
Service, Investor, Short Term Income, Retail Shares, and Pinnacle
respectively.
The accompanying notes are an integral part of these financial statements.
- -------------------------------------------------------------------------------
DAILY INCOME FUND
U.S. TREASURY PORTFOLIO
STATEMENTS OF CHANGES IN NET ASSETS
===============================================================================
Six Months Ended Year
September 30. 2007 Ended
(Unaudited) March 31.2007
INCREASE (DECREASE) IN NET ASSETS --------- -------------
Operations:
Net investment income......................................... $ 27,992,990 $ 43,582,659
Net realized gain (loss) on investments....................... -0- -0-
--------------- ----------------
Increase in net assets from operations............................ 27,992,990 43,582,659
Dividends to shareholders from net investment income:
Institutional Shares.......................................... (16,257,483) (30,970,760)
Institutional Service Shares.................................. (5,278,157) (10,279,709)
Investor Shares............................................... (3,724,878) (449,775)
Short Term Income Shares...................................... (1,710,171) (309,804)
Retail Shares................................................. (11,711) (5,127)
Pinnacle Shares............................................... (1,010,590) (1,567,484)
--------------- ----------------
Total dividends to shareholders.......................... (27,992,990) (43,582,659)
--------------- ----------------
Distributions to shareholders from realized gains on investments:
Institutional Shares.......................................... -0- -0-
Institutional Service Shares.................................. -0- -0-
Investor Shares............................................... -0- -0-
Short Term Income Shares...................................... -0- -0-
Retail Shares................................................. -0- -0-
Pinnacle Shares............................................... -0- -0-
--------------- ----------------
Total distributions to shareholders...................... -0- -0-
--------------- ----------------
Capital share transactions (Note 3):
Institutional Shares.......................................... (49,908,352) (239,459,937)
Institutional Service Shares.................................. 13,467,745 (55,206,814)
Investor Shares............................................... 54,651,213 134,910,723
Short Term Income Shares...................................... 162,852,395 22,663,323
Retail Shares................................................. 124,193 371,545
Pinnacle Shares............................................... 25,510,405 11,123,008
--------------- ----------------
Total capital share transactions........................ 206,697,599 (125,598,152)
--------------- ----------------
Total increase (decrease) .................................... 206,697,599 (125,598,152)
Net assets:
Beginning of period........................................... 1,036,789,177 1,162,387,329
--------------- ----------------
End of period................................................ $ 1,243,486,776 $ 1,036,789,177
=============== ================
Undistributed net investment income............................... $ -0- $ -0-
=============== ================
The accompanying notes are an integral part of these financial statements.
- -------------------------------------------------------------------------------
DAILY INCOME FUND
U.S. TREASURY PORTFOLIO
FINANCIAL HIGHLIGHTS
(UNAUDITED)
===============================================================================
Six Months Ended For the Years Ended March 31,
-------------------------------------------------------
Institutional shares September 30, 2007 2007 2006 2005 2004 2003
- -------------------- (Unaudited) ------ -------- -------- ------- -------
-----------
Per Share Operating Performance:
(for a share outstanding throughout the period)
Net asset value, beginning of period..................... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
-------- -------- -------- -------- --------- --------
Income from investment operations:
Net investment income................................. 0.024 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...................... 0.024 0.049 0.034 0.014 0.009 0.015
Less distributions from:
Dividends from net investment income.................. (0.024) (0.049) (0.034) (0.014) (0.009) (0.015)
Net realized gain(loss) on investment................. (--) (--) (0.000) (0.000) (0.000) (--)
-------- -------- -------- -------- -------- --------
Total Distributions................................... (0.024) (0.049) (0.034) (0.014) (0.009) (0.015)
-------- -------- -------- -------- -------- --------
Net asset value, end of period........................... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======== ======== ======== ======== ======== ========
Total Return............................................. 2.43%(a) 5.02% 3.48% 1.44% 0.91% 1.53%
Ratios/Supplemental Data
Net assets, end of period (000's)........................ $540,346 $ 590,254 $ 829,714 $ 484,434 $ 466,041 $ 383,677
Ratios to average net assets:
Expenses (net of fees waived) (b)..................... 0.20%(c) 0.20% 0.20% 0.20% 0.20% 0.20%
Net investment income................................. 4.83%(c) 4.89% 3.51% 1.45% 0.90% 1.51%
Management and administration fees waived............. 0.05%(c) 0.03% 0.05% 0.03% 0.04% 0.03%
Expenses paid indirectly.............................. 0.00%(c) 0.00% 0.00% 0.00% 0.00% 0.00%
Six Months Ended For the Years Ended March 31,
-------------------------------------------------------
Institutional Service shares September 30, 2007 2007 2006 2005 2004 2003
- ---------------------------- (Unaudited) ------ -------- -------- ------- -------
-----------
Per Share Operating Performance:
(for a share outstanding throughout the period)
Net asset value, beginning of period..................... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
-------- -------- -------- -------- --------- --------
Income from investment operations:
Net investment income................................. 0.023 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...................... 0.023 0.047 0.032 0.012 0.007 0.013
Less distributions from:
Dividends from net investment income.................. (0.023) (0.047) (0.032) (0.012) (0.007) (0.013)
Net realized gain(loss) on investment................. (--) (--) (0.000) (0.000) (0.000) (--))
-------- -------- -------- -------- -------- --------
Total Distributions................................... (0.023) (0.047) (0.032) (0.012) (0.007) (0.013)
-------- -------- -------- -------- -------- --------
Net asset value, end of period........................... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======== ======== ======== ======== ======== ========
Total Return............................................. 2.31%(a) 4.76% 3.22% 1.19% 0.66% 1.28%
Ratios/Supplemental Data
Net assets, end of period (000's)........................ $262,429 $ 248,962 $ 304,168 $ 236,621 $261,931 $ 276,174
Ratios to average net assets:
Expenses (net of fees waived) (b)..................... 0.45%(c) 0.45% 0.45% 0.45% 0.45% 0.45%
Net investment income................................. 4.55%(c) 4.65% 3.17% 1.18% 0.66% 1.28%
Management and administration fees waived............. 0.05%(c) 0.03% 0.05% 0.03% 0.04% 0.03%
Expenses paid indirectly.............................. 0.00%(c) 0.00% 0.00% 0.00% 0.00% 0.00%
(a) Unannualized
(b) Includes expenses paid indirectly.
(c) Annualized
The accompanying notes are an integral part of these financial statements.
- -------------------------------------------------------------------------------
===============================================================================
Six Months Ended February 21, 2006 through
Investor shares (Unaudited) March 31, 2007
- ---------------- --------- --------------
Per Share Operating Performance:
(for a share outstanding throughout the period)
Net asset value, beginning of period...................... $ 1.00 $ 1.00
---------- -----------
Income from investment operations:
Net investment income.................................. 0.022 0.005
Net realized and unrealized gain(loss) on investments. -- --
---------- -----------
Total from investment operations....................... 0.022 0.005
Less distributions from:
Dividends from net investment income................... (0.022) (0.005)
Net realized gain on investments....................... -- --
---------- -----------
Total Distributions.................................... (0.022) (0.005)
---------- -----------
Net asset value, end of period............................ $ 1.00 $ 1.00
========== ===========
Total Return.............................................. 2.21%(a) 0.50%(a)
Ratios/Supplemental Data
Net assets, end of period (000's)......................... $ 189,562 $ 134,911
Ratios to average net assets:
Expenses (net of fees waived) (b)...................... 0.63%(c) 0.63%(c)
Net investment income.................................. 4.36%(c) 4.62%(c)
Management and administration fees waived.............. 0.05%(c) 0.03%(c)
Distribution fees waived............................... 0.05%(c) 0.05%(c)
Expenses paid indirectly............................... 0.00%(c) 0.00%(c)
Six Months Ended Commencement of Operations
September 30, 2007 November 2, 2006 through
Short Term Income shares (Unaudited) March 31, 2007
- ------------------------- --------- --------------
Per Share Operating Performance:
(for a share outstanding throughout the period)
Net asset value, beginning of period...................... $ 1.00 $ 1.00
---------- -----------
Income from investment operations:
Net investment income.................................. 0.021 0.018
Net realized and unrealized gain(loss) on investments. -- --
---------- -----------
Total from investment operations....................... 0.021 0.018
Less distributions from:
Dividends from net investment income................... (0.021) (0.018)
Net realized gain on investments....................... -- --
---------- -----------
Total Distributions.................................... (0.021) (0.018)
---------- -----------
Net asset value, end of period............................ $ 1.00 $ 1.00
========== ===========
Total Return.............................................. 2.08%(a) 1.80%(a)
Ratios/Supplemental Data
Net assets, end of period (000's)......................... $ 185,516 $ 22,663
Ratios to average net assets:
Expenses (net of fees waived) (b)...................... 0.90%(c) 0.90%(c)
Net investment income.................................. 3.95%(c) 4.32%(c)
Management and administration fees waived.............. 0.05%(c) 0.03%(c)
Distribution fee waiver................................ 0.03%(c) 0.03%(c)
Expenses paid indirectly............................... 0.00%(c) 0.00%(c)
(a) Unannualized
(b) Includes expenses paid indirectly.
(c) Annualized
The accompanying notes are an integral part of these financial statements.
- -------------------------------------------------------------------------------
DAILY INCOME FUND
U.S. TREASURY PORTFOLIO
FINANCIAL HIGHLIGHTS (CONTINUED)
(UNAUDITED)
===============================================================================
Six Months Ended Commencement of Operations
September 30, 2007 December 12, 2006 through
Retail shares (Unaudited) March 31, 2007
- ---------------- --------- --------------
Per Share Operating Performance:
(for a share outstanding throughout the period)
Net asset value, beginning of period................... $ 1.00 $ 1.00
---------- -----------
Income from investment operations:
Net investment income............................... 0.020 0.013
Net realized and unrealized gain(loss) on investments -- --
---------- -----------
Total from investment operations.................... 0.020 0.013
Less distributions from:
Dividends from net investment income................ (0.020) (0.013)
Net realized gain on investments.................... -- --
---------- -----------
Total Distributions................................. (0.020) (0.013)
---------- -----------
Net asset value, end of period......................... $ 1.00 $ 1.00
========== ===========
Total Return........................................... 2.03%(a) 1.28%(a)
Ratios/Supplemental Data
Net assets, end of period (000's)...................... $ 496 $ 371
Ratios to average net assets:
Expenses (net of fees waived) (b)................... 1.00%(c) 1.00%(c)
Net investment income............................... 4.02%(c) 4.22%(c)
Management and administration fees waived........... 0.05%(c) 0.03%(c)
Distribution fees waived............................ 0.13%(c) 0.10%(c)
Transfer Agency Account fees waived................. -- (c) 0.03%(c)
Expenses paid indirectly............................ 0.00%(c) 0.00%(c)
Six Months Ended For the Years Ended March 31,
-------------------------------------------------------
Pinnacle shares September 30, 2007 2007 2006 2005 2004 2003
- --------------- (Unaudited) ------ -------- -------- ------- -------
Per Share Operating Performance:
(for a share outstanding throughout the period)
Net asset value, beginning of period..................... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
-------- -------- -------- -------- --------- --------
Income from investment operations:
Net investment income................................. 0.024 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...................... 0.024 0.049 0.034 0.014 0.009 0.015
Less distributions from:
Dividends from net investment income.................. (0.024) (0.049) (0.034) (0.014) (0.009) (0.015)
Net realized gain(loss) on investment................. (--) (--) (0.000) (0.000) (0.000) (--)
-------- -------- -------- -------- -------- --------
Total Distributions................................... (0.024) (0.049) (0.034) (0.014) (0.009) (0.015)
-------- -------- -------- -------- -------- --------
Net asset value, end of period........................... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======== ======== ======== ======== ======== ========
Total Return............................................. 2.43%(a) 5.02% 3.48% 1.44% 0.91% 1.53%
Ratios/Supplemental Data
Net assets, end of period (000's)........................ $ 65,138 $ 39,628 $ 28,505 $ 39,809 $ 29,252 $ 25,526
Ratios to average net assets:
Expenses (net of fees waived) (b)..................... 0.20%(c) 0.20% 0.20% 0.20% 0.20% 0.20%
Net investment income................................. 4.73%(c) 4.93% 3.51% 1.45% 0.90% 1.51%
Management and administration fees waived............. 0.05%(c) 0.03% 0.05% 0.03% 0.04% 0.03%
Expenses paid indirectly.............................. 0.00%(c) 0.00% 0.00% 0.00% 0.00% 0.00%
(a) Unannualized
(b) Includes expenses paid indirectly.
(c) Annualized
The accompanying notes are an integral part of these financial statemnets.
- -------------------------------------------------------------------------------
[THIS PAGE INTENTIONALLY LEFT BLANK.]
- -------------------------------------------------------------------------------
DAILY INCOME FUND
U.S. GOVERNMENT PORTFOLIO
EXPENSE CHART
FOR THE SIX MONTHS ENDED SEPTEMBER 30, 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 April 1, 2007 through September 30, 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 (a) Value 04/01/07 09/30/07 During the Period Expense Ratio
- ----------------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------------
Actual $1,000.00 $1,025.50 $1.06 0.21%
- ----------------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------------
Hypothetical (5% return before $1,000.00 $1,023.95 $1.06 0.21%
expenses)
- ----------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------------
Beginning Account Ending Account Value Expenses Paid Annualized
Institutional Service Shares (a) Value 04/01/07 09/30/07 During the Period Expense Ratio
- ---------------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------------
Actual $1,000.00 $1,024.30 $2.18 0.43%
- ---------------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------------
Hypothetical (5% return before $1,000.00 $1,022.85 $2.17 0.43%
expenses)
- ---------------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------------
Beginning Account Ending Account Value Expenses Paid Annualized
Retail Shares (a) Value 04/01/07 09/30/07 During the Period Expense Ratio
- ---------------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------------
Actual $1,000.00 $1,021.50 $5.05 1.00%
- ---------------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------------
Hypothetical (5% return before $1,000.00 $1,020.00 $5.05 1.00%
expenses)
- ---------------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------------
Beginning Account Ending Account Value Expenses Paid During Annualized
Advantage Shares (a) Value 04/01/07 09/30/07 the Period Expense Ratio
- ---------------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------------
Actual $1,000.00 $1,021.40 $5.15 1.02%
- ---------------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------------
Hypothetical (5% return before $1,000.00 $1,019.90 $5.15 1.02%
expenses)
- ---------------------------------------------------------------------------------------------------------------------------
(a) Expenses are equal to the Fund's annualized expense ratios multiplied by
the average account value over the period (April 1, 2007 through September
30, 2007), multiplied by 183/366 (to reflect the most recent fiscal
half-year).
- -------------------------------------------------------------------------------
DAILY INCOME FUND
U.S. GOVERNMENT PORTFOLIO
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2007
(UNAUDITED)
===============================================================================
Face Maturity Current Value
Amount Date Coupon (1) (Note 1)
- ----------- ---- ---------- --------
Loan Participations (8.36%)
- -----------------------------------------------------------------------------------------------------------------------------------
$ 25,000,000 Army & Air Force Exchange Service 10/10/07 5.50% $ 25,000,000
10,000,000 Army & Air Force Exchange Service 11/28/07 5.05 10,000,000
- ---------------- -------------
35,000,000 Total Loan Participations 35,000,000
- ---------------- -------------
Repurchase Agreements (60.47%)
- -----------------------------------------------------------------------------------------------------------------------------------
$ 68,000,000 Bank of America Securities, LLC, purchased on 09/28/07, repurchase
proceeds at maturity $68,026,917 (Collateralized by $67,461,302,
GNMA, 6.50%, due 09/20/37 value $69,360,000) 10/01/07 4.75% $ 68,000,000
185,000,000 UBS Securities, LLC, purchased on 09/28/07, repurchase proceeds at
maturity $185,076,313 (Collateralized by $270,163,000, RFIN,
0.00%, due 10/15/07 to 04/15/30, value $188,700,638) 10/01/07 4.95 185,000,000
- ---------------- -------------
253,000,000 Total Repurchase Agreements 253,000,000
- ---------------- -------------
U.S. Government Agency Discount Notes (8.38%)
- -----------------------------------------------------------------------------------------------------------------------------------
$ 5,721,000 Federal Home Loan Bank 01/18/08 4.86% $ 5,638,548
2,000,000 Federal Home Loan Bank 02/15/08 4.50 1,998,316
1,018,000 Federal Home Loan Mortgage Corporation 12/07/07 5.25 1,008,300
5,000,000 Federal Home Loan Mortgage Corporation 02/11/08 4.87 4,912,164
5,000,000 Federal Home Loan Mortgage Corporation 07/21/08 4.73 4,814,862
7,000,000 Federal Home Loan Mortgage Corporation 09/15/08 4.50 6,706,680
5,000,000 Federal National Mortgage Association 10/12/07 5.22 4,992,330
5,000,000 Federal National Mortgage Association 10/26/07 5.24 4,982,483
- ---------------- -------------
35,739,000 Total U.S. Government Agency Discount Notes 35,053,683
- ---------------- -------------
U.S. Government Agency Medium Term Notes (21.64%)
- -----------------------------------------------------------------------------------------------------------------------------------
$ 5,000,000 Federal Home Loan Bank 11/01/07 5.14% $ 5,000,000
5,990,000 Federal Home Loan Bank 11/16/07 5.25 5,990,000
5,000,000 Federal Home Loan Bank 01/11/08 5.32 5,000,000
6,075,000 Federal Home Loan Bank 02/15/08 5.20 6,074,548
5,000,000 Federal Home Loan Bank 04/09/08 5.38 5,000,000
5,000,000 Federal Home Loan Bank 04/30/08 5.25 5,000,000
5,000,000 Federal Home Loan Bank 05/07/08 5.30 5,000,000
5,000,000 Federal Home Loan Bank 07/16/08 4.75 5,008,301
7,500,000 Federal Home Loan Bank 07/30/08 5.35 7,500,000
10,000,000 Federal Home Loan Bank 08/14/08 5.40 10,000,000
5,000,000 Federal Home Loan Bank 08/15/08 5.40 5,000,000
5,000,000 Federal Home Loan Bank 08/28/08 5.28 5,000,000
5,000,000 Federal Home Loan Bank 09/05/08 5.38 5,000,000
5,000,000 Federal Home Loan Bank 09/11/08 5.30 5,000,000
5,000,000 Federal Home Loan Mortgage Corporation 01/28/08 5.21 4,996,801
3,000,000 Federal Home Loan Mortgage Corporation 06/30/08 5.28 2,950,847
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)
- -----------------------------------------------------------------------------------------------------------------------------------
$ 3,000,000 Federal National Mortgage Association 11/21/07 5.25% $ 2,999,458
- ---------------- -------------
90,565,000 Total U.S. Government Agency Medium Term Notes 90,519,955
- ---------------- -------------
Total Investments (98.85%) (Cost $413,573,638+) 413,573,638
Cash and other assets in excess of liabilities (1.15%) 4,813,093
-------------
Net Assets (100.00%) $ 418,386,731
=============
+ 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.
KEY:
GNMA = Government National Mortgage Association
RFIN = Resolution Funding Corporation Strip Interest
BREAKDOWN OF PORTFOLIO HOLDINGS BY MATURITY:
- ------------------------------- ---------------------------- ------------------
Securities Maturing in Value % of Portfolio
- ------------------------------- ---------------------------- ------------------
- ------------------------------- ---------------------------- ------------------
Less than 30 Days $ 287,974,813 69.63%
31 through 60Days 28,989,458 7.01
31 through 60Days 1,008,300 0.24
91 through 120 Days 15,635,348 3.78
121 through 180 Days 12,985,028 3.14
Over 180 Days 66,980,691 16.20
- ------------------------------- ---------------------------- ------------------
- ------------------------------- ---------------------------- ------------------
Total $413,573,638 100.00%
- ------------------------------- ---------------------------- ------------------
The accompanying notes are an integral part of these financial statements.
- -------------------------------------------------------------------------------
DAILY INCOME FUND
U.S. GOVERNMENT PORTFOLIO
STATEMENT OF ASSETS AND LIABILITIES
SEPTEMBER 30, 2007
(UNAUDITED)
===============================================================================
ASSETS
Investments in securities, at amortized cost (Note 1)............................. $ 160,573,638
Repurchase agreements............................................................. 253,000,000
Cash.............................................................................. 6,135,544
Accrued interest receivable....................................................... 1,433,274
Prepaid expenses.................................................................. 43,513
Other receivables................................................................. 768
------------------
Total assets............................................................... 421,186,737
------------------
LIABILITIES
Payable to affiliates*............................................................ 144,175
Purchase Payable.................................................................. 1,998,316
Accrued expenses.................................................................. 214,612
Dividends payable................................................................. 442,903
------------------
Total liabilities.......................................................... 2,800,006
------------------
Net assets........................................................................ $ 418,386,731
==================
SOURCE OF NET ASSETS
Net capital paid in on shares of capital stock (Note 3)........................... $ 418,452,522
Accumulated net realized loss..................................................... (65,791)
------------------
Net assets........................................................................ $ 418,386,731
==================
Net asset value, per share (Note 3):
Class Name Net Assets Shares Outstanding Net Asset Value
Institutional Shares........................ $10,254 10,255 $1.00
Institutional Service Shares................ $10,241 10,243 $1.00
Retail Shares............................... $84,422,418 84,435,693 $1.00
Advantage Shares............................ $333,943,818 333,996,331 $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
U.S. GOVERNMENT PORTFOLIO
STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED SEPTEMBER 30, 2007
(UNAUDITED)
===============================================================================
INVESTMENT INCOME
Income:
Interest........................................................................ $ 8,025,488
------------------
Expenses: (Note 2)
Investment management fee....................................................... 183,850
Administration fee.............................................................. 76,604
Shareholder servicing fee (Institutional Service Shares)........................ 13
Shareholder servicing fee (Retail Shares)....................................... 92,960
Shareholder servicing fee (Advantage Shares).................................... 290,035
Distribution fee (Retail Shares)................................................ 241,697
Distribution fee (Advantage Shares)............................................. 870,104
Sub-Accounting fee (Advantage Shares)........................................... 116,014
Custodian expenses.............................................................. 17,314
Shareholder servicing and related shareholder expenses+......................... 35,895
Legal, compliance and filing fees............................................... 137,062
Audit and accounting............................................................ 90,685
Trustees' fees and expenses..................................................... 10,787
Other........................................................................... 4,306
------------------
Total expenses.................................................................. 2,167,326
Less: Fees waived (Note 2)........................................ (609,668)
Expenses paid indirectly (Note 2)....................... (2,419)
------------------
Net expenses.................................................................... 1,555,239
------------------
Net investment income........................................................... 6,470,249
REALIZED GAIN (LOSS) ON INVESTMENTS
Net realized gain (loss) on investments............................................. (65,791)
------------------
Increase in net assets from operations.............................................. $ 6,404,458
==================
+ Includes class specific transfer agency expenses of $1, $1, and $18,594 for
the Institutional, Institutional Service, and Retail, and Shares
respectively.
The accompanying notes are an integral part of these financial statements.
- -------------------------------------------------------------------------------
DAILY INCOME FUND
U.S. GOVERNMENT PORTFOLIO
STATEMENT OF CHANGES IN NET ASSETS
===============================================================================
Six Months Ended Year
September 30, 2007 Ended
(Unaudited) March 31, 2007
----------- --------------
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income......................................... $ 6,470,249 $ 2,891,319
Net realized gain (loss) on investments....................... (65,791) 5,230
--------------- ----------------
Increase in net assets from operations............................ 6,404,458 2,896,549
Dividends to shareholders from net investment income:
Institutional Shares ......................................... (255) (244,853)
Institutional Service Shares ................................. (244) (17)
Retail Shares................................................. (1,578,881) (189,222)
Advantage Shares.............................................. (4,890,869) (2,457,227)
--------------- ----------------
Total dividends to shareholders.......................... (6,470,249) (2,891,319)
--------------- ----------------
Distributions to shareholders from realized gains on investments:
Institutional Shares.......................................... -0- -0-
Institutional Service Shares.................................. -0- -0-
Retail Shares................................................. -0- (8)
Advantage Shares.............................................. -0- (5,222)
--------------- ----------------
Total distributions to shareholders...................... -0- (5,230)
--------------- ----------------
Capital share transactions (Note 3):
Institutional Shares.......................................... 255 10,000
Institutional Service Shares.................................. 243 10,000
Retail Shares................................................. 27,384,523 57,051,170
Advantage Shares.............................................. 140,168,980 193,827,351
--------------- ----------------
Total capital share transactions........................ 167,554,001 250,898,521
--------------- ----------------
Total increase ............................................... 167,488,210 250,898,521
Net assets:
Beginning of period........................................... 250,898,521 -0-
--------------- ----------------
End of period................................................ $ 418,386,731 $ 250,898,521
=============== ================
Undistributed net investment income............................... $ -0- $ -0-
=============== ================
The accompanying notes are an integral part of these financial statements.
- -------------------------------------------------------------------------------
DAILY INCOME FUND
U.S. GOVERNMENT PORTFOLIO
FINANCIAL HIGHLIGHTS
(UNAUDITED)
===============================================================================
Six Months Ended Commencement of Operations
September 30, 2007 October 30, 2006 through
Institutional shares (Unaudited) March 31, 2007
- -------------------- --------- --------------
Per Share Operating Performance:
(for a share outstanding throughout the period)
Net asset value, beginning of period...................... $ 1.00 $ 1.00
---------- -----------
Income from investment operations:
Net investment income.................................. 0.025 0.009
Net realized and unrealized gain(loss) on investments. 0.000 0.000
---------- -----------
Total from investment operations....................... 0.025 0.009
Less distributions from:
Dividends from net investment income................... (0.025) (0.009)
Net realized gain on investments....................... (0.000) --
---------- -----------
Total Distributions.................................... (0.025) (0.009)
---------- -----------
Net asset value, end of period............................ $ 1.00 $ 1.00
========== ===========
Total Return.............................................. 2.55%(a) 0.88%(a)
Ratios/Supplemental Data
Net assets, end of period (000's)......................... $ 10 $ 10
Ratios to average net assets:
Expenses (net of fees waived) (b)...................... 0.21%(c) 0.20%(c)
Net investment income.................................. 5.04%(c) 5.10%(c)
Management and administration fees waived.............. 0.17%(c) 0.16%(c)
Expenses paid indirectly............................... 0.00%(c) --
Six Months Ended Commencement of Operations
September 30, 2007 MArch 19, 2007 through
Institutional Service shares (Unaudited) March 31, 2007
- ---------------------------- --------- --------------
Per Share Operating Performance:
(for a share outstanding throughout the period)
Net asset value, beginning of period...................... $ 1.00 $ 1.00
---------- -----------
Income from investment operations:
Net investment income.................................. 0.024 0.002
Net realized and unrealized gain(loss) on investments. 0.000 0.000
---------- -----------
Total from investment operations....................... 0.024 0.002
Less distributions from:
Dividends from net investment income................... (0.024) (0.002)
Net realized gain on investments....................... (0.000) --
---------- -----------
Total Distributions.................................... (0.024) (0.002)
---------- -----------
Net asset value, end of period............................ $ 1.00 $ 1.00
========== ===========
Total Return.............................................. 2.43%(a) 0.17%(a)
Ratios/Supplemental Data
Net assets, end of period (000's)......................... $ 10 $ 10
Ratios to average net assets:
Expenses (net of fees waived) (b)...................... 0.43%(c) 0.45%(c)
Net investment income.................................. 4.82%(c) 4.85%(c)
Management and administration fees waived.............. 0.17%(c) 0.16%(c)
Expenses paid indirectly............................... 0.00%(c) --
(a) Unannualized
(b) Includes expenses paid indirectly.
(c) Annualized
The accompanying notes are an integral part of these financial statements.
- -------------------------------------------------------------------------------
DAILY INCOME FUND
U.S. GOVERNMENT PORTFOLIO
FINANCIAL HIGHLIGHTS (CONTINUED)
(UNAUDITED)
===============================================================================
Six Months Ended Commencement of Operations
September 30, 2007 December 12, 2006 through
Retail shares (Unaudited) March 31, 2007
- ------------- ----------- --------------
Per Share Operating Performance:
(for a share outstanding throughout the period)
Net asset value, beginning of period...................... $ 1.00 $ 1.00
---------- -----------
Income from investment operations:
Net investment income.................................. 0.021 0.013
Net realized and unrealized gain(loss) on investments. 0.000 0.000
---------- -----------
Total from investment operations....................... 0.021 0.013
Less distributions from:
Dividends from net investment income................... (0.021) (0.013)
Net realized gain on investments....................... (0.000) (0.000)
---------- -----------
Total Distributions.................................... (0.021) (0.013)
---------- -----------
Net asset value, end of period............................ $ 1.00 $ 1.00
========== ===========
Total Return.............................................. 2.15%(a) 1.30%(a)
Ratios/Supplemental Data
Net assets, end of period (000's)......................... $ 84,423 $ 57,051
Ratios to average net assets:
Expenses (net of fees waived) (b)...................... 1.00%(c) 1.00%(c)
Net investment income.................................. 4.25%(c) 4.29%(c)
Management and administration fees waived.............. 0.17%(c) 0.16%(c)
Distribution fees waived............................... 0.13%(c) 0.10%(c)
Transfer Agency Account fees waived.................... -- (c) 0.03%(c)
Expenses paid indirectly............................... 0.00%(c) --
Six Months Ended Commencement of Operations
September 30, 2007 November 2, 2006 through
Advantage shares (Unaudited) March 31, 2007
- ---------------- ----------- --------------
Per Share Operating Performance:
(for a share outstanding throughout the period)
Net asset value, beginning of period...................... $ 1.00 $ 1.00
---------- -----------
Income from investment operations:
Net investment income.................................. 0.021 0.018
Net realized and unrealized gain(loss) on investments. 0.000 0.000
---------- -----------
Total from investment operations....................... 0.021 0.018
Less distributions from:
Dividends from net investment income................... (0.021) (0.018)
Net realized gain on investments....................... (0.000) (0.000)
---------- -----------
Total Distributions.................................... (0.021) (0.018)
---------- -----------
Net asset value, end of period............................ $ 1.00 $ 1.00
========== ===========
Total Return.............................................. 2.14%(a) 1.77%(a)
Ratios/Supplemental Data
Net assets, end of period (000's)......................... $ 333,944 $ 193,827
Ratios to average net assets:
Expenses (net of fees waived) (b)...................... 1.02%(c) 1.02%(c)
Net investment income.................................. 4.22%(c) 4.26%(c)
Management and administration fees waived.............. 0.17%(c) 0.16%(c)
Distribution fees waived............................... 0.16%(c) 0.16%(c)
Sub-Accounting fees waived............................. 0.10%(c) 0.10%(c)
(a) Unannualized
(b) Includes expenses paid indirectly.
(c) Annualized
The accompanying notes are an integral part of these financial statements.
[THIS PAGE INTENTIONALLY LEFT BLANK.]
- -------------------------------------------------------------------------------
DAILY INCOME FUND
MUNICIPAL PORTFOLIO
EXPENSE CHART
FOR THE SIX MONTHS ENDED SEPTEMBER 30, 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 April 1, 2007 through September 30, 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 (a) Value 04/01/07 09/30/07 During the Period Expense Ratio
- ---------------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------------
Actual $1,000.00 $1,016.90 $2.22 0.44%
- ---------------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------------
Hypothetical (5% return before $1,000.00 $1,022.80 $2.23 0.44%
expenses)
- ---------------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------------
Beginning Account Ending Account Value Expenses Paid Annualized
Institutional Shares (a) Value 04/01/07 09/30/07 During the Period Expense Ratio
- ---------------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------------
Actual $1,000.00 $1,018.10 $1.06 0.21%
- ---------------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------------
Hypothetical (5% return before $1,000.00 $1,023.95 $1.06 0.21%
expenses)
- ---------------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------------
Beginning Account Ending Account Value Expenses Paid Annualized
Short Term Income Shares (a) Value 04/01/07 09/30/07 During the Period Expense Ratio
- ---------------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------------
Actual $1,000.00 $1,015.30 $3.83 0.76%
- ---------------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------------
Hypothetical (5% return before $1,000.00 $1,021.20 $3.84 0.76%
expenses)
- ---------------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------------
Beginning Account Ending Account Value Expenses Paid Annualized
Retail Shares (a) Value 04/01/07 09/30/07 During the Period Expense Ratio
- ---------------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------------
Actual $1,000.00 $1,014.10 $5.04 1.00%
- ---------------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------------
Hypothetical (5% return before $1,000.00 $1,020.00 $5.05 1.00%
expenses)
- ---------------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
===============================================================================
- ---------------------------------------------------------------------------------------------------------------------------
Beginning Account Ending Account Value Expenses Paid Annualized
Advantage Shares (a) Value 04/01/07 09/30/07 During the Period Expense Ratio
- ---------------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------------
Actual $1,000.00 $1,014.00 $5.14 1.02%
- ---------------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------------
Hypothetical (5% return before $1,000.00 $1,019.90 $5.15 1.02%
expenses)
- ---------------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------------
(a) Expenses are equal to the Fund's annualized expense ratios multiplied by the
average account value over the period (April 1, 2007 through September 30,
2007), multiplied by 183/366 (to reflect the most recent fiscal half-year).
- -------------------------------------------------------------------------------
DAILY INCOME FUND
MUNICIPAL PORTFOLIO
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2007
(UNAUDITED)
===============================================================================
Ratings (1)
------------------
Face Maturity Current Value Standard
Amount Date Coupon (2) (Note 1) Moody's & Poor's
- ---------- ---- ---------- -------- ------- ---------
Put Bonds (3) (6.11%)
- -----------------------------------------------------------------------------------------------------------------------------------
$ 860,000 City of Dayton, KY Industrial Building Revenue(4)
LOC Fifth Third Bank 04/01/08 4.25% $ 860,000
2,100,000 Clipper Tax Exempt Certificates Trust
(Massachusetts Non-AMT) - Series 2001-4
Insured by MBIA Insurance Corporation 11/01/07 3.75 2,100,000 VMIG-1
6,500,000 Harford County, MD EDRB (A.O. Smith Corp. Project) (4)
LOC Comerica Bank 03/01/08 3.95 6,500,000
3,500,000 Intermountain Power Agency, UT Power Supply RB - Series 1985F
Insured by AMBAC Assurance Corporation 03/17/08 3.51 3,500,000 VMIG-1 A-1+
1,615,000 Michigan Oakland County EDC RB (Orchard - Maple Project) (4)
LOC ABN AMRO Bank, N.A 11/15/07 4.03 1,615,000
2,500,000 Michigan Strategic Fund(4)
LOC Bank of Nova Scotia 04/01/08 3.85 2,500,000
1,700,000 North Carolina Industiral Facility PCFA RB
(GVR American Inc. Project) (4)
LOC Wachovia Bank & Trust Company, N.A. 12/01/07 4.00 1,700,000
5,910,000 South Carolina Three Rivers Solid Waste Disposal - Series A
LOC U.S. Bank, N.A. 04/01/08 3.70 5,910,000 A-1+
- ------------ ------------
24,685,000 Total Put Bonds 24,685,000
- ------------ ------------
Tax Exempt Commercial Paper (5.12%)
- -----------------------------------------------------------------------------------------------------------------------------------
$ 1,000,000 City of St. Louis, MO Airport RN
(Lambert - St. Louis International Airport) - Series 2004
LOC JPMorgan Chase Bank 11/13/07 3.85% $ 1,000,000 P-1 A-1+
5,000,000 NJ EDA Keystone 1992 Project
LOC BNP Paribas 10/17/07 3.76 5,000,000 VMIG-1 A-1+
1,000,000 Oklahoma City, OK Water Utilities Trust - Series A
LOC State Street Bank & Trust Co. 10/10/07 3.62 1,000,000 P-1 A-1+
3,700,000 San Antonio, Texas Water - Series A 10/17/07 3.65 3,700,000 P-1 A-1+
10,000,000 Washington D.C Metropolitan Transit
LOC Wachovia Bank, N.A 10/10/07 3.62 10,000,000 P-1 A-1+
- ------------ -----------
20,700,000 Total Tax-Exempt Commercial Paper 20,700,000
- ------------ -----------
Tax Exempt General Obligation Notes & Bonds (23.46%)
- -----------------------------------------------------------------------------------------------------------------------------------
$ 2,300,000 Bay Village, OH 07/19/08 3.73% $ 2,304,771 MIG-1
2,345,000 Clark County, OH BAN(4) 06/12/08 3.75 2,348,921
1,231,500 Clinton County, OH BAN(4) 01/24/08 3.73 1,233,791
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 3.65 2,300,012
1,600,000 Fairborn, OH Tax Increment RN - Series 2007
LOC U. S. Bank, N.A. 09/12/08 3.75 1,613,264 P-1 A-1+
700,000 Fairfield County, OH BAN (4) 04/01/08 3.90 702,186
1,425,000 Federal Highway Grant Anticipation, AK - Series A 08/01/08 3.76 1,445,113 Aa2 AA
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
- ---------- ---- ---------- -------- ------- ---------
Tax Exempt General Obligation Notes & Bonds (Continued)
- -----------------------------------------------------------------------------------------------------------------------------------
$ 5,000,000 Illinois State GO Certificates 11/09/07 3.75% $ 5,002,600 MIG-1 SP-1+
1,000,000 Iowa Higher Education Loan Authority RB
LOC US Bank N.A 05/20/08 3.70 1,004,890 SP-1+
1,000,000 Iowa Higher Education Loan Authority RB
LOC ABN AMRO Bank, N.A 05/20/08 3.75 1,004,582 SP-1
1,000,000 Maine State Housing Authority Mortgage RB - Series H 12/17/07 3.62 1,000,000 VMIG-1 A-1+
1,292,000 Marion County, OH BAN(4) 05/01/08 3.72 1,294,752
1,400,000 Merton, WI Community School District TRAN (4) 10/26/07 3.77 1,399,932
3,945,000 Michigan Public Educational Authority RB
LOC Bank of New York 08/22/08 3.67 3,973,118 SP-1+
7,000,000 Minnesota State Housing Finance Agency AMT 08/11/08 3.78 7,000,000 MIG-1 SP-1+
2,815,000 Muskingum County, OH (4) 01/17/08 3.80 2,820,337
10,000,000 Neshaminy, PA School District TRAN(4) 06/30/08 3.90 10,017,894
1,000,000 New Richmond, WI School District BAN 06/06/08 3.91 1,000,750 MIG-1
1,095,000 Ogilvie, MN Independent School District # 3
GO Aid Anticipation Certificates of Indebtness - Series 2007B(4) 08/19/08 3.82 1,096,666
5,000,000 Pendleton County, KY(4)
LOC JPMorgan Chase Bank 10/10/07 3.85 5,000,000
2,300,000 St. Louis, MO General Fund RB TAN 06/30/08 3.75 2,312,403 MIG-1 SP-1+
10,000,000 Texas State TRAN 08/28/08 3.68 10,070,885 MIG-1 SP-1+
1,900,000 Vandalia City, OH BAN(4) 08/22/08 3.88 1,900,000
12,000,000 Vermont Housing Finance Agency - Series 2007
LOC Calyon 09/25/08 3.85 12,000,000 P-1 A-1+
4,000,000 Waunakee, WI Community School District (4) 10/09/07 3.76 4,000,200
8,500,000 Wisconsin Kettle Moraine School District (4) 09/03/08 3.72 8,502,210
- ------------ -----------
94,648,500 Total Tax Exempt General Obligation Notes & Bonds 94,849,277
- ------------ -----------
Variable Rate Demand Instruments - Private Placements (5) (0.31%)
- -----------------------------------------------------------------------------------------------------------------------------------
$ 1,270,000 St. Cloud, MN (Kelly Inn Project) - Private Placement
LOC U.S Bank, N.A. 04/01/13 4.00% $ 1,270,000 P-1 A-1+
- ------------ -----------
1,270,000 Variable Rate Demand Instruments - Private Placements 1,270,000
- ------------ -----------
Variable Rate Demand Instruments (5) (66.74%)
- -----------------------------------------------------------------------------------------------------------------------------------
$ 2,040,000 Adams County, PA IDA RB (Say Plastic Inc. Project) - Series 2007(4)
LOC Wachovia Bank, N.A 08/01/32 4.01% $ 2,040,000
1,345,000 Alabama Demopolis IDA (Gulf Opportunity Zone)
LOC Compass Bank 08/01/22 4.06 1,345,000 P-1 A-1
5,205,000 Auburn, AL Non-Profit HAD MHRB (Lakeside Project)
LOC Columbus Bank & Trust Company 09/01/27 4.09 5,205,000 A-1
2,800,000 BB & T Municipal Trust Floater Certificates - Series 1006
LOC Branch Bank & Trust Company 02/22/27 4.02 2,800,000 VMIG-1
9,400,000 BB & T Municipal Trust Floater Certificates - Series 1002
LOC Branch Bank & Trust Company 11/06/23 4.02 9,400,000 VMIG-1
The accompanying notes are an integral part of these financial statements.
- -------------------------------------------------------------------------------
DAILY INCOME FUND
MUNICIPAL PORTFOLIO
SCHEDULE OF INVESTMENTS (CONTINUED)
SEPTEMBER 30, 2007
(UNAUDITED)
===============================================================================
Ratings (1)
------------------
Face Maturity Current Value Standard
Amount Date Coupon (2) (Note 1) Moody's & Poor's
- ---------- ---- ---------- -------- ------- ---------
Variable Rate Demand Instruments (Continued) (5)
- -----------------------------------------------------------------------------------------------------------------------------------
$ 9,305,000 BB & T Municipal Trust Floater Certificates - Series 1004
LOC Branch Bank & Trust Company 01/01/25 4.02% $ 9,305,000 VMIG-1
2,400,000 Birmingham, AL Special Care Facilities Authority RB (United
Cerebral Palsy of Greater Birmingham, Inc Project)-Series 2006
LOC AmSouth Bank 12/01/19 3.90 2,400,000 VMIG-1
5,150,000 Blue Springs, MO IDA MHRB
(Autumn Place Apartments Project) - Series 2004 - A1
Guaranteed by Federal National Mortgage Association 08/15/37 3.94 5,150,000 VMIG-1
2,750,000 Broward County, FL HFA (Sailboat Bend Asrist Lofts)
LOC Citibank 04/15/38 3.94 2,750,000 A-1+
2,000,000 Calcasieu Parish Public Trust Authority Gulf Opportunityzone RB
(Delta Equine Center LLC Project) - Series 2007(4)
LOC Branch Bank & Trust Company 01/01/32 3.98 2,000,000
1,150,000 Caledonia, WI IDRB
(Quick Cable Corpoation Project) - Series 1998 (4)
LOC Fifth Third Bank 12/01/18 3.97 1,150,000
2,700,000 Capital Trust Agency, FL RB
(Aero Miami FX, LLC Project) - Series 2004A
LOC JPMorgan Chase Bank 08/01/34 3.98 2,700,000 A-1+
4,500,000 Carroll County, GA Development Authority RB
(Royal Metal Products) - Series 2007
LOC Branch Bank & Trust Company 01/01/27 3.98 4,500,000 VMIG-1
4,760,000 Chicago, IL MHRB Putters Series 2054
LOC FHA/GNMA 12/20/39 3.96 4,760,000 VMIG-1
5,605,000 Chicago Illinois MHRB (Sankofa Housing Project) - Series 2007B
LOC Harris Trust 12/01/08 3.94 5,605,000 VMIG-1
1,110,000 City of Lima, OH Health Care Facilities RB
(Allen County Health Partners) - Series 2005
LOC Huntington National Bank 11/01/25 3.87 1,110,000 P-1
1,870,000 Cleveland - Cuyahoga County, OH Port Authority RB
(CBT Project) - Series 2007
LOC Charter One Bank 06/01/31 4.00 1,870,000 P-1 A-1+
5,381,359 Clipper Tax Exempt Trust COPs - (Oklahoma) - Series 2004-3 02/01/10 3.96 5,381,359 VMIG-1
1,000,000 Collier County, FL IDA IDRR (Allete, Inc Project)
LOC Wells Fargo Bank, N.A 10/01/25 3.91 1,000,000 A-1+
3,800,000 Connecticut HEFA - (Gaylord Hospital Issue) - Series B
LOC Bank of America, N.A. 07/01/37 3.86 3,800,000 A-1+
1,600,000 Connecticut State GO - Series 1997B 05/15/14 3.80 1,600,000 VMIG-1 A-1+
105,000 Connecticut HEFA RB (Yale University) 07/01/36 4.00 105,000 VMIG-1 A-1+
2,000,000 Connecticut State Speical Tax Obligation Bonds
(Second Lien Transportation Infrastructure) - Series 1
Insured by FSA 12/01/10 3.88 2,000,000 P-1 A-1+
1,000,000 Cook County, IL Capital Improvement Bonds - Series 2004E 11/01/33 3.85 1,000,000 VMIG-1 A-1+
2,000,000 County of Henry, OH Improvement RB (Henry County Hospital, Inc)
Series 2006
LOC Key Bank, N.A 03/01/31 3.92 2,000,000 P-1 A-1
6,900,000 Delaware State EDA Revenue (Delaware Hospice Inc Project)
LOC Wilmington Trust Company 02/01/32 3.92 6,900,000 VMIG-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)
- -----------------------------------------------------------------------------------------------------------------------------------
$ 3,855,000 Detroit, Michigan Water Supply
System 2nd Lien Bonds - Series 2001C
Insured by FGIC 07/01/29 3.88% $ 3,855,000 VMIG-1 A-1+
5,925,000 Douglas County, NE IDRB (Phillips Manufacturing Project)
LOC Wells Fargo Bank N.A 12/01/18 3.94 5,925,000 A-1+
2,315,000 Eagle Tax-Exempt Trust, J Series Class A COPs
Related to State of Florida Full Faith and Credit,
State Board of Education Capital Outlay Bonds, 2003 Series B 06/01/33 3.93 2,315,000 A-1+
6,290,000 Florida Higher Educational Facility Financing Authority RB
(Southeastern University, Inc. Project)
LOC Regions Bank 12/02/30 3.86 6,290,000 VMIG-1
1,055,000 Frisco City, AL IDRB (Standard Furniture Manufacturing Co. Inc.)
LOC Royal Bank of Canada 11/01/09 3.95 1,055,000 A-1
1,350,000 Gainesville Florida IDRB (Heat Pipe Technology Project)
LOC AmSouth Bank 05/01/18 1,350,000 P-1 A-1
7,000,000 Greenwood County, SC (Fuji Photo Film, Inc Project) 09/01/11 4.00 7,000,000 A-1+
1,600,000 Illinois Development Finance Authority RB
(US Acrylic, Inc. Project) - Series 2003(4)
LOC Fifth Third Bank 08/01/33 3.97 1,600,000
1,600,000 Illinois Development Authority IDRB
(HPL Illinois Inc. Project) - Series 1997(4)
LOC Fifth Third Bank 09/01/17 3.98 1,600,000
3,400,000 Illinois Development Finance Authority RB
(Glewood School for Boys) - Series 1998
LOC Harris Trust & Savings Bank 02/01/33 3.96 3,400,000 A-1+
3,000,000 Illinois Development Financial Authority
(Butterfield Creek Project) - Series 1999 AMT
LOC ABN AMRO Bank, N.A 04/01/39 3.96 3,000,000 A-1
2,825,000 Illinois Finance Authority
(Pollman North America, Inc. Project) - Series 2005D
LOC Fifth Third Bank 12/01/25 3.97 2,825,000 P-1 A-1+
7,250,000 Illinois Finance Authority MHRB (Coverd Bridges Apartment Project)
Guaranteed by Federal National Mortgage Association 06/01/27 3.96 7,250,000 A-1+
1,400,000 Iowa Higher Education Loan Authority RB
(Loras College) - Series 2002
LOC ABN AMRO Bank, N.A 11/01/32 4.05 1,400,000 A-1
1,550,000 Iredell County,NC Industrial Facilities & Pollution Contral Funding
(Riley Technologies Project)(4)
LOC Branch Bank & Trust 11/01/31 3.98 1,550,000
900,000 Jefferson County, KY Industrial Building (R.C. TWAY Company,
Kentucky Manufacturing Company Project) Series 1998
LOC Fifth Third Bank 06/01/18 4.03 900,000 P-1 A-1+
1,395,000 Jefferson County, KY (Seven Counties Services Inc, Project)
Series 1999A
LOC Fifth Third Bank 01/01/19 3.93 1,395,000 P-1 A-1+
1,370,000 Jeffersontown, KY Lease Program RB (Kentucky League of
Cities Fund Trust) - Series 2000
LOC U.S Bank, N.A 03/01/30 3.93 1,370,000 VMIG-1
The accompanying notes are an integral part of these financial statements.
- -------------------------------------------------------------------------------
DAILY INCOME FUND
MUNICIPAL PORTFOLIO
SCHEDULE OF INVESTMENTS (CONTINUED)
SEPTEMBER 30, 2007
(UNAUDITED)
===============================================================================
Ratings (1)
------------------
Face Maturity Current Value Standard
Amount Date Coupon (2) (Note 1) Moody's & Poor's
- ---------- ---- ---------- -------- ------- ---------
Variable Rate Demand Instruments (Continued) (5)
- -----------------------------------------------------------------------------------------------------------------------------------
$ 2,400,000 La Porte County, IN EDC RB
(Universal Forest Products) - Series 2000 (4)
LOC ABN AMRO Bank, N.A 11/01/20 4.01% $ 2,400,000
900,000 Lagrange County, IN EDRB (SV Realty LLC Project) - Series 2006
LOC Fifth Third Bank 03/01/26 3.97 900,000 P-1 A-1+
2,615,000 Lee County, FL Industrial Development Authority
Health Care Facilities RB (Shady Rest Care Pavilion Project)
LOC Fifth Third Bank 06/01/25 3.90 2,615,000 P-1 A-1+
4,700,000 Lubbock, TX Educaitonal Facilities Authority
(Lubbock Christian University)
LOC Allied Irish Bank 05/01/29 3.92 4,700,000 VMIG-1
1,750,000 Manatee County, FL PCRB (FL Power & Light Co. Project) 09/01/24 4.05 1,750,000 VMIG-1 A-1
1,800,000 Manchester, GA Development Authority
(G&S Metal Consultants) - Series 2006
LOC Fifth Third Bank 10/01/26 3.97 1,800,000 P-1 A-1+
2,000,000 Marion County, FL IDA RB
(Capris Furniture Industries Project) - Series 2005
LOC SunTrust Bank 02/01/25 4.02 2,000,000 P-1 A-1+
500,000 Massachusetts Water Resources Authority 2002C
LOC Landesbank Hessen Thuringen Girozentrale 08/01/20 4.05 500,000 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 3.95 1,000,000 A-1+
1,925,000 Michigan State Strategic Fund(Sintel, Inc. Project)-Series 2005 (4)
LOC Fifth Third Bank 10/01/30 3.97 1,925,000
2,200,000 Michigan State Strategic Fund Limited Obligation RB
(Grand River Infrastructure, Inc.) - Series 2006 (4)
LOC Fifth Third Bank 06/01/14 3.97 2,200,000
2,350,000 Michigan State Strategic Fund Limited Obligation RB
(Nuvar Properties LLC Project) - Series 2007
LOC Fifth Third Bank 04/01/37 3.97 2,350,000 P-1 A-1+
1,500,000 Michigan Strategic Fund Limited Obligation RB
(Envelope Printery Inc Project) (4)
LOC Fifth Third Bank 03/01/27 3.97 1,500,000
640,000 Mississippi Home Corporation Single Family Mortgate RB
Wachovia Merlots Trust Series 2000YYY
Guaranteed by GNMA 12/01/31 3.97 640,000 VMIG-1
2,200,000 Missouri State HEFA RB (Rockhurst University) - Series 2002
LOC Bank of America 11/01/32 4.05 2,200,000 A-1+
1,450,000 Nashville & Davidson County, TN MHRB (Wedgewood Tower Project)
Series 2004A
LOC AmSouth Bank, N.A 06/01/34 4.02 1,450,000 P-1 A-1
2,165,000 Nevada Housing Division Multi-Unit Housing RB
(Maryland Villas Project) - Series 1997
LOC Federal Home Loan Bank 10/01/30 3.93 2,165,000 A-1+
3,500,000 Nevada Housing Division MHRB
(Golden Apartments Project) - Series 2007
LOC Federal Home Loan Mortgage Corporation 10/01/37 3.93 3,500,000 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)
- -------------------------------------------------------------------------------------------------------------------------
$ 630,000 New Jersey EDA EDRB
(CVC Specialty Chemicals Projects) - Series 2001(4)
LOC Wachovia Bank, N.A 05/01/11 3.86% $ 630,000
3,000,000 New Jersey EDA School Revenue
Variable Facilities Construction - Sub-sereis R1
LOC Bank of Nova Scotia (50%)/Lloyds Bank (50%) 09/01/31 4.00 3,000,000 VMIG-1 A-1+
3,900,000 New Ulm, MN Hospital Refunding RB (The Health Central
Systems Project) - Series 1985
LOC Wells Fargo Bank, N.A 08/01/14 3.85 3,900,000 A-1+
650,000 New York Municipal Securities Trust Certificates
LOC Branch Banking & Trust Company 07/01/18 3.94 650,000 VMIG-1
1,200,000 North Carolina Educational Facilities Finance (Duke University)
Series 1987A 12/01/17 3.82 1,200,000 VMIG-1 A-1+
4,300,000 NYS Housing Finance Agency
(Kew Garden Hills, Housing RB) - Sereis A
Insured by Federal National Mortgage Association 05/15/36 3.82 4,300,000 VMIG-1
2,900,000 NYS Housing Finance Agency
(East 84th Street Housing RB) - Series 1995A
Insured by Federal National Mortgage Association 05/15/33 3.82 2,900,000 VMIG-1
1,500,000 Ohio State Air Quality Development Authority PCRB
(Firstenergy Generation Corp.) - Series 2006A
LOC Key Bank 12/01/23 3.85 1,500,000 VMIG-1 A-1
1,000,000 Olathe, KS IDRB Multi-Modal (Diamant Boart Project)-Series 1997A(4)
LOC Svenska Handelsbanken 03/01/27 3.95 1,000,000
1,200,000 Orange County, FL HFA (Windsor Pines Project) - Series 2000E
LOC Bank of America 03/01/35 3.94 1,200,000 VMIG-1
1,100,000 Orange County, FL MHRB
(Post Fountains at Lee Vista Project)- Series 1997E
Collateralized by Federal National Mortgage Association 06/01/25 3.85 1,100,000 A-1+
1,200,000 Orland Park, IL IDRB (Panduit Corp Project) - Series 1996
LOC Fifth Third Bank 04/01/31 3.95 1,200,000 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 3.86 3,000,000 A-1+
2,000,000 Pennsylvania EDFA (Amtrak Project) - Series B of 2001
LOC JPMorgan Chase Bank 11/01/41 3.94 2,000,000 VMIG-1 A-1+
1,500,000 Pennsylvania EDFA EDRB
(North America Communications, Inc. Project) - Series 2005B3
LOC PNC Bank, N.A. 08/01/12 3.93 1,500,000 P-1 A-1+
2,500,000 Pennsylvania EDFA EDRB
(Joseph R & Nancy L Delsignore Project) - Series 2005B2
LOC PNC Bank, N.A. 08/01/30 3.93 2,500,000 P-1 A-1+
4,895,000 P-Floats Series PA-783 (Puerto Rico Infrastructure Financing
Authority Special Obligation Bonds 2000) - Series A 04/01/09 3.95 4,895,000 A-1+
1,975,000 Port Bellingham, WA Industrial Development Corporation
(BP West Coast Products LLC Project) - Series 2003 03/01/38 4.13 1,975,000 VMIG-1 A-1+
3,000,000 Port Orange, FL (Parmer College of Chiropractic Project)
LOC ABN AMRO Bank, N.A 10/01/32 3.87 3,000,000 A-1
The accompanying notes are an integral part of these financial statements.
- -------------------------------------------------------------------------------
DAILY INCOME FUND
MUNICIPAL PORTFOLIO
SCHEDULE OF INVESTMENTS (CONTINUED)
SEPTEMBER 30, 2007
(UNAUDITED)
===============================================================================
Ratings (1)
------------------
Face Maturity Current Value Standard
Amount Date Coupon (2) (Note 1) Moody's & Poor's
- ---------- ---- ---------- -------- ------- ---------
Variable Rate Demand Instruments (Continued) (5)
- -------------------------------------------------------------------------------------------------------------------------
$ 1,840,000 Revenue Bond Certificate Service Trust - Series 2007
(Park Trails Apartment Project)(4)
LOC American Insurance Group 12/01/34 4.06% $ 1,840,000
1,795,000 Richardson Island, Dallas County, TX Independent School District
(TX Permanent School Fund) 02/15/24 3.85 1,795,000 VMIG-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 3.98 2,000,000
2,200,000 Rockingham, NC IDRB PCFA
(Whiteridge Plastics Project) - Series 2003 (4)
LOC Branch Bank & Trust Company 03/01/15 3.98 2,200,000
3,035,000 South Carolina Jobs EDA Authority
(Cannon Medical Hospital) - Series 2004A
LOC National Bank of South Carolina 06/01/24 3.91 3,035,000 P-1
2,365,000 South Carolina Jobs EDA RB
(DCS Diversified Coating Systems, Inc Project) - Series 2002
LOC Branch Bank & Trust Company 04/01/17 3.98 2,365,000 VMIG-1
1,230,000 South Carolina Ridgeland Township RB
(LRC Ridgeland LLC, Project) - Series 2006A
LOC Columbus Bank & Trust 09/01/21 3.94 1,230,000 P-1 A-1
1,000,000 State of Connecticut HEFA RB (The Hotchkiss School) - Sereis A 07/01/30 3.85 1,000,000 VMIG-1 A-1+
1,100,000 Texas Calhoun County Navigation Port RB (BP PLC) - Series 2003 01/01/24 4.13 1,100,000 VMIG-1 A-1+
3,270,000 TOCs (TICs/TOCs Trust - Series 2000-1) Relating to Puerto Rico
Infrastructure Financing Authority Special Obligation Bonds
2000 - Series A
Collateralized by State & Local Government Series 04/01/27 3.85 3,270,000 A-1+
5,500,000 TOCs (TICs/TOCs Trust - Series 2001-1) Relating to Puerto Rico
Public Improvement Refunding Bonds, - Series 2001-1
Insured by FSA 07/01/27 3.85 5,500,000 A-1+
1,275,000 Tulsa, OK IDA (Indiana Health Care Resources Center of Tulsa)
LOC JPMorgan Chase Bank 06/01/14 4.10 1,275,000 VMIG-1 A-1+
1,435,000 Tuscaloosa County, AL IDA
(Automotive Carridor, LLC Project) - Series 2001(4)
LOC Regions Bank 10/01/21 4.06 1,435,000
895,000 Tuscaloosa County, AL IDA
(Automotive Carridor, LLC Expansion Project) - Series 2001(4)
LOC Regions Bank 11/01/24 4.06 895,000
1,000,000 Utah Housing Corporation Single Family Mortgage Bonds
Bonds - Series C Class 1 2003 07/01/34 3.93 1,000,000 VMIG-1 A-1+
3,000,000 Virginia Port Authority Facility RB Eagle - 20060119 - Class A
Insured by FGIC 07/01/36 4.01 3,000,000 A-1+
2,750,000 Washington State EDFA
(Summer Building LLC Project) - Series 2005F
LOC KeyBank, N.A. 12/01/30 3.99 2,750,000 P-1 A-1
995,000 Washington State HFC Putters - Series 1335
LOC GNMA/FNMA/FHLMC 12/01/09 3.96 995,000 VMIG-1
2,275,000 Washington State Housing Finance Commision Putters 1335
LOC GNMA/FNMA/FHLMC 12/01/23 3.85 2,275,000 VMIG-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)
- -----------------------------------------------------------------------------------------------------------------------------------
$ 2,800,000 Washington State HFC MHRB -
(Seasons Apartment Project) Series 2006
Collateralized by Federal National Mortgage Association 12/15/40 3.94% $ 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 4.04 2,100,000 P-1 A-1+
1,600,000 Wisconsin State HEFA (Prohealth Case Inc.) - Series 2001B
LOC AMBAC Indemnity Corporation 08/15/30 4.05 1,600,000 VMIG-1 A-1+
3,010,000 Will-Kankakee Regional Development Authority, IL IDRB - Series A
LOC Fifth Third Bank 08/01/36 3.97 3,010,000 P-1 A-1+
2,375,000 Wisconsin Sturtevant IDRB (SLJB LLC Inc. Project) - Series 1997
LOC Johnson Bank 05/01/12 3.98 2,375,000
- ------------ -------------
269,846,359 Total Variable Rate Demand Instruments 269,846,359
- ------------ -------------
Total Investments (101.74%) (Cost $411,350,636+) 411,350,636
Liabilities in excess of cash and other assets (-1.74%) (7,046,411)
-------------
Net Assets (100.00%) $ 404,304,225
=============
+ Aggregate cost for federal income tax purposes is identical.
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.
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.
2) The interest rate shown reflects the security's current coupon, unless
yield is available.
3) The maturity date indicated for the put bonds is the next put date.
4) Securities that are not rated that the Adviser has determined to be of
comparable quality to those rated securities in which the Fund invests.
5) 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.
The accompanying notes are an integral part of these financial statements.
- -------------------------------------------------------------------------------
DAILY INCOME FUND
MUNICIPAL PORTFOLIO
SCHEDULE OF INVESTMENTS (CONTINUED)
SEPTEMBER 30, 2007
(UNAUDITED)
===============================================================================
KEY:
AMT = Alternate Minimum Tax HFC = Housing Finance Commission
BAN = Bond Anticipation Note GNMA = Government National Mortgage Association
COPs = Certificates of Participation GO = General Obligation
EDA = Economic Development Authority IDA = Industrial Development Authority
EDC = Economic Development Corporation IDRRB = Industrial Development Revenue Recovery Bond
EDFA = Economic Development Finance Authority IDRB = Industrial Development Revenue Bond
EDRB = Economic Development Revenue Bond LOC = Letter of Credit
FGIC = Financial Guaranty Insurance Company MHRB = Multi-Family Housing Revenue Bond
FHA = Federal Housing Authority PCFA = Pollution Control Finance Authority
FHLMC = Federal Home Loan Mortgage Association PCRB = Pollution Control Revenue Bond
FNMA = Federal National Mortgage Association RB = Revenue Bond
FSA = Financial Security Assurance RN = Revenue Note
HDA = Housing Development Authority TICs = Trust Inverse Certificate
HEFA = Health and Education Facilities Authority TOCs = Tender Option Certificate
HFA = Housing Finance Authority TRAN = Tax and Revenue Anticipation Note
The accompanying notes are an integral part of these financial statements.
- -------------------------------------------------------------------------------
DAILY INCOME FUND
MUNICIPAL PORTFOLIO
BREAKDOWN OF PORTFOLIO HOLDINGS BY STATE
SEPTEMBER 30, 2007
(UNAUDITED)
===============================================================================
- ------------------------- ----------------------------- ------------------------------
States Value % of Portfolio
- ------------------------- ----------------------------- ------------------------------
Alabama $ 12,335,000 3.00%
Arkansas 1,445,113 0.35
Colorado 2,500,000 0.61
Connecticut 8,505,000 2.07
Delaware 6,900,000 1.68
Florida 31,070,000 7.55
Georgia 6,300,000 1.53
Illinois 40,252,600 9.78
Indiana 3,300,000 0.80
Iowa 5,509,472 1.34
Kansas 1,000,000 0.24
Kentucky 9,525,000 2.32
Louisiana 2,000,000 0.49
Maine 1,000,000 0.24
Maryland 6,500,000 1.58
Massachusetts 2,600,000 0.63
Michigan 19,918,117 4.84
Minnesota 13,266,666 3.22
Mississippi 640,000 0.16
Missouri 10,662,403 2.59
Nebraska 5,925,000 1.44
Nevada 5,665,000 1.38
New Jersey 8,630,000 2.10
New York 7,850,000 1.91
North Carolina 8,650,000 2.10
Ohio 20,698,023 5.03
Oklahoma 7,656,359 1.86
Pennsylvania 18,057,894 4.39
Puerto Rico 13,665,000 3.32
South Carolina 19,540,000 4.75
Tennessee 2,450,000 0.60
Texas 21,365,885 5.19
Utah 4,500,000 1.09
Vermont 12,000,000 2.92
Virginia 3,000,000 0.73
Washington 20,795,000 5.06
Wisconsin 22,328,104 5.43
Other Territories 23,345,000 5.68
- ------------------------- ----------------------------- ------------------------------
Total $ 411,350,636 100.00%
- ------------------------- ----------------------------- ------------------------------
The accompanying notes are an integral part of these financial statements.
- -------------------------------------------------------------------------------
DAILY INCOME FUND
MUNICIPAL PORTFOLIO
STATEMENT OF ASSETS AND LIABILITIES
SEPTEMBER 30, 2007
(UNAUDITED)
===============================================================================
ASSETS
Investments in securities, at amortized cost (Note 1)............................. $ 411,350,636
Accrued interest receivable....................................................... 2,106,722
Prepaid expenses.................................................................. 165,226
------------------
Total assets............................................................... 413,622,584
------------------
LIABILITIES
Payable to affiliates*............................................................ 134,207
Payable for securities purchased.................................................. 7,410,000
Due to Custodian.................................................................. 1,123,692
Accrued expenses.................................................................. 304,648
Dividends payable................................................................. 335,827
Other payable..................................................................... 9,985
------------------
Total liabilities.......................................................... 9,318,359
------------------
Net assets........................................................................ $ 404,304,225
==================
SOURCE OF NET ASSETS
Net capital paid in on shares of capital stock (Note 3)........................... $ 404,305,061
Accumulated net realized gain (loss).............................................. (836)
------------------
Net assets........................................................................ $ 404,304,225
==================
Net asset value, per share (Note 3):
Class Name Net Assets Shares Outstanding Net Asset Value
Institutional Shares........................ $10,179 10,180 $1.00
Institutional Service Shares................ $10,168 10,168 $1.00
Short Term Income Shares.................... $95,021,188 95,021,384 $1.00
Retail Shares............................... $145,918,236 145,918,538 $1.00
Advantage Shares............................ $163,344,454 163,344,791 $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
MUNICIPAL PORTFOLIO
STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED SEPTEMBER 30, 2007
(UNAUDITED)
===============================================================================
INVESTMENT INCOME
Income:
Interest........................................................................ $ 6,538,567
------------------
Expenses: (Note 2)
Investment management fee....................................................... 206,612
Administration fee.............................................................. 86,088
Shareholder servicing fee (Institutional Service Shares)........................ 13
Shareholder servicing fee (Short Term Income Shares)............................ 148,904
Shareholder servicing fee (Retail Shares)....................................... 106,717
Shareholder servicing fee (Advantage Shares).................................... 174,794
Distribution fee (Short Term Income Shares)..................................... 268,027
Distribution fee (Retail Shares)................................................ 277,464
Distribution fee (Advantage Shares)............................................. 524,384
Sub-Accounting fee (Advantage Shares)........................................... 69,918
Custodian expenses.............................................................. 14,957
Shareholder servicing and related shareholder expenses+......................... 84,916
Legal, compliance and filing fees............................................... 166,714
Audit and accounting............................................................ 82,173
Trustees' fees and expenses..................................................... 10,434
Other........................................................................... 4,352
------------------
Total expenses.................................................................. 2,226,467
Less: Fees waived ................................................ (630,705)
Expense paid indirectly ........................................... (3,031)
------------------
Net expenses.................................................................... 1,592,731
------------------
Net investment income........................................................... 4,945,836
REALIZED GAIN (LOSS) ON INVESTMENTS
Net realized gain (loss) on investments............................................. (836)
------------------
Increase in net assets from operations.............................................. $ 4,945,000
==================
+ Includes class specific transfer agency expenses of $2, $29,781, and $20,815
for the Institutional, Short Term Income, and Retail Shares, respectively.
The accompanying notes are an integral part of these financial statements.
- -------------------------------------------------------------------------------
DAILY INCOME FUND
MUNICIPAL PORTFOLIO
STATEMENT OF CHANGES IN NET ASSETS
===============================================================================
Six Months Ended Commencement of Operations
September 30, 2007 October 16, 2006 through
(Unaudited) March 31, 2007
----------- --------------
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income......................................... $ 4,945,836 $ 1,499,539
Net realized gain (loss) on investments....................... (836) -0-
--------------- ----------------
Increase in net assets from operations............................ 4,945,000 1,499,539
Dividends to shareholders from net investment income:
Institutional Shares ......................................... (181) (117,822)
Institutional Service Shares ................................. (170) (12)
Short Term Income Shares ..................................... (1,806,994) (99,509)
Retail Shares................................................. (1,193,826) (106,568)
Advantage Shares.............................................. (1,944,665) (1,175,628)
--------------- ----------------
Total dividends to shareholders.......................... (4,945,836) (1,499,539)
--------------- ----------------
Capital share transactions (Note 3):
Institutional Shares.......................................... 180 10,000
Institutional Service Shares.................................. 168 10,000
Short Term Income Shares...................................... 37,106,375 57,915,009
Retail Shares................................................. 104,101,663 41,816,875
Advantage Shares.............................................. 26,798,899 136,545,892
--------------- ----------------
Total capital share transactions........................ 168,007,285 236,297,776
--------------- ----------------
Total increase ............................................... 168,006,449 236,297,776
Net assets:
Beginning of period........................................... 236,297,776 -0-
--------------- ----------------
End of period................................................ $ 404,304,225 $ 236,297,776
=============== ================
Undistributed net investment income............................... $ -0- $ -0-
=============== ================
The accompanying notes are an integral part of these financial statements.
- -------------------------------------------------------------------------------
DAILY INCOME FUND
MUNICIPAL PORTFOLIO
FINANCIAL HIGHLIGHTS
(UANUDITED)
===============================================================================
Six Months Ended Commencement of Operations
September 30, 2007 October 30, 2006 through
(Unaudited) March 31, 2007
Institutional shares ---------- --------------
- --------------------
Per Share Operating Performance:
(for a share outstanding throughout the period)
Net asset value, beginning of period...................... $ 1.00 $ 1.00
---------- -----------
Income from investment operations:
Net investment income.................................. 0.018 0.006
Net realized and unrealized gain(loss) on investments. -- --
---------- -----------
Total from investment operations....................... 0.018 0.006
---------- -----------
Less distributions from:
Dividends from net investment income................... (0.018) (0.006)
Net realized gain on investments....................... -- --
---------- -----------
Total Distributions.................................... (0.018) (0.006)
---------- -----------
Net asset value, end of period............................ $ 1.00 $ 1.00
========== ===========
Total Return.............................................. 1.81%(a) 0.60%(a)
Ratios/Supplemental Data
Net assets, end of period (000's)......................... $ 10 $ 10
Ratios to average net assets:
Expenses (net of fees waived) (b)...................... 0.22%(c) 0.20%(c)
Net investment income.................................. 3.59%(c) 3.44%(c)
Management and administration fees waived.............. 0.17%(c) 0.16%(c)
Six Months Ended Commencement of Operations
September 30, 2007 March 19, 2006 through
(Unaudited) March 31, 2007
Institutional Service shares ---------- --------------
- ----------------------------
Per Share Operating Performance:
(for a share outstanding throughout the period)
Net asset value, beginning of period...................... $ 1.00 $ 1.00
---------- -----------
Income from investment operations:
Net investment income.................................. 0.017 0.001
Net realized and unrealized gain(loss) on investments.. -- --
---------- -----------
Total from investment operations....................... 0.017 0.001
---------- -----------
Less distributions from:
Dividends from net investment income................... (0.017) (0.001)
Net realized gain on investments....................... -- --
---------- -----------
Total Distributions.................................... (0.017) (0.001)
---------- -----------
Net asset value, end of period............................ $ 1.00 $ 1.00
========== ===========
Total Return.............................................. 1.69%(a) 0.12%(a)
Ratios/Supplemental Data
Net assets, end of period (000's)......................... $ 10 $ 10
Ratios to average net assets:
Expenses (net of fees waived)(b)....................... 0.44%(c) 0.42%(c)
Net investment income.................................. 3.36%(c) 3.25%(c)
Management and administration fees waived.............. 0.17%(c) 0.16%(c)
(a) Unannualized
(b) Includes expenses paid indirectly
(c) Annualized
The accompanying notes are an integral part of these financial statements.
- -------------------------------------------------------------------------------
DAILY INCOME FUND
MUNICIPAL PORTFOLIO
FINANCIAL HIGHLIGHTS (CONTINUED)
(UANUDITED)
===============================================================================
Six Months Ended Commencement of Operations
September 30, 2007 March 19, 2006 through
(Unaudited) March 31, 2007
Institutional Service shares ---------- --------------
- ----------------------------
Per Share Operating Performance:
(for a share outstanding throughout the period)
Net asset value, beginning of period...................... $ 1.00 $ 1.00
---------- -----------
Income from investment operations:
Net investment income.................................. 0.015 0.003
Net realized and unrealized gain(loss) on investments.. -- --
---------- -----------
Total from investment operations....................... 0.015 0.003
---------- -----------
Less distributions from:
Dividends from net investment income................... (0.015) (0.003)
Net realized gain on investments....................... -- --
---------- -----------
Total Distributions.................................... 0.015 (0.003)
---------- -----------
Net asset value, end of period............................ $ 1.00 $ 1.00
========= ===========
Total Return.............................................. 1.53%(a) 0.29%(a)
Ratios/Supplemental Data
Net assets, end of period (000's)......................... $ 95,021 $ 57,915
Ratios to average net assets:
Expenses (net of fees waived) (b)...................... 0.76%(c) 0.76%(c)
Net investment income.................................. 3.03%(c) 2.89%(c)
Management and administration fees waived.............. 0.17%(c) 0.16%(c)
Distribution fees waived............................... 0.17%(c) 0.17%(c)
Six Months Ended Commencement of Operations
September 30, 2007 March 19, 2006 through
(Unaudited) March 31, 2007
Institutional Service shares ---------- --------------
- ----------------------------
Per Share Operating Performance:
(for a share outstanding throughout the period)
Net asset value, beginning of period...................... $ 1.00 $ 1.00
---------- -----------
Income from investment operations:
Net investment income.................................. 0.014 0.008
Net realized and unrealized gain(loss) on investments. -- --
---------- -----------
Total from investment operations....................... 0.014 0.008
---------- -----------
Less distributions from:
Dividends from net investment income................... (0.014) (0.008)
Net realized gain on investments....................... -- --
---------- -----------
Total Distributions.................................... (0.014) (0.008)
---------- -----------
Net asset value, end of period............................ $ 1.00 $ 1.00
========== ===========
Total Return.............................................. 1.41%(a) 0.84%(a)
Ratios/Supplemental Data
Net assets, end of period (000's)......................... $ 145,918 $ 41,817
Ratios to average net assets:
Expenses (net of fees waived) (b)...................... 1.00%(c) 1.00%(c)
Net investment income.................................. 2.80%(c) 2.65%(c)
Management and administration fees waived.............. 0.17%(c) 0.16%(c)
Distribution fees waived............................... 0.13%(c) 0.10%(c)
Transfer Agency Account fees waived.................... -- 0.03%(c)
(a) Unannualized
(b) Includes expenses paid indirectly
(c) Annualized
The accompanying notes are an integral part of these financial statements.
- -------------------------------------------------------------------------------
===============================================================================
Six Months Ended Commencement of Operations
September 30, 2007 March 19, 2006 through
(Unaudited) March 31, 2007
Advantage shares ---------- --------------
- ----------------
Per Share Operating Performance:
(for a share outstanding throughout the period)
Net asset value, beginning of period...................... $ 1.00 $ 1.00
---------- -----------
Income from investment operations:
Net investment income.................................. 0.014 0.011
Net realized and unrealized gain(loss) on investments.. -- --
---------- -----------
Total from investment operations....................... 0.014 0.011
---------- -----------
Less distributions from:
Dividends from net investment income................... (0.014) (0.011)
Net realized gain on investments....................... -- --
---------- -----------
Total Distributions.................................... 0.014 (0.011)
---------- -----------
Net asset value, end of period............................ $ 1.00 $ 1.00
========== ===========
Total Return.............................................. 1.40%(a) 1.09%(a)
Ratios/Supplemental Data
Net assets, end of period (000's)......................... $ 163,345 $ 136,546
Ratios to average net assets:
Expenses (net of fees waived) (b)...................... 1.02%(c) 1.02%(c)
Net investment income.................................. 2.78%(c) 2.65%(c)
Distribution fees waived............................... 0.17%(c) 0.16%(c)
Management and administration fees waived.............. 0.16%(c) 0.16%(c)
Distribution fees waived............................... 0.10%(c) 0.10%(c)
(a) Unannualized
(b) Include expenses paid indirectly
(c) Annualized
The accompanying notes are an integral part of these financial statements.
[THIS PAGE INTENTIONALLY LEFT BLANK.]
[THIS PAGE INTENTIONALLY LEFT BLANK.]
- -------------------------------------------------------------------------------
DAILY INCOME FUND
NOTES TO THE FINANCIAL STATEMENTS
(UNAUDITED)
===============================================================================
1. Summary of Accounting Policies
Daily Income Fund (the "Fund") is a, diversified, open-end management investment
company registered under the Investment Company Act of 1940. The 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"). Each portfolio has
five core classes of stock authorized, Institutional, Institutional Service,
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 Money Market Portfolio also consists of the money
market Xpress shares ("Xpress shares"). The Institutional Service, Investor,
Short Term Income, Retail, Advantage, and Xpress 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, Advantage, and Xpress 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
Xpress shares................... June 19, 2007 N/A N/A N/A
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.
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.
- -------------------------------------------------------------------------------
===============================================================================
1. Summary of Accounting Policies (continued)
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 and Xpress
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%
Xpress Shares............................... .25% .75%
For the period ended September 30, 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.............................. $-0- $-0- $183,850 $206,612
Administration fees..................................... -0- 301,387 76,604 86,088
Shareholder servicing fees-Institutional Service shares. 10,250 -0- N/A N/A
Distribution fees - Investor shares..................... 34,716 42,668 N/A N/A
Distribution fees - Short Term Income shares............ -0- 13,003 N/A 101,255
Distribution fees - Retail shares....................... 775,964 375 47,578 54,964
Distribution fees - Advantage shares.................... 2,632,466 N/A 185,622 111,868
Sub-Accounting fees - Advantage shares.................. 1,567,098 N/A 116,014 69,918
Sub-Accounting fees - Xpress shares..................... 99,120 N/A N/A N/A
Transfer agency fees - Institutional shares............. 32,144 -0- N/A N/A
Transfer agency fees - Pinnacle shares.................. 8,600 -0- N/A N/A
---------- -------- -------- --------
Total................................................... $5,160,358 $357,433 $609,668 $630,705
========== ======== ======== ========
The Manager and shareholder servicing agent have no right to recoup prior fee
waivers.
- -------------------------------------------------------------------------------
DAILY INCOME FUND
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
(UNAUDITED)
===============================================================================
2. Investment Management Fees and Other Transactions with Affiliates
(continued)
Fees are paid to Trustees who are unaffiliated 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 period ended September 30, 2007 these fees after waivers amounted to:
Money Market U.S. Treasury U.S. Government Municipal
Portfolio Portfolio Portfolio Portfolio
--------- --------- --------- ---------
Amount % Amount % Amount % Amount %
------- --- ------ --- ------- --- ------ ---
Institutional shares.......... $32,394 0.01% $67,247 0.02% $ 1 * $ 1 *
Institutional Service shares.. 25,912 0.02% 23,185 0.02% 1 * 1 *
Pinnacle shares............... 8,463 0.01% 4,266 0.02% N/A N/A
Investor shares............... 47,803 0.05% 42,645 0.05% N/A N/A
Short Term Income shares...... 57,516 0.05% 21,661 0.05% N/A 29,687 0.05%
Retail shares................. 284,335 0.05% 146 0.05% 18,594 0.05% 21,332 0.05%
-------- -------- ------- -------
Total...................... $456,423 $159,150 $18,596 $51,021
======== ======== ======= =======
o 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 September 30, 2007 the cash balance was ($1,366,029).
For the period ended September 30, 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.......................... $6,596 $ 15,419 $2,419 $3,031
====== ======== ====== ======
- -------------------------------------------------------------------------------
===============================================================================
4. Transactions in Shares of Beneficial Interest
At September 30, 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 Six Months Ended Year Ended
September 30, 2007 March 31, 2006
------------------- ----------------
Institutional Shares
- ---------------------
Sold................................ 1,605,736,121 3,532,193,281
Issued on reinvestment of dividends. 17,203,316 30,075,742
Redeemed............................ (1,899,275,219) (3,295,417,121)
-------------- --------------
Net increase (decrease)............. (276,335,782) 266,851,902
============== ==============
Institutional Service Shares
- -----------------------------
Sold................................ 860,521,174 2,353,647,274
Issued on reinvestment of dividends. 6,579,462 11,234,194
Redeemed............................ (916,527,475) (2,321,066,724)
-------------- --------------
Net increase (decrease)............. (49,426,839) 43,814,744
============== ==============
Commencement of Operations
November 28, 2006 through
Investor Shares March 31, 2007
- --------------- --------------
Sold................................ 386,204,807 326,218,371
Issued on reinvestment of dividends. 4,504,308 231,079
Redeemed............................ (351,332,838) (174,502,593)
------------- -------------
Net increase (decrease)............. 39,376,277 151,946,857
============= =============
Commencement of Operations
February 12, 2007 through
Short Term Income Shares March 31, 2007
- ------------------------ --------------
Sold................................ 1,038,165,408 216,561,971
Issued on reinvestment of dividends. 3,420,433 76,285
Redeemed............................ (851,462,283) (159,541,535)
-------------- -------------
Net increase (decrease)............. 190,123,558 57,096,721
============== =============
Commencement of Operations
November 28, 2006 through
Retail Shares March 31, 2007
- ------------- --------------
Sold................................ 2,352,965,813 1,938,862,432
Issued on reinvestment of dividends. 24,784,618 2,713,087
Redeemed............................ (1,908,323,736) (1,043,671,566)
-------------- --------------
Net increase (decrease)............. 469,426,695 897,903,953
============== ==============
Pinnacle Shares
- ----------------
Sold................................ 102,943,177 191,582,537
Issued on reinvestment of dividends. 4,401,232 7,811,634
Redeemed............................ (125,681,515) (163,048,227)
-------------- --------------
Net increase (decrease)............. (18,337,106) 36,345,944
============== ==============
Commencement of Operations
November 1, 2006 through
Advantage Shares March 31, 2007
- ----------------- --------------
Sold................................ 2,351,013,481 4,544,671,364
Issued on reinvestment of dividends. 70,809,057 34,760,496
Redeemed............................ (2,376,672,753) (1,465,843,369)
-------------- --------------
Net increase (decrease)............. 45,149,785 3,113,588,491
============== ==============
- -------------------------------------------------------------------------------
DAILY INCOME FUND
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
(UNAUDITED)
===============================================================================
4. Transactions in Shares of Beneficial Interest (continued)
Money Market Portfolio Commencement of Operations
June 19, 2007 through
September 30, 2007
------------------
Xpress Shares
- -------------
Sold................................ 1,936,578,682
Issued on reinvestment of dividends. 10,331,166
Redeemed............................ (417,721,550)
--------------
Net increase (decrease)............. 1,529,188,298
==============
U.S. Treasury Portfolio Six Months Ended Year Ended
September 30, 2007 March 31, 2007
------------------ --------------
Institutional Shares
- ----------------------
Sold................................ 2,160,239,315 3,095,014,636
Issued on reinvestment of dividends. 16,612,767 8,283,894
Redeemed............................ (2,226,760,434) (3,342,758,467)
-------------- --------------
Net increase (decrease)............. (49,908,352) (239,459,937)
============== ==============
Institutional Service Shares
Sold................................ 682,091,330 1,017,713,607
Issued on reinvestment of dividends. 5,358,848 6,373,235
Redeemed............................ (673,982,433) (1,079,293,656)
-------------- --------------
Net increase (decrease)............. 13,467,745 (55,206,814)
============== ==============
Commencement of Operations
February 21, 2007 through
Investor Shares March 31, 2007
- --------------- --------------
Sold................................ 374,692,824 281,725,704
Issued on reinvestment of dividends. 3,748,680 176,886
Redeemed............................ (323,790,291) (146,991,867)
------------- --------------
Net increase (decrease)............. 54,651,213 134,910,723
============= ==============
Commencement of Operations
November 2, 2006 through
Short Term Income Shares March 31, 2007
- ------------------------ --------------
Sold................................ 319,025,067 46,491,785
Issued on reinvestment of dividends. 1,492,092 266,519
Redeemed............................ (157,664,764) (24,094,981)
------------- --------------
Net increase (decrease)............. 162,852,395 22,663,323
============= ==============
Commencement of Operations
December 12, 2006 through
Retail Shares March 31, 2007
- ------------- --------------
Sold................................ 6,338,848 3,448,689
Issued on reinvestment of dividends. 11,731 4,406
Redeemed............................ (6,226,386) (3,081,550)
------------- --------------
Net increase (decrease)............. 124,193 371,545
============= ==============
Pinnacle Shares
- ----------------
Sold................................ 49,263,451 53,982,889
Issued on reinvestment of dividends. 1,005,264 1,572,612
Redeemed............................ (24,758,310) (44,432,493)
------------- --------------
Net increase (decrease)............. 25,510,405 11,123,008
============= ==============
- -------------------------------------------------------------------------------
===============================================================================
4. Transactions in Shares of Beneficial Interest (continued)
U.S. Government Portfolio
Commencement of Operations
Six Months Ended March 19, 2007 through
Institutional Shares (a) September 30, 2007 March 31, 2007
- ------------------------ ------------------ --------------
Sold................................ -0- 10,000
Issued on reinvestment of dividends. 255 -0-
Redeemed............................ -0- -0-
-------------- -----------
Net increase (decrease)............. 255 10,000
============== ===========
Commencement of Operations
October 30, 2006 through
Institutional Service Shares (a) March 31, 2007
- -------------------------------- --------------
Initial Investment made by IXIS (b). 35,000,000
Sold................................ -0- 10,000
Issued on reinvestment of dividends. 243 244,835
Redeemed............................ -0- (35,244,835)
-------------- -----------
Net increase (decrease)............. 243 10.000
============== ===========
Commencement of Operations
December 12, 2006 through
Retail Shares March 31, 2007
- ------------- --------------
Sold................................ 253,867,712 124,415,380
Issued on reinvestment of dividends. 1,580,276 101,389
Redeemed............................ (228,063,465) (67,465,599)
-------------- -----------
Net increase (decrease)............. 27,384,523 57,051,170
============== ===========
Commencement of Operations
November 2, 2007 through
Advantage Shares March 31, 2007
- ---------------- --------------
Sold................................ 371,808,913 302,636,615
Issued on reinvestment of dividends. 4,890,633 2,087,366
Redeemed............................ (236,530,566) (110,896,630)
-------------- -----------
Net increase (decrease)............. 140,168,980 193,827,351
============== ===========
- -------------------------------------------------------------------------------
DAILY INCOME FUND
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
(UNAUDITED)
===============================================================================
4. Transactions in Shares of Beneficial Interest (continued)
Municipal Portfolio
Commencement of Operations
Six Months Ended March 19, 2007 through
Institutional Shares (a) September 30, 2007 March 31, 2007
- ----------------------- ------------------ --------------
Sold................................ -0- 10,000
Issued on reinvestment of dividends. 180 -0-
Redeemed............................ -0- -0-
------------- -----------
Net increase (decrease)............. 180 10,000
============= ===========
Commencement of Operations
October 30, 2006 through
Institutional Service Shares (a) March 31, 2007
- -------------------------------- --------------
Initial Investment made by IXIS (b). 25,000,000
Sold................................ -0- 10,000
Issued on reinvestment of dividends. 168 117,810
Redeemed............................ -0- (25,117,810)
------------- -----------
Net increase (decrease)............. 168 10.000
============= ===========
Commencement of Operations
February 20, 2006 through
Short Term Income Shares March 31, 2007
- ------------------------ --------------
Sold................................ 863,601,640 98,421,212
Issued on reinvestment of dividends. 1,614,100 32,790
Redeemed............................ (828,109,365) (40,538,993)
------------- -----------
Net increase (decrease)............. 37,106,375 57,915,009
============= ===========
Commencement of Operations
December 8, 2006 through
Retail Shares March 31, 2007
- ------------- --------------
Sold................................ 363,292,503 146,464,053
Issued on reinvestment of dividends. 1,121,814 60,003
Redeemed............................ (260,312,654) (104,707,181)
------------- -----------
Net increase (decrease)............. 104,101,663 41,816,875
============= ===========
Commencement of Operations
November 2, 2007 through
Advantage Shares March 31, 2007
- ---------------- --------------
Sold................................ 339,075,898 310,727,491
Issued on reinvestment of dividends. 1,980,345 1,009,357
Redeemed............................ (314,257,344) (175,190,956)
------------- -----------
Net increase (decrease)............. 26,798,899 136,545,892
============= ===========
(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.
(b) 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.
- -------------------------------------------------------------------------------
===============================================================================
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.
The Fund adopted Financial Accounting Standards Board ("FASB")
Interpretation No. 48, Accounting for Uncertainty in Income Taxes, an
interpretation of FASB Statement No. 109 ("FIN 48"). FIN 48 requires the
Management to determine whether a tax position of the Fund is more likely
than not to be sustained upon examination by the applicable taxing
authority, including resolution of any related appeals or litigation
processes, based on the technical merits of the position. The tax benefit to
be recognized is measured as the largest amount of benefit that is greater
than fifty percent likely of being realized upon ultimate settlement which
could result in the Fund recording a tax liability that would reduce net
assets. FIN 48 must be applied to all existing tax positions upon initial
adoption and the cumulative effect, if any, is to be reported as an
adjustment to net assets.
Based on its analysis, the Management has determined that the adoption of
FIN 48 did not have an impact to the Fund's financial statements upon
adoption. However, the Management's conclusions regarding FIN 48 may be
subject to review and adjustment at a later date based on factors including,
but not limited to, further implementation guidance expected from the FASB,
and on-going analyses of tax laws, regulations and interpretations thereof.
6. New Accounting Pronouncements
In September 2006, FASB issued Statement of Financial Accounting Standards
No. 157, Fair Value Measurements ("SFAS157"). SFAS 157 defines fair value,
establishes a framework for measuring fair value, and expands disclosures
about fair value measurements. SFAS 157 applies to reporting periods
beginning after November 15, 2007. Management is currently evaluating the
impact the adoption of SFAS 157 will have on the Fund's financial
statements.
7. Subsequent Event
On November 5, 2007, a meeting of the shareholders convened to approve the
merger of Cortland Trust, Inc., Daily Tax Free Income Fund, Inc. and Short
Term Income Fund, Inc. into Daily Income Fund. The vote was passed and the
merger became effective on November 19, 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%
[THIS PAGE INTENTIONALLY LEFT BLANK.]
- --------------------------------------------
The report is submitted for the general
information of the shareholder of the
Fund. It is not authorized for distribution
to prospectives 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 9/07S
Item 2: CODE OF ETHICS
Not Applicable (disclosure required in annual report on N-CSR only).
Item 3: AUDIT COMMITTEE FINANCIAL EXPERT
Not Applicable (disclosure required in annual report on N-CSR only).
Item 4: PRINCIPAL ACCOUNTANT FEES AND SERVICES
Not Applicable (disclosure required in annual report on N-CSR only).
Item 5: AUDIT COMMITTEE OF LISTED REGISTRANTS
Not applicable.
Item 6: SCHEDULE OF INVESTMENTS
Schedule of Investments in securities of unaffiliated issuers is included under
Item 1.
Item 7: DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES
Not applicable.
Item 8: PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT
COMPANY AND AFFILIATED PURCHASERS
Not applicable.
Item 9: SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
There were no material changes to the procedures by which shareholders may
recommend nominees to the registrant's board of directors that were implemented
after the registrant last provided disclosure in response to the requirements of
Item 7(d)(2)(ii)(G) of Schedule 14A, or this Item 9.
Item 10: Controls and Procedures
(a) The registrant's Principal Executive Officer and Principal Financial
Officer have evaluated the design and operation of the registrant's
disclosure controls and procedures within 90 days of this filing and have
concluded that the registrant's disclosure controls and procedures were
effective in ensuring that information required to be disclosed by the
registrant in this Form N-CSR was recorded, processed, summarized and
reported on a timely basis.
(b) There were no changes in the registrant's internal controls over financial
reporting that occurred during the second fiscal quarter of the period
covered by this report that have materially affected, or are reasonably
likely to affect, the registrant's internal controls over financial
reporting.
Item 11: EXHIBITS
(a)(1) Not applicable (disclosure required in annual report on N-CSR only).
(a)(2) Certifications of Principal Executive Officer and Principal Financial
Officer, under Rule 30a-2 of the Investment Company Act of 1940.
(a)(3) Not applicable.
(b) Certifications of Principal Executive Officer and Principal Financial
Officer, under Section 906 of the Sarbanes-Oxley Act of 2002 and 18 U.S.C.
ss.1350.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) Daily Income Fund
By (Signature and Title)* /s/ Christine Manna
Christine Manna, Secretary
Date: December 7, 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
Steven W. Duff, President
Date: December 7, 2007
By (Signature and Title)* /s/ Anthony Pace
Anthony Pace, Treasurer
Date: December 7, 2007
* Print the name and title of each signing officer under his or her signature.