As filed with the Securities and Exchange Commission on June 13, 2008
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: March 31, 2008
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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Annual
Report
March 31, 2008
[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 48
Schedule of Investments 50
Expense Chart 5 Statement of Assets and Liabilities 61
Schedule of Investments 7 Statement of Operations 62
Statement of Assets and Liabilities 2 Statements of Changes in Net Assets 63
Statement of Operations 4 Financial Highlights 64
Statements of Changes in Net Assets 25
Financial Highlights 26 Notes to Financial Statements 68
U.S Treasury Portfolio Report of Independent Registered Public
Accounting Firm 77
Expense Chart 30
Schedule of Investments 32 Additional Information 78
Statement of Assets and Liabilities 34
Statement of Operations 35 Board Approval of Investment Management Contract 79
Statements of Changes in Net Assets 36
Financial Highlights 37 Proxy Results 82
U.S. Government Portfolio Trustees and Officers Tables 86
Expense Chart 40
Schedule of Investments 41
Statement of Assets and Liabilities 43
Statement of Operations 44
Statements of Changes in Net Assets 45
Financial Highlights 46
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DAILY INCOME FUND
SHAREHOLDER LETTER
===============================================================================
Dear Shareholder:
We are pleased to present the annual report of Daily Income Fund (the "Fund")
for the year ended March 31, 2008. As of March 31, 2008:
The Money Market Portfolio had net assets of $6,968,153,278.
The U.S. Treasury Portfolio had net assets of $1,412,681,309.
The U.S. Government Portfolio had net assets of $821,993,885.
The Municipal Portfolio had net assets of $489,970,529.
We thank you for your support and look forward to continuing to serve your cash
management needs.
Sincerely,
/s/ Michael P. Lydon
Michael P. Lydon
President
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DAILY INCOME FUND
MONEY MARKET PORTFOLIO
EXPENSE CHART
FOR THE SIX MONTHS ENDED MARCH 31, 2008
(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 October 1, 2007 through March 31, 2008.
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 Value 10/01/07 03/31/08 During the period Expense Ratio *
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Actual $1,000.00 $1,022.30 $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 Beginning Account Ending Account Value Expenses Paid Annualized
Value 10/01/07 03/31/08 During the Period Expense Ratio *
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Actual $1,000.00 $1,021.00 $2.27 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 Beginning Account Ending Account Value Expenses Paid Annualized
Value 10/01/07 03/31/08 During the Period Expense Ratio *
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Actual $1,000.00 $1,020.00 $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 Beginning Account Ending Account Value Expenses Paid Annualized
Value 10/01/07 03/31/08 During the Period Expense Ratio *
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Actual $1,000.00 $1,018.50 $4.74 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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Retail Shares Beginning Account Ending Account Value Expenses Paid Annualized
Value 10/01/07 03/31/08 During the Period Expense Ratio *
---------------------------------------------------------------------------------------------------------------------------
Actual $1,000.00 $1,018.20 $5.05 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 Value 10/01/07 03/31/08 During the Period Expense Ratio *
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Actual $1,000.00 $1,018.10 $5.15 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 10/01/07 03/31/08 During the Period Expense Ratio *
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Actual $1,000.00 $1,017.00 $6.30 1.25%
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Hypothetical (5% return before $1,000.00 $1,018.75 $6.31 1.25%
expenses)
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* Expenses are equal to the Fund's annualized expense ratios multiplied by
the average account value over the period (October 1, 2007 through March
31, 2008), multiplied by 183/366 (to reflect the most recent fiscal
half-year).
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DAILY INCOME FUND
MONEY MARKET PORTFOLIO
SCHEDULE OF INVESTMENTS
MARCH 31, 2008
===============================================================================
Face Maturity Current Value
Amount Date Coupon (1) (Note 1)
------------ ------ ---------- --------
Commercial Paper (0.68%)
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$ 17,237,000 Tennessee School Board Authority - Series B 04/10/08 2.95% $ 17,237,000
30,000,000 Vermont EDA Economic Development Capitalization Program-Series A
LOC Calyon 06/10/08 2.88 30,000,000
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47,237,000 Total Commercial Paper 47,237,000
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Domestic Certificates of Deposit (6.46%)
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$ 200,000,000 American Express Centurian Bank 04/09/08 2.91% $ 200,000,000
100,000,000 HSBC Bank USA 05/12/08 4.25 100,000,000
50,000,000 Wilmington Trust Company 05/12/08 5.05 50,000,000
50,000,000 Wilmington Trust Company 05/20/08 2.93 50,000,000
50,000,000 Wilmington Trust Company 07/10/08 4.24 50,000,000
-------------- -------------
450,000,000 Total Domestic Certificates of Deposit 450,000,000
-------------- -------------
Eurodollar Certificates of Deposit (12.20%)
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$ 75,000,000 Banco Santander Central Hispano, SA 04/07/08 5.16% $ 75,000,122
100,000,000 Bank of Scotland 06/10/08 4.90 100,000,000
200,000,000 Credit Agricole S.A. 04/11/08 4.32 200,001,099
100,000,000 Credit Industriel et Commercial 05/06/08 3.14 100,000,000
75,000,000 Credit Industriel et Commercial 05/07/08 3.20 75,000,000
100,000,000 Ulster Bank Limited 04/08/08 4.63 100,000,096
100,000,000 Ulster Bank Limited 05/06/08 3.07 100,000,482
100,000,000 Unicredito Italiano SPA 05/06/08 3.14 100,000,000
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850,000,000 Total Eurodollar Certificates of Deposit 850,001,799
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Floating Rate Securities (2.87%)
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$ 35,000,000 BNP Paribas ((2)) 08/07/08 3.13% $ 34,971,380
50,000,000 Goldman Sachs & Co. ((3)) 04/16/08 2.85 50,000,000
50,000,000 Harris Bank Floater ((4)) 08/18/08 3.07 50,000,000
25,000,000 JPMorgan Chase & Co. Extendable Floating Rate Note ((5)) 12/11/08 2.98 25,000,000
40,000,000 Merrill Lynch & Co. Extendible Floater ((6)) 12/17/08 2.91 40,000,000
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200,000,000 Total Floating Rate Securities 199,971,380
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Foreign Commercial Paper (4.82%)
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$ 50,000,000 Anglo Irish Bank Corporation PLC 04/11/08 4.43% $ 49,939,167
60,000,000 Anglo Irish Bank Corporation PLC 05/05/08 3.07 59,826,033
150,000,000 Anglo Irish Bank Corporation PLC 05/12/08 3.13 149,470,416
77,880,000 Societe Generale North America 07/11/08 3.95 77,034,418
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337,880,000 Total Foreign Commercial Paper 336,270,034
-------------- ------------
Letter of Credit Commercial Paper (2.17%)
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$ 52,000,000 Dean Health Systems, Inc.
LOC Marshall & Ilsley Bank 04/03/08 3.06% $ 51,991,189
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)
MARCH 31, 2008
===============================================================================
Face Maturity Current Value
Amount Date Coupon (1) (Note 1)
------------ ------ ---------- --------
Letter of Credit Commercial Paper (Continued)
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$ 100,000,000 ICICI Bank Ltd.
LOC Fortis Bank 08/04/08 3.09% $ 98,940,972
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152,000,000 Total Letter of Credit Commercial Paper 150,932,161
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Loan Participations (2.53%)
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$ 34,000,000 Army & Air Force Exchange Service with JPMorgan Chase as agent 04/01/08 3.05% $ 34,000,000
55,000,000 Army & Air Force Exchange Service with JPMorgan Chase as agent 04/29/08 3.13 55,000,000
87,000,000 AXA Equitable Life Insurance Company with JPMorgan Chase as
agent (7) 06/23/08 2.68 87,000,000
-------------- -------------
176,000,000 Total Loan Participation 176,000,000
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Bank Notes (2.22%)
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$ 5,015,000 Michigan Public Educational Facilities Authority - Series C
LOC Bank of New York 08/22/08 5.30% $ 5,015,000
150,000,000 Regions Bank 05/09/08 4.36 150,000,780
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155,015,000 Total Bank Notes 155,015,780
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Repurchase Agreement (2.15%)
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$ 150,000,000 Annaly Mortgage Management, purchased on 03/31/08, repurchase
proceeds at maturity $150,011,042 (Collateralized by $216,798,527
FMAC, 3.42% to 6.00%, due 06/15/32 to 08/15/36, value $57,690,210,
FNMA,5.50% to 6.00%, due 07/25/29 to 03/25/37, value $99,809,790) 04/01/08 2.65% $ 150,000,000
-------------- -------------
150,000,000 Total Repurchase Agreement 150,000,000
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Time Deposit (10.32%)
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$ 15,000,000 Barclays Bank PLC 04/01/08 2.00% $ 15,000,000
80,000,000 Barclays Bank PLC 04/01/08 2.75 80,000,000
119,000,000 BNP Paribas 04/01/08 2.75 119,000,000
175,000,000 BNP Paribas 04/01/08 3.00 175,000,000
45,000,000 National Bank of Canada 04/01/08 2.85 45,000,000
129,000,000 Royal Bank of Canada 04/01/08 2.50 129,000,000
156,000,000 Royal Bank of Canada 04/01/08 2.82 156,000,000
-------------- -------------
719,000,000 Total Time Deposit 719,000,000
-------------- -------------
Variable Rate Demand Instruments ((8)) (14.76%)
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$ 2,000,000 1212 Jackson LLC - Series 2004
LOC Fifth Third Bank 09/01/24 3.85% $ 2,000,000
1,875,000 1800 Indian Wood Ltd. - Series 2005
Loc Fifth Third Bank 04/01/26 3.85 1,875,000
1,695,000 2150 Investment Company - Series 1997
LOC Fifth Third Bank 02/01/17 3.85 1,695,000
1,795,000 361 Summit Boulevard, LLC - Series 2003
LOC First Commercial Bank 05/01/28 2.90 1,795,000
4,240,000 A&M Associates Project - Series 2002
LOC U.S. Bank, N.A. 12/01/34 3.51 4,240,000
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 ((8)) (Continued)
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$ 1,925,000 Alatrade Foods LLC - Series 2004
LOC Amsouth Bank 12/01/14 2.93% $ 1,925,000
2,000,000 Albany, NY Industrial Development Agency Civic Facilities RB
(Albany Medical Center Project) - Series 2006B
LOC Royal Bank of Scotland 05/01/35 3.18 2,000,000
5,500,000 Allegheny County, PA IDA (Union Electric Steel Corporation)
LOC PNC Bank, N.A 11/01/27 2.78 5,500,000
2,800,000 Allied Services, Ltd. - Series 2006
LOC Fifth Third Bank 03/01/21 3.85 2,800,000
2,250,000 Alta Mira LLC - Series 2004
LOC Marshall & Ilsley Bank 11/01/34 3.60 2,250,000
800,000 Atlantic Tool & Die Company - Series 1996
LOC Key Bank, N.A. 12/01/11 3.50 800,000
1,670,000 Atlantic Tool & Die Company - Series 2002
LOC Key Bank, N.A. 03/01/17 3.50 1,670,000
1,788,000 Aztec Properties, LLC
LOC U.S. Bank, N.A. 08/01/20 3.50 1,788,000
1,665,000 Baird Properties, LLC
LOC Columbus Bank & Trust Company 12/01/26 3.00 1,665,000
5,493,000 Baldwin County Sewer Service, LLC - Series 2005
LOC Amsouth Bank 05/01/25 2.93 5,493,000
1,160,000 Bank of Kentucky Building, LLC - Series 1999
LOC U.S. Bank, N.A. 12/01/19 3.50 1,160,000
100,000 Barnes & Thornburg LLP - Series 2003
LOC Fifth Third Bank 07/01/08 3.85 100,000
1,600,000 Barnes & Thornburg LLP - Series 2005
LOC Fifth Third Bank 12/01/55 3.85 1,600,000
7,259,000 BB Auto Land of Roswell, LLC - Series 2003A
LOC Bank of North Georgia 05/01/23 3.00 7,259,000
2,205,000 BBC, LLC - Series 2000
LOC Columbus Bank & Trust Company 11/01/20 2.78 2,205,000
7,935,000 Beacon Orthopedics Facilities, LLC - Series 2004
LOC Fifth Third Bank 02/01/24 3.50 7,935,000
2,760,000 Bennett Realty LLC - Series 2003
LOC Fifth Third Bank 04/01/23 3.85 2,760,000
720,000 Berkeley Square Retirement Center - Series 1998A
LOC Fifth Third Bank 02/01/13 3.50 720,000
830,000 Big Brothers Big Sisters Association of Greater Columbus
- Series 2000
LOC Fifth Third Bank 12/01/20 3.91 830,000
3,600,000 Bluegrass Wireless, LLC
LOC Fifth Third Bank 02/01/12 3.85 3,600,000
3,025,000 Bob Sumerel Tire Co., Inc.
LOC Fifth Third Bank 04/01/19 3.85 3,025,000
5,680,000 Bonita Community Health Center, Inc.
LOC Fifth Third Bank 12/01/31 3.65 5,680,000
780,000 Briarwood Investments, LLC - Series 2003
LOC Federal Home Loan Bank of Cincinnati 04/01/23 3.50 780,000
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)
MARCH 31, 2008
===============================================================================
Face Maturity Current Value
Amount Date Coupon (1) (Note 1)
------------ ------ ---------- --------
Variable Rate Demand Instruments ((8)) (Continued)
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$ 9,875,000 Bridge Park Real Estate, LLC
LOC Fifth Third Bank 12/01/27 3.85% $ 9,875,000
2,600,000 Brookville Enterprises - Series 2004
LOC Fifth Third Bank 10/01/25 3.85 2,600,000
1,750,000 Burke County, GA Development Authority IDRB
(Lichtenberg Holdings II, LLC Project) - Series 2002
LOC JPMorgan Chase Bank, N.A. 01/01/13 2.77 1,750,000
125,000 Burton I. Saltzman (Dave's Supermarket, Inc. Project)
LOC U.S. Bank, N.A. 09/01/08 3.66 125,000
1,210,000 Butler County Surgical Properties LLC - Series 2003
LOC Fifth Third Bank 03/01/23 3.85 1,210,000
2,895,000 Butler County Surgical Properties LLC - Series 2005
LOC Fifth Third Bank 07/01/25 3.85 2,895,000
2,925,000 Bybee Food LLC
LOC Key Bank, N.A. 11/01/26 3.50 2,925,000
4,880,000 Capital Markets Access Company, LLC.
(Cape Coral Medical & Surgical Suites, LLC Project)
LOC SunTrust Bank 08/01/20 2.80 4,880,000
318,000 Capital One Funding Corporation
Floating Rate Option Notes - Series 1997 D
LOC JPMorgan Chase Bank, N.A. 07/02/18 3.00 318,000
3,125,000 Carmichael Imaging, LLC - Series 2002
LOC Regions Bank 11/01/10 2.80 3,125,000
1,800,000 CEGW, Inc
LOC PNC Bank, N.A. 03/31/09 3.45 1,800,000
965,000 Central Michigan Inns, LLC (Pohlcat Inc) - Series 2000A
LOC Wachovia Bank, N.A. 04/01/30 3.17 965,000
7,900,000 CFM International Inc. - Series 1999A
Guaranteed by General Electric Company 01/01/10 2.95 7,900,000
4,300,000 Charles K. Blandin Foundation - Series 2004 ((9))
LOC Wells Fargo Bank, N.A. 05/01/19 3.10 4,300,000
475,000 Chuo Mubea Suspension Component Company - Series 2004
LOC Fifth Third Bank 01/01/11 3.85 475,000
22,000,000 Church of the Highlands, Inc.
LOC Amsouth Bank 01/01/23 2.80 22,000,000
2,615,000 Cinnamon Properties, Inc.
LOC U.S. Bank, N.A. 04/01/20 3.50 2,615,000
2,060,000 Cirrus Development Ltd. - Series 1999
LOC U.S. Bank, N.A. 05/01/14 3.50 2,060,000
11,315,000 City of Auburn, AL
Industrial Development & Infrastructure RB - Series 2004A
LOC Allied Irish Bank PLC 05/01/24 2.78 11,315,000
5,200,000 City of Florence, KY IDRB (Fifth Third Processing Center
Project) - Series 2005A
LOC Fifth Third Bank 04/15/10 4.05 5,200,000
5,000,000 City of Marion, IN EDRB (Dolgencorp, Inc Project) - Series 2005A
LOC Key Bank, N.A. 02/01/35 3.50 5,000,000
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 ((8)) (Continued)
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$ 2,000,000 CMW Real Estate, LLC - Series 2000
LOC Firstar Bank, National Association 06/01/20 3.70% $ 2,000,000
3,900,000 Cobb County, GA Development Authority RB
(Prime Power Project) - Series 2006
LOC Bank of North Georgia 01/01/32 2.90 3,900,000
1,065,000 Cole Investments LLC
LOC Fifth Third Bank 07/01/19 3.85 1,065,000
3,620,000 Columbus Area, Inc. - Series 2004
LOC Key Bank 07/01/24 3.50 3,620,000
2,850,000 Columbus, GA Development Authority RB
(Columbus Economic Development Corporation/
Bricken Financial Project) - Series 2006
LOC Wachovia Bank, N.A. 02/01/26 3.17 2,850,000
5,885,000 Columbus, GA Development Authority RB
(Four J.S. Family, LLP Project) - Series 2000
LOC Columbus Bank & Trust Company 09/01/20 2.90 5,885,000
10,165,000 Columbus, GA Development Authority RB
(Four J.S. Family, LLP Project) - Series 2002
LOC Columbus Bank & Trust Company 12/01/22 2.95 10,165,000
3,715,000 Columbus, GA Development Authority RB
(Riverton Ford Inc. Project) - Series 2000
LOC Columbus Bank & Trust Company 04/01/20 2.95 3,715,000
2,925,000 Columbus, GA Development Authority RB
(Rivertown Pediatric Project) - Series 2003
LOC Columbus Bank & Trust Company 05/01/23 2.90 2,925,000
7,000,000 Columbus, GA Development Authority RB
(Sunbelt - SCG, LLC Project) - Series 2007
LOC Regions Bank 09/01/27 2.75 7,000,000
6,000,000 Columbus, GA Development Authority RB
(Sunbelt - TCG, LLC Project) - Series 2007
LOC Regions Bank 09/01/27 2.75 6,000,000
9,935,000 Columbus, GA Development Authority RB
(Woodmont Properties, LLC
Greystone Farms II Project) - Series 2006
LOC Columbus Bank & Trust Company 02/01/26 2.90 9,935,000
805,000 Community Limited Care Dialysis Center - Series 1997
LOC Fifth Third Bank 12/01/12 3.50 805,000
1,240,000 Consolidated Equities, LLC - Series 1995
LOC Fifth Third Bank 12/01/25 3.85 1,240,000
8,995,000 Country Club of the South - Series 2002
LOC Bank of North Georgia 12/01/31 2.90 8,995,000
305,000 Crownover Lumber Company, Inc. - Series 1997
LOC Fifth Third Bank 09/01/08 3.50 305,000
6,215,000 Cubba Capital II, LLC - Series 2006A
Collateralized by Federal Home Loan Bank 03/01/55 3.50 6,215,000
5,000,000 Cubba Capital II, LLC - Series 2006B
LOC Charter One Bank 09/01/56 3.50 5,000,000
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)
MARCH 31, 2008
===============================================================================
Face Maturity Current Value
Amount Date Coupon (1) (Note 1)
------------ ------ ---------- --------
Variable Rate Demand Instruments ((8)) (Continued)
-----------------------------------------------------------------------------------------------------------------------------------
$ 3,800,000 D&G Conduit LLC
LOC Amsouth Bank 10/01/23 2.78% $ 3,800,000
6,925,000 Daniel Land Company - Series 2004
LOC Columbus Bank & Trust Company 09/01/29 2.90 6,925,000
7,200,000 Dayton Freight Lines, Inc.
LOC Fifth Third Bank 12/01/45 3.85 7,200,000
1,525,000 D.E.D.E. Realty - Series 1998
LOC Fifth Third Bank 12/01/11 3.85 1,525,000
2,135,000 Deerfoot Market Place, LLC - Series 2002
LOC First Commercial Bank 03/01/28 3.00 2,135,000
1,720,000 Delta Capital LLC - Series 1996B
LOC JPMorgan Chase Bank, N.A. 10/01/26 3.60 1,720,000
300,000 Derby Fabricating LLC
LOC Fifth Third Bank 06/01/24 3.85 300,000
1,875,000 Devin F. & Janis L. McCarthy - Series 1997
LOC U.S. Bank, N.A. 07/01/17 3.50 1,875,000
9,250,000 D.G.Y. Real Estate LP - Series 2000A
LOC PNC Bank, N.A. 05/01/20 3.45 9,250,000
1,935,000 Eagles Landing, LLC
LOC Regions Bank 12/01/26 2.78 1,935,000
2,600,000 East Kentucky Network, LLC
LOC Fifth Third Bank 02/01/16 3.85 2,600,000
2,870,000 Eckert Seamans Cherin & Mellott, LLC - Series 2000
LOC PNC Bank, N.A. 01/01/15 2.83 2,870,000
6,965,000 El Dorado Enterprises of Miami, Inc. - Series 2000
LOC Wachovia Bank, N.A. 06/01/20 3.92 6,965,000
8,330,000 Elsinore Properties LLP - Series 1999
LOC Fifth Third Bank 01/01/29 3.85 8,330,000
2,225,000 Erie County, NY IDA RB
(Niagara-Maryland LLC Project) - Series 2003
LOC Manufacturers and Traders Trust Co. 06/01/23 3.18 2,225,000
1,000,000 Falls Village Realty, LLC - Series 2004
LOC Fifth Third Bank 12/01/29 3.85 1,000,000
1,805,000 Fannin & Fannin LLC
LOC Fifth Third Bank 12/01/24 3.85 1,805,000
3,290,000 FE, LLC - Series 1998A
LOC Fifth Third Bank 04/01/28 3.65 3,290,000
4,762,924 Federal Home Loan Mortgage Corporation
Class A Certificates - Series M006 10/15/45 2.68 4,762,924
1,415,000 Findlay Evangelical Presbyterian Church - Series 2004
LOC Fifth Third Bank 11/01/30 3.85 1,415,000
2,690,000 Fiore Capital LLC - Series 2005A
LOC Marshall & Ilsley Bank 08/01/45 3.30 2,690,000
1,290,000 First Park Place LLC
LOC Fifth Third Bank 12/01/19 3.85 1,290,000
10,680,000 Flint River Services, Inc. - Series 2005
LOC Columbus Bank & Trust Company 01/01/30 2.90 10,680,000
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 (8) (Continued)
-----------------------------------------------------------------------------------------------------------------------------------
$ 14,745,000 Ft. Northport, LLC - Series 2004
LOC Regions Bank 12/01/31 2.80% $ 14,745,000
17,000,000 Fuller Road Management Corp. (Nanofab East Project)- Series 2007
LOC Key Bank, N.A. 07/01/37 3.33 17,000,000
1,005,000 G&J Land Management - Series 1996
LOC Fifth Third Bank 12/01/17 3.50 1,005,000
4,045,000 G&J Properties II, LLC - Series 2002
LOC Royal Bank of Scotland 09/01/23 3.85 4,045,000
3,260,000 G&L Manufacturing, Inc.
LOC Fifth Third Bank 07/01/20 3.85 3,260,000
3,075,000 Gardner Publications - Series 2000
LOC Fifth Third Bank 10/01/10 3.85 3,075,000
1,390,000 Garfield Investment Group
LOC Fifth Third Bank 07/01/28 3.85 1,390,000
10,590,000 Gastro Partners Land Company, LLC - Series 2005
LOC Union Planters Bank 03/01/35 2.78 10,590,000
1,060,000 GCG Portage L.L.C.
LOC Old Kent Bank & Trust Company 02/01/26 3.60 1,060,000
1,500,000 Genesee County, MI Taxable Obligation Notes 11/01/08 3.75 1,500,000
7,900,000 Genoa Medical Development, LLC
LOC Fifth Third Bank 12/01/45 3.85 7,900,000
725,000 Gilead Friends Church - Series 2002
LOC Fifth Third Bank 10/01/17 3.85 725,000
2,590,000 GMC Financing LLC, LLC - Series 2005
LOC Federal Home Loan Bank 06/01/30 2.77 2,590,000
1,255,000 Goson Project - Series 1997
Guaranteed by Federal Home Loan Bank 11/01/17 3.95 1,255,000
2,520,000 Governor's Village LLC - Series 2000
LOC Fifth Third Bank 03/01/20 3.85 2,520,000
5,550,000 Graf Brothers Flooring, Inc. - Series 2005
LOC Fifth Third Bank 05/01/20 3.85 5,550,000
635,000 Graves Lumber Co. Project - Series 2000
Guaranteed by Federal Home Loan Bank of Cincinnati 11/01/10 3.95 635,000
1,305,000 Great Expectations Ltd. (Bass Chevrolet) - Series 1996
LOC Fifth Third Bank 07/01/17 3.60 1,305,000
1,100,300 Gutwein & Co., Inc. and Gutwein Properties LLC - Series 2004
LOC Fifth Third Bank 12/01/24 3.85 1,100,300
1,270,000 HCH, LLC - Series 2000
LOC Key Bank, N.A. 08/01/15 3.50 1,270,000
1,063,000 HCS & DJS Leasing - Series 2004
LOC Fifth Third Bank 06/01/34 3.85 1,063,000
3,165,000 Healtheum, LLC - Series 2004
LOC Wells Fargo, N.A. 11/01/29 2.67 3,165,000
2,200,000 Henderson, OH Regional Authority
LOC Fifth Third Bank 07/01/23 3.85 2,220,200
14,446,200 Herman & Kettle Capital, LLC - Series 2005 (9)
LOC Fifth Third Bank 06/01/55 3.90 14,446,200
The accompanying notes are an integral part of these financial statements.
-------------------------------------------------------------------------------
DAILY INCOME FUND
MONEY MARKET PORTFOLIO
SCHEDULE OF INVESTMENTS (CONTINUED)
MARCH 31, 2008
===============================================================================
Face Maturity Current Value
Amount Date Coupon (1) (Note 1)
------------ ------ ---------- --------
Variable Rate Demand Instruments ((8)) (Continued)
-----------------------------------------------------------------------------------------------------------------------------------
$ 1,755,000 HFA of Lee County, FL MHRB
(University Club Apartments) - Series 2002B
Guaranteed by Federal National Mortgage Association 05/15/35 3.25% $ 1,755,000
6,865,000 Holland- Sheltair Aviation Funding, LLC - Series 2005 B4
LOC Bank of New York Mellon 05/01/35 3.29 6,865,000
1,700,000 Hoosier Stamping Manufacturing Corp. - Series 2004
LOC Fifth Third Bank 07/01/36 3.85 1,700,000
810,000 Hope Realty, Ltd. & Harmony Realty, Ltd. (Kurtz Bros., Inc.)
- Series 2000
LOC Key Bank, N.A. 08/01/15 3.50 810,000
2,785,000 Hostun LLC - Series 2004
LOC U.S. Bank, N.A. 12/01/27 3.90 2,785,000
2,815,000 Hudson Toyota and Hyundai Realty LLC - Series 2003
LOC Fifth Third Bank 04/01/23 3.85 2,815,000
1,500,000 IHA Capital Development Corp
LOC Fifth Third Bank 07/01/28 3.85 1,500,000
600,000 Illinois Development Finance Authority
(Harbortown Industry Inc. Project) - Series 2000
LOC LaSalle National Bank, N.A. 12/01/20 2.85 600,000
900,000 Indian Creek Christian Church Inc.
LOC Fifth Third Bank 12/01/55 3.85 900,000
18,870,000 Inter Mountain Cable, Inc - Series 2006
LOC Fifth Third Bank 12/01/21 3.85 18,870,000
1,562,500 IOP Properties LLC
LOC Fifth Third Bank 04/01/44 3.85 1,562,500
1,200,000 Jacksons Food Stores, Inc. - Series 2006
LOC Key Bank, N.A. 03/01/16 3.50 1,200,000
950,000 James B. Krewatch & Marden H. Krewatch
Revocable Living Trust - Series 2005
LOC Fifth Third Bank 11/01/25 3.85 950,000
3,950,000 Jeff Wyler Automotive Family, Inc.
LOC U.S. Bank, N.A. 01/02/26 3.50 3,950,000
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 3.85 1,240,000
1,830,000 Keating Meuthing Klekamp
LOC Fifth Third Bank 11/01/24 3.85 1,830,000
2,600,000 Kenwood County Club, Incorporated - Series 2005
LOC U.S. Bank, N.A. 12/01/15 3.50 2,600,000
2,903,000 KFDT LP - Series 2005
LOC Fifth Third Bank 04/01/35 3.85 2,903,000
2,070,000 Kingston Healthcare Company - Series 1997A
LOC Fifth Third Bank 11/01/17 3.50 2,070,000
1,610,000 Kingston Healthcare Company - Series 1998A
LOC Fifth Third Bank 03/01/18 3.50 1,610,000
4,515,000 Kingston Healthcare Corporation
LOC Fifth Third Bank 08/01/25 3.65 4,515,000
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 ((8)) (Continued)
-----------------------------------------------------------------------------------------------------------------------------------
$ 700,000 Kit Carson County, CO Agricultural Development RB
(Midwest Farms, LLC) - Series 1997
LOC Wells Fargo Bank, N.A. 06/01/27 3.10% $ 700,000
3,875,000 Kool Capital, LLC
LOC Michigan National Bank 04/01/29 3.97 3,875,000
1,950,000 L3 Corporation - Series 2002
LOC Fifth Third Bank 11/01/17 3.85 1,950,000
4,400,000 Lakeland Income Properties, LLC - Series 2004
LOC Federal Home Loan Bank 04/01/29 2.77 4,400,000
4,400,000 Lake Mary Bay Limited Partnership - Series 2005
LOC Amsouth Bank 03/01/25 2.93 4,400,000
2,295,000 Landmark Church of Christ - Series 2005
LOC Columbus Bank & Trust Company 04/01/20 2.95 2,295,000
4,795,000 Laurel County, KY Industrial Building RB
(Consolidated Biscuit Company Project)
LOC Fifth Third Bank 03/01/15 3.70 4,795,000
1,810,000 Lauren Company, LLC - Series 2003
LOC Wells Fargo Bank, N.A. 07/01/33 2.77 1,810,000
270,000 Lee County, FL MHRB (Crossings at Cape Coral Apartments
Projects) - Series 1999 B
LOC SunTrust Bank 06/01/14 3.20 270,000
6,610,000 Lee Family Limited Partnership
Collateralized by Federal Home Loan Bank 06/01/34 3.92 6,610,000
1,505,000 Le Sportsac Inc. - Series 2005
LOC Fifth Third Bank 11/01/14 3.85 1,505,000
19,440,000 Lexington Financial Services, LLC Health Care RB - Series 2001
LOC LaSalle National Bank, N.A. 02/01/26 2.70 19,440,000
1,055,000 Louisiana Endoscopy Center, Inc.
LOC Union Planters Bank 03/01/35 2.78 1,055,000
470,000 LRC - B Wadsworth Investors, Ltd. - Series 1997
LOC U.S. Bank, N.A. 09/01/17 3.50 470,000
1,000,000 LRC Meadows Investor LLC
LOC JPMorgan Chase Bank, N.A. 12/01/34 3.92 1,000,000
455,000 Machining Center Inc. - Series 1997
LOC Comerica Bank 10/01/27 3.60 455,000
760,000 Manatee County, FL MHRB - Series 2002B
(La Mirada Gardens Project)
LOC SunTrust Bank 11/01/33 3.25 760,000
3,375,000 Maryland Health & Higher Educational Facilities Authority
(Glen Meadows Retirement Community) - Series 1999B
LOC Wachovia Bank, N.A. 07/01/29 3.03 3,375,000
2,257,100 Materials Processing Inc. - Series 2004
LOC Fifth Third Bank 09/01/34 3.85 2,257,100
600,000 Mayfair Village Retirement Center, Inc., KY - Series 1995
LOC PNC Bank, N.A. 05/15/09 3.00 600,000
7,400,000 M-B Companies, Inc. - Series 2008
LOC US Bank, N.A 03/01/48 3.90 7,400,000
6,850,000 MBE Investment Company LLC - Series 2004A
LOC Comerica Bank 12/01/54 3.50 6,850,000
The accompanying notes are an integral part of these financial statements.
-------------------------------------------------------------------------------
DAILY INCOME FUND
MONEY MARKET PORTFOLIO
SCHEDULE OF INVESTMENTS (CONTINUED)
MARCH 31, 2008
===============================================================================
Face Maturity Current Value
Amount Date Coupon (1) (Note 1)
------------ ------ ---------- --------
Variable Rate Demand Instruments ((8)) (Continued)
-----------------------------------------------------------------------------------------------------------------------------------
$ 1,755,000 Mercer County, OH HealthCare Facilities RB
LOC Fifth Third Bank 04/01/23 3.85% $ 1,755,000
895,000 Miami River Stone Company - Series 2002
LOC U.S. Bank, N.A. 08/01/09 3.50 895,000
855,000 Miami Valley Realty Associates - Series 1997
LOC Key Bank, N.A. 06/01/12 3.50 855,000
2,150,000 Michigan City, IN Economic Development RB
(Consolidated Biscuit Co., Project) - Series 1998
LOC Fifth Third Bank 10/01/13 3.85 2,150,000
6,555,000 Michigan Equity Group, LLC
(Oakland Investment Company Project) - Series 2004A
LOC Fifth Third Bank 04/01/34 3.85 6,555,000
1,880,000 Michigan HEFA RB (Hope College Project) - Series 1996A
LOC Old Kent Bank & Trust Co. 10/01/16 3.50 1,880,000
885,000 Milwaukee, WI (Historic Third Ward Parking Project)
LOC Northern Trust Bank 09/01/28 3.60 885,000
2,500,000 Mississippi Business Finance Corporation IDRB
(Attala Steel Industries, LLC Project) - Series 2005
Guaranteed by Federal Home Loan Bank of Dallas 07/01/20 2.77 2,500,000
1,840,000 Mississippi Business Finance Corporation IDRB
(Howard Industries Inc. Project) - Series 1995
LOC Amsouth Bank 06/01/10 2.80 1,840,000
2,550,000 Mississippi Business Finance Corporation
(Wade Inc. Project) - Series 2006
LOC Regions Bank 02/01/21 2.80 2,550,000
4,300,000 Mississippi Business Finance Corporation IDRB
(Pottery Barn Inc. Project) - Series 2004
LOC Bank of America, N.A. 06/01/24 2.75 4,300,000
7,225,000 Mississippi Business Finance Corporation IDRB
(Lextron - Visteon Leasing, LLC Project) - Series 2003
LOC JPMorgan Chase Bank, N.A. 12/01/27 2.96 7,225,000
1,800,000 Mississippi Business Finance Corporation IDRB
(TT & W Farm Products Inc. Project) - Series 2000B
LOC Amsouth Bank 11/01/11 2.80 1,800,000
1,025,000 MMR Development Corp.
LOC Fifth Third Bank 05/01/23 3.85 1,025,000
865,000 Montgomery, AL IDRB (The Jobs Company, LLC Project)
- Series 1996C
LOC Columbus Bank & Trust Company 07/01/16 2.78 865,000
4,000,000 Montgomery, AL Health Facilities Development Inc.
LOC First Commercial Bank 11/01/33 2.90 4,000,000
6,760,000 Montgomery County, PA MHRB
(Brookside Manor Apartments) - Series 2001A
Collateralized by Federal National Mortgage Association 08/15/31 2.65 6,760,000
9,700,000 Moore Orthopedic Clinic -Land, LLC - Series 2006
LOC National Bank of South Carolina 08/01/31 2.90 9,700,000
3,010,000 Mount Ontario Holdings LLC - Series 2001 ((9))
LOC U.S Bank, N.A. 04/01/21 3.10 3,010,000
1,715,000 Mrs. K.C. Jordan & Associates, Inc.
LOC Fifth Third Bank 04/01/23 3.85 1,715,000
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 ((8)) (Continued)
-----------------------------------------------------------------------------------------------------------------------------------
$ 2,785,000 Nebar Investments, LLC - Series 2005
LOC Fifth Third Bank 07/01/50 3.85% $ 2,785,000
4,095,000 New Hampshire Health & Educational Facility Authority RB
(Weeks Medical Center Issue) - Series 2005B
LOC Allied Irish Bank PLC 07/01/35 2.64 4,095,000
1,415,000 New Lexington Clinic, P.S.C. - Series 2003
LOC Fifth Third Bank 05/01/18 3.85 1,415,000
1,430,000 New York City, NY IDA Civic Facility RB (Wartburg Luthern Home
for the Aging and Wartburg Nursing Home, Inc. Project)
- Series 2006B
LOC Key Bank, N.A. 06/01/27 3.18 1,430,000
1,100,000 New York State HFA RB (345 East 94th Street)
Guaranteed by Federal Home Loan Mortgage Corporation 11/01/30 2.95 1,100,000
3,000,000 North Coast Quarry, Ltd.
LOC Fifth Third Bank 07/01/31 3.85 3,000,000
2,980,000 Northern Kentucky Cancer Center, LLC - Series 2003
LOC U.S. Bank, N.A. 05/01/24 3.50 2,980,000
6,935,000 North Lagoon Partners, Inc. - Series 2004
LOC Columbus Bank & Trust Company 10/01/29 2.78 6,935,000
1,500,000 NO S Properties, LLC - Series 2004
LOC Fifth Third Bank 08/01/24 3.85 1,500,000
1,695,000 NPI Capital, LLC - Series 1999A
LOC Michigan National Bank 07/01/29 3.60 1,695,000
2,560,000 OHC Real Estate LLC - Series 2006A
LOC U.S. Bank, N.A. 11/01/26 3.50 2,560,000
1,275,000 OHC Real Estate LLC - Series 2006B
LOC U.S. Bank, N.A. 11/01/26 3.50 1,275,000
6,900,000 Olathe, KS IDRB (Diamant Board Project) - Series 1997B
LOC Svenska Handelsbanken 03/01/27 2.65 6,900,000
970,000 Oswego County, NY IDA Facilities
(OH Properties, Inc Project - B)
LOC Manufacturers & Traders Trust Company 06/01/24 2.72 970,000
2,075,000 Parisi Investment, LP & Supply Co. - Series 1998
LOC U.S. Bank, N.A. 05/01/18 3.50 2,075,000
3,420,000 Parker Towing Company Inc. - Series 2006
LOC Amsouth Bank 06/01/11 3.18 3,420,000
3,700,000 Pennsylvania EDFA 2005 Series B3
LOC PNC Bank, N.A. 08/01/25 2.78 3,700,000
1,300,000 Pennsylvania EDFA Taxable Development RB
(West 914 Incorporation Project) - Series 1991A
LOC PNC Bank, N.A. 05/01/21 2.78 1,300,000
300,000 Portland, OR EDRB
(Broadway Project) - Series 2003B
Insured by AMBAC Indemnity Corporation 04/01/11 6.50 300,000
4,205,736 Precision Radiotherapy LLC
LOC Fifth Third Bank 08/01/18 3.85 4,205,736
2,885,000 Putnam County, NY IDA IDRB
(Broad Reach, LLC Project) - Series 2006A
LOC Charter One Bank 07/01/32 3.18 2,885,000
The accompanying notes are an integral part of these financial statements.
-------------------------------------------------------------------------------
DAILY INCOME FUND
MONEY MARKET PORTFOLIO
SCHEDULE OF INVESTMENTS (CONTINUED)
MARCH 31, 2008
===============================================================================
Face Maturity Current Value
Amount Date Coupon (1) (Note 1)
------------ ------ ---------- --------
Variable Rate Demand Instruments ((8)) (Continued)
-----------------------------------------------------------------------------------------------------------------------------------
$ 915,000 Putnam County, NY IDA IDRB
(Broad Reach, LLC Project) - Series 2006B
LOC Charter One Bank 07/01/14 3.18% $ 915,000
7,000,000 RDV Finance LLC
LOC Fifth Third Bank 10/01/39 3.65 7,000,000
5,000,000 Real Estate, LLC and White Wilson Medical Center
LOC Fifth Third Bank 05/01/57 3.85 5,000,000
2,355,000 Realty Holdings Co. LLC - Series 2004
LOC Fifth Third Bank 05/01/24 3.85 2,355,000
4,570,000 Reynolds Road Fitness Center - Series 1998
LOC Fifth Third Bank 01/01/19 3.85 4,570,000
3,490,000 Robert C. Fox Jr. (Fox Racing Shoe Project) - Series A
LOC Comerica Bank 06/01/33 2.67 3,490,000
3,855,000 Rockwood Quarry LLC - Series 2002
LOC Fifth Third Bank 12/01/22 3.65 3,855,000
980,000 S & S Partnership (Model Graphics) - Series 1999
LOC U.S. Bank, N.A. 09/01/19 3.60 980,000
10,113,000 Saber Management LLC - Series 2006
LOC Charter One Bank 07/01/56 3.75 10,113,000
1,240,000 Sand Run Nursery & Preserve LLC - Series 2004
LOC U.S. Bank, N.A. 03/01/24 3.50 1,240,000
4,800,000 Santa Rosa Property Holdings, LLC - Series 2006
LOC Columbus Bank & Trust Company 08/01/31 2.90 4,800,000
2,325,000 Savoy Properties, Ltd. - Series 2000
LOC Key Bank, N.A. 08/01/20 3.50 2,325,000
6,090,000 Scott Street Land Company, Ltd. - Series 2000
LOC Fifth Third Bank 01/03/22 3.85 6,090,000
10,000,000 Sea Island Company & Sea Island Coastal
Properties LLC - Series 2003B
LOC Columbus Bank & Trust Company 04/01/23 2.90 10,000,000
3,850,000 Security Self-Storage, Inc. - Series 1999
LOC JPMorgan Chase Bank, N.A. 02/01/19 3.70 3,850,000
2,800,000 Security Self-Storage, Inc. - Series 2005
LOC Fifth Third Bank 05/01/35 3.85 2,800,000
3,330,000 Servaas, Inc. - Series 2003
LOC Fifth Third Bank 03/01/13 3.85 3,330,000
2,970,000 Shepherd Capital LLC
LOC Fifth Third Bank 03/15/49 3.97 2,970,000
4,095,000 Smugglers Notch Management Company, Ltd. and
Smugglers Notch Investment Company, Ltd. - Series 2000
LOC Key Bank, N.A. 09/01/15 3.50 4,095,000
6,100,000 South Central Communications Corporation - Series 2003
LOC Fifth Third Bank 04/01/18 3.65 6,100,000
1,630,000 Southern Orthopaedic Properties LLC - Series 2001
LOC Columbus Bank & Trust Company 10/01/21 2.95 1,630,000
67,800,000 Southern Ute Indian Tribe of the Southern Ute Indian
Reservation, CO - Series 2007 01/01/27 3.50 67,800,000
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 (8) (Continued)
-----------------------------------------------------------------------------------------------------------------------------------
$ 11,925,000 Southwestern Group Limited - Series 2001
LOC U.S. Bank, N.A. 07/01/21 3.50% $ 11,925,000
1,160,000 Stallard-Schrier Family LP - Series 1996
LOC Fifth Third Bank 09/01/16 3.50 1,160,000
900,000 State Crest Ltd. - Series 2000
LOC Fifth Third Bank 06/01/23 3.85 900,000
10,380,000 St. Johns County IDA First Mortgage RB
(Presbyterian Retirement Communities Project) - Series 2004B
LOC Allied Irish Bank PLC 08/01/34 3.20 10,380,000
1,000,000 Stone Creek LLC
LOC Columbus Bank & Trust Company 12/01/41 2.95 1,000,000
10,370,000 Stonegate-Partners I, LLC (Stonegate Partners Project)
- Series 2002
LOC U.S. Bank, N.A. 06/01/34 3.51 10,370,000
18,405,000 SWC Princeton, LLC - Series 2006
LOC Compass Bank 03/01/32 2.77 18,405,000
2,100,000 Tampa Bay, FL (Elders Land Development) - Series 2003
LOC Fifth Third Bank 09/01/23 3.85 2,100,000
2,520,000 Tant Real Estate, LLC - Series 2003
LOC Columbus Bank & Trust Company 03/01/23 2.95 2,520,000
1,695,000 Taylor Steel, Inc.
LOC Key Bank, N.A. 02/01/23 3.50 1,695,000
650,000 T.D. Management Ltd. - Series 1996
LOC Fifth Third Bank 01/01/11 3.50 650,000
7,030,000 Thayer Properties II, LLC - Series 2001
LOC Columbus Bank & Trust Company 09/01/21 3.00 7,030,000
1,605,000 The Home City Ice Company & HC Transport, Inc., Series - 2004
LOC U.S. Bank, N.A. 05/01/19 3.50 1,605,000
2,560,000 The Medical Clinic Board of the City of Mobile, AL - Spring Hill
(Springhill Medical Complex, Inc.) - Series 1996B
LOC Regions Bank 09/01/11 2.80 2,560,000
2,935,000 The Physician's Center, L.P. - Series 2003
Guaranteed by Federal Home Loan Bank 10/01/29 2.78 2,935,000
5,510,000 The Shoppes at Edgewater - Series 2003
LOC Amsouth Bank 01/01/23 2.80 5,510,000
1,220,000 The Wilmington Iron & Metal Company, Inc - Series 1999
LOC JPMorgan Chase Bank, N.A. 08/01/14 3.90 1,220,000
6,775,000 Three Reading LP
LOC Federal Home Loan Bank of Pittsburg 06/01/24 2.80 6,775,000
2,280,000 Tireless Corporation - Series 1999
LOC Fifth Third Bank 04/01/19 3.85 2,280,000
3,785,000 Tom Richards, Inc. (Team Land, LLC / Team Industries)
Guaranteed by Federal Home Loan Bank of Cincinnati 12/01/16 3.95 3,785,000
2,770,000 Town of Islip, NY IDA (Brentwood Real Estate LLC) - Series 2000
LOC Citibank, N.A. 11/01/20 2.15 2,770,000
1,340,000 Trendway Corporation - Series 1996
LOC ABN Amro Bank, N.A. 12/01/26 3.60 1,340,000
The accompanying notes are an integral part of these financial statements.
-------------------------------------------------------------------------------
DAILY INCOME FUND
MONEY MARKET PORTFOLIO
SCHEDULE OF INVESTMENTS (CONTINUED)
MARCH 31, 2008
===============================================================================
Face Maturity Current Value
Amount Date Coupon (1) (Note 1)
------------ ------ ---------- --------
Variable Rate Demand Instruments ((8)) (Continued)
-----------------------------------------------------------------------------------------------------------------------------------
$ 5,900,000 Triple Crown Investments, LLC - Series 2004
LOC Federal Home Loan Bank of Dallas 08/01/25 2.78% $ 5,900,000
1,880,000 Trotman Bay Minette, Inc. - Series 2000
LOC Columbus Bank & Trust Company 01/01/21 2.78 1,880,000
2,545,000 Twelfth Street Partners, LLC - Series 2005
LOC Fifth Third Bank 04/01/25 3.85 2,545,000
4,595,000 Upper Illinois River Valley Development Authority
(Exolon-ESK Company Project) - Series 1996B
LOC Bank of America, N.A. 12/01/21 3.50 4,595,000
735,000 Vincent Enterprise & Partners - Series 2000
LOC Key Bank, N.A. 03/01/20 3.50 735,000
570,000 Walt Sweeney Ford - Series 1996
LOC Fifth Third Bank 01/01/12 3.60 570,000
430,000 Warrior Roofing Manufacturing, Inc - Series 2001
LOC Columbus Bank & Trust Company 09/01/26 3.00 430,000
3,333,000 Washington State HFC Non-Profit Housing RB ((9))
(Rockwood Program) - Series B
LOC Wells Fargo Bank, N.A. 01/01/30 2.97 3,333,000
1,375,000 Washington State HFC Non-Profit Housing RB
(The Vintage at Richland Project) - Series 2004B
Guaranteed by Federal National Mortgage Association 01/15/38 3.07 1,375,000
8,955,000 Wellington Green, LLC - Series 1999
LOC Charter One Bank 04/01/29 3.50 8,955,000
8,700,000 Wellstone Mills LLC - Series 2004A
LOC PNC Bank, N.A. 12/15/24 2.83 8,700,000
1,650,000 Westchester County, NY IDA RB
(B.W.P. Distributors Inc.) - Series 1997
LOC Wachovia Bank, N.A. 10/01/28 3.92 1,650,000
425,000 Westchester Presbyterian Church
LOC U.S Bank, N.A. 09/01/13 3.50 425,000
15,200,000 William Morris Realty Greystone, LLC - Series 2007
LOC Regions Bank 03/01/32 2.72 15,200,000
4,800,000 Willow Creek Interest LLC, OH - Series 2005
LOC Fifth Third Bank 04/01/25 3.85 4,800,000
2,687,563 Wilmington Trust Company (Amtrak Trust 93-A) - Series B Notes
Guaranteed by General Electric Company 01/01/11 4.66 2,687,563
7,500,000 Winder-Barrow Industrial Building Authority
(The Concrete Company Project) - Series 2000
LOC Columbus Bank & Trust Company 02/01/20 2.95 7,500,000
890,000 Windsor Medical Center, Inc. - Series 1997
LOC Federal Home Loan Bank 12/03/18 3.95 890,000
1,590,000 Wisconsin Housing Preservation Corporation - Series 2005
LOC Marshall & Ilsley Bank 05/01/35 3.30 1,590,000
2,100,000 Woods Group TN, LLC - Series 2006
LOC Amsouth Bank 09/01/31 2.93 2,100,000
-------------- --------------
1,028,262,323 Total Variable Rate Demand Instruments 1,028,262,323
-------------- --------------
The accompanying notes are an integral part of these financial statements.
-------------------------------------------------------------------------------
===============================================================================
Face Maturity Current Value
Amount Date Coupon (1) (Note 1)
------------ ------ ---------- --------
Yankee Certificates of Deposit (38.10%)
-----------------------------------------------------------------------------------------------------------------------------------
$ 100,000,000 Abbey National Bank Floating Rate YCD (10) 04/07/08 4.59% $ 99,999,601
150,000,000 Allied Irish Bank PLC 06/09/08 4.33 150,000,000
100,000,000 Banco Bilbao de Vizcaya Argentaria Floating Rate YCD (11) 04/07/08 4.59 99,999,682
200,000,000 Banco of Nova Scotia 04/11/08 2.85 200,000,000
50,000,000 Bank of Scotland 06/02/08 2.73 50,026,899
110,000,000 Bank of Scotland 06/09/08 2.97 110,049,417
100,000,000 Bayerische Landesbank Girozentrale 04/03/08 3.13 100,000,000
100,000,000 Bank of Montreal (12) 06/17/08 2.40 100,000,000
75,000,000 CIBC Floating Rate YCD (12) 05/08/08 2.40 75,000,000
50,000,000 CIBC Floating Rate YCD (13) 05/21/08 2.66 50,000,000
25,000,000 CIBC Floating Rate YCD (14) 07/28/08 2.41 25,000,000
75,000,000 Credit Industriel et Commercial 04/03/08 3.13 75,000,000
50,000,000 Credit Industriel et Commercial 04/28/08 2.75 50,000,000
25,000,000 Credit Industriel et Commercial 05/27/08 5.33 25,000,000
85,000,000 Credit Suisse First Boston 05/16/08 5.00 85,018,206
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
50,000,000 Deutsche Bank (12) 04/24/08 2.40 50,000,000
100,000,000 Deutsche Zentral-Genossenschaftsb 04/11/08 3.11 100,000,138
200,000,000 Deutsche Zentral-Genossenschaftsb 05/01/08 3.24 200,000,000
50,000,000 Deutsche Zentral-Genossenschaftsb 10/10/08 5.00 50,000,000
75,000,000 HSH Nordbank AG 04/09/08 4.48 75,000,000
75,000,000 HSH Nordbank AG 05/07/08 3.19 75,000,000
100,000,000 Landesbank Baden Wurtemburg 05/06/08 3.08 100,000,000
100,000,000 National Bank of Canada (6) 04/21/08 2.70 100,000,000
20,000,000 Norddeutsche Landesbank Girozentral 04/07/08 5.41 20,000,000
50,000,000 Standard Chartered Bank PLC Floating Rate YCD (15) 04/07/08 4.59 49,999,821
100,000,000 Standard Chartered Bank PLC Floating Rate YCD (16) 04/07/08 3.05 99,999,761
100,000,000 Standard Chartered Bank PLC Floating Rate YCD 04/07/08 3.19 100,000,000
150,000,000 Unicredito Italiano 05/28/08 3.07 150,000,000
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
-------------- --------------
2,655,000,000 Total Yankee Certificates of Deposit 2,655,093,525
-------------- --------------
Total Investments (99.28%) (Cost $6,917,784,002+) 6,917,784,002
Cash and other assets in excess of liabilities (0.72%) 50,369,276
--------------
Net Assets (100.00%) $6,968,153,278
==============
+ Aggregate cost for federal income tax purposes is identical.
The accompanying notes are an integral part of these financial statements.
-------------------------------------------------------------------------------
DAILY INCOME FUND
MONEY MARKET PORTFOLIO
SCHEDULE OF INVESTMENTS (CONTINUED)
MARCH 31, 2008
===============================================================================
FOOTNOTES:
1) The interest rate shown reflects the security's current 10) The interest rate is adjusted quarterly based upon
coupon, unless yield is available. three month LIBOR minus 0.06%.
2) The interest rate is adjusted quarterly based upon three 11) The interest rate is adjusted quarterly based upon
month LIBOR plus 0.15%. three month LIBOR minus 0.055%.
3) The interest rate is adjusted monthly based upon one 12) The interest rate is adjusted daily based upon
month LIBOR plus 0.03%. Federal Funds Target plus 0.15%.
4) The interest rate is adjusted quarterly based upon four 13) The interest rate is adjusted monthly based upon one
months LIBOR minus 0.50%. month LIBOR plus 0.06%.
5) The interest rate is adjusted monthly based upon one month 14) The interest rate is adjusted daily based upon
LIBOR minus 0.02%. Federal Funds Target plus 0.165%.
6) The interest rate is adjusted monthly based upon one month 15) The interest rate is adjusted monthly based upon one
LIBOR plus 0.14%. month LIBOR minus 0.035%.
7) The interest rate is adjusted quarterly based upon three 16) The interest rate is adjusted quarterly based upon
month LIBOR plus 0.08%. three month LIBOR minus 0.0525%.
8) Securities payable on demand at par including accrued
interest(with seven days' notice).Interest rate is adjusted
weekly, unless otherwise noted.
9) Securities payable on demand at par including accrued
interest (with one day notice). Interest rate is adjusted daily.
KEY:
EDFA = Economic Development Finance Authority IDRB = Industrial Development Revenue Bond
EDRB = Economic Development Revenue Bond LOC = Letter of Credit
HEFA = Health and Education Finance Authority MHRB = Multi-Family Housing Revenue Bond
HFA = Housing Finance Authority RB = Revenue Bond
HFC = Housing Finance Commission YCD = Yankee Certificate of Deposit
IDA = Industrial Development Authority
BREAKDOWN OF PORTFOLIO HOLDINGS BY MATURITY:
--------------------------------------------------------------------------------------
Securities Maturing in Value % of Portfolio
--------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------
Less than 31 Days $ 4,265,429,998 61.66%
31 through 60 Days 1,704,287,298 24.63
61 through 90 Days 567,076,316 8.20
91 through 120 Days 127,034,418 1.84
121 through 180 Days 203,955,972 2.95
Over 180 Days 50,000,000 0.72
--------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------
Total $ 6,917,784,002 100.00%
--------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
-------------------------------------------------------------------------------
DAILY INCOME FUND
MONEY MARKET PORTFOLIO
STATEMENT OF ASSETS AND LIABILITIES
MARCH 31, 2008
===============================================================================
ASSETS
Investments in securities, at amortized cost (Note 1)............................. $ 6,767,784,002
Repurchase agreements............................................................. 150,000,000
Cash.............................................................................. 4,273,608
Accrued interest receivable....................................................... 52,335,034
Prepaid expenses.................................................................. 135,198
------------------
Total assets............................................................... 6,974,527,842
------------------
LIABILITIES
Payable to affiliates*............................................................ 2,262,143
Accrued expenses.................................................................. 404,670
Dividends payable................................................................. 3,700,503
Other payable..................................................................... 7,248
------------------
Total liabilities.......................................................... 6,374,564
------------------
Net assets........................................................................ $ 6,968,153,278
==================
SOURCE OF NET ASSETS
Net capital paid in on shares of capital stock (Note 4)........................... $ 6,968,153,551
Accumulated net realized loss..................................................... (233)
Accumulated overdistributed net investment income................................. (40)
------------------
Net assets........................................................................ $ 6,968,153,278
==================
Net asset value, per share (Note 4):
Class Name Net Assets Shares Outstanding Net Asset Value
Institutional Shares........................ $751,532,017 751,532,402 $1.00
Institutional Service Shares................ $260,608,969 260,609,102 $1.00
Investor Shares............................. $316,547,547 316,547,709 $1.00
Short Term Income Shares.................... $297,507,851 297,508,003 $1.00
Retail Shares............................... $1,439,855,672 1,439,856,408 $1.00
Pinnacle Shares............................. $178,212,705 178,212,796 $1.00
Advantage Shares............................ $3,451,675,785 3,451,677,550 $1.00
Xpress Shares............................... $272,212,732 272,212,871 $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.
-------------------------------------------------------------------------------
MONEY MARKET PORTFOLIO
STATEMENT OF OPERATIONS
FOR THE YEAR ENDED MARCH 31, 2008
===============================================================================
INVESTMENT INCOME
Income:
Interest........................................................................ $ 345,210,915
------------------
Expenses: (Note 2)
Investment management fee....................................................... 8,332,825
Administration fee.............................................................. 3,472,010
Shareholder servicing fee (Institutional Service Shares)........................ 656,286
Shareholder servicing fee (Investor Shares)..................................... 581,548
Shareholder servicing fee (Short Term Income Shares)............................ 566,412
Shareholder servicing fee (Retail Shares)....................................... 3,267,876
Shareholder servicing fee (Advantage Shares).................................... 8,294,437
Shareholder servicing fee (Xpress Shares)....................................... 2,036,141
Distribution fee (Investor Shares).............................................. 465,239
Distribution fee (Short Term Income Shares)..................................... 1,019,542
Distribution fee (Retail Shares)................................................ 8,496,478
Distribution fee (Advantage Shares)............................................. 24,883,312
Distribution fee (Xpress Shares)................................................ 6,108,423
Sub-Accounting fee (Advantage Shares)........................................... 3,317,775
Sub-Accounting fee (Xpress Shares).............................................. 814,456
Custodian expenses.............................................................. 207,342
Shareholder servicing and related shareholder expenses+......................... 1,628,904
Legal, compliance and filing fees............................................... 848,111
Audit and accounting............................................................ 527,341
Trustees' fees and expenses..................................................... 397,214
Other........................................................................... 87,826
------------------
Total expenses.................................................................. 76,009,498
Less: Fees waived (Note 2)............................................... (12,524,521)
Expense paid indirectly (Note 2)................................... (2,530)
------------------
Net expenses.................................................................... 63,482,447
------------------
Net investment income........................................................... 281,728,468
REALIZED GAIN (LOSS) ON INVESTMENTS
Net realized gain (loss) on investments............................................. (233)
------------------
Increase in net assets from operations.............................................. $ 281,728,235
==================
+ Includes class specific transfer agency expenses of $104,888, $52,514,
$114,442, $131,226, $653,574, and $28,696 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
FOR THE YEARS ENDED MARCH 31, 2008 AND 2007
===============================================================================
2008 2007
---- ----
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income......................................... $ 281,728,468 $ 95,361,885
Net realized gain (loss) on investments....................... (233) 2,797
--------------- ----------------
Increase in net assets from operations............................ 281,728,235 95,364,682
Dividends to shareholders from net investment income:
Institutional Shares.......................................... (29,254,977) (30,400,132)
Institutional Service Shares.................................. (11,820,882) (11,264,771)
Investor Shares............................................... (9,893,960) (546,986)
Short-Term Income Shares...................................... (8,887,585) (203,619)
Retail Shares................................................. (51,609,017) (4,247,022)
Pinnacle Shares............................................... (8,183,099) (7,787,391)
Advantage Shares.............................................. (131,002,246) (40,911,972)
Xpress Shares................................................. (31,076,702) -0-
--------------- ----------------
Total dividends to shareholders.......................... (281,728,468) (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 4):
Institutional Shares.......................................... 111,959,237 266,851,902
Institutional Service Shares.................................. (7,255,798) 43,814,744
Investor Shares............................................... 27,257,449 151,946,857
Short-Term Income Shares...................................... 199,669,738 57,096,721
Retail Shares................................................. 505,196,112 897,903,953
Pinnacle Shares............................................... 7,184,587 36,345,944
Advantage Shares.............................................. 338,089,059 3,113,588,491
Xpress Shares................................................. 272,212,871 -0-
Net asset value of shares issued in connection with merger Cortland
General Money Market into Retail Shares (Note 5).............. 36,753,053 -0-
Net asset value of shares issued in connection with merger Short Term
Money Market Class A into Short Term Income Shares (Note 5)... 40,741,544 -0-
Net asset value of shares issued in connection with merger Short Term
Money Market Class B into Investor Shares (Note 5)............ 137,343,403 -0-
--------------- ----------------
Total capital share transactions........................ 1,669,151,255 4,567,548,612
--------------- ----------------
Total increase ............................................... 1,669,150,982 4,567,548,821
Net assets:
Beginning of year............................................. 5,299,002,296 731,453,475
--------------- ----------------
End of year................................................... $ 6,968,153,278 $ 5,299,002,296
=============== ================
Overdistributed net investment income............................. $ (40) $ -0-
=============== ================
The accompanying notes are an integral part of these financial statements.
-------------------------------------------------------------------------------
DAILY INCOME FUND
MONEY MARKET PORTFOLIO
FINANCIAL HIGHLIGHTS
===============================================================================
For the Years Ended March 31,
------------------------------------------------------------
Institutional shares 2008 2007 2006 2005 2004
-------------------- --------- --------- --------- --------- ---------
Per Share Operating Performance:
(for a share outstanding throughout the year)
Net asset value, beginning of year............................... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
--------- --------- --------- --------- ---------
Income from investment operations:
Net investment income.......................................... 0.048 0.051 0.036 0.016 0.010
Net realized and unrealized gain(loss) on investments......... 0.000 0.000 -- 0.000 0.000
--------- --------- --------- --------- ---------
Total from investment operations............................... 0.048 0.051 0.036 0.016 0.010
Less distributions from:
Dividends from net investment income........................... (0.048) (0.051) (0.036) (0.016) (0.010)
Net realized gain(loss) on investment.......................... (0.000) (0.000) -- (0.000) (0.000)
--------- --------- --------- --------- ---------
Total Distributions............................................ (0.048) (0.051) (0.036) (0.016) (0.010)
--------- --------- --------- --------- ---------
Net asset value, end of year..................................... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
========= ========= ========= ========= =========
Total Return..................................................... 4.91% 5.19% 3.63% 1.61% 1.00%
Ratios/Supplemental Data
Net assets, end of year (000's).................................. $ 751,532 $ 639,573 $ 372,721 $ 215,314 $ 163,829
Ratios to average net assets:
Expenses (net of fees waived) (a).............................. 0.20% 0.20% 0.20% 0.20% 0.20%
Net investment income.......................................... 4.78% 5.10% 3.66% 1.63% 0.99%
Management and administration fees waived...................... 0.02% 0.03% 0.06% 0.06% 0.06%
Transfer agency fees waived.................................... 0.00% -- 0.02% 0.02% 0.02%
Expenses paid indirectly....................................... 0.00% 0.00% 0.00% 0.00% 0.00%
For the Years Ended March 31,
------------------------------------------------------------
Institutional Service shares 2008 2007 2006 2005 2004
---------------------------- --------- --------- --------- --------- ---------
Per Share Operating Performance:
(for a share outstanding throughout the year)
Net asset value, beginning of year............................... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
--------- --------- --------- --------- ---------
Income from investment operations:
Net investment income.......................................... 0.046 0.048 0.033 0.013 0.007
Net realized and unrealized gain(loss) on investments......... 0.000 0.000 -- 0.000 0.000
--------- --------- --------- --------- ---------
Total from investment operations............................... 0.046 0.048 0.033 0.013 0.007
Less distributions from:
Dividends from net investment income........................... (0.046) (0.048) (0.033) (0.013) (0.007)
Net realized gain(loss) on investment.......................... (0.000) (0.000) (--) (0.000) (0.000)
--------- --------- --------- --------- ---------
Total Distributions............................................ (0.046) (0.048) (0.033) (0.013) (0.007)
--------- --------- --------- --------- ---------
Net asset value, end of year..................................... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
========= ========= ========= ========= =========
Total Return..................................................... 4.65% 4.92% 3.36% 1.34% 0.73%
Ratios/Supplemental Data
Net assets, end of year (000's).................................. $ 260,609 $ 267,865 $ 224,050 $ 119,989 $ 53,373
Ratios to average net assets:
Expenses (net of fees waived) (a).............................. 0.45% 0.45% 0.47% 0.47% 0.47%
Net investment income.......................................... 4.50% 4.83% 3.39% 1.49% 0.73%
Management and administration fees waived...................... 0.02% 0.03% 0.06% 0.08% 0.06%
Shareholder servicing fees waived.............................. 0.01% -- -- -- --
Transfer agency fees waived.................................... -- -- 0.01% 0.02% 0.00%
Expenses paid indirectly....................................... 0.00% 0.00% 0.00% 0.00% 0.00%
(a) Includes expenses paid indirectly.
The accompanying notes are an integral part of these financial statements.
-------------------------------------------------------------------------------
===============================================================================
Investor shares Commencement of Operations
--------------- Year Ended November 28, 2006 through
Per Share Operating Performance: March 31, 2008 March 31, 2007
-------------- --------------
(for a share outstanding throughout the year)
Net asset value, beginning of year..................... $ 1.00 $ 1.00
--------- ----------
Income from investment operations:
Net investment income............................... 0.044 0.016
Net realized and unrealized gain(loss) on investments 0.000 0.000
--------- ----------
Total from investment operations.................... 0.044 0.016
Less distributions from:
Dividends from net investment income................ (0.044) (0.016)
Net realized gain on investments.................... (0.000) (0.000)
--------- ----------
Total Distributions................................. (0.044) (0.016)
--------- ----------
Net asset value, end of year........................... $ 1.00 $ 1.00
========= ==========
Total Return........................................... 4.44% 1.62%(a)
Ratios/Supplemental Data
Net assets, end of year (000's)........................ $ 316,547 $ 151,947
Ratios to average net assets:
Expenses (net of fees waived) (b)................... 0.65% 0.65%(c)
Net investment income............................... 4.25% 4.76%(c)
Management and administration fees waived........... 0.02% 0.03%(c)
Distribution fees waived............................ 0.04% -- (c)
Transfer Agency Account fee waiver.................. -- 0.03%(c)
Expenses paid indirectly............................ 0.00% 0.00%(c)
Short Term Income shares Commencement of Operations
------------------------- Year Ended February 12, 2007 through
Per Share Operating Performance: March 31, 2008 March 31, 2007
-------------- --------------
(for a share outstanding throughout the year)
Net asset value, beginning of year..................... $ 1.00 $ 1.00
--------- ----------
Income from investment operations:
Net investment income............................... 0.041 0.006
Net realized and unrealized gain(loss) on investments 0.000 0.000
--------- ----------
Total from investment operations.................... 0.041 0.006
Less distributions from:
Dividends from net investment income................ (0.041) (0.006)
Net realized gain on investments.................... -- (0.000)
--------- ----------
Total Distributions................................. (0.041) (0.006)
--------- ----------
Net asset value, end of year........................... $ 1.00 $ 1.00
========= ==========
Total Return........................................... 4.14% 0.59%(a)
Ratios/Supplemental Data
Net assets, end of year (000's)........................ $ 297,508 $ 57,097
Ratios to average net assets:
Expenses (net of fees waived) (b)................... 0.94% 0.94%(c)
Net investment income............................... 3.92% 4.47%(c)
Management and administration fees waived........... 0.02% 0.03%(c)
Distribution fees waived............................ 0.01% -- (c)
Expenses paid indirectly............................ 0.00% 0.00%(c)
(a) Unannualized
(b) Includes expenses paid indirectly.
(c) Annualized
-------------------------------------------------------------------------------
DAILY INCOME FUND
MONEY MARKET PORTFOLIO
FINANCIAL HIGHLIGHTS (CONTINUED)
===============================================================================
Retail shares Commencement of Operations
------------- Year Ended November 28, 2006 through
Per Share Operating Performance: March 31, 2008 March 31, 2007
-------------- --------------
(for a share outstanding throughout the year)
Net asset value, beginning of year..................... $ 1.00 $ 1.00
--------- ----------
Income from investment operations:
Net investment income............................... 0.040 0.015
Net realized and unrealized gain(loss) on investments 0.000 0.000
--------- ----------
Total from investment operations.................... 0.040 0.015
Less distributions from:
Dividends from net investment income................ (0.040) (0.015)
Net realized gain on investments.................... (0.000) (0.000)
--------- ----------
Total Distributions................................. (0.040) (0.015)
--------- ----------
Net asset value, end of year........................... $ 1.00 $ 1.00
========= ==========
Total Return........................................... 4.08% 1.49%(a)
Ratios/Supplemental Data
Net assets, end of year (000's)........................ $1,439,855 $ 897,904
Ratios to average net assets:
Expenses (net of fees waived) (b)................... 1.00% 1.00%(c)
Net investment income............................... 3.95% 4.39%(c)
Management and administration fees waived........... 0.02% 0.03%(c)
Distribution fees waived............................ 0.14% 0.10%(c)
Transfer Agency Account fee waiver.................. -- 0.03%(c)
Expenses paid indirectly............................ 0.00% 0.00%(c)
For the Years Ended March 31,
------------------------------------------------------------
Pinnacle shares 2008 2007 2006 2005 2004
--------------- --------- --------- --------- --------- ---------
Per Share Operating Performance:
(for a share outstanding throughout the year)
Net asset value, beginning of year............................... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
--------- --------- --------- --------- ---------
Income from investment operations:
Net investment income.......................................... 0.048 0.051 0.036 0.016 0.010
Net realized and unrealized gain(loss) on investments......... 0.000 0.000 -- 0.000 0.000
--------- --------- --------- --------- ---------
Total from investment operations............................... 0.048 0.051 0.036 0.016 0.010
Less distributions from:
Dividends from net investment income........................... (0.048) (0.051) (0.036) (0.016) (0.010)
Net realized gain(loss) on investment.......................... (0.000) (0.000) (--) (0.000) (0.000)
--------- --------- --------- --------- ---------
Total Distributions............................................ (0.048) (0.051) (0.036) (0.016) (0.010)
--------- --------- --------- --------- ---------
Net asset value, end of year..................................... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
========= ========= ========= ========= =========
Total Return..................................................... 4.91% 5.19% 3.63% 1.61% 1.00%
Ratios/Supplemental Data
Net assets, end of year (000's).................................. $ 178,213 $ 171,028 $ 134,682 $ 114,792 $ 122,839
Ratios to average net assets:
Expenses (net of fees waived) (a).............................. 0.20% 0.20% 0.20% 0.20% 0.20%
Net investment income.......................................... 4.79% 5.08% 3.66% 1.63% 0.99%
Management and administration fees waived...................... 0.02% 0.03% 0.06% 0.08% 0.06%
Transfer agency fees waived.................................... 0.01% -- 0.02% 0.02% 0.02%
Expenses paid indirectly....................................... 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.
-------------------------------------------------------------------------------
===============================================================================
Advantage shares Commencement of Operations
---------------- Year Ended November 1, 2006 through
Per Share Operating Performance: March 31, 2008 March 31, 2007
-------------- --------------
(for a share outstanding throughout the year)
Net asset value, beginning of year..................... $ 1.00 $ 1.00
--------- ----------
Income from investment operations:
Net investment income............................... 0.040 0.018
Net realized and unrealized gain(loss) on investments 0.000 0.000
--------- ----------
Total from investment operations.................... 0.040 0.018
Less distributions from:
Dividends from net investment income................ (0.040) (0.018)
Net realized gain on investments.................... (0.000) (0.000)
--------- ----------
Total Distributions................................. (0.040) (0.018)
--------- ----------
Net asset value, end of year........................... $ 1.00 $ 1.00
========= ==========
Total Return........................................... 4.06% 1.81%(a)
Ratios/Supplemental Data
Net assets, end of year (000's)........................ $3,451,676 $3,113,588
Ratios to average net assets:
Expenses (net of fees waived) (b)................... 1.02% 1.02%(c)
Net investment income............................... 3.95% 4.35%(c)
Management and administration fees waived........... 0.02% 0.03%(c)
Distribution fees waived............................ 0.17% 0.16%(c)
Sub-Accounting fees waived.......................... 0.10% 0.10%(c)
Expenses paid indirectly............................ 0.00% 0.00%(c)
Xpress shares Commencement of Operations
------------- June 20, 2007 through
Per Share Operating Performance: March 31, 2008
--------------
Per Share Operating Performance:
(for a share outstanding throughout the year)
Net asset value, beginning of year..................... $ 1.00
---------
Income from investment operations:
Net investment income............................... 0.028
Net realized and unrealized gain(loss) on investments 0.000
---------
Total from investment operations.................... 0.028
Less distributions from:
Dividends from net investment income................ (0.028)
Net realized gain on investments.................... --
---------
Total Distributions................................. (0.028)
---------
Net asset value, end of year........................... $ 1.00
=========
Total Return........................................... 2.88%(a)
Ratios/Supplemental Data
Net assets, end of year (000's)........................ $ 272,213
Ratios to average net assets:
Expenses (net of fees waived) (b)................... 1.25%(c)
Net investment income............................... 3.82%(c)
Administration fees waived.......................... 0.02%(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.
-------------------------------------------------------------------------------
DAILY INCOME FUND
U.S. TREASURY PORTFOLIO
EXPENSE CHART
FOR THE SIX MONTHS ENDED MARCH 31, 2008
(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 October 1, 2007 through March 31, 2008.
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 Value 10/01/07 03/31/08 During the period Expense Ratio*
----------------------------------------------------------------------------------------------------------------------------
Actual $1,000.00 $1,017.10 $1.01 0.20%
----------------------------------------------------------------------------------------------------------------------------
Hypothetical (5% return before $1,000.00 $1,024.00 $1.01 0.20%
expenses)
----------------------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------------------
Institutional Service Shares Beginning Account Ending Account Value Expenses Paid Annualized
Value 10/01/07 03/31/08 During the Period Expense Ratio*
----------------------------------------------------------------------------------------------------------------------------
Actual $1,000.00 $1,015.80 $2.27 0.45%
----------------------------------------------------------------------------------------------------------------------------
Hypothetical (5% return before $1,000.00 $1,022.75 $2.28 0.45%
expenses)
----------------------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------------------
Investor Shares Beginning Account Ending Account Value Expenses Paid Annualized
Value 10/01/07 03/31/08 During the Period Expense Ratio*
----------------------------------------------------------------------------------------------------------------------------
Actual $1,000.00 $1,014.90 $3.17 0.63%
----------------------------------------------------------------------------------------------------------------------------
Hypothetical (5% return before $1,000.00 $1,021.85 $3.18 0.63%
expenses)
----------------------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------------------
Short Term Income Shares Beginning Account Ending Account Value Expenses Paid Annualized
Value 10/01/07 03/31/08 During the Period Expense Ratio*
----------------------------------------------------------------------------------------------------------------------------
Actual $1,000.00 $1,013.50 $4.53 0.90%
----------------------------------------------------------------------------------------------------------------------------
Hypothetical (5% return before $1,000.00 $1,020.50 $4.55 0.90%
expenses)
----------------------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------------------
Retail Shares Beginning Account Ending Account Value Expenses Paid Annualized
Value 10/01/07 03/31/08 During the Period Expense Ratio*
----------------------------------------------------------------------------------------------------------------------------
Actual $1,000.00 $1,013.00 $4.93 0.98%
----------------------------------------------------------------------------------------------------------------------------
Hypothetical (5% return before expenses) $1,000.00 $1,020.10 $4.95 0.98%
----------------------------------------------------------------------------------------------------------------------------
* Expenses are equal to the Fund's annualized expense ratios multiplied by
the average account value over the period (October 1, 2007 through March
31, 2008), multiplied by 183/366 (to reflect the most recent fiscal
half-year).
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
DAILY INCOME FUND
U.S. TREASURY PORTFOLIO
SCHEDULE OF INVESTMENTS
MARCH 31, 2008
===============================================================================
Face Maturity Value
Amount Date Yield (Note 1)
------------ ------ ------ --------
Repurchase Agreements (49.76%)
-----------------------------------------------------------------------------------------------------------------------------------
$ 70,000,000 Bank of America Securities, LLC, purchased on 03/31/08, repurchase
proceeds at maturity $70,002,431 (Collateralized by $66,994,000,
U. S. Treasury Note, 4.625%, due 11/15/09, value $71,400,013) 04/01/08 1.25% $ 70,000,000
95,000,000 Bank of America Securities, LLC, purchased on 03/31/08, repurchase
proceeds at maturity $95,005,410 (Collateralized by $ 94,050,445,
GNMA, 6.00% to 6.50%, due 12/15/37 to 03/20/38,
value $96,900,001) 04/01/08 2.05 95,000,000
170,000,000 Bear, Stearns & Co., Inc., purchased on 03/31/08, repurchase
proceeds at maturity $170,010,294 (Collateralized by $168,340,502,
GNMA, 4.50% to 7.00%, due 12/15/37 to 03/15/38, value
$173,400,406) 04/01/08 2.18 170,000,000
230,000,000 Goldman Sachs, purchased on 03/31/08, repurchase proceeds at
maturity $230,012,778 (Collateralized by $1,761,775,160, GNMA
0.0000% to 24.8662%, due 06/15/26 to 01/20/38, value
$234,600,001) 04/01/08 2.00 230,000,000
60,000,000 Merrill Lynch Pierce Fenner & Smith Co., purchased on 03/31/08,
repurchase proceeds at maturity $60,001,750 (Collateralized by
$54,340,000 TRIN, 2.00%, 04/15/12, value $61,202,396) 04/01/08 1.05 60,000,000
78,000,000 UBS Securities, LLC, purchased on 03/31/08, repurchase proceeds at
maturity $78,002,925 (Collateralized by $73,665,000,
U.S. Treasury Bond, 13.25% due 05/15/14, value $27,342,081,
U.S. Treasury Note, 4.75% due 12/31/08, value $52,221,390) 04/01/08 1.35 78,000,000
-------------- --------------
703,000,000 Total Repurchase Agreements 703,000,000
-------------- --------------
U.S. Government Obligations (50.17%)
-----------------------------------------------------------------------------------------------------------------------------------
$ 200,000,000 U.S. Treasury Bill 04/17/08 0.36% $ 199,968,000
100,000,000 U.S. Treasury Bill 09/04/08 1.29 99,449,667
100,000,000 U.S. Treasury Bill 09/18/08 1.16 99,456,944
100,000,000 U.S. Treasury Bill 04/15/08 1.26 99,951,778
130,000,000 U.S. Treasury Bill 04/15/08 1.12 129,944,389
50,000,000 U.S. Treasury Note, 3.75% 05/15/08 4.98 49,927,718
30,000,000 U.S. Treasury Note, 3.75% 05/15/08 5.00 29,956,490
-------------- --------------
710,000,000 Total U.S. Government Obligations 708,654,986
-------------- --------------
Total Investments (99.93%) (Cost $1,411,654,986+) 1,411,654,986
Cash and other assets in excess of liabilities (0.07%) 1,026,323
--------------
Net Assets (100.00%) $1,412,681,309
==============
+ Aggregate cost for federal income tax purposes is identical.
KEY:
GNMA = Government National Mortgage Association
TRIN = U.S. Treasury Inflation Index
The accompanying notes are an integral part of these financial statements.
-------------------------------------------------------------------------------
DAILY INCOME FUND
U.S. TREASURY PORTFOLIO
BREAKDOWN OF PORTFOLIO HOLDING BY MATURITY
MARCH 31, 2008
===============================================================================
------------------------------ ------------------------ --------------------------
Securities Maturing in Value % of Portfolio
------------------------------ ------------------------ --------------------------
------------------------------ ------------------------ --------------------------
Less than 31 Days $ 1,132,864,167 80.25%
31 through 60 Days 79,884,208 5.66
61 through 90 Days -- --
91 through 120 Days -- --
121 through 180 Days -- --
Over 180 Days 198,906,611 14.09
------------------------------ ------------------------ --------------------------
------------------------------ ------------------------ --------------------------
Total $1,411,654,986 100.00%
------------------------------ ------------------------ --------------------------
The accompanying notes are an integral part of these financial statements.
-------------------------------------------------------------------------------
DAILY INCOME FUND
U.S. TREASURY PORTFOLIO
STATEMENT OF ASSETS AND LIABILITIES
MARCH 31, 2008
===============================================================================
ASSETS
Investments in securities, at amortized cost (Note 1)............................. $ 708,654,986
Repurchase agreements............................................................. 703,000,000
Cash.............................................................................. 780,731
Accrued interest receivable....................................................... 1,172,950
Prepaid expenses.................................................................. 30,371
------------------
Total assets............................................................... 1,413,639,038
------------------
LIABILITIES
Payable to affiliates*............................................................ 315,093
Accrued expenses.................................................................. 183,756
Dividends payable................................................................. 458,790
Other Payables.................................................................... 90
------------------
Total liabilities.......................................................... 957,729
------------------
Net assets........................................................................ $ 1,412,681,309
==================
SOURCE OF NET ASSETS
Net capital paid in on shares of capital stock (Note 4)........................... $ 1,412,681,309
------------------
Net assets........................................................................ $ 1,412,681,309
==================
Net asset value, per share (Note 4):
Class Name Net Assets Shares Outstanding Net Asset Value
Institutional Shares........................ $544,745,587 544,745,587 $1.00
Institutional Service Shares................ $331,209,254 331,209,254 $1.00
Investor Shares............................. $270,278,579 270,278,579 $1.00
Short Term Income Shares.................... $174,840,009 174,840,009 $1.00
Retail Shares............................... $20,976,329 20,976,329 $1.00
Pinnacle Shares............................. $70,631,551 70,631,551 $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 YEAR ENDED MARCH 31, 2008
===============================================================================
INVESTMENT INCOME
Income:
Interest........................................................................ $ 54,947,009
------------------
Expenses: (Note 2)
Investment management fee....................................................... 1,556,757
Administration fee.............................................................. 648,649
Shareholder servicing fee (Institutional Service Shares)........................ 637,759
Shareholder servicing fee (Investor Shares)..................................... 511,461
Shareholder servicing fee (Short Term Income Shares)............................ 377,320
Shareholder servicing fee (Retail Shares)....................................... 8,144
Distribution fee (Investor Shares).............................................. 409,169
Distribution fee (Short Term Income Shares)..................................... 679,176
Distribution fee (Retail Shares)................................................ 21,174
Custodian expenses.............................................................. 56,837
Shareholder servicing and related shareholder expenses+......................... 420,693
Legal, compliance and filing fees............................................... 171,517
Audit and accounting............................................................ 187,275
Trustees' fees and expenses..................................................... 83,408
Other........................................................................... 29,090
------------------
Total expenses.................................................................. 5,798,429
Less: Fees waived (Note 2)............................................... (596,034)
Expense paid indirectly (Note 2)................................... (12,014)
------------------
Net expenses.................................................................... 5,190,381
Net investment income........................................................... 49,756,628
REALIZED GAIN (LOSS) ON INVESTMENTS
Net realized gain/loss on investments............................................... -0-
------------------
Increase in net assets from operations.............................................. $ 49,756,628
==================
+ Includes class specific transfer agency expenses of $125,394, $51,021,
$102,270, $75,982, $1,594, and $11,291 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
FOR THE YEARS ENDED MARCH 31, 2008 AND 2007
===============================================================================
2008 2007
INCREASE (DECREASE) IN NET ASSETS ---- ----
Operations:
Net investment income......................................... $ 49,756,628 $ 43,582,659
Net realized gain (loss) on investments....................... -0- -0-
--------------- ----------------
Increase in net assets from operations............................ 49,756,628 43,582,659
Dividends to shareholders from net investment income:
Institutional Shares.......................................... (26,167,548) (30,970,760)
Institutional Service Shares.................................. (9,579,659) (10,279,709)
Investor Shares............................................... (7,173,722) (449,775)
Short Term Income Shares...................................... (4,577,752) (309,804)
Retail Shares................................................. (62,001) (5,127)
Pinnacle Shares............................................... (2,195,946) (1,567,484)
--------------- ----------------
Total dividends to shareholders.......................... (49,756,628) (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 4):
Institutional Shares.......................................... (45,508,503) (239,459,937)
Institutional Service Shares.................................. 82,247,669 (55,206,814)
Investor Shares............................................... 82,110,572 134,910,723
Short Term Income Shares...................................... 136,417,283 22,663,323
Retail Shares................................................. 20,604,784 371,545
Pinnacle Shares............................................... 31,003,640 11,123,008
Net asset value of shares issued in connection with merger Short Term
Government Class A into Short Term Income Shares (Note 5)..... 15,759,403 -0-
Net asset value of shares issued in connection with merger Short Term
Government Class B into Investor Shares (Note 5).............. 53,257,284 -0-
--------------- ----------------
Total capital share transactions........................ 375,892,132 (125,598,152)
--------------- ----------------
Total increase (decrease) .................................... 375,892,132 (125,598,152)
--------------- ----------------
Net assets:
Beginning of year............................................. 1,036,789,177 1,162,387,329
--------------- ----------------
End of year................................................... $ 1,412,681,309 $ 1,036,789,177
=============== ================
Undistributed net investment income............................... $ -0- $ -0-
=============== ================
-------------------------------------------------------------------------------
DAILY INCOME FUND
U.S. TREASURY PORTFOLIO
FINANCIAL HIGHLIGHTS
===============================================================================
For the Years Ended March 31,
------------------------------------------------------------
Institutional shares 2008 2007 2006 2005 2004
-------------------- --------- --------- --------- --------- ---------
Per Share Operating Performance:
(for a share outstanding throughout the year)
Net asset value, beginning of year............................... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
--------- --------- --------- --------- ---------
Income from investment operations:
Net investment income.......................................... 0.041 0.049 0.034 0.014 0.009
Net realized and unrealized gain(loss) on investments......... -- -- 0.000 0.000 0.000
--------- --------- --------- --------- ---------
Total from investment operations............................... 0.041 0.049 0.034 0.014 0.009
Less distributions from:
Dividends from net investment income........................... (0.041) (0.049) (0.034) (0.014) (0.009)
Net realized gain(loss) on investment.......................... (--) -- (0.000) (0.000) (0.000)
--------- --------- --------- --------- ---------
Total Distributions............................................ (0.041) (0.049) (0.034) (0.014) (0.009)
--------- --------- --------- --------- ---------
Net asset value, end of year..................................... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
========= ========= ========= ========= =========
Total Return..................................................... 4.18% 5.02% 3.48% 1.44% 0.91%
Ratios/Supplemental Data
Net assets, end of year (000's).................................. $ 544,746 $ 590,254 $ 829,714 $ 484,434 $ 466,041
Ratios to average net assets:
Expenses (net of fees waived) (a).............................. 0.20% 0.20% 0.20% 0.20% 0.20%
Net investment income.......................................... 4.17% 4.89% 3.51% 1.45% 0.90%
Management and administration fees waived...................... 0.03% 0.03% 0.05% 0.03% 0.04%
Expenses paid indirectly....................................... 0.00% 0.00% 0.00% 0.00% 0.00%
For the Years Ended March 31,
------------------------------------------------------------
Institutional Service shares 2008 2007 2006 2005 2004
---------------------------- --------- --------- --------- --------- ---------
Per Share Operating Performance:
(for a share outstanding throughout the year)
Net asset value, beginning of year............................... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
--------- --------- --------- --------- ---------
Income from investment operations:
Net investment income.......................................... 0.039 0.047 0.032 0.012 0.007
Net realized and unrealized gain(loss) on investments......... -- -- 0.000 0.000 0.000
--------- --------- --------- --------- ---------
Total from investment operations............................... 0.039 0.047 0.032 0.012 0.007
Less distributions from:
Dividends from net investment income........................... (0.039) (0.047) (0.032) (0.012) (0.007)
Net realized gain(loss) on investment.......................... (--) -- (0.000) (0.000) (0.000)
--------- --------- --------- --------- ---------
Total Distributions............................................ (0.039) (0.047) (0.032) (0.012) (0.007)
--------- --------- --------- --------- ---------
Net asset value, end of year..................................... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
========= ========= ========= ========= =========
Total Return..................................................... 3.92% 4.76% 3.22% 1.19% 0.66%
Ratios/Supplemental Data
Net assets, end of year (000's).................................. $ 331,209 $ 248,962 $ 304,168 $ 236,621 $ 261,931
Ratios to average net assets:
Expenses (net of fees waived) (a).............................. 0.45% 0.45% 0.45% 0.45% 0.45%
Net investment income.......................................... 3.76% 4.65% 3.17% 1.18% 0.66%
Management and administration fees waived...................... 0.03% 0.03% 0.05% 0.03% 0.04%
Expenses paid indirectly....................................... 0.00% 0.00% 0.00% 0.00% 0.00%
(a) Includes expenses paid indirectly.
The accompanying notes are an integral part of these financial statements.
-------------------------------------------------------------------------------
DAILY INCOME FUND
U.S. TREASURY PORTFOLIO
FINANCIAL HIGHLIGHTS (CONTINUED)
===============================================================================
Investor shares Commencement of Operations
---------------- Year Ended February 21, 2007 through
Per Share Operating Performance: March 31, 2008 March 31, 2007
-------------- --------------
(for a share outstanding throughout the year)
Net asset value, beginning of year..................... $ 1.00 $ 1.00
--------- ----------
Income from investment operations:
Net investment income............................... 0.037 0.005
Net realized and unrealized gain(loss) on investments -- --
--------- ----------
Total from investment operations.................... 0.037 0.005
Less distributions from:
Dividends from net investment income................ (0.037) (0.005)
Net realized gain on investments.................... -- --
--------- ----------
Total Distributions................................. (0.037) (0.005)
--------- ----------
Net asset value, end of year........................... $ 1.00 $ 1.00
========= ==========
Total Return........................................... 3.73% 0.50%(a)
Ratios/Supplemental Data
Net assets, end of year (000's)........................ $ 270,279 $ 134,911
Ratios to average net assets:
Expenses (net of fees waived) (b)................... 0.63% 0.63%(c)
Net investment income............................... 3.51% 4.62%(c)
Administration fees waived.......................... 0.03% 0.03%(c)
Distribution fees waived............................ 0.05% 0.05%(c)
Expenses paid indirectly............................ 0.00% 0.00%(c)
Commencement of Operations
Short Term Income shares Year Ended November 2, 2006 through
------------------------ March 31, 2008 March 31, 2007
-------------- --------------
Per Share Operating Performance:
(for a share outstanding throughout the year)
Net asset value, beginning of year..................... $ 1.00 $ 1.00
--------- ----------
Income from investment operations:
Net investment income............................... 0.034 0.018
Net realized and unrealized gain(loss) on investments -- --
--------- ----------
Total from investment operations.................... 0.034 0.018
Less distributions from:
Dividends from net investment income................ (0.034) (0.018)
Net realized gain on investments.................... -- --
--------- ----------
Total Distributions................................. (0.034) (0.018)
--------- ----------
Net asset value, end of year........................... $ 1.00 $ 1.00
========= ==========
Total Return........................................... 3.46% 1.80%(a)
Ratios/Supplemental Data
Net assets, end of year (000's)........................ $ 174,840 $ 22,663
Ratios to average net assets:
Expenses (net of fees waived) (b)................... 0.90% 0.90%(c)
Net investment income............................... 3.03% 4.32%(c)
Administration fees waived.......................... 0.03% 0.03%(c)
Distribution fee waiver............................. 0.03% 0.03%(c)
Expenses paid indirectly............................ 0.00% 0.00%(c)
(a) Unannualized
(b) Includes expenses paid indirectly
(c) Annualized
The accompanying notes are an integral part of these financial statements.
-------------------------------------------------------------------------------
===============================================================================
Retail shares Commencement of Operations
-------------- Year Ended December 12, 2006 through
Per Share Operating Performance: March 31,2008 March 31, 2007
------------- --------------
(for a share outstanding throughout the year)
Net asset value, beginning of year..................... $ 1.00 $ 1.00
--------- ----------
Income from investment operations:
Net investment income............................... 0.033 0.013
Net realized and unrealized gain(loss) on investments -- --
--------- ----------
Total from investment operations.................... 0.033 0.013
--------- ----------
Less distributions from:
Dividends from net investment income................ (0.033) (0.013)
Net realized gain on investments.................... -- --
--------- ----------
Total Distributions................................. (0.033) (0.013)
--------- ----------
Net asset value, end of year........................... $ 1.00 $ 1.00
========= ==========
Total Return........................................... 3.36% 1.28%(a)
Ratios/Supplemental Data
Net assets, end of year (000's)........................ $ 20,976 $ 371
Ratios to average net assets:
Expenses (net of fees waived) (b)................... 0.99% 1.00%(c)
Net investment income............................... 1.90% 4.22%(c)
Administration fees waived.......................... 0.03% 0.03%(c)
Distribution fees waived............................ 0.14% 0.10%(c)
Transfer Agency Account fees waived................. -- 0.03%(c)
Expenses paid indirectly............................ 0.00% 0.00%(c)
For the Years Ended March 31,
Pinnacle shares 2008 2007 2006 2005 2004
--------------- ---- ---- ---- ---- ----
Per Share Operating Performance:
(for a share outstanding throughout the year
Net asset value, beginning of year..................... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
--------- --------- --------- -------- --------
Income from investment operations:
Net investment income............................... 0.041 0.049 0.034 0.014 0.009
Net realized and unrealized gain(loss) on investments -- -- 0.000 0.000 0.000
--------- --------- --------- -------- --------
Total from investment operations.................... 0.041 0.049 0.034 0.014 0.009
Less distributions from:
Dividends from net investment income................ (0.041) (0.049) (0.034) (0.014) (0.009)
Net realized gain(loss) on investment............... -- -- (0.000) (0.000) (0.000)
--------- --------- ---------- -------- --------
Total Distributions................................. (0.041) (0.049) (0.034) (0.014) (0.009)
--------- --------- ---------- -------- --------
Net asset value, end of year........................... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
========= ========= ========== ======== ========
Total Return........................................... 4.18% 5.02% 3.48% 1.44% 0.91%
Ratios/Supplemental Data
Net assets, end of year (000's)........................ $ 70,632 $ 39,628 $ 28,505 $ 39,809 $ 29,252
Ratios to average net assets:
Expenses (net of fees waived)(b).................... 0.20% 0.20% 0.20% 0.20% 0.20%
Net investment income............................... 3.89% 4.93% 3.51% 1.45% 0.90%
Management and administration fees waived........... 0.03% 0.03% 0.05% 0.03% 0.04%
Expenses paid indirectly............................ 0.00% 0.00% 0.00% 0.00% 0.00%
(a) Unannualized
(b) Includes expenses paid indirectly
(c) Annualized
-------------------------------------------------------------------------------
DAILY INCOME FUND
U.S. GOVERNMENT PORTFOLIO
EXPENSE CHART
FOR THE SIX MONTHS ENDED MARCH 31, 2008
(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 October 1, 2007 through March 31, 2008.
ACTUAL EXPENSES
The first line of the table below provides information about actual account
values and actual expenses. You may use information in this line, together with
the amount you invested, to estimate the expenses that you paid over the period.
Simply divide your account value by $1,000 (for example, an $8,600 account value
divided by $1,000 = 8.6), then multiply the result by the number in the first
line under the heading entitled "Expenses Paid During the Period" to estimate
the expenses you paid on your account during this period.
HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES
The second line of the table below provides information about hypothetical
account values and hypothetical expenses based on the Fund's actual expense
ratio and an assumed rate of return of 5% per year before expenses, which is not
the Fund's actual return. The hypothetical account values and expenses may not
be used to estimate the actual ending account balance or expenses you paid for
the period. You may use this information to compare the ongoing costs of
investing in the Fund and other funds. To do so, compare this 5% hypothetical
example with the 5% hypothetical examples that appear in the shareholder reports
of the other funds.
Please note that the expenses shown in the table are meant to highlight your
ongoing costs only and do not reflect any transactional costs, such as sales
charges (loads), redemption fees, or exchange fees that you may incur in other
mutual funds. Therefore, the second line of the table is useful in comparing
ongoing costs only, and will not help you determine the relative total costs of
owning different funds.
---------------------------------------------------------------------------------------------------------------------------
Beginning Account Ending Account Value Expenses Paid Annualized
Institutional Shares Value 10/01/07 03/31/08 During the Period Expense Ratio*
---------------------------------------------------------------------------------------------------------------------------
Actual $1,000.00 $1,019.40 $1.11 0.22%
---------------------------------------------------------------------------------------------------------------------------
Hypothetical (5% return before $1,000.00 $1,023.90 $1.11 0.22%
expenses)
---------------------------------------------------------------------------------------------------------------------------
Beginning Account Ending Account Value Expenses Paid Annualized
Institutional Service Shares Value 10/01/07 03/31/08 During the Period Expense Ratio*
---------------------------------------------------------------------------------------------------------------------------
Actual $1,000.00 $1,018.30 $2.27 0.45%
---------------------------------------------------------------------------------------------------------------------------
Hypothetical (5% return before $1,000.00 $1,022.75 $2.28 0.45%
expenses)
---------------------------------------------------------------------------------------------------------------------------
Beginning Account Ending Account Value Expenses Paid Annualized
Retail Shares Value 10/01/07 03/31/08 During the Period Expense Ratio*
---------------------------------------------------------------------------------------------------------------------------
Actual $1,000.00 $1,015.50 $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 During Annualized
Advantage Shares Value 10/01/07 03/31/08 the Period Expense Ratio*
---------------------------------------------------------------------------------------------------------------------------
Actual $1,000.00 $1,015.40 $5.14 1.02%
---------------------------------------------------------------------------------------------------------------------------
Hypothetical (5% return before $1,000.00 $1,019.90 $5.15 1.02%
expenses)
---------------------------------------------------------------------------------------------------------------------------
* Expenses are equal to the Fund's annualized expense ratios multiplied by
the average account value over the period (October 1, 2007 through March
31, 2008), multiplied by 183/366 (to reflect the most recent fiscal
half-year).
The accompanying notes are an integral part of these financial statements.
-------------------------------------------------------------------------------
DAILY INCOME FUND
U.S. GOVERNMENT PORTFOLIO
SCHEDULE OF INVESTMENTS
MARCH 31, 2008
===============================================================================
Face Maturity Current Value
Amount Date Coupon (1) (Note 1)
------------ ------ ---------- --------
Loan Participations (4.87%)
-----------------------------------------------------------------------------------------------------------------------------------
$ 10,000,000 Army & Air Force Exchange Service with JPMorgan Chase as agent 04/29/08 3.29% $ 10,000,000
30,000,000 Army & Air Force Exchange Service with JPMorgan Chase as agent 06/24/08 2.68 30,000,000
-------------- -------------
40,000,000 Total Loan Participations 40,000,000
-------------- -------------
Repurchase Agreements (39.29%)
-----------------------------------------------------------------------------------------------------------------------------------
$ 195,000,000 Bank of America Securities,LLC,purchased on 03/31/08, repurchase
proceeds at maturity $195,011,104(Collateralized by $191,549,606
GNMA, 5.50% to 7.00%, due 01/15/38 to 03/15/43
value $198,900,001) 04/01/08 2.05% $ 195,000,000
128,000,000 UBS Securities, LLC, purchased on 03/31/08, repurchase
proceeds at maturity$128,008,533(Collateralized by $168,331,000,
RFIN, 0.00%, due 07/15/08 to 04/15/30 value $130,563,967) 04/01/08 2.40 128,000,000
-------------- -------------
323,000,000 Total Repurchase Agreements 323,000,000
-------------- -------------
U.S. Government Agency Discount Notes (41.35%)
-----------------------------------------------------------------------------------------------------------------------------------
$ 121,000,000 Federal Farm Credit Bank 04/01/08 1.04% $ 121,000,000
29,000,000 Federal Farm Credit Bank 04/03/08 1.09 28,998,244
160,000,000 Federal Home Loan Bank 04/02/08 1.55 159,993,111
5,000,000 Federal Home Loan Bank 04/04/08 4.58 4,998,133
20,000,000 Federal Home Loan Bank 01/23/09 3.63 20,013,633
5,000,000 Federal Home Loan Mortgage Corporation 07/21/08 4.73 4,930,101
-------------- -------------
340,000,000 Total U.S. Government Agency Discount Notes 339,933,222
-------------- -------------
U.S. Government Agency Medium Term Notes (14.66%)
-----------------------------------------------------------------------------------------------------------------------------------
$ 12,500,000 Federal Farm Credit Bank 02/05/09 3.00% $ 12,500,000
20,000,000 Federal Farm Credit Bank 04/01/09 2.50 20,000,000
5,000,000 Federal Home Loan Bank 07/16/08 4.75 5,003,045
20,000,000 Federal Home Loan Bank (2) 10/17/08 2.63 20,000,000
15,000,000 Federal Home Loan Bank 11/28/08 4.57 15,000,000
15,000,000 Federal Home Loan Bank 01/16/09 3.75 15,000,000
5,000,000 Federal Home Loan Bank 03/04/09 3.00 5,000,000
3,000,000 Federal Home Loan Mortgage Corporation 06/30/08 5.28 2,983,796
10,000,000 Federal Home Loan Mortgage Corporation 01/07/09 4.20 10,000,000
15,000,000 Federal Home Loan Mortgage Corporation 03/30/09 3.00 15,000,000
-------------- -------------
120,500,000 Total U.S. Government Agency Medium Term Notes 120,486,841
-------------- -------------
Total Investments (100.17%) (Cost $823,420,063+) 823,420,063
Liabilities in excess of cash and other assets (-0.17%) (1,426,178)
-------------
Net Assets (100.00%) $ 821,993,885
=============
+ Aggregate cost for federal income tax purposes is identical.
The accompanying notes are an integral part of these financial statements.
-------------------------------------------------------------------------------
DAILY INCOME FUND
U.S. GOVERNMENT PORTFOLIO
SCHEDULE OF INVESTMENTS
MARCH 31, 2008
===============================================================================
FOOTNOTES:
1) The interest rate shown reflects the security's current coupon, unless
yield is available.
2) Rate changes daily based upon Federal Funds Effective Rate plus 0.125%
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 $ 698,003,121 84.77%
31 through 60 Days 27,500,000 3.34
61 through 90 Days 30,000,000 3.64
91 through 120 Days 12,916,942 1.57
121 through 180 Days -- --
Over 180 Days 55,000,000 6.68
------------------------------- ---------------------------- -----------------------
------------------------------- ---------------------------- -----------------------
Total $823,420,063 100.00%
------------------------------- ---------------------------- -----------------------
The accompanying notes are an integral part of these financial statements.
-------------------------------------------------------------------------------
DAILY INCOME FUND
U.S. GOVERNMENT PORTFOLIO
STATEMENT OF ASSETS AND LIABILITIES
MARCH 31, 2008
===============================================================================
ASSETS
Investments in securities, at amortized cost (Note 1)............................. $ 500,420,063
Repurchase agreements............................................................. 323,000,000
Accrued interest receivable....................................................... 1,046,435
Prepaid expenses.................................................................. 9,179
------------------
Total assets............................................................... 824,475,677
------------------
LIABILITIES
Payable to affiliates*............................................................ 282,623
Due to Custodian.................................................................. 1,857,576
Accrued expenses.................................................................. 141,565
Dividends payable................................................................. 197,902
Other payable..................................................................... 2,126
------------------
Total liabilities.......................................................... 2,481,792
------------------
Net assets........................................................................ $ 821,993,885
==================
SOURCE OF NET ASSETS
Net capital paid in on shares of capital stock (Note 4)........................... $ 822,018,205
Undistributed net investment income............................................... 42,484
Accumulated net realized loss..................................................... (66,804)
------------------
Net assets........................................................................ $ 821,993,885
==================
Net asset value, per share (Note 4):
Class Name Net Assets Shares Outstanding Net Asset Value
Institutional Shares........................ $10,473 10,473 $1.00
Institutional Service Shares................ $335,701 335,729 $1.00
Retail Shares............................... $159,268,991 159,281,935 $1.00
Advantage Shares............................ $662,378,720 662,432,552 $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 YEAR ENDED MARCH 31, 2008
===============================================================================
INVESTMENT INCOME
Income:
Interest........................................................................ $ 19,629,599
------------------
Expenses: (Note 2)
Investment management fee....................................................... 537,123
Administration fee.............................................................. 223,801
Shareholder servicing fee (Institutional Service Shares)........................ 662
Shareholder servicing fee (Retail Shares)....................................... 272,642
Shareholder servicing fee (Advantage Shares).................................... 845,677
Distribution fee (Retail Shares)................................................ 708,869
Distribution fee (Advantage Shares)............................................. 2,537,030
Sub-Accounting fee (Advantage Shares)........................................... 338,271
Custodian expenses.............................................................. 34,308
Shareholder servicing and related shareholder expenses+......................... 80,444
Legal, compliance and filing fees............................................... 231,277
Audit and accounting............................................................ 127,828
Trustees' fees and expenses..................................................... 25,928
Other........................................................................... 6,474
------------------
Total expenses.................................................................. 5,970,334
Less: Fees waived (Note 2)........................................ (1,428,168)
------------------
Net expenses.................................................................... 4,542,166
------------------
Net investment income........................................................... 15,087,433
REALIZED GAIN (LOSS) ON INVESTMENTS
Net realized gain (loss) on investments............................................. (54,070)
------------------
Increase in net assets from operations.............................................. $ 15,033,363
==================
+ Includes class specific transfer agency expenses of $4, $53, and $53,760
for the Institutional, Institutional Service, and Retail Shares
respectively.
The accompanying notes are an integral part of these financial statements.
-------------------------------------------------------------------------------
DAILY INCOME FUND
U.S. GOVERNMENT PORTFOLIO
STATEMENTS OF CHANGES IN NET ASSETS
===============================================================================
Commencement of Operations
Year Ended October 30, 2006 through
March 31, 2008 March 31, 2007
-------------- --------------
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income......................................... $ 15,087,433 $ 2,891,319
Net realized gain (loss) on investments....................... (54,070) 5,230
--------------- ----------------
Increase in net assets from operations............................ 15,033,363 2,896,549
Dividends to shareholders from net investment income:
Institutional Shares ......................................... (455) (244,853)
Institutional Service Shares ................................. (10,130) (17)
Retail Shares................................................. (3,686,594) (189,222)
Advantage Shares.............................................. (11,390,254) (2,457,227)
--------------- ----------------
Total dividends to shareholders.......................... (15,087,433) (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 4):
Institutional Shares.......................................... 473 10,000
Institutional Service Shares.................................. 325,729 10,000
Retail Shares................................................. 46,204,413 57,051,170
Advantage Shares.............................................. 468,605,201 193,827,351
Net asset value of shares issued in connection with merger....
Cortland Government into Retail Shares (Note 5)............... 56,013,618 -0-
--------------- ----------------
Total capital share transactions........................ 571,149,434 250,898,521
--------------- ----------------
Total increase ............................................... 571,095,364 250,898,521
Net assets:
Beginning of year............................................. 250,898,521 -0-
--------------- ----------------
End of year.................................................. $ 821,993,885 $ 250,898,521
=============== ================
Undistributed net investment income............................... $ 42,484 $ -0-
=============== ================
The accompanying notes are an integral part of these financial statements.
DAILY INCOME FUND
U.S. GOVERNMENT PORTFOLIO
FINANCIAL HIGHLIGHTS
===============================================================================
Institutional shares Commencement of Operations
--------------------- Year Ended October 30, 2006 through
Per Share Operating Performance: March 31, 2008 March 31, 2007
-------------- --------------
(for a share outstanding throughout the year)
Net asset value, beginning of year..................... $ 1.00 $ 1.00
--------- ----------
Income from investment operations:
Net investment income............................... 0.045 0.009
Net realized and unrealized gain(loss)on investments (0.000) 0.000
--------- ----------
Total from investment operations.................... 0.045 0.009
Less distributions from:
Dividends from net investment income................ (0.045) (0.009)
Net realized gain on investments.................... -- --
--------- ----------
Total Distributions................................. (0.045) (0.009)
--------- ----------
Net asset value, end of year........................... $ 1.00 $ 1.00
========= ==========
Total Return........................................... 4.54% 0.88%(a)
Ratios/Supplemental Data
Net assets, end of year (000's)........................ $ 10 $ 10
Ratios to average net assets:
Expenses (net of fees waived) (b)................... 0.21% 0.20%(c)
Net investment income............................... 4.44% 5.10%(c)
Management and administration fees waived........... 0.09% 0.16%(c)
Institutional Service shares Commencement of Operations
---------------------------- Year Ended March 19, 2007 through
Per Share Operating Performance: March 31, 2008 March 31, 2007
-------------- --------------
(for a share outstanding throughout the year)
Net asset value, beginning of year..................... $ 1.00 $ 1.00
--------- ----------
Income from investment operations:
Net investment income............................... 0.042 0.002
Net realized and unrealized gain(loss)on investments (0.000) 0.000
--------- ----------
Total from investment operations.................... 0.042 0.002
Less distributions from:
Dividends from net investment income................ (0.042) (0.002)
Net realized gain on investments.................... -- --
--------- ----------
Total Distributions................................. (0.042) (0.002)
--------- ----------
Net asset value, end of year........................... $ 1.00 $ 1.00
========= ==========
Total Return........................................... 4.31% 0.17%(a)
Ratios/Supplemental Data
Net assets, end of year (000's)........................ $ 336 $ 10
Ratios to average net assets:
Expenses (net of fees waived) (b)................... 0.45% 0.45%(c)
Net investment income............................... 3.82% 4.85%(c)
Management and administration fees waived........... 0.09% 0.16%(c)
(b) Unannualized
(c) Includes expenses paid indirectly.
(d) Annualized
The accompanying notes are an integral part of these financial statements.
-------------------------------------------------------------------------------
===============================================================================
Retail shares Commencement of Operations
------------- Year Ended December 12, 2006 through
Per Share Operating Performance: March 31, 2008 March 31, 2007
-------------- --------------
(for a share outstanding throughout the year)
Net asset value, beginning of year..................... $ 1.00 $ 1.00
--------- ----------
Income from investment operations:
Net investment income............................... 0.037 0.013
Net realized and unrealized gain(loss)on investments (0.000) 0.000
--------- ----------
Total from investment operations.................... 0.037 0.013
Less distributions from:
Dividends from net investment income................ (0.037) (0.013)
Net realized gain on investments.................... -- --
--------- ----------
Total Distributions................................. (0.037) (0.013)
--------- ----------
Net asset value, end of year........................... $ 1.00 $ 1.00
========= ==========
Total Return........................................... 3.73% 1.30%(a)
Ratios/Supplemental Data
Net assets, end of year (000's)........................ $159,269 $ 57,051
Ratios to average net assets:
Expenses (net of fees waived) (b)................... 1.00% 1.00%(c)
Net investment income............................... 3.38% 4.29%(c)
Management and administration fees waived........... 0.09% 0.16%(c)
Distribution fees waived............................ 0.13% 0.10%(c)
Transfer Agency Account fees waived................. -- 0.03%(c)
Advantage shares Commencement of Operations
---------------- Year Ended December 2, 2006 through
Per Share Operating Performance: March 31, 2008 March 31, 2007
-------------- --------------
(for a share outstanding throughout the year)
Net asset value, beginning of year..................... $ 1.00 $ 1.00
--------- ----------
Income from investment operations:
Net investment income............................... 0.036 0.018
Net realized and unrealized gain(loss)on investments (0.000) 0.000
--------- ----------
Total from investment operations.................... 0.036 0.018
Less distributions from:
Dividends from net investment income................ (0.036) (0.018)
Net realized gain on investments.................... -- --
--------- ----------
Total Distributions................................. (0.036) (0.018)
--------- ----------
Net asset value, end of year........................... $ 1.00 $ 1.00
========= ==========
Total Return........................................... 3.71% 1.77%(a)
Ratios/Supplemental Data
Net assets, end of year (000's)........................ $ 662,379 $ 193,827
Ratios to average net assets:
Expenses (net of fees waived) (b)................... 1.02% 1.02%(c)
Net investment income............................... 3.37% 4.26%(c)
Management and administration fees waived........... 0.09% 0.16%(c)
Distribution fees waived............................ 0.16% 0.16%(c)
Sub-Accounting fees waived.......................... 0.10% 0.10%(c)
(a) Unannualized
(b) Includes expenses paid indirectly.
(a) Annualized(c)
The accompanying notes are an integral part of these financial statements.
-------------------------------------------------------------------------------
DAILY INCOME FUND
MUNICIPAL PORTFOLIO
EXPENSE CHART
FOR THE SIX MONTHS ENDED MARCH 31, 2008
(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 October 1, 2007 through March 31, 2008.
ACTUAL EXPENSES
The first line of the table below provides information about actual account
values and actual expenses. You may use information in this line, together with
the amount you invested, to estimate the expenses that you paid over the period.
Simply divide your account value by $1,000 (for example, an $8,600 account value
divided by $1,000 = 8.6), then multiply the result by the number in the first
line under the heading entitled "Expenses Paid During the Period" to estimate
the expenses you paid on your account during this period.
HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES
The second line of the table below provides information about hypothetical
account values and hypothetical expenses based on the Fund's actual expense
ratio and an assumed rate of return of 5% per year before expenses, which is not
the Fund's actual return. The hypothetical account values and expenses may not
be used to estimate the actual ending account balance or expenses you paid for
the period. You may use this information to compare the ongoing costs of
investing in the Fund and other funds. To do so, compare this 5% hypothetical
example with the 5% hypothetical examples that appear in the shareholder reports
of the other funds.
Please note that the expenses shown in the table are meant to highlight your
ongoing costs only and do not reflect any transactional costs, such as sales
charges (loads), redemption fees, or exchange fees that you may incur in other
mutual funds. Therefore, the second line of the table is useful in comparing
ongoing costs only, and will not help you determine the relative total costs of
owning different funds.
---------------------------------------------------------------------------------------------------------------------------
Beginning Account Ending Account Value Expenses Paid Annualized
Institutional Shares Value 10/01/07 03/31/08 During the Period Expense Ratio*
---------------------------------------------------------------------------------------------------------------------------
Actual $1,000.00 $1,015.20 $1.01 0.20%
---------------------------------------------------------------------------------------------------------------------------
Hypothetical (5% return before $1,000.00 $1,024.00 $1.01 0.20%
expenses)
---------------------------------------------------------------------------------------------------------------------------
Beginning Account Ending Account Value Expenses Paid Annualized
Institutional Service Shares Value 10/01/07 03/31/08 During the Period Expense Ratio*
---------------------------------------------------------------------------------------------------------------------------
Actual $1,000.00 $1,013.80 $2.32 0.46%
---------------------------------------------------------------------------------------------------------------------------
Hypothetical (5% return before $1,000.00 $1,022.70 $2.33 0.46%
expenses)
---------------------------------------------------------------------------------------------------------------------------
Beginning Account Ending Account Value Expenses Paid Annualized
Short Term Income Shares Value 10/01/07 03/31/08 During the Period Expense Ratio*
---------------------------------------------------------------------------------------------------------------------------
Actual $1,000.00 $1,012.30 $3.82 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 Value 10/01/07 03/31/08 During the Period Expense Ratio*
---------------------------------------------------------------------------------------------------------------------------
Actual $1,000.00 $1,011.10 $5.03 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 Value 10/01/07 03/31/08 During the Period Expense Ratio*
---------------------------------------------------------------------------------------------------------------------------
Actual $1,000.00 $1,011.00 $5.13 1.02%
---------------------------------------------------------------------------------------------------------------------------
Hypothetical (5% return before $1,000.00 $1,019.90 $5.15 1.02%
expenses)
---------------------------------------------------------------------------------------------------------------------------
* Expenses are equal to the Fund's annualized expense ratios multiplied by
the average account value over the period (October 1, 2007 through March
31, 2008), multiplied by 183/366 (to reflect the most recent fiscal
half-year).
-------------------------------------------------------------------------------
DAILY INCOME FUND
MUNICIPAL PORTFOLIO
SCHEDULE OF INVESTMENTS
MARCH 31, 2008
===============================================================================
Ratings (1)
-----------------
Face Maturity Current Value Standard
Amount Date Coupon (2) (Note 1) Moody's & Poor's
--------- ---- ---------- -------- ------- --------
Put Bonds (3) (1.00%)
-----------------------------------------------------------------------------------------------------------------------------------
$ 860,000 City of Dayton, KY Industrial Building RB
LOC Fifth Third Bank 04/01/08 4.10% $ 860,000 P-1 A-1+
1,515,000 Michigan Oakland County EDC RB (Orchard - Maple Project)
LOC LaSalle National Bank, N.A. 05/15/08 3.68 1,515,000 P-1 A-1+
2,500,000 Michigan Strategic Fund
LOC Bank of Nova Scotia 04/01/08 3.85 2,500,000 P-1 A-1+
------------ -----------
4,875,000 Total Put Bonds 4,875,000
------------ -----------
Tax Exempt Commercial Paper (6.67%)
-----------------------------------------------------------------------------------------------------------------------------------
$ 2,000,000 City of Milwaukee, WI 2008 Program - Series C2
LOC State Street Bank & Trust Company 05/02/08 2.40% $ 2,000,000 A-1+
1,000,000 City of St. Louis, MO Airport RN
(Lambert - St. Louis International Airport) - Series 2004
LOC JPMorgan Chase Bank, N.A. 07/02/08 2.00 1,000,000 P-1 A-1+
3,000,000 Hillsborough County Aviation Authority Airport Facilities Notes,FL
LOC Landesbank Baden Wurtemburg 06/05/08 1.90 3,000,000 P-1 A-1+
2,000,000 Jacksonville, FL Electric Authority RB 04/02/08 2.35 2,000,000 VMIG-1 A-1+
5,000,000 New Jersey EDA Exempt Facility RB (Keystone-1992 Project)
LOC BNP Paribas 06/05/08 1.90 5,000,000 VMIG-1 A-1+
1,000,000 Oklahoma City, OK Water Utilities Trust - Series A
LOC State Street Bank & Trust Company 06/05/08 1.90 1,000,000 P-1 A-1+
5,000,000 Pendleton County, KY Multi-County Lease RB
LOC JPMorgan Chase Bank, N.A. 05/08/08 2.70 5,000,000 P-1 A-1+
3,700,000 San Antonio, Texas Water - Series A 07/02/08 1.90 3,700,000 P-1 A-1+
10,000,000 Washington D.C Metropolitan Transit
LOC Wachovia Bank, N.A. 07/02/08 1.85 10,000,000 P-1 A-1+
------------ -----------
32,700,000 Total Tax-Exempt Commercial Paper 32,700,000
------------ -----------
Tax Exempt General Obligation Notes & Bonds (18.43%)
-----------------------------------------------------------------------------------------------------------------------------------
$ 2,300,000 Bay Village, OH 07/19/08 3.73% $ 2,301,781 MIG-1
2,345,000 Clark County, OH BAN (4) 06/12/08 3.75 2,346,107
2,455,000 Concord, CO Metropolitan District Refunding & Improvement Bond
LOC Wells Fargo Bank 12/01/08 3.50 2,455,000 A-1+
1,099,400 Des Plaines, Illinois Park District (4) 12/15/08 1.80 1,104,740
1,600,000 Fairborn, OH Tax Increment RN - Series 2007
LOC US Bank, N.A. 09/12/08 3.75 1,606,269 P-1 A-1+
700,000 Fairfield County, OH BAN (4) 04/01/08 3.90 700,000
1,425,000 Federal Highway Grant Anticipation, AK - Series A (4) 08/01/08 3.76 1,433,045
1,000,000 Iowa Higher Education Loan Authority RB
LOC LaSalle National Bank, N.A. 05/20/08 3.75 1,000,968 SP-1
1,000,000 Iowa Higher Education Loan RAN
LOC US Bank, N.A. 05/20/08 3.70 1,001,033 SP-1+
1,292,000 Marion County, OH BAN (4) 05/01/08 3.72 1,292,388
3,685,000 Michigan Lowell Area Schools (4) 05/01/09 2.60 3,739,547
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)
-----------------------------------------------------------------------------------------------------------------------------------
$ 3,945,000 Michigan Public Educational Authority RB
LOC Bank of New York Mellon 08/22/08 4.50% $ 3,957,334 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) 01/15/09 2.93 2,827,292
10,000,000 Neshaminy, PA School District TRAN (4) 06/30/08 3.90 10,005,899
1,400,000 Newaygo Public School District, MI (4) 06/30/08 3.70 1,401,819
270,000 New Richmond, WI School District BAN 06/06/08 4.13 270,000 MIG-1
1,095,000 Ogilvie, MN Independent School District # 3
GO Aid Anticipation Certificates of Indebtedness-Series 2007B (4) 08/19/08 3.82 1,095,722
2,300,000 St. Louis, MO General Fund RB TAN 06/30/08 3.75 2,304,089 MIG-1 SP-1+
10,000,000 Texas State TRAN 08/28/08 3.68 10,031,813 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+
10,000,000 Will & Kendall County, IL Community Consolidated School
District No 202 10/01/08 1.50 10,049,671 SP-1+
8,500,000 Wisconsin Kettle Moraine School District
Tax & Revenue Anticipation Promisory Note (4). 09/03/08 3.72 8,501,014
------------ -----------
90,126,400 Total Tax Exempt General Obligation Notes & Bonds 90,325,531
------------ -----------
Variable Rate Demand Instruments - Private Placements (5) (3.21%)
-----------------------------------------------------------------------------------------------------------------------------------
$ 2,869,000 Anaheim, CA MHRB
(West Anaheim Royale Project) - Series 1985C
LOC Union Bank of California 12/01/15 3.15% $ 2,869,000 P-1 A-1
1,959,000 Anaheim, CA (West Anaheim Convalescent Home)
LOC Union Bank of California 12/01/15 3.15 1,959,000 P-1 A-1
2,848,000 Culver City, CA RDRB (Culver City Royale Project) - Series 1985
LOC Union Bank of California 12/01/15 3.15 2,848,000 P-1 A-1
1,500,000 Harford County, MD EDRB
(Harrigan Roller Company, Inc. Project) - Series 1984
LOC Dresdner Bank, A.G. 12/28/14 3.60 1,500,000 P-1 A-1
3,745,000 Howard County, MD RB
(The Bluffs & Hawthorne Apartment Facility) - Series 1995
LOC Allfirst Bank 12/01/20 2.38 3,745,000 VMIG-1
1,270,000 St. Cloud, MN (Kelly Inn Project) - Private Placement
LOC US Bank, N.A. 04/01/13 2.40 1,270,000 P-1 A-1+
1,545,600 West Jordan, UT IDRB
(The Lynn Partnership Nursing Home Project) - Series 1985
LOC Bank of America, N.A. 07/01/15 3.41 1,545,600 P-1 A-1+
------------ -----------
15,736,600 Variable Rate Demand Instruments - Private Placements 15,736,600
------------ -----------
Variable Rate Demand Instruments (5) (68.43%)
-----------------------------------------------------------------------------------------------------------------------------------
$ 5,200,000 ABN AMRO MuniTops Certificate Trust 2002-33
Port Authority of New York and New Jersey Consolidated Bonds -
One Hundred Twenty-Eighth Series
Insured by FSA 11/01/10 2.22% $ 5,200,000 VMIG-1
The accompanying notes are an integral part of these financial statements.
-------------------------------------------------------------------------------
DAILY INCOME FUND
MUNICIPAL PORTFOLIO
SCHEDULE OF INVESTMENTS (CONTINUED)
MARCH 31, 2008
===============================================================================
Ratings (1)
-----------------
Face Maturity Current Value Standard
Amount Date Coupon (2) (Note 1) Moody's & Poor's
--------- ---- ---------- -------- ------- --------
Variable Rate Demand Instruments (Continued) (5)
-----------------------------------------------------------------------------------------------------------------------------------
$ 2,040,000 Adams County, PA IDA RB (Say Plastic Inc. Project) - Series 2007
LOC Wachovia Bank, N.A. 08/01/32 2.25% $ 2,040,000 P-1 A-1+
1,345,000 Alabama Demopolis IDA (Gulf Opportunity Zone)
LOC Compass Bank 08/01/22 2.45 1,345,000 P-1 A-1
250,000 Appling County Development Authority, GA
(Georgia Power Hatch Project) 12/01/18 1.40 250,000 VIMG-1
5,000,000 Arizona Spear Custody Receipts Retated to IDA of Chandler (4)
LOC Deutsche Bank, A.G. 12/01/37 2.33 5,000,000
3,000,000 Bay Medical Center, FL Hospital Revenue Refunding Bonds
(Bay Medical Center Project) - Series 2007A
LOC Regions Bank 10/01/27 2.28 3,000,000 VMIG-1
650,000 BB & T Municipal Trust Floater Certificates - Series 4000
LOC Branch Banking And Trust Company 07/01/18 2.34 650,000 VMIG-1
475,000 Beaver County, PA IDA PCRB
(First Energy Generation Corp.) - Series B
LOC Royal Bank of Scotland, N.A. 12/01/41 2.16 475,000 VMIG-1 A-1+
5,200,000 Blue Springs, MO IDA MHRB
(Autumn Place Apartments Project) - Series 2004 - A1
Guaranteed by FNMA 08/15/37 2.15 5,200,000 VMIG-1
2,750,000 Broward County, FL HFA
(Sailboat Bend Artist Lofts Project - Series 2006
LOC Citibank, N.A. 04/15/38 2.37 2,750,000 A-1+
1,880,000 Calcasieu Parish Public Trust Authority Gulf Opportunity Zone RB
(Delta Equine Center LLC Project) - Series 2007(4)
LOC Branch Banking And Trust Company 01/01/32 2.38 1,880,000
1,150,000 Caledonia, WI IDRB
(Quick Cable Corpoation Project) - Series 1998
LOC Fifth Third Bank 12/01/18 2.34 1,150,000 P-1 A-1+
635,000 California Statewide Communities Development Authority RB
(North Peninsula Jewish Campus) - Series 2004
LOC Bank of America, N.A. 07/01/34 0.90 635,000 VMIG-1
5,355,000 Chicago, IL MHRB Putters Series 2054
LOC FHA/GNMA 12/20/39 2.56 5,355,000 VMIG-1
5,605,000 Chicago IL MHRB (Sankofa Housing Project) - Series 2007B
LOC Harris Trust 12/01/08 2.20 5,605,000 VMIG-1
965,000 City of Lima, OH Health Care Facilities RB
(Allen County Health Partners) - Series 2005
LOC Huntington National Bank 11/01/25 3.25 965,000 P-1
1,840,000 Cleveland - Cuyahoga County, OH Port Authority RB
(CBT Project) - Series 2007
LOC Charter One Bank 06/01/31 2.51 1,840,000 P-1 A-1+
5,177,161 Clipper Tax Exempt Trust COPs - (Oklahoma) - Series 2004-3 02/01/10 2.33 5,177,161 VMIG-1
400,000 Cohasset MN RB
(Minnesota Power & Light Co. Project) Series 1997A
LOC LaSalle National Bank, N.A. 06/01/20 2.10 400,000 A-1+
4,000,000 Cornerstar Metropolitan District RB in The City of Aurora, CO
- Series 2007
LOC Compass Bank 12/01/37 2.29 4,000,000 A-1
5,000,000 Colorado HFA (Boulder Community Hospital Project) - Series 2000
LOC JPMorgan Chase Bank, N.A. 10/01/30 2.15 5,000,000 VMIG-1 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)
-----------------------------------------------------------------------------------------------------------------------------------
$ 3,000,000 Colorado HFA Solid Waste Disposal RB
(Waste Management Incorporate Project)
LOC Wachovia Bank, N.A. 08/01/38 2.20% $ 3,000,000 A-1+
4,200,000 Connecticut HEFA RB (Yale University) - Series T 07/01/29 1.50 4,200,000 VMIG-1 A-1+
1,000,000 Connecticut HEFA RB (Yale University) - Series U 07/01/33 1.50 1,000,000 VMIG-1 A-1+
4,175,000 Connecticut HEFA RB (Yale University) - Series U-1 & U-2 07/01/33 1.70 4,175,000 VMIG-1 A-1+
5,925,000 Connecticut State Special Tax Obligation Bonds
(Second Lien Transportation Infrastructure) - Series 1
Insured by FSA 12/01/10 2.09 5,925,000 P-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 2.29 2,000,000 P-1 A-1
1,000,000 Delaware State EDA Revenue (Delaware Hospice Inc Project)
LOC Wilmington Trust Company 02/01/32 2.19 1,000,000 VMIG-1
3,000,000 Development Authority of Fulton County, GA RB
(Piedmont Healthcare Inc. Project) - Series 2007
LOC SunTrust Bank 06/01/37 2.09 3,000,000 VMIG-1
5,365,000 Douglas County, NE IDRB (Phillips Manufacturing Project)
- Series 2002
LOC Wells Fargo Bank N.A 12/01/18 2.31 5,365,000 A-1+
2,890,000 Elkhart County, IN EDRB
(Reflex Industries Project) - Series 2007
LOC Fifth Third Bank 12/01/27 2.34 2,890,000 P-1 A-1+
300,000 Farmington, NM PCRB
(Arizona Public Service Corp Four Corners Project) - Series B
LOC Barclay Bank PLC 09/01/24 1.17 300,000 P-1 A-1+
3,765,000 Floating Rate Trust Receipts - Series L29(New York State Dormitory
Authority, St. Lukes - Roosevelt Hospital Center - Series 2005)
Collateralized by FHA 08/15/25 2.20 3,765,000 A-1
2,315,000 Florida State Board of Education (ROC RR II R-12211) 06/01/33 2.27 2,315,000 A-1+
1,785,000 Franklin County, OH RB
(The Villa at Saint Therese Project) - Series 1997F
LOC Fifth Third Bank 10/01/22 2.17 1,785,000 P-1 A-1+
720,000 Frisco City, AL IDRB (Standard Furniture Manufacturing Co. Inc.)
LOC Royal Bank of Canada 11/01/09 2.32 720,000 A-1
1,000,000 Fulton County, KY Industrial Building RB
(Burke Parsons Bowlby Corporation Project)
LOC Branch Banking And Trust Company 07/01/26 2.38 1,000,000 P-1 A-1+
1,350,000 Gainesville Florida IDRB (Heat Pipe Technology Project)
LOC AmSouth Bank 05/01/18 2.24 1,350,000 P-1 A-1
10,000,000 Gainesville, FL Utilites System RB - Series 2007A 10/01/36 2.00 10,000,000 VMIG-1 A-1+
7,000,000 Greenwood County, SC (Fuji Photo Film, Inc Project) 09/01/11 2.38 7,000,000 A-1+
1,000,000 Gwinnett County Development Authority, GA RB
(Greater Atlanta Christian School, Inc. Project) - Series 2002
LOC SunTrust Bank 05/01/22 2.09 1,000,000 VMIG-1
9,000,000 Maryland Health and Educationa Facilities Authority, RB
(University of Maryland Medical System Project) - Series 2007A
LOC Wachovia Bank, N.A. 07/01/34 2.07 9,000,000 VMIG-1 A-1+
The accompanying notes are an integral part of these financial statements.
DAILY INCOME FUND
MUNICIPAL PORTFOLIO
SCHEDULE OF INVESTMENTS (CONTINUED)
MARCH 31, 2008
Ratings (1)
-----------------
Face Maturity Current Value Standard
Amount Date Coupon (2) (Note 1) Moody's & Poor's
--------- ---- ---------- -------- ------- --------
Variable Rate Demand Instruments (Continued) (5)
-----------------------------------------------------------------------------------------------------------------------------------
$ 2,000,000 Illinois Development Finance Authority RB
(Chicago Gear-D.O. James Corporation) - Series 2007
LOC Fifth Third Bank 12/01/31 2.34% $ 2,000,000 P-1 A-1+
1,600,000 Illinois Development Finance Authority IDRB
(US Acrylic, Inc. Project) - Series 2003
LOC Fifth Third Bank 08/01/33 2.34 1,600,000 P-1 A-1+
3,000,000 Illinois Development Finance Authority
(Butterfield Creek Project) - Series 1999 AMT
LOC LaSalle National Bank, N.A. 04/01/39 2.48 3,000,000 A-1
2,625,000 Illinois Financial Authority, IL RB
(Riverside Health System Project) - Series 2004
LOC JPMorgan Chase Bank, N.A. 11/15/29 3.05 2,625,000 VMIG-1 A-1+
3,700,000 Iowa Higher Education Loan Authority Private College Facility RB
(University of Dubuque Project) - Series 2007
LOC Northern Trust 04/01/35 1.30 3,700,000 A-1+
1,450,000 Iredell County, NC Industrial Facilities & Pollution Control Funding
(Riley Technologies Project) (4)
LOC Branch Banking And Trust Company 11/01/31 2.38 1,450,000
3,055,000 Jacksonville, FL Economic Development Commission Special Facilities
Airport RB (Holland Sheltair Aviation Group Project) - Series 2005-B1
LOC Mellon Bank N.A. 05/01/35 2.28 3,055,000 A-1+
500,000 Jacksonville, FL HFA Hospital Revenue
(Baptist Medical Center) - Series 2003A
LOC Bank of America, N.A. 08/15/33 1.25 500,000 A-1+
280,000 Jay Street Development Corporation, Courts Facility Lease RB
(New York City-Jay Street Corporation) Fiscal 2004,- Subseries A-1
LOC Depfa Bank PLC 05/01/22 2.00 280,000 VMIG-1 A-1+
900,000 Jefferson County, KY Industrial Building (R.C. TWAY Company,
Kentucky Manufacturing Company Project) Series 1998
LOC JPMorgan Chase Bank, N.A. 06/01/18 2.35 900,000 P-1 A-1+
1,370,000 Jeffersontown, KY Lease Program RB
(Kentucky League of Cities Fund Trust) - Series 2000
LOC US Bank, N.A. 03/01/30 2.25 1,370,000 VMIG-1
300,000 King George County, VA IDA RB
(Birchwood Power Partners Project) - Series 1995
LOC Bank of Nova Scotia 11/01/25 1.52 300,000 A-1+
2,400,000 La Porte County, IN EDC RB
(Universal Forest Products) - Series 2000
LOC Michigan National Bank 11/01/20 2.25 2,400,000 P-1 A-1+
3,000,000 Lockport, IL IDRB (Panduit Corporation Project) - Series 1990
LOC Fifth Third Bank 04/01/25 2.27 3,000,000 A-1+
600,000 Loudoun County, VA IDA RB
(Howard Hughes Medical Institute Project) - Series 2003C 02/15/38 1.50 600,000 VMIG-1 A-1+
1,700,000 Lowell Area Schools, MI School Building & Site Bonds
GO Unlimited Tax - Series 2004 (4) 05/01/29 2.27 1,700,000
250,000 Manatee County, FL PCRB (FL Powers & Light Project) 1994 09/01/24 1.25 250,000 VMIG-1 A-1
2,406,000 Marion County, FL IDA
(Chambrel At Pinecastle Project) - Series 2002
Guaranteed by FNMA 11/15/32 2.09 2,406,000 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)
-----------------------------------------------------------------------------------------------------------------------------------
$ 2,000,000 Marion County, FL IDA RB
(Capris Furniture Industries Project) - Series 2005
LOC SunTrust Bank 02/01/25 2.29% $ 2,000,000 P-1 A-1+
300,000 Massachusetts Water Resources Authority RB
(Multi-Modal Subordinated Group) - Series 2002C
LOC Landesbank Hessen 08/01/20 1.47 300,000 VMIG-1 A-1+
3,000,000 Metropolitan Transportation Authority, NY
Transportation RB Series 2005E-1
LOC Fortis Bank, S.A/N.V. 11/01/35 2.02 3,000,000 VMIG-1 A-1+
7,000,000 Metropolitan Transportation Authority, NY
Transportation RB Series 2005E-2
LOC Fortis Bank, S.A/N.V. 11/01/35 2.10 7,000,000 VMIG-1 A-1+
1,500,000 Michigan State Strategic Fund Limited Obligation RB
(Envelope Printery Inc Project)
LOC Fifth Third Bank 03/01/27 2.34 1,500,000 P-1 A-1+
2,200,000 Michigan State Strategic Fund Limited Obligation RB
(Grand River Infrastructure, Inc.) - Series 2006
LOC Fifth Third Bank 06/01/14 2.34 2,200,000 P-1 A-1+
2,350,000 Michigan State Strategic Fund Limited Obligation RB
(Nuvar Properties LLC Project) - Series 2007
LOC Fifth Third Bank 04/01/37 2.34 2,350,000 P-1 A-1+
920,000 Michigan State Strategic Fund (Ilmor Engineering Incorporated)
LOC Fifth Third Bank 03/01/36 2.34 920,000 P-1 A-1+
1,740,000 Michigan State Strategic Fund (Sintel, Inc. Project) - Series 2005
LOC Fifth Third Bank 10/01/30 2.34 1,740,000 P-1 A-1+
580,000 Mississippi Home Corporation Single Family Mortgage RB
Wachovia Merlots Trust Series 2000YYY
Guaranteed by GNMA 12/01/31 2.30 580,000 VMIG-1
3,000,000 Missouri State HEFA (Barnes Hospital)
LOC JPMorgan Chase Bank, N.A. 12/01/15 2.15 3,000,000 VMIG-1 A-1+
250,000 Montgomery, AL IDRB Pollution Control & Solid Waste Disposal
(General Electric Company Project) 05/01/21 1.10 250,000 VMIG-1 A-1+
250,000 Montgomery, AL IDRB Municipal Electricity Authority of Georgia
Insured by FSA 01/01/26 1.50 250,000 VMIG-1 A-1+
1,450,000 Nashville & Davidson County, TN
(Wedgewood Tower Project) - Series 2004 A
LOC AmSouth Bank 06/01/34 2.41 1,450,000 P-1 A-1
5,545,000 Nevada Housing Division MHRB
(Golden Apartments) - Series 2007
LOC Citibank, N.A. 10/01/42 2.25 5,545,000 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 2.25 2,165,000 A-1+
3,500,000 Neveda Housing Division MHRB (Golden Apartment Project)
Guaranteed by FHLMC 10/01/37 2.25 3,500,000 A-1+
2,000,000 New Jersey EDA (Stolthaven Perth Amboy Inc. Project) - Series A
LOC Citibank, N.A. 01/15/18 0.98 2,000,000 P-1 A-1+
1,000,000 New York Office of City Comptroller RB
LOC JPMorgan Chase Bank, N.A. 02/15/16 2.00 1,000,000 P-1 A-1+
The accompanying notes are an integral part of these financial statements.
-------------------------------------------------------------------------------
DAILY INCOME FUND
MUNICIPAL PORTFOLIO
SCHEDULE OF INVESTMENTS (CONTINUED)
MARCH 31, 2008
===============================================================================
Ratings (1)
-----------------
Face Maturity Current Value Standard
Amount Date Coupon (2) (Note 1) Moody's & Poor's
--------- ---- ---------- -------- ------- --------
Variable Rate Demand Instruments (Continued) (5)
-----------------------------------------------------------------------------------------------------------------------------------
$ 6,085,000 New York City, NY GO Bonds - Series 1995 F-3
LOC Morgan Guaranty Trust 02/15/13 1.95% $ 6,085,000 VMIG-1 A-1+
1,525,000 New York City HDC MHRB (100 Jane Street Development)
Collateralized by FNMA 09/15/28 2.17 1,525,000 A-1+
3,000,000 New York City Transitional Finance Authority RB - Series A-1 11/15/22 2.05 3,000,000 VMIG-1 A-1+
250,000 New York State Dormitory Authority
Guaranteed by GNMA 02/15/41 2.19 250,000 A-1
435,000 Ohio, KY Air Quality Development Authority, PCRB
(First Energy Generation Corp. Project)
LOC Fifth Third Bank 10/01/20 2.34 435,000 P-1 A-1+
1,500,000 Ohio State Air Quality Development Authority PCRB
(Firstenergy Generation Corp.) - Series 2006A
LOC Key Bank, N.A. 12/01/23 2.20 1,500,000 VMIG-1 A-1
1,000,000 Olathe, KS IDRB Multi-Modal (Diamant Boart Project) - Series 1997A
LOC Svenska Handelsbanken 03/01/27 2.35 1,000,000 P-1 A-1+
1,200,000 Orange County, FL HFA (Windsor Pines Project) - Series 2000E
LOC Bank of America, N.A. 03/01/35 2.37 1,200,000 VMIG-1
1,100,000 Orange County, FL MHRB
(Post Fountains at Lee Vista Project)- Series 1997E
Collateralized by FNMA 06/01/25 2.20 1,100,000 A-1+
1,200,000 Orland Park, IL IDRB (Panduit Corporation Project) - Series 1996
LOC Fifth Third Bank 04/01/31 2.27 1,200,000 A-1+
250,000 Orlando, FL Utilities Commission - Series B 10/01/22 2.09 250,000 VMIG-1 A-1+
8,000,000 Palm Beach County, FL EDFA (Lynn University Project) - Series 2001
LOC Bank of America, N.A. 11/01/21 2.10 8,000,000 P-1 A-1+
2,000,000 Pennsylvania EDFA (Amtrak Project) - Series B of 2001
LOC JPMorgan Chase Bank, N.A. 11/01/41 2.28 2,000,000 VMIG-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 2.24 2,500,000 P-1 A-1+
1,500,000 Pennsylvania EDFA EDRB
(North America Communications, Inc. Project) - Series 2005B3
LOC PNC Bank, N.A. 08/01/12 2.24 1,500,000 P-1 A-1+
4,000,000 Port Authority of New York & New Jersey Versatile Structure
Obligation RB- Series 3 06/01/20 1.10 4,000,000 VMIG-1 A-1+
1,975,000 Port Bellingham, WA IDC
(BP West Coast Products LLC Project) - Series 2003 03/01/38 1.35 1,975,000 VMIG-1 A-1+
2,900,000 Port Orange, FL (Parmer College of Chiropractic Project)
LOC LaSalle National Bank, N.A. 10/01/32 2.10 2,900,000 A-1
15,990,000 Puerto Rico BB&T Municipal Trust Floater Series 2006
Related to Puerto Rico Electric Power Authority - Series VV
LOC Branch Banking And Trust Company 07/01/32 2.27 15,990,000 VMIG-1
3,500,000 Riesel IDC Solid Waste Disposal RB
(Sandy Creek Energy Associated)
LOC Credit Suisse 10/01/42 2.28 3,500,000 A-1+
1,800,000 Rockingham County, NC IDRB PCFA
(Eden Customs Processing, LLC Project) Series 2004 (4)
LOC Branch Banking And Trust Company 01/01/17 2.38 1,800,000
The accompanying notes are an integral part of these financial statements.
-------------------------------------------------------------------------------
===============================================================================
Ratings (1)
-----------------
Face Maturity Current Value Standard
Amount Date Coupon (2) (Note 1) Moody's & Poor's
--------- ---- ---------- -------- ------- --------
Variable Rate Demand Instruments (Continued) (5)
-----------------------------------------------------------------------------------------------------------------------------------
$ 1,925,000 Rockingham, NC IDRB PCFA
(Whiteridge Plastics Project) - Series 2003 (4)
LOC Branch Banking And Trust Company 03/01/15 2.38% $ 1,925,000
7,650,000 Rome, GA Housing Authority MHRB
(Ashland Park Apartment Project) - Series 2002
LOC Union Planters Bank 07/01/34 2.42 7,650,000 A-1
9,140,000 Sabine Neches Housing Finance Corporation, TX
Single Family Mortgage RB RR II R-11208
LOC GNMA/ FNMA /FHLMC 12/01/39 2.32 9,140,000 VMIG-1
1,000,000 Savannah, GA EDA Solid Waste Disposal RB
(Republic Services of Georgia Limited Partnership Project)
LOC SunTrust Bank 06/01/30 2.19 1,000,000 VMIG-1
3,035,000 South Carolina Jobs EDA (Cannon Medical Hospital) - Series 2004A
LOC National Bank of South Carolina 06/01/24 2.36 3,035,000 P-1
2,365,000 South Carolina Jobs EDA RB
(DCS Diversified Coating Systems, Inc Project) - Series 2002
LOC Branch Bank And Trust Company 04/01/17 2.38 2,365,000 VMIG-1
1,230,000 South Carolina Ridgeland Township RB (LRC Ridgeland LLC
Project) - Series 2006A
LOC Columbus Bank & Trust Company 09/01/21 2.36 1,230,000 P-1 A-1
5,910,000 South Carolina Three Rivers Solid Waste Disposal Facilities
- Series A
LOC US Bank, N.A. 10/01/08 2.75 5,910,000 A-1+
800,000 Suffolk County, VA Redevelopment and Housing Authority MHRB
(Oak Springs Apartments, LLC) - Series A
Guaranteed by FHLMC 12/01/19 2.09 800,000 VMIG-1
1,065,000 Suffolk County, VA Redevelopment & Housing Authority MHRB
(Pembroke Crossing Apartments) - Series 1998 (4)
LOC SunTrust Bank 09/01/19 2.19 1,065,000
1,100,000 Texas Calhoun County Navigation Port, RB
(BP PLC) - Series 2003 01/01/24 1.35 1,100,000 VMIG-1 A-1+
1,375,000 Tulsa, OK IDA (Indian Health Care Resource Center of Tulsa)
LOC JPMorgan Chase Bank, N.A. 06/01/14 3.50 1,375,000 VMIG-1 A-1+
795,000 Tuscaloosa County, AL IDA
(Automotive Carridor, LLC Expansion Project) - Series 2001
LOC Regions Bank 11/01/24 2.45 795,000 P-1 A-1
1,375,000 Tuscaloosa County, AL IDA
(Automotive Carridor, LLC Expansion Project) - Series 2001(4)
LOC Regions Bank 10/01/21 2.45 1,375,000
265,000 University of North Carolina at Chapel Hill RB - Series 2001 B 12/01/25 2.08 265,000 VMIG-1 A-1+
4,800,000 University of North Carolina COPs
(Chapel Hill Foundation Project) - Series 1989
LOC Bank of America, N.A. 10/01/09 2.08 4,800,000 VMIG-1
1,520,000 Upper Illinois River Valley IDA RB
(Advance Flexible Composites) Series A(4)
LOC LaSalle National Bank, N.A. 06/01/25 2.41 1,520,000
300,000 Utah Transit Authority Sales Tax RB Adj-Sub-Series A
LOC Fortis Bank S.A./N.V. 06/15/36 1.40 300,000 VMIG-1 A-1+
4,450,000 Volusia County, FL IDA RB (Intellitech Project)
LOC LaSalle National Bank, N.A. 10/01/37 2.20 4,450,000 A-1+
The accompanying notes are an integral part of these financial statements.
-------------------------------------------------------------------------------
DAILY INCOME FUND
MUNICIPAL PORTFOLIO
SCHEDULE OF INVESTMENTS (CONTINUED)
MARCH 31, 2008
===============================================================================
Ratings (1)
-----------------
Face Maturity Current Value Standard
Amount Date Coupon (2) (Note 1) Moody's & Poor's
--------- ---- ---------- -------- ------- --------
Variable Rate Demand Instruments (Continued) (5)
-----------------------------------------------------------------------------------------------------------------------------------
$ 4,500,000 Volusia County, FL IDA RB (West Volusia Family YMCA Project)
LOC SunTrust Bank 12/01/27 2.14% $ 4,500,000 VMIG-1
2,725,000 Washington State EDFA
(Summer Building LLC Project) - Series 2005F
LOC Key Bank, N.A. 12/01/30 2.36 2,725,000 P-1 A-1
250,000 Washington State HFC
LOC Allied Irish Bank, PLC 07/01/33 1.13 250,000 VMIG-1 A-1
970,000 Washington State HFC Putters - Series 1335
LOC GNMA/FNMA/FHLMC 12/01/09 2.56 970,000 VMIG-1
2,800,000 Washington State HFC MHRB -
(Seasons Apartment Project) Series 2006
Collateralized by FNMA 12/15/40 2.40 2,800,000 VMIG-1
2,095,000 Washington State HFC Putters 1335
LOC GNMA/FNMA 12/01/23 1.50 2,095,000 VMIG-1
1,045,000 Wauwatosa, WI Housing Authority RB
(Hart Park Square Project)
LOC Marshall & Ilsley Bank 03/01/34 2.47 1,045,000 P-1 A-1
2,100,000 West Des Moines, IA RB Woodgrain Millwork Inc Project)-Series 1995
LOC Wells Fargo Bank, N.A. 04/01/10 2.46 2,100,000 P-1 A-1+
3,010,000 Will-Kankakee Regional Development Authority, IL IDRB - Series A
LOC Fifth Third Bank 08/01/36 2.34 3,010,000 P-1 A-1+
1,000,000 Wisconsin State HEFA
(Indian Community School of Wilwaukee) - Series 2006
LOC JPMorgan Chase Bank, N.A. 12/01/36 3.50 1,000,000 VMIG-1
2,375,000 Wisconsin Sturtevant IDRB (SLJB LLC Inc. Project) - Series 1997
LOC Fifth Third Bank 05/01/12 2.40 2,375,000 P-1 A-1+
------------ -------------
335,273,161 Total Variable Rate Demand Instruments 335,273,161
------------ -------------
Total Investments (97.74%) (Cost $478,910,292+) 478,910,292
Cash and other assets, net of liabilities (2.26%) 11,060,237
-------------
Net Assets (100.00%) $ 489,970,529
=============
+ 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 which the Fund's 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.
-------------------------------------------------------------------------------
===============================================================================
KEY:
AMT = Alternate Minimum Tax GNMA = Government National Mortgage Association
BAN = Bond Anticipation Note GO = General Obligation
COPs = Certificates of Participation IDA = Industrial Development Authority
EDA = Economic Development Authority IDC = Industrial Development Corporation
EDC = Economic Development Corporation IDRB = Industrial Development Revenue Bond
EDFA = Economic Development Finance Authority LOC = Letter of Credit
EDRB = Economic Development Revenue Bond MHRB = Multi-Family Housing Revenue Bond
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 RDRB = Residential Development Revenue Bond
FSA = Financial Security Assurance RB = Revenue Bond
HDC = Housing Development Corporation RN = Revenue Note
HEFA = Health and Education Facilities Authority TAN = Tax Anticipation Note
HFA = Housing Finance Authority TRAN = Tax and Revenue Anticipation Note
HFC = Housing Finance Commission
The accompanying notes are an integral part of these financial statements.
-------------------------------------------------------------------------------
DAILY INCOME FUND
MUNICIPAL PORTFOLIO
BREAKDOWN OF PORTFOLIO HOLDINGS BY STATE
MARCH 31, 2008
===============================================================================
------------------------- ----------------------------- ------------------------------
States Value % of Portfolio
------------------------- ----------------------------- ------------------------------
Alabama $ 4,485,000 0.94%
Arizona 5,000,000 1.04
Arkansas 1,433,045 0.30
California 8,311,000 1.73
Colorado 14,455,000 3.02
Connecticut 15,300,000 3.19
Delaware 1,000,000 0.21
District of Columbia 10,000,000 2.09
Florida 55,026,000 11.49
Georgia 13,150,000 2.75
Illinois 40,069,412 8.37
Indiana 5,290,000 1.10
Iowa 7,802,001 1.63
Kansas 1,000,000 0.21
Kentucky 9,565,000 2.00
Louisiana 1,880,000 0.39
Maryland 14,245,000 2.97
Massachusetts 300,000 0.06
Michigan 23,523,700 4.91
Minnesota 9,765,722 2.04
Mississippi 580,000 0.12
Missouri 11,504,089 2.40
Nebraska 5,365,000 1.12
Nevada 11,210,000 2.34
New Jersey 11,000,000 2.30
New Mexico 300,000 0.06
New York 31,755,000 6.63
North Carolina 10,240,000 2.14
Ohio 21,063,837 4.40
Oklahoma 7,552,161 1.58
Pennsylvania 18,520,899 3.87
Puerto Rico 15,990,000 3.34
South Carolina 19,540,000 4.08
Tennessee 1,450,000 0.30
Texas 27,471,813 5.74
Utah 1,845,600 0.38
Vermont 12,000,000 2.51
Virginia 2,765,000 0.58
Washington 10,815,000 2.26
Wisconsin 16,341,013 3.41
------------------------- ----------------------------- ------------------------------
Total $ 478,910,292 100.00%
------------------------- ----------------------------- ------------------------------
The accompanying notes are an integral part of these financial statements.
-------------------------------------------------------------------------------
DAILY INCOME FUND
MUNICIPAL PORTFOLIO
STATEMENT OF ASSETS AND LIABILITIES
MARCH 31, 2008
===============================================================================
ASSETS
Investments in securities, at amortized cost (Note 1)............................. $ 478,910,292
Cash.............................................................................. 8,525,961
Accrued interest receivable....................................................... 3,022,703
Prepaid expenses.................................................................. 26,517
Other assets...................................................................... 232
------------------
Total assets............................................................... 490,485,705
------------------
LIABILITIES
Payable to affiliates*............................................................ 150,480
Accrued expenses.................................................................. 136,685
Dividends payable................................................................. 228,011
------------------
Total liabilities.......................................................... 515,176
------------------
Net assets........................................................................ $ 489,970,529
==================
SOURCE OF NET ASSETS
Net capital paid in on shares of capital stock (Note 4)........................... $ 489,904,129
Accumulated net realized gains.................................................... 11,145
Accumulated undistributed net investment income .................................. 55,255
------------------
Net assets........................................................................ $ 489,970,529
==================
Net asset value, per share (Note 4):
Class Name Net Assets Shares Outstanding Net Asset Value
Institutional Shares........................ $3,855,993 3,857,231 $1.00
Institutional Service Shares................ $110,286 110,321 $1.00
Short Term Income Shares.................... $93,232,518 93,262,456 $1.00
Retail Shares............................... $170,909,248 170,964,128 $1.00
Advantage Shares............................ $221,862,484 221,933,725 $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 YEAR ENDED MARCH 31, 2008
===============================================================================
INVESTMENT INCOME
Income:
Interest........................................................................ $ 14,939,976
------------------
Expenses: (Note 2)
Investment management fee....................................................... 522,579
Administration fee.............................................................. 217,741
Shareholder servicing fee (Institutional Service Shares)........................ 34
Shareholder servicing fee (Short Term Income Shares)............................ 286,621
Shareholder servicing fee (Retail Shares)....................................... 368,822
Shareholder servicing fee (Advantage Shares).................................... 429,065
Distribution fee (Short Term Income Shares)..................................... 515,918
Distribution fee (Retail Shares)................................................ 958,938
Distribution fee (Advantage Shares)............................................. 1,287,195
Sub-Accounting fee (Advantage Shares)........................................... 171,626
Custodian expenses.............................................................. 23,898
Shareholder servicing and related shareholder expenses+......................... 176,151
Legal, compliance and filing fees............................................... 379,131
Audit and accounting............................................................ 133,279
Trustees' fees and expenses..................................................... 27,313
Other........................................................................... 7,110
------------------
Total expenses.................................................................. 5,505,421
Less: Fees waived ........................................................ (1,401,562)
Expense paid indirectly ........................................... (3,281)
------------------
Net expenses.................................................................... 4,100,578
------------------
Net investment income........................................................... 10,839,398
REALIZED GAIN (LOSS) ON INVESTMENTS
Net realized gain on investments.................................................... 34,502
------------------
Increase in net assets from operations.............................................. $ 10,873,900
==================
+ Includes class specific transfer agency expenses of $334, $3, $57,324, and
$73,236 for the Institutional, Institutional Service, 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
===============================================================================
Commencement of Operations
Year Ended October 30, 2006 through
March 31, 2008 March 31, 2007
-------------- --------------
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income......................................... $ 10,839,398 $ 1,499,539
Net realized gain on investments.............................. 34,502 -0-
--------------- ----------------
Increase in net assets from operations............................ 10,873,900 1,499,539
Dividends to shareholders from net investment income:
Institutional Shares......................................... (47,801) (117,822)
Institutional Service Shares ................................. (377) (12)
Short Term Income Shares ..................................... (3,142,101) (99,509)
Retail Shares................................................. (3,506,790) (106,568)
Advantage Shares.............................................. (4,142,329) (1,175,628)
--------------- ----------------
Total dividends to shareholders.......................... (10,839,398) (1,499,539)
--------------- ----------------
Capital share transactions (Note 4):
Institutional Shares.......................................... 3,847,231 10,000
Institutional Service Shares.................................. 100,321 10,000
Short Term Income Shares...................................... (5,174,033) 57,915,009
Retail Shares................................................. 73,422,037 41,816,875
Advantage Shares.............................................. 85,387,834 136,545,892
Net asset value of shares issued in connection with merger Cortland
Municipal into Retail Shares (Note 5)......................... 6,256,528 -0-
Net asset value of shares issued in connection with merger Daily Tax
Free Class A into Retail Shares (Note 5)...................... 28,913,828 -0-
Net asset value of shares issued in connection with merger Daily Tax
Free Class B into Short Term Income Shares (Note 5)........... 40,438,840 -0-
Net asset value of shares issued in connection with merger Daily Tax
Free Thornburg Shares into Retail Shares (Note 5)............. 20,445,665 -0-
--------------- ----------------
Total capital share transactions........................ 253,638,251 236,297,776
--------------- ----------------
Total increase ............................................... 253,672,753 236,297,776
Net assets:
Beginning of year............................................. 236,297,776 -0-
--------------- ----------------
End of year.................................................. $ 489,970,529 $ 236,297,776
=============== ================
Undistributed net investment income............................... $ 55,255 $ -0-
=============== ================
The accompanying notes are an integral part of these financial statements.
-------------------------------------------------------------------------------
DAILY INCOME FUND
MUNICIPAL PORTFOLIO
FINANCIAL HIGHLIGHTS
===============================================================================
Institutional shares Commencement of Operations
-------------------- Year Ended October 30, 2006 through
Per Share Operating Performance: March 31, 2008 March 31, 2007
-------------- --------------
(for a share outstanding throughout the year)
Net asset value, beginning of year..................... $ 1.00 $ 1.00
--------- ----------
Income from investment operations:
Net investment income............................... 0.033 0.006
Net realized and unrealized gain(loss) on investments 0.000 --
--------- ----------
Total from investment operations.................... 0.033 0.006
--------- ----------
Less distributions from:
Dividends from net investment income................ (0.033) (0.006)
Net realized gain on investments.................... (0.000) (--)
--------- ----------
Total Distributions................................. (0.033) (0.006)
--------- ----------
Net asset value, end of year........................... $ 1.00 $ 1.00
========= ==========
Total Return........................................... 3.35% 0.60%(a)
Ratios/Supplemental Data
Net assets, end of year (000's)........................ $ 3,856 $ 10
Ratios to average net assets:
Expenses (net of fees waived) (b)................... 0.20% 0.20%(c)
Net investment income............................... 2.87% 3.44%(c)
Management and administration fees waived........... 0.13% 0.16%(c)
Expenses paid indirectly............................ 0.00% --
Institutional Service shares Commencement of Operations
---------------------------- Year Ended March 19, 2007 through
Per Share Operating Performance: March 31, 2008 March 31, 2007
-------------- --------------
(for a share outstanding throughout the year)
Net asset value, beginning of year..................... $ 1.00 $ 1.00
--------- ----------
Income from investment operations:
Net investment income............................... 0.030 0.001
Net realized and unrealized gain(loss) on investments 0.000 --
--------- ----------
Total from investment operations.................... 0.030 0.001
Less distributions from:
Dividends from net investment income................ (0.030) (0.001)
Net realized gain on investments.................... 0.000 --
--------- ----------
Total Distributions................................. (0.030) (0.001)
--------- ----------
Net asset value, end of year........................... $ 1.00 $ 1.00
========= ==========
Total Return........................................... 3.09% 0.12%(a)
Ratios/Supplemental Data
Net assets, end of year (000's)........................ $ 110 $ 10
Ratios to average net assets:
Expenses (net of fees waived) (b)................... 0.45% 0.42%(c)
Net investment income............................... 2.81% 3.25%(c)
Management and administration fees waived........... 0.13% 0.16%(c)
Transfer Agency Accoount fees waived................ 0.01% --
Expenses paid indirectly............................ 0.00% --
(a) Unannualized
(b) Includes expenses paid indirectly
(c) Annualized
The accomapnying notes are an integral part of these financial statements.
-------------------------------------------------------------------------------
===============================================================================
Short Term Income shares Commencement of Operations
------------------------ Year Ended February 20, 2007 through
Per Share Operating Performance: March 31, 2008 March 31, 2007
-------------- --------------
(for a share outstanding throughout the year)
Net asset value, beginning of year..................... $ 1.00 $ 1.00
--------- ----------
Income from investment operations:
Net investment income............................... 0.027 0.003
Net realized and unrealized gain(loss) on investments 0.000 --
--------- ----------
Total from investment operations.................... 0.027 0.003
--------- ----------
Less distributions from:
Dividends from net investment income................ (0.027) (0.003)
Net realized gain on investments.................... (0.000) (--)
--------- ----------
Total Distributions................................. (0.027) (0.003)
--------- ----------
Net asset value, end of year........................... $ 1.00 $ 1.00
========= ==========
Total Return........................................... 2.78% 0.29%(a)
Ratios/Supplemental Data
Net assets, end of year (000's)........................ $ 93,233 $ 57,915
Ratios to average net assets:
Expenses (net of fees waived) (b)................... 0.76% 0.76%(c)
Net investment income............................... 2.74% 2.89%(c)
Management and administration fees waived........... 0.13% 0.16%(c)
Distribution fees waived............................ 0.17% 0.17%(c)
Expenses paid indirectly............................ 0.00% --
Retail shares Commencement of Operations
------------- Year Ended December 8, 2006 through
Per Share Operating Performance: March 31, 2008 March 31, 2007
-------------- --------------
(for a share outstanding throughout the year)
Net asset value, beginning of year..................... $ 1.00 $ 1.00
--------- ----------
Income from investment operations:
Net investment income............................... 0.025 0.008
Net realized and unrealized gain(loss) on investments 0.000 --
--------- ----------
Total from investment operations.................... 0.025 0.008
--------- ----------
Less distributions from:
Dividends from net investment income................ (0.025) (0.008)
Net realized gain on investments.................... -- (--)
--------- ----------
Total Distributions................................. (0.025) (0.008)
--------- ----------
Net asset value, end of year........................... $ 1.00 $ 1.00
========= ==========
Total Return........................................... 2.54% 0.84%(a)
Ratios/Supplemental Data
Net assets, end of year (000's)........................ $ 170,909 $ 41,817
Ratios to average net assets:
Expenses (net of fees waived) (b)................... 1.00% 1.00%(c)
Net investment income............................... 2.38% 2.65%(c)
Management and administration fees waived........... 0.13% 0.16%(c)
Distribution fees waived............................ 0.13% 0.10%(c)
Transfer Agency Account fees waived................. -- 0.03%(c)
Expenses paid indirectly............................ 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
MUNICIPAL PORTFOLIO
FINANCIAL HIGHLIGHTS (CONTINUED)
===============================================================================
Commencement of Operations
Advantage shares Year Ended November 2, 2006 through
Per Share Operating Performance: March 31, 2008 March 31, 2007
-------------- --------------
(for a share outstanding throughout the year)
Net asset value, beginning of year..................... $ 1.00 $ 1.00
--------- ----------
Income from investment operations:
Net investment income............................... 0.025 0.011
Net realized and unrealized gain(loss) on investments 0.000 --
--------- ----------
Total from investment operations.................... 0.025 0.011
Less distributions from:
Dividends from net investment income................ (0.025) (0.011)
Net realized gain on investments.................... (0.000) (--)
--------- ----------
Total Distributions................................. (0.025) (0.011)
--------- ----------
Net asset value, end of year........................... $ 1.00 $ 1.00
========= ==========
Total Return........................................... 2.52% 1.09%(a)
Ratios/Supplemental Data
Net assets, end of year (000's)........................ $ 221,862 $ 136,546
Ratios to average net assets:
Expenses (net of fees waived) (b)................... 1.02% 1.02%(c)
Net investment income............................... 2.41% 2.65%(c)
Management and administration fees waived........... 0.13% 0.16%(c)
Distribution fees waived............................ 0.16% 0.16%(c)
Sub-Accounting fees waived.......................... 0.10% 0.10%(c)
Expenses paid indirectly............................ 0.00% --
(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.]
-------------------------------------------------------------------------------
DAILY INCOME FUND
NOTES TO THE FINANCIAL STATEMENTS
===============================================================================
1. Summary of Accounting Policies
Daily Income Fund (the "Fund") is a, diversified, open-end management investment
company registered under the Investment Company Act of 1940. The Fund is
comprised of four managed portfolios of money market instruments: the Money
Market Portfolio, the U.S. Treasury Portfolio, the U.S. Government Portfolio and
the Municipal Portfolio (each referred to as "Portfolio"). 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. For the years ended
March 31, 2008 and 2007 class specific expenses of the Fund are 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
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
Pinnacle shares................. July 29, 1999 July 29, 1999 N/A Not Active
Advantage shares................ November 1, 2006 N/A November 2, 2006 November 2, 2006
Xpress shares................... June 20, 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 year ended March 31, 2008, 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 $351,430
Administration fees......................... 1,274,289 440,292 223,801 217,741
Shareholder servicing fees - Institutional
Service shares.............................. 23,541 -0- -0- -0-
Distribution fees - Investor shares......... 89,496 103,286 N/A N/A
Distribution fees - Short Term Income shares 17,452 47,774 N/A 194,903
Distribution fees - Retail shares........... 1,820,818 4,682 141,013 191,259
Distribution fees - Advantage shares........ 5,608,617 N/A 541,233 274,602
Sub-Accounting fees - Advantage shares...... 3,317,775 N/A 338,271 171,626
Sub-Accounting fees - Xpress shares......... 325,782 N/A N/A N/A
Transfer agency fees - Institutional shares. 36,856 -0- -0- -0-
Transfer agency fees - Institutional Service
shares...................................... -0- -0- -0- 1
Transfer agency fees - Pinnacle shares...... 9,895 -0- N/A N/A
----------- -------- ---------- ----------
Total.......................................$12,524,521 $596,034 $1,428,168 $1,401,562
=========== ======== ========== ==========
The Manager, Distributor and Shareholder Servicing Agent have no right to recoup
prior fee waivers.
-------------------------------------------------------------------------------
DAILY INCOME FUND
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
===============================================================================
2. Investment Management Fees and Other Transactions with Affiliates (continued)
Directors of the Fund not affiliated with the Manager are paid a fee that is to
be allocated among multiple funds, as defined below. Each Independent Director
receives an annual retainer of $50,000 and a fee of $3,000 for each Board of
Directors meeting attended. Each Independent Director also receives a fee up to
$1,500 at the discretion of the Lead Director for telephonic Board meetings and
committee meetings that are not held on the same day as a Board Meeting. In
addition, the Lead Independent Director receives an additional annual fee of
$12,000, payable quarterly and the Audit Committee Chairman and Compliance
Oversight Committee Chairman will each receive an additional annual fee of
$8,000, payable quarterly. Each Independent Director 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 among the Fund,
the California Daily Tax Free Income Fund, Inc., the Connecticut Daily Tax Free
Income Fund, Inc., the Florida Daily Municipal Income Fund, and the New Jersey
Daily Municipal Income Fund, Inc. Effective January 1, 2008 the annual retainer
was changed to $60,000 and the annual fees payable to the Lead Independent
Director, the Audit Committee Chairman and the Compliance Oversight Committee
Chairman were changed to $13,800, $9,200 and $9,200, respectively.
Pursuant to the Transfer Agency Agreement between Reich & Tang and the Fund,
Reich & Tang Services, Inc. as transfer agent and dividend agent, receives a fee
of $17.40 per account per year or a minimum of (i) 0.05% of the monthly average
net assets of the Investor, Short Term Income, and Retail Shares of the Fund or
(ii) 0.02% of the monthly average net assets of the Institutional Service,
Institutional and Pinnacle shares of the Fund. For the year ended March 31, 2008
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........ $85,564 0.01% $125,294 0.02% $ 1 * $335 *
Institutional Service shares 52,568 0.02% 51,032 0.02% 60 0.02% 1 *
Pinnacle shares............. 24,273 0.01% 11,298 0.02% N/A N/A
Investor shares............. 116,301 0.05% 100,862 0.05% N/A N/A
Short Term Income shares.... 153,042 0.05% 76,926 0.05% N/A 57,243 0.05%
Retail shares............... 653,671 0.05% 1,626 0.05% 54,581 0.05% 73,777 0.05%
---------- -------- ------- --------
Total.................... $1,085,419 $367,038 $54,642 $131,356
========== ======== ======= ========
* Per account
The Delafield Fund, Inc., an affiliate invests its excess cash under the Rule
12d-1 of the 1940 Act into the Daily Income Fund - Money Market Portfolio -
Institutional Class Shares. For the period October 11, 2007 through March 31,
2008, The Delafield Fund has invested an average of $92,135,872 and as of March
31, 2008, has an investment of $66,451,000. Natixis Global Asset Management, LP
("NGAM LP"), the parent company of the Manager, invests a portion of its excess
cash balances in Daily Income Fund - Money Market Portfolio - Institutional
shares. For the year ended March 31, 2008, NGAM LP has invested an average of
$368,310,413 and as of March 31, 2008 has an investment of $41,909,617. Also, on
a daily basis, the Manager, Distributor and Transfer Agent invest their excess
cash in Daily Income Fund which is considered an immaterial amount.
3. Compensating Balance Arrangement and Other Transactions
Reich & Tang and the Bank of New York have entered into a compensating balance
arrangement with the Daily Income Fund Municipal Portfolio, which would allow
the Portfolio to compensate the Bank for any overdrafts by maintaining a
positive cash balance the next day. Conversely, on any day the Fund maintains a
positive balance it will be allowed to overdraw the account as compensation. In
both cases the Federal Reserve requirements, currently 10%, will be assessed.
Therefore, all overdrafts must be compensated at 100% of the total and all
positive balances will allow for an overdraft of 90% of the total. On March 31,
2008 the cash balance was $8,271,632.
For the year ended March 31, 2008, 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............................ $2,530 $ 12,014 $-0- $3,281
====== ======== ======== =======
-------------------------------------------------------------------------------
===============================================================================
4. Transactions in Shares of Beneficial Interest
At March 31, 2008, an unlimited number of shares of beneficial interest ($0.001
par value) were authorized. Transactions were as follows:
Money Market Portfolio Year Ended Year Ended
March 31, 2008 March 31, 2007
-------------- --------------
Institutional Shares Net Assets Shares Net Assets Shares
------------------------ --------------- --------------- -------------- --------------
Sold...................................... $14,990,645,052 14,990,645,052 $3,532,193,281 3,532,193,281
Issued on reinvestment of dividends....... 29,569,001 29,569,001 30,075,742 30,075,742
Redeemed.................................. (14,908,254,816) (14,908,254,816) (3,295,417,121) (3,295,417,121)
--------------- --------------- -------------- --------------
Net increase (decrease).............. $ 111,959,237 111,959,237 $ 266,851,902 266,851,902
=============== =============== ============== ==============
Institutional Service Shares Net Assets Shares Net Assets Shares
---------------------------- --------------- --------------- -------------- --------------
Sold...................................... $ 1,810,227,955 1,810,227,955 $2,353,647,274 2,353,647,274
Issued on reinvestment of dividends....... 12,054,054 12,054,054 11,234,194 11,234,194
Redeemed.................................. (1,829,537,807) (1,829,537,807) (2,321,066,724) (2,321,066,724)
--------------- --------------- -------------- --------------
Net increase (decrease).............. $ (7,255,798) (7,255,798) $ 43,814,744 43,814,744
=============== =============== ============== ==============
Commencement of Operations
November 28, 2006 through
March 31, 2007
--------------
Investor Shares Net Assets Shares Net Assets Shares
------------------ ---------------- --------------- -------------- --------------
Sold......................................$ 895,721,451 895,721,451 $ 326,218,371 326,218,371
Issued on reinvestment of dividends....... 9,881,325 9,881,325 231,079 231,079
Redeemed.................................. (878,345,327) (878,345,327) (174,502,593) (174,502,593)
Shares issued with merger................. 137,343,403 137,343,403 -0- -0-
---------------- --------------- -------------- --------------
Net increase (decrease)..............$ 164,600,852 164,600,852 $ 151,946,857 151,946,857
================ =============== ============== ==============
Commencement of Operations
February 12, 2007 through
March 31, 2007
--------------
Short Term Income Shares Net Assets Shares Net Assets Shares
--------------------------- ---------------- --------------- -------------- --------------
Sold......................................$ 1,927,769,280 1,927,769,280 $ 216,561,971 216,561,971
Issued on reinvestment of dividends....... 8,493,927 8,493,927 76,285 76,285
Redeemed.................................. (1,736,593,469) (1,736,593,469) (159,541,535) (159,541,535)
Shares issued with merger................. 40,741,544 40,741,544 -0- -0-
---------------- --------------- -------------- --------------
Net increase (decrease)..............$ 240,411,282 240,411,282 $ 57,096,721 57,096,721
================ =============== ============== ==============
Commencement of Operations
November 28, 2006 through
March 31, 2007
--------------
Retail Shares Net Assets Shares Net Assets Shares
---------------- ---------------- --------------- -------------- --------------
Sold......................................$ 4,656,278,890 4,656,278,890 $1,938,862,432 1,938,862,432
Issued on reinvestment of dividends....... 52,018,793 52,018,793 2,713,087 2,713,087
Redeemed.................................. (4,203,101,571) (4,203,101,571) (1,043,671,566) (1,043,671,566)
Shares issued with merger................. 36,753,053 36,756,343 -0- -0-
---------------- --------------- -------------- --------------
Net increase (decrease)..............$ 541,949,165 541,952,455 $ 897,903,953 897,903,953
================ =============== ============== ==============
Year Ended
March 31, 2007
--------------
Pinnacle Shares Net Assets Shares Net Assets Shares
------------------ ---------------- --------------- -------------- --------------
Sold......................................$ 206,875,371 206,875,371 $ 191,582,537 191,582,537
Issued on reinvestment of dividends....... 8,159,098 8,159,098 7,811,634 7,811,634
Redeemed.................................. (207,849,882) (207,849,882) (163,048,227) (163,048,227)
---------------- --------------- -------------- --------------
Net increase (decrease)..............$ 7,184,587 7,184,587 $ 36,345,944 36,345,944
================ =============== ============== ==============
-------------------------------------------------------------------------------
DAILY INCOME FUND
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
===============================================================================
4. Transactions in Shares of Beneficial Interest (continued)
Commencement of Operations
Money Market Portfolio Year Ended November 1, 2006 through
March 31, 2008 March 31, 2007
-------------- --------------
Advantage Shares Net Assets Shares Net Assets Shares
------------------------ --------------- --------------- -------------- --------------
Sold...................................... $ 4,908,390,896 4,908,390,896 $4,544,671,364 $4,544,671,364
Issued on reinvestment of dividends....... 135,201,857 135,201,857 34,760,496 34,760,496
Redeemed.................................. (4,705,503,694) (4,705,503,694) (1,465,843,369) (1,465,843,369)
--------------- --------------- -------------- --------------
Net increase (decrease).............. $ 338,089,059 338,089,059 $3,113,588,491 $3,113,588,491
=============== =============== ============== ==============
Commencement of Operations
June 20, 2007 through
March 31, 2007
--------------
Xpress Shares Net Assets Shares
------------- --------------- ---------------
Sold...................................... $ 2,717,706,062 2,717,706,062
Issued on reinvestment of dividends....... 31,077,996 31,077,996
Redeemed.................................. (2,476,571,781) (2,476,571,781)
--------------- ---------------
Net increase (decrease).............. $ 272,212,871 272,212,871
=============== ===============
U.S. Treasury Portfolio Year Ended Year Ended
March 31, 2008 March 31, 2007
-------------- --------------
Institutional Shares Net Assets Shares Net Assets Shares
----------------------- -------------- -------------- -------------- --------------
Sold................................. $4,536,481,973 4,536,481,973 $3,095,014,636 3,095,014,636
Issued on reinvestment of dividends.. 27,132,074 27,132,074 8,283,894 8,283,894
Redeemed............................. (4,609,122,550) (4,609,122,550) (3,342,758,467) (3,342,758,467)
-------------- -------------- -------------- --------------
Net increase (decrease)......... $ (45,508,503) (45,508,503) $ (239,459,937) (239,459,937)
============== ============== ============== ==============
Institutional Service Shares Net Assets Shares Net Assets Shares
------------------------------- -------------- -------------- -------------- --------------
Sold................................. $1,379,265,207 1,379,265,207 $1,017,713,607 1,017,713,607
Issued on reinvestment of dividends.. 9,245,471 9,245,471 6,373,235 6,373,235
Redeemed............................. (1,306,263,009) (1,306,263,009) (1,079,293,656) (1,079,293,656)
-------------- -------------- -------------- --------------
Net increase (decrease)......... $ 82,247,669 82,247,669 $ (55,206,814) (55,206,814)
============== ============== ============== ==============
Commencement of Operations
February 21, 2007 through
March 31, 2007
--------------
Investor Shares Net Assets Shares Net Assets Shares
------------------ -------------- -------------- -------------- --------------
Sold................................. $ 915,435,582 915,435,582 $ 281,725,704 281,725,704
Issued on reinvestment of dividends.. 7,365,733 7,365,733 176,886 176,886
Redeemed............................. (840,690,743) (840,690,743) (146,991,867) (146,991,867)
Shares issued with merger............ 53,257,284 53,257,284 -0- -0-
-------------- -------------- -------------- --------------
Net increase (decrease)......... $ 135,367,856 135,367,856 $ 134,910,723 134,910,723
============== ============== ============== ==============
Commencement of Operations
November 2, 2006 through
March 31, 2007
--------------
Short Term Income Shares Net Assets Shares Net Assets Shares
--------------------------- -------------- -------------- -------------- ---------------
Sold................................. $ 825,189,251 825,189,251 $ 46,491,785 46,491,785
Issued on reinvestment of dividends.. 4,502,404 4,502,404 266,519 266,519
Redeemed............................. (693,274,372) (693,274,372) (24,094,981) (24,094,981)
Shares issued with merger............ 15,759,403 15,759,403 -0- -0-
-------------- -------------- -------------- ---------------
Net increase (decrease)......... $ 152,176,686 152,176,686 $ 22,663,323 22,663,323
============== ============== ============== ===============
-------------------------------------------------------------------------------
===============================================================================
4. Transactions in Shares of Beneficial Interest (continued)
Commencement of Operations
Year Ended December 12, 2006 through
March 31,2008 March 31, 2007
------------- --------------
U.S. Treasury Portfolio
Retail Shares Net Assets Shares Net Assets Shares
---------------- --------------- ------------- -------------- ------------
Sold......................................$ 71,335,591 71,335,591 $ 3,448,689 3,448,689
Issued on reinvestment of dividends....... 58,708 58,708 4,406 4,406
Redeemed.................................. (50,789,515) (50,789,515) (3,081,550) (3,081,550)
---------------- ------------- -------------- ------------
Net increase (decrease)..............$ 20,604,784 20,604,784 $ 371,545 371,545
================ ============= ============== ============
Year Ended
March 31, 2007
--------------
Pinnacle Shares Net Assets Shares Net Assets Shares
------------------ ---------------- ------------- -------------- ------------
Sold......................................$ 98,444,058 98,444,058 $ 53,982,889 53,982,889
Issued on reinvestment of dividends....... 2,191,008 2,191,008 1,572,612 1,572,612
Redeemed.................................. (69,631,426) (69,631,426) (44,432,493) (44,432,493)
---------------- ------------- -------------- ------------
Net increase (decrease)..............$ 31,003,640 31,003,640 $ 11,123,008 11,123,008
================ ============= ============== ============
U.S. Government Portfolio Year Ended Commencement of Operations
March 31, 2008 October 30, through
March 31, 2007
-------------- --------------
Institutional Shares (a) Net Assets Shares Net Assets Shares
-------------------------- ---------------- ------------- -------------- ------------
Sold......................................$ 10,429 10,429 $ 10,000 10,000
Issued on reinvestment of dividends....... 473 473 -0- -0-
Redeemed.................................. (10,429) (10,429) -0- -0-
---------------- ------------- -------------- ------------
Net increase (decrease)..............$ 473 473 $ 10,000 10,000
================ ============= ============== ============
Commencement of Operations
March 19, 2007 through
March 31, 2007
--------------
Institutional Service Shares (a) Net Assets Shares Net Assets Shares
---------------------------------- ---------------- ------------- -------------- ------------
Initial Investment made by NATIXIS (b)....$ $ 35,000,000 35,000,000
Sold...................................... 3,610,769 3,610,769 10,000 10,000
Issued on reinvestment of dividends....... 9,972 9,972 244,835 244,835
Redeemed.................................. (3,295,012) (3,295,012) (35,244,835) (35,244,835)
---------------- ------------- -------------- ------------
Net increase (decrease)..............$ 325,729 325,729 $ 10.000 10.000
================ ============= ============== ============
Commencement of Operations
December 12, 2006 through
March 31, 2007
--------------
Retail Shares Net Assets Shares Net Assets Shares
----------------- ---------------- ------------- -------------- ------------
Sold......................................$ 960,561,944 960,561,944 $ 124,415,380 124,415,380
Issued on reinvestment of dividends....... 3,731,782 3,731,782 101,389 101,389
Redeemed.................................. (918,089,313) (918,089,313) (67,465,599) (67,465,599)
Shares issued with merger................. 56,013,618 56,026,352 -0- -0-
---------------- ------------- -------------- ------------
Net increase (decrease)..............$ 102,218,031 102,230,765 $ 57,051,170 57,051,170
================ ============= ============== ============
Commencement of Operations
November 2, 2006 through
March 31, 2007
--------------
Advantage Shares Net Assets Shares Net Assets Shares
------------------- ---------------- ------------- -------------- ------------
Sold......................................$ 1,006,741,134 1,006,741,134 $ 302,636,615 302,636,615
Issued on reinvestment of dividends....... 11,591,409 11,591,409 2,087,366 2,087,366
Redeemed.................................. (549,727,342) (549,727,342) (110,896,630) (110,896,630)
---------------- ------------- -------------- ------------
Net increase (decrease)..............$ 468,605,201 468,605,201 $ 193,827,351 193,827,351
================ ============= ============== ============
-------------------------------------------------------------------------------
DAILY INCOME FUND
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
===============================================================================
4. Transactions in Shares of Beneficial Interest (continued)
Municipal Portfolio Commencement of Operations
Year Ended October 30,2006 through
March 31, 2008 March 31, 2007
-------------- --------------
Institutional Shares (a) Net Assets Shares Net Assets Shares
---------------------------- ---------------- --------------- -------------- --------------
Sold......................................$ 10,521,314 10,521,314 $ 10,000 10,000
Issued on reinvestment of dividends....... 44,000 44,000 -0- -0-
Redeemed.................................. (6,718,083) (6,718,083) -0- -0-
---------------- --------------- -------------- --------------
Net increase (decrease)..............$ 3,847,231 3,847,231 $ 10,000 10,000
================ =============== ============== ==============
Commencement of Operations
March 19, 2007 through
March 31, 2007
--------------
Institutional Service Shares (a) Net Assets Shares Net Assets Shares
---------------------------------- ---------------- --------------- -------------- --------------
Initial Investment made by NATIXIS (b)....$ $ 25,000,000 25,000,000
Sold...................................... 110,288 110,288 10,000 10,000
Issued on reinvestment of dividends....... 321 321 117,810 117,810
Redeemed.................................. (10,288) (10,288) (25,117,810) (25,117,810)
---------------- --------------- -------------- --------------
Net increase (decrease)..............$ 100,321 100,321 $ 10.000 10.000
================ =============== ============== ==============
Commencement of Operations
February 20, 2007 through
March 31, 2007
--------------
Short Term Income Shares Net Assets Shares Net Assets Shares
--------------------------- ---------------- --------------- -------------- --------------
Sold......................................$ 1,121,360,019 1,121,360,019 $ 98,421,212 98,421,212
Issued on reinvestment of dividends....... 2,765,057 2,765,057 32,790 32,790
Redeemed.................................. (1,129,299,109) (1,129,299,109) (40,538,993) (40,538,993)
Shares issued with merger................. 40,438,840 40,521,480 -0- -0-
---------------- --------------- -------------- --------------
Net increase (decrease)..............$ 35,264,807 35,347,447 $ 57,915,009 57,915,009
================ =============== ============== ==============
Commencement of Operations
December 8, 2006 through
March 31, 2007
--------------
Retail Shares Net Assets Shares Net Assets Shares
---------------- ---------------- --------------- -------------- --------------
Sold......................................$ 917,892,821 917,892,821 $ 146,464,053 146,464,053
Issued on reinvestment of dividends....... 3,335,826 3,335,826 60,003 60,003
Redeemed.................................. (847,806,610) (847,806,610) (104,707,181) (104,707,181)
Shares issued with merger................. 55,616,021 55,725,216 -0- -0-
---------------- --------------- -------------- --------------
Net increase (decrease)..............$ 129,038,058 129,147,253 $ 41,816,875 41,816,875
================ =============== ============== ==============
Commencement of Operations
November 2, 2006 through
March 31, 2007
--------------
Advantage Shares Net Assets Shares Net Assets Shares
------------------- ---------------- --------------- -------------- --------------
Sold......................................$ 697,837,046 697,837,046 $ 310,727,491 310,727,491
Issued on reinvestment of dividends....... 4,230,809 4,230,809 1,009,357 1,009,357
Redeemed.................................. (616,680,021) (616,680,021) (175,190,956) (175,190,956)
---------------- --------------- -------------- --------------
Net increase (decrease)..............$ 85,387,834 85,387,834 $ 136,545,892 136,545,892
================ =============== ============== ==============
(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. On December 7, 2007, Reich & Tang
Asset Management, LLC redeemed $10,000 from the U.S. Government Portfolio
Institutional Service Shares and $10,000 from the Municipal Portfolio
Institutional Shares.
(b) The U.S. Government and Municipal Portfolios commenced operations on
October 30, 2006 with seed money investment of $60,000,000 from Natixis
Global Asset Management, LP, an affiliate of the Manager. 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. Transfer of Net Assets
On November 19, 2007, the Fund acquired assets and liabilities of the Cortland
Trust, Inc., the Daily Tax Free Income Fund, Inc. and the Short Term Income
Fund, Inc., pursuant to a plan of reorganization approved by the Cortland Trust,
Inc., the Daily Tax Free Income Fund, Inc. and the Short Term Income Fund, Inc.
on November 5, 2008. Total net assets of the Cortland Trust, Inc., the Daily Tax
Free Income Fund, Inc. and the Short Term Income Fund, Inc. were as follows:
Investor Short Term Retail
Money Market Portfolio Shares Income Shares Shares
Cortland Trust, Inc. - Cortland General
Money Market Portfolio N/A N/A 36,753,053
Short Term Income Fund, Inc. - Money
Market Portfolio - Class A N/A 40,741,544 N/A
Short Term Income Fund, Inc. - Money
Market Portfolio - Class B 137,343,403 N/A N/A
Investor Short Term Retail
U.S. Treasury Portfolio Shares Income Shares Shares
Short Term Income Fund, Inc. - U.S.
Government Portfolio - Class A N/A 15,759,403 N/A
Short Term Income Fund, Inc. - U.S.
Government Portfolio - Class B 53,257,284 N/A N/A
Investor Short Term Retail
U.S. Government Portfolio Shares Income Shares Shares
Cortland Trust, Inc. - Cortland U.S.
Government Portfolio N/A N/A 56,013,618
Investor Short Term Retail
Municipal Portfolio Shares Income Shares Shares
Cortland Trust, Inc. - Municipal
Money Market Portfolio - Cortland Shares N/A N/A 6,256,528
Daily Tax Free Income Fund, Inc. - Class A N/A N/A 28,913,828
Daily Tax Free Income Fund, Inc. - Thornburg Shares N/A N/A 20,445,665
Total net assets immediately after the transfer were:
Money Market U.S. Treasury U.S. Government Municipal
Portfolio Portfolio Portfolio Portfolio
--------- --------- --------- ---------
Net Assets........................... $7,977,528,224 $1,508,011,873 $533,345,255 $528,676,295
============== ============== ============ ============
The total net assets of Cortland General Money Market Portfolio included losses
of $3,290 which were offset to capital. The total net assets of Cortland
Government Portfolio included accumulated losses of $12,734. The total net
assets of Cortland Municipal Portfolio included accumulated losses of $6,957 and
undistributed income of $20,102. The total net assets of Daily Tax Free Income
Fund, Inc. included accumulated losses of $16,399. The transaction was
structured to qualify as a tax-free reorganization under the Internal Revenue
code of 1986, as amended.
-------------------------------------------------------------------------------
DAILY INCOME FUND
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
===============================================================================
6. Tax Information
The tax character of all dividends and distributions paid during the years ended
March 31, 2008 and 2007 were as follows:
Money Market U.S. Treasury U.S. Government Municipal
Portfolio Portfolio Portfolio Portfolio
--------- --------- --------- ---------
2008 2007 2008 2007 2008 2007 2008 2007
---- ---- ---- ---- ---- ---- ---- ----
Ordinary Income $281,728,508 $95,364,473 $49,756,628 $43,582,659 $15,087,433 $2,896,549 $ 1,883 $-0-
Tax-Exempt Income $-0- $-0- $-0- $-0- $-0- $-0- $10,837,515 $1,499,539
At March 31, 2008, the Fund had capital loss transactions available for Federal
income tax purposes and to be applied against future gains, if any. The capital
loss transactions were as follows:
Capital Loss Capital Loss Expiration of
Utilized Remaining Carryforwards
Money Market Portfolio -0- $ 233 2016
U.S. Treasury Portfolio -0- -0- N/A
U.S. Government Portfolio -0- 12,734 2014
54,070 2016
--------
Total U.S. Government Portfolio 66,804*
Municipal Portfolio 12,856 1,309 2010
2,234 2014
6,958 2015
--------
Total Municipal Portfolio 10,501*
* Subject to IRC limitations.
At March 31, 2008, there were no distributable earnings for the Money Market
Portfolio and U.S. Treasury Portfolio. The U.S. Government Portfolio had $42,484
of distributable earnings. The Municipal Portfolio had $55,255 of distributable
earnings.
The Fund has 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
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 and open tax years upon initial adoption and the
cumulative effect, if any, is to be reported as an adjustment to net assets.
Based on its analysis, Management has determined that the adoption of FIN 48 did
not have an impact to the Fund's financial statements upon adoption. However,
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.
7. New Accounting Pronouncement
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.
-------------------------------------------------------------------------------
DAILY INCOME FUND
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
===============================================================================
To The Board of Trustees and Shareholders of
Daily Income Fund
In our opinion, the accompanying statements of assets and liabilities, including
the schedules of investments, and the related statements of operations and of
changes in net assets and the financial highlights present fairly, in all
material respects, the financial position of Money Market Portfolio, U.S.
Treasury Portfolio, U.S. Government Portfolio and Municipal Portfolio
(constituting Daily Income Fund, hereafter referred to as the "Fund") at March
31, 2008, and the results of each of their operations, the changes in each of
their net assets and the financial highlights for each of the periods presented,
in conformity with accounting principles generally accepted in the United States
of America. These financial statements and financial highlights (hereafter
referred to as "financial statements") are the responsibility of the Fund's
management. Our responsibility is to express an opinion on these financial
statements based on our audits. We conducted our audits of these financial
statements in accordance with the standards of the Public Company Accounting
Oversight Board (United States). Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements, assessing the accounting principles used and significant estimates
made by management, and evaluating the overall financial statement presentation.
We believe that our audits, which included confirmation of securities at March
31, 2008 by correspondence with the custodian and brokers, provide a reasonable
basis for our opinion.
PricewaterhouseCoopers LLP
New York, New York
May 30, 2008
-------------------------------------------------------------------------------
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, 2008, 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 29%
Daily Income Fund - U.S. Treasury Portfolio 100%
Daily Income Fund - U.S. Government Portfolio 100%
TAX EXEMPT INCOME DISTRIBUTION
For the fiscal year ended March 31, 2008, the Municipal Portfolio paid
tax-exempt distributions in the amount of $10,837,515.
-------------------------------------------------------------------------------
DAILY INCOME FUND
BOARD APPROVAL OF INVESTMENT MANAGEMENT CONTRACT
(UNAUDITED)
===============================================================================
INFORMATION ABOUT THE INVESTMENT MANAGEMENT CONTRACT
On March 11, 2008, the Board of Trustees (the "Trustees") of the Daily
Income Fund (the "Fund") approved the continuance of the Investment Management
Contract. Specifically, with regards to the approval of the continuance of the
Investment Management Contract, the Trustees of the Fund had considered the
following factors:
1) The nature, extent and quality of services provided by the Manager.
The Trustees reviewed in detail the nature and extent of the services provided
by the Manager under the terms of the Fund's Investment Management Contract and
the quality of those services over the past year. The Trustees noted that the
services include managing the investment and reinvestment of the Fund's assets;
the provision of reports to the Board regarding changes in portfolio holdings,
important developments affecting the entities whose securities are included in
the Fund's portfolio, and the money market industry and the economy in general;
and the payment of compensation of all officers, trustees and employees of the
Fund who are officers of the Manager or its affiliates. The Board also observed
that the Manager provides various administrative services to the Fund pursuant
to the terms of a separate Administrative Services Contract and considered the
nature, extent and quality of services provided under that agreement as well.
The Trustees evaluated these factors based on their direct experience with the
Manager and in consultation with counsel to the independent Trustees. The
Trustees concluded that the nature and extent of the services provided under the
Investment Management Contract were reasonable and appropriate in relation to
the management fees, that the level of services provided by the Manager had not
diminished over the past year and that the quality of services continues to be
high. The Trustees reviewed the personnel responsible for providing advisory
services to the Fund and concluded, based on their experience and interaction
with the Manager, that (i) the Manager was able to retain quality portfolio
managers and other personnel; (ii) the Manager exhibited a high level of
diligence and attention to detail in carrying out its advisory responsibilities
under the Investment Management Contract; (iii) the Manager was responsive to
requests of the Trustees; and (iv) the Manager had kept the Trustees apprised of
developments relating to the Fund and the industry in general. The Trustees also
focused on the Manager's reputation and long-standing relationship with the Fund
and, in particular, the experience of the Manager in advising money market
funds. The Trustees also noted the high quality of services provided by the
Manager under the Administrative Services Contract.
2) The performance of the Fund and the Manager.
The Trustees reviewed the investment performance of the Fund's Money Market
Portfolio, U.S. Treasury Portfolio, U.S. Government Portfolio and Municipal
Portfolio (each, a "Portfolio" and together, the "Portfolios"), on an absolute
basis and as compared to various Lipper peer group categories for the one-month
and one-, three-, five- and ten-year periods ended December 31, 2007 for the
Money Market Portfolio and U.S. Treasury Portfolio and for the one-month and
one-year periods ended December 31, 2007 for the U.S. Government Portfolio and
Municipal Portfolio. The peer group categories included: (i) an asset-based peer
group of institutional money market funds, as classified by Lipper, as the peer
group for the Money Market Portfolio; an asset-based peer group of institutional
U.S. Treasury money market funds, as classified by Lipper, as the peer group for
the U.S. Treasury Portfolio; an asset-based peer group of U.S. government money
market funds, as classified by Lipper, as the peer group for the U.S. Government
Portfolio; and an asset- based peer group of tax-exempt money market funds, as
classified by Lipper, as the peer group for the Municipal Portfolio
("performance group 1"); (ii) a competitors' class peer group for the
Portfolios, representing other institutional money market funds that are
considered to be competitors of the Money Market Portfolio with similar
distribution channels; other institutional U.S. Treasury money market funds that
are considered to be competitors of the U.S. Treasury Portfolio with similar
distribution channels; other U.S. Government money market funds that are
considered to be competitors of the U.S. Government Portfolio with similar
distribution channels; and other tax-exempt money market funds and one
institutional tax-exempt money market fund that are considered to be competitors
of the Municipal Portfolio with similar distribution channels ("performance
group 2"); (iii) a peer group for the Money Market Portfolio of all
institutional money market funds regardless of asset size or primary channel of
distribution; a peer group for the U.S. Treasury Portfolio of all institutional
U.S. Treasury money market funds regardless of asset size or primary channel of
distribution; a peer group for the U.S. Government Portfolio of all retail U.S.
Government money market funds regardless of asset size or primary channel of
distribution; a peer group for the Municipal Portfolio of all retail tax-exempt
money market funds regardless of asset size or primary channel of distribution
("performance universe"); and (iv) for the Money Market Portfolio and U.S.
Treasury Portfolio only, other funds with similar investment objectives to the
Money Market Portfolio and the U.S. Treasury Portfolio that are advised or
sub-advised by the Manager. These peer groups are referred to collectively as
the "Peer Groups." The Manager advised the Board that it does not advise or
sub-advise other types of accounts, such as institutional and pension accounts,
with similar investment policies to the Portfolios. The Trustees used each
Portfolio's performance against their respective Peer Groups to provide
objective comparative benchmarks against which they could assess each
Portfolio's performance. The Trustees considered those comparisons as helpful in
their assessment as to whether the Manager was obtaining for the Fund's
shareholders the performance that was available in the marketplace given each
Portfolio's investment objectives, strategies, limitations and restrictions. In
reviewing each Portfolio's performance, the Trustees noted that while the U.S.
Government Portfolio's and
-------------------------------------------------------------------------------
DAILY INCOME FUND
BOARD APPROVAL OF INVESTMENT MANAGEMENT CONTRACT (CONTINUED)
(UNAUDITED)
===============================================================================
INFORMATION ABOUT THE INVESTMENT MANAGEMENT CONTRACT, CONTINUED
2) The performance of the Fund and the Manager, continued.
Municipal Portfolio's gross performance was at the bottom end of the range for
their respective Peer Groups for the one-year period, the Trustees noted that
overall the gross performance of the Portfolios against their respective Peer
Groups was satisfactory. In particular, the Trustees noted that (i) the Money
Market Portfolio's ranking against its Lipper performance universe was in the
1st quintile for the one-month, one-year and five-year periods and the 2nd
quintile for the three-year and ten-year periods; (ii) the U.S. Treasury
Portfolio's ranking against its Lipper performance universe was in the 1st
quintile for the one-month and ten-year periods and the 3rd quintile for the
one-year, three-year and five-year periods; (iii) the U.S. Government
Portfolio's ranking against its Lipper performance universe was in the 3rd
quintile for the one-month period and the 5th quintile for the one-year period;
and (iv) the Municipal Portfolio's ranking against its Lipper performance
universe was in the 1st quintile for the one-month period and the 4th quintile
for the one-year period (the 1st quintile is the highest quintile).
In connection with its assessment of the performance of the Manager, the
Trustees considered the Manager's financial condition and whether it has the
resources necessary to continue to carry out its obligations under the
Investment Management Contract. The Trustees took into account, in this regard,
the payments made by the Manager from its own resources to securities brokers,
banks and financial institutions or other industry professionals or
organizations whose customers are shareholders of the Fund ("Participating
Organizations") in connection with distribution assistance and shareholder
servicing provided by the Participating Organizations. The Trustees concluded
that the Manager had the financial resources necessary to continue to perform
its obligations under the Investment Management Contract and to continue to
provide the high quality services that it had provided to the Fund to date.
3) The cost of the advisory services and the profits to the Manager and its
affiliates from the relationship with the Fund.
In connection with the Trustees' consideration of the level of the management
fees, the Trustees considered a number of factors. The Trustees compared the
level of the management fees for the Portfolios against the advisory fees
charged to the funds in their respective Peer Groups and each Portfolio's
combined management-administrative fees against fees covering both advisory and
administrative services charged to the funds in their respective Peer Groups
(noting that the only difference in the Peer Groups for expense comparison
purposes from the Peer Groups for performance comparison purposes was that the
expense universe Peer Groups were slightly smaller). The Trustees also
considered comparative total fund expenses of each class of the Portfolios and
their respective Peer Groups. The Trustees used this combined fee information
and total expense data as a guide to help assess the reasonableness of each
Portfolio's management fee, although they acknowledged that it was difficult to
make precise comparisons with other funds since the exact nature of services
provided under the respective Peer Groups fund agreements is often not apparent.
The Trustees also viewed the respective Peer Groups fee information as a whole
as useful in assessing whether the Manager was providing services at a cost that
was competitive with other, similar funds. In assessing this information, the
Trustees considered both the comparative contract rates as well as the level of
the management fees after waivers and/or reimbursements. The Board noted that
the contract rate of each Portfolio's management fee and combined fees
(management and administrative) were reasonable when compared to the combined
fees of the respective Peer Groups. The Trustees also noted that the Manager did
not advise or sub-advise any other types of accounts, such as institutional or
pension accounts, with similar investment policies to the Portfolios. The
Trustees concluded that the level of each Portfolio's management fee was
reasonable in light of these factors.
The Trustees also considered the profitability to the Manager and its affiliates
arising out of their relationships with the Fund. In this regard the Trustees
reviewed profitability data relating to the Manager and its affiliates for the
year ended December 31, 2006. The Trustees considered revenues received by the
Manager under the Investment Management Contract and Administrative Services
Contract. In reviewing the Manager's profitability reports, the Trustees and the
Manager discussed the Manager's associated costs and the impact of such costs on
the Manager's net profitability. The Trustees concluded that the profitability
of the Fund to the Manager and its affiliates was not excessive.
4) The extent to which economies of scale will be realized as the Fund grows
and whether fee levels reflect those economies of scale.
With respect to the Trustees' consideration of economies of scale, the Trustees
discussed with the Manager whether economies of scale would be realized by it in
its management of the Fund at higher asset levels. The Trustees also discussed
with the Manager whether certain of the Manager's costs would increase if asset
levels rise and observed that as assets rise, the Manager and its affiliates may
be required to pay increased fees to Participating Organizations. The Trustees
also reviewed the respective Peer Groups data to assess whether the respective
Peer Groups funds had advisory or administrative fee breakpoints and, if so, at
what asset levels. The Trustees concluded that they were unable to assess at
this time whether economies of scale would be realized if the Fund were to
------------------------------------------------------------------------------
===============================================================================
INFORMATION ABOUT THE INVESTMENT MANAGEMENT CONTRACT, CONTINUED
experience significant asset growth. In the event of significant asset growth in
the future, the Trustees determined to reassess whether the management fees
appropriately took into account any economies of scale that had been realized as
a result of that growth.
5) Other Factors.
In addition to the above factors, the Trustees acknowledged the importance of
the ability of the Manager's affiliate, the distributor, to market the Fund
through its distribution networks, including its customer service and
administration system with banks and bank customers.
Based on a consideration of all these factors in their totality, the Trustees,
including all of the disinterested Trustees, determined that the Fund's
management fees were fair and reasonable with respect to the quality of services
that the Manager provides and in light of the other factors described above that
the Trustees deemed relevant. The Trustees based their decision on evaluations
of all these factors as a whole and did not consider any one factor as
all-important or controlling. The disinterested Trustees were also assisted by
the advice of independent counsel in making this determination..
-------------------------------------------------------------------------------
DAILY INCOME FUND
RESULTS OF PROXY
SHORT TERM INCOME FUND, INC.
SPECIAL MEETINGS OF SHAREHOLDERS, NOVEMBER 5, 2007
(UNAUDITED)
===============================================================================
A Special Meeting of the Shareholders of the Short Term Income Fund, Inc. (the
"Fund"), was held at the offices of the Fund, 600 Fifth Avenue, New York, New
York on November 5, 2007, at 9:00 A.M., Eastern time to approve the Agreements
and Plans of Reorganization and Liquidation between Daily Income Fund and the
Fund.
The results of the voting are as follows:
Money Market Portfolio Shares % of % of
Class A Shares Voted Outstanding Shares Shares Voted
-----------------------------------------------------------------------------------------------------------------------------------
For 39,420,664.20 77.69% 98.51%
Against 272,012.36 0.54% 0.68%
Abstain 323,013.80 0.64% 0.81%
Money Market Portfolio Shares % of % of
Class B Shares Voted Outstanding Shares Shares Voted
-----------------------------------------------------------------------------------------------------------------------------------
For 74,234,277.01 54.89% 95.78%
Against 1,884,334.93 1.39% 2.43%
Abstain 1,388,211.13 1.03% 1.79%
US Government Portfolio Shares % of % of
Class A Shares Voted Outstanding Shares Shares Voted
-----------------------------------------------------------------------------------------------------------------------------------
For 7,882,170.11 53.80% 79.15%
Against 1,854,489.36 12.66% 18.62%
Abstain 221,709.37 1.51% 2.23%
US Government Portfolio Shares % of % of
Class B Shares Voted Outstanding Shares Shares Voted
-----------------------------------------------------------------------------------------------------------------------------------
For 29,858,116.31 58.57% 98.68%
Against 83,809.73 0.16% 0.28%
Abstain 315,684.87 0.62% 1.04%
-------------------------------------------------------------------------------
DAILY INCOME FUND
RESULTS OF PROXY
CORTLAND TRUST, INC.
SPECIAL MEETINGS OF SHAREHOLDERS, NOVEMBER 5 and 6, 2007
(UNAUDITED)
===============================================================================
-83-
On November 5, 2007, at 9:00 A.M., Eastern time, a Special Meeting of the
Shareholders of Cortland Trust, Inc. (the "Fund"), was held at the offices of
the Fund, 600 Fifth Avenue, New York, New York to approve the Agreements and
Plans of Reorganization and Liquidation between Daily Income Fund and the Fund.
The results of the voting are as follows:
CORTLAND TRUST, INC.
SPECIAL MEETING OF SHAREHOLDERS, NOVEMBER 5, 2007
Shares % of % of
Cortland Government Voted Outstanding Shares Shares Voted
-----------------------------------------------------------------------------------------------------------------------------------
For 35,554,827.03 58.82% 96.38%
Against 853,547.98 1.41% 2.31%
Abstain 481,443.37 0.80% 1.31%
Shares % of % of
Cortland General Money Market Voted Outstanding Shares Shares Voted
-----------------------------------------------------------------------------------------------------------------------------------
For 14,337,902.75 37.97% 94.53%
Against 214,099.34 0.57% 1.41%
Abstain 615,406.78 1.63% 4.06%
Shares % of % of
Cortland Municipal Voted Outstanding Shares Shares Voted
-----------------------------------------------------------------------------------------------------------------------------------
For 2,524,650.67 38.21% 99.84%
Against 1,729.17 0.03% 0.07%
Abstain 2,192.92 0.03% 0.09%
On November 6, 2007, at 9:00 A.M., Eastern time, a Special Meeting of the
Shareholders of Cortland Trust, Inc. (the "Fund"), was held at the offices of
the Fund, 600 Fifth Avenue, New York, New York to approve the Agreements and
Plans of Reorganization and Liquidation between Daily Income Fund and the Fund.
The results of the voting are as follows:
CORTLAND TRUST, INC.
SPECIAL MEETING OF SHAREHOLDERS, NOVEMBER 6, 2007
Shares % of % of
Cortland General Money Market Voted Outstanding Shares Shares Voted
-----------------------------------------------------------------------------------------------------------------------------------
For 18,409,360.76 48.75% 95.73%
Against 214,099.34 0.57% 1.11%
Abstain 606,691.78 1.61% 3.15%
Shares % of % of
Cortland Municipal Voted Outstanding Shares Shares Voted
-----------------------------------------------------------------------------------------------------------------------------------
For 3,323,768.49 50.31% 99.88%
Against 1,729.17 0.03% 0.05%
Abstain 2,192.92 0.03% 0.07%
-------------------------------------------------------------------------------
DAILY INCOME FUND
RESULTS OF PROXY
DAILY TAX FREE INCOME FUND, INC.
SPECIAL MEETING OF SHAREHOLDERS, NOVEMBER 5, 2007
(UNAUDITED)
===============================================================================
A Special Meeting of the Shareholders of Daily Tax Free Income Fund, Inc. (the
"Fund"), was held at the offices of the Fund, 600 Fifth Avenue, New York, New
York on November 5, 2007, at 9:00 A.M., Eastern time to approve the Agreements
and Plans of Reorganization and Liquidation between Daily Income Fund and the
Fund.
The results of the voting are as follows:
Shares % of % of
Class A Shares Voted Outstanding Shares Shares Voted
-----------------------------------------------------------------------------------------------------------------------------------
For 15,007,503.260 71.91% 98.55%
Against 16,413.100 0.08% 0.11%
Abstain 204,460.890 0.98% 1.34%
Shares % of % of
Class B Shares Voted Outstanding Shares Shares Voted
-----------------------------------------------------------------------------------------------------------------------------------
For 34,369,982.210 81.13% 97.62%
Against 605,738.900 1.43% 1.72%
Abstain 232,138.560 0.55% 0.66%
Shares % of % of
Thornburg Shares Voted Outstanding Shares Shares Voted
-----------------------------------------------------------------------------------------------------------------------------------
For 9,639,516.610 50.01% 98.39%
Against 68,341.800 0.35% 0.70%
Abstain 89,772.510 0.47% 0.91%
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-------------------------------------------------------------------------------
DAILY INCOME FUND
TRUSTEES AND OFFICERS INFORMATION
(UNAUDITED)
===============================================================================
Trustees and Officers Information
March 31, 2008(1)
--------------------- ---------- --------------- ------------------------------------ ------------------ -------------------
-------------------- Position(s)Term of Office Principal Occupation(s) Number of Other
Name, Address(2), Held with and Length of During Past Portfolios in Directorships
and Age Fund Time Served(3) 5 Years Fund Complex held by
Overseen by Director
Director
---------------------- --------- --------------- ------------------------------------ ------------------ -------------------
Disinterested Directors:
--------------------- ---------- --------------- ------------------------------------ ------------------ -------------------
Albert R. Dowden, Trustee Since 2006 Corporate Director/Trustee for Director/Trustee Director/Trustee
Age 66 Annuity & Life Re (Holdings) Ltd., of seven for Annuity &
Boss Group, Ltd., Homeowners of portfolios Life Re
American Holding Corporation, AIM (Holdings) Ltd.,
Funds and CompuDyne Corporation. Boss Group, Ltd.,
Homeowners of
America Holding
Corporation, AIM
Funds and
CompuDyne
Corporation.
--------------------- ---------- --------------- ------------------------------------ ------------------ -------------------
Carl Frischling, Trustee Since 2006 Partner of Kramer Levin Naftalis & Director/Trustee Director of the AIM
Esq., Age 71 Frankel LLP (a law firm) with of seven Funds.
which he has been associated with portfolios
since 1994.
--------------------- ---------- --------------- ------------------------------------ ------------------ -------------------
Edward A. Kuczmarski, Trustee Since 2006 Certified Public Accountant and Director/Trustee Trustee of the
Age 58 Partner of Hays & Company LLP of eleven Empire
since 1980. portfolios Builder Tax Free
Bond Fund and
Director of ISI
Funds.
--------------------- ---------- --------------- ------------------------------------ ------------------ -------------------
William Lerner, Trustee Since 2006 Self-employed consultant to Director/Trustee Director of
Esq., Age 71 business entities and of seven MTM Technologies,
entrepreneurs for corporate portfolios Inc. and Coach
governance and corporate Industries Group,
secretarial services. Inc.
--------------------- ---------- --------------- ------------------------------------ ------------------ -------------------
Dr. W. Giles Mellon, Trustee Since 1987 Professor Emeritus of Business Director/Trustee N/A
Age 77 Administration in the Graduate of ten portfolios
School of Management, Rutgers
University with which he has been
associated with since 1966.
--------------------- ---------- --------------- ------------------------------------ ------------------ -------------------
James L. Schultz, Trustee Since 2006 Self-employed as a consultant. Director/Trustee Director of
Age 71 of seven Computer Research,
portfolios Inc.
--------------------- ---------- --------------- ------------------------------------ ------------------ -------------------
Robert Straniere, Trustee Since 1987 Owner, Straniere Law Firm since Director/Trustee Director of Sparx
Esq, 1980, NYS Assemblyman from 1981 to of ten portfolios Japan Funds
Age 67 2004. Partner, Hantor-Davidoff law
firm since May, 2006. Partner,
Gotham Global Group since June,
2005. President, NYC Hot Dog Co.,
since November, 2005. Counsel at
Fisher & Fisher from 1995 to 2006.
--------------------- ---------- --------------- ------------------------------------ ------------------ -------------------
--------------------- ---------- --------------- ------------------------------------ ------------------ -------------------
Dr. Yung Wong, Trustee Since 1987 Managing Director of Abacus Director/Trustee N/A
Age 69 Associates, an investment firm, of ten portfolios
since 1996.
--------------------- ---------- --------------- ------------------------------------ ------------------ -------------------
-------------------------------------------------------------------------------
===============================================================================
Trustees and Officers Information
March 31, 2008(1)
--------------------- ----------- --------------- --------------------------------------- ----------------- ------------------
-------------------- Position(s) Term of Office Principal Occupation(s) Number of Other
Name, Address(2), Held with and Length of During Past Portfolios in Directorships
and Age Fund Time Served(3) 5 Years Fund Complex held by
Overseen by Director
Director
------------------------------------- --------------- ------------ ---------------------- ----------- ------------------------
Interested Directors/Officers:
--------------------- ----------- --------------- --------------------------------------- ----------------- ------------------
Steven W. Duff, Trustee(4) Since 1994 President and Chief Executive Officer Director/Trustee None
Age 54 of Reich & Tang Asset Management, LLC and/or Officer
("RTAM, LLC"), a registered Investment of ten
Advisor, and Chief Investment Officer portfolios
of the Mutual Funds Division of RTAM,
LLC. Associated with RTAM, LLC since
1994. Mr. Duff is also
Director/Trustee of six other funds in
the Reich & Tang Fund Complex. Prior
to December 2007, Mr. Duff was
President of the Fund and President
of eight other funds in the Reich &
Tang Fund Complex, Director of Pax
World Money Market Fund, Inc.,
Principal Executive Officer of
Delafield Fund, Inc., and President
and Chief Executive Officer of Tax
Exempt Proceeds Fund, Inc. Mr. Duff
also serves as a Director of Reich &
Tang Services, Inc. and Director,
Chief Executive Officer and President
of Reich & Tang Distributors, Inc.
--------------------- ----------- --------------- --------------------------------------- ----------------- ------------------
--------------------- ----------- --------------- --------------------------------------- ----------------- ------------------
Christopher Chief Since 2007 Vice President, Chief Compliance N/A N/A
Brancazio, Compliance Officer, AML Officer and Secretary of
Age 42 Officer RTAM, LLC since September 2007. Mr.
Brancazio is also Chief Compliance
Officer and AML Officer of eight other
funds in the Reich & Tang Fund
Complex. From February 2007 to August
2007, Mr. Brancazio was a Compliance
Officer at Bank of New York Asset
Management. From March 2002 to
February 2007, Mr. Brancazio served as
Vice President, Chief Compliance
Officer, and AML Officer of Trainer
Wortham & Co. Inc., and the Trainer
Wortham Mutual Funds. Mr. Brancazio
also serves as Vice President, Chief
Compliance Officer, AML Officer and
Secretary of Reich & Tang Services,
Inc. and Reich & Tang Distributors,
Inc.
--------------------- ----------- --------------- --------------------------------------- ----------------- ------------------
Richard De Sanctis, Vice Since 2005 Executive Vice President and Chief N/A N/A
Age 51 President Operating Officer of RTAM LLC and
Reich & Tang Services, Inc. Associated
Treasurer with RTAM, LLC since 1990. Mr. De
and 1994-2004 Sanctis is also Vice President of
Assistant eight other funds in the Reich & Tang
Secretary Fund Complex, and serves as Executive
Vice President and Chief Financial
Officer of Reich & Tang Distributors,
Inc. Prior to December 2004, Mr. De
Sanctis was Treasurer and Assistant
Secretary of eleven funds in the Reich
& Tang Fund Complex and Vice
President, Treasurer and Assistant
Secretary of Cortland Trust, Inc.
--------------------- ----------- --------------- --------------------------------------- ----------------- ------------------
-------------------------------------------------------------------------------
DAILY INCOME FUND
TRUSTEES AND OFFICERS INFORMATION (CONTINUED)
(UNAUDITED)
===============================================================================
Trustees and Officers Information
March 31, 2008(1)
--------------------- ---------- --------------- ------------------------------------ ------------------ -------------------
-------------------- Position(s)Term of Office Principal Occupation(s) Number of Other
Name, Address(2), Held with and Length of During Past Portfolios in Directorships
and Age Fund Time Served(3) 5 Years Fund Complex held by
Overseen by Director
Director
--------------------- ---------- --------------- ------------------------------------ ------------------ -------------------
Interested Directors/Officers (continued):
--------------------- ---------- --------------- ------------------------------------ ------------------ -------------------
Joseph Jerkovich, Chief Since 2008 Senior Vice President and Chief N/A N/A
Age 40 Financial Financial Officer of RTAM, LLC and
Officer of Reich & Tang Service Inc.
Associated with RTAM, LLC since
September 2004. Mr. Jerkovich is
Vice President of eight other funds
in the Reich & Tang Fund Complex
and is also Senior Vice President
and Controller of Reich & Tang
Distributors, Inc.
--------------------- ---------- --------------- ------------------------------------ ------------------ -------------------
Michael Lydon, President Since 2007 Executive Vice President of RTAM, Director/Trustee N/A
Age 44 and LLC and President and Chief of nine
Director Executive Officer of the Mutual portfolios
Funds division of RTAM, LLC.
Associated with RTAM, LLC since
Vice 2005 - 2007 January 2005. Mr. Lydon was Vice
President President at Automatic Data
Processing from July 2000 to
December 2004. Mr. Lydon is also
President and Director /Trustee of
four other funds in the Reich &
Tang Fund Complex, President to New
York Daily Tax Free Income Fund,
Inc., Director of Pax World Money
Market Fund, Inc., Principal
Executive Officer of Delafield
Fund, Inc., and President and Chief
Executive Officer of Tax Exempt
Proceeds Fund, Inc. Mr. Lydon also
serves as President and Chief
Executive Officer for Reich & Tang
Services, Inc. Prior to 2007, Mr.
Lydon was Vice President of eleven
other Funds in the Reich & Tang
Fund Complex.
--------------------- ---------- --------------- ------------------------------------ ------------------ -------------------
--------------------- ---------- --------------- ------------------------------------ ------------------ -------------------
Christine Manna, Secretary Since 2007 Vice President and Assistant N/A N/A
Age 37 Secretary of RTAM, LLC. Ms. Manna
is also Secretary of eight other
funds in the Reich & Tang Complex.
Ms. Manna has been associated with
RTAM, LLC and its predecessors
since June 1995. Ms. Manna is also
Vice President and Assistant
Secretary of Reich & Tang Services,
Inc. and Reich & Tang Distributors,
Inc.
--------------------- ---------- --------------- ------------------------------------ ------------------ -------------------
-------------------------------------------------------------------------------
===============================================================================
Trustees and Officers Information
March 31, 2008(1)
--------------------- ---------- --------------- ------------------------------------ ------------------ -------------------
-------------------- Position(s)Term of Office Principal Occupation(s) Number of Other
Name, Address(2), Held with and Length of During Past Portfolios in Directorships
and Age Fund Time Served(3) 5 Years Fund Complex held by
Overseen by Director
Director
--------------------- ---------- --------------- ------------------------------------ ------------------ -------------------
Interested Directors/Officers (continued):
--------------------- ---------- --------------- ------------------------------------ ------------------ -------------------
Anthony Pace, Treasurer Since 2004 Vice President of RTAM, LLC since N/A N/A
Age 42 and September 2004. Mr. Pace was a
Assistant Director of a Client Service Group
Secretary at GlobeOp Financial Services,
Inc. from May 2002 to August 2004
and Controller/Director of Mutual
Fund Administration for Smith
Barney Funds Management LLC and
Salomon Brothers Asset Management
Inc. from 1998 to May 2002. Mr.
Pace is also Treasurer and
Assistant Secretary of eight other
funds in the Reich & Tang Fund
Complex.
--------------------- ---------- --------------- ------------------------------------ ------------------ -------------------
Robert Rickard, Vice Since 2007 Senior Vice President of RTAM, N/A N/A
Age 39 President LLC. Associated with RTAM, LLC
since December 1991. Mr. Rickard
is also Vice President of eight
other funds in the Reich & Tang
Fund Complex. Mr. Rickard is also
Senior Vice President of Reich &
Tang Distributors, Inc.
--------------------- ---------- --------------- ------------------------------------ ------------------ -------------------
(1) The Statement of Additional Information includes additional information
about Daily Income Fund (the "Fund") trustees/officers and is available,
without charge, upon request by calling the Fund's transfer agent at (800)
433-1918.
(2) The address for each of the above trustees/officers of the Fund is Reich &
Tang Asset Management, LLC, 600 Fifth Avenue, New York, NY 10020.
(3) Each Trustee will hold office for an indefinite term until the earliest of
(i) the next meeting of shareholders, if any, called for the purpose of
considering the election or re-election of such Trustee and until the
election and qualification of his or her successor, if any, elected at such
meeting, or (ii) the date a Trustee resigns or retires, or a Trustee is
removed by the Board of Trustees or shareholders, in accordance with the
Fund's Articles of Incorporation, as amended, and Amended and Restated
By-Laws. Each officer will hold office for an indefinite term until the
date he or she resigns or retires or until his\her successor is elected and
qualifies.
(4) Steven W. Duff and Michael P. Lydon may be deemed interested persons of the
Fund due to their affiliation with Reich & Tang Asset Management, LLC, the
Fund's investment advisor.
[THIS PAGE INTENTIONALLY LEFT BLANK.]
[THIS PAGE INTENTIONALLY LEFT BLANK.]
---------------------------------------------------
This report is submitted for the general
information of the shareholders of the
Fund.It is not authorized for distribution
to prospective investors in the Fund unless
preceded or accompanied by an effective prospectus,
which includes information regarding the Fund's
objectives and policies, experience of its
management, marketability of shares, and other
information.
--------------------------------------------------
Daily Income Fund
600 Fifth Avenue
New York, New York 10020
Manager
Reich & Tang Asset Management, LLC
600 Fifth Avenue
New York, New York 10020
Custodian
The Bank of New York
2 Hanson Place, 7th Floor,
Brooklyn, New York 11217
Transfer Agent &
Dividend Disbursing Agent
Reich & Tang Services, Inc.
600 Fifth Avenue
New York, New York 10020
DIF 3/08A
Item 2: Code of Ethics
The registrant has adopted a Code of Ethics applicable to its Principal
Executive and Senior Financial Officers.
Item 3: Audit Committee Financial Expert
The registrant's Board of Trustees has determined that there is an audit
committee financial expert serving on its audit committee, Edward A. Kuczmarski,
who is "independent," as defined in the instructions to this Item.
Item 4: Principal Accountant Fees and Services
FYE 3/31/2008 FYE 3/31/2007
4(a) Audit Fees $188,001 $126,500
4(b) Audit Related Fees $ 0 $ 0
4(c) Tax Fees $ 16,000 $ 7,500
4(d) All Other Fees $ 0 $ 0
4(e)(1) The audit committee has adopted pre-approval policies and procedures
whereby the audit committee has pre-approved the provision of certain enumerated
tax services to the registrant by the registrant's principal accountant to the
extent the fee is less than $5,000 per occurrence.
4(e)(2) None
4(f) Not applicable.
4(g) $16,000 and $52,950, respectively, were the amount of non-audit fees that
were billed by the registrant's accountant for services rendered to (i) the
registrant, and (ii) the registrant's investment adviser and any control person
of the adviser that provides ongoing services to the registrant for the fiscal
year ended March 31, 2008. $7,500 and $49,500, respectively, were the amount of
non-audit fees that were billed by the registrant's accountant for services
rendered to (i) the registrant, and (ii) the registrant's investment adviser and
any control person of the adviser that provides ongoing services to the
registrant for the fiscal year ended March 31, 2007.
4(h) The registrant's audit committee has considered whether its principal
accountant's provision of non-audit services that were rendered to the
registrant's investment adviser, and any control persons of the investment
adviser that provides ongoing services to the registrant, that were not
pre-approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X, is
compatible with maintaining the principal accountant's independence.
Item 5: Audit Committee of Listed Registrants
Not applicable.
Item 6: Schedule of Investments
Schedule of Investments in securities of unaffiliated issuers is included under
Item 1.
Item 7: Disclosure of Proxy Voting Policies and Procedures for Closed-End
Management Investment Companies
Not applicable.
Item 8: Purchases of Equity Securities by Closed-End Management Investment
Company and Affiliated Purchasers
Not applicable.
Item 9: Submission of Matters to a Vote of Security Holders
There were no material changes to the procedures by which shareholders may
recommend nominees to the registrant's board of directors that were implemented
after the registrant last provided disclosure in response to the requirements of
Item 7(d)(2)(ii)(G) of Schedule 14A, or this Item 9.
Item 10: Controls and Procedures
(a) The registrant's Principal Executive Officer and Principal Financial
Officer have evaluated the design and operation of the registrant's
disclosure controls and procedures within 90 days of this filing and
have concluded that the registrant's disclosure controls and procedures
were effective in ensuring that information required to be disclosed by
the registrant in this Form N-CSR was recorded, processed, summarized
and reported on a timely basis.
(b) There were no changes in the registrant's internal controls over
financial reporting that occurred during the second fiscal quarter of
the period covered by this report that have materially affected, or are
reasonably likely to affect, the registrant's internal controls over
financial reporting.
Item 11: Exhibits
(a)(1) Code of Ethics.
(a)(2) Certifications of Principal Executive Officer and Principal Financial
Officer, under Rule 30a-2 of the Investment Company Act of 1940.
(a)(3) Not applicable.
(b) Certifications of Principal Executive Officer and Principal Financial
Officer, under Section 906 of the Sarbanes-Oxley Act of 2002 and 18
U.S.C. ss.1350.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) Daily Income Fund
By (Signature and Title)* /s/ Christine Manna
Christine Manna, Secretary
Date: June 12, 2008
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/ Michael P. Lydon
Michael P. Lydon, President
Date: June 12, 2008
By (Signature and Title)* /s/ Joseph Jerkovich
Joseph Jerkovich, Treasurer
Date: June 12, 2008
* Print the name and title of each signing officer under his or her signature.