As filed with the Securities and Exchange Commission on December 4, 2009
Investment Company Act File number 811-8312
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF
REGISTERED MANAGEMENT INVESTMENT COMPANIES
Daily Income Fund
(Exact name of registrant as specified in charter)
600 Fifth Avenue
New York, NY 10020
(Address of principal executive offices) (Zip code)
Christine Manna
c/o Reich & Tang Asset Management, LLC
600 Fifth Avenue
New York, New York 10020
(Name and address of agent for service)
Registrant's telephone number, including area code: 212-830-5200
Date of fiscal year end: March 31
Date of reporting period: September 30, 2009
Item 1: Report to Stockholders
- --------------------------------------------------------------------------------
DAILY 600 Fifth Avenue
INCOME NEW YORK, NY 10020
FUND (212)830-5200
================================================================================
Semi-Annual
Report
September 30, 2009
(Unaudited)
<page>
[THIS PAGE INTENTIONALLY LEFT BLANK.]
<page>
- --------------------------------------------------------------------------------
DAILY INCOME FUND
TABLE OF CONTENTS
================================================================================
<table>
<caption>
<s> <c> <c> <c>
Shareholder Letter 4 Municipal Portfolio
Money Market Portfolio Expense Chart 41
Expense Chart 5 Schedule of Investments 43
Schedule of Investments 7 Statement of Assets and Liabilities 55
Statement of Assets and Liabilities 13 Statements of Changes in Net Assets 57
Statement of Operations 14 Financial Highlights 58
Statements of Changes in Net Assets 15 Notes to Financial Statements 62
Financial Highlights 16 Additional Information 74
U.S Treasury Portfolio
Expense Chart 21
Schedule of Investments 23
Statement of Assets and Liabilities 25
Statement of Operations 26
Statements of Changes in Net Assets 27
Financial Highlights 28
U.S. Government Portfolio
Expense Chart 32
Schedule of Investments 33
Statement of Assets and Liabilities 35
Statement of Operations 36
Statements of Changes in Net Assets 37
Financial Highlights 38
</table>
<page>
- --------------------------------------------------------------------------------
DAILY INCOME FUND
SHAREHOLDER LETTER
================================================================================
Dear Shareholder:
In a time of uncertainty it is comforting to know that some things never change.
Since its inception in 1974, Reich & Tang Funds has taken a proactive approach
to risk management. Our investment philosophy and process is more credit focused
than yield focused. Our goals of safety and preservation of capital continually
drive our investment analysis and decisions.
Recently, a number of proposals, concerning the money market industry, have been
made in the interest of providing greater stability, including recommendations
from the Investment Company Institute Money Market Working Group, the Group of
30 headed by Paul Volcker, and from the Federal Reserve Chairman Ben Bernanke.
These actions were taken in advance of anticipated rule changes by the
Securities and Exchange Commission, which were formally proposed for comments in
July, 2009. As the money market industry grapples with the appropriateness and
impact of these initiatives, rest assured that Reich & Tang Funds continues to
be very cautious given the recent events in our markets. As an organization, we
continue to believe that thorough, fundamental credit analysis is the key to
continued success in our business. Our credit analysts are constantly monitoring
the activity in the credit markets. Throughout this period of market turbulence,
we have not owned any securities that have experienced credit delinquency or
have been downgraded below Tier 1, however current and future portfolio holdings
are subject to market risk.
Reich & Tang is proud to be part of Natixis Global Asset Management, one of the
world's largest money management organizations. Natixis brings together the
expertise of multiple specialized investment managers based in the United
States, Europe and Asia to offer a wide spectrum of equity, fixed income and
alternative investment strategies. For more information on Natixis Global Asset
Management, please visit us at www.natixis.com.
We appreciate your support during this turbulent period and thank you for your
business. While it is difficult to predict the future as we navigate through
multiple complex factors in the market, we believe that our fundamental approach
to money market funds and our corporate structure enable us to continue to be a
leader in providing funds that focus on preservation of capital and liquidity
for our shareholders and valued clients.
We welcome any questions you may have about the investments in any of our
portfolios and stand ready to respond to you as we have for 35 years.
Sincerely,
\s\ Michael P. Lydon
Michael P. Lydon
President
<page>
- --------------------------------------------------------------------------------
DAILY INCOME FUND
MONEY MARKET PORTFOLIO
EXPENSE CHART
FOR THE SIX MONTHS ENDED SEPTEMBER 30, 2009
(UNAUDITED)
================================================================================
As a shareholder of the Portfolio, you incur the following ongoing costs:
management fees and other Portfolio expenses. You may also incur distribution
and/or service (12b-1) fees. This example is intended to help you understand
your ongoing costs (in dollars) of investing in the Portfolio and to compare
these costs with the ongoing costs of investing in other mutual funds.
The example is based on an investment of $1,000 invested at the beginning of the
period and held for the entire period April 1, 2009 through September 30, 2009.
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 Portfolio's actual expense
ratio and an assumed rate of return of 5% per year before expenses, which is not
the Portfolio'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 Portfolio 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.
<table>
<caption>
- ---------------------------------------------------------------------------------------------------------------------------
Institutional Class Shares
("Institutional Shares") & Pinnacle Beginning Account Ending Account Value Expenses Paid Annualized
Class Shares ("Pinnacle Shares") Value 4/01/09 09/30/09 During the Period * Expense Ratio *
- ---------------------------------------------------------------------------------------------------------------------------
<s> <c> <c> <c> <c>
Actual $1,000.00 $1,002.40 $1.25 0.25%
- ---------------------------------------------------------------------------------------------------------------------------
Hypothetical (5% return before $1,000.00 $1,023.82 $1.27 0.25%
expenses)
- ---------------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------------
Institutional Service Class Shares Beginning Account Ending Account Value Expenses Paid Annualized
("Institutional Service Shares") Value 4/01/09 09/30/09 During the Period * Expense Ratio *
- ---------------------------------------------------------------------------------------------------------------------------
Actual $1,000.00 $1,001.20 $2.46 0.49%
- ---------------------------------------------------------------------------------------------------------------------------
Hypothetical (5% return before $1,000.00 $1,022.61 $2.48 0.49%
expenses)
- ---------------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------------
Investor Class Shares Beginning Account Ending Account Value Expenses Paid Annualized
("Investor Shares") Value 4/01/09 09/30/09 During the Period * Expense Ratio *
- ---------------------------------------------------------------------------------------------------------------------------
Actual $1,000.00 $1,000.60 $3.06 0.61%
- ---------------------------------------------------------------------------------------------------------------------------
Hypothetical (5% return before $1,000.00 $1,022.01 $3.09 0.61%
expenses)
- ---------------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------------
Short Term Income Shares Class Shares Beginning Account Ending Account Value Expenses Paid Annualized
("Short Term Income Shares") Value 4/01/09 09/30/09 During the Period * Expense Ratio *
- ---------------------------------------------------------------------------------------------------------------------------
Actual $1,000.00 $1,000.20 $3.46 0.69%
- ---------------------------------------------------------------------------------------------------------------------------
Hypothetical (5% return before $1,000.00 $1,021.61 $3.50 0.69%
expenses)
- ---------------------------------------------------------------------------------------------------------------------------
</table>
<page>
- --------------------------------------------------------------------------------
DAILY INCOME FUND
MONEY MARKET PORTFOLIO
EXPENSE CHART (CONTINUED)
FOR THE SIX MONTHS ENDED SEPTEMBER 30, 2009
(UNAUDITED)
================================================================================
<table>
<caption>
- ---------------------------------------------------------------------------------------------------------------------------
Retail Class Shares Beginning Account Ending Account Value Expenses Paid Annualized
("Retail Shares") Value 4/01/09 09/30/09 During the Period * Expense Ratio *
- ---------------------------------------------------------------------------------------------------------------------------
<s> <c> <c> <c> <c>
Actual $1,000.00 $1,000.10 $3.61 0.72%
- ---------------------------------------------------------------------------------------------------------------------------
Hypothetical (5% return before $1,000.00 $1,021.46 $3.65 0.72%
expenses)
- ---------------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------------
Advantage Primary Liquidity Fund Beginning Account Ending Account Value Expenses Paid Annualized
("Advantage Shares") Value 4/01/09 09/30/09 During the Period * Expense Ratio *
- ---------------------------------------------------------------------------------------------------------------------------
Actual $1,000.00 $1,000.30 $3.41 0.68%
- ---------------------------------------------------------------------------------------------------------------------------
Hypothetical (5% return before $1,000.00 $1,021.66 $3.45 0.68%
expenses)
- ---------------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------------
money market Xpress Fund Beginning Account Ending Account Value Expenses Paid Annualized
("Xpress Shares") Value 4/01/09 09/30/09 During the Period * Expense Ratio *
- ---------------------------------------------------------------------------------------------------------------------------
Actual $1,000.00 $1,000.10 $3.56 0.71%
- ---------------------------------------------------------------------------------------------------------------------------
Hypothetical (5% return before $1,000.00 $1,021.51 $3.60 0.71%
expenses)
- ---------------------------------------------------------------------------------------------------------------------------
<fn>
* Expenses are equal to the Portfolio's annualized expense ratio multiplied by the average account value over the period (April 1,
2009 through September 30, 2009), multiplied by 183/365 (to reflect the most recent fiscal half-year).
</fn>
</table>
<page>
- --------------------------------------------------------------------------------
DAILY INCOME FUND
MONEY MARKET PORTFOLIO
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2009
(UNAUDITED)
================================================================================
<table>
<caption>
Face Maturity Interest Value
Amount Date Rate (Note 1)
------ ---- ---- --------
Commercial Paper (6.38%)
- ------------------------------------------------------------------------------------------------------------------------------------
<s> <c> <c> <c> <c>
$ 50,000,000 Societe Generale 10/22/09 0.32% $ 49,990,667
100,000,000 Standard Chartered Bank PLC 10/21/09 0.45 99,975,000
40,000,000 Standard Chartered Bank PLC 11/12/09 0.45 39,979,000
100,000,000 Standard Chartered Bank PLC 12/09/09 0.29 99,944,416
- -------------- --------------
290,000,000 Total Commercial Paper 289,889,083
- -------------- --------------
Eurodollar Certificates of Deposit (12.76%)
- ------------------------------------------------------------------------------------------------------------------------------------
$ 100,000,000 Banco Bilbao de Vizcaya Argentaria 12/28/09 0.31% $ 99,999,997
200,000,000 Credit Industriel et Commerical 10/27/09 0.45 200,001,443
4,500,000 Credit Industriel et Commerical 12/03/09 0.38 4,500,079
100,000,000 National Australia Bank 12/30/09 0.32 100,004,992
175,000,000 Societe Generale 10/01/09 0.38 175,000,000
- -------------- --------------
579,500,000 Total Eurodollar Certificates of Deposit 579,506,511
- -------------- --------------
Floating Rate Securities (0.99%)
- ------------------------------------------------------------------------------------------------------------------------------------
$ 45,000,000 Procter & Gamble International 05/07/10 0.48% $ 45,000,000
------------ -------------
45,000,000 Total Floating Rate Securities 45,000,000
------------ -------------
Foreign Commercial Paper (7.48%)
- ------------------------------------------------------------------------------------------------------------------------------------
$ 100,000,000 Danske Corporation 10/13/09 0.22% $ 99,992,667
140,000,000 Danske Corporation 10/19/09 0.22 139,984,600
100,000,000 Swedbank AB 02/11/10 0.75 99,722,916
- -------------- --------------
340,000,000 Total Foreign Commercial Paper 339,700,183
- -------------- --------------
Letter of Credit Commercial Paper (2.73%)
- ------------------------------------------------------------------------------------------------------------------------------------
$ 36,800,000 Louis Dreyfus Corporation
LOC Barclays Bank PLC 10/01/09 0.28% $ 36,800,000
27,900,000 Medical Building Funding IX, LLC
LOC KBC Bank/Bank of Nova Scotia 10/05/09 1.75 27,900,000
59,200,000 Vermont EDA Economic Development Capitalization Program - Series A
LOC Calyon 11/30/09 0.45 59,200,000
- -------------- --------------
123,900,000 Total Letter of Credit Commercial Paper 123,900,000
- -------------- --------------
Loan Participations (6.28%)
- ------------------------------------------------------------------------------------------------------------------------------------
$ 30,000,000 Army & Air Force Exchange Service with JPMorgan Chase as agent 10/26/09 0.47% $ 30,000,000
60,000,000 Army & Air Force Exchange Service with JPMorgan Chase as agent 11/16/09 0.36 60,000,000
75,000,000 Army & Air Force Exchange Service with JPMorgan Chase as agent 11/23/09 0.38 75,000,000
20,000,000 Army & Air Force Exchange Service with JPMorgan Chase as agent 12/03/09 0.35 20,000,000
50,000,000 Army & Air Force Exchange Service with JPMorgan Chase as agent 12/10/09 0.33 50,000,000
50,000,000 Army & Air Force Exchange Service with JPMorgan Chase as agent 01/08/10 0.47 50,000,000
- -------------- --------------
285,000,000 Total Loan Participations 285,000,000
- -------------- --------------
</table>
The accompanying notes are an integral part of these financial statements.
<page>
- --------------------------------------------------------------------------------
DAILY INCOME FUND
MONEY MARKET PORTFOLIO
SCHEDULE OF INVESTMENTS (CONTINUED)
SEPTEMBER 30, 2009
(UNAUDITED)
================================================================================
<table>
<caption>
Face Maturity Interest Value
Amount Date Rate (Note 1)
------ ---- ---- --------
Repurchase Agreement (3.30%)
- ------------------------------------------------------------------------------------------------------------------------------------
<s> <c> <c> <c> <c>
$ 150,000,000 Annaly Mortgage Management, purchased on 09/30/09, repurchase
proceeds at maturity $150,001,042 (Collateralized by $296,162,415
FHLMC, 0.79% to 6.00%, due 07/15/24 to 05/15/36, value $142,618,034,
FNMA, 0.81% to 5.50%, due 11/25/33 to 05/25/36, value
$14,881,966) 10/01/09 0.25% $ 150,000,000
- -------------- --------------
150,000,000 Total Repurchase Agreement 150,000,000
- -------------- --------------
Time Deposit (4.62%)
- ------------------------------------------------------------------------------------------------------------------------------------
$ 210,000,000 BNP Paribas 10/01/09 0.13% $ 210,000,000
- -------------- --------------
210,000,000 Total Time Deposit 210,000,000
- -------------- --------------
Variable Rate Demand Instruments (3.97%) (1)
- ------------------------------------------------------------------------------------------------------------------------------------
$ 3,950,000 A&M Associates Project - Series 2002
LOC U.S. Bank, N.A. 12/01/34 0.50% $ 3,950,000
1,558,000 Aztec Properties, LLC
LOC U.S. Bank, N.A. 08/01/20 1.20 1,558,000
1,030,000 Bank of Kentucky Building, LLC - Series 1999
LOC U.S. Bank, N.A. 12/01/19 1.20 1,030,000
1,400,000 Burke County, GA Development Authority IDRB
(Lichtenberg Holdings II, LLC Project) - Series 2002
LOC JPMorgan Chase Bank, N.A. 01/01/13 1.00 1,400,000
214,000 Capital One Funding Corporation
Floating Rate Option Notes - Series 1997 D
LOC JPMorgan Chase Bank, N.A. 07/02/18 0.62 214,000
905,000 Central Michigan Inns, LLC (Pohlcat Inc) - Series 2000A
LOC Wachovia Bank, N.A. 04/01/30 0.45 905,000
3,800,000 Charles K. Blandin Foundation - Series 2004 (2)
LOC Wells Fargo Bank, N.A. 05/01/19 0.45 3,800,000
2,325,000 Cinnamon Properties, Inc.
LOC U.S. Bank, N.A. 04/01/20 1.20 2,325,000
1,540,000 Cirrus Development Ltd. - Series 1999
LOC U.S. Bank, N.A. 05/01/14 1.20 1,540,000
1,855,000 CMW Real Estate, LLC - Series 2000
LOC U.S. Bank, N.A. 06/01/20 1.25 1,855,000
2,770,000 Columbus, GA Development Authority RB
(Columbus Economic Development Corporation/
Bricken Financial Project) - Series 2006
LOC Wachovia Bank, N.A. 02/01/26 0.45 2,770,000
8,050,000 D.G.Y. Real Estate LP - Series 2000A
LOC PNC Bank, N.A. 05/01/20 1.20 8,050,000
12,405,000 Delos, LLC - Series 2007A
LOC Banco Santander 03/01/37 0.60 12,405,000
1,655,000 Delta Capital LLC - Series 1996B
LOC JPMorgan Chase Bank, N.A. 10/01/26 1.07 1,655,000
1,575,000 Devin F. & Janis L. McCarthy - Series 1997
LOC U.S. Bank, N.A. 07/01/17 1.20 1,575,000
2,460,000 Eckert Seamans Cherin & Mellott, LLC - Series 2000
LOC PNC Bank, N.A. 01/01/15 0.57 2,460,000
</table>
The accompanying notes are an integral part of these financial statements.
<page>
- --------------------------------------------------------------------------------
================================================================================
<table>
<caption>
Face Maturity Interest Value
Amount Date Rate (Note 1)
------ ---- ---- --------
Variable Rate Demand Instruments (1) (continued)
- ------------------------------------------------------------------------------------------------------------------------------------
<s> <c> <c> <c> <c>
$ 6,120,000 El Dorado Enterprises of Miami, Inc. - Series 2000
LOC Wachovia Bank, N.A. 06/01/20 0.45% $ 6,120,000
4,351,253 Federal Home Loan Mortgage Corporation
Class A Certificates - Series M006 10/15/45 0.75 4,351,253
1,225,000 Goson Project - Series 1997
Guaranteed by Federal Home Loan Bank 11/01/17 1.20 1,225,000
320,000 Graves Lumber Co. Project - Series 2000
Guaranteed by Federal Home Loan Bank of Cincinnati 11/01/10 1.15 320,000
3,060,000 Healtheum, LLC - Series 2004
LOC Wells Fargo Bank, N.A. 11/01/29 0.60 3,060,000
1,550,000 HFA of Lee County, FL MHRB
(University Club Apartments) - Series 2002B
Guaranteed by Federal National Mortgage Association 05/15/35 0.75 1,550,000
3,950,000 Jeff Wyler Automotive Family, Inc.
LOC U.S. Bank, N.A. 01/02/26 1.20 3,950,000
2,275,000 Kenwood County Club, Incorporated - Series 2005
LOC U.S. Bank, N.A. 12/01/15 1.25 2,275,000
700,000 Kit Carson County, CO Agricultural Development RB
(Midwest Farms, LLC) - Series 1997
LOC Wells Fargo Bank, N.A. 06/01/27 0.45 700,000
3,405,000 Kool Capital, LLC
LOC Bank of America, N.A. 04/01/29 0.45 3,405,000
1,800,000 Lauren Company, LLC - Series 2003
LOC Wells Fargo Bank, N.A. 07/01/33 0.45 1,800,000
400,000 LRC - B Wadsworth Investors, Ltd. - Series 1997
LOC U.S. Bank, N.A. 09/01/17 1.20 400,000
900,000 LRC Meadows Investor LLC
LOC JPMorgan Chase Bank, N.A. 12/01/34 0.51 900,000
3,175,000 Maryland Health & Higher Educational Facilities Authority
(Glen Meadows Retirement Community) - Series 1999B
LOC Wachovia Bank, N.A. 07/01/29 0.35 3,175,000
5,785,000 M-B Companies, Inc. - Series 2008
LOC US Bank, N.A. 03/01/48 0.48 5,785,000
845,000 Milwaukee, WI (Historic Third Ward Parking Project)
LOC Northern Trust Bank 09/01/28 1.07 845,000
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 1.00 2,500,000
4,300,000 Mississippi Business Finance Corporation IDRB
(Pottery Barn Inc. Project) - Series 2004
LOC Bank of America, N.A. 06/01/24 1.25 4,300,000
6,060,000 Montgomery County, PA MHRB
(Brookside Manor Apartments) - Series 2001A
Collateralized by Federal National Mortgage Association 08/15/31 0.38 6,060,000
2,710,000 Mount Ontario Holdings LLC - Series 2001(2)
LOC U.S. Bank, N.A. 04/01/21 0.45 2,710,000
</table>
The accompanying notes are an integral part of these financial statements.
<page>
- --------------------------------------------------------------------------------
DAILY INCOME FUND
MONEY MARKET PORTFOLIO
SCHEDULE OF INVESTMENTS (CONTINUED)
SEPTEMBER 30, 2009
(UNAUDITED)
================================================================================
<table>
<caption>
Face Maturity Interest Value
Amount Date Rate (Note 1)
------ ---- ---- --------
Variable Rate Demand Instruments (1) (continued)
- ------------------------------------------------------------------------------------------------------------------------------------
<s> <c> <c> <c> <c>
$ 3,405,000 New Hampshire Health & Educational Facility Authority RB
(Weeks Medical Center Issue) - Series 2005B
LOC Allied Irish Bank PLC 07/01/35 0.95% $ 3,405,000
200,000 New York State HFA RB (345 East 94th Street)
Guaranteed by Federal Home Loan Mortgage Corporation 11/01/30 0.40 200,000
1,555,000 NPI Capital, LLC - Series 1999A
LOC Bank of America, N.A. 07/01/29 1.07 1,555,000
6,900,000 Olathe, KS IDRB (Diamant Board Project) - Series 1997B
LOC Svenska Handelsbanken 03/01/27 1.25 6,900,000
1,845,000 Parisi Investment, LP & Supply Co. - Series 1998
LOC U.S. Bank, N.A. 05/01/18 1.20 1,845,000
1,300,000 Pennsylvania EDFA Taxable Development RB
(West 914 Incorporation Project) - Series 1991A
LOC PNC Bank, N.A. 05/01/21 0.45 1,300,000
8,880,000 Rural Electric Cooperative Grantor Trust Certificates
(Kansas Electric Power Cooperative, Inc.) - Series 1997
LOC U.S. Government 12/18/17 1.50 8,880,000
860,000 S & S Partnership (Model Graphics) - Series 1999
LOC U.S. Bank, N.A. 09/01/19 1.20 860,000
1,180,000 Sand Run Nursery & Preserve LLC - Series 2004
LOC U.S. Bank, N.A. 03/01/24 1.20 1,180,000
10,015,000 St. Johns County IDA First Mortgage RB
(Presbyterian Retirement Communities Project) - Series 2004B
LOC Allied Irish Bank PLC 08/01/34 3.00 10,015,000
9,515,000 Stonegate-Partners I, LLC (Stonegate Partners Project) - Series 2002
LOC U.S. Bank, N.A. 06/01/34 0.50 9,515,000
6,320,000 Three Reading LP
LOC Federal Home Loan Bank of Pittsburg 06/01/24 0.40 6,320,000
3,265,000 Tom Richards, Inc. (Team Land, LLC / Team Industries)
Guaranteed by Federal Home Loan Bank of Cincinnati 12/01/16 1.00 3,265,000
1,240,000 Trendway Corporation - Series 1996
LOC Bank of America, N.A. 12/01/26 1.07 1,240,000
5,050,000 Triple Crown Investments, LLC - Series 2004
LOC Federal Home Loan Bank of Dallas 08/01/25 0.50 5,050,000
3,038,000 Washington State HFC Non-Profit Housing RB
(Rockwood Program) - Series B (2)
LOC Wells Fargo Bank, N.A. 01/01/30 0.50 3,038,000
8,400,000 Wellstone Mills LLC - Series 2004A
LOC PNC Bank, N.A. 12/15/24 0.57 8,400,000
1,500,000 Westchester County, NY IDA RB
(B.W.P. Distributors Inc.) - Series 1997
LOC Wachovia Bank, N.A. 10/01/28 0.45 1,500,000
325,000 Westchester Presbyterian Church
LOC U.S. Bank, N.A. 09/01/13 1.20 325,000
1,614,342 Wilmington Trust Company (Amtrak Trust 93-A) - Series B Notes
Guaranteed by General Electric Company 01/01/11 9.00 1,614,342
785,000 Windsor Medical Center, Inc. - Series 1997
LOC Federal Home Loan Bank 12/03/18 1.00 785,000
- -------------- --------------
180,115,595 Total Variable Rate Demand Instruments 180,115,595
- -------------- --------------
</table>
The accompanying notes are an integral part of these financial statements.
<page>
- --------------------------------------------------------------------------------
================================================================================
<table>
<caption>
Face Maturity Interest Value
Amount Date Rate (Note 1)
------ ---- ---- --------
Yankee Certificates of Deposit (51.68%)
- ------------------------------------------------------------------------------------------------------------------------------------
<s> <c> <c> <c> <c>
$ 194,000,000 Bank of Nova Scotia 03/02/10 0.33% $ 194,000,000
100,000,000 Barclays Bank PLC 03/15/10 0.57 100,000,000
150,000,000 Bayerische Hypo-Und Vereinsbank 10/01/09 0.60 150,000,000
75,300,000 Bayerische Hypo-Und Vereinsbank 10/19/09 0.57 75,300,376
150,000,000 Calyon North America Inc. 03/04/10 0.37 150,006,405
15,000,000 Calyon North America Inc. 03/24/10 0.36 15,013,740
37,400,000 Credit Industriel et Commerical 10/28/09 0.49 37,400,000
183,900,000 Deutsche Bank A.G. 11/06/09 0.30 183,900,919
100,400,000 Dexia Credit Local de France 10/19/09 0.51 100,400,501
125,000,000 Dexia Credit Local de France 02/06/10 0.50 125,000,000
85,700,000 Kreditbank 11/17/09 0.59 85,701,117
124,100,000 Kreditbank 12/08/09 0.33 124,102,343
100,400,000 Landesbank Hessen-Thueringen Girozentrale 10/15/09 0.51 100,400,390
136,000,000 Landesbank Hessen-Thueringen Girozentrale 12/11/09 0.62 136,002,676
144,700,000 Rabobank Nederland 12/11/09 0.24 144,700,000
99,400,000 Rabobank Nederland 01/19/10 0.27 99,401,517
100,000,000 Royal Bank of Scotland 10/07/09 0.54 100,000,167
100,000,000 Royal Bank of Scotland 10/19/09 0.52 100,000,250
205,400,000 Skandinav Enskilda Banken NY 11/13/09 0.50 205,401,225
120,050,000 Svenska Handelsbanken 01/29/10 0.40 120,057,964
- -------------- --------------
2,346,750,000 Total Yankee Certificates of Deposit 2,346,789,590
- -------------- --------------
Total Investments (100.19%) (Cost $4,549,900,962+) 4,549,900,962
Liabilities in excess of cash and other assets (-0.19%) (8,707,726)
--------------
Net Assets (100.00%) $4,541,193,236
==============
<fn>
+ Aggregate cost for federal income tax purposes is identical. All securities are valued at amortized cost and
as a result, there is no unrealized appreciation and depreciation.
</fn>
FOOTNOTES:
1) 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.
2) Securities payable on demand at par including accrued interest (with one
day notice). Interest rate is adjusted daily. The rate shown is the rate in
effect at the date of this statement.
</table>
<table>
<caption>
KEY:
<s> <c> <c> <c> <c> <c>
EDA = Economic Development Authority IDA = Industrial Development Authority
EDFA = Economic Development Finance Authority IDRB = Industrial Development Revenue Bond
FHLMC = Federal Home Loan Mortgage Corporation LOC = Letter of Credit
FNMA = Federal National Mortgage Association MHRB = Multi-Family Housing Revenue Bond
HFA = Housing Finance Authority RB = Revenue Bond
HFC = Housing Finance Commission
</table>
The accompanying notes are an integral part of these financial statements.
<page>
- --------------------------------------------------------------------------------
DAILY INCOME FUND
MONEY MARKET PORTFOLIO
BREAKDOWN OF PORTFOLIO HOLDINGS BY MATURITY
SEPTEMBER 30, 2009
(UNAUDITED)
================================================================================
<table>
<caption>
- --------------------------------------------------------------------------------------
Securities Maturing in Value % of Portfolio
- --------------------------------------------------------------------------------------
<s> <c> <c>
Less than 31 Days $ 2,063,261,655 45.35%
31 through 60 Days 694,982,261 15.27
61 through 90 Days 738,449,511 16.23
91 through 120 Days 249,406,509 5.48
121 through 180 Days 803,801,026 17.67
Over 180 Days -0- -0-
- --------------------------------------------------------------------------------------
Total $ 4,549,900,962 100.00%
- --------------------------------------------------------------------------------------
</table>
The accompanying notes are an integral part of these financial statements.
<page>
- --------------------------------------------------------------------------------
DAILY INCOME FUND
MONEY MARKET PORTFOLIO
STATEMENT OF ASSETS AND LIABILITIES
SEPTEMBER 30, 2009
(UNAUDITED)
================================================================================
<table>
<caption>
ASSETS
<s> <c>
Investments in securities, at amortized cost (Note 1)............................. $ 4,399,900,962
Repurchase agreements............................................................. 150,000,000
Accrued interest receivable....................................................... 2,215,140
Prepaid expenses.................................................................. 73,807
------------------
Total assets............................................................... 4,552,189,909
------------------
LIABILITIES
Payable to affiliates (Note 2).................................................... 1,109,131
Due to Custodian.................................................................. 8,572,530
Accrued expenses.................................................................. 1,276,183
Dividends payable................................................................. 38,829
------------------
Total liabilities.......................................................... 10,996,673
------------------
Net assets........................................................................ $ 4,541,193,236
==================
SOURCE OF NET ASSETS
Net capital paid in on shares of capital stock (Note 5)........................... $ 4,543,017,214
Accumulated net realized loss..................................................... (1,823,978)
------------------
Net assets........................................................................ $ 4,541,193,236
==================
</table>
<table>
<caption>
Net asset value, per share (Note 5):
Class Name Net Assets Shares Outstanding Net Asset Value
<s> <c> <c> <c>
Institutional Shares........................ $341,836,845 341,970,121 $1.00
Institutional Service Shares................ $330,154,745 330,283,466 $1.00
Investor Shares............................. $289,365,388 289,478,206 $1.00
Short Term Income Shares.................... $291,433,706 291,547,331 $1.00
Retail Class Shares......................... $1,164,427,116 1,164,881,105 $1.00
Pinnacle Shares............................. $189,949,465 190,023,523 $1.00
Advantage Shares............................ $1,658,976,717 1,659,623,521 $1.00
Xpress Shares............................... $275,049,254 275,156,491 $1.00
</table>
The accompanying notes are an integral part of these financial statements.
<page>
- --------------------------------------------------------------------------------
DAILY INCOME FUND
MONEY MARKET PORTFOLIO
STATEMENT OF OPERATIONS
SIX MONTHS ENDED SEPTEMBER 30, 2009
(UNAUDITED)
================================================================================
<table>
<caption>
INVESTMENT INCOME
<s> <c>
Income:
Interest........................................................................ $ 17,573,524
------------------
Expenses: (Note 2)
Investment management fee....................................................... 2,899,487
Administration fee.............................................................. 1,208,120
Shareholder servicing fee (Institutional Service Shares)........................ 342,792
Shareholder servicing fee (Investor Shares)..................................... 416,431
Shareholder servicing fee (Short Term Income Shares)............................ 357,311
Shareholder servicing fee (Retail Shares)....................................... 1,579,657
Shareholder servicing fee (Advantage Shares).................................... 2,089,244
Shareholder servicing fee (Xpress Shares)....................................... 364,839
Distribution fee (Investor Shares).............................................. 333,145
Distribution fee (Short Term Income Shares)..................................... 643,160
Distribution fee (Retail Shares)................................................ 4,107,109
Distribution fee (Advantage Shares)............................................. 6,267,732
Distribution fee (Xpress Shares)................................................ 1,094,517
Custodian expenses.............................................................. 129,623
Shareholder servicing and related shareholder expenses+......................... 918,146
Legal, compliance and filing fees............................................... 678,039
Audit and accounting............................................................ 331,790
Trustees' fees and expenses..................................................... 193,545
Other........................................................................... 1,235,833
------------------
Total expenses.................................................................. 25,190,520
Less: Fees waived (Note 2)............................................... (10,356,508)
------------------
Net expenses.................................................................... 14,834,012
------------------
Net investment income........................................................... 2,739,512
REALIZED GAIN (LOSS) ON INVESTMENTS
Net realized gain (loss) on investments............................................. 29,652
------------------
Increase in net assets from operations.............................................. $ 2,769,164
==================
<fn>
+ Includes class specific transfer agency expenses after fee waivers of $25,978, $27,558, $82,003, $79,043 $311,101,
and $9,635 for the Institutional, Institutional Service, Investor, Short Term Income, Retail and Pinnacle Shares
respectively.
</fn>
</table>
The accompanying notes are an integral part of these financial statements.
<page>
- --------------------------------------------------------------------------------
DAILY INCOME FUND
MONEY MARKET PORTFOLIO
STATEMENTS OF CHANGES IN NET ASSETS
================================================================================
<table>
<caption>
Six Months Ended Year
September 30, 2009 Ended
(Unaudited) March 31, 2009
---------- --------------
<s> <c> <c>
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income............................................ $ 2,739,512 $ 101,023,758
Net realized gain (loss) on investments.......................... 29,652 (1,853,397)
--------------- ----------------
Increase in net assets from operations............................... 2,769,164 99,170,361
Dividends to shareholders from net investment income:
Institutional Shares............................................. (1,099,478) (13,991,358)
Institutional Service Shares..................................... (254,954) (7,356,861)
Investor Shares.................................................. (206,979) (6,230,173)
Short-Term Income Shares......................................... (42,084) (4,555,500)
Retail Shares.................................................... (129,614) (23,229,468)
Pinnacle Shares.................................................. (466,139) (4,600,060)
Advantage Shares................................................. (440,089) (37,383,828)
Xpress Shares.................................................... (29,633) (3,676,510)
--------------- ----------------
Total dividends to shareholders............................. (2,668,970) (101,023,758)
--------------- ----------------
Distributions to shareholders from realized gains on investments:
Institutional Shares............................................. -0- (8,619)
Institutional Service Shares..................................... -0- (5,660)
Investor Shares.................................................. -0- (3,429)
Short-Term Income Shares......................................... -0- (3,074)
Retail Shares.................................................... -0- (16,139)
Pinnacle Shares.................................................. -0- (1,904)
Advantage Shares................................................. -0- (28,594)
Xpress Shares.................................................... -0- (3,083)
--------------- ----------------
Total distributions to shareholders......................... -0- (70,502)
--------------- ----------------
Capital share transactions (Note 5):
Institutional Shares............................................. 46,812,587 (456,371,209)
Institutional Service Shares..................................... 130,506,259 (60,829,508)
Investor Shares.................................................. (48,358,278) 21,292,828
Short-Term Income Shares......................................... 29,204,557 (35,162,097)
Retail Shares.................................................... (220,448,674) (54,510,269)
Pinnacle Shares.................................................. (13,004,216) 24,817,334
Advantage Shares................................................. (45,963,827) (1,746,069,230)
Xpress Shares.................................................... 3,880,216 (932,810)
--------------- ----------------
Total capital share transactions........................... (117,371,376) (2,307,764,961)
--------------- ----------------
Total increase/(decrease) ....................................... (117,271,182) (2,309,688,860)
Net assets:
Beginning of period.............................................. 4,658,464,418 6,968,153,278
--------------- ----------------
End of period.................................................... $ 4,541,193,236 $ 4,658,464,418
=============== ================
Overdistributed net investment income................................ $ -0- $ (70,542)
=============== ================
</table>
The accompanying notes are an integral part of these financial statements.
<page>
- --------------------------------------------------------------------------------
DAILY INCOME FUND
MONEY MARKET PORTFOLIO
FINANCIAL HIGHLIGHTS
(UNAUDITED)
================================================================================
<table>
<caption>
Six Months Ended For the Years Ended March 31,
----------------------------------------------------------
Institutional shares September 30, 2009 2009 2008 2007 2006 2005
- -------------------- (Unaudited) ------- -------- -------- -------- --------
---------
<s> <c> <c> <c> <c> <c> <c>
Per Share Operating Performance:
(for a share outstanding throughout the period)
Net asset value, beginning of period........ $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
---------- ---------- ---------- ---------- ---------- ----------
Income from investment operations:
Net investment income.................... 0.002 0.024 0.048 0.051 0.036 0.016
Net realized and unrealized gain(loss) on investments 0.000 0.000 0.000 0.000 -- 0.000
---------- ---------- ---------- ---------- ---------- ----------
Total from investment operations......... 0.002 0.024 0.048 0.051 0.036 0.016
Less distributions from:
Dividends from net investment income..... (0.002) (0.024) (0.048) (0.051) (0.036) (0.016)
Net realized gain(loss) on investment.... -- (0.000) (0.000) (0.000) -- (0.000)
---------- ---------- ---------- ---------- ---------- ----------
Total Distributions...................... (0.002) (0.024) (0.048) (0.051) (0.036) (0.016)
---------- ---------- ---------- ---------- ---------- ----------
Net asset value, end of period.............. $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
========== ========== ========== ========== ========== ==========
Total Return................................ 0.24%(a) 2.46% 4.91% 5.19% 3.63% 1.61%
Ratios/Supplemental Data
Net assets, end of period (000's)........... $ 341,837 $ 295,039 $ 751,532 $ 639,573 $ 372,721 $ 215,314
Ratios to average net assets:
Expenses (net of fees waived) (b)........ 0.25%(c) 0.22% 0.20% 0.20% 0.20% 0.20%
Net investment income.................... 0.45%(c) 2.52% 4.78% 5.10% 3.66% 1.63%
Management and administration fees waived 0.05%(c) 0.06% 0.02% 0.03% 0.06% 0.08%
Transfer agency fees waived.............. 0.01%(c) 0.01% 0.01% -- 0.02% 0.02%
Expense paid indirectly.................. -- 0.00% 0.00% 0.00% 0.00% 0.00%
</table>
<table>
<caption>
Six Months Ended For the Years Ended March 31,
----------------------------------------------------------
Institutional Service shares September 30, 2009 2009 2008 2007 2006 2005
- ---------------------------- (Unaudited) ------- -------- -------- -------- --------
---------
<s> <c> <c> <c> <c> <c> <c>
Per Share Operating Performance:
(for a share outstanding throughout the period)
Net asset value, beginning of period........ $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
--------- --------- --------- --------- ---------- ----------
Income from investment operations:
Net investment income.................... 0.001 0.022 0.046 0.048 0.033 0.013
Net realized and unrealized gain(loss) on investments 0.000 0.000 0.000 0.000 -- 0.000
---------- ---------- ---------- ---------- ---------- ----------
Total from investment operations......... 0.001 0.022 0.046 0.048 0.033 0.013
Less distributions from:
Dividends from net investment income..... (0.001) (0.022) (0.046) (0.048) (0.033) (0.013)
Net realized gain(loss) on investment.... -- (0.000) (0.000) (0.000) -- (0.000)
---------- ---------- ---------- ---------- ---------- ----------
Total Distributions...................... (0.001) (0.022) (0.046) (0.048) (0.033) (0.013)
---------- ---------- ---------- ---------- ---------- ----------
Net asset value, end of period.............. $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
========== ========== ========== ========== ========== ===========
Total Return................................ 0.12%(a) 2.21% 4.65% 4.92% 3.36% 1.34%
Ratios/Supplemental Data
Net assets, end of period (000's)........... $ 330,155 $ 199,697 $ 260,609 $ 267,865 $ 224,050 $ 119,898
Ratios to average net assets:
Expenses (net of fees waived) (b)........ 0.49%(c) 0.47% 0.45% 0.45% 0.47% 0.47%
Net investment income.................... 0.19%(c) 2.31% 4.50% 4.83% 3.39% 1.49%
Management and administration fees waived 0.05%(c) 0.06% 0.02% 0.03% 0.06% 0.08%
Shareholder servicing fees waived........ 0.02%(c) 0.01% 0.01% -- -- --
Transfer agency fees waived.............. -- -- -- -- 0.01% 0.02%
Expense paid indirectly.................. 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
<fn>
(a) Unannualized
(b) Includes expense paid indirectly, if applicable.
(c) Annualized
</fn>
</table>
The accompanying notes are an integral part of these financial statements.
<page>
- --------------------------------------------------------------------------------
================================================================================
<table>
<caption>
Six Months Ended Commencement of Operations
Investor shares September 30, 2009 Year Ended March 31, November 28, 2006 through
- --------------- --------------------
(Unaudited) 2009 2008 March 31, 2007
---------- -------- --------- ---------------
<s> <c> <c> <c> <c>
Per Share Operating Performance:
(for a share outstanding throughout the period)
Net asset value, beginning of period................... $ 1.00 $ 1.00 $ 1.00 $ 1.00
--------- -------- -------- --------
Income from investment operations:
Net investment income.................... 0.001 0.020 0.044 0.016
Net realized and unrealized gain(loss) on investments 0.000 0.000 0.000 0.000
--------- -------- -------- --------
Total from investment operations......... 0.001 0.020 0.044 0.016
Less distributions from:
Dividends from net investment income..... (0.001) (0.020) (0.044) (0.016)
Net realized gain(loss) on investment.... -- (0.000) (0.000) (0.000)
--------- -------- -------- --------
Total Distributions...................... (0.001) (0.020) (0.044) (0.016)
--------- -------- -------- --------
Net asset value, end of period.............. $ 1.00 $ 1.00 $ 1.00 $ 1.00
========= ======== ======== ========
Total Return................................ 0.06%(a) 2.01% 4.44% 1.62%(a)
Ratios/Supplemental Data
Net assets, end of period (000's)........... $289,365 $ 337,701 $316,547 $151,947
Ratios to average net assets:
Expenses (net of fees waived) (b)........ 0.61%(c) 0.68% 0.65% 0.65%(c)
Net investment income.................... 0.12%(c) 1.96% 4.25% 4.76%(c)
Management and administration fees waived 0.05%(c) 0.06% 0.02% 0.03%(c)
Shareholder servicing and distribution fees waived 0.13%(c) 0.04% 0.04% --
Transfer agency fees waived.............. -- -- -- 0.03%(c)
Expense paid indirectly.................. -- 0.00% 0.00% 0.00%(c)
</table>
<table>
<caption>
Six Months Ended Commencement of Operations
Short Term Income shares September 30, 2009 Year Ended March 31, February 12, 2007 through
- ------------------------ --------------------
(Unaudited) 2009 2008 March 31, 2007
---------- -------- --------- ---------------
<s> <c> <c> <c> <c>
Per Share Operating Performance:
(for a share outstanding throughout the period)
Net asset value, beginning of period................... $ 1.00 $ 1.00 $ 1.00 $ 1.00
--------- -------- -------- --------
Income from investment operations:
Net investment income.................... 0.000 0.017 0.041 0.006
Net realized and unrealized gain(loss) on investments 0.000 0.000 0.000 0.000
--------- -------- -------- --------
Total from investment operations......... 0.000 0.017 0.041 0.006
Less distributions from:
Dividends from net investment income..... (0.000) (0.017) (0.041) (0.006)
Net realized gain(loss) on investment.... -- (0.000) (0.000) (0.000)
--------- -------- -------- --------
Total Distributions...................... (0.000) (0.017) (0.041) (0.006)
--------- -------- -------- --------
Net asset value, end of period.............. $ 1.00 $ 1.00 $ 1.00 $ 1.00
========= ======== ======== ========
Total Return................................ 0.02%(a) 1.71% 4.14% 0.59%(a)
Ratios/Supplemental Data
Net assets, end of period (000's)........... $291,434 $262,237 $297,508 $ 57,097
Ratios to average net assets:
Expenses (net of fees waived) (b)........ 0.69%(c) 0.96% 0.94% 0.94%(c)
Net investment income.................... 0.03%(c) 1.71% 3.92% 4.47%(c)
Management and administration fees waived 0.05%(c) 0.06% 0.02% 0.03%(c)
Shareholder servicing and distribution fees waived 0.30%(c) 0.03% 0.01% --
Expense paid indirectly.................. -- 0.00% 0.00% 0.00%(c)
<fn>
(a) Unannualized
(b) Includes expense paid indirectly, if applicable.
(c) Annualized
</fn>
</table>
The accompanying notes are an integral part of these financial statements.
<page>
- --------------------------------------------------------------------------------
DAILY INCOME FUND
MONEY MARKET PORTFOLIO
FINANCIAL HIGHLIGHTS (CONTINUED)
(UNAUDITED)
================================================================================
<table>
<caption>
Six Months Ended Commencement of Operations
Retail shares September 30, 2009 Year Ended March 31, November 28, 2006 through
- ------------- ---------------------
(Unaudited) 2009 2008 March 31, 2007
---------- -------- --------- ---------------
<s> <c> <c> <c> <c>
Per Share Operating Performance:
(for a share outstanding throughout the period)
Net asset value, beginning of period................... $ 1.00 $ 1.00 $ 1.00 $ 1.00
--------- -------- -------- --------
Income from investment operations:
Net investment income.................... 0.000 0.016 0.040 0.015
Net realized and unrealized gain(loss) on investments 0.000 0.000 0.000 0.000
--------- -------- -------- --------
Total from investment operations......... 0.000 0.016 0.040 0.015
Less distributions from:
Dividends from net investment income..... (0.000) (0.016) (0.040) (0.015)
Net realized gain(loss) on investment.... -- (0.000) (0.000) (0.000)
--------- -------- -------- --------
Total Distributions...................... (0.000) (0.016) (0.040) (0.015)
--------- -------- -------- --------
Net asset value, end of period.............. $ 1.00 $ 1.00 $ 1.00 $ 1.00
========= ======== ======== ========
Total Return................................ 0.01%(a) 1.65% 4.08% 1.49%(a)
Ratios/Supplemental Data
Net assets, end of period (000's)........... $1,164,427 $1,384,774 $1,439,855 $ 897,904
Ratios to average net assets:
Expenses (net of fees waived) (b)........ 0.72%(c) 1.02% 1.00% 1.00%(c)
Net investment income.................... 0.02%(c) 1.64% 3.95% 4.39%(c)
Management and administration fees waived 0.05%(c) 0.06% 0.02% 0.03%(c)
Shareholder servicing and distribution fees waived 0.47%(c) 0.14% 0.14% 0.10%(c)
Transfer agency fees waived.............. -- -- -- 0.03%(c)
Expense paid indirectly.................. -- 0.00% 0.00% 0.00%(c)
</table>
<table>
<caption>
Six Months Ended For the Years Ended March 31,
----------------------------------------------------------
Pinnacle shares September 30, 2009 2009 2008 2007 2006 2005
- ---------------------------- (Unaudited) ------- -------- -------- -------- --------
---------
<s> <c> <c> <c> <c> <c> <c>
Per Share Operating Performance:
(for a share outstanding throughout the period)
Net asset value, beginning of period........ $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
--------- --------- --------- --------- --------- ---------
Income from investment operations:
Net investment income.................... 0.002 0.024 0.048 0.051 0.036 0.016
Net realized and unrealized gain(loss) on investments 0.000 0.000 0.000 0.000 -- 0.000
--------- --------- --------- --------- --------- ---------
Total from investment operations......... 0.002 0.024 0.048 0.051 0.036 0.016
Less distributions from:
Dividends from net investment income..... (0.002) (0.024) (0.048) (0.051) (0.036) (0.016)
Net realized gain(loss) on investment.... -- (0.000) (0.000) 0.000 -- (0.000)
--------- --------- --------- --------- --------- ---------
Total Distributions...................... (0.002) (0.024) (0.048) (0.051) (0.036) (0.016)
--------- --------- --------- --------- --------- ---------
Net asset value, end of period.............. $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
========== ========== ========== ========== ========== =========
Total Return................................ 0.24%(a) 2.46% 4.91% 5.19% 3.63% 1.61%
Ratios/Supplemental Data
Net assets, end of period (000's)........... $ 189,949 $ 202,946 $ 178,213 $ 171,028 $ 134,682 $ 114,792
Ratios to average net assets:
Expenses (net of fees waived) (b)........ 0.25%(c) 0.23% 0.20% 0.20% 0.20% 0.20%
Net investment income.................... 0.48%(c) 2.40% 4.79% 5.08% 3.66% 1.63%
Management and administration fees waived 0.05%(c) 0.06% 0.02% 0.03% 0.06% 0.08%
Transfer agency fees waived.............. 0.01%(c) 0.01% 0.01% -- 0.02% 0.02%
Expense paid indirectly.................. -- 0.00% 0.00% 0.00% 0.00% 0.00%
<fn>
(a) Unannualized
(b) Includes expense paid indirectly, if applicable.
(c) Annualized
</fn>
</table>
The accompanying notes are an integral part of these financial statements.
<page>
- --------------------------------------------------------------------------------
================================================================================
<table>
<caption>
Six Months Ended Commencement of Operations
Advantage shares September 30, 2009 Year Ended March 31, November 1, 2006 through
- ---------------- ---------------------
(Unaudited) 2009 2008 March 31, 2007
---------- -------- --------- ---------------
<s> <c> <c> <c> <c>
Per Share Operating Performance:
(for a share outstanding throughout the period)
Net asset value, beginning of period................... $ 1.00 $ 1.00 $ 1.00 $ 1.00
--------- -------- -------- --------
Income from investment operations:
Net investment income.................... 0.000 0.016 0.040 0.018
Net realized and unrealized gain(loss) on investments 0.000 0.000 (0.000) (0.000)
--------- -------- -------- --------
Total from investment operations......... 0.000 0.016 0.040 0.018
Less distributions from:
Dividends from net investment income..... (0.000) (0.016) (0.040) (0.018)
Net realized gain(loss) on investment.... -- (0.000) (0.000) (0.000)
--------- -------- -------- --------
Total Distributions...................... (0.000) (0.016) (0.040) (0.018)
--------- -------- -------- --------
Net asset value, end of period.............. $ 1.00 $ 1.00 $ 1.00 $ 1.00
========= ======== ======== ========
Total Return................................ 0.03% (a) 1.63% 4.06% 1.81%(a)
Ratios/Supplemental Data
Net assets, end of period (000's)........... $1,658,977 $1,704,903 $3,451,676 $3,113,588
Ratios to average net assets:
Expenses (net of fees waived) (b)........ 0.68%(c) 1.04% 1.02% 1.02%(c)
Net investment income.................... 0.05%(c) 1.70% 3.95% 4.35%(c)
Management and administration fees waived 0.05%(c) 0.06% 0.02% 0.03%(c)
Shareholder servicing and distribution fees waived 0.56%(c) 0.17% 0.17% 0.16%(c)
Expense paid indirectly.................. -- 0.00% 0.00% 0.00%(c)
</table>
<table>
<caption>
Six Months Ended Year Ended Commencement of Operations
Xpress shares September 30, 2009 March 31, June 20, 2007 through
- -------------
(Unaudited) 2009 March 31, 2008
---------- --------- ---------------
<s> <c> <c> <c>
Per Share Operating Performance:
(for a share outstanding throughout the period)
Net asset value, beginning of period........ $ 1.00 $ 1.00 $ 1.00
---------- -------- ---------
Income from investment operations:
Net investment income.................... 0.000 0.014 0.028
Net realized and unrealized gain(loss) on investments 0.000 0.000 0.000
---------- -------- ---------
Total from investment operations......... 0.000 0.014 0.028
Less distributions from:
Dividends from net investment income..... (0.000) (0.014) (0.028)
Net realized gain(loss) on investment.... -- (0.000) (0.000)
---------- -------- ---------
Total Distributions...................... (0.000) (0.014) (0.028)
---------- -------- --------
Net asset value, end of period.............. $ 1.00 $ 1.00 $ 1.00
========== ======== ========
Total Return................................ 0.01%(a) 1.40% 2.88%(a)
Ratios/Supplemental Data
Net assets, end of period (000's)........... $275,049 $271,167 $ 272,213
Ratios to average net assets:
Expenses (net of fees waived) (b)........ 0.71%(c) 1.27% 1.25%(c)
Net investment income.................... 0.02%(c) 1.40% 3.82%(c)
Management and administration fees waived 0.05%(c) 0.06% 0.02%(c)
Shareholder servicing and distribution fees waived 0.53%(c) 0.00% --
Expense paid indirectly.................. -- 0.00% 0.00%(c)
<fn>
(a) Unannualized
(b) Includes expense paid indirectly, if applicable.
(c) Annualized
</fn>
</table>
The accompanying notes are an integral part of these financial statements.
<page>
[THIS PAGE INTENTIONALLY LEFT BLANK.]
<page>
- --------------------------------------------------------------------------------
DAILY INCOME FUND
U.S. TREASURY PORTFOLIO
EXPENSE CHART
FOR THE SIX MONTHS ENDED SEPTEMBER 30, 2009
(UNAUDITED)
================================================================================
As a shareholder of the Portfolio, you incur the following ongoing costs:
management fees and other Portfolio expenses. You may also incur distribution
and/or service (12b-1) fees. This example is intended to help you understand
your ongoing costs (in dollars) of investing in the Portfolio and to compare
these costs with the ongoing costs of investing in other mutual funds.
The example is based on an investment of $1,000 invested at the beginning of the
period and held for the entire period April 1, 2009 through September 30, 2009.
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 Portfolio's actual expense
ratio and an assumed rate of return of 5% per year before expenses, which is not
the Portfolio'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 Portfolio 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.
<table>
<caption>
- ---------------------------------------------------------------------------------------------------------------------------
Institutional Class Shares
("Institutional Shares") & Pinnacle Beginning Account Ending Account Value Expenses Paid Annualized
Class Shares ("Pinnacle Shares") Value 4/01/09 09/30/09 During the period* Expense Ratio*
- ---------------------------------------------------------------------------------------------------------------------------
<s> <c> <c> <c> <c>
Actual $1,000.00 $1,000.70 $1.20 0.24%
- ---------------------------------------------------------------------------------------------------------------------------
Hypothetical (5% return before expenses) $1,000.00 $1,023.87 $1.22 0.24%
- ---------------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------------
Institutional Service Class Shares Beginning Account Ending Account Value Expenses Paid Annualized
("Institutional Service Shares") Value 4/01/09 09/30/09 During the Period* Expense Ratio*
- ----------------------------------------------------------------------------------------------------------------------------
Actual $1,000.00 $1,000.00 $1.80 0.36%
- ---------------------------------------------------------------------------------------------------------------------------
Hypothetical (5% return before expenses) $1,000.00 $1,023.26 $1.83 0.36%
---------------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------------
Investor Class Shares Beginning Account Ending Account Value Expenses Paid Annualized
("Investor Shares") Value 4/01/09 09/30/09 During the Period* Expense Ratio*
- ---------------------------------------------------------------------------------------------------------------------------
Actual $1,000.00 $1,000.00 $1.80 0.36%
- ---------------------------------------------------------------------------------------------------------------------------
Hypothetical (5% return before expenses) $1,000.00 $1,023.26 $1.83 0.36%
- ---------------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------------
Short Term Income Shares Class Shares Beginning Account Ending Account Value Expenses Paid Annualized
("Short Term Income Shares") Value 4/01/09 09/30/09 During the Period* Expense Ratio*
- ---------------------------------------------------------------------------------------------------------------------------
Actual $1,000.00 $1,000.00 $1.86 0.37%
- ---------------------------------------------------------------------------------------------------------------------------
Hypothetical (5% return before expenses) $1,000.00 $1,023.21 $1.88 0.37%
- ---------------------------------------------------------------------------------------------------------------------------
</table>
<page>
- --------------------------------------------------------------------------------
DAILY INCOME FUND
U.S. TREASURY PORTFOLIO
EXPENSE CHART (CONTINUED)
FOR THE SIX MONTHS ENDED SEPTEMBER 30, 2009
(UNAUDITED)
================================================================================
<table>
<caption>
- ----------------------------------------------------------------------------------------------------------------------------
Retail Class Shares ("Retail Shares") Beginning Account Ending Account Value Expenses Paid Annualized
Value 4/01/09 09/30/09 During the Period* Expense Ratio*
- ----------------------------------------------------------------------------------------------------------------------------
<s> <c> <c> <c> <c>
Actual $1,000.00 $1,000.00 $1.80 0.36%
- ----------------------------------------------------------------------------------------------------------------------------
Hypothetical (5% return before expenses) $1,000.00 $1,023.26 $1.83 0.36%
- ----------------------------------------------------------------------------------------------------------------------------
<fn>
* Expenses are equal to the Portfolio's annualized expense ratios multiplied by the average account value over the
period (April 1, 2009 through September 30, 2009), multiplied by 183/365 (to reflect the most recent fiscal
half-year).
</fn>
</table>
<page>
- --------------------------------------------------------------------------------
DAILY INCOME FUND
U.S. TREASURY PORTFOLIO
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2009
(UNAUDITED)
================================================================================
<table>
<caption>
Face Maturity Interest Value
Amount Date Rate (Note 1)
------ ---- ---- ------
Floating Rate Securities (2.14%)
- ------------------------------------------------------------------------------------------------------------------------------------
<s> <c> <c> <c> <c>
$ 25,000,000 Bank of America, N.A.
Guaranteed by FDIC 02/05/10 0.42% $ 25,000,000
- ---------------- --------------
25,000,000 Total Floating Rate Securities 25,000,000
- ---------------- --------------
Repurchase Agreements (44.49%)
- ------------------------------------------------------------------------------------------------------------------------------------
$ 150,000,000 BNP Paribas, purchased on 09/30/09, repurchase
proceeds at maturity $150,000,167 (Collateralized by $216,132,226,
GNMA, 4.00% to 6.50%, due 05/15/34 to 09/15/39, value
$153,000,000) 10/01/09 0.04% $ 150,000,000
125,000,000 Bank of America Securities, LLC, purchased on 09/30/09, repurchase
proceeds at maturity $125,000,139 (Collateralized by $322,126,272,
GNMA, 5.00% to 6.27%, due 02/16/31 to 09/20/39, value
$127,500,001) 10/01/09 0.04 125,000,000
115,000,000 Goldman Sachs, purchased on 09/30/09, repurchase proceeds at
maturity $115,000,096 (Collateralized by $3,771,137,514, GNMA
0.00% to 6.93%, due 02/15/26 to 09/20/39, value
$117,300,000) 10/01/09 0.03 115,000,000
130,000,000 JPMorgan Chase & Co., purchased on 09/30/09, repurchase proceeds
at maturity $130,000,181 (Collateralized by $397,211,151 GNMA,
3.50% to 13.50%, due 01/15/10 to 05/15/51, value $132,601,767) 10/01/09 0.05 130,000,000
- ---------------- --------------
520,000,000 Total Repurchase Agreements 520,000,000
- ---------------- --------------
U.S. Government Obligations (54.28%)
- ------------------------------------------------------------------------------------------------------------------------------------
$ 300,000,000 U.S. Treasury Bill 10/01/09 0.01% $ 300,000,000
100,000,000 U.S. Treasury Bill 11/19/09 0.28 99,961,889
60,000,000 U.S. Treasury Bill 11/19/09 0.58 59,953,450
25,000,000 U.S. Treasury Bill 06/03/10 0.50 24,914,931
50,000,000 U.S. Treasury Bill 06/17/10 0.46 49,838,125
50,000,000 U.S. Treasury Bill 06/17/10 0.30 49,892,083
50,000,000 U.S. Treasury Bill 07/29/10 0.48 49,799,333
- ---------------- --------------
635,000,000 Total U.S. Government Obligations 634,359,811
- ---------------- --------------
Total Investments (100.91%) (Cost $1,179,359,811+) 1,179,359,811
Liabilities in excess of cash and other assets (-0.91%) (10,675,407)
--------------
Net Assets (100.00%) $1,168,684,404
==============
<fn>
+ Aggregate cost for federal income tax purposes is identical. All securities are valued at
amortized cost and as a result, there is no unrealized appreciation and depreciation.
</fn>
</table>
<table>
<caption>
KEY:
<s> <c> <c>
KEY:
GNMA = Government National Mortgage Association
FDIC = Federal Deposit Insurance Corporation
</table>
The accompanying notes are an integral part of these financial statements.
<page>
- --------------------------------------------------------------------------------
DAILY INCOME FUND
U.S. TREASURY PORTFOLIO
BREAKDOWN OF PORTFOLIO HOLDINGS BY MATURITY
SEPTEMBER 30, 2009
(UNAUDITED)
================================================================================
<table>
<caption>
- ------------------------------------ ------------------------ -------------------------
Securities Maturing in Value % of Portfolio
- ------------------------------------ ------------------------ -------------------------
<s> <c> <c>
Less than 31 Days $820,000,000 69.53%
31 through 60 Days 184,915,339 15.68
61 through 90 Days -0- -0-
91 through 120 Days -0- -0-
121 through 180 Days -0- -0-
Over 180 Days 174,444,472 14.79
- ------------------------------------ ------------------------ -------------------------
Total $1,179,359,811 100.00%
- ------------------------------------ ------------------------ -------------------------
</table>
The accompanying notes are an integral part of these financial statements.
<page>
- --------------------------------------------------------------------------------
DAILY INCOME FUND
U.S. TREASURY PORTFOLIO
STATEMENT OF ASSETS AND LIABILITIES
SEPTEMBER 30, 2009
(UNAUDITED)
================================================================================
<table>
<caption>
ASSETS
<s> <c>
Investments in securities, at amortized cost (Note 1)............................. $ 659,359,811
Repurchase agreements............................................................. 520,000,000
Accrued interest receivable....................................................... 17,281
Prepaid expenses.................................................................. 66,491
------------------
Total assets............................................................... 1,179,443,583
------------------
LIABILITIES
Payable to affiliates (Note 2).................................................... 91,324
Due to custodian.................................................................. 10,565,172
Accrued expenses.................................................................. 101,501
Dividends payable................................................................. 1,182
------------------
Total liabilities.......................................................... 10,759,179
------------------
Net assets........................................................................ $ 1,168,684,404
==================
SOURCE OF NET ASSETS
Net capital paid in on shares of capital stock (Note 5)........................... $ 1,168,684,404
------------------
Net assets........................................................................ $ 1,168,684,404
==================
</table>
<table>
<caption>
Net asset value, per share (Note 5):
Class Name Net Assets Shares Outstanding Net Asset Value
<s> <c> <c> <c>
Institutional Shares........................ $412,533,432 412,525,895 $1.00
Institutional Service Shares................ $274,326,459 274,321,447 $1.00
Investor Shares............................. $240,826,589 240,822,189 $1.00
Short Term Income Shares.................... $175,120,953 175,117,754 $1.00
Retail Shares............................... $13,001,864 13,001,627 $1.00
Pinnacle Shares............................. $52,875,107 52,874,141 $1.00
</table>
The accompanying notes are an integral part of these financial statements.
<page>
- --------------------------------------------------------------------------------
DAILY INCOME FUND
U.S. TREASURY PORTFOLIO
STATEMENT OF OPERATIONS
SIX MONTH ENDED SEPTEMBER 30, 2009
(UNAUDITED)
================================================================================
<table>
<caption>
INVESTMENT INCOME
<s> <c>
Income:
Interest........................................................................ $ 2,359,122
------------------
Expenses: (Note 2)
Investment management fee....................................................... 754,148
Administration fee.............................................................. 314,228
Shareholder servicing fee (Institutional Service Shares)........................ 279,507
Shareholder servicing fee (Investor Shares)..................................... 265,846
Shareholder servicing fee (Short Term Income Shares)............................ 228,995
Shareholder servicing fee (Retail Shares)....................................... 16,094
Distribution fee (Investor Shares).............................................. 212,677
Distribution fee (Short Term Income Shares)..................................... 412,191
Distribution fee (Retail Shares)................................................ 41,843
Custodian expenses.............................................................. 37,611
Shareholder servicing and related shareholder expenses+......................... 209,684
Legal, compliance and filing fees............................................... 152,933
Audit and accounting............................................................ 123,436
Trustees' fees and expenses..................................................... 54,065
Other........................................................................... 294,120
------------------
Total expenses.................................................................. 3,397,378
Less: Fees waived (Note 2)............................................... (1,490,306)
------------------
Net expenses.................................................................... 1,907,072
------------------
Net investment income........................................................... 452,050
REALIZED GAIN (LOSS) ON INVESTMENTS
Net realized gain (loss) on investments............................................. -0-
------------------
Increase in net assets from operations.............................................. $ 452,050
==================
<fn>
+ Includes class specific transfer agency expenses after fee waivers of $45,277, $17,090, $37,227, $33,910,
$3,685, and $5,050 for the Institutional, Institutional Service, Investor, Short Term Income, Retail Shares, and
Pinnacle respectively.
</fn>
</table>
The accompanying notes are an integral part of these financial statements.
<page>
- --------------------------------------------------------------------------------
DAILY INCOME FUND
U.S. TREASURY PORTFOLIO
STATEMENTS OF CHANGES IN NET ASSETS
================================================================================
<table>
<caption>
Six Months Ended Year
September 30, 2009 Ended
(Unaudited) March 31, 2009
----------- ----------------
<s> <c> <c>
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income......................................... $ 452,050 $ 10,955,534
Net realized gain (loss) on investments....................... -0- -0-
--------------- ----------------
Increase in net assets from operations............................ 452,050 10,955,534
Dividends to shareholders from net investment income:
Institutional Shares.......................................... (392,887) (5,196,692)
Institutional Service Shares.................................. (9,803) (2,203,320)
Investor Shares............................................... (2,651) (1,729,551)
Short Term Income Shares...................................... (2,278) (938,502)
Retail Shares................................................. (163) (83,259)
Pinnacle Shares............................................... (44,268) (804,210)
--------------- ----------------
Total dividends to shareholders.......................... (452,050) (10,955,534)
--------------- ----------------
Capital share transactions (Note 5):
Institutional Shares.......................................... (114,411,972) (17,798,924)
Institutional Service Shares.................................. 41,055,336 (97,938,921)
Investor Shares............................................... 28,119,917 (57,572,615)
Short Term Income Shares...................................... (13,017,377) 13,298,274
Retail Shares................................................. 2,592,359 (10,566,880)
Pinnacle Shares............................................... (22,770,977) 5,014,875
--------------- ----------------
Total capital share transactions........................ (78,432,714) (165,564,191)
--------------- ----------------
Total increase (decrease) .................................... (78,432,714) (165,564,191)
Net assets:
Beginning of period........................................... 1,247,117,118 1,412,681,309
--------------- ----------------
End of period................................................ $ 1,168,684,404 $ 1,247,117,118
=============== ================
Undistributed net investment income............................... $ -0- $ -0-
=============== ================
</table>
The accompanying notes are an integral part of these financial statements.
<page>
- --------------------------------------------------------------------------------
DAILY INCOME FUND
U.S. TREASURY PORTFOLIO
FINANCIAL HIGHLIGHTS
(UNAUDITED)
================================================================================
<table>
<caption>
For the Years Ended March 31,
Institutional shares Six Months Ended --------------------------------------------------------
- -------------------- September 30, 2009 2009 2008 2007 2006 2005
Per Share Operating Performance: (Unaudited) -------- ------- ------- ------- -------
(for a share outstanding throughout the period) ----------
<s> <c> <c> <c> <c> <c> <c>
Net asset value, beginning of period........ $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
--------- -------- -------- -------- --------- --------
Income from investment operations:
Net investment income.................... 0.001 0.010 0.041 0.049 0.034 0.014
Net realized and unrealized gain(loss) on investments -- -- -- -- 0.000 0.000
--------- -------- -------- -------- --------- -------
Total from investment operations......... 0.001 0.010 0.041 0.049 0.034 0.014
Less distributions from:
Dividends from net investment income..... (0.001) (0.010) (0.041) (0.049) (0.034) (0.014)
Net realized gain(loss) on investment.... -- -- -- -- (0.000) (0.000)
--------- -------- -------- -------- --------- -------
Total Distributions...................... (0.001) (0.010) (0.041) (0.049) (0.034) (0.014)
--------- -------- -------- -------- --------- --------
Net asset value, end of period.............. $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
========= ======== ======== ======== ========= ========
Total Return................................ 0.07%(a) 0.97% 4.18% 5.02% 3.48% 1.44%
Ratios/Supplemental Data
Net assets, end of period (000's)........... $412,533 $526,947 $544,746 $590,254 $829,714 $484,434
Ratios to average net assets:
Expenses (net of fees waived)(b)......... 0.24%(c) 0.23% 0.20% 0.20% 0.20% 0.20%
Net investment income.................... 0.14%(c) 0.93% 4.17% 4.89% 3.51% 1.45%
Management and Administration fees waived 0.06%(c) 0.03% 0.03% 0.03% 0.05% 0.03%
Transfer agency fees waived.............. 0.00%(c) -- -- -- -- --
Expense paid indirectly.................. -- 0.00% 0.00% 0.00% 0.00% 0.00%
</table>
<table>
<caption>
For the Years Ended March 31,
Institutional Service shares Six Months Ended --------------------------------------------------------
- ------------------------------ September 30, 2009 2009 2008 2007 2006 2005
Per Share Operating Performance: (Unaudited) -------- ------- ------- ------- -------
(for a share outstanding throughout the period) ----------
<s> <c> <c> <c> <c> <c> <c>
Net asset value, beginning of period........ $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
--------- -------- -------- -------- --------- --------
Income from investment operations:
Net investment income.................... 0.000 0.007 0.039 0.047 0.032 0.012
Net realized and unrealized gain(loss) on investments -- -- -- -- 0.000 0.000
--------- -------- -------- -------- --------- --------
Total from investment operations......... 0.000 0.007 0.039 0.047 0.032 0.012
Less distributions from:
Dividends from net investment income..... (0.000) (0.007) (0.039) (0.047) (0.032) (0.012)
Net realized gain(loss) on investment.... -- -- -- -- (0.000) (0.000).
--------- -------- -------- -------- --------- --------
Total Distributions...................... (0.000) (0.007) (0.039) (0.047) (0.032) (0.012)
--------- -------- -------- -------- --------- --------
Net asset value, end of period.............. $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
========= ======== ======== ======== ========= ========
Total Return................................ 0.00%(a) 0.75% 3.92% 4.76% 3.22% 1.19%
Ratios/Supplemental Data
Net assets, end of period (000's)........... $274,326 $233,270 $331,209 $248,962 $304,168 $236,621
Ratios to average net assets:
Expenses (net of fees waived) (b)........ 0.36%(c) 0.44% 0.45% 0.45% 0.45% 0.45%
Net investment income.................... 0.01%(c) 0.83% 3.76% 4.65% 3.17% 1.18%
Management and administration fees waived 0.06%(c) 0.03% 0.03% 0.03% 0.05% 0.03%
Shareholder Servicing fees waived........ 0.13%(c) 0.03% -- -- -- --
Transfer agency fees waived.............. 0.00%(c) -- -- -- -- --
Expense paid indirectly.................. -- 0.00% 0.00% 0.00% 0.00% 0.00%
<fn>
(a) Unannualized
(b) Includes expense offsets, if applicable.
(c) Annualized
</fn>
</table>
The accompanying notes are an integral part of these financial statements.
<page>
- --------------------------------------------------------------------------------
================================================================================
<table>
<caption>
Six Months Ended Commencement of Operations
Investor shares September 30, 2009 Year Ended March 31, February 21, 2007 through
- -------------------- --------------------
(Unaudited) 2009 2008 March 31, 2007
---------- -------- --------- ---------------
<s> <c> <c> <c> <c>
Per Share Operating Performance:
(for a share outstanding throughout the period)
Net asset value, beginning of period................... $ 1.00 $ 1.00 $ 1.00 $ 1.00
--------- -------- -------- ---------
Income from investment operations:
Net investment income.................... 0.000 0.006 0.037 0.005
Net realized and unrealized gain(loss) on investments -- -- -- --
--------- -------- -------- --------
Total from investment operations......... 0.000 0.006 0.037 0.005
Less distributions from:
Dividends from net investment income..... (0.000) (0.006) (0.037) (0.005)
Net realized gain(loss) on investment.... -- -- -- --
--------- -------- --------- --------
Total Distributions...................... (0.000) (0.006) (0.037) (0.005)
--------- -------- --------- --------
Net asset value, end of period.............. $ 1.00 $ 1.00 $ 1.00 $ 1.00
========= ======== ========= =========
Total Return................................ 0.00%(a) 0.65% 3.73% 0.50%(a)
Ratios/Supplemental Data
Net assets, end of period (000's)........... $240,827 $ 212,706 $ 270,279 $ 134,911
Ratios to average net assets:
Expenses (net of fees waived) (b)........ 0.36%(c) 0.55% 0.63% 0.63%(c)
Net investment income.................... 0.00%(c) 0.68% 3.51% 4.62%(c)
Management and administration fees waived 0.06%(c) 0.03% 0.03% 0.03%(c)
Shareholder servicing and distribution fees waived 0.35%(c) 0.15% 0.05% 0.05%(c)
Transfer agency fees waived.............. 0.01%(c) -- -- --
Expense paid indirectly.................. -- 0.00% 0.00% 0.00%(c)
</table>
<table>
<caption>
Six Months Ended Commencement of Operations
Short Term Income shares September 30, 2009 Year Ended March 31, November 2, 2006 through
- ------------------------ --------------------
(Unaudited) 2009 2008 March 31, 2007
---------- -------- --------- ---------------
<s> <c> <c> <c> <c>
Per Share Operating Performance:
(for a share outstanding throughout the period)
Net asset value, beginning of period................... $ 1.00 $ 1.00 $ 1.00 $ 1.00
--------- ---------- -------- --------
Income from investment operations:
Net investment income.................... 0.000 0.005 0.034 0.018
Net realized and unrealized gain(loss) on investments -- -- -- --
--------- ---------- -------- --------
Total from investment operations......... 0.000 0.005 0.034 0.018
Less distributions from:
Dividends from net investment income..... (0.000) (0.005) (0.034) (0.018)
Net realized gain(loss) on investment.... -- -- -- --
--------- ---------- -------- --------
Total Distributions...................... (0.000) (0.005) (0.034) (0.018)
--------- ---------- -------- --------
Net asset value, end of period.............. $ 1.00 $ 1.00 $ 1.00 $ 1.00
========= ========== ========= =========
Total Return................................ 0.00%(a) 0.51% 3.46% 1.80%(a)
Ratios/Supplemental Data
Net assets, end of period (000's)........... $175,121 $188,138 $174,840 $ 22,663
Ratios to average net assets:
Expenses (net of fees waived) (b)........ 0.37%(c) 0.70% 0.90% 0.90%(c)
Net investment income.................... 0.00%(c) 0.54% 3.03% 4.32%(c)
Management and administration fees waived 0.06%(c) 0.03% 0.03% 0.03%(c)
Shareholder servicing and distribution fees waived 0.59%(c) 0.26% 0.03% 0.03%(c)
Transfer agency fees waived.............. 0.01%(c) -- -- --
Expense paid indirectly.................. -- 0.00% 0.00% 0.00%(c)
<FN>
(a) Unannualized
(b) Includes expense paid indirectly, if applicable.
(c) Annualized
</FN>
</table>
The accompanying notes are an integral part of these financial statements.
<page>
- --------------------------------------------------------------------------------
DAILY INCOME FUND
U.S. TREASURY PORTFOLIO
FINANCIAL HIGHLIGHTS (CONTINUED)
(UNAUDITED)
================================================================================
<table>
<caption>
Six Months Ended Commencement of Operations
Retail shares September 30, 2009 Year Ended March 31, December 12, 2006 through
- ------------- ---------------------
(Unaudited) 2009 2008 March 31, 2007
---------- -------- --------- ---------------
<s> <c> <c> <c> <c>
Per Share Operating Performance:
(for a share outstanding throughout the period)
Net asset value, beginning of period................... $ 1.00 $ 1.00 $ 1.00 $ 1.00
--------- --------- -------- --------
Income from investment operations:
Net investment income.................... 0.000 0.005 0.033 0.013
Net realized and unrealized gain(loss) on investments -- -- -- --
--------- --------- -------- --------
Total from investment operations......... 0.000 0.005 0.033 0.013
Less distributions from:
Dividends from net investment income..... (0.000) (0.005) (0.033) (0.013)
Net realized gain(loss) on investment.... -- -- -- --
--------- --------- -------- --------
Total Distributions...................... (0.000) (0.005) (0.033) (0.013)
--------- --------- -------- --------
Net asset value, end of period.............. $ 1.00 $ 1.00 $ 1.00 $ 1.00
========= ======== ======== ========
Total Return................................ 0.00%(a) 0.46% 3.36% 1.28%(a)
Ratios/Supplemental Data
Net assets, end of period (000's)........... $ 13,002 $ 10,410 $ 20,976 $ 371
Ratios to average net assets:
Expenses (net of fees waived) (b)........ 0.36%(c) 0.73% 0.99% 1.00%(c)
Net investment income.................... 0.00%(c) 0.46% 1.90% 4.22%(c)
Management and administration fees waived 0.06%(c) 0.03% 0.03% 0.03%(c)
Shareholder servicing and distribution fees waived 0.82%(c) 0.44% 0.14% 0.10%(c)
Transfer agency fees waived.............. 0.01%(c) -- -- 0.03%(c)
Expense paid indirectly.................. -- 0.00% 0.00% 0.00%(c)
</table>
<table>
<caption>
For the Years Ended March 31,
Pinnacle shares Six Months Ended --------------------------------------------------------
- --------------- September 30, 2009 2009 2008 2007 2006 2005
Per Share Operating Performance: (Unaudited) ------- ------- ------- ------- -------
(for a share outstanding throughout the period) ----------
<s> <c> <c> <c> <c> <c> <c>
Net asset value, beginning of period........ $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
--------- -------- -------- -------- -------- --------
Income from investment operations:
Net investment income.................... 0.001 0.010 0.041 0.049 0.034 0.014
Net realized and unrealized gain(loss) on investments -- -- -- -- 0.000 0.000
--------- -------- -------- -------- -------- --------
Total from investment operations......... 0.001 0.010 0.041 0.049 0.034 0.014
Less distributions from:
Dividends from net investment income..... (0.001) (0.010) (0.041) (0.049) (0.034) (0.014)
Net realized gain(loss) on investment.... -- -- -- -- (0.000) (0.000)
--------- -------- -------- -------- -------- --------
Total Distributions...................... (0.001) (0.010) (0.041) (0.049) (0.034) (0.014)
--------- -------- -------- -------- -------- --------
Net asset value, end of period.............. $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
========= ======== ======== ======== ======== =======
Total Return................................ 0.07%(a) 0.97% 4.18% 5.02% 3.48% 1.44%
Ratios/Supplemental Data
Net assets, end of period (000's)........... $ 52,875 $ 75,646 $ 70,632 $ 39,628 $ 28,505 $ 39,809
Ratios to average net assets:
Expenses (net of fees waived) (b)........ 0.24%(c) 0.23% 0.20% 0.20% 0.20% 0.20%
Net investment income.................... 0.14%(c) 0.92% 3.89% 4.93% 3.51% 1.45%
Management and administration fees waived 0.06%(c) 0.03% 0.03% 0.03% 0.05% 0.03%
Transfer agency fees waived.............. 0.00%(c) -- -- -- -- --
Expense paid indirectly.................. -- 0.00% 0.00% 0.00% 0.00% 0.00%
<fn>
(a) Unannualized
(b) Includes expense offsets, if applicable.
(c) Annualized
</fn>
</table>
>
The accompanying notes are an integral part of these financial statements.
<Page>
[THIS PAGE INTENTIONALLY LEFT BLANK.]
<page>
- --------------------------------------------------------------------------------
DAILY INCOME FUND
U.S. GOVERNMENT PORTFOLIO
EXPENSE CHART
FOR THE SIX MONTHS ENDED SEPTEMBER 30, 2009
(UNAUDITED)
================================================================================
As a shareholder of the Portfolio, you incur the following ongoing costs:
management fees and other Portfolio expenses. You may also incur distribution
and/or service (12b-1) fees. This example is intended to help you understand
your ongoing costs (in dollars) of investing in the Portfolio and to compare
these costs with the ongoing costs of investing in other mutual funds.
The example is based on an investment of $1,000 invested at the beginning of the
period and held for the entire period April 1, 2009 through September 30, 2009.
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 Portfolio's actual expense
ratio and an assumed rate of return of 5% per year before expenses, which is not
the Portfolio'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 Portfolio 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.
<table>
<caption>
- ----------------------------------------------------------------------------------------------------------------------------
Institutional Class Shares Beginning Account Ending Account Value Expenses Paid Annualized
("Institutional Shares") Value 05/05/09 09/30/09 During the Period** Expense Ratio**
- ----------------------------------------------------------------------------------------------------------------------------
<s> <c> <c> <c> <c>
Actual $1,000.00 $1,001.30 $1.02 0.25%
- ----------------------------------------------------------------------------------------------------------------------------
Hypothetical (5% return before expenses) $1,000.00 $1,019.39 $1.03 0.25%
- ----------------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------------
Institutional Service Class Shares Beginning Account Ending Account Value Expenses Paid Annualized
("Institutional Service Shares") Value 04/01/09 09/30/09 During the Period* Expense Ratio*
- ---------------------------------------------------------------------------------------------------------------------------
Actual $1,000.00 $1,000.80 $2.41 0.48%
- ---------------------------------------------------------------------------------------------------------------------------
Hypothetical (5% return before expenses) $1,000.00 $1,022.66 $2.43 0.48%
- ---------------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------------
Retail Class Shares Beginning Account Ending Account Value Expenses Paid Annualized
("Retail Shares") Value 04/01/09 09/30/09 During the Period* Expense Ratio*
- ---------------------------------------------------------------------------------------------------------------------------
Actual $1,000.00 $1,000.00 $3.26 0.65%
- ---------------------------------------------------------------------------------------------------------------------------
Hypothetical (5% return before expenses) $1,000.00 $1,021.81 $3.29 0.65%
- ---------------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------------
Advantage Government Liquidity Fund Beginning Account Ending Account Value Expenses Paid Annualized
("Advantage Shares") Value 04/01/09 09/30/09 During the Period* Expense Ratio*
- ---------------------------------------------------------------------------------------------------------------------------
Actual $1,000.00 $1,000.10 $3.11 0.62%
- ---------------------------------------------------------------------------------------------------------------------------
Hypothetical (5% return before expenses) $1,000.00 $1,021.96 $3.14 0.62%
- ---------------------------------------------------------------------------------------------------------------------------
<fn>
* Expenses are equal to the Portfolio's annualized expense ratios multiplied
by the average account value over the period (April 1, 2009 through
September 30, 2009), multiplied by 183/365 (to reflect the most recent
fiscal half-year).
** Expenses are equal to the Portfolio's annualized expense ratios multiplied
by the average account value over the period (May 5, 2009 through September
30, 2009), multiplied by 149/365.
</fn>
</table>
<page>
- --------------------------------------------------------------------------------
DAILY INCOME FUND
U.S. GOVERNMENT PORTFOLIO
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2009
(UNAUDITED)
================================================================================
<table>
<caption>
Face Maturity Interest Value
Amount Date Rate (Note 1)
------ ---- ---- --------
Asset Back Commercial Paper (4.12%)
- ------------------------------------------------------------------------------------------------------------------------------------
<s> <c> <c> <c> <c>
$ 25,000,000 Straight-A-Funding LLC 12/08/09 0.23% $ 24,989,139
30,444,000 Straight-A-Funding LLC 12/14/09 0.23 30,429,607
- ---------------- -------------
55,444,000 Total Asset Back Commercial Paper 55,418,746
- ---------------- -------------
Floating Rate Securities (12.42%)
- ------------------------------------------------------------------------------------------------------------------------------------
$ 24,000,000 Bank of America LIBOR Floater
Guaranteed by FDIC 02/05/10 0.42% $ 24,000,000
25,000,000 Federal Agricultural Mortgage Corporation 03/09/10 0.62 25,000,000
40,000,000 Federal Agricultural Mortgage Corporation 04/19/10 0.61 40,000,000
25,000,000 Federal Home Loan Bank 02/19/10 0.75 25,000,000
50,000,000 Federal Home Loan Bank 03/05/10 0.76 50,000,000
2,810,117 Overseas Private Investment Corporation 01/20/10 1.11 2,810,117
- ---------------- -------------
166,810,117 Total Floating Rate Securities 166,810,117
- ---------------- -------------
Loan Participations (4.47%)
- ------------------------------------------------------------------------------------------------------------------------------------
$ 25,000,000 Army & Air Force Exchange Service with JPMorgan Chase as agent 10/19/09 0.48% $ 25,000,000
15,000,000 Army & Air Force Exchange Service with JPMorgan Chase as agent 11/16/09 0.36 15,000,000
20,000,000 Army & Air Force Exchange Service with JPMorgan Chase as agent 12/03/09 0.35 20,000,000
- ---------------- -------------
60,000,000 Total Loan Participations 60,000,000
- ---------------- -------------
Repurchase Agreements (37.21%)
- ------------------------------------------------------------------------------------------------------------------------------------
$ 155,000,000 Bank of America Securities, LLC, purchased on 09/30/09, repurchase
proceeds at maturity $155,000,172 (Collateralized by $161,648,176
GNMA, 4.00% to 5.00% due 12/15/38 to 09/15/39,
value $158,100,001) 10/01/09 0.04% $ 155,000,000
130,000,000 Bank of New York Mellon, purchased on 09/30/09, repurchase proceeds
at maturity $130,000,289 (Collateralized by $139,054,358, GNMA
4.00% to 7.00%, due 07/20/23 to 09/20/39, value $132,600,001) 10/01/09 0.08 130,000,000
165,000,000 BNP Paribas, purchased on 09/30/09, repurchase proceeds
at maturity $165,000,183 (Collateralized by $246,974,019, GNMA
4.50% to 5.50%, due 10/15/33 to 09/15/39, value $168,300,000) 10/01/09 0.04 165,000,000
50,000,000 UBS Securities, LLC, purchased on 09/30/09, repurchase proceeds
at maturity $50,000,056 (Collateralized by $60,103,000, RFIN
0.00%, due 01/15/10 to 04/15/29, value $51,001,764) 10/01/09 0.04 50,000,000
- ---------------- -------------
500,000,000 Total Repurchase Agreements 500,000,000
- ---------------- -------------
U.S. Government Agency Discount Notes (29.02%)
- ------------------------------------------------------------------------------------------------------------------------------------
$ 4,305,000 Federal Agricultural Mortgage Corporation 11/25/09 0.18% $ 4,303,816
15,000,000 Federal Farm Credit Bank 04/23/10 0.02 14,998,157
35,000,000 Federal Home Loan Bank 11/06/09 0.20 34,993,000
35,000,000 Federal Home Loan Bank 11/13/09 0.30 34,987,458
18,345,000 Federal Home Loan Bank 12/16/09 0.29 18,333,769
12,871,000 Federal Home Loan Bank 12/23/09 0.30 12,862,098
40,000,000 Federal Home Loan Bank 01/04/10 0.87 39,910,278
50,000,000 Federal Home Loan Bank 01/22/10 0.58 50,000,000
4,800,000 Federal Home Loan Bank 01/29/10 0.28 4,795,520
6,233,000 Federal Home Loan Bank 02/03/10 0.32 6,226,074
10,000,000 Federal Home Loan Bank 02/09/10 1.02 9,963,611
6,350,000 Federal Home Loan Bank 02/23/10 0.32 6,341,816
</table>
The accompanying notes are an integral part of these financial statements.
<page>
- --------------------------------------------------------------------------------
DAILY INCOME FUND
U.S. GOVERNMENT PORTFOLIO
SCHEDULE OF INVESTMENTS (CONTINUED)
SEPTEMBER 30, 2009
(UNAUDITED)
================================================================================
<table>
<caption>
Face Maturity Interest Value
Amount Date Rate (Note 1)
------ ---- ---- --------
U.S. Government Agency Discount Notes (continued)
- ------------------------------------------------------------------------------------------------------------------------------------
<s> <c> <c> <c> <c>
$ 2,275,000 Federal Home Loan Bank 02/23/10 1.11% $ 2,274,442
35,000,000 Federal Home Loan Bank 06/18/10 0.60 34,990,750
80,000,000 Federal Home Loan Mortgage Corporation 11/23/09 0.25 79,970,556
10,000,000 Federal Home Loan Mortgage Corporation 12/22/09 0.24 9,994,533
25,000,000 Federal Home Loan Mortgage Corporation 02/08/10 0.25 24,977,431
- ---------------- -------------
390,179,000 Total U.S. Government Agency Discount Notes 389,923,309
- ---------------- -------------
U.S. Government Agency Medium Term Notes (13.10%)
- ------------------------------------------------------------------------------------------------------------------------------------
$ 14,460,000 Federal Agricultural Mortgage Corporation 12/30/09 0.93% $ 14,462,504
21,500,000 Federal Agricultural Mortgage Corporation 04/14/10 0.41 21,568,172
40,000,000 Federal Farm Credit Bank 11/06/09 1.70 40,000,000
25,000,000 Federal Home Loan Bank 02/03/10 0.73 25,000,859
20,000,000 Federal Home Loan Bank 02/26/10 1.10 19,993,188
25,000,000 Federal Home Loan Bank 03/05/10 1.10 24,993,439
10,000,000 Federal Home Loan Bank 03/11/10 1.10 10,000,000
20,000,000 Federal Home Loan Bank 06/25/10 0.54 20,003,312
- ---------------- -------------
175,960,000 Total U.S. Government Agency Medium Term Notes 176,021,474
- ---------------- -------------
Total Investments (100.34%) (Cost $1,348,173,646+) 1,348,173,646
Liabilities in excess of cash and other assets (-0.34%) (4,601,194)
--------------
Net Assets (100.00%) $1,343,572,452
==============
<fn>
+ Aggregate cost for federal income tax purposes is identical. All securities are valued at amortized cost
and as a result, there is no unrealized appreciation and depreciation.
</fn>
</table>
<table>
<caption>
KEY:
<s> <c> <c>
FDIC = Federal Deposit Insurance Corporation
GNMA = Government National Mortgage Association
LIBOR = London Interbank Offered Rates
RFIN = Resolution Funding Corporation Strip Interest
</table>
BREAKDOWN OF PORTFOLIO HOLDINGS BY MATURITY:
<table>
<caption>
- ------------------------------------- --------------------------- -----------------------
Securities Maturing in Value % of Portfolio
- ------------------------------------- --------------------------- -----------------------
<s> <c> <c>
Less than 30 Days $794,999,016 58.97%
31 through 60 Days 193,254,830 14.33
61 through 90 Days 116,609,145 8.65
91 through 120 Days 57,182,899 4.24
121 through 180 Days 109,565,521 8.13
Over 180 Days 76,562,235 5.68
- ------------------------------------- --------------------------- -----------------------
Total $1,348,173,646 100.00%
- ------------------------------------- --------------------------- -----------------------
</table>
The accompanying notes are an integral part of these financial statements.
<page>
- --------------------------------------------------------------------------------
DAILY INCOME FUND
U.S. GOVERNMENT PORTFOLIO
STATEMENT OF ASSETS AND LIABILITIES
SEPTEMBER 30, 2009
(UNAUDITED)
================================================================================
<table>
<caption>
ASSETS
<s> <c>
Investments in securities, at amortized cost (Note 1)............................. $ 848,173,646
Repurchase agreements............................................................. 500,000,000
Accrued interest receivable....................................................... 744,783
Prepaid expenses.................................................................. 216,426
------------------
Total assets............................................................... 1,349,134,855
------------------
LIABILITIES
Payable to affiliates (Note 2).................................................... 226,672
Due to Custodian.................................................................. 5,222,013
Accrued expenses.................................................................. 102,399
Dividends payable................................................................. 11,319
------------------
Total liabilities.......................................................... 5,562,403
------------------
Net assets........................................................................ $ 1,343,572,452
==================
SOURCE OF NET ASSETS
Net capital paid in on shares of capital stock (Note 5)........................... $ 1,343,651,879
Accumulated net realized loss..................................................... (79,427)
------------------
Net assets........................................................................ $ 1,343,572,452
==================
</table>
<table>
<caption>
Net asset value, per share (Note 5):
Class Name Net Assets Shares Outstanding Net Asset Value
<s> <c> <c> <c>
Institutional Shares........................ $124,056,056 124,066,950 $1.00
Institutional Service Shares................ $372,842 372,875 $1.00
Retail Shares............................... $187,906,594 187,923,094 $1.00
Advantage Shares............................ $1,031,236,960 1,031,327,515 $1.00
</table>
The accompanying notes are an integral part of these financial statements.
<page>
- --------------------------------------------------------------------------------
DAILY INCOME FUND
U.S. GOVERNMENT PORTFOLIO
STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED SEPTEMBER 30, 2009
(UNAUDITED)
================================================================================
<table>
<caption>
INVESTMENT INCOME
<s> <c>
Income:
Interest........................................................................ $ 4,020,312
------------------
Expenses: (Note 2)
Investment management fee....................................................... 759,638
Administration fee.............................................................. 316,516
Shareholder servicing fee (Institutional Service Shares)........................ 414
Shareholder servicing fee (Retail Shares)....................................... 242,615
Shareholder servicing fee (Advantage Shares).................................... 1,240,632
Distribution fee (Retail Shares)................................................ 630,799
Distribution fee (Advantage Shares)............................................. 3,721,894
Custodian expenses.............................................................. 38,651
Shareholder servicing and related shareholder expenses+......................... 110,651
Legal, compliance and filing fees............................................... 137,764
Audit and accounting............................................................ 105,823
Trustees' fees and expenses..................................................... 50,535
Other........................................................................... 243,686
------------------
Total expenses.................................................................. 7,599,618
Less: Fees waived (Note 2)........................................ (3,776,598)
------------------
Net expenses.................................................................... 3,823,020
------------------
Net investment income........................................................... 197,292
REALIZED GAIN (LOSS) ON INVESTMENTS
Net realized gain (loss) on investments............................................. -0-
------------------
Increase in net assets from operations.............................................. $ 197,292
==================
<fn>
+ Includes class specific transfer agency expenses of $7,914, $33, and
$48,628 for the Institutional, Institutional Service and Retail Shares
respectively.
</fn>
</table>
The accompanying notes are an integral part of these financial statements.
<page>
- --------------------------------------------------------------------------------
DAILY INCOME FUND
U.S. GOVERNMENT PORTFOLIO
STATEMENTS OF CHANGES IN NET ASSETS
================================================================================
<table>
<caption>
Six Months Ended Year
September 30, 2009 Ended
(Unaudited) March 31, 2009
----------- --------------
INCREASE (DECREASE) IN NET ASSETS
<s> <c> <c>
Operations:
Net investment income......................................... $ 197,292 $ 7,488,201
Net realized gain (loss) on investments....................... -0- (12,623)
--------------- ----------------
Increase in net assets from operations........................ 197,292 7,475,578
Dividends to shareholders from net investment income:
Institutional Shares ......................................... (109,662) (130)
Institutional Service Shares ................................. (266) (3,481)
Retail Shares................................................. (9,650) (1,081,041)
Advantage Shares.............................................. (120,198) (6,403,549)
--------------- ----------------
Total dividends to shareholders.......................... (239,776) (7,488,201)
--------------- ----------------
Capital share transactions (Note 5):
Institutional Shares.......................................... 124,066,950 (10,472)
Institutional Service Shares.................................. 89,932 (52,528)
Retail Shares................................................. (21,002,093) 49,649,851
Advantage Shares.............................................. 60,955,223 307,936,811
--------------- ----------------
Total capital share transactions........................ 164,110,012 357,523,662
--------------- ----------------
Total increase ............................................... 164,067,528 357,511,039
Net assets:
Beginning of period........................................... 1,179,504,924 821,993,885
--------------- ----------------
End of period................................................ $ 1,343,572,452 $ 1,179,504,924
=============== ================
Undistributed net investment income............................... $ -0- $ 42,484
=============== ================
</table>
The accompanying notes are an integral part of these financial statements.
<page>
- --------------------------------------------------------------------------------
DAILY INCOME FUND
U.S. GOVERNMENT PORTFOLIO
FINANCIAL HIGHLIGHTS
================================================================================
<table>
<caption>
For the Period For the Period Commencement of Operations
May 5, 2009 through April 1, 2008 through Year Ended October 30, 2006 through
September 30, 2009 December 11, 2008 March 31, 2008 March 31, 2007
Institutional shares (Unaudited) ----------------- -------------- ---------------
- -------------------- ---------
<s> <c> <c> <c> <c>
Per Share Operating Performance:
(for a share outstanding throughout the period)
Net asset value, beginning of period........... $ 1.00 $ 1.00 $ 1.00 $ 1.00
-------- -------- ---------- --------
Income from investment operations:
Net investment income.......................... 0.001 0.012 0.045 0.009
Net realized and unrealized gain (loss) on investments -- (0.000) (0.000) 0.000
-------- -------- ---------- --------
Total from investment operations............... 0.001 0.012 0.045 0.009
Less distributions from:
Dividends from net investment income......... (0.001) (0.012) (0.045) (0.009)
Net realized gains on investments............ -- -- -- --
-------- -------- ---------- --------
Total distributions............................ (0.001) (0.012) (0.045) (0.009)
-------- -------- ---------- --------
Net asset value, end of period................. $ 1.00 $ 1.00 $ 1.00 $ 1.00
======== ======== ========== ========
Total Return................................... 0.13%(a) 1.24%(a) 4.54 % 0.88%(a)
Ratios/Supplemental Data
Net assets, end of period (000's).............. $124,056 $ -0- $ 10 $ 10
Ratios to average net assets:
Expenses (net of fees waived)................ 0.25%(b) 0.25%(b) 0.21% 0.20%(b)
Net investment income........................ 0.28%(b) 1.76%(b) 4.44% 5.10%(b)
Management and administration fees waived.... 0.04%(b) 0.05%(b) 0.09% 0.16%(b)
</table>
<table>
<caption>
Six Months Ended Commencement of Operations
September 30, 2009 Years Ended March 31, March 19, 2007 through
--------------------
Institutional Service shares (Unaudited) 2009 2008 March 31, 2007
- ---------------------------- --------- ---- ---- --------------
<s> <c> <c> <c> <c>
Per Share Operating Performance:
(for a share outstanding throughout the period)
Net asset value, beginning of period........... $ 1.00 $ 1.00 $ 1.00 $ 1.00
-------- -------- -------- --------
Income from investment operations:
Net investment income........................ 0.001 0.012 0.042 0.002
Net realized and unrealized gain(loss) on investments -- (0.000) (0.000) 0.000
-------- -------- -------- --------
Total from investment operations............... 0.001 0.012 0.042 0.002
Less distributions from:
Dividends from net investment income......... (0.001) (0.012) (0.042) (0.002)
Net realized gains on investments............ -- -- -- --
-------- -------- -------- --------
Total distributions............................ (0.001) (0.012) (0.042) (0.002)
-------- -------- -------- --------
Net asset value, end of period................. $ 1.00 $ 1.00 $ 1.00 $ 1.00
======== ======== ======== ========
Total Return................................... 0.08%(a) 1.23% 4.31% 0.17%(a)
Ratios/Supplemental Data
Net assets, end of period (000's).............. $ 373 $ 283 $ 336 $ 10
Ratios to average net assets:
Expenses (net of fees waived)................ 0.48%(b) 0.47% 0.45% 0.45%(b)
Net investment income........................ 0.16%(b) 1.35% 3.82% 4.85%(b)
Management and administration fees waived.... 0.04%(b) 0.05% 0.09% 0.16%(b)
Shareholder servicing fees waived............ 0.02%(b) -- -- --
<fn>
(a)Unannualized
(b)Annualized
</fn>
</table>
The accompanying notes are an integral part of these financial statements.
<page>
- --------------------------------------------------------------------------------
================================================================================
<table>
<caption>
Six Months Ended Commencement of Operations
September 30, 2009 Years Ended March 31, December 12, 2006 through
--------------------
Retail shares (Unaudited) 2009 2008 March 31, 2007
- -------------- --------- ---- ---- --------------
<s> <c> <c> <c> <c>
Per Share Operating Performance:
(for a share outstanding throughout the period)
Net asset value, beginning of period........... $ 1.00 $ 1.00 $ 1.00 $ 1.00
-------- --------- --------- ----------
Income from investment operations:
Net investment income........................ 0.000 0.007 0.037 0.013
Net realized and unrealized gain(loss) on investments -- (0.000) (0.000) 0.000
-------- -------- -------- --------
Total from investment operations............... 0.000 0.007 0.037 0.013
Less distributions from:
Dividends from net investment income......... (0.000) (0.007) (0.037) (0.013)
Net realized gains on investments............ -- -- -- (0.000)
-------- --------- --------- ---------
Total distributions............................ (0.000) (0.007) (0.037) (0.013)
-------- --------- --------- ---------
Net asset value, end of period................. $ 1.00 $ 1.00 $ 1.00 $ 1.00
======== ========= ========= =========
Total Return................................... 0.00%(a) 0.71% 3.73% 1.30%(a)
Ratios/Supplemental Data
Net assets, end of period (000's).............. $187,906 $208,912 $159,269 $ 57,051
Ratios to average net assets:
Expenses (net of fees waived)................ 0.65%(b) 0.99% 1.00% 1.00%(b)
Net investment income........................ 0.00%(b) 0.60% 3.38% 4.29%(b)
Management and administration fees waived.... 0.04%(b) 0.05% 0.09% 0.16%(b)
Shareholder servicing and distribution fees waived 0.53%(b) 0.17% 0.13% 0.10%(b)
Transfer Agency Account fees waived.......... -- -- -- 0.03%(b)
</table>
<table>
<caption>
Six Months Ended Commencement of Operations
September 30, 2009 Years Ended March 31, November 2, 2006 through
--------------------
Advantage shares (Unaudited) 2009 2008 March 31, 2007
- --------------- --------- ---- ---- ---------------
<s> <c> <c> <c> <c>
Per Share Operating Performance:
(for a share outstanding throughout the period)
Net asset value, beginning of period........... $ 1.00 $ 1.00 $ 1.00 $ 1.00
----------- --------- --------- ---------
Income from investment operations:
Net investment income........................ 0.000 0.007 0.036 0.018
Net realized and unrealized gain(loss) on investments -- (0.000) (0.000) 0.000
----------- ---------- --------- ---------
Total from investment operations............... 0.000 0.007 0.036 0.018
Less distributions from:
Dividends from net investment income......... (0.000) (0.007) (0.036) (0.018)
Net realized gains on investments -- -- -- (0.000)
----------- ---------- --------- ---------
Total distributions............................ (0.000) (0.007) (0.036) (0.018)
----------- ---------- --------- ---------
Net asset value, end of period................. $ 1.00 $ 1.00 $ 1.00 $ 1.00
=========== ========== ========= =========
Total Return................................... 0.01%(a) 0.70% 3.71% 1.77%(a)
Ratios/Supplemental Data
Net assets, end of period (000's).............. $1,031,237 $ 970,310 $662,379 $193,827
Ratios to average net assets:
Expenses (net of fees waived)................ 0.62%(b) 0.99% 1.02% 1.02%(b)
Net investment income........................ 0.02%(b) 0.66% 3.37% 4.26%(b)
Management and administration fees waived.... 0.04%(b) 0.05% 0.09% 0.16%(b)
Shareholder servicing and distribution fees waived 0.61%(b) 0.21% 0.16% 0.16%(b)
<fn>
(a)Unannualized
(b)Annualized
</fn>
</table>
The accompanying notes are an integral part of these financial statements.
<page>
[THIS PAGE INTENTIONALLY LEFT BLANK.]
<page>
- --------------------------------------------------------------------------------
DAILY INCOME FUND
MUNICIPAL PORTFOLIO
EXPENSE CHART
FOR THE SIX MONTHS ENDED SEPTEMBER 30, 2009
(UNAUDITED)
================================================================================
As a shareholder of the Portfolio, you incur the following ongoing costs:
management fees and other Portfolio expenses. You may also incur distribution
and/or service (12b-1) fees. This example is intended to help you understand
your ongoing costs (in dollars) of investing in the Portfolio and to compare
these costs with the ongoing costs of investing in other mutual funds.
The example is based on an investment of $1,000 invested at the beginning of
the period and held for the entire period April 1, 2009 through September 30,
2009.
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 Portfolio's actual expense
ratio and an assumed rate of return of 5% per year before expenses, which is not
the Portfolio'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 Portfolio 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.
<table>
<caption>
- ---------------------------------------------------------------------------------------------------------------------------
Institutional Class Shares Beginning Account Ending Account Value Expenses Paid Annualized
("Institutional Shares") Value 04/01/09 09/30/09 During the Period* Expense Ratio*
- ---------------------------------------------------------------------------------------------------------------------------
<s> <c> <c> <c> <c>
Actual $1,000.00 $1,003.00 $1.26 0.25%
- ---------------------------------------------------------------------------------------------------------------------------
Hypothetical (5% return before expenses) $1,000.00 $1,023.82 $1.27 0.25%
- ---------------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------------
Institutional Service Class Shares Beginning Account Ending Account Value Expenses Paid Annualized
("Institutional Service Shares") Value 04/01/09 09/30/09 During the Period* Expense Ratio*
- ---------------------------------------------------------------------------------------------------------------------------
Actual $1,000.00 $1,001.80 $2.51 0.50%
- ---------------------------------------------------------------------------------------------------------------------------
Hypothetical (5% return before expenses) $1,000.00 $1,022.56 $2.54 0.50%
- ---------------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------------
Short Term Income Shares Class Shares Beginning Account Ending Account Value Expenses Paid Annualized
("Short Term Income Shares") Value 04/01/09 09/30/09 During the Period* Expense Ratio*
- ---------------------------------------------------------------------------------------------------------------------------
Actual $1,000.00 $1,000.60 $3.71 0.74%
- ---------------------------------------------------------------------------------------------------------------------------
Hypothetical (5% return before expenses) $1,000.00 $1,021.36 $3.75 0.74%
- ---------------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------------
Retail Class Shares Beginning Account Ending Account Value Expenses Paid Annualized
("Retail Shares") Value 04/01/09 09/30/09 During the Period* Expense Ratio*
- ---------------------------------------------------------------------------------------------------------------------------
Actual $1,000.00 $1,000.40 $3.86 0.77%
- ---------------------------------------------------------------------------------------------------------------------------
Hypothetical (5% return before expenses) $1,000.00 $1,021.21 $3.90 0.77%
- ---------------------------------------------------------------------------------------------------------------------------
</table>
<page>
- --------------------------------------------------------------------------------
DAILY INCOME FUND
MUNICIPAL PORTFOLIO
EXPENSE CHART (CONTINUED)
FOR THE SIX MONTHS ENDED SEPTEMBER 30, 2009
(UNAUDITED)
================================================================================
<table>
<caption>
- ---------------------------------------------------------------------------------------------------------------------------
Advantage Municipal Liquidity Fund Beginning Account Ending Account Value Expenses Paid Annualized
("Advantage Shares") Value 04/01/09 09/30/09 During the Period* Expense Ratio*
- ---------------------------------------------------------------------------------------------------------------------------
<s> <c> <c> <c> <c>
Actual $1,000.00 $1,000.50 $3.76 0.75%
- ---------------------------------------------------------------------------------------------------------------------------
Hypothetical (5% return before expenses) $1,000.00 $1,021.31 $3.80 0.75%
- ---------------------------------------------------------------------------------------------------------------------------
<fn>
* Expenses are equal to the Portfolio's annualized expense ratios multiplied by the average account value over the period (April
1, 2009 through September 30, 2009), multiplied by 183/365 (to reflect the most recent fiscal half-year).
</fn>
</table>
<page>
- --------------------------------------------------------------------------------
DAILY INCOME FUND
MUNICIPAL PORTFOLIO
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2009
(UNAUDITED)
================================================================================
<table>
<caption>
Ratings (a)
------------------
Face Maturity Interest Value Standard
Amount Date Rate (Note 1) Moody's & Poor's
------- ---- ---- ------ ------- ----------
Put Bonds (2) (1.71%)
- ------------------------------------------------------------------------------------------------------------------------------------
<s> <c> <c> <c> <c> <c>
$ 5,000,000 Northside Independent School District, TX
Building Bonds Series 2007A (4)
LOC Texas Permanent School Fund 06/01/10 1.20% $ 5,000,000
2,510,000 Puerto Rico Industrial, Medical & Environmental
Pollution Control Facilities Financing Authority
(Abbott Laboratories Project) - Series 1983A 03/01/10 2.00 2,510,000 P-1 A-1+
- ------------ ------------
7,510,000 Total Put Bonds 7,510,000
- ------------ ------------
Tax Exempt Commercial Paper (6.64%)
- ------------------------------------------------------------------------------------------------------------------------------------
$ 3,700,000 City of San Antonio, TX Water System - Series A 11/10/09 0.35% $ 3,700,000 P-1 A-1+
4,950,000 Harris County, TX - Series C 12/14/09 0.35 4,950,000 P-1 A-1+
2,500,000 Hillsborough County, FL Aviation Authority Airport Facilities - Series B
LOC Landesbank Baden-Wurtemburg 10/08/09 0.55 2,500,000 P-1
8,000,000 New Jersey EDA Exempt Facility RB (Keystone-1992 Project) (3)
LOC BNP Paribas 10/07/09 0.30 8,000,000 VMIG-1 A-1+
5,000,000 Pendleton County, KY Municipal Multi-County Lease RB
(Kentucky Association of Counties Leasing Trust Program)
LOC JPMorgan Chase Bank, N.A. 10/05/09 0.30 5,000,000 P-1 A-1+
5,000,000 University of Michigan, MI 12/02/09 0.30 5,000,000 P-1 A-1+
- ------------ ------------
29,150,000 Total Tax Exempt Commercial Paper 29,150,000
- ------------ ------------
Tax Exempt General Obligation Notes & Bonds (13.24%)
- ------------------------------------------------------------------------------------------------------------------------------------
$ 2,500,000 City School District of the City of Canadaigua, Ontario County,
NY BAN Series 2009 (4) 06/30/10 1.15% $ 2,520,289
2,385,000 Concord Metropolitan District, Douglas County, CO
GO Refunding & Improvement Bonds - Series 2004
LOC Wells Fargo Bank, N.A. 12/01/09 2.00 2,385,000 A-1+
2,000,000 Cooperstown Central School District, Otsego County, NY BAN (4) 06/30/10 1.30 2,010,295
5,800,000 Enlarged City School District of the City of Watertown,
Jefferson County, NY BAN (4) 09/17/10 1.00 5,827,609
1,390,000 Fairfield County Airport Improvement, OH BAN (3) (4) 01/20/10 2.40 1,392,887
1,750,000 Glendale-River Hills School District, WI TRAN (4) 08/17/10 1.14 1,755,458
2,386,482 Guilderland Central School District, AL (4)
GO BAN for Vehicles - 2009 07/22/10 1.10 2,403,590
4,000,000 Kettle Moraine School District, WI TRAN 2009 (4) 02/01/10 1.11 4,011,964
5,700,000 Mattituck - Cutchogue Union Free School District, Suffolk County,
NY TAN, 2009 (4) 06/25/10 1.00 5,730,989
2,400,000 Mequon - Thiensville School District, WI TRAN (4) 09/03/10 1.04 2,410,068
7,200,000 Middleton-Cross Plains Area School District, (4)
Dane County, WI TRAN 09/17/10 0.99 7,234,899
1,500,000 School District of Altoona, WI TRAN (4) 10/30/09 4.00 1,500,114
5,400,000 School District of Grafton, WI TRAN (4) 10/14/09 2.70 5,400,560
1,000,000 School District of Green Lake, WI TRAN (4) 10/02/09 3.00 1,000,007
</table>
The accompanying notes are an integral part of these financial statements.
<page>
- --------------------------------------------------------------------------------
DAILY INCOME FUND
MUNICIPAL PORTFOLIO
SCHEDULE OF INVESTMENTS (CONTINUED)
SEPTEMBER 30, 2009
(UNAUDITED)
================================================================================
<table>
<caption>
Ratings (a)
------------------
Face Maturity Interest Value Standard
Amount Date Rate (Note 1) Moody's & Poor's
------- ---- ---- ------ ------- ----------
Tax Exempt General Obligation Notes & Bonds (continued)
- ------------------------------------------------------------------------------------------------------------------------------------
<s> <c> <c> <c> <c> <c>
$ 3,500,000 School District of Kewaskum, WI TRAN (4) 08/30/10 1.17% $ 3,518,354
1,775,000 School District of New Lisbon, WI TRAN (4) 10/15/09 2.29 1,775,073
3,000,000 School District of Three Lakes, WI TRAN (4) 08/20/10 1.28 3,018,901
700,000 School District of Williams Bay, WI TRAN (4) 08/27/10 1.50 701,865
3,500,000 Waunakee Community School, WI TRAN (4) 10/19/09 4.00 3,500,415
- ------------ ------------
57,886,482 Total Tax Exempt General Obligation Notes & Bonds 58,098,337
- ------------ ------------
Variable Rate Demand Instruments (77.35%) (5)
- ------------------------------------------------------------------------------------------------------------------------------------
$ 1,955,000 Adams County, PA IDA IDRB (Say Plastics, Inc. Project)
- Series 2007A
LOC Wachovia Bank, N.A. 08/01/32 0.69% $ 1,955,000 P-1 A-1+
6,200,000 BB & T Municipal Trust Floater Certificates - Series 5000 DLL
LOC Rabobank Nederland 10/01/28 0.49 6,200,000 VMIG-1
475,000 Beaver County, PA IDA PCRB
(First Energy Generation Corp.) - Series 2006B
LOC Royal Bank of Scotland, N.A. 12/01/41 0.30 475,000 VMIG-1 A-1+
250,000 Brevard County, FL Industrial Development Refunding RB
(Pivotal Utility Holdings, Inc. Project) - Series 2005 (3)
LOC Wells Fargo Bank, N.A. 10/01/24 0.44 250,000 VMIG-1
750,000 Broward County, FL HFA
(Sailboat Bend Artist Lofts Project) - Series 2006 (3)
LOC Citibank, N.A. 04/15/38 0.40 750,000 A-1+
1,860,000 Calcasieu Parish Public Trust Authority Gulf Opportunity Zone RB
(Delta Equine Center LLC Project) - Series 2007 (3) (4)
LOC Branch Banking And Trust Company 01/01/32 0.34 1,860,000
4,155,000 Citigroup Global Markets ROCs Trust II-R Series 11208 Sabine
Neches, TX HFC Single Family Mortgage RB Series 2006 (3)
Guaranteed by Government National Mortgage Association/ Federal National
Mortgage Association/Federal Home Loan Mortgage Corporation 12/01/39 0.44 4,155,000 VMIG-1
2,315,000 Citigroup Global Markets ROCs Trust II-R Series 12288, FL
(Florida Full Faith & Credit Board of Education Public Education Capital
Outlay Bonds - Series 2003B) 06/01/33 0.36 2,315,000 A-1+
500,000 Citigroup Global Markets ROCs Trust II-R Series 402
Connecticut State HFA (Housing Mortgage Finance Program) (3)
2003 - Series E-2 11/15/10 0.44 500,000 VMIG-1
3,720,000 City of Bardstown, KY Industrial Building RB (3) (4)
LOC US Bank, N.A. 10/01/19 0.42 3,720,000
400,000 City of Cohasset, MN RB
(Minnesota Power & Light Company Project) - Series 1997A
LOC LaSalle National Bank, N.A. 06/01/20 0.37 400,000 A-1+
1,500,000 City of Galesburg, IL RB
(Knox College Project) - Series 1999
LOC LaSalle National Bank, N.A. 07/01/24 0.35 1,500,000 A-1+
</table>
The accompanying notes are an integral part of these financial statements.
<page>
- --------------------------------------------------------------------------------
================================================================================
<table>
<caption>
Ratings (a)
------------------
Face Maturity Interest Value Standard
Amount Date Rate (Note 1) Moody's & Poor's
------- ---- ---- ------ ------- ----------
Variable Rate Demand Instruments (5) (continued)
- ------------------------------------------------------------------------------------------------------------------------------------
<s> <c> <c> <c> <c> <c>
$ 5,135,000 City of Milwaukee, WI IDRB
(Midwest Express Airlines, Inc. Project) - Series 1998 (3) (4)
LOC US Bank, N.A. 08/01/30 0.81% $ 5,135,000
6,875,000 City of New York GO Fiscal 1995 F-3
LOC JPMorgan Chase Bank, N.A. 02/15/13 0.32 6,875,000 VMIG-1 A-1+
3,000,000 City of Stockton, CA
(Dameron Hospital Association) - Series 2002
LOC Citibank, N.A. 12/01/32 0.35 3,000,000 VMIG-1
2,400,000 City of Valdez, AK Marine Terminal Revenue Refunding Bonds
(BP Pipelines (Alaska) Inc. Project) - Series 2001
LOC BP Amoco PLC 07/01/37 0.24 2,400,000 VMIG-1 A-1+
650,000 City of Valdez, AK Marine Terminal Revenue Refunding Bonds
(BP Pipelines (Alaska) Inc. Project) - Series 2003C
LOC BP Amoco PLC 07/01/37 0.28 650,000 VMIG-1 A-1+
3,690,000 Colorado HFA Multifamily Housing RRB
(Coventry Village Project) - 1996 Series B
Collaterized by Federal National Mortgage Association 10/15/16 0.25 3,690,000 A-1+
2,375,000 Colorado HFA Multifamily Housing RRB
(Diamondhead Project) - 1996 Series I
Collaterized by Federal National Mortgage Association 10/15/16 0.25 2,375,000 A-1+
3,000,000 Colorado HFA Solid Waste Disposal RB
(Waste Management, Inc. Project) - Series 2003 (3)
LOC Wachovia Bank, N.A. 08/01/38 0.45 3,000,000 A-1+
4,640,000 Community Development Authority of the
City of South Milwaukee, WI MHRB
(Marquette Manor, LLC Project) Series - 2001 (3) (4)
LOC PNC Bank, N.A 01/01/31 1.08 4,640,000
5,260,000 Community Development Authority of the Village of
Brown Deer, WI MHRB
(Brown Deer Senior Housing, LLC Project) - Series 1999 (3) (4)
LOC PNC Bank, N.A 10/01/34 1.08 5,260,000
2,000,000 Connecticut Development Authority RB
(Pierce Memorial Baptist Home, Inc. Project -1999 Refunding Series)
LOC LaSalle National Bank, N.A. 10/01/28 0.22 2,000,000 A-1+
700,000 Connecticut State Development Authority Solid Waste Disposal
Facilities RB (Rand - Whitney Containerboard Limited)
(Partnership Project) - Series 1993 (3)
LOC Bank of Montreal 08/01/23 0.30 700,000 VMIG-1 A-1+
2,500,000 Connecticut State HEFA RB (The Hotchkiss School) - Series A 07/01/30 0.40 2,500,000 VMIG-1 A-1+
1,645,000 County of Prince William, VA IDA IDRB
(Mediatech, Inc. Project) - Series 2007 (3)
LOC Branch Banking And Trust Company 11/01/32 0.44 1,645,000 VMIG-1
6,000,000 County of Warren, OH Health Care Facilities Improvement RB
(Otterbein Homes Projects) - Series 1998B
LOC U.S. Bank, N.A. 07/01/23 0.32 6,000,000 A-1+
</table>
The accompanying notes are an integral part of these financial statements.
<page>
- --------------------------------------------------------------------------------
DAILY INCOME FUND
MUNICIPAL PORTFOLIO
SCHEDULE OF INVESTMENTS (CONTINUED)
SEPTEMBER 30, 2009
(UNAUDITED)
================================================================================
<table>
<caption>
Ratings (a)
------------------
Face Maturity Interest Value Standard
Amount Date Rate (Note 1) Moody's & Poor's
------- ---- ---- ------ ------- ----------
Variable Rate Demand Instruments (5) (continued)
- ------------------------------------------------------------------------------------------------------------------------------------
<s> <c> <c> <c> <c> <c>
$ 5,000,000 Deutsche Bank SPEARs/LIFERs Trust, Series DBE-150 Relating
to the IDA of the City of Chandler, AZ IDRB, Series 2007
(Intel Corporation Project) (3) (4)
LOC Deutsche Bank, A.G. 12/01/37 0.38% $ 5,000,000
1,900,000 Development Authority of Carroll County, GA RB
(Royal Metal Products, Inc Project) - Series 2007 (3)
LOC Branch Bank & Trust Company 01/01/27 0.44 1,900,000 VMIG-1
11,030,000 Development Authority of Columbus, GA MHRB
(Avalon Apartments Projects) - Series 2008 (3)
Guaranteed by Federal National Mortgage Association 10/15/40 0.49 11,030,000 A-1+
3,600,000 Douglas County, NE IDRB
(Phillips Manufacturing Project) - Series 2002 (3)
LOC Wells Fargo Bank, N.A. 12/01/18 0.50 3,600,000 A-1+
1,380,000 Dutchess County, NY Industrial Development Agency
(Marist College Civic Facility) - Series 1998A
LOC JPMorgan Chase Bank, N.A. 07/01/28 0.25 1,380,000 A-1+
2,100,000 Duval County HFA Mutlifamily Housing Mortgage RB
(Camri Green Apartments) - Series 2003 (3)
Guaranteed by Federal National Mortgage Association 11/15/36 0.45 2,100,000 A-1+
9,970,000 Federal Home Loan Mortgage Corporation Class A
Multi-family Certificates, Series M015 (3)
Guaranteed by Federal Home Loan Mortgage Corporation 05/15/46 0.45 9,970,000 A-1+
1,750,000 Florida HFA MHRB
(Springs Colony Project) - Series 1985 FF
Collaterized by Federal National Mortgage Association 09/15/26 0.25 1,750,000 A-1+
1,000,000 Fulton County, KY Industrial Building RB
(The Burke-Parsons-Bowlby Corporation Project) - Series 2006 (3)
LOC Branch Banking And Trust Company 07/01/26 0.54 1,000,000 P-1 A-1+
3,020,000 Gulf Coast IDA Marine Terminal RB (3)
(Amoco Oil Company Project) - Series 1993 04/01/28 0.33 3,020,000 VMIG-1 A-1+
7,400,000 Housing Authority of Cobb County, GA MHRB
(Highland Ridge Apartments Project) - Series 2008
Guaranteed by Federal Home Loan Mortgage Corporation 07/01/41 0.37 7,400,000 A-1+
900,000 Hurley, NM PCRB
(Kennecott, Santa Fe)
LOC BP Amoco PLC 12/01/15 0.28 900,000 P-1 A-1+
3,000,000 Illinois Development Finance Authority MHRB
(Butterfield Creek Associates Project) - Series 1999 (3)
LOC LaSalle National Bank, N.A. 04/01/39 0.80 3,000,000 A-1
1,950,000 Illinois Finance Authority RB
(Riverside Health System) - Series 2004
LOC JPMorgan Chase Bank, N.A. 11/15/29 0.30 1,950,000 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 0.35 3,700,000 A-1+
</table>
The accompanying notes are an integral part of these financial statements.
<page>
- --------------------------------------------------------------------------------
================================================================================
<table>
<caption>
Ratings (a)
------------------
Face Maturity Interest Value Standard
Amount Date Rate (Note 1) Moody's & Poor's
------- ---- ---- ------ ------- ----------
Variable Rate Demand Instruments (5) (continued)
- ------------------------------------------------------------------------------------------------------------------------------------
<s> <c> <c> <c> <c> <c>
$ 2,700,000 Iredell County, NC Industrial Facilities and PCFA
(Riley Technologies Project) - Series 2006 (3) (4)
LOC Branch Banking And Trust Company 11/01/31 0.54% $ 2,700,000
1,260,000 Jeffersontown, KY (Kentucky League of Cities
Funding Trust Lease Program RB) - Series 2000
LOC US Bank, N.A. 03/01/30 0.31 1,260,000 VMIG-1
4,725,000 JPMorgan Securities, Inc. Puttable Tax-Exempt Receipts Series 2054
(Relating to the City of Chicago MHRB
(Drexel Preservation Project))- Series 2007 (3)
Guaranteed by Federal Housing Authority/Government National
Mortgage Association 12/20/39 0.65 4,725,000 VMIG-1
1,700,000 King George County, VA IDA
(Birchwood Power Partners, L.P. Project) - -Series 1995 (3)
LOC Bank of Nova Scotia 11/01/25 0.38 1,700,000 A-1+
2,400,000 La Porte County, IN EDRB (Universal Forest Products Indiana
Limited Partnership Project) - Series 2000 (3)
LOC Bank of America, N.A. 11/01/20 0.69 2,400,000 P-1 A-1+
600,000 Loudoun County, VA IDA RB
(Howard Hughes Medical Institute Issue) - Series 2003C 02/15/38 0.21 600,000 VMIG-1 A-1+
406,000 Marion County, FL IDA MHRB
(Chambrel at Pinecastle Project) - Series 2002 (3)
Guaranteed by Federal National Mortgage Association 11/15/32 0.37 406,000 A-1+
500,000 Metropolitan Transportation Authority, Transportation Revenue
Variable Rate Bonds, Series 2005G-2
LOC BNP Paribas 11/01/26 0.33 500,000 VMIG-1 A-1+
3,680,000 Miami-Dade County IDA IDRB
(Airbus Service Company, Inc. Project) - Series 1998A (3)
LOC Calyon 04/01/30 0.48 3,680,000 A-1+
4,785,000 Michigan Strategic Fund Limited Obligation RB
(Halsbeck Pickle Company Project) - Series 2007
LOC Federal Home Loan Bank 03/01/37 0.40 4,785,000 VMIG-1
480,000 Mississippi Home Corporation Single Family Mortgage RB
Wachovia Merlots Trust Series 2000YYY (3)
Guaranteed by Government National Mortgage Association 12/01/31 1.03 480,000 VMIG-1
1,200,000 M-S-R Public Power Agency, CA
(San Juan Project Subordinate Lien RB) - Series 2008M
LOC Dexia CLF 07/01/22 0.27 1,200,000 A-1
3,450,000 Nevada Housing Division MHRB (Golden Apartment) - Series 2007 (3)
LOC Federal Home Loan Mortgage Corporation 10/01/37 0.80 3,450,000 A-1+
5,545,000 Nevada Housing Division Multi-Unit Housing RB
(Help Owens 2 Apartments) - Series 2007 (3)
LOC Citibank, N.A. 10/01/42 0.60 5,545,000 A-1+
2,075,000 Nevada Housing Division Multi-Unit Housing RB
(Maryland Villas Project) - Series 1997A (3)
LOC Federal Home Loan Bank 10/01/30 0.65 2,075,000 A-1+
</table>
The accompanying notes are an integral part of these financial statements.
<page>
- --------------------------------------------------------------------------------
DAILY INCOME FUND
MUNICIPAL PORTFOLIO
SCHEDULE OF INVESTMENTS (CONTINUED)
SEPTEMBER 30, 2009
(UNAUDITED)
================================================================================
<table>
<caption>
Ratings (a)
------------------
Face Maturity Interest Value Standard
Amount Date Rate (Note 1) Moody's & Poor's
------- ---- ---- ------ ------- ----------
Variable Rate Demand Instruments (5) (continued)
- ------------------------------------------------------------------------------------------------------------------------------------
<s> <c> <c> <c> <c> <c>
$ 7,500,000 New Jersey EDA Gas Facities Refunding RB (3)
(Pivotal Utility Holdings, Inc. Project) - Series 2007
LOC Wells Fargo Bank, N.A. 06/01/32 0.23% $ 7,500,000 VMIG-1
4,500,000 New Jersey EDA Pollution Control Revenue Refunding Bonds
(Exxon Projects) Series - 1989 04/01/22 0.13 4,500,000 P-1 A-1+
100,000 New Jersey EDA RB (Applewood Estates Project) - Series 2005B
LOC TD Banknorth, N.A. 10/01/35 0.35 100,000 VMIG-1 A-1+
3,600,000 New Jersey EDA RB
(Stolthaven Perth Amboy Inc. Project) - Series 1998A
LOC Citibank, N.A. 01/15/18 0.24 3,600,000 P-1 A-1+
3,350,000 New Jersey EDA School Facilities Construction Bonds
2006 Series R - Sub-Series - R1
LOC Lloyds TSB Bank/ Bank of Nova Scotia 09/01/31 0.33 3,350,000 VMIG-1 A-1+
1,000,000 New Jersey Health Care Facilites Financing Authority RB
(AHS Hospital Corp. Issue) - Series 2008B
LOC Bank of America, N.A. 07/01/36 0.30 1,000,000 VMIG-1 A-1+
4,050,000 New Jersey Health Care Facilites Financing Authority RB
(Meridian Health System Obligated Group Issue) - Series 2003B
LOC JPMorgan Chase, N.A. 07/01/33 0.30 4,050,000 VMIG-1 A-1+
700,000 New Jersey Health Care Facilites Financing Authority RB
(Saint Barnabas Health Care System Issue) - Series 2001A
LOC JPMorgan Chase Bank, N.A. 07/01/31 0.24 700,000 VMIG-1 A-1+
3,500,000 New York City HDC Mulit-Family Rental Housing RB
(100 Jane Street Development) - Series A (3)
Guaranteed by Federal National Mortgage Association 09/15/28 0.30 3,500,000 A-1+
3,000,000 New York Housing Finance Agency RB
(20 River Terrace Housing) - Series A
LOC Federal National Mortgage Association 05/15/34 0.23 3,000,000 VMIG-1
12,000,000 New York Local Government Assistance Corporation
(A Public Benefit Corporation of the State of New York)
- Series 1995B
LOC Bank of Nova Scotia 04/01/25 0.30 12,000,000 VMIG-1 A-1+
3,100,000 New York Local Government Assistance Corporation
(A Public Benefit Corporation of the State of New York)
- Series 1995D
LOC Societe Generale 04/01/25 0.23 3,100,000 VMIG-1 A-1+
4,000,000 New York Local Government Assistance Corporation
(A Public Benefit Corporation of the State of New York) - Series G
LOC Bank of Nova Scotia 04/01/25 0.24 4,000,000 VMIG-1 A-1
400,000 New York State Energy Research and Development Authority
Facilities RB (Consolidated Edison Company of New York, Inc.
Project) - Subseries 2004C-3 (3)
LOC Citibank, N.A. 11/01/39 0.34 400,000 VMIG-1 A-1+
4,600,000 Ohio Water Development Authority, State of Ohio PCRB
(FirstEnergy Nuclear Generation Corp. Project) - Series 2008A (3)
LOC Bank of Nova Scotia 11/01/33 0.40 4,600,000 A-1+
</table>
The accompanying notes are an integral part of these financial statements.
<page>
- --------------------------------------------------------------------------------
================================================================================
<table>
<caption>
Ratings (a)
------------------
Face Maturity Interest Value Standard
Amount Date Rate (Note 1) Moody's & Poor's
------- ---- ---- ------ ------- ----------
Variable Rate Demand Instruments (5) (continued)
- ------------------------------------------------------------------------------------------------------------------------------------
<s> <c> <c> <c> <c> <c>
$ 100,000 Orange County, FL Educational Facilties Authority RB
(Rollins College Project) - Series 2001
LOC Bank of America, N.A. 05/01/31 0.30% $ 100,000 VMIG-1
1,000,000 Orange County, FL HFA MHRB
(Post Fountains at Lee Vista Project) - Series 1997E
Collateralized by Federal National Mortgage Association 06/01/25 0.30 1,000,000 A-1+
1,200,000 Orange County, FL HFA MHRB
(Windsor Pines Project) - Series 2000E (3)
LOC Bank of America, N.A. 03/01/35 0.40 1,200,000 VMIG-1
500,000 Parish of Plaquemines, LA Environmental RB
(BP Exploration & Oil Inc. Project - The British Petroleum Company
p.l.c, Guarantor) - Series 1994 (3)
LOC BP Amoco PLC 10/01/24 0.33 500,000 P-1 A-1+
2,400,000 Pennsylvania EDFA EDRB 2005 Series B-2
(Joseph R & Nancy L DelSignore Project) (3)
LOC PNC Bank, N.A. 08/01/30 0.46 2,400,000 P-1 A-1+
1,200,000 Pennsylvania EDFA EDRB 2005 Series B-3
(North America Communications, Inc. Project) (3)
LOC PNC Bank, N.A. 08/01/12 0.46 1,200,000 P-1 A-1+
2,000,000 Pennsylvania EDFA (National Railroad Passenger Corporation
Amtrak Project) - Series B of 2001 (3)
LOC JPMorgan Chase Bank, N.A. 11/01/41 0.45 2,000,000 VMIG-1 A-1+
100,000 Philadelphia Authority for IDRB
(Girard Estate Aramark Tower Acquisition Project) - Series 2002
LOC JPMorgan Chase Bank, N.A. 06/01/32 0.40 100,000 A-1+
2,500,000 Port Authority of New York and New Jersey Versatile
Structure Obligation - Series 3 06/01/20 0.32 2,500,000 VMIG-1 A-1+
1,975,000 Port Bellingham, WA IDC Environmental Facilities Industrial RB
(BP West Coast Products LLC Project) - Series 2003 (3) 03/01/38 0.33 1,975,000 VMIG-1 A-1+
875,000 Redevelopment Authority of the City of Milwaukee, WI RB
(Palmolive Building Project) - Series A (3) (4)
LOC PNC Bank, N.A 12/01/16 1.08 875,000
3,500,000 Riesel, TX IDC Solid Waste Disposal RB
(Sandy Creek Energy Associates, LP Project) - Series 2007 (3)
LOC Credit Suisse 10/01/42 0.41 3,500,000 A-1+
1,600,000 Rockingham County, NC Industrial Facilites and PCFA IDRB
(Eden Custom Processing, LLC Project) Series 2004 (3) (4)
LOC Branch Banking And Trust Company 01/01/17 0.44 1,600,000
1,650,000 Rockingham County , NC Industrial Facilites and PCFA IDRB
(Whiteridge Plastics, LLC Project) - Series 2003 (3) (4)
LOC Branch Banking And Trust Company 03/01/15 0.44 1,650,000
700,000 Sampson County, NC Industrial Facilities and PCFA IRB
(DuBose Strapping, Inc. Project) Series 2001 (3) (4)
LOC JPMorgan Chase Bank, N.A. 01/01/12 0.44 700,000
</table>
The accompanying notes are an integral part of these financial statements.
<page>
- --------------------------------------------------------------------------------
DAILY INCOME FUND
MUNICIPAL PORTFOLIO
SCHEDULE OF INVESTMENTS (CONTINUED)
SEPTEMBER 30, 2009
(UNAUDITED)
================================================================================
<table>
<caption>
Ratings (a)
------------------
Face Maturity Interest Value Standard
Amount Date Rate (Note 1) Moody's & Poor's
------- ---- ---- ------ ------- ----------
Variable Rate Demand Instruments (5) (continued)
- ------------------------------------------------------------------------------------------------------------------------------------
<s> <c> <c> <c> <c> <c>
$ 1,600,000 Sampson County, NC Industrial Facilities and PCFA IRB
(DuBose Strapping, Inc. Project) Series 2003 (3) (4)
LOC JPMorgan Chase Bank, N.A. 01/01/14 0.44% $ 1,600,000
3,665,000 South Carolina Jobs EDA EDRB
(DCS Diversified Coating Systems, Inc Project) - Series 2002 (3)
LOC Branch Banking And Trust Company 04/01/17 0.44 3,665,000 VMIG-1
9,000,000 State of California Department of Water Resources
Power Supply RB - Series 2002B-2
LOC Bayerishce Landesbank/ Westeutsche Landesbank 05/01/22 0.28 9,000,000 VMIG-1 A-1+
3,070,000 State of Connecticut HEFA
(Dandbury Hospital Issue) - Series J
LOC Wachovia Bank, N.A. 07/01/36 0.31 3,070,000 A-1+
1,900,000 State of Connecticut HEFA RB
(Gaylord Hospital Issue) - Series B
LOC Bank of America, N.A. 07/01/37 0.32 1,900,000 A-1+
300,000 State of Connecticut HEFA RB
(Greater Hartford YMCA Issue) - Series B
LOC Bank of America, N.A. 07/01/38 0.25 300,000 VMIG-1
600,000 State of Connecticut HEFA RB
(Hospital of Saint Raphael Issue) - Series M
LOC KBC Bank, N.A. 07/01/24 0.33 600,000 VMIG-1 A-1
1,700,000 State of Connecticut HEFA RB
(Klingberg Family Centers Issue) - Series A
LOC Allied Irish Bank 07/01/32 0.32 1,700,000 A-1
1,875,000 State of Connecticut HEFA RB
(Mansfield Center for Nursing and Rehabilitation Issue) - Series B
LOC Bank of America, N.A. 07/01/22 0.32 1,875,000 A-1+
1,805,000 State of Connecticut HEFA RB
(Mulberry Gardens Issue) - Series E
LOC Bank of America, N.A 07/01/36 0.32 1,805,000 A-1+.
3,000,000 State of Connecticut HEFA RB
(Yale-New Haven Hospital Issue) - Series K-1
LOC JPMorgan Chase Bank, N.A. 07/01/25 0.30 3,000,000 VMIG-1 A-1+
8,400,000 State of Connecticut HEFA RB
(Yale-New Haven Hospital Issue) - Series K-2
LOC JPMorgan Chase Bank, N.A. 07/01/25 0.23 8,400,000 VMIG-1 A-1+
2,000,000 State of Connecticut HEFA RB
(Yale-New Haven Hospital Issue) - Series L-1
LOC Bank of America, N.A. 07/01/36 0.30 2,000,000 VMIG-1 A-1+
2,000,000 State of Connecticut HEFA RB
(Yale University Issue) - Series U-1 07/01/33 0.25 2,000,000 VMIG-1 A-1+
5,500,000 State of Connecticut HEFA RB
(Yale University Issue) - Series U-1& U-2 07/01/33 0.23 5,500,000 VMIG-1 A-1+
2,000,000 State of Connecticut HEFA RB
(Yale University Issue) - Series V-1 07/01/36 0.23 2,000,000 VMIG-1 A-1+
</table>
The accompanying notes are an integral part of these financial statements.
<page>
- --------------------------------------------------------------------------------
================================================================================
<table>
<caption>
Ratings (a)
------------------
Face Maturity Interest Value Standard
Amount Date Rate (Note 1) Moody's & Poor's
------- ---- ---- ------ ------- ----------
Variable Rate Demand Instruments (5) (continued)
- ------------------------------------------------------------------------------------------------------------------------------------
<s> <c> <c> <c> <c> <c>
$ 800,000 Suffolk, VA Redevelopment and Housing Authority MHRB
(Oak Springs Apartments, LLC Project) - Series 1999
Guaranteed by Federal Home Loan Mortgage Corporation 12/01/19 0.36% $ 800,000 VMIG-1
1,000,000 The City of New York Fiscal 2004 Series A-3
LOC BNP Paribas 08/01/31 0.23 1,000,000 VMIG-1 A-1+
300,000 The City of New York Fiscal 2004 Series H-7
LOC KBC Bank, N.A. 03/01/34 0.28 300,000 VMIG-1 A-1
8,640,000 The Economic Development Corporation of the City of Lapeer
Development RB,
(H & H Tool, Inc. Project) - Series 2007
Guaranteed by Federal Home Loan Bank 01/01/37 0.40 8,640,000 VMIG-1
6,900,000 The Industrial Development Board of the City of Mobile, AL RB
(Alabama Power Company Barry Plant Project) Series 2001-B (3) 09/01/31 0.36 6,900,000 VMIG-1
4,950,000 The Industrial Development Board of the City of Montgomery Pollution
Control and Solid Waste Disposal Revenue Refunding Bonds
(General Electric Company Project) - Series 2005
LOC General Electric Company 05/01/21 0.27 4,950,000 VMIG-1 A-1+
4,800,000 University of North Carolina at Chapel Hill Foundation, Inc.
COPs - Series 1989
LOC Bank of America, N.A. 10/01/09 0.29 4,800,000 VMIG-1
265,000 University of North Carolina at Chapel Hill RB - Series 2001 B 12/01/25 0.23 265,000 VMIG-1 A-1+
1,280,000 Upper Illinois River Valley Development Authority IDRB
(Advanced Flexible Composites, Inc. Project) Series 2003-A(3) (4)
LOC LaSalle National Bank, N.A. 06/01/25 0.47 1,280,000
4,055,000 Upper Illinois River Valley Development Authority IDRB
(Georgi Holdings, LLC Project) Series 2002(3) (4)
LOC U.S. Bank, N.A. 12/01/37 0.81 4,055,000
2,000,000 Volusia County, FL IDA IDRB (Intellitech Project) - Series 2007A (3)
LOC LaSalle National Bank, N.A. 10/01/37 0.60 2,000,000 A-1
2,800,000 Washington State HFC MHRB -
(The Seasons Apartment Project) Series 2006 (3)
Collateralized by Federal National Mortgage Association 12/15/40 0.45 2,800,000 VMIG-1
645,000 Washington State HFC Single-Family Program Bonds 2006 Series 2A (3)
Guaranteed by Government National Mortgage Association/
Federal National Mortgage Association/
Federal Home Loan Mortgage Corporation 12/01/09 0.65 645,000 VMIG-1
1,900,000 West Des Moines, IA RB
(Woodgrain Millwork, Inc. Project) - Series 1995 (3)
LOC Wells Fargo Bank, N.A. 04/01/10 0.55 1,900,000 P-1 A-1+
5,000,000 West Virginia EDA Solid Waste Disposal Facilites RB (Appalachian
Power Company - Mountaineer Project) - Series 2008B (3)
LOC JPMorgan Chase Bank, N.A. 02/01/36 0.48 5,000,000 VMIG-1 A-1+
700,000 Will County, IL Exempt Facility IRB (3)
(BP Amoco Chemical Company Project) - Series 2002 07/01/32 0.33 700,000 VMIG-1 A-1+
</table>
The accompanying notes are an integral part of these financial statements.
<page>
- --------------------------------------------------------------------------------
DAILY INCOME FUND
MUNICIPAL PORTFOLIO
SCHEDULE OF INVESTMENTS (CONTINUED)
SEPTEMBER 30, 2009
(UNAUDITED)
================================================================================
<table>
<caption>
Ratings (a)
------------------
Face Maturity Interest Value Standard
Amount Date Rate (Note 1) Moody's & Poor's
------- ---- ---- ------ ------- ----------
Variable Rate Demand Instruments (5) (continued)
- ------------------------------------------------------------------------------------------------------------------------------------
<s> <c> <c> <c> <c> <c>
$ 1,200,000 Wisconsin HEFA RB (Indian Community
School of Milwaukee, Inc. Project) - Series 2006
LOC JPMorgan Chase Bank, N.A. 12/01/36 0.37% $ 1,200,000 VMIG-1
- ------------ ------------
339,506,000 Total Variable Rate Demand Instruments 339,506,000
- ------------ ------------
Variable Rate Demand Instruments - Private Placements (1.90%) (5)
- ------------------------------------------------------------------------------------------------------------------------------------
$ 2,634,000 Anaheim, CA MHRB
(West Anaheim Royale Project) - Series 1985C
LOC Union Bank of California 12/01/15 1.95% $ 2,634,000 P-1 A-1
1,799,000 Anaheim, CA (West Anaheim Convalescent Home)
LOC Union Bank of California 12/01/15 1.95 1,799,000 P-1 A-1
2,613,000 Culver City, CA RDRB (Culver City Royale Project) - Series 1985
LOC Union Bank of California 12/01/15 1.95 2,613,000 P-1 A-1
1,279,200 West Jordan, UT IDRB
(The Lynn Partnership Nursing Home Project) - Series 1985
LOC Bank of America, N.A. 07/01/15 2.13 1,279,200 P-1 A-1+
- ------------ ------------
8,325,200 Variable Rate Demand Instruments - Private Placements 8,325,200
- ------------ ------------
Total Investments (100.84%) (Cost $442,589,537+) 442,589,537
Liabilities in excess of cash and other assets (-0.84%) (3,673,997)
------------
Net Assets (100.00%) $438,915,540
============
<fn>
+ Aggregate cost for federal income tax purposes is identical. All securities
are valued at amortized cost and as a result, there is no unrealized
appreciation and depreciation.
</fn>
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 maturity date indicated for the put bonds is the next put date.
3) Security subject to alternative minimum tax.
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.
</table>
The accompanying notes are an integral part of these financial statements.
<page>
- --------------------------------------------------------------------------------
================================================================================
<table>
<caption>
KEY:
<s> <c> <c> <c> <c> <c>
BAN = Bond Anticipation Note IRB = Industrial Revenue Bond
COPs = Certificates of Participation LIFERs = Long Inverse Floating Exempt Receipts
EDA = Economic Development Authority LOC = Letter of Credit
EDFA = Economic Development Finance Authority MHRB = Multi-Family Housing Revenue Bond
EDRB = Economic Development Revenue Bond PCFA = Pollution Control Finance Authority
GO = General Obligation PCRB = Pollution Control Revenue Bond
HDC = Housing Development Corporation RDRB = Residential Development Revenue Bond
HEFA = Health and Education Facilities Authority RB = Revenue Bond
HFA = Housing Finance Authority ROCs = Reset Option Certificates
HFC = Housing Finance Commission RRB = Resource Recover Bond
IDA = Industrial Development Authority SPEARs = Short Puttable Exempt Receipts
IDC = Industrial Development Corporation TAN = Tax Anticipation Note
IDRB = Industrial Development Revenue Bond TRAN = Tax and Revenue Anticipation Note
</table>
<table>
<caption>
BREAKDOWN OF PORTFOLIO HOLDINGS BY MATURITY (unaudited):
- ------------------------------- --------------------------- ----------------------------
Securities Maturing in Value % of Portfolio
- ------------------------------- --------------------------- ----------------------------
<c> <c>
Less than 30 Days $376,507,369 85.07%
31 through 60 Days 3,700,000 0.84
61 through 90 Days 12,335,000 2.79
91 through 120 Days 1,392,886 0.31
121 through 180 Days 6,521,964 1.47
Over 180 Days 42,132,318 9.52
- ------------------------------- --------------------------- ----------------------------
Total $442,589,537 100.00%
- ------------------------------- --------------------------- ----------------------------
</table>
The accompanying notes are an integral part of these financial statements.
<page>
- --------------------------------------------------------------------------------
DAILY INCOME FUND
MUNICIPAL PORTFOLIO
BREAKDOWN OF PORTFOLIO HOLDINGS BY STATE
SEPTEMBER 30, 2009
(UNAUDITED)
================================================================================
<table>
<caption>
- ------------------------- ----------------------------- ----------------------------
States Value % of Portfolio
- ------------------------- ----------------------------- ----------------------------
<s> <c> <c>
Alabama $ 11,850,000 2.68%
Alaska 3,050,000 0.69
Arizona 5,000,000 1.13
California 20,246,000 4.57
Colorado 11,450,000 2.59
Connecticut 39,850,000 9.00
Florida 18,051,000 4.08
Georgia 20,330,000 4.59
Illinois 17,210,000 3.89
Indiana 2,400,000 0.54
Iowa 5,600,000 1.27
Kentucky 10,980,000 2.48
Louisiana 2,360,000 0.53
Michigan 18,425,000 4.16
Minnesota 400,000 0.09
Mississippi 480,000 0.11
Nebraska 3,600,000 0.81
Nevada 11,070,000 2.50
New Jersey 35,300,000 7.98
New Mexico 900,000 0.20
New York 54,547,772 12.33
North Carolina 13,315,000 3.01
Ohio 11,992,887 2.71
Pennsylvania 8,130,000 1.84
Puerto Rico 2,510,000 0.57
South Carolina 3,665,000 0.83
Texas 24,325,000 5.50
Utah 1,279,200 0.29
Virginia 4,745,000 1.07
Washington 5,420,000 1.22
West Virginia 5,000,000 1.13
Wisconsin 52,937,678 11.96
Other Territories 16,170,000 3.65
- ------------------------- ----------------------------- ----------------------------
Total $ 442,589,537 100.00%
- ------------------------- ----------------------------- ----------------------------
</table>
The accompanying notes are an integral part of these financial statements.
<page>
- --------------------------------------------------------------------------------
DAILY INCOME FUND
MUNICIPAL PORTFOLIO
STATEMENT OF ASSETS AND LIABILITIES
SEPTEMBER 30, 2009
(UNAUDITED)
================================================================================
<table>
<caption>
ASSETS
<s> <c>
Investments in securities, at amortized cost (Note 1)............................. $ 442,589,537
Accrued interest receivable....................................................... 694,496
Prepaid expenses.................................................................. 187,206
-----------------
Total assets............................................................... 443,471,239
-----------------
LIABILITIES
Payable to affiliates (Note 2).................................................... 37,333
Due to custodian.................................................................. 4,423,518
Accrued expenses.................................................................. 90,125
Dividends payable................................................................. 4,723
-----------------
Total liabilities.......................................................... 4,555,699
-----------------
Net assets........................................................................ $ 438,915,540
=================
SOURCE OF NET ASSETS
Net capital paid in on shares of capital stock (Note 5)........................... $ 438,915,125
Accumulated net realized gains.................................................... 415
-----------------
Net assets........................................................................ 438,915,540
=================
</table>
<table>
<caption>
Net asset value, per share (Note 5):
Class Name Net Assets Shares Outstanding Net Asset Value
<s> <c> <c> <c>
Institutional Shares........................ $4,237,464 4,239,575 $1.00
Institutional Service Shares................ $387,293 387,486 $1.00
Short Term Income Shares.................... $50,971,619 50,997,015 $1.00
Retail Shares............................... $166,884,487 166,967,633 $1.00
Advantage Shares............................ $216,434,677 216,542,510 $1.00
</table>
The accompanying notes are an integral part of these financial statements.
<page>
- --------------------------------------------------------------------------------
DAILY INCOME FUND
MUNICIPAL PORTFOLIO
STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED SEPTEMBER 30, 2009
(UNAUDITED)
================================================================================
<table>
<caption>
INVESTMENT INCOME
<s> <c>
Income:
Interest........................................................................ $ 1,746,002
------------------
Expenses: (Note 2)
Investment management fee....................................................... 259,954
Administration fee.............................................................. 108,314
Shareholder servicing fee (Institutional Service Shares)........................ 404
Shareholder servicing fee (Short Term Income Shares)............................ 70,955
Shareholder servicing fee (Retail Shares)....................................... 213,157
Shareholder servicing fee (Advantage Shares).................................... 251,830
Distribution fee (Short Term Income Shares)..................................... 127,719
Distribution fee (Retail Shares)................................................ 554,208
Distribution fee (Advantage Shares)............................................. 755,491
Custodian expenses.............................................................. 14,636
Shareholder servicing and related shareholder expenses+......................... 101,533
Legal, compliance and filing fees............................................... 129,220
Audit and accounting............................................................ 81,699
Trustees' fees and expenses..................................................... 18,350
Other........................................................................... 82,140
------------------
Total expenses.................................................................. 2,769,610
Less: Fees waived (Note 2)................................................ (1,143,197)
------------------
Net expenses.................................................................... 1,626,413
------------------
Net investment income........................................................... 119,589
REALIZED GAIN (LOSS) ON INVESTMENTS
Net realized gain (loss) on investments............................................. 415
------------------
Increase in net assets from operations.............................................. $ 120,004
==================
<fn>
+ Includes class specific transfer agency expenses of $418, $33, $14,194, and
$44,389 for the Institutional, Institutional Service, Short Term Income,
and Retail Shares, respectively.
</fn>
</table>
The accompanying notes are an integral part of these financial statements.
<page>
- --------------------------------------------------------------------------------
DAILY INCOME FUND
MUNICIPAL PORTFOLIO
STATEMENTS OF CHANGES IN NET ASSETS
(UNAUDITED)
================================================================================
<table>
<caption>
Six Months Ended Year
September 30, 2009 Ended
(Unaudited) March 31, 2009
--------- --------------
<s> <c> <c>
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income......................................... $ 119,589 $ 5,257,415
Net realized gain on investments.............................. 415 26,580
--------------- ----------------
Increase in net assets from operations............................ 120,004 5,283,995
Dividends to shareholders from net investment income *:
Institutional Shares.......................................... (12,458) (76,735)
Institutional Service Shares.................................. (498) (3,430)
Short Term Income Shares...................................... (33,210) (1,100,222)
Retail Shares................................................. (59,501) (1,869,045)
Advantage Shares.............................................. (90,823) (2,207,983)
--------------- ----------------
Total dividends to shareholders.......................... (196,490) (5,257,415)
--------------- ----------------
Distributions to shareholders from realized gains on investments:
Institutional Shares.......................................... (159) -0-
Institutional Service Shares ................................. (10) -0-
Short Term Income Shares ..................................... (2,161) -0-
Retail Shares................................................. (6,370) -0-
Advantage Shares.............................................. (7,379) -0-
--------------- ----------------
Total distributions to shareholders...................... (16,079) -0-
--------------- ----------------
Capital share transactions (Note 5):
Institutional Shares.......................................... 177,266 204,579
Institutional Service Shares.................................. 138,920 138,155
Short Term Income Shares...................................... (9,929,157) (32,321,570)
Retail Shares................................................. 15,175,280 (19,177,448)
Advantage Shares.............................................. 30,042,033 (35,437,062)
--------------- ----------------
Total capital share transactions........................ 35,604,342 (86,593,346)
--------------- ----------------
Total increase (decrease)..................................... 35,511,777 (86,566,766)
Net assets:
Beginning of period........................................... 403,403,763 489,970,529
--------------- ----------------
End of period................................................ $ 438,915,540 $ 403,403,763
=============== ================
Undistributed net investment income............................... $ -0- $ 76,901
=============== ================
<fn>
* Designated as exempt-interest dividends for income tax purposes.
</fn>
</table>
The accompanying notes are an integral part of these financial statements.
<page>
- --------------------------------------------------------------------------------
DAILY INCOME FUND
MUNICIPAL PORTFOLIO
FINANCIAL HIGHLIGHTS
(UNAUDITED)
================================================================================
<table>
<caption>
Six Months Ended Commencement of Operations
Institutional shares September 30, 2009 Year Ended March 31, October 30, 2006 through
- -------------------- --------------------
(Unaudited) 2009 2008 March 31, 2007
---------- -------- --------- ---------------
<s> <c> <c> <c> <c>
Per Share Operating Performance:
(for a share outstanding throughout the period)
Net asset value, beginning of period................... $ 1.00 $ 1.00 $ 1.00 $ 1.00
--------- -------- -------- --------
Income from investment operations:
Net investment income........................ 0.003 0.019 0.033 0.006
Net realized and unrealized gain(loss) on investments 0.000 0.000 0.000 --
--------- -------- -------- --------
Total from investment operations............... 0.003 0.019 0.033 0.006
Less distributions from:
Dividends from net investment income......... (0.003) (0.019) (0.033) (0.006)
Net realized gains on investments............ (0.000) -- (0.000) --
--------- -------- -------- --------
Total distributions............................ (0.003) (0.019) (0.033) (0.006)
--------- -------- -------- --------
Net asset value, end of period................. $ 1.00 $ 1.00 $ 1.00 $ 1.00
========= ======== ======== ========
Total Return................................... 0.30%(a) 1.96% 3.35% 0.60%(a)
Ratios/Supplemental Data
Net assets, end of period (000's).............. $ 4,237 $ 4,061 $ 3,856 $ 10
Ratios to average net assets:
Expenses (net of fees waived)(b)............. 0.25%(c) 0.23% 0.20% 0.20%(c)
Net investment income........................ 0.57%(c) 1.93% 2.87% 3.44%(c)
Management and administration fees waived.... 0.11%(c) 0.10% 0.13% 0.16%(c)
Expenses paid indirectly..................... -- 0.00% 0.00% --
<table>
<caption>
Six Months Ended Commencement of Operations
Institutional Service shares September 30, 2009 Year Ended March 31, March 19, 2007 through
- ---------------------------- --------------------
(Unaudited) 2009 2008 March 31, 2007
---------- -------- --------- ---------------
<s> <c> <c> <c> <c>
Per Share Operating Performance:
(for a share outstanding throughout the period)
Net asset value, beginning of period................... $ 1.00 $ 1.00 $ 1.00 $ 1.00
--------- -------- -------- --------
Income from investment operations:
Net investment income........................ 0.002 0.017 0.030 0.001
Net realized and unrealized gain(loss) on investments 0.000 0.000 0.000 --
--------- -------- -------- --------
Total from investment operations............... 0.002 0.017 0.030 0.001
Less distributions from:
Dividends from net investment income......... (0.002) (0.017) (0.030) (0.001)
Net realized gains on investments............ (0.000) -- (0.000) --
--------- -------- -------- --------
Total distributions............................ (0.002) (0.017) (0.030) (0.001)
--------- -------- -------- --------
Net asset value, end of period................. $ 1.00 $ 1.00 $ 1.00 $ 1.00
========= ======== ======== ========
Total Return................................... 0.18%(a) 1.70% 3.09% 0.12%(a)
Ratios/Supplemental Data
Net assets, end of period (000's).............. $ 387 $ 249 $ 110 $ 10
Ratios to average net assets:
Expenses (net of fees waived)(b)............. 0.50%(c) 0.48% 0.45% 0.42%(c)
Net investment income........................ 0.29%(c) 1.69% 2.81% 3.25%(c)
Management and administration fees waived.... 0.11%(c) 0.10% 0.13% 0.16%(c)
Transfer Agency Account fees waived.......... -- -- 0.01% --
Expenses paid indirectly..................... -- 0.00% 0.00% --
<FN>
(a) Unannualized
(b) Includes expense paid indirectly, if applicable.
(c) Annualized
</FN>
</table>
The accompanying notes are an integral part of these financial statements.
<page>
- --------------------------------------------------------------------------------
================================================================================
<table>
<caption>
Six Months Ended Commencement of Operations
Short Term Income shares September 30, 2009 Year Ended March 31, February 20, 2007 through
- ------------------------ --------------------
(Unaudited) 2009 2008 March 31, 2007
---------- -------- --------- ---------------
<s> <c> <c> <c> <c>
Per Share Operating Performance:
(for a share outstanding throughout the period)
Net asset value, beginning of period................... $ 1.00 $ 1.00 $ 1.00 $ 1.00
--------- -------- -------- --------
Income from investment operations:
Net investment income........................ 0.001 0.014 0.027 0.003
Net realized and unrealized gain(loss) on investments 0.000 0.000 0.000 --
--------- -------- -------- --------
Total from investment operations............... 0.001 0.014 0.027 0.003
Less distributions from:
Dividends from net investment income......... (0.001) (0.014) (0.027) (0.003)
Net realized gains on investments............ (0.000) -- (0.000) --
--------- -------- -------- --------
Total distributions............................ (0.001) (0.014) (0.027) (0.003)
--------- -------- -------- --------
Net asset value, end of period................. $ 1.00 $ 1.00 $ 1.00 $ 1.00
========= ======== ======== ========
Total Return................................... 0.06%(a) 1.39% 2.78% 0.29%(a)
Ratios/Supplemental Data
Net assets, end of period (000's).............. $ 50,972 $ 60,907 $ 93,233 $ 57,915
Ratios to average net assets:
Expenses (net of fees waived)(b)............. 0.74%(c) 0.78% 0.76% 0.76%(c)
Net investment income........................ 0.09%(c) 1.41% 2.74% 2.89%(c)
Management and administration fees waived.... 0.11%(c) 0.10% 0.13% 0.16%(c)
Distribution fees waived..................... 0.24%(c) 0.17% 0.17% 0.17%(c)
Expenses paid indirectly..................... -- 0.00% 0.00% --
<table>
<caption>
Six Months Ended Commencement of Operations
Retail shares September 30, 2009 Year Ended March 31, December 8, 2006 through
- ------------- ---------------------
(Unaudited) 2009 2008 March 31, 2007
---------- -------- --------- ---------------
<s> <c> <c> <c> <c>
Per Share Operating Performance:
(for a share outstanding throughout the period)
Net asset value, beginning of period................... $ 1.00 $ 1.00 $ 1.00 $ 1.00
--------- -------- -------- --------
Income from investment operations:
Net investment income........................ 0.000 0.011 0.025 0.008
Net realized and unrealized gain(loss) on investments 0.000 0.000 0.000 --
--------- -------- -------- --------
Total from investment operations............... 0.000 0.011 0.025 0.008
Less distributions from:
Dividends from net investment income......... (0.000) (0.011) (0.025) (0.008)
Net realized gains on investments............ (0.000) -- (0.000) --
--------- -------- -------- --------
Total distributions............................ (0.000) (0.011) (0.025) (0.008)
--------- -------- -------- --------
Net asset value, end of period................. $ 1.00 $ 1.00 $ 1.00 $ 1.00
========= ======== ======== ========
Total Return................................... 0.04%(a) 1.15% 2.54% 0.84%(a)
Ratios/Supplemental Data
Net assets, end of period (000's).............. $166,884 $151,745 $170,909 $ 41,817
Ratios to average net assets:
Expenses (net of fees waived)(b)............. 0.77%(c) 1.02% 1.00% 1.00%(c)
Net investment income........................ 0.02%(c) 1.13% 2.38% 2.65%(c)
Management and administration fees waived.... 0.11%(c) 0.10% 0.13% 0.16%(c)
Shareholder servicing and distribution fees waived 0.41%(c) 0.13% 0.13% 0.10%(c)
Transfer Agency Account fees waived.......... -- -- -- 0.03%(c)
Expenses paid indirectly..................... -- 0.00% 0.00% --
<FN>
(a) Unannualized
(b) Includes expense paid indirectly, if applicable.
(c) Annualized
</FN>
</table>
The accompanying notes are an integral part of these financial statements.
<page>
- --------------------------------------------------------------------------------
DAILY INCOME FUND
MUNICIPAL PORTFOLIO
FINANCIAL HIGHLIGHTS (CONTINUED)
(UNAUDITED)
================================================================================
<table>
<caption>
Six Months Ended Commencement of Operations
Advantage shares September 30, 2009 Year Ended March 31, November 2, 2006, 2006 through
- ---------------- ---------------------
(Unaudited) 2009 2008 March 31, 2007
---------- -------- --------- ---------------
<s> <c> <c> <c> <c>
Per Share Operating Performance:
(for a share outstanding throughout the period)
Net asset value, beginning of period................... $ 1.00 $ 1.00 $ 1.00 $ 1.00
--------- -------- -------- --------
Income from investment operations:
Net investment income........................ 0.001 0.011 0.025 0.011
Net realized and unrealized gain(loss) on investments 0.000 0.000 0.000 --
--------- -------- -------- --------
Total from investment operations............... 0.001 0.011 0.025 0.011
Less distributions from:
Dividends from net investment income......... (0.001) (0.011) (0.025) (0.011)
Net realized gains on investments............ (0.000) -- (0.000) --
--------- -------- -------- --------
Total distributions............................ (0.001) (0.011) (0.025) (0.011)
--------- -------- -------- --------
Net asset value, end of period................. $ 1.00 $ 1.00 $ 1.00 $ 1.00
========= ======== ======== ========
Total Return................................... 0.05%(a) 1.12% 2.52% 1.09%(a)
Ratios/Supplemental Data
Net assets, end of period (000's).............. $216,435 $186,442 $221,862 $136,546
Ratios to average net assets:
Expenses (net of fees waived)(b)............. 0.75%(c) 1.04% 1.02% 1.02%(c)
Net investment income........................ 0.07%(c) 1.12% 2.41% 2.65%(c)
Management and administration fees waived.... 0.11%(c) 0.10% 0.13% 0.16%(c)
Distribution fees waived..................... 0.48%(c) 0.16% 0.16% 0.16%(c)
Expenses paid indirectly..................... -- 0.00% 0.00% --
<FN>
(a) Unannualized
(b) Includes expense paid indirectly, if applicable.
(c) Annualized
</FN>
</table>
The accompanying notes are an integral part of these financial statements.
<page>
[THIS PAGE INTENTIONALLY LEFT BLANK.]
<page>
- --------------------------------------------------------------------------------
DAILY INCOME FUND
NOTES TO THE FINANCIAL STATEMENTS
(UNAUDITED)
================================================================================
1. Summary of Accounting Policies
Daily Income Fund (the "Fund") is a diversified, open-end management investment
company registered under the Investment Company Act of 1940 (the "1940 Act").
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"). The
investment objective of the Money Market, U.S. Treasury and U.S. Government
Portfolios is to seek as high a level of current income to the extent consistent
with the preservation of capital and the maintenance of liquidity. The
investment objective of the Municipal Portfolio is to seek as high a level of
tax-exempt current income to the extent consistent with the preservation of
capital and the maintenance of liquidity. Each portfolio has five core classes
of stock authorized: Institutional, Institutional Service, Investor, Short Term
Income, and Retail shares. In addition to the core classes the Money Market
Portfolio includes the Pinnacle, Advantage and Xpress shares, the U.S. Treasury
Portfolio includes the Pinnacle shares, the U.S. Government and Municipal
Portfolios include the Advantage shares. Commencement of operations for each of
the share classes began as follows:
<table>
<caption>
Money Market U.S. Treasury U.S. Government Municipal
Share classes Portfolio Portfolio Portfolio Portfolio
------------- --------- --------- --------- ---------
<s> <c> <c> <c> <c>
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 ("N/A") N/A
Short Term Income shares........ February 12, 2007 November 2, 2006 N/A 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 Not Offered ("N/O") N/O
Advantage shares................ November 1, 2006 N/O November 2, 2006 November 2, 2006
Xpress shares................... June 20, 2007 N/O N/O N/O
</table>
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 recorded on the basis of amortized cost, which approximates
value, as permitted by Rule 2a-7 under the 1940 Act. Under this method, a
portfolio instrument is valued at cost and any discount or premium is amortized
on a constant basis to the maturity of the instrument. The maturity of variable
rate demand instruments is deemed to be the longer of the period required before
the Fund is entitled to receive payment of the principal amount or the period
remaining until the next interest rate adjustment.
b) Securities Transactions and Investment Income -
Securities transactions are recorded on a trade date basis. Interest income,
adjusted for accretion of discount and amortization of premium, is recorded on
the accrual basis from settlement date. Realized gains and losses on sales are
computed on the basis of specific identification of the securities sold.
c) Repurchase Agreements -
All Portfolios may enter into repurchase agreements. Eligible securities for
collateral are securities consistent with the Portfolio's investment objectives
and may consist of U.S. Government Securities and/or U.S. Government Sponsored
Agency Securities. In connection with transactions in repurchase agreements, it
is the Portfolio'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. Under
these arrangements, the Portfolios are permitted to deliver or re-pledge these
securities. If the seller of a repurchase agreement fails to repurchase the
security in accordance with the terms of the agreement, the Portfolios might
incur expenses in enforcing their rights, and could experience losses, including
a decline in the value of the collateral and loss of income.
d) 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 substantially all of its taxable income to its shareholders.
Therefore, no provision for federal income taxes is required in the financial
statements.
Consistent with Financial Accounting Standards Board ("FASB") Interpretation No.
48, Accounting for Uncertainty in Income Taxes, an interpretation of FASB
Statement No. 109 ("FIN 48") management evaluates tax positions taken or
expected to be taken in the course of preparing the Fund's tax returns to
determine whether the tax positions are "more-likely-than-not" of being
sustained by the applicable tax authority. Tax positions not deemed to meet the
"more-likely-than-not" threshold are recorded as a component of income tax
expense in the current period with a corresponding adjustment to a liability for
uncertain tax positions. The Fund recognizes interest and penalties, if any,
related to uncertain tax positions as income tax expense in the statement of
operations.
<page>
- --------------------------------------------------------------------------------
================================================================================
1. Summary of Accounting Policies (Continued)
e) 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 and paid
monthly. Net realized capital gains, if any, are distributed at least annually
and in no event later than 60 days after the end of the Fund's fiscal year.
f) Accounting 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.
g) 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.
h) Allocation of Income and Expenses -
Each Portfolio may allocate among its classes and to the extent allowable, to
specific classes, certain expenses, including shareholder servicing fees,
distribution fees, transfer agent fees, government registration fees, certain
printing and postage costs, and administrative and legal expenses. For the
period ended September 30, 2009, class specific expenses of each Portfolio were
limited to shareholder servicing fees, distribution fees and transfer agent
expenses. Income, expenses (other than expenses attributable to a specific
class), and realized and unrealized gains or 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
Portfolio.
i) Risks -
Investments in obligations issued by agencies and instrumentalities of the U.S.
Government may vary in the level of support they receive from the government.
The government may choose not to provide financial support to government
sponsored agencies or instrumentalities if it is not legally obligated to do so.
In this case, if the issuer defaulted, the underlying Portfolio holding
securities of such issuer might not be able to recover its investment from the
U.S. Government.
The effect on performance from investing in securities issued or guaranteed by
companies in the banking and financial services industries will depend to a
greater extent on the overall condition of those industries. Financial services
companies are highly dependent on the supply of short-term financing. The value
of securities of issuers in the banking and financial services industry can be
sensitive to changes in government regulation and interest rates and to economic
downturns in the United States and abroad.
The value of, payment of interest on, repayment of principal for and the ability
to sell a municipal security may be affected by constitutional amendments,
legislative enactments, executive orders, administrative regulations, voter
initiatives and the economics of the regions in which the issuers are located.
Since many municipal securities are issued to finance similar projects,
especially those relating to education, housing, health care, transportation and
utilities, conditions in those sectors can affect the overall municipal
securities market and a Portfolio's investment in municipal securities.
There is some risk that a portion or all of the interest received from certain
tax-free municipal securities could become taxable as a result of determinations
by the Internal Revenue Service.
In a low interest rate environment, such as the environment that existed at
September 30, 2009, Reich & Tang Asset Management LLC ("the "Manager") and Reich
& Tang Distributors, Inc. (the "Distributor") have historically waived their
fees to maintain a minimum non-negative yield for all classes of the Fund. The
Manager and Distributor are under no contractual obligation to continue such
waiver in the future.
2. Investment Management Fees and Other Transactions with Affiliates
Under the Investment Management Contract, each Portfolio pays an investment
management fee to 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 Agreement, Reich & Tang Services, Inc., (the "TA"),
an affiliate of the Manager, performs or sub-contracts or employs others to
perform certain sub-accounting services for the Advantage and Xpress
shareholders. For its services under the Sub-Accounting Agreement, the TA
receives from the Portfolio a fee up to 0.10% per annum of the average daily net
assets of the Advantage shares and Xpress shares.
<page>
- --------------------------------------------------------------------------------
DAILY INCOME FUND
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
(UNAUDITED)
===============================================================================
2. Investment Management Fees and Other Transactions with Affiliates (Continued)
The Fund and the Distributor, an affiliate of the Manager, have entered into a
Shareholder Servicing Agreement and a Distribution Agreement. For its services
under the Shareholder Servicing and Distribution Agreements, the Distributor
receives from each Portfolio a fee, accrued daily and paid monthly, at an annual
rate of each Class's average daily net assets as follows:
<table>
<caption>
Shareholder Servicing Fees Distribution Fees
-------------------------- ------------------
<s> <c> <c>
Institutional Shares........................ -0- -0-
Institutional Service Shares................ 0.25% -0-
Investor Shares............................. 0.25% 0.20%
Short Term Income Shares.................... 0.25% 0.45%
Retail Shares............................... 0.25% 0.65%
Pinnacle Shares............................. -0- -0-
Advantage Shares............................ 0.25% 0.75%
Xpress Shares............................... 0.25% 0.75%
</table>
As of September 30, 2009, the amounts Payable to affiliates included in the
Statement of Assets and Liabilities are broken down as follows:
<table>
<caption>
Money Market U.S. Treasury U.S. Government Municipal
Fee Type/ Affiliate Portfolio Portfolio Portfolio Portfolio
------------------- -------- --------- --------- ---------
<s> <c> <c> <c> <c>
Investment management fees/Manager.......... $858,131 $91,324 $131,671 $ -0-
Administration fees/Manager................. -0- -0- 10,982 -0-
Shareholder servicing fees/Distributor...... 161,689 -0- 55,130 20,440
Distribution fees/Distributor............... -0- -0- -0- 6,981
Sub-Accounting Fees/TA...................... -0- -0- -0- -0-
Transfer agency fees/TA..................... 89,311 -0- 28,889 9,912
---------- --------- --------- ---------
Total....................................... $1,109,131 $91,324 $226,672 $37,333
========== ========= ========= ==========
</table>
For the period ended September 30, 2009, the following fees were voluntarily
waived by the Manager, Distributor and TA:
<table>
<caption>
Money Market U.S. Treasury U.S. Government Municipal
Portfolio Portfolio Portfolio Portfolio
----------- ---------- ---------- ----------
<s> <c> <c> <c> <c>
Investment management fees.................. $33,248 $32,163 $-0- $129,977
Administration fees......................... 1,208,120 314,228 253,212 108,315
Shareholder servicing fees - Institutional Service shares 30,121 142,924 30 -0-
Shareholder servicing fees - Investor shares 26,979 156,101 N/A N/A
Shareholder servicing fees - Short Term Income shares 27,012 130,873 N/A -0-
Shareholder servicing fees - Retail shares.. 111,322 11,010 25,483 11,040
Shareholder servicing fees - Advantage shares 150,137 -0- 66,764 -0-
Shareholder servicing fees - Xpress shares.. 14,770 N/O N/O N/O
Distribution fees - Investor shares......... 188,231 211,220 N/A N/A
Distribution fees - Short Term Income shares 407,250 410,949 N/A 69,243
Distribution fees - Retail shares........... 2,845,745 41,818 487,739 340,915
Distribution fees - Advantage shares........ 4,533,591 N/O 2,943,370 483,707
Distribution fees - Xpress shares........... 755,479 N/O N/O N/O
Transfer agency fees - Institutional Service shares -0- 3,920 -0- -0-
Transfer agency fees - Institutional shares. 18,086 7,511 -0- -0-
Transfer agency fees - Investor shares...... -0- 14,904 N/A N/A
Transfer agency fees - Short Term Income shares -0- 10,863 N/A -0-
Transfer agency fees - Retail shares........ -0- 905 -0- -0-
Transfer agency fees - Pinnacle shares...... 6,417 917 N/O N/O
----------- ---------- ---------- ----------
Total....................................... $10,356,508 $1,490,306 $3,776,598 $1,143,197
=========== ========== ========== ==========
</table>
Included in the above amounts were waivers to maintain a minimum yield in light
of market conditions.
<page>
- --------------------------------------------------------------------------------
================================================================================
2. Investment Management Fees and Other Transactions with Affiliates (Continued)
Currently, the Fund's investment manager and distributor have voluntarily agreed
to waive fees and/or reimburse expenses in order to maintain Total Annual
Operating expenses as set forth below ("the Expense Cap Arrangement"). The
Expense Cap Arrangement may not be modified or terminated before July 31, 2010,
without prior approval of the Fund's Board of Trustees.
<table>
<caption>
Money Market U.S. Treasury U.S. Government Municipal
Share classes Portfolio Portfolio Portfolio Portfolio
------------- --------- --------- --------- ---------
<s> <c> <c> <c> <c>
Institutional shares................... 0.25% 0.25% N/A 0.25%
Institutional Service shares........... 0.50% 0.50% 0.50% 0.50%
Investor shares........................ 0.70% 0.68% N/A N/A
Short Term Income shares............... 0.99% 0.95% N/A 0.81%
Retail shares.......................... 1.05% 1.05% 1.05% 1.05%
Pinnacle shares........................ 0.25% 0.25% N/O N/O
</table>
In light of recent market conditions, the Manager and Distributor may
temporarily waive additional fees and/or reimburse additional expenses in an
amount in excess of the amount required under the Expense Cap Arrangement in an
effort to maintain certain net yields. In the event that the Manager and/or
Distributor waive fees and/or reimburse expenses either as a result of the
Expense Cap Arrangement or in an effort to maintain certain net yields, the
Fund's Board of Trustees has agreed that the Manager and Distributor may be
reimbursed, on a class by class basis, for such fee reductions and/or expense
payments. In carrying out this reimbursement to the Manager and/or Distributor,
the annualized expense ratio as of any day in the fiscal year shall not exceed
the rates set forth in the Expense Cap Arrangement. The Manager and Distributor
may not recover fee reductions and/or expense payments with respect to a class
more than 2 years after the end of the fiscal year in which the fee was reduced
or expense borne. The Manager and Distributor have determined and the Fund's
Board of Trustees have approved that the fee waivers eligible for reimbursement
are those occurring after January 31, 2009.
The fee waivers that are eligible for reimbursement are calculated and reported
as of each fiscal year end. Below are the fees that may be reimbursed to the
Manager and Distributor at a later date for the period February 1, 2009 through
March 31, 2009:
<table>
<caption>
Money Market U.S. Treasury U.S. Government Municipal
Portfolio Portfolio Portfolio Portfolio
--------- --------- --------- ---------
<s> <c> <c> <c> <c>
Investment management fees.................. $154,938 $-0- $-0- $79,990
Administration fees......................... 387,345 102,733 97,789 33,329
Shareholder servicing fees - Institutional Service shares 3,254 304 -0- -0-
Shareholder servicing fees - Investor shares -0- 2,514 N/A N/A
Shareholder servicing fees - Short Term Income shares -0- 1,757 N/A -0-
Shareholder servicing fees - Retail shares.. -0- 3,020 -0- -0-
Distribution fees - Investor shares......... 21,651 65,759 N/A N/A
Distribution fees - Short Term Income shares 12,510 109,482 N/A 17,843
Distribution fees - Retail shares........... 318,785 11,764 81,832 32,746
-------- --------- --------- ---------
Total....................................... $898,483 $297,333 $179,621 $163,908
======== ========= ========= =========
</table>
The Manager's and Distributor's right to receive expense reimbursements for the
above amounts expires on March 31, 2011.
Trustees of the Fund not affiliated with the Manager are paid a fee that is
allocated among multiple funds, as defined below. Each Independent Trustee
receives an annual retainer of $60,000 and a fee of $3,000 for each Board of
Trustees meeting attended. Each Independent Trustee also receives a fee up to
$1,500 at the discretion of the Lead Trustee for telephonic Board meetings and
committee meetings that are not held on the same day as a Board Meeting. In
addition, the Lead Independent Trustee receives an additional annual fee of
$13,800, payable quarterly and the Audit Committee Chairman and Compliance
Oversight Committee Chairman will each receive an additional annual fee of
$9,200, payable quarterly. Each Independent Trustee will also be reimbursed for
all out-of-pocket expenses relating to attendance at such meetings. The fees
noted above are to be allocated at the discretion of the Manager 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.
<page>
- --------------------------------------------------------------------------------
DAILY INCOME FUND
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
(UNAUDITED)
===============================================================================
2. Investment Management Fees and Other Transactions with Affiliates (Continued)
Included in the Statement of Operations under the caption "Shareholder servicing
and related shareholder expenses" are fees pursuant to the Transfer Agency
Agreement between the TA and the Portfolios. The TA, an affiliate of the
Manager, 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 Portfolios or (ii)
0.02% of the monthly average net assets of the Institutional Service,
Institutional and Pinnacle shares of the Portfolios. The Advantage and Xpress
shares do not participate in the Transfer Agency Agreement. For the period ended
September 30, 2009 these fees after waivers amounted to:
<table>
<caption>
Money Market U.S. Treasury U.S. Government Municipal
Portfolio Portfolio Portfolio Portfolio
--------- --------- --------- ---------
Amount % Amount % Amount % Amount %
------- --- ------- --- ------- --- ------ ---
<s> <c> <c> <c> <c> <c> <c> <c> <c>
Institutional shares................. $ 33,728 0.01% $48,479 0.02% $7,883 0.02% $ 417 0.02%
Institutional Service shares......... 27,310 0.02% 18,380 0.02% 24 0.02% 32 0.02%
Investor shares...................... 83,058 0.05% 38,120 0.04% N/A N/A
Short Term Income shares............. 79,446 * 34,811 0.04% N/A 14,169 0.05%
Retail shares........................ 315,108 0.05% 2,305 0.04% 48,469 0.05% 42,502 0.05%
Pinnacle shares...................... 12,800 0.01% 5,379 0.02% N/O N/O
--------- -------- ------- --------
Total............................. $551,450 $147,474 $56,376 $ 57,120
========= ======== ======= ========
<fn>
* Per account
</fn>
</table>
The Delafield Fund, Inc., which was an affiliated fund, invested its excess cash
in accordance with Rule 12d-1 of the 1940 Act into the Daily Income Fund - Money
Market Portfolio - Institutional Class Shares. On September 27, 2009, the
Delafield Fund transferred its assets and liabilities into a newly created
series of The Tocqueville Trust. For the period ended September 27, 2009, The
Delafield Fund had invested an average of $94,576,589. 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 period ended September 30, 2009, NGAM LP has
invested an average of $226,613,899 and as of September 30, 2009 has an
investment of $70,700,217. Also, on a daily basis, the Manager, Distributor, TA
and affiliated investment entities invest their excess cash in Daily Income Fund
that are not material to that entity.
As of September 30, 2009, certain Trustees, Officers and affiliated entities had
investments in the Portfolios representing less than 2% of each Portfolio.
3. Securities Transactions with Affiliated Funds
The Portfolios are permitted to purchase or sell securities from or to certain
other Reich & Tang Funds under specified conditions outlined in procedures
adopted by the Board of Trustees of the Portfolio. The procedures have been
designed to ensure that any purchase or sale of securities of the Portfolio from
or to another fund or portfolio that is or could be considered an affiliate by
virtue of having a common investment advisor (or affiliated investment
advisors), common Trustees and/or common officers complies with Rule 17a-7 of
the 1940 Act. Further, as defined under the procedures, each transaction is
effected at the current market price. For the period ended September 30, 2009,
the Portfolios engaged in purchases and sales with affiliates, none of which
resulted in any gain or loss, which amounted to:
<table>
<caption>
Money Market U.S. Treasury U.S. Government Municipal
Transaction Type Portfolio Portfolio Portfolio Portfolio
---------------- --------- --------- --------- ----------
<s> <c> <c> <c> <c>
Purchases................................... $-0- $-0- $-0- $157,900,000
Sales....................................... $50,300,000 -0- -0- 104,030,000
Gains/(losses).............................. -0- -0- -0- -0-
</table>
<page>
- --------------------------------------------------------------------------------
================================================================================
4. Compensating Balance Arrangement and Other Transactions
The Portfolios are permitted to temporarily overdraft or leave balances in their
accounts with The Bank of New York Mellon (the "Bank"). To compensate the Bank
for such activity the Portfolios may, in the case of the Municipal Portfolio,
leave funds or overdraft funds as a compensating balance in the account so the
Bank or the Portfolios can be compensated for use of funds based upon the agreed
upon formula. Unless agreed otherwise at the end of pre-determined three month
periods, the Portfolio will be charged for average overdrafts or receive an
earnings credit for average positive balances computed at the agreed upon rate
on the last day of the period.
For the Money Market, U.S. Treasury and U.S. Government Portfolios the Bank or
the Portfolios will be compensated by accumulating the daily overdraft charges
and/or earnings credits throughout the month, respectively.
Earnings credit, if any, are offset against the Portfolio's safekeeping fees
which are included in the Statement of Operations under the caption custodian
expenses.
5. Transactions in Shares of Beneficial Interest
At September 30, 2009, an unlimited number of shares of beneficial interest
($0.001 par value) were authorized. Transactions were as follows:
<table>
<caption>
Year Ended
Money Market Portfolio Six Months Ended March 31, 2009
September 30, 2009 --------------
(Unaudited)
---------
Institutional Shares Net Assets Shares Net Assets Shares
- -------------------- ---------------- -------------- --------------- --------------
<s> <c> <c> <c> <c>
Sold......................................$ 13,458,779,598 13,458,779,598 $25,952,698,568 25,952,698,568
Issued on reinvestment of dividends....... 1,064,493 1,064,493 14,072,031 14,072,031
Redeemed.................................. (13,413,031,504) (13,413,031,504) (26,423,145,467)(26,423,145,467)
Additional paid-in-capital*............... -0- -0- 3,659 -0-
---------------- --------------- --------------- --------------
Net increase (decrease)...................$ 46,812,587 46,812,587 $ (456,371,209) (456,374,868)
================ =============== =============== ==============
Institutional Service Shares Net Assets Shares Net Assets Shares
- ---------------------------- ---------------- -------------- --------------- --------------
Sold......................................$ 967,450,981 967,450,981 $ 2,546,277,747 2,546,277,747
Issued on reinvestment of dividends....... 265,157 265,157 7,442,016 7,442,016
Redeemed.................................. (837,209,879) (837,209,879) (2,614,551,658) (2,614,551,658)
Additional paid-in-capital*............... -0- -0- 2,387 -0-
---------------- --------------- --------------- --------------
Net increase (decrease)...................$ 130,506,259 130,506,259 $ (60,829,508) (60,831,895)
================ =============== =============== ==============
Investor Shares Net Assets Shares Net Assets Shares
- -------------- ---------------- -------------- --------------- --------------
Sold......................................$ 386,151,266 386,151,266 $1,463,422,535 1,463,422,535
Issued on reinvestment of dividends....... 280,163 280,163 6,470,811 6,470,811
Redeemed.................................. (434,789,707) (434,789,707) (1,448,604,571) (1,448,604,571)
Additional paid-in-capital*............... -0- -0- 4,053 -0-
---------------- --------------- --------------- --------------
Net increase (decrease)...................$ (48,358,278) (48,358,278) $ 21,292,828 21,288,775
================ =============== =============== ==============
Short Term Income Shares Net Assets Shares Net Assets Shares
- ------------------------ ---------------- -------------- --------------- --------------
Sold......................................$ 568,031,946 568,031,946 $1,357,867,376 1,357,867,376
Issued on reinvestment of dividends....... 56,434 56,434 4,459,548 4,459,548
Redeemed.................................. (538,883,823) (538,883,823) (1,397,492,153) (1,397,492,153)
Additional paid-in-capital*............... -0- -0- 3,132 -0-
---------------- --------------- --------------- --------------
Net increase (decrease)...................$ 29,204,557 29,204,557 $ (35,162,097) (35,165,229)
================ =============== =============== ==============
</table>
<page>
- --------------------------------------------------------------------------------
DAILY INCOME FUND
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
(UNAUDITED)
================================================================================
5. Transactions in Shares of Beneficial Interest (Continued)
<table>
<caption>
Year Ended
Money Market Portfolio Six Months Ended March 31, 2009
September 30, 2009 --------------
(Unaudited)
---------
Retail Shares Net Assets Shares Net Assets Shares
- -------------- ---------------- -------------- --------------- --------------
<s> <c> <c> <c> <c>
Sold......................................$ 1,970,682,095 1,970,682,095 $ 3,651,004,571 3,651,004,571
Issued on reinvestment of dividends....... 228,312 228,312 24,257,365 24,257,365
Redeemed.................................. (2,191,359,081) (2,191,359,081) (3,729,788,565) (3,729,788,565)
Additional paid-in-capital*............... -0- -0- 16,360 -0-
---------------- --------------- --------------- --------------
Net increase (decrease)...................$ (220,448,674) (220,448,674) $ (54,510,269) (54,526,629)
================ =============== =============== ==============
Pinnacle Shares Net Assets Shares Net Assets Shares
- -------------- ---------------- -------------- --------------- --------------
Sold......................................$ 51,834,758 51,834,758 $ 239,504,424 239,504,424
Issued on reinvestment of dividends....... 466,122 466,122 4,601,277 4,601,277
Redeemed.................................. (65,305,096) (65,305,096) (219,290,758) (219,290,758)
Additional paid-in-capital*............... -0- -0- 2,391 -0-
---------------- --------------- --------------- --------------
Net increase (decrease)...................$ (13,004,216) (13,004,216) $ 24,817,334 24,814,943
================ =============== =============== ==============
Advantage Shares Net Assets Shares Net Assets Shares
- -------------- ---------------- -------------- --------------- --------------
Sold......................................$ 861,504,511 861,504,511 $ 1,725,993,844 1,725,993,844
Issued on reinvestment of dividends....... 520,151 520,151 39,150,598 39,150,598
Redeemed.................................. (907,988,489) (907,988,489) (3,511,234,644) (3,511,234,644)
Additional paid-in-capital*............... -0- -0- 20,972 -0-
---------------- --------------- --------------- --------------
Net increase (decrease)...................$ (45,963,827) (45,963,827) $(1,746,069,230) (1,746,090,202)
================ =============== =============== ==============
Xpress Shares Net Assets Shares Net Assets Shares
- -------------- ---------------- -------------- --------------- --------------
Sold......................................$ 223,341,201 223,341,201 $ 431,916,022 431,916,022
Issued on reinvestment of dividends....... 29,633 29,633 3,678,745 3,678,745
Redeemed.................................. (219,490,618) (219,490,618) (436,531,363) (436,531,363)
Additional paid-in-capital*............... -0- -0- 3,786 -0-
---------------- --------------- --------------- --------------
Net increase (decrease)...................$ 3,880,216 3,880,216 $ (932,810) (936,596)
================ =============== =============== ==============
</table>
<page>
- --------------------------------------------------------------------------------
================================================================================
5. Transactions in Shares of Beneficial Interest (Continued)
U.S. Treasury Portfolio
<table>
<caption>
Year Ended
Six Months Ended March 31, 2009
September 30, 2009 --------------
(Unaudited)
---------
Institutional Shares Net Assets Shares Net Assets Shares
- -------------------- ---------------- -------------- --------------- --------------
<s> <c> <c> <c> <c>
Sold......................................$ 3,195,210,642 3,195,210,642 $4,897,862,093 4,897,862,093
Issued on reinvestment of dividends....... 453,961 453,961 5,411,509 5,411,509
Redeemed.................................. (3,310,076,575) (3,310,076,575) (4,921,081,322) (4,921,081,322)
Additional paid-in-capital*........ .. -0- -0- 8,796 -0-
---------------- --------------- --------------- --------------
Net increase (decrease)...................$ (114,411,972) (114,411,972) $ (17,798,924) (17,807,720)
================ =============== =============== ==============
Institutional Service Shares Net Assets Shares Net Assets Shares
- ---------------------------- ---------------- -------------- --------------- --------------
Sold......................................$ 622,102,985 622,102,985 $1,331,082,461 1,331,082,461
Issued on reinvestment of dividends....... 10,415 10,415 1,700,463 1,700,463
Redeemed.................................. (581,058,064) (581,058,064) (1,430,726,067) (1,430,726,067)
Additional paid-in-capital*............... -0- -0- 4,222 -0-
---------------- --------------- --------------- --------------
Net increase (decrease)...................$ 41,055,336 41,055,336 $ (97,938,921) (97,943,143)
================ =============== =============== ==============
Investor Shares Net Assets Shares Net Assets Shares
- -------------- ---------------- -------------- --------------- --------------
Sold......................................$ 412,985,493 412,985,493 $1,395,831,576 1,395,831,576
Issued on reinvestment of dividends....... 2,506 2,506 1,804,400 1,804,400
Redeemed.................................. (384,868,082) (384,868,082) (1,455,212,283) (1,455,212,283)
Additional paid-in-capital*............... -0- -0- 3,692 -0-
---------------- --------------- --------------- --------------
Net increase (decrease)...................$ 28,119,917 28,119,917 $ (57,572,615) (57,576,307)
================ =============== =============== ==============
Short Term Income Shares Net Assets Shares Net Assets Shares
- ------------------------ ---------------- -------------- --------------- --------------
Sold......................................$ 274,470,875 274,470,875 $ 610,899,466 610,899,466
Issued on reinvestment of dividends....... 2,096 2096 963,834 963,834
Redeemed.................................. (287,490,348) (287,490,348) (598,568,178) (598,568,178)
Additional paid-in-capital*............... -0- -0- 3,152 -0-
---------------- --------------- --------------- --------------
Net increase (decrease)...................$ (13,017,377) (13,017,377) $ 13,298,274 13,295,122
================ =============== =============== ==============
Retail Shares Net Assets Shares Net Assets Shares
- -------------- ---------------- -------------- --------------- --------------
Sold......................................$ 58,449,515 58,449,515 $ 201,230,057 201,230,057
Issued on reinvestment of dividends....... 154 154 87,535 87,535
Redeemed.................................. (55,857,310) (55,857,310) (211,884,653) (211,884,653)
Additional paid-in-capital*............... -0- -0- 181 -0-
---------------- --------------- --------------- --------------
Net increase (decrease)...................$ 2,592,359 2,592,359 $ (10,566,880) (10,567,061)
================ =============== =============== ==============
Pinnacle Shares Net Assets Shares Net Assets Shares
- -------------- ---------------- -------------- --------------- --------------
Sold......................................$ 22,848,800 22,848,800 $ 116,597,525 116,597,525
Issued on reinvestment of dividends....... 44,272 44,272 804,579 804,579
Redeemed.................................. (45,664,049) (45,664,049) (112,388,537) (112,388,537)
Additional paid-in-capital*............... -0- -0- 1,308 -0-
---------------- --------------- --------------- --------------
Net increase (decrease)...................$ (22,770,977) (22,770,977) $ 5,014,875 5,013,567
================ =============== =============== ==============
</table>
<page>
- --------------------------------------------------------------------------------
DAILY INCOME FUND
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
(UNAUDITED)
================================================================================
5. Transactions in Shares of Beneficial Interest (Continued)
U.S. Government Portfolio
<table>
<caption>
Six Months Ended
September 30, 2009 Year Ended
(Unaudited) March 31, 2009
---------- ----------------
Institutional Shares Net Assets Shares Net Assets Shares
- -------------------- ---------------- -------------- --------------- --------------
<s> <c> <c> <c> <c>
Sold......................................$ 124,400,000 124,400,000 $ -0- -0-
Issued on reinvestment of dividends....... 67,120 67,120 130 130
Redeemed.................................. (400,170) (400,170) (10,603) (10,603)
Additional paid-in-capital*............... -0- -0- 1 -0-
---------------- --------------- --------------- --------------
Net increase (decrease)...................$ 124,066,950 124,066,950 $ (10,472) (10,473)
================ =============== =============== ==============
Institutional Service Shares Net Assets Shares Net Assets Shares
- ---------------------------- ---------------- -------------- --------------- --------------
Sold......................................$ 1,468,833 1,468,833 $ 2,744,688 2,744,688
Issued on reinvestment of dividends....... 299 299 3,624 3,624
Redeemed.................................. (1,379,200) (1,379,200) (2,801,098) (2,801,098)
Additional paid-in-capital*............... -0- -0- 258 -0-
---------------- --------------- --------------- --------------
Net increase (decrease)...................$ 89,932 89,932 $ (52,528) (52,786)
================ =============== =============== ==============
Retail Shares Net Assets Shares Net Assets Shares
- -------------- ---------------- -------------- --------------- --------------
Sold......................................$ 753,858,840 753,858,840 $1,867,496,574 1,867,496,574
Issued on reinvestment of dividends....... 9,628 9,628 1,117,796 1,117,796
Redeemed.................................. (774,870,561) (774,870,561) (1,818,971,118) (1,818,971,118)
Additional paid-in-capital*............... -0- -0- 6,599 -0-
---------------- --------------- --------------- --------------
Net increase (decrease)...................$ (21,002,093) (21,002,093) $ 49,649,851 49,643,252
================ =============== =============== ==============
Advantage Shares Net Assets Shares Net Assets Shares
- ---------------- ---------------- -------------- --------------- --------------
Sold......................................$ 558,962,371 558,962,371 $1,626,943,379 1,626,943,379
Issued on reinvestment of dividends....... 133,849 133,849 6,547,794 6,547,794
Redeemed.................................. (498,140,997) (498,140,997) (1,325,551,433) (1,325,551,433)
Additional paid-in-capital*............... -0- -0- (2,929) -0-
---------------- --------------- --------------- --------------
Net increase (decreases) ................. $ 60,955,223 60,955,223 $ 307,936,811 307,939,740
================ =============== =============== ==============
</table>
<table>
<caption>
Municipal Portfolio Six Months Ended
September 30, 2009 Year Ended
(Unaudited) March 31, 2009
---------- ----------------
Institutional Shares Net Assets Shares Net Assets Shares
- -------------------- ---------------- -------------- --------------- --------------
<s> <c> <c> <c> <c>
Sold......................................$ 190,177 190,177 $ 284,180 284,180
Issued on reinvestment of dividends....... 13,944 13,944 78,534 78,534
Redeemed.................................. (26,855) (26,855) (157,636) (157,636)
Additional paid-in-capital*............... -0- -0- (499) -0-
---------------- --------------- --------------- --------------
Net increase (decrease)...................$ 177,266 177,266 $ 204,579 205,078
================ =============== =============== ==============
Institutional Service Shares Net Assets Shares Net Assets Shares
- ----------------------------- ---------------- -------------- --------------- --------------
Sold......................................$ 153,338 153,338 $ 306,045 306,045
Issued on reinvestment of dividends....... 582 582 3,405 3,405
Redeemed.................................. (15,000) (15,000) (171,205) (171,205)
Additional paid-in-capital*............... -0- -0- (90) -0-
---------------- --------------- --------------- --------------
Net increase (decrease)...................$ 138,920 138,920 $ 138,155 138,245
================ =============== =============== ==============
</table>
<page>
- --------------------------------------------------------------------------------
================================================================================
5. Transactions in Shares of Beneficial Interest (Continued)
<table>
<caption>
Municipal Portfolio Six Months Ended
September 30, 2009 Year Ended
(Unaudited) March 31, 2009
---------- ----------------
Short Term Income Shares Net Assets Shares Net Assets Shares
- ------------------------ ---------------- -------------- --------------- --------------
<s> <c> <c> <c> <c>
Sold......................................$ 148,871,314 148,871,314 $ 405,335,530 405,335,530
Issued on reinvestment of dividends....... 43,241 43,241 1,046,329 1,046,329
Redeemed.................................. (158,843,712) (158,843,712) (438,718,143) (438,718,143)
Additional paid-in-capital*............... -0- -0- 14,714 -0-
---------------- --------------- --------------- --------------
Net increase (decrease)...................$ (9,929,157) (9,929,157) $ (32,321,570) (32,336,284)
================ =============== =============== ==============
Retail Shares Net Assets Shares Net Assets Shares
- -------------- ---------------- -------------- --------------- --------------
Sold......................................$ 370,160,591 370,160,591 $ 790,943,350 790,943,350
Issued on reinvestment of dividends....... 74,651 74,651 1,802,909 1,802,909
Redeemed.................................. (355,059,962) (355,059,962) (811,918,034) (811,918,034)
Additional paid-in-capital*............... -0- -0- (5,673) -0-
---------------- --------------- --------------- --------------
Net increase (decrease)...................$ 15,175,280 15,175,280 $ (19,177,448) (19,171,775)
================ =============== =============== ==============
Advantage Shares Net Assets Shares Net Assets Shares
- ---------------- ---------------- -------------- --------------- --------------
Sold......................................$ 169,404,856 169,404,856 $ 435,561,702 435,561,702
Issued on reinvestment of dividends....... 112,001 112,001 2,260,266 2,260,266
Redeemed.................................. (139,474,824) (139,474,824) (473,255,216) (473,255,216)
Additional paid-in-capital*............... -0- -0- (3,814) -0-
---------------- --------------- --------------- --------------
Net increase (decrease)...................$ 30,042,033 30,042,033 (35,437,062) (35,433,248)
================ =============== =============== ==============
<fn>
*During the fiscal year ended March 31, 2009, the TA allocated amounts to the
Fund related to aged items below $50 or for which shareholder data was
unavailable.
</fn>
</table>
6. Tax Information
The amount and character of income and gains to be distributed are determined in
accordance with U.S. income tax regulations, which may differ from generally
accepted accounting principles. Reclassifications are made to each Portfolio's
capital accounts to reflect income and gains available for distribution (or
available capital loss carryforwards) under U.S. income tax regulations. The tax
character of distributions paid during the year and the tax components of net
assets will be reported at the Fund's fiscal year end.
Capital loss carryforward is calculated and reported as of a specific date.
Results of transactions and other activity after that date may effect the amount
of capital loss carryforward available for the Portfolios to utilize. The
ability to utilize capital loss carryforward in the future may be limited under
the Internal Revenue Code and related regulations based on the result of future
transactions.
At March 31, 2009, 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:
<table>
<caption>
Capital Loss Capital Loss Expiration of
Utilized Remaining Carryforwards
------- --------- -------------
<s> <c> <c> <c>
Money Market Portfolio -0- $ 233 2016
1,853,397 2017
---------
Total Money Market Portfolio 1,853,630
U.S. Treasury Portfolio -0- -0- N/A
U.S. Government Portfolio -0- 12,734 2014
54,070 2016
12,623 2017
---------
Total U.S. Government Portfolio 79,427
Municipal Portfolio $10,501 -0- N/A
</table>
<page>
- --------------------------------------------------------------------------------
DAILY INCOME FUND
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
(UNAUDITED)
================================================================================
7. Fair Valuation Measurements
The Fund adopted Financial Accounting Standards Board Statement of Financial
Accounting Standards No. 157, "Fair Value Measurements" ("FAS 157") on April 1,
2008. FAS 157 defines fair value as the price that the Fund would receive to
sell an asset or pay to transfer a liability in an orderly transaction between
market participants at the measurement date. FAS 157 establishes a framework for
measuring fair value and a three level hierarchy for fair value measurements
based on the transparency of inputs to the valuation of an asset or liability.
Inputs may be observable or unobservable and refer broadly to the assumptions
that market participants would use in pricing the asset or liability. Observable
inputs reflect the assumptions market participants would use in pricing the
asset or liability based on market data obtained from sources independent of the
Fund. Unobservable inputs reflect the Fund's own assumptions about the
assumptions that market participants would use in pricing the asset or liability
developed based on the best information available in the circumstances. A Fund
investment in its entirety is assigned a level based upon the inputs which are
significant to the overall valuation. Various inputs may be used to determine
the value of the Fund's investments. These inputs are summarized in three broad
levels:
Level 1 - quoted prices in active markets for identical securities.
Level 2 - other significant observable inputs (including quoted prices for
similar securities, interest rates, prepayment speeds, credit risk, etc.)
Level 3 - significant unobservable inputs (including the Fund's own assumptions
used to determine the fair value of investments).
The inputs or methodologies used for valuing securities are not necessarily an
indication of the risk associated with investing in those securities. Money
market securities may be valued using amortized cost, in accordance with the
1940 Act. Generally, amortized cost approximates the current fair value of a
security, but as the value is not obtained from a quoted price in an active
market, such securities are reflected as a Level 2.
The following table summarizes the inputs used to value the Daily Income Fund -
Money Market Portfolio's investments as of September 30, 2009:
<table>
<caption>
Quoted Prices in Active Significant Other Significant
Markets for Identical Observable Unobservable
Assets Inputs Inputs Inputs
Description (Level 1) (Level 2) (Level 3)
----------- ------------- ----------------- ------------------
<s> <c> <c> <c>
Debt securities issued by states of the United
States and political subdivisions of the states $ -0- $ 4,549,900,962 $ -0-
------------- ----------------- ------------------
Total $ -0- $ 4,549,900,962 $ -0-
------------- ----------------- ------------------
</table>
The following table summarizes the inputs used to value the Daily Income Fund -
U.S. Treasury Portfolio's investments as of September 30, 2009:
<table>
<caption>
Quoted Prices in Active Significant Other Significant
Markets for Identical Observable Unobservable
Assets Inputs Inputs Inputs
Description (Level 1) (Level 2) (Level 3)
----------- ------------- ----------------- ------------------
<s> <c> <c> <c>
Debt securities issued by the U.S. Treasury
and other U.S. government corporation
and agencies $ -0- $ 1,179,359,811 $ -0-
------------- ----------------- ------------------
Total $ -0- $ 1,179,359,811 $ -0-
------------- ----------------- ------------------
</table>
The following table summarizes the inputs used to value the Daily Income Fund -
U.S. Government Portfolio's investments as of September 30, 2009:
<table>
<caption>
Quoted Prices in Active Significant Other Significant
Markets for Identical Observable Unobservable
Assets Inputs Inputs Inputs
Description (Level 1) (Level 2) (Level 3)
----------- ------------- ----------------- ------------------
<s> <c> <c> <c>
Debt securities issued by the U.S. Treasury
and other U.S. government corporation
and agencies $ -0- $ 1,348,173,646 $ -0-
------------- ----------------- ------------------
Total $ -0- $ 1,348,173,646 $ -0-
------------- ----------------- ------------------
</table>
<page>
- --------------------------------------------------------------------------------
================================================================================
7. Fair Valuation Measurements
The following table summarizes the inputs used to value the Daily Income Fund -
Municipal Portfolio's investments as of September 30, 2009:
<table>
<caption>
Quoted Prices in Active Significant Other Significant
Markets for Identical Observable Unobservable
Assets Inputs Inputs Inputs
Description (Level 1) (Level 2) (Level 3)
----------- ------------- ----------------- ------------------
<s> <c> <c> <c>
Debt securities issued by states of the United
States and political subdivisions of the states $ -0- $ 442,589,537 $ -0-
------------- ----------------- ------------------
Total $ -0- $ 442,589,537 $ -0-
------------- ----------------- ------------------
</table>
For the period ended September 30, 2009, there was no Level 1 or 3 investments.
The Fund has adopted Financial Accounting Standards Board Standard No. 157-4 -
Determining Fair Value When the Volume and Level of Activity for the Asset or
Liability have Significantly Decreased and Identifying Transactions that are Not
Orderly.
8. Subsequent Events
In accordance with the adoption of SFAS No. 165, "Subsequent Events", and in
preparing these financial statements, the Fund has evaluated events and
transactions for potential recognition or disclosure through November 23, 2009,
the date the financial statements were issued. The following events have
occurred or are scheduled to occur:
On September 18, 2009 the Treasury Guarantee Program expired without renewal.
<page>
- --------------------------------------------------------------------------------
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.
<page>
- --------------------------------------------------------------------------------
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 Mellon
2 Hanson Place, 7th Floor,
Brooklyn, New York 11217
Transfer Agent &
Dividend Disbursing Agent
Reich & Tang Services, Inc.
600 Fifth Avenue
New York, New York 10020
DIF 9/09S
Item 2: Code of Ethics
Not Applicable (disclosure required in annual report on N-CSR only.
Item 3: Audit Committee Financial Expert
Not Applicable (disclosure required in annual report on N-CSR only.
Item 4: Principal Accountant Fees and Services
Not Applicable (disclosure required in annual report on N-CSR only.
Item 5: Audit Committee of Listed Registrants
Not applicable.
Item 6: Schedule of Investments
Schedule of Investments in securities of unaffiliated issuers is included under
Item 1.
Item 7: Disclosure of Proxy Voting Policies and Procedures for Closed-End
Management Investment Companies
Not applicable.
Item 8: Purchases of Equity Securities by Closed-End Management Investment
Company and Affiliated Purchasers
Not applicable.
Item 9: Submission of Matters to a Vote of Security Holders
There were no material changes to the procedures by which shareholders may
recommend nominees to the registrant's board of directors that were implemented
after the registrant last provided disclosure in response to the requirements of
Item 7(d)(2)(ii)(G) of Schedule 14A, or this Item 9.
Item 10: Controls and Procedures
(a) The registrant's Principal Executive Officer and Principal Financial
Officer have evaluated the design and operation of the registrant's
disclosure controls and procedures within 90 days of this filing and have
concluded that the registrant's disclosure controls and procedures were
effective in ensuring that information required to be disclosed by the
registrant in this Form N-CSR was recorded, processed, summarized and
reported on a timely basis.
(b) There were no changes in the registrant's internal controls over financial
reporting that occurred during the second fiscal quarter of the period
covered by this report that have materially affected, or are reasonably
likely to affect, the registrant's internal controls over financial
reporting.
Item 11: Exhibits
(a)(1) Not Applicable (disclosure required in annual report on N-CSR only.
(a)(2) Certifications of Principal Executive Officer and Principal Financial
Officer, under Rule 30a-2 of the Investment Company Act of 1940.
(a)(3) Not applicable.
(b) Certifications of Principal Executive Officer and Principal Financial
Officer, under Section 906 of the Sarbanes-Oxley Act of 2002 and 18
U.S.C. ss.1350.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized. (Registrant)
Daily Income Fund
By (Signature and Title)*/s/ Christine Manna
Christine Manna, Secretary
Date: December 4, 2009
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: December 4, 2009
By (Signature and Title)*/s/ Joseph Jerkovich
Joseph Jerkovich, Treasurer and Assistant Secretary
Date: December 4, 2009
* Print the name and title of each signing officer under his or her signature.