As filed with the Securities and Exchange Commission on June 3, 2004
Investment Company Act file number811-8312
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF
REGISTERED MANAGEMENT INVESTMENT COMPANIES
Institutional Daily Income Fund
(Exact name of registrant as specified in charter)
600 Fifth Avenue
New York, NY 10020
(Address of principal executive offices) (Zip code)
Rosanne Holtzer
c/o Reich & Tang Asset Management, LLC
600 Fifth Avenue
New York, New York 10020
(Name and address of agent for service)
Registrant's telephone number, including area code: 212-830-5200
Date of fiscal year end: 3/31
------
Date of reporting period: 3/31/04
--------
Item 1: Report to Stockholders
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INSTITUTIONAL 600 Fifth Avenue, New York, NY 10020
DAILY INCOME FUND 212-830-5200
================================================================================
Dear Shareholder:
We are pleased to present the annual report of Institutional Daily Income Fund
for the year ended March 31, 2004.
The Fund's Money Market Portfolio had 498 shareholders and net assets of
$340,040,974 as of March 31, 2004. The U.S. Treasury Portfolio had 231
shareholders and net assets of $757,224,038 as of March 31, 2004.
Effective June 1, 2004, the Fund's portfolio holdings will be available
periodically on our website at http://www.money-funds.com/portfolioholdings or
toll free at (800) 433-1918. The posting of the schedule of portfolio holdings
will be delayed at least 5 days after the date of the schedule. The Fund may
terminate or modify this policy at any time without further notice to
shareholders.
We thank you for your support and look forward to continuing to serve your cash
management needs.
Sincerely,
\s\Steven W. Duff
Steven W. Duff
President
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INSTITUTIONAL DAILY INCOME FUND
MONEY MARKET PORTFOLIO
STATEMENT OF NET ASSETS
MARCH 31, 2004
================================================================================
Face Maturity Value
Amount Date Yield (Note 1)
------ ---- ----- ------
Asset Backed Commercial Paper (10.28%)
- ------------------------------------------------------------------------------------------------------------------------------------
<s> <c> <c> <c> <c>
$ 15,000,000 Clipper Receivables Corporation 04/01/04 1.05% $ 15,000,000
5,000,000 Fountain Square Commercial Funding 05/20/04 1.04 4,992,922
15,000,000 Market Street Funding 06/25/04 1.03 14,963,521
- -------------- --------------
35,000,000 Total Commercial Paper 34,956,443
- -------------- --------------
Commercial Paper (5.87%)
- ------------------------------------------------------------------------------------------------------------------------------------
$ 10,000,000 General Electric Capital Corporation 06/02/04 1.16% $ 9,980,194
10,000,000 Societe Generale North America 05/04/04 1.05 9,990,421
- -------------- --------------
20,000,000 Total Commercial Paper 19,970,615
- -------------- --------------
Floating Rate Securities (12.86%)
- ------------------------------------------------------------------------------------------------------------------------------------
$ 10,000,000 Bank of America (a) 01/28/05 1.05% $ 10,000,000
5,000,000 Caterpillar Financial Services Company (b) 07/09/04 1.24 5,000,000
7,245,000 CFM International Inc. Guaranteed Notes - Series 1999A (c)
LOC General Electric Company 01/01/10 1.15 7,245,000
15,000,000 Equitable Life Assurance Society with J.P. Morgan Chase (d) 03/21/05 1.11 15,000,000
2,500,000 Erie County, NY IDA RB
(Niagara-Maryland LLC Project) - Series 2003 (e)
LOC Manufacturers and Traders Bank and Trust Co. 06/01/23 1.18 2,500,000
4,000,000 The Goldman Sachs Group, L.P. (f) 04/12/05 1.37 4,000,000
- -------------- --------------
43,745,000 Total Floating Rate Securities 43,745,000
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Foreign Commercial Paper (12.61%)
- ------------------------------------------------------------------------------------------------------------------------------------
$ 15,000,000 Alliance & Leicester PLC 07/15/04 1.09% $ 14,952,969
7,000,000 Banco Bilbao Vizcaya Argentaria S.A. 04/02/04 1.12 6,999,784
1,000,000 Banco Bilbao Vizcaya Argentaria S.A. 04/06/04 1.12 999,846
10,000,000 Danske Corporation 07/09/04 1.09 9,970,300
5,000,000 Danske Corporation 11/19/04 1.16 4,962,944
5,000,000 National Bank of New Zealand 08/03/04 1.09 4,981,314
- -------------- --------------
43,000,000 Total Foreign Commercial Paper 42,867,157
- -------------- --------------
Letter of Credit Commercial Paper (14.69%)
- ------------------------------------------------------------------------------------------------------------------------------------
$ 10,000,000 Banco Continental de Panama S.A.
LOC Credit Lyonnais 06/01/04 1.05% $ 9,982,208
15,000,000 Banco Cuscatlan S.A.
LOC ING Bank NV 04/05/04 1.08 14,998,200
15,000,000 Banco Rio de La Plata S.A.
LOC Banco Santander 06/22/04 1.05 14,964,125
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The acompanying notes are an integral part of these financial statements.
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================================================================================
Face Maturity Value
Amount Date Yield (Note 1)
------ ---- ----- ------
Letter of Credit Commercial Paper (Continued)
- ------------------------------------------------------------------------------------------------------------------------------------
<s> <c> <c> <c> <c>
$ 10,000,000 Cemex S.A. de C.V.
LOC Barclays Bank PLC 04/07/04 1.04% $ 9,998,267
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50,000,000 Total Letter of Credit Commercial Paper 49,942,800
- -------------- --------------
Other Notes (1.47%)
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$ 1,000,000 Hamilton, WI School District TAN 10/27/04 1.35% $ 1,000,000
2,500,000 State of New York GO - Series 2000C
LOC Dexia CLF 08/05/04 1.40 2,500,000
1,505,000 Viroqua, WI Area School District TAN 10/27/04 1.63 1,505,000
- -------------- --------------
5,005,000 Total Other Notes 5,005,000
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Repurchase Agreement (8.82%)
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$ 30,000,000 J.P. Morgan Securities Inc., Repurchase proceeds at maturity
$30,000,825 (Collateralized by $34,383,828, GNMA,
3.000% to 6.000%, due 04/20/32 to 03/15/34, value $30,603,304) 04/01/04 0.99% $ 30,000,000
- -------------- --------------
30,000,000 Total Repurchase Agreement 30,000,000
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U.S. Government Agency Discount Note (2.92%)
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$ 10,000,000 Federal Home Loan Mortgage Corporation 11/04/04 1.41% $ 9,916,214
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10,000,000 Total U.S. Government Agency Discount Note 9,916,214
- -------------- --------------
U.S. Government Agency Medium Term Note (4.41%)
- ------------------------------------------------------------------------------------------------------------------------------------
$ 15,000,000 Federal National Mortgage Association 12/08/04 1.62% $ 15,000,000
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15,000,000 Total U.S. Government Agency Medium Term Note 15,000,000
- -------------- --------------
Variable Rate Demand Instruments (g) (17.54%)
- ------------------------------------------------------------------------------------------------------------------------------------
$ 1,790,000 American Micro Products
LOC Firstar Bank 10/01/08 1.16% $ 1,790,000
1,890,000 Atlas Metal Investment Corporation
LOC Fifth Third Bank 10/01/20 1.12 1,890,000
885,000 Automated Packaging Systems
LOC National City Bank of Michigan/Illinois 10/01/08 1.19 885,000
1,010,000 Big Brothers Big Sisters
LOC Fifth Third Bank 12/01/20 1.12 1,010,000
3,750,000 Briarwood Investments, LLC
Collateralized by Federal Home Loan Bank 04/01/23 1.16 3,750,000
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The acompanying notes are an integral part of these financial statements.
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INSTITUTIONAL DAILY INCOME FUND
MONEY MARKET PORTFOLIO
STATEMENT OF NET ASSETS (CONTINUED)
MARCH 31, 2004
================================================================================
Face Maturity Value
Amount Date Yield (Note 1)
------ ---- ----- ------
Variable Rate Demand Instruments (g) (Continued)
- ------------------------------------------------------------------------------------------------------------------------------------
<s> <c> <c> <c> <c>
$ 465,000 City of Colorado Springs Adjustable Rate
Taxable/Convertible Bonds (Goodwill Industries) - Series 1997B
LOC Bank One 02/01/07 1.15% $ 465,000
1,600,000 CJ Krehbiel Co.
LOC Fifth Third Bank 10/01/10 1.12 1,600,000
2,735,000 D.E.D.E. Realty
LOC Fifth Third Bank 12/01/11 1.12 2,735,000
2,270,000 Delta Capital LLC - Series 96-B
LOC Huntington National Bank 10/01/26 1.18 2,270,000
1,195,000 Dickenson Press, Inc. - Series 1997
LOC Huntington National Bank 01/01/27 1.18 1,195,000
1,365,000 First Metropolitan Title Company
LOC LaSalle National Bank 05/01/24 1.18 1,365,000
1,690,000 Frank J.Catanzaro Sons and Daughters
LOC Firstar Bank 01/01/15 1.16 1,690,000
2,890,000 Governor's Village LLC
LOC Fifth Third Bank 03/01/20 1.12 2,890,000
4,005,000 Hunter's Square, Inc. Project - Series 1998
LOC National City Bank of Michigan/Illinois 10/01/16 1.16 4,005,000
3,300,000 JPV Capital LLC
LOC ABN AMRO Bank N.A. 12/01/39 1.16 3,300,000
575,000 JRB Corporation Demand Note
LOC Fifth Third Bank 07/01/26 1.18 575,000
1,900,000 Kissel Holdings LLC
LOC Firstar Bank 12/01/20 1.16 1,900,000
660,000 Labelle Capital Funding - Series A
LOC National City Bank of Michigan / Illinois 09/01/26 1.13 660,000
2,000,000 Lauren Company, LLC - Series 2003
LOC Wells Fargo Bank, N.A. 07/01/33 1.15 2,000,000
570,000 LRV Enterprises, LLC
LOC First of America 09/01/21 1.21 570,000
1,800,000 Mayfair Village Retirement Center, Inc., KY
(Variable Rate Term Notes) - Series 1995
LOC PNC Bank, N.A. 05/15/09 1.15 1,800,000
830,000 Mississippi Business Finance Corporation IDRB
(Abtco, Inc. Project) - Series 1997B
LOC Bank One 06/01/10 1.10 830,000
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The acompanying notes are an integral part of these financial statements.
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================================================================================
Face Maturity Value
Amount Date Yield (Note 1)
------ ---- ----- ------
Variable Rate Demand Instruments (g) (Continued)
- ------------------------------------------------------------------------------------------------------------------------------------
<s> <c> <c> <c> <c>
$ 3,650,000 Mississippi Business Finance Corporation IDRB
(Abtco, Inc. Project) - Series 1997B
LOC First Union National Bank 04/01/22 1.16% $ 3,650,000
2,640,000 Mt. Caramel West Medical Office Building
LOC National City Bank of Michigan/Illinois 08/01/19 1.16 2,640,000
1,800,000 Pennsylvania EDFA Taxable Development RB
(West 914 Incorporation Project) - Series 1991A
LOC PNC Bank, N.A. 05/01/21 1.15 1,800,000
1,090,000 Shepherd Capital, LLC
LOC First of America 09/15/47 1.21 1,090,000
3,165,000 St. Ann's Medical Office Building
LOC National City Bank of Michigan/Illinois 11/01/19 1.16 3,165,000
1,670,000 Trendway Corporation
LOC ABN AMRO Bank N.A. 12/01/26 1.18 1,670,000
4,352,000 Washington State HFC (h)
LOC Wells Fargo Bank, N.A. 01/01/30 1.12 4,352,000
2,100,000 Wholesome Group
LOC Fifth Third Bank 10/01/20 1.12 2,100,000
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59,642,000 Total Variable Rate Demand Instruments 59,642,000
- -------------- --------------
Yankee Certificates of Deposit (8.24%)
- ------------------------------------------------------------------------------------------------------------------------------------
$ 5,000,000 Credit Agricole Indosuez 09/29/04 1.09% $ 5,001,121
8,000,000 Societe Generale 05/21/04 1.14 8,000,413
15,000,000 Toronto Dominion Bank 09/30/04 1.08 15,003,382
- -------------- --------------
28,000,000 Total Yankee Certificates of Deposit 28,004,916
- -------------- --------------
Total Investments (99.71%) (Cost $339,050,145+) 339,050,145
Cash and other assets, net of liabilities (0.29%) 990,829
--------------
Net Assets (100.00%) $ 340,040,974
==============
Net Asset Value, offering and redemption price per share:
Class A Shares, 53,372,928 shares outstanding (Note 3) $ 1.00
==============
Class B Shares, 163,829,358 shares outstanding (Note 3) $ 1.00
==============
Pinnacle Shares, 122,838,846 shares outstanding (Note 3) $ 1.00
==============
<FN>
+ Aggregate cost for federal income tax purposes is identical.
</FN>
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The acompanying notes are an integral part of these financial statements.
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INSTITUTIONAL DAILY INCOME FUND
MONEY MARKET PORTFOLIO
STATEMENT OF NET ASSETS (CONTINUED)
MARCH 31, 2004
================================================================================
FOOTNOTES:
(a) The interest rate is adjusted daily based upon Prime minus 2.95%.
(b) The interest rate is adjusted quarterly based upon three month LIBOR plus
0.10%.
(c) The interest rate is adjusted weekly based upon average of prior week one
month LIBOR plus 0.05%; weekly put at par.
(d) The interest rate is adjusted monthly based upon one month LIBOR plus
0.02%.
(e) Securities payable on demand at par including accrued interest (with seven
days' notice). Interest rate is adjusted weekly based upon one month LIBOR
plus 0.25%.
(f) The interest rate is adjusted quarterly based upon three month LIBOR plus
0.25%.
(g) Securities payable on demand at par including accrued interest (with seven
days' notice). Interest rate is adjusted weekly.
(h) Securities payable on demand at par including accrued interest (with one
day notice). Interest rate is adjusted daily.
KEY:
EDFA = Economic Development Finance Authority IDRB = Industrial Development Revenue Bond
GNMA = Government National Mortgage Association LOC = Letter of Credit
GO = General Obligation RB = Revenue Bond
HFC = Housing Finance Commission TAN = Tax Anticipation Note
IDA = Industrial Development Authority
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The acompanying notes are an integral part of these financial statements.
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INSTITUTIONAL DAILY INCOME FUND
U.S. TREASURY PORTFOLIO
STATEMENT OF NET ASSETS
MARCH 31, 2004
================================================================================
Face Maturity Value
Amount Date Yield (Note 1)
------ ---- ----- ------
Repurchase Agreements (47.80%)
- ------------------------------------------------------------------------------------------------------------------------------------
<s> <c> <c> <c> <c>
$ 60,000,000 Bank of America, Repurchase proceeds at maturity $60,001,583
(Collateralized by $61,124,000, U.S. Treasury Notes, 1.125%,
due 06/30/05, value $61,200,558) 04/01/04 0.95% $ 60,000,000
110,000,000 Bear Stearns & Co., Repurchase proceeds at maturity $110,003,178
(Collateralized by $198,675,343, GNMA, 4.375% to 8.500%,
due 04/15/18 to 03/20/34, value $112,200,143) 04/01/04 1.04 110,000,000
77,000,000 J.P. Morgan Securities, Inc., Repurchase proceeds at maturity
$77,002,096 (Collateralized by $77,695,000,
U.S. Treasury Notes, 1.875%, due 12/31/05, value $78,544,785) 04/01/04 0.98 77,000,000
115,000,000 UBS Paine Webber, Repurchase proceeds at maturity $115,003,163
(Collateralized by $115,850,000, U.S. Treasury Notes,
4.000%, due 02/15/14, value $117,302,205) 04/01/04 0.99 115,000,000
- -------------- --------------
362,000,000 Total Repurchase Agreements 362,000,000
- -------------- --------------
U.S. Government Obligations (51.77%)
- ------------------------------------------------------------------------------------------------------------------------------------
$ 215,000,000 U.S. Treasury Bills 04/01/04 0.90% $ 215,000,000
25,000,000 U.S. Treasury Notes, 3.375% 04/30/04 1.26 25,041,180
25,000,000 U.S. Treasury Notes, 3.250% 05/31/04 1.18 25,083,401
50,000,000 U.S. Treasury Notes, 2.875% 06/30/04 1.07 50,224,414
10,000,000 U.S. Treasury Notes, 6.000% 08/15/04 1.07 10,181,108
50,000,000 U.S. Treasury Notes, 5.875% 11/15/04 1.10 51,429,406
15,000,000 U.S. Treasury Notes, 1.500% 02/28/05 1.21 15,037,294
- -------------- --------------
390,000,000 Total U.S. Government Obligations 391,996,803
- -------------- --------------
Total Investments (99.57%) (Cost $753,996,803+) 753,996,803
Cash and other assets, net of liabilities (0.43%) 3,227,235
--------------
Net Assets (100.00%) $ 757,224,038
==============
Net Asset Value, offering and redemption price per share:
Class A Shares, 261,930,743 shares outstanding (Note 3) $ 1.00
==============
Class B Shares, 466,041,015 shares outstanding (Note 3) $ 1.00
==============
Pinnacle Shares, 29,252,280 shares outstanding (Note 3) $ 1.00
==============
<FN>
+ Aggregate cost for federal income tax purposes is identical.
KEY:
GNMA = Government National Mortgage Association
</FN>
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The acompanying notes are an integral part of these financial statements.
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INSTITUTIONAL DAILY INCOME FUND
STATEMENTS OF OPERATIONS
YEAR ENDED MARCH 31, 2004
================================================================================
Money Market U.S. Treasury
Portfolio Portfolio
------------------ -----------------
INVESTMENT INCOME
Income:
Interest................................................... $ 4,546,337 $ 8,343,202
------------------ -----------------
Expenses: (Note 2)
Investment management fee.................................. 457,906 905,650
Administration fee......................................... 190,794 377,354
Shareholder servicing fee (Class A shares)................. 202,009 565,807
Custodian expenses......................................... 22,068 47,615
Shareholder servicing and related shareholder expenses+.... 45,981 173,060
Legal, compliance and filing fees.......................... 132,061 103,219
Audit and accounting....................................... 126,063 141,859
Trustees' fees and expenses................................ 17,708 14,708
Other...................................................... 19,258 33,640
------------------ -----------------
Total expenses.......................................... 1,213,848 2,362,912
Less: Fees waived (Note 2)............................. ( 228,953) ( 275,806)
Expense paid indirectly (Note 2)................. ( 3,550) ( 11,885)
------------------ ----------------
Net expenses............................................ 981,345 2,075,221
------------------ ----------------
Net investment income.......................................... 3,564,992 6,267,981
REALIZED GAIN (LOSS) ON INVESTMENTS
Net realized (loss) gain on investments........................ ( 158) 632
----------------- -----------------
Increase in net assets from operations......................... $ 3,564,834 $ 6,268,613
================== =================
<FN>
+ Includes class specific transfer agency expenses of $16,148 for Money
Market Portfolio Class A and $45,227, $99,736 and $5,884 for U.S. Treasury
Portfolio Class A, Class B and Pinnacle Shares, respectively.
</FN>
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The acompanying notes are an integral part of these financial statements.
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INSTITUTIONAL DAILY INCOME FUND
STATEMENTS OF CHANGES IN NET ASSETS
YEARS ENDED MARCH 31, 2004 AND 2003
================================================================================
Money Market Portfolio U.S. Treasury Portfolio
------------------------------- -------------------------------
2004 2003 2004 2003
------------- -------------- ------------- -------------
INCREASE (DECREASE)
IN NET ASSETS
Operations:
Net investment income............................... $ 3,564,992 $ 5,538,384 $ 6,267,981 $ 7,945,380
Net realized (loss) gain on investments............. ( 158) 5,746 632 -0-
------------- -------------- ------------- -------------
Increase in net assets from operations.............. 3,564,834 5,544,130 6,268,613 7,945,380
Dividends to shareholders from net investment income:
Class A shares.................................... ( 592,798) ( 1,204,233) ( 1,498,100) ( 3,441,338)
Class B shares.................................... ( 1,747,869) ( 2,147,197) ( 4,504,417) ( 4,151,292)
Pinnacle shares................................... ( 1,224,325) ( 2,186,954) ( 265,464) ( 352,750)
Distribution from realized gains on investments:
Class A shares.................................... -0- ( 1,151) ( 196) -0-
Class B shares.................................... -0- ( 2,047) ( 414) -0-
Pinnacle shares................................... -0- ( 2,090) ( 22) -0-
Capital share transactions (Note 3):
Class A shares.................................... ( 60,964,473) 46,877,884 ( 14,243,411) 22,225,808
Class B shares.................................... 30,992,492 9,569,912 82,364,442 34,975,821
Pinnacle shares................................... ( 7,295,664) ( 23,047,632) 3,725,861 7,655,457
------------ -------------- ------------- -------------
Total (decrease) increase......................... ( 37,267,803) 33,400,622 71,846,892 64,857,086
Net assets:
Beginning of year................................. 377,308,777 343,908,155 685,377,146 620,520,060
------------- -------------- ------------- -------------
End of year....................................... $ 340,040,974 $ 377,308,777 $ 757,224,038 $ 685,377,146
============= ============== ============= =============
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The acompanying notes are an integral part of these financial statements.
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INSTITUTIONAL DAILY INCOME FUND
NOTES TO FINANCIAL STATEMENTS
================================================================================
1. Summary of Accounting Policies
Institutional Daily Income Fund (the "Fund") is a no-load, diversified, open-end
management investment company registered under the Investment Company Act of
1940. The Fund offers investors three managed portfolios of money market
instruments: U.S. Treasury Portfolio, Money Market Portfolio and Municipal
Portfolio. Presently only the Money Market Portfolio and U.S. Treasury Portfolio
have been activated. The Money Market and U.S. Treasury Portfolios each have
three classes of stock authorized, Class A, Class B and Pinnacle shares. The
Class A shares of each Portfolio are subject to a service fee pursuant to each
Portfolio's distribution and service plan. The Class B and Pinnacle shares are
not subject to a service fee. Additionally, each Portfolio may allocate among
its classes certain expenses, to the extent allowable to specific classes,
including transfer agent fees, government registration fees, certain printing
and postage costs, and administrative and legal expenses. Class specific
expenses of the Fund were limited to shareholder servicing fees and transfer
agent expenses. In all other respects, all share classes represent the same
interest in the income and assets of each respective Portfolio. The distribution
of the Pinnacle shares commenced on July 29, 1999.
The Fund's financial statements are prepared in accordance with accounting
principles generally accepted in the United States of America for investment
companies as follows:
a) Valuation of Securities -
Investments are valued at amortized cost. Under this valuation method, a
portfolio instrument is valued at cost and any discount or premium is
amortized on a constant basis to the maturity of the instrument.
b) Federal Income Taxes -
It is the policy of each Portfolio to comply with the requirements of the
Internal Revenue Code applicable to regulated investment companies and to
distribute all of its taxable income to its shareholders. Therefore, no
provision for federal income tax is required.
c) Dividends and Distributions -
Dividends from investment income (including net realized short-term capital
gains) are declared daily, paid monthly and taxable as ordinary income.
Capital gains distributions if any, will be made at least annually and in
no event later than sixty days after the end of the Fund's fiscal year.
d) Use of Estimates -
The preparation of financial statements in conformity with accounting
principles generally accepted in the United States of America requires
management to make estimates and assumptions that affect the reported
amounts of assets and liabilities and disclosure of contingent assets and
liabilities at the date of the financial statements and the reported
amounts of increases and decreases in net assets from operations during the
reporting period. Actual results could differ from those estimates.
e) General -
Securities transactions are recorded on a trade date basis. Interest
income, including accretion of discount and amortization of premium, is
accrued as earned. Realized gains and losses from securities transactions
are recorded on the identified cost basis. It is the Fund's policy to take
possession of securities as collateral under repurchase agreements and to
determine on a daily basis that the value of such securities is sufficient
to cover the value of the repurchase agreements.
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- --------------------------------------------------------------------------------
================================================================================
2. Investment Management Fees and Other Transactions with Affiliates
Under the Investment Management Contract, each Portfolio pays an investment
management fee to Reich & Tang Asset Management, LLC (the "Manager") at the
annual rate of .12% of the Portfolio's average daily net assets.
Pursuant to an Administrative Services Contract each Portfolio pays to the
Manager an annual fee of .05% of the Portfolio's average daily net assets.
Pursuant to a Distribution and Service Plan adopted under Securities and
Exchange Commission Rule 12b-1, the Fund and Reich & Tang Distributors, Inc.
(the "Distributor"), an affiliate of the Manager, have entered into a
Distribution Agreement and a Shareholder Servicing Agreement (with respect to
the Class A shares of the Fund only). For its services under the Shareholder
Servicing Agreement, the Distributor receives from each Portfolio a service fee
equal to .25% per annum of each Portfolio's average daily net assets with
respect only to the Class A shares.
For the year ended March 31, 2004, the Manager voluntarily waived the following
fees:
Money Market Portfolio U.S. Treasury Portfolio
---------------------- -----------------------
Investment management fees $ 152,635 $ -0-
Administration fees 76,318 275,806
Fees are paid to Trustees who are unaffiliated with the Manager on the basis of
$5,000 per annum plus $1,000 per meeting attended.
Included in the Statements of Operations under the caption "Shareholder
servicing and related shareholder expenses" are fees of $16,151 and $150,918 for
the Money Market Portfolio and the U.S Treasury Portfolio, respectively, paid to
Reich & Tang Services, Inc., an affiliate of the Manager, as shareholder
servicing agent for the Fund.
For the year ended March 31, 2004, the Funds had the following expense offsets:
Money Market Portfolio U.S. Treasury Portfolio
---------------------- -----------------------
Custodian expenses $ 1,687 $ 10,642
Shareholder servicing
and related shareholder expenses 1,863 1,243
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- --------------------------------------------------------------------------------
INSTITUTIONAL DAILY INCOME FUND
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
================================================================================
3. Transactions in Shares of Beneficial Interest
At March 31, 2004, an unlimited number of shares of beneficial interest was
authorized, and capital paid in for the Money Market Portfolio and the U.S.
Treasury Portfolio amounted to $340,041,132 and $757,224,038, respectively.
Transactions in shares of beneficial interest, all at $1.00 per share, were as
follows:
Money Market Portfolio U.S. Treasury Portfolio
------------------------------------ ------------------------------------
Year Ended Year Ended Year Ended Year Ended
Class A Shares March 31, 2004 March 31, 2003 March 31, 2004 March 31, 2003
- -------------- -------------- -------------- -------------- --------------
Sold................................ 1,087,742,834 849,235,563 934,243,488 789,964,832
Issued on reinvestment of dividends. 588,197 1,186,423 583,381 1,348,489
Redeemed............................ (1,149,295,504) ( 803,544,102) ( 949,070,280) ( 769,087,513)
------------- ------------- ------------- -------------
Net (decrease) increase............. ( 60,964,473) 46,877,884 ( 14,243,411) 22,225,808
============= ============== ============= ==============
Class B Shares
- --------------
Sold................................ 1,639,531,848 787,809,778 1,316,155,744 808,280,872
Issued on reinvestment of dividends. 1,742,954 2,032,859 576,281 915,160
Redeemed............................ (1,610,282,310) ( 780,272,725) (1,234,367,583) ( 774,220,211)
------------- ------------- ------------- -------------
Net increase........................ 30,992,492 9,569,912 82,364,442 34,975,821
============== ============== ============== ==============
Pinnacle Shares
- ---------------
Sold................................ 116,416,428 156,237,214 45,864,052 50,389,640
Issued on reinvestment of dividends. 1,224,255 2,188,836 265,473 352,720
Redeemed............................ ( 124,936,347) ( 181,473,682) ( 42,403,664) ( 43,086,903)
------------- ------------- ------------- -------------
Net (decrease) increase............. ( 7,295,664) ( 23,047,632) 3,725,861 7,655,457
============= ============= ============== ==============
4. Liabilities
At March 31, 2004, the Fund had the following liabilities:
Money Market Portfolio U.S. Treasury Portfolio
---------------------- -----------------------
Fees payable to Affiliates*......... $ 2,236 $ 18,134
Dividends payable................... 20,241 224,561
Accrued other payables.............. 29,601 73,226
-------------- ---------------
Total liabilities................ $ 52,078 $ 315,921
============== ===============
<FN>
* Includes fees payable to Reich & Tang Asset Management, LLC, Reich & Tang
Distributors, Inc. and Reich & Tang Services, Inc.
</FN>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
================================================================================
5. Tax Information
The tax character of all distributions paid by the Portfolios during the years
ended March 31, 2004 and 2003 was ordinary income.
At March 31, 2004, the Money Market Portfolio had unused capital loss
carryforwards of $158, available for Federal income tax purposes to be applied
against future gains, if any. If not applied against future gains, $158 will
expire in the year 2012.
At March 31, 2004, there were no distributable earnings for the Money Market
Portfolio and U.S. Treasury Portfolio.
6. Financial Highlights
Money Market Portfolio
For the Year Ended March 31,
------------------------------------------------------------
Class A Shares 2004 2003 2002 2001 2000
- -------------- --------- --------- -------- --------- ---------
Per Share Operating Performance:
(for a share outstanding throughout the year)
Net asset value, beginning of year...................... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
--------- --------- -------- --------- ---------
Income from investment operations:
Net investment income................................ 0.007 0.013 0.028 0.060 0.051
Net realized and unrealized gain(loss) on investments ( 0.000) 0.000 0.000 0.000 --
--------- --------- -------- --------- ---------
Total from investment operations..................... 0.007 0.013 0.028 0.060 0.051
Less distributions from:
Dividends from net investment income................. ( 0.007) ( 0.013) ( 0.028) ( 0.060) ( 0.051)
Net realized gain on investments..................... -- ( 0.000) ( 0.000) ( 0.000) --
--------- --------- -------- --------- ---------
Total Distributions.................................. ( 0.007) ( 0.013) ( 0.028) ( 0.060) ( 0.051)
--------- --------- -------- --------- ---------
Net asset value, end of year............................ $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
========= ========= ======== ========= =========
Total Return............................................ 0.73% 1.33% 2.85% 6.16% 5.17%
Ratios/Supplemental Data
Net assets, end of year (000)........................... $ 53,373 $ 114,337 $ 67,459 $1,101,858 $ 764,608
Ratios to average net assets:
Expenses(a) (net of fees waived)..................... 0.47% 0.47% 0.45% 0.45% 0.45%
Net investment income................................ 0.73% 1.32% 3.39% 5.96% 5.21%
Management and administration fees waived............ 0.06% 0.06% 0.02% 0.02% 0.03%
Expenses paid indirectly............................. 0.00% 0.00% 0.00% 0.00% 0.00%
<FN>
(a) Includes expenses paid indirectly
</FN>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
INSTITUTIONAL DAILY INCOME FUND
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
================================================================================
6. Financial Highlights (Continued)
Money Market Portfolio
For the Year Ended March 31,
------------------------------------------------------------
Class B Shares 2004 2003 2002 2001 2000
- -------------- --------- --------- -------- --------- ---------
Per Share Operating Performance:
(for a share outstanding throughout the year)
Net asset value, beginning of year...................... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
--------- --------- -------- --------- ---------
Income from investment operations:
Net investment income................................. 0.010 0.016 0.031 0.062 0.053
Net realized and unrealized gain(loss) on investments. ( 0.000) 0.000 0.000 0.000 --
--------- --------- -------- --------- ---------
Total from investment operations...................... 0.010 0.016 0.031 0.062 0.053
Less distributions from:
Dividends from net investment income.................. ( 0.010) ( 0.016) ( 0.031) ( 0.062) ( 0.053)
Net realized gain on investments...................... -- ( 0.000) ( 0.000) ( 0.000) --
--------- --------- -------- --------- ---------
Total Distributions................................... ( 0.010) ( 0.016) ( 0.031) ( 0.062) ( 0.053)
--------- --------- -------- --------- ---------
Net asset value, end of year............................ $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
========= ========= ======== ========= =========
Total Return............................................ 1.00% 1.61% 3.12% 6.42% 5.43%
Ratios/Supplemental Data
Net assets, end of year (000)........................... $ 163,829 $ 132,837 $ 123,267 $ 211,725 $ 354,549
Ratios to average net assets:
Expenses(a) (net of fees waived)...................... 0.20% 0.20% 0.20% 0.20% 0.20%
Net investment income................................. 0.99% 1.60% 3.15% 6.20% 5.36%
Management and administration fees waived............. 0.06% 0.06% 0.02% 0.02% 0.03%
Expenses paid indirectly.............................. 0.00% 0.00% 0.00% 0.00% 0.00%
<FN>
(a) Includes expenses paid indirectly
</FN>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
================================================================================
6. Financial Highlights (Continued)
Money Market Portfolio
For the Year Ended March 31, July 29,1999
------------------------------------------ (Commencement of Sales) to
Pinnacle Shares 2004 2003 2002 2001 March 31, 2000
- --------------- -------- -------- -------- -------- --------------
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
-------- -------- -------- -------- ---------
Income from investment operations:
Net investment income................................. 0.010 0.016 0.031 0.062 0.038
Net realized and unrealized gain(loss) on investments ( 0.000) 0.000 0.000 0.000 --
-------- -------- -------- -------- ---------
Total from investment operations...................... 0.010 0.016 0.031 0.062 0.038
Less distributions from:
Dividends from net investment income.................. ( 0.010) ( 0.016) ( 0.031) ( 0.062) ( 0.038)
Net realized gain on investments...................... -- ( 0.000) ( 0.000) ( 0.000) --
-------- -------- ------- ------- ---------
Total Distributions................................... ( 0.010) ( 0.016) ( 0.031) ( 0.062) ( 0.038)
-------- -------- ------- -------- ---------
Net asset value, end of period.......................... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======== ======== ======== ======== =========
Total Return............................................ 1.00% 1.61% 3.12% 6.42% 3.80%(a)
Ratios/Supplemental Data
Net assets, end of period (000)......................... $ 122,839 $ 130,135 $ 153,182 $ 128,777 $144,632
Ratios to average net assets:
Expenses(c) (net of fees waived)...................... 0.20% 0.20% 0.20% 0.20% 0.20%(b)
Net investment income................................. 0.99% 1.60% 3.15% 6.20% 5.36%(b)
Management and administration fees waived............. 0.06% 0.06% 0.02% 0.02% 0.03%(b)
Expenses paid indirectly.............................. 0.00% 0.00% 0.00% 0.00% 0.00%(b)
<FN>
(a) Not annualized
(b) Annualized
(c) Includes expenses paid indirectly
</FN>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
INSTITUTIONAL DAILY INCOME FUND
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
================================================================================
6. Financial Highlights (Continued)
U.S. Treasury Portfolio
For the Year Ended March 31,
------------------------------------------------------------
Class A Shares 2004 2003 2002 2001 2000
- -------------- --------- --------- -------- --------- ---------
Per Share Operating Performance:
(for a share outstanding throughout the year)
Net asset value, beginning of year...................... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
--------- --------- -------- --------- ---------
Income from investment operations:
Net investment income................................ 0.007 0.013 0.028 0.057 0.048
Net realized and unrealized gain(loss) on investments 0.000 -- -- 0.000 --
--------- --------- -------- --------- ---------
Total from investment operations..................... 0.007 0.013 0.028 0.057 0.048
Less distributions from:
Dividends from net investment income................. ( 0.007) ( 0.013) ( 0.028) ( 0.057) ( 0.048)
Net realized gain on investments..................... ( 0.000) -- -- ( 0.000) --
--------- --------- -------- --------- ---------
Total Distributions.................................. ( 0.007) ( 0.013) ( 0.028) ( 0.057) ( 0.048)
--------- --------- -------- --------- ---------
Net asset value, end of year............................ $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
========= ========= ======== ========= =========
Total Return............................................ 0.66% 1.28% 2.86% 5.88% 4.82%
Ratios/Supplemental Data
Net assets, end of year (000)........................... $ 261,931 $ 276,174 $ 253,948 $ 579,869 $ 658,396
Ratios to average net assets:
Expenses(a) (net of fees waived)..................... 0.45% 0.45% 0.45% 0.46% 0.45%
Net investment income................................ 0.66% 1.28% 3.12% 5.68% 4.73%
Management and administration fees waived............ 0.04% 0.03% 0.02% 0.02% 0.02%
Expenses paid indirectly............................. 0.00% 0.00% 0.00% 0.01% 0.00%
For the Year Ended March 31,
------------------------------------------------------------
Class B Shares 2004 2003 2002 2001 2000
- -------------- --------- --------- -------- --------- ---------
Per Share Operating Performance:
(for a share outstanding throughout the year)
Net asset value, beginning of year...................... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
--------- --------- -------- --------- ---------
Income from investment operations:
Net investment income................................ 0.009 0.015 0.031 0.060 0.050
Net realized and unrealized gain(loss) on investments 0.000 -- -- 0.000 --
--------- --------- -------- --------- ---------
Total from investment operations..................... 0.009 0.015 0.031 0.060 0.050
Less distributions from:
Dividends from net investment income................. ( 0.009) ( 0.015) ( 0.031) ( 0.060) ( 0.050)
Net realized gain on investments..................... ( 0.000) -- -- ( 0.000) --
--------- --------- -------- --------- ---------
Total Distributions.................................. ( 0.009) ( 0.015) ( 0.031) ( 0.060) ( 0.050)
--------- --------- -------- --------- ---------
Net asset value, end of year............................ $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
========= ========= ======== ========= =========
Total Return............................................ 0.91% 1.53% 3.12% 6.14% 5.08%
Ratios/Supplemental Data
Net assets, end of year (000)........................... $ 466,041 $ 383,677 $ 348,701 $ 151,356 $ 37,987
Ratios to average net assets:
Expenses(a) (net of fees waived)..................... 0.20% 0.20% 0.20% 0.21% 0.20%
Net investment income................................ 0.90% 1.51% 2.66% 5.89% 4.97%
Management and administration fees waived............ 0.04% 0.03% 0.02% 0.02% 0.02%
Expenses paid indirectly............................. 0.00% 0.00% 0.00% 0.01% 0.00%
<FN>
(a) Includes expenses paid indirectly
</FN>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
INSTITUTIONAL DAILY INCOME FUND
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
================================================================================
6. Financial Highlights (Continued)
U.S. Treasury Portfolio
For the Year Ended March 31, July 29,1999
------------------------------------------ (Commencement of Sales) to
Pinnacle Shares 2004 2003 2002 2001 March 31, 2000
- --------------- -------- -------- -------- -------- --------------
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
-------- -------- -------- -------- ---------
Income from investment operations:
Net investment income................................. 0.009 0.015 0.031 0.060 0.035
Net realized and unrealized gain(loss) on investments. 0.000 -- -- 0.000 --
-------- -------- ------- -------- ---------
Total from investment operations...................... 0.009 0.015 0.031 0.060 0.035
Less distributions from:
Dividends from net investment income.................. ( 0.009) ( 0.015) ( 0.031) ( 0.060) ( 0.035)
Net realized gain on investments...................... ( 0.000) -- -- ( 0.000) --
-------- -------- ------- -------- ---------
Total Distributions................................... ( 0.009) ( 0.015) ( 0.031) ( 0.060) ( 0.035)
-------- -------- ------- -------- ---------
Net asset value, end of period.......................... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======== ======== ======== ======== =========
Total Return............................................ 0.91% 1.53% 3.12% 6.14% 3.53%(a)
Ratios/Supplemental Data
Net assets, end of period (000)......................... $ 29,252 $ 25,526 $ 17,871 $ 20,724 $ 18,450
Ratios to average net assets:
Expenses(c) (net of fees waived)...................... 0.20% 0.20% 0.20% 0.21% 0.20%(b)
Net investment income................................. 0.90% 1.51% 2.66% 5.89% 4.97%(b)
Management and administration fees waived............. 0.04% 0.03% 0.02% 0.02% 0.02%(b)
Expenses paid indirectly.............................. 0.00% 0.00% 0.00% 0.01% 0.00%(b)
<FN>
(a) Not annualized
(b) Annualized
(c) Includes expenses paid indirectly
</FN>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
INSTITUTIONAL DAILY INCOME FUND
REPORT OF INDEPENDENT AUDITORS
================================================================================
To the Board of Trustees and Shareholders of
Institutional Daily Income Fund
In our opinion, the accompanying statements of net assets and the related
statements of operations and of changes in net assets and the financial
highlights present fairly, in all material respects, the financial position of
the Money Market Portfolio and the U.S. Treasury Portfolio (constituting
Institutional Daily Income Fund, hereafter referred to as the "Fund") at March
31, 2004, the results of each of their operations for the year then ended, the
changes in each of their net assets for each of the two years in the period then
ended and the financial highlights for each of the periods presented, in
conformity with accounting principles generally accepted in the United States of
America. These financial statements and financial highlights (hereafter referred
to as financial statements) are the responsibility of the Fund's management; our
responsibility is to express an opinion on these financial statements based on
our audits. We conducted our audits of these financial statements in accordance
with the standards fo the Public Company Accounting Oversight Board (United
States), which require that we plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements, assessing the
accounting principles used and significant estimates made by management, and
evaluating the overall financial statement presentation. We believe that our
audits, which included confirmation of securities at March 31, 2004 by
correspondence with the custodian and brokers, provide a reasonable basis for
our opinion.
PricewaterhouseCoopers LLP
New York, New York
May 21, 2004
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
INSTITUTIONAL DAILY INCOME FUND
ADDITIONAL INFORMATION
(UNAUDITED)
================================================================================
Trustees and Officers Information
March 31, 2004 1
- ----------------------- ------------- -------------- ------------------------------------- ------------------------ -------------
Name, Address2, Position(s) Term of Principal Occupation(s) Number of Portfolios in Other
and Age Held with Office During Past Fund Complex Directorships
Fund and Length of 5 Years Overseen by Trustee or held by
Time Served3 Officer Director
- ----------------------- ------------- -------------- ------------------------------------- ------------------------ -------------
Disinterested Trustees:
- ----------------------- ------------- -------------- ------------------------------------- ------------------------ -------------
Dr. W. Giles Mellon, Trustee 1994 Professor Emeritus of Business Director/Trustee of N/A
Age 73 Administration in the Graduate nine other portfolios
School of Management, Rutgers
University with which he has been
associated since 1966.
- ----------------------- ------------- -------------- ------------------------------------- ------------------------ -------------
Robert Straniere, Trustee 1994 Owner, Straniere Law Firm since Director/Trustee of WPG Funds
Esq., Age 63 1980, New York State Assemblyman nine other portfolios Group
since 1981 and counsel at Fisher,
Fisher & Berger since 1995.
- ----------------------- ------------- -------------- ------------------------------------- ------------------------ -------------
Dr. Yung Wong, Trustee 1994 Managing Director of Abacus Director/Trustee of N/A
Age 65 Associates, an investment firm, nine other portfolios
since 1996.
- ----------------------- ------------- -------------- ------------------------------------- ------------------------ -------------
Interested Trustees/Officers:
- ----------------------- ------------- -------------- ------------------------------------- ------------------------ -------------
Steven W. Duff, President 1994 Manager and President of Reich & Director/Trustee N/A
Age 50 and Trustee4 Tang Asset Management, LLC and/or Officer of
("RTAM, LLC"), a registered fourteen other
Investment Advisor. portfolios
- ----------------------- ------------- -------------- ------------------------------------- ------------------------ -------------
Richard De Sanctis, Treasurer 1994 Executive Vice President, CFO of Officer of fourteen N/A
Age 47 and RTAM, LLC. other portfolios
Assistant
Secretary
- ----------------------- ------------- -------------- ------------------------------------- ------------------------ -------------
Molly Flewharty, Vice 1994 Senior Vice President of RTAM, Officer of fourteen N/A
Age 53 President LLC. other portfolios
- ----------------------- ------------- -------------- ------------------------------------- ------------------------ -------------
Rosanne Holtzer, Secretary 1998 Senior Vice President of RTAM, Officer of fourteen N/A
Age 39 and LLC. other portfolios
Assistant
Treasurer
- ----------------------- ------------- -------------- ------------------------------------- ------------------------ -------------
Dana E. Messina, Vice 1994 Executive Vice President of RTAM, Officer of eleven N/A
Age 47 President LLC. other portfolios
- ----------------------- ------------- -------------- ------------------------------------- ------------------------ -------------
1 The Statement of Additional Information includes additional information
about Institutional Daily Income Fund (the "Fund") trustees and is
available, without charge, upon request by calling the Fund's transfer
agent at (212) 830-5200.
2 The address for each of the above trustees/officers of the Fund is Reich &
Tang Asset Management, LLC, 600 Fifth Avenue, New York, NY 10020.
3 Each Trustee will hold office for an indefinite term until the earliest of
(i) the next meeting of shareholders, if any, called for the purpose of
considering the election or re-election of such Trustee and until the
election and qualification of his or her successor, if any, elected at such
meeting, or (ii) the date a Trustee resigns or retires, or a Trustee is
removed by the Board of Trustees or shareholders, in accordance with the
Fund's Declaration of Trust, as amended, and Amended and Restated By-Laws.
Each officer will hold office for an indefinite term until the date he or
she resigns or retires or until his/her successor is elected and qualifies.
4 Steven W. Duff is deemed an interested person of the Fund due to his
affiliation with RTAM, LLC, the Fund's investment advisor.
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
INSTITUTIONAL
DAILY
INCOME FUND
Annual Report
March 31, 2004
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
- ------------------------------------------------------
This report is submitted for the general information
of the shareholders of the Fund. It is not
authorized for distribution to prospective investors
in the Fund unless preceded or accompanied by an
effective prospectus, which includes information
regarding the Fund's objectives and policies,
experience of its management, marketability of
shares, and other information.
- ------------------------------------------------------
Institutional Daily Income Fund
600 Fifth Avenue
New York, New York 10020
Manager
Reich & Tang Asset Management, LLC
600 Fifth Avenue
New York, New York 10020
Custodian
The Bank of New York
100 Church Street, 10th Floor
New York, New York 10286
Transfer Agent &
Dividend Disbursing Agent
Reich & Tang Services, Inc.
600 Fifth Avenue
New York, New York 10020
IDI3/04P
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Item 2: Code of Ethics
The registrant has adopted a Code of Ethics applicable to its Principal
Executive and Senior Financial Officers.
Item 3: Audit Committee Financial Expert
The registrant's Board of Trustees has determined that it does not have an audit
committee financial expert serving on its audit committee. The Board believes
that the collective experience of the audit committee members, including their
long-standing service as audit committee members, is sufficient to effectively
carry out the role and obligations of the audit committee. In making its
determination, the Board considered, among other things, the nature of
investment company financials, and the fact that the audit committee is able to
consult with the registrant's independent accountants and to seek outside
advice, as it deems appropriate.
Item 4: Principal Accountant Fees and Services
FYE 03/31/2004 FYE 03/31/2003
4(a) Audit Fees $43,300 $41,200
4(b) Audit Related Fees $0 $0
4(c) Tax Fees $6,000 $6,000
4(d) All Other Fees $0 $0
4(e)(1) The audit committee has adopted pre-approval policies and procedures
whereby the audit committee has pre-approved the provision of certain enumerated
tax services to the registrant by the registrant's principal accountant to the
extent the fee is less than $5,000 per occurrence.
4(e)(2) None.
4(f) Not applicable.
4(g) $6,000 and $20,000, respectively, were the amount of non-audit fees that
were billed by the registrant's accountant for services rendered to (i) the
registrant, and (ii) the registrant's investment adviser and any control person
of the adviser that provides ongoing services to the registrant for the fiscal
year ended March 31, 2004. $6,000 and $17,600, respectively, were the amount of
non-audit fees that were billed by the registrant's accountant for services
rendered to (i) the registrant, and (ii) the registrant's investment adviser and
any control person of the adviser that provides ongoing services to the
registrant for the fiscal year ended March 31, 2003.
4(h) The registrant's audit committee has considered whether its principal
accountant's provision of non-audit services that were rendered to the
registrant's investment adviser, and any control persons of the investment
adviser that provides ongoing services to the registrant, that were not
pre-approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X, is
compatible with maintaining the principal accountant's independence.
Item 5: Audit Committee of Listed Registrants
Not applicable.
Item 6: Schedule of Investments
Schedule of Investments in securities of unaffiliated issuers is included under
Item 1.
Item 7: Disclosure of Proxy Voting Policies and Procedures for Closed-End
Management Investment Companies
Not applicable.
Item 8: Purchases of Equity Securities by Closed-End Management Investment
Company and Affiliated Purchasers
Not applicable.
Item 9: Submission of Matters to a Vote of Security Holders
There were no material changes to the procedures by which shareholders may
recommend nominees to the registrant's board of directors that were implemented
after the registrant last provided disclosure in response to the requirements of
Item 7(d)(2)(ii)(G) of Schedule 14A, or this Item 9.
Item 10: Controls and Procedures
(a) The registrant's Principal Executive Officer and Principal Financial
Officer have evaluated the design and operation of the registrant's
disclosure controls and procedures within 90 days of this filing and
have concluded that the registrant's disclosure controls and procedures
were effective in ensuring that information required to be disclosed by
the registrant in this Form N-CSR was recorded, processed, summarized
and reported on a timely basis.
(b) There were no changes in the registrant's internal controls over
financial reporting that occurred during the registrant's second fiscal
half-year that have materially affected, or are reasonably likely to
affect, the registrant's internal controls over financial reporting.
Item 11: Exhibits
(a)(1) Code of Ethics.
(a)(2) Certifications of Principal Executive Officer and Principal Financial
Officer, under Rule 30a-2 of the Investment Company Act of 1940.
(a)(3) Not applicable.
(b) Certifications of Principal Executive Officer and Principal Financial
Officer, under Section 906 of the Sarbanes-Oxley Act of 2002 and 18
U.S.C. ss.1350.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) Institutional Daily Income Fund
-------------------------------
By (Signature and Title)*/s/Rosanne Holter, Secretary
Rosanne Holtzer, Secretary
Date June 3, 2004
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By (Signature and Title)*/s/Steven W. Duff, President
Steven W. Duff, President
Date June 3, 2004
By (Signature and Title)*/s/Richard De Sanctis, Treasurer
Richard DeSanctis, Treasurer
Date June 3, 2004
* Print the name and title of each signing officer under his or her signature.