As filed with the Securities and Exchange Commission on January 5, 2009
Investment Company Act File Number 811-3955
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF
REGISTERED MANAGEMENT INVESTMENT COMPANIES
NEW YORK DAILY TAX FREE INCOME FUND, INC.
(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: April 30
Date of reporting period: October 31, 2008
ITEM 1: REPORT TO STOCKHOLDERS
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NEW YORK 600 FIFTH AVENUE
DAILY TAX FREE NEW YORK, NY 10020
INCOME FUND, INC. (212) 830-5200
===============================================================================
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.
On October 2, 2008, the Boards of Directors and Trustees of all U.S.-registered
money market funds advised by Reich & Tang Asset Management, LLC approved the
participation of those funds in the U.S. Treasury Department's Temporary
Guarantee Program for Money Market Funds. The Boards took further action on
December 4, 2008, to approve the extension of the participation of those funds
in the U.S. Treasury Department's Temporary Guarantee Program for Money Market
Funds. The extension now provides coverage through April 30, 2009.
The Guarantee Program for U.S.-registered money market funds is a timely and
direct response to our troubled markets, providing stability at a time when
investor confidence has been eroded. The Guarantee Program guarantees
shareholders that they will receive $1.00 for each money market fund share held
at the close of business on September 19, 2008.
Below are the essential aspects of the Guarantee Program:
o the guarantee is based upon the number of shares invested in the fund
at the close of business on September 19, 2008;
o any increase in the number of shares held after the close of business
on September 19, 2008 will not be guaranteed;
o if the number of shares fluctuates over the period, investors will be
covered for either the number of shares held as of the close of
business on September 19, 2008 or the current amount, whichever is
less;
o in the event a customer closes their account with a fund or
broker/dealer, any future investment in the fund will not be
guaranteed;
Reich & Tang 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. Most
recently, we have shortened the average maturities of our portfolios to be able
to react quickly to the changing market conditions, and we will continue to
monitor the markets to ensure that liquidity and safety remain our top
priorities.
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<page>
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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 over 34 years.
Sincerely,
/s/ Michael P. Lydon
Michael P. Lydon
President
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NEW YORK DAILY TAX FREE INCOME FUND, INC.
EXPENSE CHART
FOR THE SIX MONTHS ENDED OCTOBER 31, 2008
(UNAUDITED)
===============================================================================
As a shareholder of the Fund, you incur the following ongoing costs: management
fees and other Fund 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 Fund 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 May 1, 2008 through October 31, 2008.
ACTUAL EXPENSES
The first line of the table below provides information about actual account
values and actual expenses. You may use information in this line, together with
the amount you invested, to estimate the expenses that you paid over the period.
Simply divide your account value by $1,000 (for example, an $8,600 account value
divided by $1,000 = 8.6), then multiply the result by the number in the first
line under the heading entitled "Expenses Paid During the Period" to estimate
the expenses you paid on your account during this period.
HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES
The second line of the table below provides information about hypothetical
account values and hypothetical expenses based on the Fund's actual expense
ratio and an assumed rate of return of 5% per year before expenses, which is not
the Fund's actual return. The hypothetical account values and expenses may not
be used to estimate the actual ending account balance or expenses you paid for
the period. You may use this information to compare the ongoing costs of
investing in the Fund and other funds. To do so, compare this 5% hypothetical
example with the 5% hypothetical examples that appear in the shareholder reports
of the other funds.
Please note that the expenses shown in the table are meant to highlight your
ongoing costs only and do not reflect any transactional costs, such as sales
charges (loads), redemption fees, or exchange fees that you may incur in other
mutual funds. Therefore, the second line of the table is useful in comparing
ongoing costs only, and will not help you determine the relative total costs of
owning different funds.
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Beginning Account Ending Account Value Expenses Paid During Annualized
Class A Shares Value 5/1/08 10/31/08 the Period * Expense Ratio
- -------------------------------------------------------------------------------------------------------------------------
Actual $1,000.00 $1,008.10 $4.40 0.87%
- -------------------------------------------------------------------------------------------------------------------------
Hypothetical (5% return before $1,000.00 $1,020.82 $4.43 0.87%
expenses)
- -------------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------------
Class B Shares Beginning Account Ending Account Value Expenses Paid During Annualized
Value 5/1/08 10/31/08 the Period * Expense Ratio
- -------------------------------------------------------------------------------------------------------------------------
Actual $1,000.00 $1,009.10 $3.34 0.66%
- -------------------------------------------------------------------------------------------------------------------------
Hypothetical (5% return before $1,000.00 $1,021.88 $3.36 0.66%
expenses)
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New York Tax Exempt Liquidity Fund Beginning Account Ending Account Value Expenses Paid During Annualized
("Advantage Shares") Value 5/1/08 10/31/08 the Period * Expense Ratio
- -------------------------------------------------------------------------------------------------------------------------
Actual $1,000.00 $1,007.30 $5.21 1.03%
- -------------------------------------------------------------------------------------------------------------------------
Hypothetical (5% return before $1,000.00 $1,020.01 $5.24 1.03%
expenses)
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<fn>
* Expenses are equal to the Fund's annualized expense ratios multiplied by
the average account value over the period (May 1, 2008 through October 31,
2008), multiplied by 184/365 (to reflect the most recent fiscal half-year).
</fn>
</table>
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NEW YORK DAILY TAX FREE INCOME FUND, INC.
SCHEDULE OF INVESTMENTS
OCTOBER 31, 2008
(UNAUDITED)
===============================================================================
Ratings (a)
----------------
Face Maturity Interest Value Standard
Amount Date Rate (Note 1) Moody's & Poor's
- -------- ---- ---------- -------- ------- --------
Tax Exempt Commercial Paper (0.92%)
- ------------------------------------------------------------------------------------------------------------------------------------
$ 3,000,000 New York State Environmental Quality
LOC Bayerische Landesbank / Landesbank Hessen 12/03/08 1.68% $ 3,000,000 P-1 A-1+
- ----------- -----------
3,000,000 Total Tax Exempt Commercial Paper 3,000,000
- ----------- -----------
Tax Exempt General Obligation Notes & Bonds (26.69%)
- ------------------------------------------------------------------------------------------------------------------------------------
$ 3,000,000 Altmar-Parish-Williamstown CSD Oswego County, NY BAN (b) 07/17/09 2.50% $ 3,010,377
1,465,000 Averill Park CSD Rensselaer County, NY BAN - Series 2008B (b) 06/26/09 2.03 1,471,707
2,800,000 Board of Cooperative Education Services Second Supervisory District
of Monroe and Orleans Counties, NY RAN - Series 2008 (b) 06/26/09 2.25 2,808,886
8,800,000 City of Corning CSD Steuben, Schuyler and Chemung
Counties, NY BAN - Series 2008 (b) 06/26/09 2.14 8,820,113
2,400,000 Cobleskill-Richmondville CSD Schoharie, Otsego and Montgomery
Counties, NY RAN - Series 2008 (b) 06/26/09 2.20 2,404,566
3,465,000 Dansville CSD Livingston County, NY BAN - Series 2008 (b) 06/18/09 2.00 3,475,652
2,000,000 East Bloomfield CSD Ontario County, NY BAN - Series 2008 (b) 06/26/09 2.15 2,004,441
13,750,000 Elmira City School District Chemung County, NY BAN (b) 03/19/09 2.08 13,784,103
2,420,000 Fayetteville-Manlius CSD Onondaga and Madison
Counties, NY TAN - Series 2008 (b) 06/23/09 2.10 2,429,867
2,200,000 Goshen CSD Orange County, NY BAN - Series 2008 (b) 07/24/09 2.00 2,207,827
2,215,664 Guilderland CSD Albany County, NY BAN - Series 2008B (b) 07/23/09 2.00 2,227,443
2,000,000 Island Trees Union Free School District Nassau County, NY
BAN - Series 2008 (b) 06/24/09 2.00 2,006,313
1,983,647 Lakeland CSD of Shrub Oak Westchester County, NY BAN (b) 12/19/08 2.25 1,985,566
2,500,000 Lancaster CSD Erie County, NY BAN - Series 2008 (b) 07/02/09 2.15 2,509,770
2,500,000 Livingston County, NY BAN (b) 02/13/09 1.82 2,506,482
1,656,137 Orchard Park CSD Erie County,NY BAN - Series 2008 07/01/09 2.30 1,663,648 MIG-1
1,600,000 Pawling, NY CSD BAN - Series 2007 (b) 12/12/08 3.00 1,601,303
5,500,000 Pearl River Union Free School District Rockland County, NY TAN (b) 06/30/09 2.30 5,515,950
1,722,329 Poland CSD Herkimer County, NY BAN - Series 2008A (b) 07/24/09 2.15 1,732,733
4,889,749 Randolph CSD Cattaraugus and Chautauqua Counties, NY BAN
- Series 2008A (b) 07/16/09 2.00 4,915,055
3,500,000 Sodus CSD Wayne County, NY BAN - Series 2008 (b) 06/26/09 2.15 3,513,331
2,646,098 Southwestern CSD Chautauqua County, NY BAN - Series 2008B (b) 07/23/09 2.00 2,660,165
3,500,000 Town of Irondequoit, Monroe County, NY BAN - Series 2008 (b) 07/02/09 2.22 3,512,070
- -------------------------------------------------------------------------------
The acompanying notes are an integral part of these financial statements.
- -------------------------------------------------------------------------------
===============================================================================
Ratings (a)
----------------
Face Maturity Interest Value Standard
Amount Date Rate (Note 1) Moody's & Poor's
- -------- ---- ---------- -------- ------- --------
Tax Exempt General Obligation Notes & Bonds (continued)
- ------------------------------------------------------------------------------------------------------------------------------------
$ 1,833,000 Village of Harrison, Westchester County, NY BAN - Series 2008 (b) 03/19/09 2.00% $ 1,836,419
3,000,000 Whitney Point CSD Broome, Chenango, Cortland and Tioga
Counties, NY RAN - Series 2008A (b) 06/30/09 2.10 3,007,746
4,000,000 Yorktown CSD Westchester County, NY BAN - Series 2008 10/01/09 4.25 4,044,214 SP-1+
- ----------- -----------
87,346,624 Total Tax Exempt General Obligation Notes & Bonds 87,655,747
- ----------- -----------
Variable Rate Demand Instruments (c) (72.33%)
- ------------------------------------------------------------------------------------------------------------------------------------
$ 1,410,000 BB & T Municipal Trust Floater Certificates - Series 4000
(Relating to Louisiana Public Facilities Authority Equipment and
Capital Facilities Pooled Loan Program RB - Series 2003A)
LOC Branch Banking And Trust Company 07/01/18 1.90% $ 1,410,000 VMIG-1
5,730,000 Broome County IDA Countinuing Care Retirement Community RB
(Good Shepherd Village at Endwell, Inc. Project) - Series 2008C
LOC Manufactures & Traders Bankers & Trust 07/01/40 1.87 5,730,000 A-1
1,120,000 City of Albany IDA Senior Housing RB
(South Mall Towers Albany, L.P. Project) - Series 2003A (d)
Collateralized by Federal National Mortgage Association 08/15/35 1.60 1,120,000 A-1+
930,000 Clinton County, NY IDA Civic Facility RB (Champlain Valley
Physician's Hospital Medical Center Project) - Series 2007A
LOC KeyBank, N.A. 07/01/42 2.65 930,000 A-1
1,875,000 County of Franklin, NY IDA Civic Facility RB
(Trudeau Institute, Inc. Project) - Series 2000
LOC Bank of America, N.A. 12/01/20 1.40 1,875,000 A-+
2,490,000 County of Monroe, NY IDA RB
(Jada Precision Plastics Co., Inc. Project) - Series 1997 (d)
LOC Bank of America, N.A. 12/01/13 1.65 2,490,000 A-1+
4,165,000 County of Rockland, NY IDA RB (Gussack Realty
Company/Tappan Wire & Cable Project) - Series 2001
LOC RBS Citizens Bank 05/01/22 2.00 4,165,000 VMIG-1
1,400,000 Dutchess County, NY IDA Civic Facility RB
(Marist College Civic Facility) - Series 1998A
LOC JPMorgan Chase Bank, N.A. 07/01/28 1.65 1,400,000 A-1+
1,900,000 Dutchess County, NY IDA Civic Facility RB
(Marist College Civic Facility Project) - Series 2005 A
LOC JPMorgan Chase Bank, N.A. 07/01/35 1.65 1,900,000 A-1+
- -------------------------------------------------------------------------------
The acompanying notes are an integral part of these financial statements.
- -------------------------------------------------------------------------------
NEW YORK DAILY TAX FREE INCOME FUND, INC.
SCHEDULE OF INVESTMENTS (CONTINUED)
OCTOBER 31, 2008
(UNAUDITED)
===============================================================================
Ratings (a)
----------------
Face Maturity Interest Value Standard
Amount Date Rate (Note 1) Moody's & Poor's
- -------- ---- ---------- -------- ------- --------
Variable Rate Demand Instruments (c) (continued)
- ------------------------------------------------------------------------------------------------------------------------------------
$ 5,800,000 Eagle Tax - Exempt Trust - Series 20070157 Class A Certificates
(New York City Municipal Water Finance Authority
Water and Sewer System RB - Fiscal 2006 Series A) 06/15/39 1.83% $ 5,800,000 A-1
11,080,000 Eagle Tax-Exempt Trust - Series 963206
(New York State Urban Development Corporation Project)
Collateralized by U.S. Government Securities 07/01/16 1.85 11,080,000 A-1+
2,830,000 Erie County, NY IDA Civic Facility RB
(Aspire of Western New York, Inc. Project) - Series 2008
LOC KeyBank, N.A. 01/01/18 3.15 2,830,000 P-1 A-1
3,520,000 Erie County, NY IDA Multi-Mode Civic Facility RB
(Child and Family Services of Erie County Project) - Series 2002
LOC KeyBank, N.A. 06/01/22 3.15 3,520,000 P-1 A-1
2,000,000 Erie County, NY IDA (Hauptman-Woodward Project) - Series 2004
LOC KeyBank, N.A. 03/01/24 2.65 2,000,000 P-1 A-1
900,000 Forest City New Rochelle, NY RB Certificate Trust - Series 2003
LOC Wachovia Bank, N.A. 06/01/11 5.40 900,000 VMIG-1
3,575,000 Long Island Power Authority, NY Electric System
Subordinated RB Subseries 2
LOC State Street Bank & Trust Company/Westdeutsche Landesbank 05/01/33 3.10 3,575,000 VMIG-1 A-1+
6,400,000 Metropolitan Transportation Authority, NY
Transportation RB - Series 2005E-1
LOC Fortis Bank 11/01/35 2.50 6,400,000 VMIG-1 A-1+
7,000,000 Metropolitan Transportation Authority, NY
Transportation RB - Series 2008B-1
LOC Scotia Bank 11/01/34 1.65 7,000,000 A-1+
8,125,000 Metropolitan Transportation Authority, NY
Transportation RB - Series 2008B-2
LOC BNP Paribas 11/01/34 1.25 8,125,000 A-1+
2, 250,000 Morgan Stanley Floating Rate Trust Certificates - Series 2006 - 1492
(Dormitory Authority of the State of New York RB
Cabrini of Westchester Project, Series 2006A)
Collateralized by GNMA Securities 02/15/41 3.00 2,250,000 A-1+
4,990,000 Nassau County, NY IDA IDRB
(The Jade Corporation Project) - Series 2007 (d)
LOC Wilmington Trust Company 08/01/32 1.92 4,990,000 VMIG-1
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The acompanying notes are an integral part of these financial statements.
- -------------------------------------------------------------------------------
===============================================================================
Ratings (a)
----------------
Face Maturity Interest Value Standard
Amount Date Rate (Note 1) Moody's & Poor's
- -------- ---- ---------- -------- ------- --------
Variable Rate Demand Instruments (c) (continued)
- ------------------------------------------------------------------------------------------------------------------------------------
$ 1,000,000 New York City, NY Capital Resource Corporation RB
(Loan Enhanced Assistance Program) - Sereis 2006A
LOC Bank of America, N.A. 01/01/26 1.40% $ 1,000,000 VMIG-1
4,575,000 New York City, NY GO - Fiscal 1994, Series A-6
LOC Landesbank Hessen 08/01/19 1.25 4,575,000 VMIG-1 A-1+
170,000 New York City, NY GO - Fiscal 1994 Series A-9
LOC JPMorgan Chase Bank, N.A. 08/01/18 1.70 170,000 VMIG-1 A-1+
1,900,000 New York City, NY GO - Fiscal 1994, Series B-9
LOC JPMorgan Chase Bank, N.A. 08/15/23 1.68 1,900,000 VMIG-1 A-1+
1,000,000 New York City, NY GO - Fiscal 1996, Series J, Subseries J-3
LOC JPMorgan Chase Bank, N.A. 02/15/16 1.68 1,000,000 VMIG-1 A-1+
6,760,000 New York City, NY GO - Fiscal 2004, Series A-3
LOC BNP Paribas 08/01/31 1.68 6,760,000 VMIG-1 A-1+
1,770,000 New York City, NY GO - Fiscal 2004 Series A-6
LOC Landesbank Baden - Wurttemberg 08/01/31 1.65 1,770,000 VMIG-1 A-1+
2,505,000 New York City, NY GO - Fiscal 2004 Series H-2
LOC Bank of New York Mellon 03/01/34 1.36 2,505,000 VMIG-1 A-1+
1,075,000 New York City, NY GO - Fiscal 2006 Series E-3
LOC Bank of America, N.A. 08/01/34 1.74 1,075,000 VMIG-1 A-1+
5,000,000 New York City, NY GO - Fiscal 2006 Series F-3
LOC Royal Bank of Scotland PLC 09/01/35 1.80 5,000,000 VMIG-1 A-1+
1,000,000 New York City, NY HDC Multi-Family Mortgage RB
(West 48th Street Development) - 2001 Series A (d)
Guaranteed by Federal National Mortgage Association 01/15/34 1.50 1,000,000 A-1+
5,300,000 New York City, NY HDC Multi-Family Mortgage RB
(Brookhaven Apartments Project) - Series 2004A (d)
LOC Citibank, N.A. 01/01/36 1.50 5,300,000 A-1+
1,000,000 New York City, NY HDC Multi-Family Mortgage RB
(Beekman Tower) - Series 2008A
LOC Royal Bank of Scotland PLC 03/01/48 1.25 1,000,000 A-1+
1,525,000 New York City, NY HDC Multi-Family Rental Housing RB
(100 Jane Street Development) - Series A
Collateralized by Federal National Mortgage Association 09/15/28 1.50 1,525,000 A-1+
670,000 New York City, NY IDA Civic Facility RB
(Epiphany Community Nursery School Project) - Series 1997
LOC Bank of New York Mellon 05/01/11 2.43 670,000 VMIG-1
- -------------------------------------------------------------------------------
The acompanying notes are an integral part of these financial statements.
- -------------------------------------------------------------------------------
NEW YORK DAILY TAX FREE INCOME FUND, INC.
SCHEDULE OF INVESTMENTS (CONTINUED)
OCTOBER 31, 2008
(UNAUDITED)
===============================================================================
Ratings (a)
----------------
Face Maturity Interest Value Standard
Amount Date Rate (Note 1) Moody's & Poor's
- -------- ---- ---------- -------- ------- --------
Variable Rate Demand Instruments (c) (continued)
- ------------------------------------------------------------------------------------------------------------------------------------
$ 1,800,000 New York City, NY IDA Civic Facility RB
(The Center For Jeweish History Project) - Series 2001
LOC Bank of America, N.A. 09/01/31 1.40% $ 1,800,000 VMIG-1
3,865,000 New York City, NY IDA Civic Facility RB (The Convent of the
Sacred Heart School of New York Project) - Series 2002
LOC Wachovia Bank, N.A. 11/01/32 4.05 3,865,000 VMIG-1
2,105,000 New York City, NY IDA Civic Facility RB
(American Society For Technion Project) - Series 2003
LOC Allied Irish Bank PLC 10/01/33 1.36 2,105,000 VMIG-1
8,095,000 New York City, NY IDA Civic Facility RB
(Jamaica First Parking, LLC Project) - Series 2004
LOC JPMorgan Chase Bank, N.A. 03/01/34 1.80 8,095,000 A-1+
8,300,000 New York City, NY IDA Liberty RB
(FC Hanson Office Associates, LLC Project) - Series 2004
LOC Lloyds PLC 12/01/39 1.65 8,300,000 VMIG-1
5,430,000 New York City, NY Transitional Finance Authority
New York City Recovery Bonds Fiscal 1999 Series A, Subseries A-2 11/15/22 1.95 5,430,000 VMIG-1 A-1+
1,150,000 New York City, NY Transitional Finance Authority
New York City Recovery Bonds Fiscal 2003 Series 1, Subseries 1B 11/01/22 1.95 1,150,000 VMIG-1 A-1+
490,000 New York City, NY Trust for Cultural Resources RB
(The Museum of Broadcasting) - Series 1989
LOC KBC Bank, N.V. 05/01/14 1.45 490,000 VMIG-1 A-1
1,300,000 New York Dormitory Authority RB (Cornell Univeristy)-Series 2000A 07/01/29 1.25 1,300,000 VMIG-1 A-1+
4,700,000 New York State Dormitory Authority RB
(Catholic Health System Obligated Group) - Series 2006C
LOC HSBC Bank US 07/01/22 1.80 4,700,000 VMIG-1
1,850,000 New York State Energy Research & Development Authority
Facilities RB (Consolidated Edison Company of New York, Inc.
Project) - Series 2004 C-2 (d)
LOC Citibank, N.A. 11/01/39 2.00 1,850,000 VMIG-1 A-1+
1,500,000 New York State Energy Research & Development Authority
Facilities RB (Consolidated Edison Company of New York, Inc.
Project) - Series 2004 C-3 (d)
LOC Citibank, N.A. 11/01/39 1.83 1,500,000 VMIG-1 A-1+
- -------------------------------------------------------------------------------
The acompanying notes are an integral part of these financial statements.
- -------------------------------------------------------------------------------
===============================================================================
Ratings (a)
----------------
Face Maturity Interest Value Standard
Amount Date Rate (Note 1) Moody's & Poor's
- -------- ---- ---------- -------- ------- --------
Variable Rate Demand Instruments (c) (continued)
- ------------------------------------------------------------------------------------------------------------------------------------
$ 1,000,000 New York State Energy Research & Development Authority
Electric Facilities RB
(Long Island Lighting Company Project) - Series 1997A (d)
LOC Royal Bank of Scotland PLC 12/01/27 1.80% $ 1,000,000 VMIG-1
7,700,000 New York State Housing Finance Agency Service Contract RB
- Series 2003B
LOC BNP Paribas 03/15/26 1.70 7,700,000 A-1+
2,400,000 New York State Housing Finance Agency RB
(101 West End Avenue Project) - Series 2000A (d)
Guaranteed by Federal National Mortgage Association 05/15/31 1.65 2,400,000 VMIG-1
2,000,000 New York State Housing Finance Agency RB
(125 West 31st Project) - Series 2005A (d)
Guaranteed by Federal National Mortgage Association 05/15/38 1.85 2,000,000 VMIG-1
5,000,000 New York State Housing Finance Agency RB
(350 West 43rd Street Project) - Series 2004A (d)
LOC Landesbank Hessen -Thuringen Girozentrale 11/01/34 1.50 5,000,000 VMIG-1
7,800,000 New York State Housing Finance Agency RB
(Archstone Westbury Apartments Project) - Series 2004A (d)
LOC Bank of America 11/01/36 1.80 7,800,000 VMIG-1
3,900,000 New York State Housing Finance Agency RB
(Capitol Green Apartments Housing) - Series 2006 A (d)
Guaranteed by Federal National Mortgage Association 05/15/36 2.25 3,900,000 VMIG-1
3,750,000 New York State Housing Finance Agency RB
(Kew Gardens Hills Housing Project) - 2006 Series A (d)
Guaranteed by Federal National Mortgage Association 05/15/36 1.50 3,750,000 VMIG-1
2,000,000 New York State Housing Finance Agency RB
(Historic Front Street Project) - Series 2003A
LOC Landesbank Hessen 11/01/36 1.65 2,000,000 VMIG-1
650,000 New York State Housing Finance Agency RB
(Normandie Court I Housing Project) - Series 1991A
LOC Landesbank Hessen 05/15/15 1.40 650,000 VMIG-1 A-1+
4,000,000 New York State Housing Finance Agency RB
(Taconic West 17th Street Project) - 2006 Series A (d)
LOC Landesbank Baden - Wurttemberg 11/01/39 1.50 4,000,000 VMIG-1
5,000,000 New York State Housing Finance Agency RB
(The Victory Housing Project) - 2001 Series A (d)
Guaranteed by Federal Home Loan Mortgage Corporation 11/01/33 1.80 5,000,000 VMIG-1
- -------------------------------------------------------------------------------
The acompanying notes are an integral part of these financial statements.
- -------------------------------------------------------------------------------
NEW YORK DAILY TAX FREE INCOME FUND, INC.
SCHEDULE OF INVESTMENTS (CONTINUED)
OCTOBER 31, 2008
(UNAUDITED)
===============================================================================
Ratings (a)
----------------
Face Maturity Interest Value Standard
Amount Date Rate (Note 1) Moody's & Poor's
- -------- ---- ---------- -------- ------- --------
Variable Rate Demand Instruments (c) (continued)
- ------------------------------------------------------------------------------------------------------------------------------------
$ 5,100,000 New York State Local Government Assistance Corporation - Series 1995D
LOC Societe Generale 04/01/25 1.35% $ 5,100,000 VMIG-1 A-1+
7,495,000 New York State Local Government Assistance Corporation - Series 1995F
LOC Societe Generale 04/01/25 1.75 7,495,000 VMIG-1 A-1+
3,400,000 Newburgh, NY IDA Civil Facility RB (Community Development
Properties Dubois St. II Inc. Project) - Series 2005A
LOC KeyBank, N.A. 10/01/30 3.30 3,400,000 VMIG-1
1,240,000 Onondaga County, NY IDA Civic Facility RB
(YMCA of Greater Syracuse, Inc. Project) - Series 2003A
LOC RBS Citizens, N.A. 11/01/25 2.15 1,240,000 P-1 A-1+
3,730,000 Onondaga County, NY IDA Civic Facility RB
(Ononadaga Community College Housing Development
Corporation Project) - Series 2005A
LOC RBS Citizens, N.A. 12/01/30 1.90 3,730,000 A-1+
3,375,000 Ostego County, NY IDA Civic Facility RB
(Templeton Foundation Project) - Series 2007A
LOC KeyBank, N.A 06/01/27 2.65 3,375,000 P-1 A-1
1,500,000 Town of Riverhead, NY IDA RB
(Altaire Pharmaceuticals, Inc. Facility) - Series 1998 (d)
LOC Bank of New York Mellon 10/01/13 2.10 1,500,000 P-1 A-1+
3,550,000 Schenectady County, NY IDA Multi-Mode Civic Facility RB
(Sunnyview Hospital and Rehabilitation Center Project) - Series 2003A
LOC KeyBank, N.A. 08/01/33 2.65 3,550,000 VMIG-1
1,900,000 St. Lawrence County, NY IDA Civic Facility Revenue Refunding RB
(Claxton-Hepburn Medical Center Project) - Series 2006
LOC KeyBank, N.A. 12/01/31 3.30 1,900,000 VMIG-1
4,000,000 Suffolk County, NY IDA Civic Facility RB
(St. Anthony's High School Civic Facility) - Series 2006
LOC KBC Bank, N.V. 12/01/36 1.57 4,000,000 A-1+
1,700,000 Suffolk County, NY IDA Civic Facility RB
(Touro College Project) - Series 2007
LOC JPMorgan Chase Bank, N.A. 06/01/37 1.70 1,700,000 VMIG-1 A-1+
- ----------- -------------
237,515,000 Total Variable Rate Demand Instruments 237,515,000
- ----------- -------------
Total Investments (99.94%) (Amortized cost $328,170,747+) $ 328,170,747
Cash and Other Assets, Net of Liabilities (0.06%) 206,933
-------------
Net Assets (100.00%) $ 328,377,680
=============
<fn>
+ Aggregate cost for federal income taxes is identical. All securities are valued at amortized cost,
and as a result, there is no unrealized appreciation or depreciation.
</fn>
- --------------------------------------------------------------------------------
The acompanying notes are an integral part of these financial statements.
- --------------------------------------------------------------------------------
================================================================================
FOOTNOTES:
(a) 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 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.
(b) 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.
(c) Securities payable on demand at par including accrued interest (usually
with seven days' notice) and, if indicated, 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.
(d) Security subject to alternative minimum tax.
KEY:
BAN = Bond Anticipation Note IDRB = Industrial Development Revenue Bond
CSD = Central School District LOC = Letter of Credit
GNMA = Government National Mortgage Association RAN = Revenue Anticipation Note
GO = General Obligation RB = Revenue Bond
HDC = Housing Development Corporation TAN = Tax Anticipation Notes
IDA = Industrial Development Agency
BREAKDOWN OF PORTFOLIO HOLDINGS BY STATE
-------------------------------------------------------------------------
State Value % of Portfolio
-------------------------------------------------------------------------
Louisiana 1,410,000 0.43%
New York $326,760,747 99.57%
-------------------------------------------------------------------------
Total $328,170,747 100.00%
-------------------------------------------------------------------------
BREAKDOWN OF PORTFOLIO HOLDINGS BY MATURITY DATE
-------------------------------------------------------------------------
State Value % of Portfolio
-------------------------------------------------------------------------
Less than 31 days $237,515,000 72.38%
31 through 60 6,586,869 2.01
61 through 90 -0- 0.00
91 through 120 2,506,482 0.76
121 through 180 15,620,522 4.76
Over 180 days 65,941,874 20.09
-------------------------------------------------------------------------
Total $328,170,747 100.00%
-------------------------------------------------------------------------
- --------------------------------------------------------------------------------
The acompanying notes are an integral part of these financial statements.
- --------------------------------------------------------------------------------
NEW YORK DAILY TAX FREE INCOME FUND, INC.
STATEMENT OF ASSETS AND LIABILITIES
OCTOBER 31, 2008
(UNAUDITED)
================================================================================
ASSETS
Investments in securities, at amortized cost (Note 1)................................ $ 328,170,747
Due from Transfer Agent (Note 2)..................................................... 81,669
Accrued interest receivable.......................................................... 1,924,695
Prepaid expenses .................................................................... 31,111
Other receivables.................................................................... 14,546
---------------
Total assets................................................................... 330,222,768
---------------
LIABILITIES
Payable to affiliates (Note 2)....................................................... 191,133
Due to Custodian..................................................................... 1,349,805
Accrued expenses..................................................................... 161,532
Dividends payable.................................................................... 142,614
Other payable........................................................................ 4
---------------
Total liabilities.............................................................. 1,845,088
---------------
Net assets........................................................................... $ 328,377,680
===============
SOURCE OF NET ASSETS
Net capital paid in on shares of capital stock (Note 5).............................. $ 328,374,247
Accumulated net realized gain........................................................ 3,433
---------------
Net assets........................................................................... $ 328,377,680
===============
<caption>
Net asset value, per share (Note 5):
Class Name Net Assets Shares Outstanding Net Asset Value
Class A Shares.............................. $206,758,312 206,757,214 $1.00
Class B Shares.............................. $11,828,210 11,828,147 $1.00
Advantage Shares............................ $109,791,158 109,790,575 $1.00
- --------------------------------------------------------------------------------
The acompanying notes are an integral part of these financial statements.
- --------------------------------------------------------------------------------
NEW YORK DAILY TAX FREE INCOME FUND, INC.
STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED OCTOBER 31, 2008
(UNAUDITED)
================================================================================
INVESTMENT INCOME
Income:
Interest.................................................................. $ 4,893,800
-----------------
Expenses: (Note 2)
Investment management fee................................................. 605,446
Administration fee........................................................ 423,812
Distribution fee (Advantage Shares)....................................... 273,621
Shareholder servicing fee (Class A)....................................... 142,718
Shareholder servicing fee (Advantage Shares).............................. 256,892
Custodian expenses........................................................ 10,405
Shareholder servicing and related shareholder expenses+................... 107,982
Legal, compliance and filing fees......................................... 60,216
Audit and accounting...................................................... 66,973
Directors' fees and expenses.............................................. 21,069
Other expenses............................................................ 18,425
-----------------
Total expenses........................................................ 1,987,559
Less: Fees Waived ............................................... (162,698)
-----------------
Net expenses ............................................................. 1,824,861
-----------------
Net investment income........................................................ 3,068,939
REALIZED GAIN (LOSS) ON INVESTMENTS
Net realized gain on investments............................................. 9,761
-----------------
Increase in net assets from operations....................................... $ 3,078,700
=================
<fn>
+ Includes class specific transfer agency expenses of $75,246 and $3,959 for Class A and Class B, respectively.
</fn>
</table>
- -------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
- --------------------------------------------------------------------------------
NEW YORK DAILY TAX FREE INCOME FUND, INC.
STATEMENTS OF CHANGES IN NET ASSETS
================================================================================
Six Months Ended Year
October 31, 2008 Ended
(Unaudited) April 30, 2008
---------------- ----------------
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income......................................... $ 3,068,939 $ 9,388,959
Net realized gain (loss) on investments....................... 9,761 1,281
---------------- ----------------
Increase in net assets from operations........................ 3,078,700 9,390,240
Dividends to shareholders from net investment income*:
Class A....................................................... (2,120,340) (5,227,876)
Class B....................................................... (141,719) (698,412)
Victory Shares................................................ -- (1,411,155)
Advantage Shares.............................................. (806,880) (2,051,516)
---------------- ----------------
Total dividends to shareholders............................. (3,068,939) (9,388,959)
Capital share transactions (Note 5):
Class A....................................................... (66,705,829) 54,607,659
Class B....................................................... (4,021,671) (16,748,346)
Victory Shares................................................ -- (60,515,130)
Advantage Shares.............................................. (1,270,916) 38,641,078
---------------- ----------------
Total capital share transactions............................ (71,998,416) 15,985,261
---------------- ----------------
Total increase (decrease)................................. (71,988,655) 15,986,542
Net assets:
Beginning of period........................................... 400,366,335 384,379,793
---------------- ----------------
End of period................................................. $ 328,377,680 $ 400,366,335
================ ================
Undistributed net investment income............................... $ -0- $ -0-
================ ================
<fn>
* Designated as exempt-interest dividends for federal income tax purposes.
</fn>
- -------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
- --------------------------------------------------------------------------------
NEW YORK DAILY TAX FREE INCOME FUND, INC.
NOTES TO FINANCIAL STATEMENTS
(UNAUDITED)
================================================================================
1. Summary of Accounting Policies
New York Daily Tax Free Income Fund, Inc. (the "Fund") is a diversified,
open-end management investment company registered under the Investment Company
Act of 1940 (the "1940 Act"). The Fund is a short-term, tax exempt money market
fund and its objective is to seek as high a level of current income exempt from
federal income tax and, to the extent possible, from New York State and New York
City personal income taxes, as is believed to be consistent with the
preservation of capital, maintenance of liquidity and stability of principal.
The Fund had four classes of stock authorized, Class A, Class B, Victory and
Advantage Shares. The Victory shares were liquidated on April 1, 2008.
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) Federal Income Taxes -
It is the Fund's policy to comply with the requirements of the Internal
Revenue Code applicable to regulated investment companies and to distribute
all of its tax exempt and taxable (if any) income to its shareholders.
Therefore, no provision for federal income tax is required in the financial
statements.
Financial Accounting Standards Board ("FASB") Interpretation No. 48,
Accounting for Uncertainty in Income Taxes, an interpretation of FASB
Statement No. 109 ("FIN 48") requires Management to determine whether a
tax position of the Fund is more likely than not to be sustained upon
examination by the applicable taxing authority, including resolution of any
related appeals or litigation processes, based on the technical merits of
the position. The tax benefit to be recognized is measured as the largest
amount of benefit that is greater than fifty percent likely of being
realized upon ultimate settlement which could result in the Fund recording
a tax liability that would reduce net assets.
d) Dividends and Distributions -
Dividends from net investment income (excluding 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.
- -------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
NEW YORK DAILY TAX FREE INCOME FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
(UNAUDITED)
================================================================================
1. Summary of Accounting Policies (continued)
e) 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.
f) Representations and Indemnifications -
In the normal course of business the Fund enters into contracts that
contain a variety of representations and warranties which provide general
indemnifications. The Fund's maximum exposure under these arrangements is
unknown, as this would involve future claims that may be made against the
Fund that have not yet occurred. However, based on experience, the Fund
expects the risk of loss to be remote.
g) Allocation of Income and Expenses -
The Fund may allocate among its classes certain expenses to the extent
allowable to specific classes, 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 October 31, 2008 and the year ended April 30, 2008
class specific expenses of the Fund were limited to shareholder servicing
fees, distribution fees and transfer agent expenses. Income, expenses
(other than expenses attributable to a specific class), and realized and
unrealized gains or losses on investments were 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 the Fund.
h) Other Risks -
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, health care, transportation and
utilities, conditions in those sectors can affect the overall municipal
securities market and a Fund'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.
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
===============================================================================
2. Investment Management Fees and Other Transactions with Affiliates
Under the Investment Management Contract, the Fund pays an investment management
fee to Reich & Tang Asset Management LLC (the "Manager"), equal to an annual
rate of 0.30% of the Fund's average daily net assets.
Pursuant to an Administrative Services Agreement, the Fund pays to the Manager
an annual fee of 0.21% of the Fund's average daily net assets.
Pursuant to the Fund's Distribution and Service Plans 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 and Advantage Shares of the Fund. For its services under the
Shareholder Servicing Agreement, the Distributor receives from the Fund a fee
based on the average daily net assets of the respective class share equal to
0.20% for Class A Shares 0.25% for Advantage Shares. In addition, for its
services under the Distribution Agreement, the Distributor receives 0.45% per
annum in distribution fees based on the Advantage Shares' average daily net
assets. There were no additional expenses borne by the Fund pursuant to the
Distribution and Service Plan.
As of October 31, 2008, the amounts Payable to affiliates included in the
Statement of Assets and Liabilities are broken down as follows:
<table>
Fee Type Affiliate Amount
-------- --------- ------
<s> <c> <c>
Management fee Manager $ 90,796
Administration fee Manager 63,557
Shareholder servicing fees Distributor 21,029
Distribution fee Distributor 5,448
Transfer Agency fees Reich & Tang Services, Inc.
(the "TA") 10,303
-----------
Total $ 191,133
===========
</table>
For the period ended October 31, 2008 the Distributor voluntarily waived the
following fees:
Distribution fees - Advantage Shares $ 162,698
=========
The Distributor has no right to recoup prior waivers.
Fees are paid to Directors who are unaffiliated with the Manager on the basis of
$7,000 per annum, plus a fee of $1,375 per Board of Directors meeting attended.
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 0.05% of the monthly average net assets of the
Class A and Class B shares of the Fund. The Advantage shares do not participate
in the Transfer Agency Agreement. For the period ended October 31, 2008 these
fees after waivers amounted to:
<table>
Amount %
------ ---
<s> <c> <c>
Class A shares............................. $ 67,844 0.05%
Class B Shares............................. 3,926 0.05%
---------
Total Transfer Agency Fees................. $ 71,770
=========
</table>
- -------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
NEW YORK DAILY TAX FREE INCOME FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
(UNAUDITED)
================================================================================
2. Investment Management Fees and Other Transactions with Affiliates (continued)
The Fund maintain a cash balance with the TA to facilitate the timely processing
of redemptions resulting from checks written by the underlying investors in the
Fund on a daily basis. Interest earned on the cash balance is retained by the TA
to offset the costs incurred by the TA in providing check writing and ACH
capabilities to the Portfolio's shareholders. On October 31, 2008 this cash
balance was $81,669.
As of October 31, 2008, certain Directors and Officers had investments in the
Fund representing less than 0.01% of the Fund.
3. Securities Transactions with Affiliated Funds
The Fund is 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 Directors of the Fund. The procedures have been designed to ensure
that any purchase or sale of securities of the Fund 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 October 31, 2008, the Fund engaged in purchases and
sales with affiliates, none of which resulted in any gains or losses, which
amounted to:
Purchases................................. $47,235,000
Sales..................................... 49,070,000
Gain/(Loss)............................... -0-
4. Compensating Balance Agreement
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 Fund, leave funds or
overdraft funds as a compensating balance in the account so the Bank or the Fund
can be compensated for use of funds based upon the agreed upon formula. At the
end of each quarter 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.
Earnings credit will be offset against the Fund's safekeeping fees which are
included as part of the custodian expenses.
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
================================================================================
5. Capital Stock
At October 31, 2008, 20,000,000,000 shares of $.001 par value stock were
authorized. Transactions in capital stock, all at $1.00 per share, were as
follows:
Six Months Ended Year
October 31, 2008 Ended
(Unaudited) April 30, 2008
---------------- ---------------
Class A Net Assets Shares Net Assets Shares
- ------- ------------- ------------ -------------- -------------
<s> <c> <c> <c> <c>
Sold...................................... $ 537,920,723 537,920,723 $ 1,084,289,751 1,084,289,751
Issued on reinvestment of dividends....... 1,976,130 1,976,130 4,402,508 4,402,508
Redeemed.................................. (606,602,682) (606,602,682) (1,034,084,600) (1,034,084,600)
------------- ------------- -------------- -------------
Net increase (decrease).............. $ (66,705,829) (66,705,829) $ 54,607,659 54,607,659
============= ============= ============== =============
Class B Net Assets Shares Net Assets Shares
- ------- ------------- ------------ -------------- -------------
Sold...................................... $ 42,961,475 42,961,475 $ 81,610,499 81,610,499
Issued on reinvestment of dividends....... 145,918 145,918 727,401 727,401
Redeemed.................................. (47,129,064) (47,129,064) (99,086,246) (99,086,246)
-------------- ------------- -------------- -------------
Net increase (decrease).............. $ (4,021,671) (4,021,671) $ (16,748,346) (16,748,346)
============== ============= ============== =============
Victory Shares Net Assets Shares Net Assets Shares
- -------------- ------------- ------------ -------------- -------------
Sold...................................... $ -0- -0- $ 95,967,144 95,967,144
Issued on reinvestment of dividends....... -0- -0- 1,410,959 1,410,959
Redeemed.................................. -0- -0- (157,893,233) (157,893,233)
-------------- ------------- -------------- -------------
Net increase (decrease).............. $ -0- -0- $ (60,515,130) (60,515,130)
============== ============= ============== =============
Advantage Shares Net Assets Shares Net Assets Shares
- ---------------- ------------- ------------ -------------- -------------
Sold...................................... $ 108,804,802 108,804,802 $ 234,751,597 234,751,597
Issued on reinvestment of dividends....... 794,929 794,929 2,046,062 2,046,062
Redeemed.................................. (110,870,647) (110,870,647) (198,156,581) (198,156,581)
-------------- ------------- -------------- -------------
Net increase (decrease).............. $ (1,270,916) (1,270,916) $ 38,641,078 38,641,078
============== ============= ============== =============
- -------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
NEW YORK DAILY TAX FREE INCOME FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
(UNAUDITED)
================================================================================
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 the Fund'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 carryforwards are 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 April 30, 2008, the Fund had capital loss carryforward available for Federal
income tax purposes as follows:
Capital Loss Expiration of
Remaining Carryforwards
$ 2,302 2014
7. Concentration of Credit Risk
The Fund invests primarily in obligations of political subdivisions of the State
of New York and, accordingly, is subject to the credit risk associated with the
non-performance of such issuers. Approximately 69% of these investments are
further secured, as to principal and interest, by credit enhancements such as
letters of credit, municipal bond insurance, and guarantees issued by financial
institutions. The Fund maintains a policy of monitoring its exposure by
reviewing the credit worthiness of the issuers, as well as that of the financial
institutions issuing the credit enhancements, and by limiting the amount of
holdings with credit enhancements from one financial institution.
8. Fair Value Measurement
The Fund adopted Financial Accounting Standards Board Statement of Financial
Accounting Standards No. 157, "Fair Value Measurements" ("FAS 157") on May 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 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 assets or
liability developed based on the best information available in the
circumstances. The Fund's 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).
- -------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
================================================================================
8. Fair Value Measurement (continued)
The inputs or methodologies used for valuing securities are not necessarily an
indication of the risk associated with investing in those securities.
The following table summarizes the inputs used to value the fund's net assets as
of October 31, 2008:
Valuation Inputs Investment in Securities
---------------- ------------------------
Level 1 - Quoted Prices $ -0-
Level 2 - Other Significant Observable Inputs 328,170,747
Level 3 - Significant Unobservable Inputs -0-
----------------
Total $ 328,170,747
================
9. Temporary Guarantee Program for Money Market Funds
On October 2, 2008, the Board of Directors of the Fund approved the
participation by the Fund in the U.S. Treasury Department's Temporary Guarantee
Program for Money Market Funds through December 18, 2008 (the "Program"). Under
the Program, if the Fund's market value per share drops below $0.995 on any day
while the Program is in effect, shareholders of record on that date who also
held shares in the Fund on September 19, 2008 may be eligible to receive a
payment from the Treasury upon liquidation of the Fund, provided the Fund is
liquidated soon after the day on which the Fund's market value per share drops
below $0.995. The Program requires the Fund to pay the U.S. Department of
Treasury a fee equal to 0.01% based on the number of shares outstanding as of
September 19, 2008. This expense will be borne by the Fund without regard to any
expense limitation currently in effect for the Fund.
On December 4, 2008, the Board of Directors of the Fund approved the extension
of the Fund's participation in the Program. The extension provides coverage
through April 30, 2009.
- -------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
NEW YORK DAILY TAX FREE INCOME FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
(UNAUDITED)
================================================================================
10. Financial Highlights
Six Months Ended Year Ended April 30,
Class A Shares October 31, 2008 --------------------------------------------------------
- --------------- (Unaudited) 2008 2007 2006 2005 2004
--------- ------ ------ ------ ------ ------
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.................... 0.008 0.025 0.027 0.019 0.007 0.002
Net realized and unrealized gain(loss) on investments 0.000 0.000 -- 0.000 -- --
------- ------- ------- ------- ------- ------
Total from investment operations.......... 0.008 0.025 0.027 0.019 0.007 0.002
Less distributions from:
Dividends from net investment income..... (0.008) (0.025) (0.027) (0.019) (0.007) (0.002)
Net realized gains(loss) on investments.. -- -- -- (0.000) -- --
------- ------- ------- ------- ------- ------
Total distributions...................... (0.008) (0.025) (0.027) (0.019) (0.007) (0.002)
------- ------- ------- ------- ------- ------
Net asset value, end of period................. $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======= ======= ======= ======= ======= =======
Total Return................................... 0.81%(a) 2.50% 2.73% 1.93% 0.70% 0.21%
Ratios/Supplemental Data
Net assets, end of period (000's).............. $206,759 $273,458 $218,850 $285,247 $283,134 $296,871
Ratios to average net assets:
Expenses (b)................................ 0.87%(c) 0.86% 0.87% 0.86% 0.86% 0.83%
Net investment income....................... 1.55%(c) 2.44% 2.69% 1.91% 0.70% 0.21%
Expenses offsets............................ -- 0.00% 0.00% 0.00% 0.00% 0.00%
<FN>
(a) Unannualized
(b) Includes expenses offsets, if applicable
(c) Annualized
</FN>
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
===============================================================================
10. Financial Highlights (continued)
Six Months Ended Year Ended April 30,
Class B Shares October 31, 2008 --------------------------------------------------------
- --------------- (Unaudited) 2008 2007 2006 2005 2004
--------- ------ ------ ------ ------ ------
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.................... 0.009 0.027 0.029 0.021 0.009 0.004
Net realized and unrealized gain(loss) on investments 0.000 0.000 -- 0.000 -- --
------- ------- ------- ------- ------- -------
Total from investment operations.......... 0.009 0.027 0.029 0.021 0.009 0.004
Less distributions from:
Dividends from net investment income..... (0.009) (0.027) (0.029) (0.021) (0.009) (0.004)
Net realized gains(loss) on investments.. -- -- -- (0.000) -- --
------- ------- ------- ------- ------- -------
Total distributions...................... (0.009) (0.027) (0.029) (0.021) (0.009) (0.004)
------- ------- ------- ------- ------- -------
Net asset value, end of period................. $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======= ======= ======= ======= ======= =======
Total Return................................... 0.91%(a) 2.71% 2.93% 2.14% 0.90% 0.41%
Ratios/Supplemental Data
Net assets, end of period (000's).............. $11,828 $15,849 $32,597 $33,330 $39,831 $51,411
Ratios to average net assets:
Expenses (b)................................ 0.66%(c) 0.65% 0.68% 0.67% 0.66% 0.63%
Net investment income....................... 1.79%(c) 2.80% 2.90% 2.14% 0.88% 0.40%
Expenses offsets............................ -- 0.00% 0.00% 0.00% 0.00% 0.00%
<FN>
(a) Unannualized
(b) Includes expenses offsets, if applicable
(c) Annualized
</FN>
- -------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
NEW YORK DAILY TAX FREE INCOME FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
(UNAUDITED)
================================================================================
10. Financial Highlights (continued)
Six Months Ended Year Ended April 30,
Advantage Shares October 31, 2008 --------------------------------------------------------
- ----------------- (Unaudited) 2008 2007 2006 2005 2004
--------- ------ ------ ------ ------ ------
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.................... 0.007 0.023 0.025 0.018 0.006 0.001
Net realized and unrealized gain(loss) on investments 0.000 0.000 -- 0.000 -- --
------- ------- ------- ------- ------- -------
Total from investment operations.......... 0.007 0.023 0.025 0.018 0.006 0.001
Less distributions from:
Dividends from net investment income..... (0.007) (0.023) (0.025) (0.018) (0.006) (0.001)
Net realized gains(loss) on investments.. -- -- -- (0.000) -- --
------- ------- ------- ------- ------- -------
Total distributions...................... (0.007) (0.023) (0.025) (0.018) (0.006) (0.001)
------- ------- ------- ------- ------- -------
Net asset value, end of period................. $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======= ======= ======= ======= ======= =======
Total Return................................... 0.73%(a) 2.34% 2.58% 1.79% 0.61% 0.15%
Ratios/Supplemental Data
Net assets, end of period (000)................ $109,791 $111,059 $72,419 $66,680 $71,563 $36,685
Ratios to average net assets:
Expenses (net of fees waived) (b)........... 1.03%(c) 1.02% 1.02% 1.01% 0.95% 0.89%
Net investment income....................... 1.41%(c) 2.26% 2.55% 1.77% 0.63% 0.14%
Expenses offsets............................ -- 0.00% 0.00% 0.00% 0.00% 0.00%
Distribution and shareholder servicing fees waived 0.29%(c) 0.28% 0.30% 0.31% 0.36% 0.39%
<FN>
(a) Unannualized
(b) Includes expenses offsets, if applicable
(c) Annualized
</FN>
- -------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
NEW YORK DAILY TAX FREE INCOME FUND, INC.
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.
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
- ------------------------------------------------------
This report is submitted for the general information
of the shareholders of the Fund. It is not NEW YORK
authorized for distribution to prospective investors DAILY
in the Fund unless preceded or accompanied by an TAX FREE
effective prospectus, which includes information INCOME
regarding the Fund's objectives and policies, FUND, INC
experience of its management, marketability of
shares, and other information.
- ------------------------------------------------------
New York Daily Tax Free Income Fund, Inc.
600 Fifth Avenue
New York, New York 10020
Manager
Reich & Tang Asset Management, LLC
600 Fifth Avenue
New York, New York 10020
Custodian
The Bank of New York
2 Hanson Place, 7th Floor
Brooklyn, New York 11217
Transfer Agent &
Dividend Disbursing Agent
Reich & Tang Services, Inc. Semi-Annual Report
600 Fifth Avenue October 31, 2008
New York, New York 10020 (Unaudited)
Distributor
Reich & Tang Distributor, Inc.
600 Fifth Avenue
New York, New York 10020
NY 10/08S
- -------------------------------------------------------------------------------
ITEM 2: CODE OF ETHICS
Not Applicable.
ITEM 3: AUDIT COMMITTEE FINANCIAL EXPERT
Not Applicable
ITEM 4: PRINCIPAL ACCOUNTANT FEES AND SERVICES
Not Applicable
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 registrants 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)
New York Daily Tax Free Income Fund, Inc.
By (Signature and Title)* /s/ Christine Manna
--------------------
Christine Manna, Secretary
Date: January 5, 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: January 5, 2009
By (Signature and Title)* /s/ Joseph Jerkovich
--------------------
Joseph Jerkovich, Treasurer and Assistant Secretary
Date: January 5, 2009
* Print the name and title of each signing officer under his or her signature.