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New York Daily Tax Free Income Fund announces its plans to liquidate
By Toni Weeks
San Luis Obispo, Calif., Feb. 14 - The board of directors of New York Daily Tax Free Income Fund, Inc. intends to liquidate, dissolve and terminate the legal existence of the fund, according to a 497 filing with the Securities and Exchange Commission.
Shareholder approval is required.
Effective Feb. 11, the fund no longer sells shares to new investors. Current investors, however, may continue to purchase new shares.
In anticipation of the liquidation, the board has directed the fund's investment adviser to manage the fund conservatively with the goal of returning $1.00 per share to each investor. As a result, the fund's yield and performance may be reduced and all or a portion of its dividends no longer tax-exempt, the filing noted.
The board also approved an expense limitation agreement with the fund's investment manager, New York-based Reich & Tang Asset Management, LLC, and its distributor, Reich & Tang Distributors, Inc., to cap class A and class B total fund operating expenses at 0.88% and 0.68%, respectively. The expense limitation agreement may be terminated if shareholder approval is not obtained for the fund's liquidation and dissolution.
The fund seeks 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. To achieve its objective, the fund invests primarily in short-term, high-quality debt obligations of (i) New York and its political subdivisions; (ii) Puerto Rico, Guam and other U.S. territories and their political subdivisions; and (iii) other states.
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