-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, Uwu+GLLFYGvcDAkzr+rPy0kPG0wEQfZz91beCb3sTDa9F2fNdreqQylvSgw0kPk9 fgv+XfizVq06pVe5Eqw8Zw== 0000950123-10-109279.txt : 20101129 0000950123-10-109279.hdr.sgml : 20101129 20101129152949 ACCESSION NUMBER: 0000950123-10-109279 CONFORMED SUBMISSION TYPE: N-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20100930 FILED AS OF DATE: 20101129 DATE AS OF CHANGE: 20101129 EFFECTIVENESS DATE: 20101129 FILER: COMPANY DATA: COMPANY CONFORMED NAME: MORGAN STANLEY TAX FREE DAILY INCOME TRUST CENTRAL INDEX KEY: 0000315812 IRS NUMBER: 133075005 STATE OF INCORPORATION: MA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: N-Q SEC ACT: 1940 Act SEC FILE NUMBER: 811-03031 FILM NUMBER: 101218746 BUSINESS ADDRESS: STREET 1: 522 FIFTH AVENUE CITY: NEW YORK STATE: NY ZIP: 10036 BUSINESS PHONE: (212) 296-6963 MAIL ADDRESS: STREET 1: 522 FIFTH AVENUE CITY: NEW YORK STATE: NY ZIP: 10036 FORMER COMPANY: FORMER CONFORMED NAME: MORGAN STANLEY DEAN WITTER TAX FREE DAILY INCOME TRUST DATE OF NAME CHANGE: 19980622 FORMER COMPANY: FORMER CONFORMED NAME: DEAN WITTER TAX FREE DAILY INCOME TRUST DATE OF NAME CHANGE: 19930616 FORMER COMPANY: FORMER CONFORMED NAME: DEAN WITTER SEARS TAX FREE DAILY INCOME TRUST DATE OF NAME CHANGE: 19930209 0000315812 S000004066 MORGAN STANLEY TAX FREE DAILY INCOME TRUST C000011382 MORGAN STANLEY TAX FREE DAILY INCOME TRUST ITFI N-Q 1 y87856nvq.htm FORM N-Q nvq
 
 
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-Q
QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED
MANAGEMENT INVESTMENT COMPANY
Investment Company Act file number: 811-03031
Morgan Stanley Tax-Free Daily Income Trust
(Exact name of registrant as specified in charter)
     
522 Fifth Avenue, New York, New York   10036
(Address of principal executive offices)   (Zip code)
 
Kevin Klingert
522 Fifth Avenue, New York, New York 10036
(Name and address of agent for service)
Registrant’s telephone number, including area code: 212-296-6963
Date of fiscal year end: December 31, 2010
Date of reporting period: September 30, 2010
 
 
Item 1. Schedule of Investments.
The Fund’s schedule of investments as of the close of the reporting period prepared pursuant to Rule 12-12 of Regulation S-X is as follows:

 

 

Morgan Stanley Tax-Free Daily Income Trust
Portfolio of Investments § September 30, 2010 (unaudited)
                                 
PRINCIPAL                        
AMOUNT IN         COUPON     DEMAND        
THOUSANDS         RATE (a)     DATE (b)     VALUE  
 
       
Short-Term Variable Rate Municipal Obligations (83.2%)
                        
       
Alabama
                        
$ 5,000    
Southeast Alabama Gas District, Supply Ser 2007 A
     0.32 %     10/01/10     $ 5,000,000  
       
 
                        
       
Alaska
                        
  1,000    
Alaska Housing Finance Corporation, Home Mortgage Ser 2009 A
     0.24       10/07/10       1,000,000  
       
 
                        
       
Arizona
                        
  1,000    
Arizona Health Facilities Authority, Banner Health Ser 2008 D ROCs II-R Ser 11687
     0.35       10/07/10       1,000,000  
       
 
                        
       
Colorado
                        
       
City of Colorado Springs
                        
  2,285    
Utilities System Sub Lien Ser 2005 A
     0.28       10/07/10       2,285,000  
  3,000    
Utilities System Sub Lien Ser 2009 C
     0.23       10/07/10       3,000,000  
  3,700    
Westminster Economic Development Authority, Tax Increment Mandalay Gardens Urban Renewal Ser 2009
     0.30       10/07/10       3,700,000  
       
 
                        
       
Delaware
                        
  2,425    
Delaware State Economic Development Authority, Archmere Academy Inc Ser 2006
     0.27       10/07/10       2,425,000  
       
 
                        
       
Florida
                        
       
City of Gainesville
                        
  3,200    
Utilities System 2007 Ser A
     0.23       10/07/10       3,200,000  
  3,000    
Utilities System 2008 Ser B
     0.31       10/07/10       3,000,000  
  1,000    
Florida State Board of Education, Capital Outlay Ser 2005 G ROCs II-R Ser 12017
     0.27       10/07/10       1,000,000  
       
Highlands County Health Facilities Authority
                        
  3,300    
Adventist Health System/Sunbelt Obligated Group Ser 2003 C
     0.25       10/07/10       3,300,000  
  1,000    
Adventist Health System/Sunbelt Obligated Group Ser 2005 I
     0.25       10/07/10       1,000,000  
  1,000    
Adventist Health System/Sunbelt Obligated Group Ser 2006 B-2
     0.25       10/07/10       1,000,000  
  3,000    
Adventist Health System/Sunbelt Obligated Group Ser 2007 A-2
     0.25       10/07/10       3,000,000  
  1,000    
Orange County Health Facilities Authority, Orlando Regional Healthcare System Ser 2008 E
     0.28       10/07/10       1,000,000  
  1,760    
Orlando-Orange County Expressway Authority, Ser 2008 B-3
     0.24       10/07/10       1,760,000  
  1,000    
Pinellas County Health Facilities Authority, Baycare Health System Ser 2009 A-2
     0.27       10/07/10       1,000,000  
       
 
                        
       
Georgia
                        
  1,000    
Main Street Natural Gas Inc., Gas Ser 2010 A
     0.27       10/07/10       1,000,000  
       
 
                        
       
Illinois
                        
  1,600    
County of Cook, Ser 2002 B
     0.29       10/07/10       1,600,000  
  1,675    
Illinois Finance Authority, Advocate Health Care Network Ser 2008 Subser C-2B
     0.25       10/07/10       1,675,000  
       
 
                        
       
Indiana
                        
       
Indiana Finance Authority
                        
  3,590    
Sisters of St Francis Health Services Inc Ser 2008 I
     0.23       10/07/10       3,590,000  
  3,025    
Trinity Health Ser 2008 D-1
     0.24       10/07/10       3,025,000  
  4,540    
Trinity Health Ser 2008 D-2
     0.24       10/07/10       4,540,000  
       
 
                        
       
Iowa
                        
  2,000    
Iowa Higher Education Loan Authority, Grinnell College Ser 2008
     0.26       10/07/10       2,000,000  
       
 
                        
       
Maryland
                        
  1,000    
Maryland Economic Development Corporation, Howard Hughes Medical Institute Ser 2008 A
     0.23       10/07/10       1,000,000  

 

 

Morgan Stanley Tax-Free Daily Income Trust
Portfolio of Investments § September 30, 2010 (unaudited) continued
                                 
PRINCIPAL                        
AMOUNT IN         COUPON     DEMAND        
THOUSANDS         RATE (a)     DATE (b)     VALUE  
 
$ 2,300    
Maryland Health & Higher Educational Facilities Authority, Catholic Health Initiatives Ser 1997 B
     0.27 %     10/07/10     $ 2,300,000  
       
 
                        
       
Massachusetts
                        
  555    
Massachusetts Bay Transportation Authority, Senior Sales Tax Window Ser 2010 A
     0.36       04/28/11       555,000  
  5,535    
Massachusetts Development Finance Agency, Cushing Academy Ser 2004
     0.25       10/07/10       5,535,000  
       
Massachusetts Health & Educational Facilities Authority
                        
  1,000    
Harvard University Ser 2005 C ROCs II-R Ser 10390
     0.27       10/07/10       1,000,000  
  2,000    
Partners HealthCare System Inc 2003 Ser D-2
     0.23       10/07/10       2,000,000  
  6,600    
Massachusetts Water Resources Authority, Gen Ser 2008 F
     0.25       10/07/10       6,600,000  
       
 
                        
       
Michigan
                        
  2,920    
Kent Hospital Finance Authority, Metropolitan Hospital Ser 2005 B
     0.35       10/07/10       2,920,000  
  5,000    
Michigan State Hospital Finance Authority, Ascension Health Senior Credit Group Ser 2010 F-2
     0.24       10/07/10       5,000,000  
  2,000    
University of Michigan, General Ser 2008 B
     0.22       10/07/10       2,000,000  
       
 
                        
       
Missouri
                        
  1,940    
Cape Girardeau County Industrial Development Authority, St Francis Medical Center Ser 2009 B
     0.26       10/07/10       1,940,000  
       
Missouri State Health & Educational Facilities Authority
                        
  2,800    
BJC Health System Ser 2008 E
     0.22       10/07/10       2,800,000  
  2,400    
Sisters of Mercy Health System Ser 2008 E
     0.23       10/07/10       2,400,000  
       
 
                        
       
Nebraska
                        
  7,030    
Central Plains Energy Project, Gas Project No 2 Ser 2009
     0.27       10/07/10       7,030,000  
       
 
                        
       
New Mexico
                        
       
New Mexico Finance Authority
                        
  1,740    
Sub Lien Ser 2008 Subser B-1
     0.25       10/07/10       1,740,000  
  5,900    
Sub Lien Ser 2008 Subser B-2
     0.28       10/07/10       5,900,000  
  1,380    
New Mexico Hospital Equipment Loan Council, Presbyterian Healthcare Services Ser 2008
     0.26       10/07/10       1,380,000  
  3,000    
New Mexico Municipal Energy Acquisition Authority, Gas Supply Ser 2009
     0.27       10/07/10       3,000,000  
       
 
                        
       
New York
                        
  4,000    
Austin Trust, New York City Municipal Water Finance Authority Fiscal 2005 Ser B Custody Receipts Ser 2008-1199 (AGM Insd)
     0.28       10/07/10       4,000,000  
  1,000    
JP Morgan Chase & Co., New York City Municipal Water Finance Authority Ser 2009 EE PUTTERs Ser 3587
     0.27       10/07/10       1,000,000  
  1,000    
New York Liberty Development Corporation, World Trade Center Ser 2009 A
     0.50       01/18/11       1,000,000  
       
 
                        
       
North Carolina
                        
  1,000    
Austin Trust, Charlotte-Mecklenburg Hospital Authority Carolinas Healthcare Ser 2008 A Custody Receipts Ser 2008-1149
     0.29       10/07/10       1,000,000  
  3,000    
North Carolina Capital Facilities Finance Agency, High Point University Ser 2007
     0.27       10/07/10       3,000,000  
       
North Carolina Medical Care Commission
                        
  1,785    
FirstHealth of the Carolinas Ser 2008 A
     0.25       10/07/10       1,785,000  
  1,000    
Novant Health Obligated Group Ser 2004 A
     0.27       10/07/10       1,000,000  
  3,000    
Novant Health Obligated Group Ser 2006 Eagle #20070065 Class A (BHAC Insd)
     0.28       10/07/10       3,000,000  
  2,000    
Novant Health Ser 2008 B
     0.24       10/07/10       2,000,000  
  4,780    
United Church Homes & Services Ser 2007
     0.27       10/07/10       4,780,000  
  3,450    
Piedmont Triad Airport Authority, Ser 2008 A
     0.32       10/07/10       3,450,000  

 

 

Morgan Stanley Tax-Free Daily Income Trust
Portfolio of Investments § September 30, 2010 (unaudited) continued
                                 
PRINCIPAL                        
AMOUNT IN         COUPON     DEMAND        
THOUSANDS         RATE (a)     DATE (b)     VALUE  
 
       
Ohio
                        
$ 1,950    
City of Columbus, Sewer Ser 2008 B
     0.23 %     10/07/10     $ 1,950,000  
       
 
                        
       
Oregon
                        
       
Oregon State Facilities Authority
                        
  2,375    
PeaceHealth Ser 2008 A
     0.25       10/07/10       2,375,000  
  2,900    
PeaceHealth Ser 2008 C
     0.24       10/07/10       2,900,000  
       
 
                        
       
Pennsylvania
                        
  50    
Bucks County Industrial Development Authority, Pennswood Village Ser 2007 A
     0.30       10/07/10       50,000  
  4,355    
Derry Township Industrial & Commercial Development Authority, Hotel Tax Arena Ser 2000 A
     0.28       10/07/10       4,355,000  
  1,000    
RBC Municipal Products Inc Trust, Berks County Municipal Authority Reading Hospital & Medical Center Ser 2008 Floater Certificates Ser C-13
     0.27       10/07/10       1,000,000  
  1,130    
Southcentral General Authority, WellSpan Health Series 2008 A ROCs II-R Ser 11686
     0.28       10/07/10       1,130,000  
       
 
                        
       
South Carolina
                        
  3,260    
City of Columbia, Waterworks & Sewer System Ser 2009
     0.26       10/01/10       3,260,000  
       
South Carolina Jobs-Economic Development Authority
                        
  1,000    
AnMed Health Ser 2009 A
     0.25       10/07/10       1,000,000  
  1,000    
AnMed Health Ser 2009 C
     0.25       10/07/10       1,000,000  
  2,555    
Goodwill Industries Ser 2006
     0.27       10/07/10       2,555,000  
       
 
                        
       
Texas
                        
  3,800    
Austin Trust, Tarrant County Cultural Education Facilities Finance Corp., Texas Health Resources Ser 2007 A Custody Receipts Ser 2007-1031
     0.29       10/07/10       3,800,000  
  4,500    
Dallas Area Rapid Transit, Sales Tax Ser 2008 ROCs II-R Ser 11541
     0.27       10/07/10       4,500,000  
  1,305    
Harris County Cultural Education Facilities Finance Corporation, Methodist Hospital System Ser 2008 C-1
     0.28       10/01/10       1,305,000  
  4,600    
Harris County Health Facilities Development Corporation, Methodist Hospital System Ser 2008 A-2
     0.28       10/01/10       4,600,000  
  1,000    
Harris County Hospital District, Senior Lien Ser 2010
     0.27       10/07/10       1,000,000  
  1,235    
North Central Texas Health Facility Development Corporation, Baylor Health Care System Ser 2006 A
     0.27       10/07/10       1,235,000  
  1,000    
RBC Municipal Products Inc Trust, Houston Combined Utility System First Lien Ser 2010 B Floater Certificates Ser E-14
     0.27       10/07/10       1,000,000  
       
 
                        
       
Utah
                        
  1,565    
Utah Water Finance Agency, Ser 2008 B
     0.27       10/07/10       1,565,000  
       
 
                        
       
Virginia
                        
       
Fairfax County Industrial Development Authority
                        
  1,170    
Inova Health System Foundation Ser 1988 A
     0.27       10/07/10       1,170,000  
  1,950    
Inova Health System Foundation Ser 1998 B
     0.27       10/07/10       1,950,000  
  500    
Inova Health System Window Ser 2020 A-1
     0.39       04/28/11       500,000  
  1,000    
JP Morgan Chase & Co., Fairfax County Industrial Development Authority Inova Health System Foundation Ser 2009 A PUTTERs Ser 3590
     0.27       10/07/10       1,000,000  
       
Norfolk Economic Development Authority
                        
  205    
Sentara Healthcare Window Ser 2010 B
     0.39       04/28/11       205,000  
  250    
Sentara Healthcare Window Ser 2010 C
     0.39       04/28/11       250,000  
       
 
                        
       
Washington
                        
  1,000    
Barclays Capital Municipal Trust Receipts, King County Limited Tax Ser 2009 Floater-TRs Ser 2009 1W (AGC Insd)
     0.28       10/07/10       1,000,000  
  2,170    
County of King, Limited Tax Sewer Ser 2010 A
     0.30       10/07/10       2,170,000  
  4,800    
Energy Northwest, Project 1 Ser 2003 A PUTTERs Ser 2965
     0.27       10/07/10       4,800,000  

 

 

Morgan Stanley Tax-Free Daily Income Trust
Portfolio of Investments § September 30, 2010 (unaudited) continued
                                 
PRINCIPAL                        
AMOUNT IN         COUPON     DEMAND        
THOUSANDS         RATE (a)     DATE (b)     VALUE  
 
       
Wisconsin
                        
$ 1,000    
Barclays Capital Municipal Trust Receipts, Wisconsin Health & Educational Facilities Authority, Children’s Hospital of Wisconsin Ser 2008 B Floater-TRs Ser 15W
     0.28 %     10/07/10     $ 1,000,000  
  1,140    
City of Rhinelander, YMCA of the Northwoods Ser 2006
     0.37       10/07/10       1,140,000  
  995    
Milwaukee Redevelopment Authority, University of Wisconsin-Milwaukee-Kenilworth Ser 2005
     0.27       10/07/10       995,000  
       
Wisconsin Health & Educational Facilities Authority
                        
  3,100    
Concordia University Inc Ser 2009
     0.27       10/07/10       3,100,000  
       
 
                      
       
Total Variable Rate Municipal Obligations (Cost $196,075,000)
                     196,075,000  
       
 
                      
                                         
                            YIELD TO          
PRINCIPAL                         MATURITY          
AMOUNT IN         COUPON     MATURITY     ON DATE OF        
THOUSANDS         RATE     DATE     PURCHASE     VALUE  
 
       
Tax-Exempt Commercial Paper (13.1%)
                                
       
California
                                
  2,500    
San Gabriel Valley Council of Governments, Alameda Corridor East GANs
     0.35 %     10/07/10       0.35 %     2,500,000  
       
 
                                
       
Florida
                                
  2,280    
Jacksonville, Ser A
     0.31       10/07/10       0.31       2,280,000  
       
 
                                
       
Hawaii
                                
  1,000    
Honolulu City & County, Ser 2010 A
     0.26       10/13/10       0.26       1,000,000  
       
 
                                
       
Maryland
                                
  1,000    
Baltimore County, Consolidated Public Improvement Ser 2002 BANs
     0.27       10/21/10       0.27       1,000,000  
       
Montgomery County
                                
  3,000    
2010 Ser B BANs
     0.31       10/14/10       0.31       3,000,000  
  500    
Cons Public Imp BANs 2009 Ser A
     0.30       10/20/10       0.30       500,000  
       
 
                                
       
Minnesota
                                
       
Rochester
                                
  1,000    
Health Care Facilities Mayo Foundation Ser 2000 B
     0.26       10/15/10       0.26       1,000,000  
  1,000    
Health Care Facilities Mayo Foundation Ser 2000 B
     0.30       10/20/10       0.30       1,000,000  
       
 
                                
       
Nebraska
                                
  2,000    
Lincoln, Lincoln Electric System Ser 1995
     0.25       10/08/10       0.25       2,000,000  
  2,700    
Nebraska Public Power District, Ser A Notes
     0.25       10/08/10       0.25       2,700,000  
       
 
                                
       
New York
                                
  5,500    
New York City Municipal Water Finance Authority, Ser 6
     0.27       10/21/10       0.27       5,500,000  
       
 
                                
       
Texas
                                
  1,000    
Austin, Combined Utility Systems Ser 2002A
     0.31       10/14/10       0.31       1,000,000  
       
Harris County Cultural Education Facilities Finance Corporation
                                
  2,000    
Methodist Hospital System Ser 2009 C-1
     0.33       10/05/10       0.33       2,000,000  
  2,000    
Methodist Hospital System Ser 2009 C-1
     0.36       10/20/10       0.36       2,000,000  
  1,000    
San Antonio, Water System Ser 2001 A
     0.27       10/20/10       0.27       1,000,000  
       
Texas Municipal Power Agency
                                
  1,000    
Ser 2005 A
     0.29       10/06/10       0.29       1,000,000  
  1,500    
Ser 2005 A
     0.30       10/06/10       0.30       1,500,000  
       
 
                              
       
Total Tax-Exempt Commercial Paper (Cost $30,980,000)
                             30,980,000  
       
 
                              

 

 

Morgan Stanley Tax-Free Daily Income Trust
Portfolio of Investments § September 30, 2010 (unaudited) continued
                                         
                            YIELD TO          
PRINCIPAL                         MATURITY          
AMOUNT IN         COUPON     MATURITY     ON DATE OF        
THOUSANDS         RATE     DATE     PURCHASE     VALUE  
 
       
Short-Term Municipal Notes and Bonds (3.7%)
                                
       
Georgia
                                
$ 500    
Georgia Municipal Gas Authority, Gas Portfolio III 2010 Ser I, dtd 05/17/10
     2.00 %     05/17/11       0.65 %   $ 504,188  
       
 
                                
       
Ohio
                                
  1,005    
City of Marion, Ser 2009 B BANs, dtd 10/14/09
     1.75       10/13/10       1.25       1,005,163  
  1,000    
Township of Deerfield, Ser 2009 BANs, dtd 11/12/09
     1.50       11/10/10       0.67       1,000,903  
       
 
                                
       
Texas
                                
  5,000    
State of Texas, Ser 2010 TRANs, dtd 08/31/10
     2.00       08/31/11       0.37       5,074,274  
       
 
                                
       
Wisconsin
                                
  1,000    
Wisconsin Rural Water Construction Loan Program, Ser 2009 BANs, dtd 10/27/09
     1.50       11/15/10       0.75       1,000,916  
       
 
                              
       
Total Short-Term Municipal Notes and Bonds (Cost $8,585,444)
                             8,585,444  
       
 
                              
       
Total Investments (Cost $235,640,444) (c)
                     100.0 %     235,640,444  
       
Other Assets in Excess of Liabilities
                     0.0       95,835  
       
 
                            
       
Net Assets
                     100.0 %   $ 235,736,279  
       
 
                            
 
BANs   Bond Anticipation Notes.
 
GANs   Grant Anticipation Notes.
 
PUTTERs   Puttable Tax-Exempt Receipts.
 
ROCs   Reset Option Certificates.
 
TRANs   Tax Revenue Anticipation Notes.
 
(a)   Rate shown is the rate in effect at September 30, 2010.
 
(b)   Date on which the principal amount can be recovered through demand.
 
(c)   Cost is the same for federal income tax purposes.
 
Bond Insurance:
 
AGC   Assured Guaranty Corporation.
 
AGM   Assured Guaranty Municipal Corporation.
 
BHAC   Berkshire Hathaway Assurance Corporation.

 

 

Morgan Stanley Tax-Free Daily Income Trust
Notes to the Portfolio of Investments § September 30, 2010 (unaudited)
Fair Valuation Measurements
Financial Accounting Standards Board Accounting Standards Codification (ASC) 820, Fair Value Measurements and Disclosures (ASC 820) (formerly known as FAS 157), defines fair value as the price that the Fund would receive to sell an investment or pay to transfer a liability in a timely transaction with an independent buyer in the principal market, or in the absence of a principal market the most advantageous market for the investment or liability. ASC 820 establishes a three-tier hierarchy to distinguish between (1) inputs that reflect the assumptions market participants would use in pricing an asset or liability developed based on market data obtained from sources independent of the reporting entity (observable inputs) and (2) inputs that reflect the reporting entity’s own assumptions about the assumptions market participants would use in pricing an asset or liability developed based on the best information available in the circumstances (unobservable inputs) and to establish classification of fair value measurements for disclosure purposes. Various inputs are used in determining the value of the Fund’s investments. The inputs are summarized in the three broad levels listed below.
• Level 1 — unadjusted quoted prices in active markets for identical investments
• Level 2 — other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.)
• Level 3 — significant unobservable inputs including the Fund’s own assumptions in determining the fair value of investments. Factors considered in making this determination may include, but are not limited to, information obtained by contacting the issuer, analysts, or the appropriate stock exchange (for exchange-traded securities), analysis of the issuer’s financial statements or other available documents and, if necessary, available information concerning other securities in similar circumstances
The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities and the determination of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to each security.
The following is a summary of the inputs used as of September 30, 2010 in valuing the Fund’s investments carried at fair value:
                                 
    FAIR VALUE MEASUREMENTS AT SEPTEMBER 30, 2010 USING  
            UNADJUSTED              
            QUOTED PRICES IN              
            ACTIVE MARKET     OTHER        
            FOR     SIGNIFICANT     SIGNIFICANT  
            IDENTICAL     OBSERVABLE     UNOBSERVABLE  
            INVESTMENTS     INPUTS     INPUTS  
INVESTMENT TYPE   TOTAL     (LEVEL 1)     (LEVEL 2)     (LEVEL 3)  
Short-Term Investments
                                
Short-Term Variable Rate Municipal Obligations
   $ 196,075,000     $ —     $ 196,075,000     $ —  
Tax-Exempt Commercial Paper
     30,980,000       —       30,980,000       —  
Short-Term Municipal Notes and Bonds
     8,585,444       —       8,585,444       —  
 
                        
Total
   $ 235,640,444     $ —     $ 235,640,444     $ —  
 
                        
Transfers between investment levels may occur as the markets fluctuate and/or the availability of data used in an investment’s valuation changes. The Fund recognizes transfers between the Levels as of the end of the period. As of September 30, 2010, the Fund did not have any investments transfer between valuation levels.
Valuation of Investments — Portfolio securities are valued at amortized cost, which approximates market value, in accordance with Rule 2a-7 under the Investment Company Act of 1940. Investments in open-end mutual funds, including the Morgan Stanley Institutional Liquidity Funds, are valued at the net asset value as of the close of each business day.

 

 

Item 2. Controls and Procedures.
(a) The Fund’s principal executive officer and principal financial officer have concluded that the Fund’s disclosure controls and procedures are sufficient to ensure that information required to be disclosed by the Fund in this Form N-Q was recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission’s rules and forms, based upon such officers’ evaluation of these controls and procedures as of a date within 90 days of the filing date of the report.
(b) There were no changes in the Fund’s internal control over financial reporting that occurred during the registrant’s fiscal quarter that has materially affected, or is reasonably likely to materially affect, the Fund’s internal control over financial reporting.
Item 3. Exhibits.
(a) A separate certification for each principal executive officer and principal financial officer of the registrant are attached hereto.

 

 

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.
Morgan Stanley Tax-Free Daily Income Trust
/s/ Kevin Klingert
Kevin Klingert
Principal Executive Officer
November 16, 2010
     Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
/s/ Kevin Klingert
Kevin Klingert
Principal Executive Officer
November 16, 2010
/s/ Francis Smith
Francis Smith
Principal Financial Officer
November 16, 2010

 

EX-99.CERT 2 y87856exv99wcert.htm EX-99.CERT exv99wcert
Exhibit 3 A1
CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER
I, Kevin Klingert, certify that:
1.   I have reviewed this report on Form N-Q of Morgan Stanley Tax-Free Daily Income Trust;
 
2.   Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
 
3.   Based on my knowledge, the schedules of investments included in this report fairly present in all material respects the investments of the registrant as of the end of the fiscal quarter for which the report is filed;
 
4.   The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) for the registrant and have:
  (a)   Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
 
  (b)   Omitted;
 
  (c)   Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report, based on such evaluation; and
 
  (d)   Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
5.   The registrant’s other certifying officer(s) and I have disclosed to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
  (a)   All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize, and report financial information; and
 
  (b)   Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
Date: November 16, 2010
/s/ Kevin Klingert
Kevin Klingert
Principal Executive Officer

 

 

Exhibit 3 A2
CERTIFICATION OF PRINCIPAL FINANCIAL OFFICER
I, Francis Smith, certify that:
1.   I have reviewed this report on Form N-Q of Morgan Stanley Tax-Free Daily Income Trust;
 
2.   Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
 
3.   Based on my knowledge, the schedules of investments included in this report fairly present in all material respects the investments of the registrant as of the end of the fiscal quarter for which the report is filed;
 
4.   The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) for the registrant and have:
  (a)   Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
 
  (b)   Omitted;
 
  (c)   Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report, based on such evaluation; and
 
  (d)   Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
5.   The registrant’s other certifying officer(s) and I have disclosed to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
  (a)   All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize, and report financial information; and
 
  (b)   Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
Date: November 16, 2010
/s/ Francis Smith
Francis Smith
Principal Financial Officer

 

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