As filed with the Securities and Exchange Commission on July 7, 2004
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF
REGISTERED MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file Number: 811-21167
NEUBERGER BERMAN CALIFORNIA INTERMEDIATE MUNICIPAL FUND INC.
------------------------------------------------------------
(Exact Name of the Registrant as Specified in Charter)
c/o Neuberger Berman Management Inc.
605 Third Avenue, 2nd Floor
New York, New York 10158-0180
Registrant's Telephone Number, including area code: (212) 476-8800
Peter E. Sundman, Chief Executive Officer
c/o Neuberger Berman Management Inc.
Neuberger Berman California Intermediate Municipal Fund Inc.
605 Third Avenue, 2nd Floor
New York, New York 10158-0180
Arthur C. Delibert, Esq. Ellen Metzger, Esq.
Kirkpatrick & Lockhart LLP Neuberger Berman, LLC
1800 Massachusetts Avenue, N.W. 2nd Floor 605 Third Avenue
Washington, DC 20036-1800 New York, New York 10158-3698
(Names addresses of agents for service)
Date of fiscal year end: October 31, 2004
Date of reporting period: April 30, 2004
Form N-CSR is to be used by management investment companies to file reports with
the Commission not later than 10 days after the transmission to stockholders of
any report that is required to be transmitted to stockholders under Rule 30e-1
under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may
use the information provided on Form N-CSR in its regulatory, disclosure review,
inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-CSR,
and the Commission will make this information public. A registrant is not
required to respond to the collection of information contained in Form N-CSR
unless the Form displays a currently valid Office of Management and Budget
("OMB") control number. Please direct comments concerning the accuracy of the
information collection burden estimate and any suggestions for reducing the
burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW,
Washington, DC 20549-0609. The OMB has reviewed this collection of information
under the clearance requirements of 44 U.S.C. ss. 3507.
ITEM 1. REPORTS TO STOCKHOLDERS
Semi-Annual Report [NEUBERGER BERMAN LOGO]
April 30, 2004 A LEHMAN BROTHERS COMPANY
Neuberger Berman
INTERMEDIATE
MUNICIPAL
CLOSED-END FUNDS
California Intermediate Municipal Fund Inc.
Intermediate Municipal Fund Inc.
New York Intermediate Municipal Fund Inc.
NEUBERGER BERMAN APRIL 30, 2004 (UNAUDITED)
CHAIRMAN'S LETTER
-----------------
Dear Fellow Shareholder,
I am pleased to present to you this semi-annual report of the Neuberger Berman
Intermediate Municipal Closed-End Funds, for the period ending April 30, 2004.
The report includes a listing of the Funds' investments and their financial
statements for the reporting period.
Each Fund's investment objective is to provide current income exempt from
regular federal income tax and, for each state-specific Fund, current income
exempt from that state's income taxes.
We invest in intermediate-term municipal bonds (maturities between three and
eight years) because our experience and research indicate strongly that this
maturity range has historically offered the best risk/reward profile on the
yield curve, providing much of the return of longer-term bonds -- with less
volatility and risk.
We believe our conservative investing philosophy and disciplined investment
process will benefit you with superior tax-exempt current income over the long
term.
Thank you for your confidence in Neuberger Berman. We will continue to do our
best to keep earning it.
Sincerely,
/s/ Peter Sundman
PETER SUNDMAN
CHAIRMAN OF THE BOARD
CALIFORNIA INTERMEDIATE MUNICIPAL FUND INC.
INTERMEDIATE MUNICIPAL FUND INC.
NEW YORK INTERMEDIATE MUNICIPAL FUND INC.
"NEUBERGER BERMAN" AND THE NEUBERGER BERMAN LOGO ARE SERVICE MARKS OF NEUBERGER
BERMAN, LLC. "NEUBERGER BERMAN MANAGEMENT INC." AND THE INDIVIDUAL FUND NAME IN
THIS SHAREHOLDER REPORT ARE EITHER SERVICE MARKS OR REGISTERED SERVICE MARKS OF
NEUBERGER BERMAN MANAGEMENT INC.(C)2004 NEUBERGER BERMAN MANAGEMENT INC. ALL
RIGHTS RESERVED.
CONTENTS
--------
THE FUNDS
CHAIRMAN'S LETTER 1
PORTFOLIO COMMENTARIES/
PERFORMANCE HIGHLIGHTS
California Intermediate Municipal Fund Inc. 2
Intermediate Municipal Fund Inc. 2
New York Intermediate Municipal Fund Inc. 3
SCHEDULE OF INVESTMENTS
California Intermediate Municipal Fund Inc. 6
Intermediate Municipal Fund Inc. 11
New York Intermediate Municipal Fund Inc. 18
FINANCIAL STATEMENTS 24
FINANCIAL HIGHLIGHTS
PER SHARE DATA
California Intermediate Municipal Fund Inc. 34
Intermediate Municipal Fund Inc. 35
New York Intermediate Municipal Fund Inc. 36
DIVIDEND REINVESTMENT PLAN 38
DIRECTORY 40
DIRECTORS AND OFFICERS 41
PROXY VOTING POLICIES AND PROCEDURES 48
1
INTERMEDIATE MUNICIPAL CLOSED-END FUNDS Portfolio Commentaries
---------------------------------------------------------------
We are pleased to report that on a Net Asset Value (NAV) basis, all
three of Neuberger Berman's Intermediate Municipal Closed-End Funds
delivered positive returns and outperformed the Lehman Brothers
10-Year Municipal Bond Index benchmark in fiscal first-half 2004.
We enjoyed a stable bond market through the first five months of this
six-month reporting period. However, when a strong March jobs report
was released in early April and investors became convinced the Federal
Reserve would begin tightening this summer, bond prices came under
heavy pressure. Municipal securities' performance tracked that of the
broad fixed-income market throughout this reporting period.
Robust third-quarter 2003 GDP growth had inspired us to assume a
defensive posture long before the March jobs reports rattled the
fixed-income markets. We reduced the portfolios' weighted average
maturity and duration to hedge against interest rate risk. To enhance
liquidity, we upgraded the credit quality of all the portfolios. These
strategies could not offer total protection against April's volatile
fixed-income markets, but going forward, we believe our more defensive
posture will help preserve capital in what is likely to remain an
unsettled market environment for at least the next several months.
Looking ahead, we believe the fixed-income markets will remain
volatile for at least the next several months as investors continue to
ponder how much the Federal Reserve will hike short-term interest
rates. We believe the Fed will take a cautious, measured approach,
tapping lightly on the monetary brakes this summer and then waiting
for the election year dust to settle. If economic growth begins to
moderate in second-half 2004, we believe the threat of inflation will
diminish and that Fed rate hikes may be more modest than the bond
market is currently anticipating. We will remain defensively postured
until we see solid evidence that the municipal bond market is firming.
INTERMEDIATE MUNICIPAL FUND INC.
(AMEX: NBH)
For the six months ended April 30, 2004, on a Net Asset Value (NAV)
basis, the Intermediate Municipal Fund returned 2.20% compared to the
Lehman 10-Year Municipal Bond Index's 0.92% return.
As of April 30, 2004, the portfolio was comprised of 75.1% revenue
bonds, 23.3% general obligation bonds, and 1.6% cash and cash
equivalents. Bonds subject to the Alternative Minimum Tax (AMT)
equaled 12.5% of assets. At the close of the reporting period, the
Fund's duration was 6.6 years, and the portfolio's leverage position
was 37.7% of net assets.
CALIFORNIA INTERMEDIATE MUNICIPAL FUND INC.
(AMEX: NBW)
For the six months ended April 30, 2004, on a Net Asset Value (NAV)
basis, the California Intermediate Municipal Fund returned 1.82%
compared to the Lehman 10-Year Municipal Bond Index's 0.92% return.
As of April 30, 2004, the portfolio was comprised of 87.5% revenue
bonds, 10.8% general obligation bonds, and 1.7% cash and cash
equivalents. Bonds subject to the Alternative Minimum Tax (AMT)
equaled 13.2% of assets. At the close of the reporting period, the
Fund's duration was 6.6 years, and the portfolio's leverage position
was 37.9% of net assets.
Shortly after the close of first-half fiscal 2004, California
successfully issued $7.9 billion in Economic Recovery Bonds. The issue
was over-subscribed at prices reflecting investor confidence that
California will effectively address its structural budget deficit.
2
NEUBERGER BERMAN APRIL 30, 2004 (UNAUDITED)
NEW YORK INTERMEDIATE MUNICIPAL FUND INC.
(AMEX: NBO)
For the six months ended April 30, 2004, on a Net Asset Value (NAV)
basis, the New York Intermediate Municipal Fund returned 1.82%
compared to the Lehman 10-Year Municipal Bond Index's 0.92% return.
As of April 30, 2004, the portfolio was comprised of 94.6% revenue
bonds, 3.6% general obligation bonds, and 1.8% cash and cash
equivalents. Bonds subject to the Alternative Minimum Tax (AMT)
equaled 17.3% of assets. At the close of the reporting period, the
Fund's duration was 6.7 years, and the portfolio's leverage position
was 37.8% of net assets.
Sincerely,
/s/ Ted Giuliano
/s/ Thomas Brophy
/s/ Lori Canell
TED GIULIANO, THOMAS BROPHY
AND
LORI CANELL
PORTFOLIO CO-MANAGERS
PERFORMANCE HIGHLIGHTS
NEUBERGER BERMAN NAV (1)
SIX MONTH AVERAGE ANNUAL
PERIOD ENDED TOTAL RETURN
INCEPTION DATE 4/30/2004 1 YEAR SINCE INCEPTION
CALIFORNIA INTERMEDIATE MUNICIPAL FUND 09/24/2002 1.82% 3.03% 4.82%
INTERMEDIATE MUNICIPAL FUND 09/24/2002 2.20% 3.84% 5.54%
NEW YORK INTERMEDIATE MUNICIPAL FUND 09/24/2002 1.82% 4.19% 5.07%
PERFORMANCE HIGHLIGHTS
NEUBERGER BERMAN MARKET PRICE (2)
SIX MONTH AVERAGE ANNUAL
PERIOD ENDED TOTAL RETURN
INCEPTION DATE 4/30/2004 1 YEAR SINCE INCEPTION
CALIFORNIA INTERMEDIATE MUNICIPAL FUND 09/24/2002 (0.50%) (2.29%) (5.65%)
INTERMEDIATE MUNICIPAL FUND 09/24/2002 (1.26%) (4.10%) (4.51%)
NEW YORK INTERMEDIATE MUNICIPAL FUND 09/24/2002 (2.69%) (5.49%) (5.69%)
Closed-end funds, unlike open-end funds, are not continually offered. There is
an initial public offering and once issued, common shares of closed-end funds
are sold in the open market through a stock exchange.
The composition, industries and holdings of the fund are subject to change.
Investment return will fluctuate. Past performance is no guarantee of future
results.
3
ENDNOTES
--------
1. Returns based on Net Asset Value ("NAV") of the Funds.
2. Returns based on price of Fund shares on the American Stock
Exchange.
4
NEUBERGER BERMAN APRIL 30, 2004 (UNAUDITED)
GLOSSARY OF INDICES
-------------------
NEW YORK MUNICIPAL DEBT FUND AVERAGE: An equally weighted average of those closed-end funds that limit their
assets to those securities that are exempt from taxation in New York
(double tax-exempt) or a city in New York (triple tax-exempt).
CALIFORNIA MUNICIPAL DEBT FUND INDEX: An equally weighted index, adjusted for income dividends and capital
gain distributions, of typically the largest 30 closed-end funds that
invest at least 65% of assets in municipal debt issues that are exempt
from taxation in California.
CALIFORNIA MUNICIPAL DEBT FUND AVERAGE: An equally weighted average of those closed-end funds that invest at
least 65% of assets in municipal debt issues that are exempt from
taxation in California.
GENERAL LEVERAGED MUNICIPAL DEBT FUND INDEX: An equally weighted index, adjusted for income dividends and capital
gain distributions, of typically the largest 30 closed-end funds that
invest 65% or more of their assets in municipal debt issues rated in the
top four credit ratings. These funds can be leveraged via use of debt,
preferred equity, and/or reverse repurchase agreements.
GENERAL LEVERAGED MUNICIPAL DEBT FUND AVERAGE: An equally weighted average of those closed-end funds that invest 65% or
more of their assets in municipal debt issues rated in the top four
credit ratings. These funds can be leveraged via use of debt, preferred
equity, and/or reverse repurchase agreements.
LEHMAN 10-YEAR MUNICIPAL BOND INDEX: The index is the 10 Year (8-12) component which is a rules-based,
market-value-weighted index engineered for the long-term tax-exempt bond
market. To be included in the index, bonds must have a minimum credit
rating of Baa. They must have an outstanding par value of at least $5
million and be issued as part of a transaction of at least $50 million.
The bonds must have a dated-date after December 31, 1990 and must be at
least one year from their maturity date. Remarked issues, taxable
municipal bonds, bonds with floating rates, and derivatives, are
excluded from the benchmark.
Please note that indices do not take into account any fees and expenses of
investing in the individual securities that they track, and that investors
cannot invest directly in any index or average. Data about the performance of
each index are prepared or obtained by Management and include reinvestment of
all dividends and capital gain distributions. Each Fund may invest in many
securities not included in its respective index.
5
SCHEDULE OF INVESTMENTS California Intermediate Municipal Fund Inc.
-------------------------------------------------------------------
PRINCIPAL AMOUNT SECURITY @ RATING VALUE +
(000'S OMITTED) MOODY'S S&P (000'S OMITTED)
TAX-EXEMPT SECURITIES--BACKED BY INSURANCE (86.8%)
AMERICAN CAPITAL ACCESS
$1,000 Puerto Rico Ind., Tourist, Ed., Med., & Env. Ctrl. Fac. Rev.
(Polytechnic Univ. of Puerto Rico Proj.), Ser. 2002 A,
5.25%, due 8/1/15 A $ 1,061++
AMERICAN MUNICIPAL BOND ASSURANCE CORP.
1,285 Bay Area (CA) Governments Assoc. Bart SFO Extension Rev.
(Arpt. Premium Fare), Ser. 2002 A, 5.00%, due 8/1/21 AAA 1,310
1,000 California St. Pub. Works Board Lease (Dept. of Gen. Svc.) Rev.
(Cap. East End Complex), Ser. 2002 A, 5.25%, due 12/1/16 AAA 1,064
1,000 Fresno (CA) Unified Sch. Dist. Ref. G.O., Ser. 2002 A,
6.00%, due 2/1/17 AAA 1,164
1,905 Long Beach (CA) Bond Fin. Au. Tax Allocation Rev., (Downtown,
North Long Beach, Poly High, & West Beach Redev. Proj.),
Ser. 2002 A, 5.38%, due 8/1/17 AAA 2,042
500 Long Beach (CA) Fin. Au. Rev., Ser. 1992, 6.00%, due 11/1/17 AAA 580
1,045 Marin Co. (CA) Muni. Wtr. Dist. Wtr. Ref. Rev., Ser. 2002,
5.00%, due 7/1/17 AAA 1,092
1,445 Oceanside (CA) Cert. of Participation Ref. Rev., Ser. 2003 A,
5.25%, due 4/1/14 AAA 1,560
2,600 Sacramento (CA) Muni. Util. Dist. Elec. Rev., Ser. 1997 K,
5.70%, due 7/1/17 AAA 2,938
500 Salinas Valley (CA) Solid Waste Au. Rev., Ser. 2002,
5.00%, due 8/1/06 AAA 531
2,000 San Francisco (CA) St. Bldg. Au. Lease Rev. (San Francisco
Civic Ctr. Complex), Ser. 1996 A, 5.25%, due 12/1/16 AAA 2,137
2,500 San Jose (CA) Fin. Au. Lease Rev. (Civic Ctr. Proj.), Ser. 2002 B,
5.25%, due 6/1/17 AAA 2,646
1,000 San Jose (CA) Multi-Family Hsg. Rev. (Fallen Leaves Apts. Proj.),
Ser. 2002 J-1, 4.95%, due 12/1/22 Aaa AAA 1,003
FINANCIAL GUARANTY INSURANCE CO.
2,550 Contra Costa (CA) Comm. College Dist. G.O., Ser. 2002,
5.25%, due 8/1/17 AAA 2,710
1,000 Kings Canyon (CA) Joint Unified Sch. Dist. G.O., Ser. 2002,
5.38%, due 8/1/17 Aaa AAA 1,075
5,000 Los Angeles (CA) Dept. of Arpts. Rev. (Los Angeles Int'l. Arpt.),
Ser. 2002 A, 5.25%, due 5/15/18 Aaa AAA 5,275
1,090 Moreland (CA) Sch. Dist. Ref. G.O., Ser. 2002,
5.13%, due 9/1/17 AAA 1,149
535 Nevada & Placer Cos. (CA) Irrigation Dist. Cert. of Participation
Rev., Ser. 2002, 5.00%, due 1/1/16 AAA 559
565 Nevada & Placer Cos. (CA) Irrigation Dist. Cert. of Participation
Rev., Ser. 2002, 5.00%, due 1/1/17 AAA 587
1,045 Oakland (CA) G.O., Ser. 2002 A, 5.00%, due 1/15/15 AAA 1,103
1,210 Oakland (CA) G.O., Ser. 2002 A, 5.00%, due 1/15/18 AAA 1,256
1,290 Oakland (CA) Redev. Agcy. Sub. Tax Allocation Rev. (Central
Dist. Redev. Proj.), Ser. 2003, 5.50%, due 9/1/17 AAA 1,403
575 Port of Oakland (CA) Rev., Ser. 2002 M, 5.25%, due 11/1/17 AAA 612
2,655 Riverside Co. (CA) Eastern Muni. Wtr. Dist. Cert. of Participation
Wtr. & Swr. Rev., Ser. 2001 A, 5.00%, due 7/1/19 Aaa AAA 2,729
2,000 San Diego (CA) Unified Sch. Dist. G.O., Ser. 2002 D,
5.25%, due 7/1/21 Aaa AAA 2,108
1,500 San Francisco (CA) City & Co. Int'l. Arpt. Second Ser. Rev.,
5.25%, due 5/1/16 AAA 1,553
6
NEUBERGER BERMAN APRIL 30, 2004 (UNAUDITED)
SCHEDULE OF INVESTMENTS California Intermediate Municipal Fund Inc. cont'd
--------------------------------------------------------------------------
PRINCIPAL AMOUNT SECURITY @ RATING VALUE +
(000'S OMITTED) MOODY'S S&P (000'S OMITTED)
FINANCIAL SECURITY ASSURANCE INC.
$1,000 Burbank (CA) Pub. Svc. Dept. Elec. Rev., Ser. 1998,
5.13%, due 6/1/16 AAA $ 1,055
1,000 California St. Dept. of Wtr. Res. Wtr. Rev., Ser. 2001 W,
5.50%, due 12/1/13 Aaa AAA 1,124
3,000 California St. Pub. Works Board Lease Rev. (Regents of the
Univ. of California, UCLA Replacement Hosp.), Ser. 2002 A,
5.38%, due 10/1/13 AAA 3,277
1,275 Los Angeles Co. (CA) Long Beach Unified Sch. Dist. G.O.,
Ser. 2002 D, 5.00%, due 8/1/17 AAA 1,324
500 Marin Co. (CA) Dixie Elementary Sch. Dist. G.O., Ser. 2000 A,
5.38%, due 8/1/17 AAA 537
3,000 Puerto Rico Muni. Fin. Agcy. Rev., Ser. 2002 A,
5.25%, due 8/1/17 AAA 3,222
1,000 Puerto Rico Muni. Fin. Agcy. Rev., Ser. 2002 A,
5.25%, due 8/1/21 Aaa AAA 1,062
5,000 San Francisco (CA) City & Co. Redev. Agcy. Lease Ref. Rev.
(George R. Moscone Convention Ctr.), Ser. 2002,
5.00%, due 7/1/17 Aaa AAA 5,210
1,000 San Jose (CA) Arpt. Ref. Rev., Ser. 2002 B,
5.00%, due 3/1/11 AAA 1,052
1,615 San Jose (CA) Arpt. Ref. Rev., Ser. 2002 B,
5.00%, due 3/1/12 AAA 1,680
1,620 Santa Clara Co. (CA) Fremont Union High Sch. Dist. G.O.,
Ser. 2002 C, 5.00%, due 9/1/20 Aaa AAA 1,668
MUNICIPAL BOND INVESTORS ASSURANCE CORP.
1,250 Alameda Co. (CA) Cert. of Participation Ref. Rev., Ser. 2001 A,
5.38%, due 12/1/17 AAA 1,343
4,000 California Poll. Ctrl. Fin. Au. Ref. PCR (Pacific Gas & Elec. Co.),
Ser. 1996 A, 5.35%, due 12/1/16 AAA 4,220++
2,835 Glendale (CA) Redev. Agcy. Tax Allocation Rev. (Central
Glendale Redev. Proj.), Ser. 2002, 5.00%, due 12/1/16 AAA 2,987
2,480 Glendale (CA) Redev. Agcy. Tax Allocation Rev. (Central
Glendale Redev. Proj.), Ser. 2002, 5.25%, due 12/1/17 AAA 2,650
3,890 Port of Oakland (CA) Ref. Rev., Ser. 2002 N,
5.00%, due 11/1/13 AAA 4,076
750 Santa Clara Co. (CA) Saratoga Union Sch. Dist. Ref. G.O.,
Ser. 1999, 5.13%, due 9/1/11 AAA 826
3,905 Solano Co. (CA) Cert. of Participation Rev., Ser. 2002,
5.25%, due 11/1/17 AAA 4,146
1,000 Univ. of California Regents Rev. (Multi. Purp. Proj.), Ser. 2000 K,
5.00%, due 9/1/12 AAA 1,065
--------
83,771
--------
TAX-EXEMPT SECURITIES--OTHER (71.7%)
780 Abag (CA) Fin. Au. Cert. of Participation Rev. (Channing House),
Ser. 1999, 4.90%, due 2/15/09 BBB+ 817++
3,050 Abag (CA) Fin. Au. Cert. of Participation Rev. (Episcopal Homes
Foundation), Ser. 1998, 5.13%, due 7/1/18 BBB+ 2,898++
1,000 Abag (CA) Fin. Au. Rev. (San Diego Hosp. Assoc.), Ser. 2003 C,
5.13%, due 3/1/18 Baa1 BBB+ 989++
900 Brazos (TX) River Au. Ref. PCR (TXU Energy Co. LLC Proj.),
Ser. 2003 A, 6.75%, due 4/1/38 Putable 4/1/13 Baa2 BBB 1,011
750 Brazos (TX) River Au. Ref. Rev. (Reliant Energy, Inc. Proj.),
Ser. 1999 B, 7.75%, due 12/1/18 Ba1 BBB- 815++
See Notes to Schedule of Investments
7
SCHEDULE OF INVESTMENTS California Intermediate Municipal Fund Inc. cont'd
--------------------------------------------------------------------------
PRINCIPAL AMOUNT SECURITY @ RATING VALUE +
(000'S OMITTED) MOODY'S S&P (000'S OMITTED)
$1,000 Brazos (TX) River Harbor Navigation Dist. of Brazoria Co.
Env. Fac. Rev. (Dow Chemical Co. Proj.), Ser. 2002 A-4,
5.20%, due 5/15/33 A3 A $ 1,063++
880 California Co. (CA) Tobacco Securitization Agcy. Tobacco
Settlement Asset-Backed Rev., Ser. 2002, 4.75%, due 6/1/19 Baa3 BBB 867
1,750 California Ed. Fac. Au. Ref. Rev. (Stanford Univ.), Ser. 2001 R,
5.00%, due 11/1/21 Aaa AAA 1,801++
2,000 California Hlth. Fac. Fin. Au. Rev. (Catholic Healthcare West),
Ser. 2004 I, 4.95%, due 7/1/26 Baa1 BBB+ 2,007++
2,000 California Hlth. Fac. Fin. Au. Rev. (Cedars-Sinai Med. Ctr.),
Ser. 1999 A, 6.13%, due 12/1/19 A3 2,149++
1,000 California Hlth. Fac. Fin. Au. Rev. (Kaiser Permanente),
Ser. 1998 B, 5.00%, due 10/1/20 AAA 1,037++
1,500 California Poll. Ctrl. Fin. Au. Solid Waste Disp. Rev.
(Republic Svc., Inc. Proj.), Ser. 2002 B, 5.25%, due 6/1/23 Baa3 BBB 1,516++
2,500 California Poll. Ctrl. Fin. Au. Solid Waste Disp. Rev.
(Waste Management, Inc. Proj.), Ser. 2002 B,
4.45%, due 7/1/27 Putable 7/1/05 BBB 2,535++
1,000 California Poll. Ctrl. Fin. Au. Solid Waste Disp. Rev.
(Waste Management, Inc. Proj.), Ser. 2002 C,
4.85%, due 12/1/27 Putable 12/1/17 BBB 1,042++
4,500 California St. Dept. of Wtr. Res. Pwr. Supply Rev., Ser. 2002 A,
5.75%, due 5/1/17 A3 BBB+ 4,874
1,000 California St. Dept. of Wtr. Res. Pwr. Supply Rev., Ser. 2002 A,
5.38%, due 5/1/22 A3 BBB+ 1,025
2,250 California St. G.O., Ser. 2002, 5.00%, due 10/1/17 A1 A+ 2,279
1,095 California St. Pub. Works Board Lease Rev. (California Comm.
Colleges), Ser. 2004 B, 5.50%, due 6/1/20 Baa2 BBB- 1,136
1,000 California St. Univ., Fresno Assoc., Inc. Rev. (Auxiliary
Organization Event Ctr.), Ser. 2002, 5.00%, due 7/1/12 Baa3 BBB- 1,029
2,000 California Statewide CDA Cert. of Participation Rev. (Children's
Hosp. Los Angeles), Ser. 1999, 5.13%, due 8/15/19 A2 A+ 2,019++
2,000 California Statewide CDA Cert. of Participation Rev.
(The Internext Group), Ser. 1999, 5.38%, due 4/1/17 BBB 2,020++
5,000 California Statewide CDA Hlth. Fac. Rev. (Mem. Hlth. Svcs.),
Ser. 2003 A, 6.00%, due 10/1/16 A3 A 5,439++
500 California Statewide CDA Rev. (East Valley Tourist Dev. Au.),
Ser. 2003 A, 9.25%, due 10/1/20 BB 542
3,000 California Statewide CDA Rev. (Kaiser Permanente), Ser. 2002 E,
4.70%, due 11/1/36 Putable 6/1/09 A3 3,131++
1,000 Central (CA) Joint Pwr. Hlth. Fin. Au. Cert. of Participation Rev.,
(Comm. Hosp. of Central California Proj.), Ser. 2000,
5.50%, due 2/1/14 Baa1 BBB+ 1,040++
1,020 Cerritos (CA) Pub. Fin. Au. Sub. Tax Allocation Rev.
(Cerritos Redev. Proj.), Ser. 2002 B, 4.40%, due 11/1/16 BBB 959
1,000 Cumberland Co. (PA) West Shore Area Au. Hosp. Rev.
(Holy Spirit Hosp. of the Sisters of Christian Charity Proj.),
Ser. 2001, 6.00%, due 1/1/18 BBB+ 1,051++
500 Dallas-Fort Worth (TX) Int'l. Arpt. Fac. Imp. Corp. Rev.,
Ser. 2004 A-1, 6.15%, due 1/1/16 Baa3 BBB- 500++
1,000 De Kalb Co. (GA) Dev. Au. Ref. PCR (General Motors Corp. Proj.),
Ser. 2002, 6.00%, due 3/15/21 A3 BBB 1,015++
1,210 Elk Grove (CA) Spec. Tax Rev. (East Franklin Comm. Fac. Dist.
Number 1), Ser. 2002 A, 5.38%, due 8/1/17 BB+ 1,193
8
NEUBERGER BERMAN APRIL 30, 2004 (UNAUDITED)
SCHEDULE OF INVESTMENTS California Intermediate Municipal Fund Inc. cont'd
--------------------------------------------------------------------------
PRINCIPAL AMOUNT SECURITY @ RATING VALUE +
(000'S OMITTED) MOODY'S S&P (000'S OMITTED)
$1,270 Los Angeles (CA) Dept. of Wtr. & Pwr. Sys. Rev., Ser. 2001 A,
Sub. Ser. A-3, 5.38%, due 7/1/20 Aa3 $ 1,314
750 Miami Beach (FL) Hlth. Fac. Au. Hosp. Ref. Rev. (Mount Sinai
Med. Ctr. of Florida Proj.), Ser. 2004, 6.25%, due 11/15/09 Ba2 BB 749++
1,500 Morehouse Parish (LA) Ref. PCR (Int'l. Paper Co. Proj.),
Ser. 2001 A, 5.25%, due 11/15/13 Baa2 BBB 1,586++
1,405 North Carolina Muni. Pwr. Agcy. Number 1 Catawba Elec. Rev.,
Ser. 2003 A, 5.50%, due 1/1/14 Baa1 BBB+ 1,502
605 Oakland (CA) Redev. Agcy. Rev. (Coliseum Area Redev. Proj.),
Ser. 2003, 5.00%, due 9/1/16 A- 613
635 Oakland (CA) Redev. Agcy. Rev. (Coliseum Area Redev. Proj.),
Ser. 2003, 5.00%, due 9/1/17 A- 640
1,395 Puerto Rico Children's Trust Tobacco Settlement Asset-Backed
Rev., Ser. 2002, 5.38%, due 5/15/33 Baa3 BBB 1,312
440 Roseville (CA) Stone Point Comm. Fac. District No. 1 Special Tax
Rev., Ser. 2003, 5.70%, due 9/1/17 BB+ 432
830 San Diego (CA) Redev. Agcy. Sub. Parking Rev. (Centre City
Redev. Proj.), Ser. 2003 B, 4.80%, due 9/1/15 Baa2 A- 830
820 San Diego (CA) Redev. Agcy. Sub. Parking Rev. (Centre City
Redev. Proj.), Ser. 2003 B, 4.90%, due 9/1/16 Baa2 A- 821
3,000 San Francisco (CA) Bay Area Toll Au. Toll Bridge Rev.,
Ser. 2001 D, 5.00%, due 4/1/17 Aa3 AA 3,113
1,000 Santa Rosa (CA) Rancheria Tachi Yokut Tribe Enterprise Rev.,
Ser. 2003, 6.13%, due 3/1/13 BBB 993
1,000 South Gate (CA) Pub. Fin. Au. Tax Allocation Rev. (South Gate
Redev. Proj. No. 1), Ser. 2002, 5.00%, due 9/1/16 AAA 1,046
1,250 Tobacco Settlement Fin. Corp. (LA) Tobacco Settlement
Asset-Backed Rev., Ser. 2001 B, 5.50%, due 5/15/30 Baa3 BBB 1,079
600 Univ. of California Regents Cert. of Participation Rev.
(San Diego Campus & Sacramento Proj.), Ser. 2002 A,
5.25%, due 1/1/18 Aa2 628
750 Verrado (AZ) Comm. Fac. Dist. Number 1 G.O., Ser. 2003,
6.15%, due 7/15/17 BB- 748
250 Virgin Islands Pub. Fin. Au. Refinery Fac. Rev. (Hovensa
Refinery Proj.), Ser. 2003, 6.13%, due 7/1/22 Baa3 BBB- 259
750 Virgin Islands Pub. Fin. Au. Rev. (Virgin Islands Matching Fund
Loan Notes), Ser. 1998 E, 6.00%, due 10/1/22 BBB 756
1,000 Virgin Islands Wtr. & Pwr. Au. Elec. Sys. Ref. Rev., Ser. 1998,
5.30%, due 7/1/18 BBB 1,002
--------
69,222
--------
TAX-EXEMPT CASH EQUIVALENT SECURITIES--BACKED BY INSURANCE (0.2%)
AMERICAN MUNICIPAL BOND ASSURANCE CORP.
200 California Hsg. Fin. Agcy. Home Mtg. Rev., Ser. 2001 R,
1.10%, VRDN due 8/1/23 VMIG1 A-1+ 200
--------
See Notes to Schedule of Investments
9
SCHEDULE OF INVESTMENTS California Intermediate Municipal Fund Inc. cont'd
--------------------------------------------------------------------------
PRINCIPAL AMOUNT SECURITY @ RATING VALUE +
(000'S OMITTED) MOODY'S S&P (000'S OMITTED)
TAX-EXEMPT CASH EQUIVALENT SECURITIES--BACKED BY LETTERS OF CREDIT (0.6%)
BANK OF AMERICA
$ 280 Irvine (CA) Ltd. Oblig. Imp. (Assessment Dist. No 93-14),
Ser. 2000, 1.08%, VRDN due 9/2/25 VMIG1 A-1+ $ 280
300 Newport Beach (CA) Rev. (Hoag Mem. Hosp. Presbyterian),
Ser. 1992, 1.04%, VRDN due 10/1/22 VMIG1 A-1+ 300++
--------
580
--------
TOTAL INVESTMENTS (159.3%) (COST $153,534) 153,773##
Cash, receivables and other assets, less liabilities (1.8%) 1,782
Liquidation Value of Auction Market Preferred Shares [(61.1%)] (59,000)
--------
TOTAL NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS (100.0%) $ 96,555
--------
10
NEUBERGER BERMAN APRIL 30, 2004 (UNAUDITED)
SCHEDULE OF INVESTMENTS Intermediate Municipal Fund Inc.
--------------------------------------------------------
PRINCIPAL AMOUNT SECURITY @ RATING VALUE +
(000'S OMITTED) MOODY'S S&P (000'S OMITTED)
TAX-EXEMPT SECURITIES--PRE-REFUNDED BACKED BY U.S. GOVERNMENT SECURITIES (0.0%)
$ 20 San Antonio (TX) Pre-Refunded Cert. of Obligation G.O.,
Ser. 2002, 5.00%, due 2/1/14 P/R 2/1/12 Aa2 AA+ $ 22
--------
TAX-EXEMPT SECURITIES--ESCROWED IN U.S. GOVERNMENT SECURITIES (0.6%)
1,670 Illinois Metro. Pier & Exposition Au. Dedicated St. Tax Ref. Rev.,
Ser. 1998 A, 5.50%, due 6/15/17 AAA 1,876
--------
TAX-EXEMPT SECURITIES--BACKED BY INSURANCE (75.3%)
AMERICAN MUNICIPAL BOND ASSURANCE CORP.
1,500 California St. Pub. Works Board Lease Rev., Ser. 2002 A,
5.25%, due 12/1/17 AAA 1,588
5,000 Chicago (IL) G.O., Ser. 1995 A-2, 6.25%, due 1/1/13 Aaa AAA 5,821
6,120 Chicago (IL) G.O., Ser. 2002 A, 5.38%, due 1/1/17 Aaa AAA 6,553
4,220 Colorado Springs (CO) Util. Sys. Sub. Lien Ref. Rev.,
Ser. 2002 A, 5.38%, due 11/15/18 AAA 4,522
4,100 Fargo (ND) Hlth. Sys. Rev. (Meritcare Obligated Group),
Ser. 2002 A, 5.63%, due 6/1/17 AAA 4,430++
1,065 Indiana St. Recreational Dev. Comm. Rev., Ser. 2002,
5.25%, due 7/1/18 AAA 1,122
1,125 Indiana St. Recreational Dev. Comm. Rev., Ser. 2002,
5.25%, due 7/1/19 AAA 1,178
3,000 Massachusetts Port Au. Spec. Fac. Rev. (Delta Air Lines, Inc. Proj.),
Ser. 2001 A, 5.50%, due 1/1/19 AAA 3,108++
5,010 New Hampshire Hlth. & Ed. Fac. Au. Rev. (Univ. Sys. of
New Hampshire), Ser. 1992, 5.38%, due 7/1/17 AAA 5,385
7,000 Palm Beach Co. (FL) Sch. Board Cert. of Participation,
Ser. 2001 B, 5.38%, due 8/1/17 AAA 7,525
4,610 Thornton (CO) Cert. of Participation, Ser. 2002,
5.38%, due 12/1/16 Aaa AAA 4,971
FINANCIAL GUARANTY INSURANCE CO.
4,000 Denver (CO) City & Co. Arpt. Sys. Ref. Rev., Ser. 2002 E,
5.25%, due 11/15/14 Aaa AAA 4,196
3,075 Detroit (MI) Sch. Dist. Sch. Bldg. & Site Imp. G.O.,
Ser. 2002 A, 5.50%, due 5/1/15 AAA 3,377
3,235 Houston (TX) Arpt. Sys. Sub. Lien. Ref. Rev., Ser. 2001 A,
5.50%, due 7/1/16 AAA 3,436
4,355 Las Vegas (NV) Valley Wtr. Dist. Ref. & Wtr. Imp. G.O.,
Ser. 2003 A, 5.25%, due 6/1/16 Aaa AAA 4,653
4,935 Massachusetts St. Hlth. & Ed. Fac. Au. Rev. (New England
Med. Ctr. Hosp.), Ser. 2002 H, 5.38%, due 5/15/16 AAA 5,279++
2,140 Mt. Pleasant Town (SC) Waterworks & Swr. Sys. Ref. & Imp.
Rev., Ser. 2002, 5.25%, due 12/1/17 AAA 2,279
2,080 Oakland (CA) Redev. Agcy. Sub. Tax Allocation Rev.
(Central Dist. Redev. Proj.), Ser. 2003, 5.50%, due 9/1/18 AAA 2,252
8,140 Orange Co. (FL) Sales Tax Ref. Rev., Ser. 2002 A,
5.13%, due 1/1/18 Aaa AAA 8,573
2,000 Philadelphia (PA) Arpt. Ref. Rev. (Philadelphia Arpt. Sys.),
Ser. 1998 A, 5.38%, due 6/15/14 AAA 2,091
6,250 Port of Seattle (WA) Sub Lien Rev., Ser. 2002 B,
5.50%, due 9/1/16 AAA 6,667
5,500 Prince Georges Co. (MD) Cons. Pub. Imp. G.O., Ser. 2001,
5.25%, due 12/1/16 Aaa AAA 5,945
1,000 Sarasota Co. (FL) Util. Sys. Ref. Rev., Ser. 2002 C,
5.25%, due 10/1/20 Aaa AAA 1,053
2,500 Tacoma (WA) Wtr. Sys. Rev., Ser. 2001, 5.13%, due 12/1/19 AAA 2,608
See Notes to Schedule of Investments
11
SCHEDULE OF INVESTMENTS Intermediate Municipal Fund Inc. cont'd
---------------------------------------------------------------
PRINCIPAL AMOUNT SECURITY @ RATING VALUE +
(000'S OMITTED) MOODY'S S&P (000'S OMITTED)
FINANCIAL SECURITY ASSURANCE INC.
$ 3,495 Bi State (MO-IL) Dev. Agcy. Metro. Dist. Rev. (Metrolink Cross Co.
Extension Proj.), Ser. 2002 B, 5.25%, due 10/1/16 Aaa AAA $ 3,769
1,100 Charleston Co. (SC) Sch. Dist. G.O., Ser. 2001,
5.00%, due 2/1/18 Aa1 1,143
3,600 Corpus Christi (TX) Tax & Muni. Hotel Occupancy Tax G.O.,
Ser. 2002, 5.50%, due 9/1/17 AAA 3,909
8,800 Energy Northwest (WA) Elec. Ref. Rev. (Proj. No. 3),
Ser. 2001 A, 5.50%, due 7/1/17 Aaa AAA 9,510
7,000 Harris Co. (TX) Toll Road Sr. Lien Ref. Rev., Ser. 2002,
5.38%, due 8/15/16 AAA 7,539
2,580 Indianapolis (IN) Local Pub. Imp. Rev. (Indianapolis Arpt. Au. Proj.),
Ser. 2003 A, 5.63%, due 1/1/17 AAA 2,759
2,000 Kane, Cooke, & DuPage Cos. (IL) Elgin Sch. Dist.
Number U-46 G.O., Ser. 1998, 5.35%, due 1/1/15 Aaa 2,146
5,000 King & Snohomish Cos. (WA) Northshore Sch. Dist.
Number 417 G.O., Ser. 2002, 5.50%, due 12/1/17 Aaa AAA 5,435
4,260 King Co. (WA) Pub. Trans. Sales Tax Ref. G.O., Ser. 2002,
5.38%, due 12/1/14 Aaa AAA 4,661
3,015 Knox Co. (TN) Hlth., Ed., & Hsg. Fac. Board Hosp.
Ref. & Imp. Rev., Ser. 2002 A, 5.50%, due 1/1/18 Aaa AAA 3,227++
1,725 Maine Muni. Bond Bank Rev., Ser. 1998 C,
5.35%, due 11/1/18 AAA 1,848
5,000 New Jersey Bldg. Au. St. Bldg. Ref. Rev., Ser. 2002 B,
5.25%, due 12/15/15 AAA 5,391
4,665 South Carolina St. Pub. Svc. Au. Rev., Ser. 2002 B,
5.38%, due 1/1/18 Aaa AAA 4,984
4,200 Tarrant (TX) Reg. Wtr. Dist. Wtr. Ref. & Imp. Rev.,
Ser. 2002, 5.38%, due 3/1/16 Aaa AAA 4,529
5,395 Truckee Meadows (NV) Wtr. Au. Wtr. Rev., Ser. 2001 A,
5.50%, due 7/1/15 AAA 5,879
1,370 Wisconsin Hlth. & Ed. Fac. Au. Rev. (Aurora Med. Group,
Inc. Proj.), Ser. 1996, 6.00%, due 11/15/11 Aaa AAA 1,564++
MUNICIPAL BOND INVESTORS ASSURANCE CORP.
1,465 Arizona St. Energy Mgt. Svcs. (Main) LLC Energy Conservation
Rev. (Arizona St. Univ. Proj.-Main Campus), Ser. 2002,
5.25%, due 7/1/17 AAA 1,558
3,000 CDP-King Co. III (WA) Lease Rev. (King Street Ctr. Proj.),
Ser. 1997, 5.13%, due 6/1/17 Aaa AAA 3,081
5,335 Clark Co. (NV) Passenger Fac. Charge Ref. Rev.
(Las Vegas-McCarran Int'l. Arpt. Proj.), Ser. 2002 A,
5.25%, due 7/1/10 AAA 5,720
4,575 Henry Co. (GA) Wtr. & Swr. Au. Wtr. & Swr. Ref. Rev.,
Ser. 2002 A, 5.13%, due 2/1/17 Aaa AAA 4,890
4,955 Houston (TX) Pub. Imp. Ref. G.O., Ser. 2002,
5.25%, due 3/1/17 AAA 5,250
5,000 Illinois G.O., First Ser. 2002, 5.25%, due 10/1/14 Aaa 5,391
3,000 Illinois Hlth. Fac. Au. Rev. (Loyola Univ. Hlth. Sys.),
Ser. 1997 A, 6.00%, due 7/1/14 Aaa AAA 3,435++
1,000 Indiana Muni. Pwr. Agcy. Pwr. Supply Sys. Rev., Ser. 2002 B,
5.25%, due 1/1/18 Aaa AAA 1,058
1,850 Massachusetts St. G.O., Ser. 2002 E, 5.38%, due 1/1/18 AAA 2,039
5,000 Michigan St. Hsg. Dev. Au. Single-Family Mtge. Rev.,
Ser. 2001 A, 5.30%, due 12/1/16 AAA 5,206
12
NEUBERGER BERMAN APRIL 30, 2004 (UNAUDITED)
SCHEDULE OF INVESTMENTS Intermediate Municipal Fund Inc. cont'd
---------------------------------------------------------------
PRINCIPAL AMOUNT SECURITY @ RATING VALUE +
(000'S OMITTED) MOODY'S S&P (000'S OMITTED)
$ 2,710 Newnan (GA) Hosp. Au. Rev. Anticipation Certificate
(Newnan Hosp., Inc. Proj.), Ser. 2002, 5.50%, due 1/1/18 Aaa $ 2,927++
1,910 Southmost (TX) Reg. Wtr. Au. Wtr. Supply Contract Rev.
(Desalination Plant Proj.), Ser. 2002, 5.50%, due 9/1/19 Aaa 2,063
1,000 Trinity (TX) River Au. Imp. & Ref. Rev. (Tarrant Co. Wtr. Proj.),
Ser. 2003, 5.50%, due 2/1/16 AAA 1,087
4,555 Washington St. G.O., Ser. 1998 C, 6.00%, due 7/1/12 AAA 5,220
7,205 Wisconsin St. G.O., Ser. 2002 C, 5.25%, due 5/1/17 Aaa AAA 7,652
--------
223,482
--------
TAX-EXEMPT SECURITIES--OTHER (81.9%)
4,145 Anson (TX) Ed. Fac. Corp. Std. Hsg. Rev. (Univ. of Texas at
Dallas-Waterview Park Proj.), Ser. 2002, 5.00%, due 1/1/23 A 4,018++
1,000 Austin (TX) Convention Enterprises, Inc. Convention Ctr. Hotel
First Tier Rev., Ser. 2001 A, 6.38%, due 1/1/16 Baa3 BBB- 1,050
1,750 Badger (WI) Tobacco Asset Securitization Corp. Tobacco
Settlement Asset-Backed Rev., Ser. 2002, 6.13%, due 6/1/27 Baa3 BBB 1,625
2,000 Boone Co. (MO) Hosp. Ref. Rev. (Boone Hosp. Ctr.), Ser. 2002,
5.05%, due 8/1/20 A3 2,029++
2,425 Branson (MO) Dev. Fin. Board Infrastructure Fac. Board Rev.,
Ser. 2003 A, 5.00%, due 12/1/17 Baa1 2,437
3,300 Brazos (TX) River Au. Ref. PCR (TXU Energy Co. LLC Proj.),
Ser. 2003 A, 6.75%, due 4/1/38 Putable 4/1/13 Baa2 BBB 3,709++
1,000 Brazos (TX) River Au. Ref. PCR (TXU Energy Co. LLC Proj.),
Ser. 2003 D, 5.40%, due 10/1/29 Putable 10/1/14 Baa2 1,031++
1,000 Brazos (TX) River Au. Ref. Rev. (Reliant Energy, Inc. Proj.),
Ser. 1999 B, 7.75%, due 12/1/18 Ba1 BBB- 1,087++
4,000 Brazos (TX) River Harbor Navigation Dist. Env. Fac. Rev.
(Dow Chemical Co. Proj.), Ser. 2002 B-2,
4.75%, due 5/15/33 Putable 5/15/07 A3 A 4,190++
2,500 Broward Co. (FL) G.O., Ser. 2001 A, 5.25%, due 1/1/18 Aa1 2,640
5,000 Burke Co. (GA) Dev. Au. PCR (Georgia Pwr. Co. Plant Vogtle Proj.),
Ser. 2001, 4.45%, due 1/1/32 A2 A 5,242++
3,500 California Poll. Ctrl. Fin. Au. Solid Waste Disp. Rev.
(Republic Svc., Inc. Proj.), Ser. 2002 B, 5.25%, due 6/1/23 Baa3 BBB 3,537++
2,500 California St. Dept. of Wtr. Res. Pwr. Supply Rev., Ser. 2002 A,
5.75%, due 5/1/17 A3 BBB+ 2,708
3,460 California St. Dept. of Wtr. Res. Pwr. Supply Rev. Ser. 2002 A,
5.38%, due 5/1/22 A3 BBB+ 3,546
1,240 California Statewide CDA Hlth. Fac. Rev. (Mem. Hlth. Svcs.),
Ser. 2003 A, 6.00%, due 10/1/16 A3 A 1,349++
1,500 California Statewide CDA Rev. (East Valley Tourist Dev. Au.),
Ser. 2003 A, 9.25%, due 10/1/20 1,625^^
1,500 Chicago (IL) Metro. Wtr. Reclamation Dist. Cap. Imp. G.O.,
Ser. 2002 C, 5.38%, due 12/1/16 AAA 1,617
1,000 Clark Co. (WA) Vancouver Sch. Dist. Number 37 G.O.,
Ser. 1998, 5.13%, due 12/1/12 A3 1,088
1,765 Cumberland Co. (PA) West Shore Area Au. Hosp. Rev.
(Holy Spirit Hosp. of the Sisters of Christian Charity Proj.),
Ser. 2001, 6.05%, due 1/1/19 BBB+ 1,847++
1,100 Dallas-Fort Worth (TX) Int'l. Arpt. Fac. Imp. Corp. Rev.,
Ser. 2004 A-1, 6.15%, due 1/1/16 Baa3 BBB- 1,100++~
4,210 DCH Hlth. Care Au. (AL) Hlth. Care Fac. Rev., Ser. 2002,
5.25%, due 6/1/14 A1 A+ 4,364
1,000 Delaware River (PA-NJ) Joint Toll Bridge Comm. Sys. Rev.,
Ser. 2003, 5.25%, due 7/1/18 A2 A- 1,047
See Notes to Schedule of Investments
13
SCHEDULE OF INVESTMENTS Intermediate Municipal Fund Inc. cont'd
---------------------------------------------------------------
PRINCIPAL AMOUNT SECURITY @ RATING VALUE +
(000'S OMITTED) MOODY'S S&P (000'S OMITTED)
$ 1,000 Denton, Tarrant, & Wise Cos. (TX) Northwest Ind. Sch. Dist.
Unlimited Sch. Bldg. & Ref. G.O., Ser. 2002,
5.50%, due 8/15/17 AAA $ 1,086
2,000 Denver (CO) City & Co. Arpt. Sys. Rev., Ser. 1991 D,
7.75%, due 11/15/13 AAA 2,435
4,495 Dist. of Columbia (Washington, D.C.) Ref. G.O., Ser. 2002 C,
5.25%, due 6/1/13 AAA 4,816
1,750 Ector Co. (TX) Hosp. Dist. Hosp. Rev., Ser. 2002 A,
5.63%, due 4/15/16 A2 A- 1,806
1,745 Ector Co. (TX) Hosp. Dist. Hosp. Rev., Ser. 2002 A,
5.63%, due 4/15/17 A2 A- 1,795
3,000 Fiddlers Creek (FL) Comm. Dev. Dist. Number 2 Spec.
Assessment Rev., Ser. 2003 A, 6.00%, due 5/1/16 BB- 3,010
825 Fort Bend Co. (TX) Ind. Dev. Corp. Ref. PCR (Frito-Lay, Inc. Proj.),
Ser. 1987, 3.00%, due 10/1/11 A1 840++
2,000 Freeborn Co. (MN) Hsg. & Redev. Au. Lease Rev. (Criminal
Justice Ctr. Proj.), Ser. 2002, 5.38%, due 2/1/17 Baa1 2,041
5,000 Golden St. (CA) Tobacco Securitization Corp. Tobacco
Settlement Asset-Backed Rev., Ser. 2003 A-1,
6.25%, due 6/1/33 Baa3 BBB 4,683
5,130 Illinois Ed. Fac. Au. Rev. (Field Museum of Natural History),
Ser. 2002, 4.30%, due 11/1/36 A2 A 5,081++
3,560 Indiana Bond Bank Rev., Ser. 2002 B, 5.25%, due 2/1/18 Baa2 A- 3,780
10,000 Indiana Bond Bank Rev. (St. Revolving Fund Prog.), Ser. 2001 A,
5.38%, due 2/1/17 AAA 10,845
2,050 Indiana St. Hlth. Fac. Fin. Au. Rev. (Hlth. Sys. Sisters of
St. Francis), Ser. 2001, 5.35%, due 11/1/15 Aa3 A 2,149++
1,070 Ingham & Clinton Cos. (MI) East Lansing Bldg. Au. Ref. G.O.,
Ser. 1999, 5.25%, due 10/1/16 AA 1,142
3,000 Iowa Tobacco Settlement Au. Tobacco Settlement Asset-Backed
Rev., Ser. 2001 B, 5.30%, due 6/1/25 Baa3 BBB 2,514
2,000 Jasper (IN) Hosp. Au. Hosp. Fac. Ref. Rev. (Mem. Hosp. &
Hlth. Care Ctr. Proj.), Ser. 2002, 5.50%, due 11/1/17 AA 2,115++
1,050 Kent Co. (MI) Forest Hills Pub. Sch. Unlimited G.O., Ser. 2000,
5.25%, due 5/1/19 Aa2 1,105
2,000 Lehigh Co. (PA) Gen. Purp. Au. Rev. (KidsPeace Oblig. Group),
Ser. 1998, 6.00%, due 11/1/23 Ba2 1,956++
2,000 Lubbock (TX) Hlth. Fac. Dev. Corp. Rev. (St. Joseph Hlth. Sys.),
Ser. 1998, 5.25%, due 7/1/16 Aa3 AA- 2,058++
1,375 Macomb Co. (MI) New Haven Comm. Sch. Bldg. & Site G.O.,
Ser. 2002, 5.25%, due 5/1/17 Aa1 AA+ 1,460
1,000 Martin Co. (NC) Ind. Fac. & Poll. Ctrl. Fin. Au. Solid Waste Disp.
Rev. (Weyerhaeuser Co. Proj.), Ser. 1994, 6.80%, due 5/1/24 Baa2 BBB 1,024++
1,000 Maryland St. Hlth. & Higher Ed. Fac. Au. Rev.
(Union Hosp. of Cecil Co.), Ser. 2002, 5.50%, due 7/1/14 A3 1,068++
2,400 Mashantucket (CT) Western Pequot Tribe Spec. Rev., Sub.
Ser. 1997 B, 5.70%, due 9/1/12 Baa3 2,548**
2,450 Massachusetts St. Hlth. & Ed. Fac. Au. Rev.
(Caritas Christi Oblig. Group), Ser. 1999 A, 5.70%, due 7/1/15 A+ 2,471++
2,810 Massachusetts St. Hlth. & Ed. Fac. Au. Rev.
(Milford-Whitinsville Reg. Hosp.), Ser. 1998 C,
5.75%, due 7/15/13 Baa2 BBB 2,864++
5,000 Massachusetts St. Wtr. Poll. Abatement Trust Rev.,
Ser. 2001-7, 5.25%, due 2/1/16 AAA 5,325
5,030 Massachusetts St. Wtr. Poll. Abatement Trust Rev.
(MWRA Prog.), Ser. 2002 A, 5.25%, due 8/1/19 Aaa AAA 5,312
14
NEUBERGER BERMAN APRIL 30, 2004 (UNAUDITED)
SCHEDULE OF INVESTMENTS Intermediate Municipal Fund Inc. cont'd
---------------------------------------------------------------
PRINCIPAL AMOUNT SECURITY @ RATING VALUE+
(000'S OMITTED) MOODY'S S&P (000'S OMITTED)
$ 3,085 Memphis-Shelby Co. (TN) Arpt. Au. Spec. Fac. Ref. Rev.
(Federal Express Corp.), Ser. 2002, 5.05%, due 9/1/12 Baa2 BBB $ 3,179++
1,750 Miami Beach (FL) Hlth. Fac. Au. Hosp. Ref. Rev. (Mount Sinai
Med. Ctr. Florida Proj.), Ser. 2004, 6.25%, due 11/15/09 Ba2 BB 1,747++
1,500 Michigan St. Bldg. Au. Rev. (Fac. Prog.), Ser. 2001 II,
5.50%, due 10/15/18 Aa1 AA+ 1,625
2,735 Michigan Strategic Fund Solid Waste Disp. Ltd. Oblig. Ref. Rev.
(Waste Mgt. Inc. Proj.), Ser. 2002, 4.20%, due 12/1/12 BBB 2,799++
2,000 Missouri St. Env. Imp. & Energy Res. Au. Wtr. Poll. Ctrl. &
Drinking Wtr. Rev., Ser. 2002 B, 5.50%, due 7/1/16 AAA 2,202
1,240 Missouri St. Hsg. Dev. Comm. Multi-Family Hsg. Rev.,
Ser. 2001 II, 5.25%, due 12/1/16 AA 1,296~~
775 Missouri St. Hsg. Dev. Comm. Multi-Family Hsg. Rev.,
Ser. 2001 III, 5.05%, due 2/1/15 AA 813
5,000 Montgomery Co. (PA) Higher Ed. & Hlth. Au. Hosp. Rev.
(Abington Mem. Hosp. Proj.), Ser. 2002 A, 5.00%, due 6/1/19 A 5,054++
3,000 Moraine (OH) Solid Waste Disp. Rev. (General Motors
Corp. Proj.), Ser. 1994, 6.75%, due 7/1/14 A3 BBB 3,294++
2,500 Morehouse Parish (LA) Ref. PCR (Int'l. Paper Co. Proj.),
Ser. 2001 A, 5.25%, due 11/15/13 Baa2 BBB 2,644++
2,000 Nevada St. Cap. Imp. Ltd. G.O., Ser. 1998 B,
5.13%, due 4/15/17 Aa2 2,098
6,900 New Jersey Ed. Fac. Au. Rev. (Stevens Institute of Technology),
Ser. 2002 C, 5.25%, due 7/1/17 Baa1 A- 7,169++
4,000 New Jersey Hlth. Care Fac. Fin. Au. Rev.
(Somerset Med. Ctr. Issue), Ser. 2003, 5.50%, due 7/1/18 Baa2 4,092++
3,250 New York City (NY) G.O., Ser. 2002 C, 5.50%, due 8/1/15 A2 3,483
2,580 New York City (NY) IDA Civic Fac. Rev. (Lycee Francais de
New York Proj.), Ser. 2002 A, 5.50%, due 6/1/14 A 2,749++
1,000 New York Convention Ctr. Operating Corp. Cert. of Participation
(Yale Bldg. Acquisition Proj.), Ser. 2003, 5.25%, due 6/1/08 BB+ 1,028
3,500 New York St. Dorm. Au. Personal Income Tax Rev., Ser. 2003 A,
5.38%, due 3/15/20 AA 3,738
1,000 New York St. Dorm. Au. Rev. (Mount Sinai NYU Hlth. Oblig. Group),
Ser. 2000 C, 6.00%, due 7/1/26 Baa3 1,006++
1,300 New York St. Urban Dev. Corp. Ref. Rev. (Correctional Cap. Fac.),
Ser. 1998, 5.00%, due 1/1/14 A3 AA- 1,351
4,780 North Central (TX) Hlth. Fac. Dev. Corp. Hosp. Ref. Rev.
(Baylor Hlth. Care Sys. Proj.), Ser. 1998, 5.10%, due 5/15/13 Aa3 AA- 4,959++
3,760 Ohio Air Quality Dev. Au. Env. Imp. Ref. Rev. (USX Corp. Proj.),
Ser. 1995, 5.00%, due 11/1/15 Baa1 4,001++
2,085 Palm Beach Co. (FL) Hlth. Fac. Au. Hosp. Ref. Rev.
(BRCH Corp. Oblig. Group), Ser. 2001, 5.00%, due 12/1/12 A+ 2,145++
3,850 Royal Oak (MI) Hosp. Fin. Au. Hosp. Ref. Rev.
(William Beaumont Hosp.), Ser. 1996 I, 6.25%, due 1/1/12 Aa3 AA- 4,355++
6,795 San Antonio (TX) Ind. Sch. Dist. Unlimited Tax G.O., Ser. 2001 B,
5.38%, due 8/15/17 Aaa AAA 7,279
1,240 San Antonio (TX) Unrefunded Balance Cert. of Obligation G.O.,
Ser. 2002, 5.00%, due 2/1/14 Aa2 AA+ 1,308
740 San Diego (CA) Redev. Agcy. Sub. Parking Rev.
(Centre City Redev. Proj.), Ser. 2003 B, 5.00%, due 9/1/17 Baa2 A- 743
2,000 Sayre (PA) Hlth. Care Fac. Au. Rev. (Guthrie Hlth. Proj.),
Ser. 2002 A, 5.75%, due 12/1/21 A- 2,078++
1,625 Skagit Co. (WA) Pub. Hosp. Dist. Ref. Rev., Ser. 2003,
6.00%, due 12/1/18 Baa3 1,651
See Notes to Schedule of Investments
15
SCHEDULE OF INVESTMENTS Intermediate Municipal Fund Inc. cont'd
---------------------------------------------------------------
PRINCIPAL AMOUNT SECURITY @ RATING VALUE+
(000'S OMITTED) MOODY'S S&P (000'S OMITTED)
$ 2,345 South Carolina Jobs Econ. Dev. Au. Hosp. Ref. Rev.
(Palmetto Hlth. Alliance), Ser. 2003 A, 6.00%, due 8/1/13 Baa2 BBB $ 2,506++
2,000 South Carolina Jobs Econ. Dev. Au. Hosp. Ref. Rev.
(Palmetto Hlth. Alliance), Ser. 2003 A, 6.13%, due 8/1/23 Baa2 BBB 2,060++
155 Spokane Co. (WA) Ltd. Tax G.O., Ser. 1998,
5.10%, due 12/1/17 Aa3 161
900 St. Louis (MO) IDA Rev. (St. Louis Convention Ctr. Headquarters
Hotel Proj.), Ser. 2000 A, 7.00%, due 12/15/15 Baa3 860++
2,540 St. Paul (MN) Port Au. Lease Rev. (Office Bldg. at Cedar Street),
Ser. 2002, 5.00%, due 12/1/17 Aa1 2,661
500 Texas Std. Hsg. Corp. Std. Hsg. Rev. (Midwestern St. Univ. Proj.),
Ser. 2002, 5.50%, due 9/1/12 Baa3 511
1,000 Tobacco Settlement Fin. Corp. (LA) Tobacco Settlement
Asset-Backed Rev., Ser. 2001 B, 5.50%, due 5/15/30 Baa3 BBB 863
1,085 Tyler (TX) Hlth. Fac. Dev. Corp. Hosp. Rev. (Mother Frances Hosp.
Reg. Hlth. Care Ctr. Proj.), Ser. 2003, 5.25%, due 7/1/13 Baa1 1,124
3,500 Union Co. (SC) IDR (Federal Paper Board Co., Inc. Proj.),
Ser. 1989, 4.55%, due 11/1/09 Baa2 BBB 3,598++
2,950 Univ. of Texas Board of Regents Fin. Sys. Rev., Ser. 1999 B,
5.38%, due 8/15/18 AAA 3,287
1,900 Univ. of Wisconsin Hosp. & Clinics Au. Hosp. Rev., Ser. 2002 B,
5.50%, due 4/1/12 A1 2,009
1,750 Verrado (AZ) Comm. Fac. Dist. Number 1 G.O., Ser. 2003,
6.15%, due 7/15/17 BB- 1,745
1,000 Virgin Islands Pub. Fin. Au. Refinery Fac. Rev.
(Hovensa Refinery Proj.), Ser. 2003, 6.13%, due 7/1/22 Baa3 BBB- 1,037
1,500 Virgin Islands Pub. Fin. Au. Refinery Fac. Rev.
(Hovensa Refinery Proj.), Ser. 2004, 5.88%, due 7/1/22 Baa3 BBB- 1,530++
3,125 Washington St. Hlth. Care Fac. Au. Rev. (Yakima Valley Mem.
Hosp. Assoc.), Ser. 2002, 5.00%, due 12/1/17 A 3,127++
1,000 Washington St. Var. Purp. G.O., Ser. 1999 A,
4.75%, due 7/1/17 Aa1 AA+ 1,013
2,000 Westmoreland Co. (PA) IDA Gtd. Rev. (National Waste &
Energy Corp., Valley Landfill Expansion Proj.), Ser. 1993,
5.10%, due 5/1/18 BBB 2,077++
2,780 Wisconsin St. Hlth. & Ed. Fac. Au. Rev. (Kenosha Hosp. &
Med. Ctr., Inc. Proj.), Ser. 1999, 5.50%, due 5/15/15 A 2,882++
--------
243,152
--------
TAX-EXEMPT CASH EQUIVALENT SECURITIES--BACKED BY LETTERS OF CREDIT (0.1%)
LASALLE NATIONAL BANK
200 Grand Forks (ND) Hosp. Fac. Rev. (United Hosp. Oblig.
Group Proj.), Ser. 1992, 1.10%, VRDN due 12/1/16 VMIG1 200++
--------
16
NEUBERGER BERMAN APRIL 30, 2004 (UNAUDITED)
SCHEDULE OF INVESTMENTS Intermediate Municipal Fund Inc. cont'd
---------------------------------------------------------------
PRINCIPAL AMOUNT SECURITY @ RATING VALUE +
(000'S OMITTED) MOODY'S S&P (000'S OMITTED)
TAX-EXEMPT CASH EQUIVALENT SECURITIES--BACKED BY INSURANCE (0.5%)
MUNICIPAL BOND INVESTORS ASSURANCE CORP.
$ 500 California Hsg. Fin. Agcy. Home Mtge. Rev., Ser. 2002 J,
1.11%, VRDN due 2/1/33 VMIG1 A-1+ $ 500
1,000 Lehigh Co. (PA) Gen. Purp. Au. Hosp. Rev. (Lehigh Valley Hlth.),
Ser. 1999 B, 1.05%, VRDN due 7/1/29 VMIG1 1,000++
---------
1,500
---------
TOTAL INVESTMENTS (158.4%) (COST $467,058) 470,232++
Cash, receivables and other assets, less liabilities (2.0%) 5,994
Liquidation Value of Auction Market Preferred Shares [(60.4%)] (179,400)
---------
TOTAL NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS (100.0%) $ 296,826
---------
See Notes to Schedule of Investments
17
SCHEDULE OF INVESTMENTS New York Intermediate Municipal Fund Inc.
-----------------------------------------------------------------
PRINCIPAL AMOUNT SECURITY @ RATING VALUE +
(000'S OMITTED) MOODY'S S&P (000'S OMITTED)
TAX-EXEMPT SECURITIES--BACKED BY INSURANCE (34.7%)
AMERICAN CAPITAL ACCESS
$1,060 Puerto Rico Ind., Tourist, Ed., Med., & Env. Ctrl. Fac. Rev.,
(Polytechnic Univ. of Puerto Rico Proj.), Ser. 2002 A,
5.25%, due 8/1/16 A $ 1,118++
AMERICAN MUNICIPAL BOND ASSURANCE CORP.
2,000 Metro. Trans. Au. (NY) Ref. Rev., Ser. 2002 A,
5.50%, due 11/15/15 AAA 2,197
2,920 New York City (NY) IDA Civic Fac. Rev. (Packer Collegiate
Institute Proj.), Ser. 2002, 5.00%, due 6/1/22 Aaa AAA 2,982++
960 New York City (NY) Muni. Wtr. Fin. Au. Wtr. & Swr. Sys. Rev.,
Ser. 1992 A, 5.88%, due 6/15/13 Aaa 1,098
2,025 New York City (NY) Trans. Fin. Au. Ref. Rev., Ser. 2002 C,
5.25%, due 8/1/17 AAA 2,163
2,410 New York St. Dorm. Au. Rev. (Rochester Institute of Technology
Proj.), Ser. 2002 A, 5.25%, due 7/1/19 Aaa 2,552++
3,000 Port Authority of NY & NJ Rev., Ser. 2002,
5.50%, due 12/15/12 AAA 3,258
1,535 Ulster Co. (NY) Res. Rec. Agcy. Solid Waste Sys. Ref. Rev.,
Ser. 2002, 5.25%, due 3/1/16 AAA 1,631
FINANCIAL GUARANTY INSURANCE CO.
2,505 Metro. Trans. Au. (NY) Dedicated Tax Fund Rev., Ser. 2001 A,
5.25%, due 11/15/14 AAA 2,703
FINANCIAL SECURITY ASSURANCE INC.
500 Long Island (NY) Pwr. Au. Elec. Sys. Rev., Ser. 1998 A,
5.13%, due 12/1/16 Aaa AAA 528~~
1,410 New York City (NY) Hlth. & Hosp. Corp. Rev., Ser. 2002 A,
5.50%, due 2/15/13 AAA 1,552
MUNICIPAL BOND INVESTORS ASSURANCE CORP.
2,000 New York St. Dorm. Au. Insured Rev. (Long Island Jewish
Med. Ctr.), Ser. 1998, 5.00%, due 7/1/18 AAA 2,041++
1,600 New York St. Dorm. Au. Insured Rev. (The Culinary Institute of
America), Ser. 1999, 5.38%, due 7/1/15 AAA 1,729++
1,980 New York St. Dorm. Au. Rev. (New York Med. College Proj.),
Ser. 1998, 5.00%, due 7/1/21 Aaa AAA 2,023++
--------
27,575
--------
TAX-EXEMPT SECURITIES--OTHER (123.1%)
3,000 Albany (NY) IDA Civic Fac. Rev., (Charitable Leadership
Foundation Ctr. for Med. Science Proj.), Ser. 2002 A,
6.00%, due 7/1/19 Baa3 3,149
800 Brazos (TX) River Au. Ref. PCR (TXU Energy Co. LLC Proj.),
Ser. 2003 A, 6.75%, due 4/1/38 Putable 4/1/13 Baa2 BBB 899
750 Brazos (TX) River Au. Ref. Rev. (Reliant Energy, Inc. Proj.),
Ser. 1999 B, 7.75%, due 12/1/18 Ba1 BBB- 815++
1,000 Brazos (TX) River Harbor Navigation Dist. of Brazoria Co.
Env. Fac. Rev. (Dow Chemical Co. Proj.), Ser. 2002 A-4,
5.20%, due 5/15/33 Putable 5/15/08 A3 A 1,064++
1,590 Cumberland Co. (PA) West Shore Area Au. Hosp. Rev.,
(Holy Spirit Hosp. of the Sisters of Christian Charity Proj.),
Ser. 2001, 5.90%, due 1/1/17 BBB+ 1,667++
400 Dallas-Fort Worth (TX) Int'l. Arpt. Fac. Imp. Corp. Rev.,
Ser. 2004 A-1, 6.15%, due 1/1/16 Baa3 BBB- 400++~
1,000 De Kalb Co. (GA) Dev. Au. Ref. PCR (General Motors Corp. Proj.),
Ser. 2002, 6.00%, due 3/15/21 A3 BBB 1,015++
18
NEUBERGER BERMAN APRIL 30, 2004 (UNAUDITED)
SCHEDULE OF INVESTMENTS New York Intermediate Municipal Fund Inc. cont'd
------------------------------------------------------------------------
PRINCIPAL AMOUNT SECURITY @ RATING VALUE +
(000'S OMITTED) MOODY'S S&P (000'S OMITTED)
$1,000 Dutchess Co. (NY) IDA Civic Fac. Ref. Rev. (Marist College Proj.),
Ser. 2003 A, 5.15%, due 7/1/17 Baa1 $ 1,026++
2,000 Dutchess Co. (NY) IDA Ind. Dev. Rev. (IBM Proj.), Ser. 1999,
5.45%, due 12/1/29 A1 A+ 2,180++
585 Kenmore Village (NY) Hsg. Au. Std. Hsg. Rev. (St. Univ. of NY
at Buffalo Std. Apt. Proj.), Ser. 1999 A, 5.40%, due 8/1/12 Baa1 AA 624
2,000 Long Island Pwr. Au. (NY) Elec. Sys. Gen. Rev., Ser. 1998 A,
5.50%, due 12/1/13 Aaa AAA 2,259
500 Miami Beach (FL) Hlth. Fac. Au. Hosp. Ref. Rev. (Mount Sinai
Med. Ctr. of Florida Proj.), Ser. 2004, 6.25%, due 11/15/09 Ba2 BB 499++
980 Monroe Co. (NY) IDA Std. Hsg. Rev., (Collegiate Hsg.
Foundation - Rochester Institute of Technology Proj.),
Ser. 1999 A, 5.25%, due 4/1/19 Baa3 968++
1,000 Monroe Co. (NY) Newpower Corp. Pwr. Fac. Rev., Ser. 2003,
5.10%, due 1/1/16 BBB+ 1,011
1,000 Monroe Co. (NY) Pub. Imp. Ref. G.O., Ser. 1996,
6.00%, due 3/1/13 A3 AA- 1,133
1,000 Morehouse Parish (LA) Ref. PCR (Int'l. Paper Co. Proj.),
Ser. 2001 A, 5.25%, due 11/15/13 Baa2 BBB 1,058++
1,000 New York City (NY) G.O., Ser. 1998 J, 5.00%, due 8/1/11 A2 A 1,044
1,000 New York City (NY) G.O., Ser. 2002 A, 5.75%, due 8/1/16 A2 A 1,081
750 New York City (NY) G.O., Ser. 2002 C, 5.50%, due 8/1/15 A2 804
4,000 New York City (NY) Hsg. Dev. Corp. Multi-Family Hsg. Rev.,
Ser. 2002 E-2, 5.05%, due 11/1/23 Aa2 AA 4,018
1,000 New York City (NY) IDA Civic Fac. Rev. (Lycee Francais de
New York Proj.), Ser. 2002 A, 5.50%, due 6/1/15 A 1,062++
1,030 New York City (NY) IDA Civic Fac. Rev. (Lycee Francais de
New York Proj.), Ser. 2002 A, 5.50%, due 6/1/17 A 1,080++
500 New York City (NY) IDA Ind. Dev. Rev. (Harlem Auto Mall Proj.),
Ser. 2004, 5.13%, due 12/30/23 Baa1 BBB 476++
4,000 New York City (NY) Muni. Wtr. Fin. Au. Wtr. & Swr. Sys. Rev.,
Ser. 2002 D, 5.25%, due 6/15/15 Aa2 AA 4,281
3,000 New York City (NY) Trans. Fin. Au. Ref. Rev., Ser. 2002 B,
5.25%, due 2/1/29 Aa2 3,238
800 New York Convention Ctr. Operating Corp. Cert. of Participation
(Yale Bldg. Acquisition Proj.), Ser. 2003, 5.25%, due 6/1/08 Aa1 822
2,000 New York St. Dorm. Au. Court Fac. Lease Rev. (New York City
Issue), Ser. 2003 A, 5.50%, due 5/15/17 A3 A 2,138
1,675 New York St. Dorm. Au. Insured Rev. (Long Island Univ.),
Ser. 2003 A, 5.25%, due 9/1/15 AA 1,782++
3,000 New York St. Dorm. Au. Ref. Rev. (North Gen. Hosp. Proj.),
Ser. 2003, 5.75%, due 2/15/17 AA- 3,295++
1,125 New York St. Dorm. Au. Rev. (City Univ. Sys. Proj.),
Ser. 1995 A, 5.63%, due 7/1/16 A3 AA- 1,253
1,010 New York St. Dorm. Au. Rev. (Columbia Univ. Proj.),
Ser. 2001 A, 5.25%, due 7/1/16 AAA 1,090++
2,985 New York St. Dorm. Au. Rev. (Lenox Hill Hosp. Oblig.
Group Proj.), Ser. 2001, 5.75%, due 7/1/14 A3 3,265++
2,000 New York St. Dorm. Au. Rev. (Lenox Hill Hosp. Oblig.
Group Proj.), Ser. 2001, 5.75%, due 7/1/16 A3 A- 2,149++
2,500 New York St. Dorm. Au. Rev. (Mount Sinai NYU Hlth.
Oblig. Group), Ser. 2000 B, 6.25%, due 7/1/22 Baa3 2,524++
525 New York St. Dorm. Au. Rev. (New York Methodist Hosp.),
Ser. 2004, 5.25%, due 7/1/18 A3 538
See Notes to Schedule of Investments
19
SCHEDULE OF INVESTMENTS New York Intermediate Municipal Fund Inc. cont'd
------------------------------------------------------------------------
PRINCIPAL AMOUNT SECURITY @ RATING VALUE +
(000'S OMITTED) MOODY'S S&P (000'S OMITTED)
$ 500 New York St. Dorm. Au. Rev. (North Shore-Long Island
Jewish Oblig. Group), Ser. 2003, 5.00%, due 5/1/18 A3 $ 500++
2,855 New York St. Dorm. Au. Rev. (Rivington House Hlth. Care Fac.),
Ser. 2002, 5.25%, due 11/1/15 Aa1 3,035++
3,000 New York St. Dorm. Au. Rev. (SS Joachim & Anne
Residence Proj.), Ser. 2002, 4.60%, due 7/1/16 Aa3 2,982
250 New York St. Dorm. Au. Secured Hosp. Ref. Rev. (Brookdale
Hosp. Med. Ctr.), Ser. 1998 J, 5.20%, due 2/15/16 A3 AA- 260++
5,500 New York St. Dorm. Au. St. Personal Income Tax Rev.,
Ser. 2003 A, 5.38%, due 3/15/17 AA 5,936
1,000 New York St. Dorm. Au. Third Gen. Resolution Rev.
(St. Univ. Ed. Fac. Issue Proj.), Ser. 2002 B,
5.25%, due 11/15/23 A3 AA- 1,077
5,000 New York St. Energy Res. & Dev. Au. Fac. Rev. (Consolidated
Edison Co. of New York, Inc. Proj.),
Ser. 2001 A, 4.70%, due 6/1/36 A1 A+ 5,031++
2,000 New York St. Mtge. Agcy. Homeowner Mtge. Rev.,
Ser. 1997-67, 5.70%, due 10/1/17 Aa1 2,098
2,000 New York St. Pwr. Au. Rev., Ser. 2002 A, 5.25%, due 11/15/16 Aa2 AA- 2,148
500 New York St. Urban Dev. Corp. Correctional & Youth Fac. Svc. Rev.,
Ser. 2002 C, 4.00%, due 1/1/20 AA- 504
1,325 New York St. Urban Dev. Corp. Proj. Ref. Rev. (Ctr. for Ind.
Innovation), Ser. 1995, 6.25%, due 1/1/09 A3 AA- 1,501
2,000 Niagara Co. (NY) IDA Civic Fac. Rev. (Niagara Univ. Proj.),
Ser. 2001 A, 5.50%, due 11/1/16 AA 2,131++
2,500 Niagara Co. (NY) IDA Solid Waste Disp. Fac. Ref. Rev.
(American Ref.-Fuel Co. of Niagara),
Ser. 2001 C, 5.63%, due 11/15/24 Baa1 BBB 2,612
1,000 North Carolina Muni. Pwr. Agcy. Number 1 Catawba Elec. Rev.,
Ser. 2003 A, 5.50%, due 1/1/14 Baa1 BBB+ 1,069
965 Puerto Rico Children's Trust Tobacco Settlement
Asset-Backed Rev., Ser. 2002, 5.38%, due 5/15/33 Baa3 BBB 908
1,000 Santa Rosa (CA) Rancheria Tachi Yokut Tribe Enterprise Rev.,
Ser. 2003, 6.13%, due 3/1/13 BBB 993
1,000 Tobacco Settlement Fin. Corp. (LA) Tobacco Settlement
Asset-Backed Rev., Ser. 2001 B, 5.50%, due 5/15/30 Baa3 BBB 863
3,000 Triborough Bridge & Tunnel Au. (NY) Gen. Purp. Ref. Rev.,
Ser. 2002 B, 5.25%, due 11/15/18 Aa3 AA- 3,191
1,100 Triborough Bridge & Tunnel Au. (NY) Gen. Purp. Rev.,
Ser. 2001 A, 5.00%, due 1/1/19 Aa3 AA- 1,134
500 United Nations (NY) Dev. Corp. Sr. Lien Ref. Rev.,
Ser. 2004 A, 5.25%, due 7/1/17 A3 521
500 Verrado (AZ) Comm. Fac. Dist. Number 1 G.O.,
Ser. 2003, 6.15%, due 7/15/17 BB- 499
250 Virgin Islands Pub. Fin. Au. Refinery Fac. Rev.
(Hovensa Refinery Proj.), Ser. 2003, 6.13%, due 7/1/22 Baa3 BBB- 259
750 Virgin Islands Pub. Fin. Au. Rev. (Sub. Lien/Cap. Proj.),
Ser. 1998 E, 6.00%, due 10/1/22 BBB 756
1,000 Westchester Co. (NY) IDA Continuing Care
Retirement Comm. Rev. (Kendal on Hudson Proj.),
Ser. 2003 B, 5.70%, due 1/1/34 BB 992++
1,000 Yonkers (NY) IDA Civic Fac. Rev.
(Comm. Dev. Properties - Yonkers, Inc.),
Ser. 2001 A, 6.25%, due 2/1/16 Baa3 BBB- 1,053++
--------
97,760
--------
20
NEUBERGER BERMAN APRIL 30, 2004 (UNAUDITED)
SCHEDULE OF INVESTMENTS New York Intermediate Municipal Fund Inc. cont'd
------------------------------------------------------------------------
PRINCIPAL AMOUNT SECURITY @ RATING VALUE +
(000'S OMITTED) MOODY'S S&P (000'S OMITTED)
TAX-EXEMPT CASH EQUIVALENT SECURITIES--BACKED BY LETTERS OF CREDIT (1.1%)
MORGAN GUARANTY TRUST CO.
$ 900 New York City (NY) G.O., Sub. Ser. 1993 B-2, 1.06%,
VRDN due 8/15/19 VMIG1 $ 900
--------
TOTAL INVESTMENTS (158.9%) (COST $125,489) 126,235##
Cash, receivables and other assets, less liabilities (1.8%) 1,461
Liquidation Value of Auction Market Preferred Shares [(60.7%)] (48,250)
--------
TOTAL NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS (100.0%) $ 79,446
--------
See Notes to Schedule of Investments
21
NOTES TO SCHEDULE OF INVESTMENTS
--------------------------------
+ Investments by each Fund are valued daily by obtaining bid price
quotations from independent pricing services on all securities
available in each service's data base. For all other securities
requiring daily quotations, bid prices are obtained from
principal market makers in those securities or, if quotations are
not available, by a method the Board of Directors of Neuberger
Berman California Intermediate Municipal Fund Inc.
("California"), Neuberger Berman Intermediate Municipal Fund Inc.
("Intermediate"), or Neuberger Berman New York Intermediate
Municipal Fund Inc. ("New York") (individually a "Fund",
collectively, the "Funds") (each a "Board"), believes accurately
reflects fair value. Numerous factors may be considered when
determining the fair value of a security, including available
analyst, media or other reports, trading in futures or ADRs and
whether the issuer of the security being fair valued has other
securities outstanding. Short-term debt securities with less than
60 days until maturity may be valued at cost which, when combined
with interest earned, approximates market value.
## At April 30, 2004, selected Fund information on a U.S. Federal
income tax basis was as follows:
GROSS GROSS NET
(000'S OMITTED) UNREALIZED UNREALIZED UNREALIZED
NEUBERGER BERMAN COST APPRECIATION DEPRECIATION APPRECIATION
CALIFORNIA INTERMEDIATE MUNICIPAL FUND INC. $153,534 $1,260 $1,021 $ 239
INTERMEDIATE MUNICIPAL FUND INC. 467,058 5,239 2,065 3,174
NEW YORK INTERMEDIATE MUNICIPAL FUND INC. 125,489 1,171 425 746
@ Municipal securities held by the Funds are within the four
highest rating categories (with respect to at least 80% of total
assets) assigned by a nationally recognized statistical rating
organization ("NRSRO") such as Moody's Investors Service, Inc.,
Standard & Poor's, or Fitch Investors Services, Inc. or, where
not rated, are determined by the Funds' investment manager to be
of comparable quality. Approximately 79%, 74%, and 54% of the
municipal securities held by California, Intermediate, and New
York, respectively, have credit enhancement features backing
them, which the Funds may rely on, such as letters of credit,
insurance, or guarantees. Without these credit enhancement
features the securities may or may not meet the quality standards
of the Funds. Pre-refunded bonds are supported by securities in
escrow issued or guaranteed by the U.S. Government, its agencies,
or instrumentalities. The amount escrowed is sufficient to pay
the periodic interest due and the principal of these bonds.
Putable bonds give the Funds the right to sell back the issue on
the date specified.
++ Security is guaranteed by the corporate or non-profit obligor.
** Security exempt from registration under the Securities Act of
1933. These securities may be resold in transactions exempt from
registration, normally to qualified institutional buyers under
Rule 144A. At April 30, 2004, these securities amounted to
$2,548,000 or 0.9% of net assets for Intermediate.
~ Security purchased on a when-issued basis. At April 30, 2004,
these securities amounted to $1,100,000 and $400,000 for
Intermediate and New York, respectively.
~~ Security is segregated as collateral for when-issued purchase
commitments.
^^ Not rated by a nationally recognized statistical rating
organization.
See Notes to Financial Statements
22
This page has been left blank intentionally
23
NEUBERGER BERMAN APRIL 30, 2004 (UNAUDITED)
STATEMENTS OF ASSETS AND LIABILITIES
------------------------------------
CALIFORNIA INTERMEDIATE NEW YORK
NEUBERGER BERMAN INTERMEDIATE MUNICIPAL CLOSED-END FUNDS INTERMEDIATE MUNICIPAL INTERMEDIATE
(000'S OMITTED EXCEPT PER SHARE AMOUNTS) MUNICIPAL FUND FUND MUNICIPAL FUND
ASSETS
INVESTMENTS IN SECURITIES, AT MARKET VALUE* (NOTE A)--SEE
SCHEDULE OF INVESTMENTS $153,773 $470,232 $126,235
Cash 99 87 46
-----------------------------------------------------------------------------------------------------------------------------
Interest receivable 2,382 7,922 2,085
Receivable for securities sold 100 107 --
-----------------------------------------------------------------------------------------------------------------------------
Prepaid expenses and other assets 285 735 234
=============================================================================================================================
TOTAL ASSETS 156,639 479,083 128,600
=============================================================================================================================
LIABILITIES
Dividends payable--preferred shares 71 212 58
Dividends payable--common shares 424 1,372 362
-----------------------------------------------------------------------------------------------------------------------------
Payable for securities purchased 500 1,100 400
Payable to administrator (Note B) 38 115 31
-----------------------------------------------------------------------------------------------------------------------------
Accrued expenses and other payables 51 58 53
=============================================================================================================================
TOTAL LIABILITIES 1,084 2,857 904
=============================================================================================================================
AUCTION MARKET PREFERRED SHARES SERIES A & B AT LIQUIDATION VALUE
3,000, 8,000 and 3,000 shares authorized; 2,360,
7,176 and 1,930 shares issued and outstanding for California,
Intermediate and New York, respectively; $.0001 par value;
$25,000 liquidation value per share (Note A) 59,000 179,400 48,250
=============================================================================================================================
NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS AT VALUE $ 96,555 $296,826 $ 79,446
=============================================================================================================================
NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS CONSIST OF:
Paid-in capital--common shares $ 96,347 $293,853 $ 79,063
Undistributed net investment income (loss) 317 655 166
-----------------------------------------------------------------------------------------------------------------------------
Accumulated net realized gains (losses) on investments (348) (856) (529)
Net unrealized appreciation (depreciation) in value of investments 239 3,174 746
=============================================================================================================================
NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS AT VALUE $ 96,555 $296,826 $ 79,446
=============================================================================================================================
COMMON SHARES OUTSTANDING ($.0001 par value; 999,997,000,
999,992,000 and 999,997,000 shares authorized for
California, Intermediate and New York, respectively) 6,792 20,705 5,575
=============================================================================================================================
NET ASSET VALUE PER COMMON SHARE OUTSTANDING $ 14.22 $ 14.34 $ 14.25
=============================================================================================================================
*COST OF INVESTMENTS $153,534 $467,058 $125,489
=============================================================================================================================
See Notes to Financial Statements
24
NEUBERGER BERMAN FOR THE SIX MONTHS ENDED APRIL 30, 2004 (UNAUDITED)
STATEMENTS OF OPERATIONS
------------------------
CALIFORNIA INTERMEDIATE NEW YORK
NEUBERGER BERMAN INTERMEDIATE MUNICIPAL CLOSED-END FUNDS INTERMEDIATE MUNICIPAL INTERMEDIATE
(000'S OMITTED) MUNICIPAL FUND FUND MUNICIPAL FUND
INVESTMENT INCOME
INCOME:
Interest income $ 3,577 $11,037 $3,001
=============================================================================================================================
EXPENSES:
Investment management fee (Note B) 198 608 163
Administration fee (Note B) 238 729 195
-----------------------------------------------------------------------------------------------------------------------------
Stock transfer agent fees 28 29 28
Auction agent fees (Note B) 74 227 61
-----------------------------------------------------------------------------------------------------------------------------
Special rate period expense (Notes A & B) 25 86 20
Audit fees 21 21 21
-----------------------------------------------------------------------------------------------------------------------------
Basic maintenance expense (Note B) 12 12 12
Custodian fees (Note B) 38 68 33
-----------------------------------------------------------------------------------------------------------------------------
Insurance expense 1 2 1
Legal fees 12 29 12
-----------------------------------------------------------------------------------------------------------------------------
Shareholder reports 7 23 7
Stock exchange listing fees 1 - 1
-----------------------------------------------------------------------------------------------------------------------------
Directors' fees and expenses 13 13 13
Miscellaneous 13 13 11
=============================================================================================================================
Total expenses 681 1,860 578
Investment management fee waived (Note B) (198) (608) (163)
=============================================================================================================================
Expenses reduced by custodian fee expense offset arrangement (Note B) (0) (0) (0)
=============================================================================================================================
Total net expenses 483 1,252 415
=============================================================================================================================
Net investment income 3,094 9,785 2,586
=============================================================================================================================
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
Net realized gain (loss) on investment securities sold (278) (99) (109)
Change in net unrealized appreciation (depreciation) in value of:
-----------------------------------------------------------------------------------------------------------------------------
Investment securities (Note A) (789) (2,410) (796)
========================================================================================================================
Net gain (loss) on investments (1,067) (2,509) (905)
DISTRIBUTIONS TO PREFERRED SHAREHOLDERS FROM:
Net investment income (426) (1,291) (347)
========================================================================================================================
NET INCREASE (DECREASE) IN NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS
RESULTING FROM OPERATIONS $ 1,601 $ 5,985 $1,334
=============================================================================================================================
See Notes to Financial Statements
25
STATEMENTS OF CHANGES IN NET ASSETS
-----------------------------------
CALIFORNIA INTERMEDIATE MUNICIPAL FUND
--------------------------------------
SIX MONTHS
ENDED YEAR
APRIL 30, ENDED
NEUBERGER BERMAN INTERMEDIATE MUNICIPAL CLOSED-END FUNDS 2004 OCTOBER 31,
(000'S OMITTED) (UNAUDITED) 2003
INCREASE (DECREASE) IN NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS:
FROM OPERATIONS:
Net investment income (loss) $ 3,094 $ 5,744
Net realized gain (loss) on investments (278) (70)
---------------------------------------------------------------------------------------------------------------
Change in net unrealized appreciation (depreciation) of investments (789) 1,031
DISTRIBUTIONS TO PREFERRED SHAREHOLDERS FROM:
Net investment income (426) (551)
===============================================================================================================
Net increase (decrease) in net assets applicable to common
shareholders resulting from operations 1,601 6,154
===============================================================================================================
DISTRIBUTIONS TO COMMON SHAREHOLDERS FROM:
Net investment income (2,547) (5,094)
===============================================================================================================
FROM CAPITAL SHARE TRANSACTIONS:
Net proceeds from underwriters' over-allotment option exercised -- 2,644
Proceeds from reinvestment of dividends -- --
---------------------------------------------------------------------------------------------------------------
Payments for preferred shares offering costs -- (744)
===============================================================================================================
Total net proceeds from capital share transactions -- 1,900
===============================================================================================================
NET INCREASE (DECREASE) IN NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS (946) 2,960
NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS:
Beginning of period 97,501 94,541
===============================================================================================================
End of period $96,555 $97,501
===============================================================================================================
Undistributed net investment income (loss) at end of period $ 317 $ 196
===============================================================================================================
See Notes to Financial Statements
26
NEUBERGER BERMAN APRIL 30, 2004 (UNAUDITED)
INTERMEDIATE MUNICIPAL FUND
---------------------------
SIX MONTHS
ENDED YEAR
APRIL 30, ENDED
NEUBERGER BERMAN INTERMEDIATE MUNICIPAL CLOSED-END FUNDS 2004 OCTOBER 31,
(000'S OMITTED) (UNAUDITED) 2003
INCREASE (DECREASE) IN NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS:
FROM OPERATIONS:
Net investment income (loss) $ 9,785 $ 18,172
Net realized gain (loss) on investments (99) (757)
----------------------------------------------------------------------------------------------------
Change in net unrealized appreciation (depreciation) of investments (2,410) 5,860
DISTRIBUTIONS TO PREFERRED SHAREHOLDERS FROM:
Net investment income (1,291) (1,773)
====================================================================================================
Net increase (decrease) in net assets applicable to common
shareholders resulting from operations 5,985 21,502
====================================================================================================
DISTRIBUTIONS TO COMMON SHAREHOLDERS FROM:
Net investment income (8,230) (16,450)
====================================================================================================
FROM CAPITAL SHARE TRANSACTIONS:
Net proceeds from underwriters' over-allotment option exercised -- 2,501
Proceeds from reinvestment of dividends -- 337
----------------------------------------------------------------------------------------------------
Payments for preferred shares offering costs -- (2,132)
====================================================================================================
Total net proceeds from capital share transactions -- 706
====================================================================================================
NET INCREASE (DECREASE) IN NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS (2,245) 5,758
NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS:
Beginning of period 299,071 293,313
====================================================================================================
End of period $296,826 $299,071
====================================================================================================
Undistributed net investment income (loss) at end of period $ 655 $ 391
====================================================================================================
NEW YORK INTERMEDIATE MUNICIPAL FUND
------------------------------------
SIX MONTHS
ENDED YEAR
APRIL 30, ENDED
NEUBERGER BERMAN INTERMEDIATE MUNICIPAL CLOSED-END FUNDS 2004 OCTOBER 31,
(000'S OMITTED) (UNAUDITED) 2003
INCREASE (DECREASE) IN NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS:
FROM OPERATIONS:
Net investment income (loss) $ 2,586 $ 4,818
Net realized gain (loss) on investments (109) (420)
-------------------------------------------------------------------------------------------------------------
Change in net unrealized appreciation (depreciation) of investments (796) 1,501
DISTRIBUTIONS TO PREFERRED SHAREHOLDERS FROM:
Net investment income (347) (457)
=============================================================================================================
Net increase (decrease) in net assets applicable to common
shareholders resulting from operations 1,334 5,442
=============================================================================================================
DISTRIBUTIONS TO COMMON SHAREHOLDERS FROM:
Net investment income (2,174) (4,347)
=============================================================================================================
FROM CAPITAL SHARE TRANSACTIONS:
Net proceeds from underwriters' over-allotment option exercised -- 3,074
Proceeds from reinvestment of dividends -- 37
-------------------------------------------------------------------------------------------------------------
Payments for preferred shares offering costs -- (626)
=============================================================================================================
Total net proceeds from capital share transactions -- 2,485
=============================================================================================================
NET INCREASE (DECREASE) IN NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS (840) 3,580
NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS:
Beginning of period 80,286 76,706
=============================================================================================================
End of period $79,446 $80,286
=============================================================================================================
Undistributed net investment income (loss) at end of period $ 166 $ 101
=============================================================================================================
27
NOTES TO FINANCIAL STATEMENTS Intermediate Municipal Closed-End Funds
---------------------------------------------------------------------
NOTE A--SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:
1 GENERAL: Neuberger Berman California Intermediate Municipal Fund
Inc. ("California"), Neuberger Berman Intermediate Municipal Fund
Inc. ("Intermediate"), and Neuberger Berman New York Intermediate
Municipal Fund Inc. ("New York") (individually a "Fund",
collectively, the "Funds") were organized as Maryland
corporations on July 29, 2002. California and New York are
registered as non-diversified, closed-end management investment
companies and Intermediate is registered as a diversified,
closed-end management investment company under the Investment
Company Act of 1940, as amended. Each Fund's Board of Directors
may classify or re-classify any unissued shares of capital stock
into one or more classes of preferred stock without the approval
of shareholders.
The preparation of financial statements in accordance with
accounting principles generally accepted in the United States
requires Neuberger Berman Management Inc. ("Management") to make
estimates and assumptions at the date of the financial
statements. Actual results could differ from those estimates.
2 PORTFOLIO VALUATION: Investment securities are valued as
indicated in the notes following the Funds' Schedule of
Investments.
3 SECURITIES TRANSACTIONS AND INVESTMENT INCOME: Securities
transactions are recorded on a trade date basis. Interest income,
including accretion of discount (adjusted for original issue
discount, where applicable) and amortization of premium, where
applicable, is recorded on the accrual basis. Realized gains and
losses from securities transactions are recorded on the basis of
identified cost and stated in the Statements of Operations.
4 FEDERAL INCOME TAXES: It is the policy of each Fund to continue
to qualify as a regulated investment company by complying with
the provisions available to certain investment companies, as
defined in applicable sections of the Internal Revenue Code, and
to make distributions of investment company taxable income and
net capital gains (after reduction for any amounts available for
U.S. Federal income tax purposes as capital loss carryforwards)
sufficient to relieve them from all, or substantially all, U.S.
Federal income taxes. Accordingly, each Fund paid no U.S. Federal
income taxes and no provision for U.S. Federal income taxes was
required.
5 DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS: Each Fund earns
income, net of expenses, daily on its investments. It is the
policy of each Fund to declare and pay dividends to common
shareholders from net investment income on a monthly basis.
Distributions from net realized capital gains, if any, are
normally distributed in December. Income dividends and capital
gain distributions to common shareholders are recorded on the
ex-dividend date. To the extent each Fund's net realized capital
gains, if any, can be offset
28
NEUBERGER BERMAN APRIL 30, 2004 (UNAUDITED)
by capital loss carryforwards, it is the policy of each Fund not
to distribute such gains. Dividends and distributions to
preferred shareholders are accrued and determined as described in
Note A-7. At October 31, 2003, the capital loss carryforwards for
each Fund were as follows:
EXPIRING IN:
2011
CALIFORNIA $ 69,587
INTERMEDIATE 757,224
NEW YORK 420,475
Each Fund distinguishes between dividends on a tax basis and a
financial reporting basis and only distributions in excess of tax
basis earnings and profits are reported in the financial
statements as a tax return of capital. Differences in the
recognition or classification of income between the financial
statements and tax earnings and profits which result in temporary
over-distributions for financial statement purposes are
classified as distributions in excess of net investment income or
accumulated net realized gains in the components of net assets on
the Statements of Assets and Liabilities.
Subsequent to April 30, 2004, each Fund declared dividends to
common shareholders from their net investment income payable June
15, 2004, to shareholders of record on May 27, 2004, with an
ex-dividend date of May 25, 2004, as follows:
DIVIDEND PER SHARE
CALIFORNIA $0.06250
INTERMEDIATE 0.06625
NEW YORK 0.06500
The tax character of distributions paid during the periods ended
October 31, 2003 and 2002 were as follows:
DISTRIBUTIONS PAID FROM:
TAX-EXEMPT INCOME ORDINARY INCOME TOTAL
2003 2002 2003 2002 2003 2002
CALIFORNIA $ 5,621,479 $-- $23,102 $-- $ 5,644,581 $--
INTERMEDIATE 18,151,315 -- 71,380 -- 18,222,695 --
NEW YORK 4,789,367 -- 14,100 -- 4,803,467 --
As of October 31, 2003, the components of distributable earnings
(accumulated losses) on a U.S. Federal income tax basis were as
follows:
UNDISTRIBUTED UNDISTRIBUTED UNDISTRIBUTED UNREALIZED LOSS
TAX-EXEMPT ORDINARY LONG-TERM APPRECIATION CARRYFORWARDS
INCOME INCOME GAIN (DEPRECIATION) AND DEFERRALS TOTAL
CALIFORNIA $ 661,743 $-- $-- $1,028,442 $ (69,587) $1,620,598
INTERMEDIATE 1,887,690 -- -- 5,584,224 (757,224) 6,714,690
NEW YORK 498,658 -- -- 1,542,214 (420,475) 1,620,397
The difference between book basis and tax basis is attributable
primarily to timing differences of dividend payments.
29
NOTES TO FINANCIAL STATEMENTS Intermediate Municipal Closed-End Funds cont'd
6 EXPENSE ALLOCATION: Some bills are applicable to multiple funds.
Expenses directly attributable to a Fund are charged to that
Fund. Expenses borne by the complex of related investment
companies, which includes open-end and closed-end investment
companies for which Management serves as investment manager, that
are not directly attributed to a Fund, are allocated among the
Funds and the other investment companies in the complex or series
thereof, on the basis of relative net assets, except where a more
appropriate allocation of expenses to each investment company in
the complex or series thereof can otherwise be made fairly.
7 REDEEMABLE PREFERRED SHARES: On October 21, 2002, the Funds
re-classified unissued shares of capital stock into several
series of Auction Market Preferred Shares ("AMPS"), as follows:
SERIES A SHARES SERIES B SHARES
CALIFORNIA 1,500 1,500
INTERMEDIATE 4,000 4,000
NEW YORK 1,500 1,500
On December 13, 2002, the Funds issued several series of AMPS, as
follows:
SERIES A SHARES SERIES B SHARES
CALIFORNIA 1,180 1,180
INTERMEDIATE 3,588 3,588
NEW YORK 965 965
All shares of each series of AMPS have a liquidation preference
of $25,000 per share plus any accumulated unpaid dividends,
whether or not earned or declared by the Fund, but excluding
interest thereon ("Liquidation Value"). Dividends to AMPS
shareholders, which are cumulative, are accrued daily. It is the
policy of each Fund to pay dividends every 7 days for each Fund's
AMPS Series A and every 28 days for each Fund's AMPS Series B,
unless in a special rate period.
In the absence of a special rate period, dividend rates are reset
every 7 days for each Fund's AMPS Series A, based on the results
of an auction. Each Fund has approved a special rate period for
its AMPS Series A of 728 days for California and New York and 546
days for Intermediate. The effective dates and dividend rates for
each Fund are as follows:
EFFECTIVE DATE DIVIDEND RATE
CALIFORNIA October 23, 2003 1.70%
INTERMEDIATE October 24, 2003 1.65%
NEW YORK October 22, 2003 1.70%
In the absence of a special rate period, dividend rates are reset
every 28 days for each Fund's AMPS Series B, based on the results
of an auction. Each Fund has approved a special rate period for
its AMPS Series B of 546 days for California and Intermediate and
553 days for New York. The effective dates and dividend rates for
each Fund are as follows:
EFFECTIVE DATE DIVIDEND RATE
CALIFORNIA March 11, 2004 1.170%
INTERMEDIATE March 15, 2004 1.185%
NEW YORK March 9, 2004 1.198%
30
NEUBERGER BERMAN APRIL 30, 2004 (UNAUDITED)
The Funds declared dividends to AMPS shareholders for the period
May 1, 2004 to May 31, 2004, for each series of the AMPS as
follows:
SERIES A SHARES SERIES B SHARES
CALIFORNIA $ 43,189 $29,718
INTERMEDIATE 127,452 91,514
NEW YORK 35,320 24,891
The Funds may redeem shares of each series of AMPS, in whole or
in part, on the second business day preceding any dividend
payment date at Liquidation Value.
The Funds are also subject to certain restrictions relating to
the AMPS. Failure to comply with these restrictions could
preclude the Funds from declaring any distributions to common
shareholders or repurchasing common shares and/or could trigger
the mandatory redemption of AMPS at Liquidation Value.
The holders of AMPS are entitled to one vote per share and,
unless otherwise required by law, will vote with holders of
common stock as a single class, except that the AMPS will vote
separately as a class on certain matters, as required by law. The
holders of a Fund's AMPS, voting as a separate class, are
entitled at all times to elect two Directors of the Fund, and to
elect a majority of the Directors of a Fund if the Fund failed to
pay dividends on AMPS for two consecutive years.
8 ORGANIZATION EXPENSES AND OFFERING COSTS: Management has agreed
to pay all organizational expenses and the amount by which each
Fund's offering costs for common stock (other than sales load)
exceed $0.03 per share. The costs incurred by management were
$261,029, $276,501, and $289,752 for California, Intermediate and
New York, respectively. Offering costs for common stock paid by
each Fund were charged as a reduction of common stock
paid-in-capital at the completion of each Fund's offerings and
amounted to $203,759, $620,459, and $167,159 for California,
Intermediate, and New York, respectively.
Additionally, offering costs of $154,612, $337,770, and $143,704
and sales loads of $590,000, $1,794,000, and $482,500 for AMPS
for California, Intermediate, and New York, respectively, were
charged as a reduction of common stock paid-in capital for each
Fund's AMPS offering.
9 CONCENTRATION OF RISK: The ability of the issuers of the debt
securities held by the Funds to meet their obligations may be
affected by economic developments, including those particular to
a specific industry or region. The investment policies of
California and New York involve investing substantially all of
their assets in municipal bonds of issuers located in the state
of California and the state of New York, respectively. This
policy makes those Funds more susceptible to adverse economic,
political, regulatory or other factors affecting the issuers of
such municipal bonds than a fund that does not limit its
investments to such issuers.
NOTE B--MANAGEMENT FEES, ADMINISTRATION FEES, AND OTHER
TRANSACTIONS WITH AFFILIATES:
Each Fund retains Management as its investment manager under a
Management Agreement. For such investment management services,
each Fund pays Management a fee at the annual rate of 0.25% of
its
31
NOTES TO FINANCIAL STATEMENTS Intermediate Municipal Closed-End Funds Cont'd
----------------------------------------------------------------------------
average daily Managed Assets. Managed Assets equal the total
assets of the Fund, less liabilities other than the aggregate
indebtedness entered into for purposes of leverage. For purposes
of calculating Managed Assets, the Liquidation Value of any AMPS
outstanding is not considered a liability.
Management has contractually agreed to waive a portion of the
management fees it is entitled to receive from each Fund at the
following annual rates:
YEAR ENDED % OF AVERAGE
OCTOBER 31, DAILY MANAGED ASSETS
-------------------------------------------------------
2004 - 2007 0.25%
2008 0.20
2009 0.15
2010 0.10
2011 0.05
Management has not agreed to waive any portion of its fees beyond
October 31, 2011.
For the six months ended April 30, 2004, such waived fees
amounted to $198,343, $607,719, and $162,646 for California,
Intermediate, and New York, respectively.
Each Fund retains Management as its administrator under an
Administration Agreement. Each Fund pays Management an
administration fee at the annual rate of 0.30% of its average
daily Managed Assets under this agreement. Additionally,
Management retains State Street Bank and Trust Company ("State
Street") as its sub-administrator under a Sub-Administration
Agreement. Management pays State Street a fee for all services
received under the agreement.
On October 31, 2003, Management and Neuberger Berman, LLC
("Neuberger"), a member firm of the New York Stock Exchange and
sub-adviser to each Fund, became indirect wholly owned
subsidiaries of Lehman Brothers Holdings Inc., a publicly-owned
holding company ("the Transaction"). Upon completion of the
Transaction, each Fund's management and sub-advisory agreements
automatically terminated. To provide for continuity of
management, the shareholders of each Fund voted on September 23,
2003, to approve new management and sub-advisory agreements,
which took effect upon closing of the Transaction. Neuberger is
retained by Management to furnish it with investment
recommendations and research information without added cost to
each Fund. Several individuals who are officers and/or Directors
of each Fund are also employees of Neuberger and/or Management.
Each Fund has an expense offset arrangement in connection with
its custodian contract. The impact of this arrangement, reflected
in the Statements of Operations under the caption Custodian fees,
was a reduction of $193, $291, and $221 for California,
Intermediate, and New York, respectively.
In connection with the settlement of each AMPS auction, each Fund
pays, through the auction agent, a service fee to each
participating broker-dealer based upon the aggregate liquidation
preference of the AMPS held by the broker-dealer's customers. For
any auction preceding a rate period of less than one year, the
service fee is paid at the annual rate of 1/4 of 1%; for any
auction preceding a rate period of one year or more, the service
fee is paid at a rate agreed to by each Fund and the
broker-dealer.
32
NEUBERGER BERMAN APRIL 30, 2004 (UNAUDITED)
Each Fund has paid Merrill Lynch a fee equal to 1/8 of 1% in
connection with entering the special rate periods in return for
which Merrill Lynch had agreed to pay dividends on the AMPS that,
as a result of the auction, exceed a specified rate.
In order to satisfy ratings agency requirements, each Fund is
required to provide each rating agency a report on a monthly
basis verifying that each Fund is maintaining eligible assets
having a discounted value equal to or greater than the Preferred
Shares Basic Maintenance Amount, which is a minimum level set by
each rating agency as one of the conditions to maintain the AAA
rating on the AMPS. 'Discounted value' refers to the fact that
the rating agencies require the Fund, in performing this
calculation, to discount portfolio securities below their face
value, at a rate depending on their rating. Each Fund pays a fee
to State Street, as Fund sub-administrator, for the preparation
of this report.
NOTE C--SECURITIES TRANSACTIONS:
During the six months ended April 30, 2004, there were purchase
and sale transactions (excluding short-term securities) as
follows:
(000'S OMITTED) PURCHASES SALES
CALIFORNIA $5,187 $5,137
INTERMEDIATE 9,950 8,043
NEW YORK 2,727 2,975
NOTE D--CAPITAL:
At April 30, 2004, the common shares outstanding and the common
shares owned by Neuberger for each Fund were as follows:
COMMON SHARES COMMON SHARES
OUTSTANDING OWNED BY NEUBERGER
CALIFORNIA 6,791,981 6,981
INTERMEDIATE 20,705,124 6,981
NEW YORK 5,574,550 6,981
Transactions in common shares for the six months ended April 30,
2004 and year ended October 31, 2003, were as follows:
COMMON SHARES ISSUED IN CONNECTION WITH:
UNDERWRITERS' EXERCISE REINVESTMENT OF
OF OVER-ALLOTMENT DIVIDENDS AND NET INCREASE IN COMMON
OPTION DISTRIBUTIONS SHARES OUTSTANDING
2004 2003 2004 2003 2004 2003
CALIFORNIA -- 185,000 -- -- -- 185,000
INTERMEDIATE -- 175,000 -- 23,143 -- 198,143
NEW YORK -- 215,000 -- 2,569 -- 217,569
NOTE E--UNAUDITED FINANCIAL INFORMATION:
The financial information included in this interim report is
taken from the records of each Fund without audit by independent
auditors. Annual reports contain audited financial statements.
33
FINANCIAL HIGHLIGHTS California Intermediate Municipal Fund
-----------------------------------------------------------
The following table includes selected data for a share outstanding throughout
each period and other performance information derived from the Financial
Statements.
PERIOD FROM
SIX MONTHS ENDED YEAR ENDED SEPTEMBER 27, 2002^
APRIL 30, OCTOBER 31, TO OCTOBER 31,
---------------- ----------- -------------------
2004 2003 2002
(UNAUDITED)
COMMON SHARE NET ASSET VALUE, BEGINNING OF PERIOD $ 14.36 $ 14.31 $14.32
------- ------- ------
INCOME FROM INVESTMENT OPERATIONS APPLICABLE TO COMMON SHAREHOLDERS:
NET INVESTMENT INCOME (LOSS) 0.46 .85 .02
NET GAINS OR LOSSES ON SECURITIES
(BOTH REALIZED AND UNREALIZED) (.16) .14 --
COMMON SHARE EQUIVALENT OF DISTRIBUTIONS TO PREFERRED SHAREHOLDERS FROM:
NET INVESTMENT INCOME (.06) (.08) --
------- ------- ------
TOTAL FROM INVESTMENT OPERATIONS APPLICABLE TO COMMON SHAREHOLDERS .24 .91 .02
------- ------- ------
LESS DISTRIBUTIONS TO COMMON SHAREHOLDERS FROM:
NET INVESTMENT INCOME (.38) (.75) --
------- ------- ------
LESS CAPITAL CHARGES:
ISSUANCE OF COMMON SHARES -- -- (.03)
ISSUANCE OF PREFERRED SHARES -- (.11) --
------- ------- ------
TOTAL CAPITAL CHARGES -- (.11) (.03)
------- ------- ------
COMMON SHARE NET ASSET VALUE, END OF PERIOD $ 14.22 $ 14.36 $14.31
------- ------- ------
COMMON SHARE MARKET VALUE, END OF PERIOD $ 12.58 $ 13.00 $15.00
------- ------- ------
TOTAL RETURN, COMMON SHARE NET ASSET VALUE+ +1.82%** +6.02% -0.10%**
TOTAL RETURN, COMMON SHARE MARKET VALUE+ -0.50%** -8.44% +0.00%**
RATIOS/SUPPLEMENTAL DATA++
NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS, END OF PERIOD (IN MILLIONS) $ 96.6 $ 97.5 $ 94.5
PREFERRED STOCK, AT LIQUIDATION VALUE ($25,000
PER SHARE LIQUIDATION PREFERENCE) (IN MILLIONS) $ 59.0 $ 59.0 $ --
RATIO OF GROSS EXPENSES TO AVERAGE NET ASSETS APPLICABLE TO
COMMON SHAREHOLDERS# .97%* .88% .84%*
RATIO OF NET EXPENSES TO AVERAGE NET ASSETS APPLICABLE TO
COMMON SHAREHOLDERS+++ .97%* .88% .83%*
RATIO OF NET INVESTMENT INCOME (LOSS) EXCLUDING PREFERRED
STOCK DIVIDENDS TO AVERAGE NET ASSETS APPLICABLE TO
COMMON SHAREHOLDERS 6.19%* 5.88% 1.10%*
RATIO OF PREFERRED STOCK DIVIDENDS TO AVERAGE
NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS .85%* .56% --%
RATIO OF NET INVESTMENT INCOME (LOSS) INCLUDING PREFERRED
STOCK DIVIDENDS TO AVERAGE NET ASSETS APPLICABLE TO
COMMON SHAREHOLDERS 5.34%* 5.32% 1.10%*
PORTFOLIO TURNOVER RATE 3% 9% 0%
ASSET COVERAGE PER SHARE OF PREFERRED STOCK, END OF PERIOD@ $65,943 $66,332 $ --
See Notes to Financial Highlights
34
NEUBERGER BERMAN APRIL 30, 2004 (UNAUDITED)
FINANCIAL HIGHLIGHTS Intermediate Municipal Fund
------------------------------------------------
The following table includes selected data for a share outstanding throughout
each period and other performance information derived from the Financial
Statements.
PERIOD FROM
SIX MONTHS ENDED YEAR ENDED SEPTEMBER 27, 2002^
APRIL 30, OCTOBER 31, TO OCTOBER 31,
---------------- ----------- -------------------
2004 2003 2002
(UNAUDITED)
COMMON SHARE NET ASSET VALUE, BEGINNING OF PERIOD $ 14.44 $ 14.30 $14.32
------- ------- ------
INCOME FROM INVESTMENT OPERATIONS APPLICABLE TO COMMON SHAREHOLDERS:
NET INVESTMENT INCOME (LOSS) .47 .88 .01
NET GAINS OR LOSSES ON SECURITIES
(BOTH REALIZED AND UNREALIZED) (.11) .25 --
COMMON SHARE EQUIVALENT OF DISTRIBUTIONS TO PREFERRED SHAREHOLDERS FROM:
NET INVESTMENT INCOME (.06) (.09) --
------- ------- ------
TOTAL FROM INVESTMENT OPERATIONS APPLICABLE TO COMMON SHAREHOLDERS .30 1.04 .01
------- ------- ------
LESS DISTRIBUTIONS TO COMMON SHAREHOLDERS FROM:
NET INVESTMENT INCOME (.40) (.80) --
------- ------- ------
LESS CAPITAL CHARGES:
ISSUANCE OF COMMON SHARES -- -- (.03)
ISSUANCE OF PREFERRED SHARES -- (.10) --
------- ------- ------
TOTAL CAPITAL CHARGES -- (.10) (.03)
------- ------- ------
COMMON SHARE NET ASSET VALUE, END OF PERIOD $ 14.34 $ 14.44 $14.30
------- ------- ------
COMMON SHARE MARKET VALUE, END OF PERIOD $ 12.79 $ 13.33 $15.00
------- ------- ------
TOTAL RETURN, COMMON SHARE NET ASSET VALUE+ +2.20%** +6.88% -0.17%**
TOTAL RETURN, COMMON SHARE MARKET VALUE+ -1.26%** -5.94% +0.00%**
RATIOS/SUPPLEMENTAL DATA++
NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS, END OF PERIOD (IN MILLIONS) $ 296.8 $ 299.1 $293.3
PREFERRED STOCK, AT LIQUIDATION VALUE ($25,000
PER SHARE LIQUIDATION PREFERENCE) (IN MILLIONS) $ 179.4 $ 179.4 $ --
RATIO OF GROSS EXPENSES TO AVERAGE NET ASSETS APPLICABLE TO
COMMON SHAREHOLDERS# .81%* .74% .51%*
RATIO OF NET EXPENSES TO AVERAGE NET ASSETS APPLICABLE TO
COMMON SHAREHOLDERS+++ .81%* .74% .51%*
RATIO OF NET INVESTMENT INCOME (LOSS) EXCLUDING PREFERRED
STOCK DIVIDENDS TO AVERAGE NET ASSETS APPLICABLE TO
COMMON SHAREHOLDERS 6.36%* 6.08% 1.62%*
RATIO OF PREFERRED STOCK DIVIDENDS TO AVERAGE
NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS .84%* .59% --%
RATIO OF NET INVESTMENT INCOME (LOSS) INCLUDING PREFERRED
STOCK DIVIDENDS TO AVERAGE NET ASSETS APPLICABLE TO
COMMON SHAREHOLDERS 5.52%* 5.49% 1.62%*
PORTFOLIO TURNOVER RATE 2% 10% 0%
ASSET COVERAGE PER SHARE OF PREFERRED STOCK, END OF PERIOD@ $66,393 $66,694 $ --
See Notes to Financial Highlights
35
FINANCIAL HIGHLIGHTS New York Intermediate Municipal Fund
---------------------------------------------------------
The following table includes selected data for a share outstanding throughout
each period and other performance information derived from the Financial
Statements.
PERIOD FROM
SIX MONTHS ENDED YEAR ENDED SEPTEMBER 27, 2002^
APRIL 30, OCTOBER 31, TO OCTOBER 31,
---------------- ----------- -------------------
2004 2003 2002
(UNAUDITED)
COMMON SHARE NET ASSET VALUE, BEGINNING OF PERIOD $ 14.40 $ 14.32 $14.32
------- ------- ------
INCOME FROM INVESTMENT OPERATIONS APPLICABLE TO COMMON SHAREHOLDERS:
NET INVESTMENT INCOME (LOSS) .46 .86 .03
NET GAINS OR LOSSES ON SECURITIES
(BOTH REALIZED AND UNREALIZED) (.16) .19 --
COMMON SHARE EQUIVALENT OF DISTRIBUTIONS TO PREFERRED SHAREHOLDERS FROM:
NET INVESTMENT INCOME (.06) (.08) --
------- ------- ------
TOTAL FROM INVESTMENT OPERATIONS APPLICABLE TO COMMON SHAREHOLDERS .24 .97 .03
------- ------- ------
LESS DISTRIBUTIONS TO COMMON SHAREHOLDERS FROM:
NET INVESTMENT INCOME (.39) (.78) --
------- ------- ------
LESS CAPITAL CHARGES:
ISSUANCE OF COMMON SHARES -- -- (.03)
ISSUANCE OF PREFERRED SHARES -- (.11) --
------- ------- ------
TOTAL CAPITAL CHARGES -- (.11) (.03)
------- ------- ------
COMMON SHARE NET ASSET VALUE, END OF PERIOD $ 14.25 $ 14.40 $14.32
------- ------- ------
COMMON SHARE MARKET VALUE, END OF PERIOD $ 12.55 $ 13.27 $15.00
------- ------- ------
TOTAL RETURN, COMMON SHARE NET ASSET VALUE+ +1.82%** +6.36% -0.03%**
TOTAL RETURN, COMMON SHARE MARKET VALUE+ -2.69%** -6.43% +0.00%**
RATIOS/SUPPLEMENTAL DATA++
NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS, END OF PERIOD (IN MILLIONS) $ 79.4 $ 80.3 $ 76.7
PREFERRED STOCK, AT LIQUIDATION VALUE ($25,000
PER SHARE LIQUIDATION PREFERENCE) (IN MILLIONS) $ 48.3 $ 48.3 $ --
RATIO OF GROSS EXPENSES TO AVERAGE NET ASSETS APPLICABLE TO
COMMON SHAREHOLDERS# 1.01%* .92% .94%*
RATIO OF NET EXPENSES TO AVERAGE NET ASSETS APPLICABLE TO
COMMON SHAREHOLDERS+++ 1.01%* .92% .93%*
RATIO OF NET INVESTMENT INCOME (LOSS) EXCLUDING PREFERRED
STOCK DIVIDENDS TO AVERAGE NET ASSETS APPLICABLE TO
COMMON SHAREHOLDERS 6.30%* 6.02% 1.22%*
RATIO OF PREFERRED STOCK DIVIDENDS TO AVERAGE
NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS .85%* .57% --%
RATIO OF NET INVESTMENT INCOME (LOSS) INCLUDING PREFERRED
STOCK DIVIDENDS TO AVERAGE NET ASSETS APPLICABLE TO
COMMON SHAREHOLDERS 5.45%* 5.45% 1.22%*
PORTFOLIO TURNOVER RATE 2% 11% 0%
ASSET COVERAGE PER SHARE OF PREFERRED STOCK, END OF PERIOD@ $66,194 $66,617 $ --
See Notes to Financial Highlights
36
NEUBERGER BERMAN APRIL 30, 2004 (UNAUDITED)
NOTES TO FINANCIAL HIGHLIGHTS Intermediate Municipal Closed-End Funds
---------------------------------------------------------------------
+ Total return based on per share net asset value reflects the effects of
changes in net asset value on the performance of each Fund during each
fiscal period. Total return based on per share market value assumes the
purchase of common shares at the market price on the first day and sales of
common shares at the market price on the last day of the period indicated.
Dividends and distributions, if any, are assumed to be reinvested at prices
obtained under each Fund's dividend reinvestment plan. Results represent
past performance and do not guarantee future results. Current returns may be
lower or higher than the performance data quoted. For each Fund, total
return would have been lower if Management had not waived the investment
management fee. Performance data current to the most recent month-end are
available at www.nb.com.
# The Fund is required to calculate an expense ratio without taking into
consideration any expense reductions related to expense offset arrangements.
+++ After waiver of investment management fee. Had Management not undertaken
such action, the annualized ratios of net expenses to average daily net
assets applicable to common shareholders would have been:
SIX MONTHS ENDED YEAR ENDED PERIOD ENDED
APRIL 30, OCTOBER 31, OCTOBER 31,
2004 2003 2002(1)
CALIFORNIA INTERMEDIATE MUNICIPAL FUND INC. 1.36% 1.26% 1.08%
INTERMEDIATE MUNICIPAL FUND INC. 1.21% 1.13% .76%
NEW YORK INTERMEDIATE MUNICIPAL FUND INC. 1.41% 1.31% 1.18%
(1) Period from September 27, 2002 to October 31, 2002.
^ The date investment operations commenced.
* Annualized.
** Not annualized.
@ Calculated by subtracting the Fund's total liabilities (excluding
accumulated unpaid dividends on AMPS) from the Fund's total assets and
dividing by the number of AMPS.
++ Expense ratios do not include the effect of dividend payments to preferred
shareholders. Income ratios include income earned on assets attributable to
AMPS.
37
DIVIDEND REINVESTMENT PLAN
--------------------------
The Bank of New York ("Plan Agent") will act as Plan Agent for shareholders who
have not elected in writing to receive dividends and distributions in cash (each
a "Participant"), will open an account for each Participant under the Dividend
Reinvestment Plan ("Plan") in the same name as their then current Shares are
registered, and will put the Plan into effect for each Participant as of the
first record date for a dividend or capital gains distribution.
Whenever the Fund declares a dividend or distribution with respect to the common
stock of the Fund ("Shares"), each Participant will receive such dividends and
distributions in additional Shares, including fractional Shares acquired by the
Plan Agent and credited to each Participant's account. If on the payment date
for a cash dividend or distribution, the net asset value is equal to or less
than the market price per Share plus estimated brokerage commissions, the Plan
Agent shall automatically receive such Shares, including fractions, for each
Participant's account. Except in the circumstances described in the next
paragraph, the number of additional Shares to be credited to each Participant's
account shall be determined by dividing the dollar amount of the dividend or
distribution payable on their Shares by the greater of the net asset value per
Share determined as of the date of purchase or 95% of the then current market
price per Share on the payment date.
Should the net asset value per Share exceed the market price per Share plus
estimated brokerage commissions on the payment date for a cash dividend or
distribution, the Plan Agent or a broker-dealer selected by the Plan Agent shall
endeavor, for a purchase period lasting until the last business day before the
next date on which the Shares trade on an "ex-dividend" basis, but in no event,
except as provided below, more than 30 days after the dividend payment date, to
apply the amount of such dividend or distribution on each Participant's Shares
(less their PRO RATA share of brokerage commissions incurred with respect to the
Plan Agent's open-market purchases in connection with the reinvestment of such
dividend or distribution) to purchase Shares on the open market for each
Participant's account. No such purchases may be made more than 30 days after the
payment date for such dividend except where temporary curtailment or suspension
of purchase is necessary to comply with applicable provisions of federal
securities laws. If, at the close of business on any day during the purchase
period the net asset value per Share equals or is less than the market price per
Share plus estimated brokerage commissions, the Plan Agent will not make any
further open-market purchases in connection with the reinvestment of such
dividend or distribution. If the Plan Agent is unable to invest the full
dividend or distribution amount through open-market purchases during the
purchase period, the Plan Agent shall request that, with respect to the
uninvested portion of such dividend or distribution amount, the Fund issue new
Shares at the close of business on the earlier of the last day of the purchase
period or the first day during the purchase period on which the net asset value
per Share equals or is less than the market price per Share, plus estimated
brokerage commissions, such Shares to be issued in accordance with the terms
specified in the third paragraph hereof. These newly issued Shares will be
valued at the then-current market price per Share at the time such Shares are to
be issued.
For purposes of making the dividend reinvestment purchase comparison under the
Plan, (a) the market price of the Shares on a particular date shall be the last
sales price on the New York Stock Exchange (or if the Shares are not listed on
the New York Stock Exchange, such other exchange on which the Shares are
principally traded) on that date, or, if there is no sale on such Exchange (or
if not so listed, in the over-the-counter market) on that date, then the mean
between the closing bid and asked quotations for such Shares on such Exchange on
such date and (b) the net asset value per Share on a particular date shall be
the net asset value per Share most recently calculated by or on behalf of the
Fund. All dividends, distributions and other payments (whether made in cash or
Shares) shall be made net of any applicable withholding tax.
Open-market purchases provided for above may be made on any securities exchange
where the Fund's Shares are traded, in the over-the-counter market or in
negotiated transactions and may be on such terms as to price, delivery and
otherwise as the Plan Agent shall determine. Each Participant's uninvested funds
held by the Plan Agent will not bear interest, and it is understood that, in any
event, the Plan Agent shall have no liability in connection with any inability
to purchase Shares within 30 days after the initial date of such purchase as
herein provided, or with the timing of any purchases effected. The Plan Agent
shall have no responsibility as to the value of the Shares acquired for each
Participant's account. For the purpose of cash investments, the Plan Agent may
commingle each Participant's funds with those of other shareholders of the Fund
for whom the Plan Agent similarly acts as agent, and the average price
(including brokerage commissions) of all Shares purchased by the Plan Agent as
Plan Agent shall be the price per Share allocable to each Participant in
connection therewith.
The Plan Agent may hold each Participant's Shares acquired pursuant to the Plan
together with the Shares of other shareholders of the Fund acquired pursuant to
the Plan in noncertificated form in the Plan Agent's name or that of the Plan
Agent's nominee. The Plan Agent will forward to each Participant any proxy
solicitation material and will vote any Shares so held for each Participant only
in accordance with the instructions set forth on proxies returned by the
participant to the Fund.
38
NEUBERGER BERMAN APRIL 30, 2004 (UNAUDITED)
The Plan Agent will confirm to each Participant each acquisition made for their
account as soon as practicable but not later than 60 days after the date
thereof. Although each Participant may from time to time have an undivided
fractional interest (computed to three decimal places) in a Share, no
certificates for a fractional Share will be issued. However, dividends and
distributions on fractional Shares will be credited to each Participant's
account. In the event of termination of a Participant's account under the Plan,
the Plan Agent will adjust for any such undivided fractional interest in cash at
the market value of the Shares at the time of termination, less the PRO RATA
expense of any sale required to make such an adjustment.
Any Share dividends or split Shares distributed by the Fund on Shares held by
the Plan Agent for Participants will be credited to their accounts. In the event
that the Fund makes available to its shareholders rights to purchase additional
Shares or other securities, the Shares held for each Participant under the Plan
will be added to other Shares held by the Participant in calculating the number
of rights to be issued to each Participant.
The Plan Agent's service fee for handling capital gains distributions or income
dividends will be paid by the Fund. Participants will be charged their PRO RATA
share of brokerage commissions on all open-market purchases.
Each Participant may terminate their account under the Plan by notifying the
Plan Agent in writing. Such termination will be effective immediately if the
Participant's notice is received by the Plan Agent not less than ten days prior
to any dividend or distribution record date, otherwise such termination will be
effective the first trading day after the payment date for such dividend or
distribution with respect to any subsequent dividend or distribution. The Plan
may be terminated by the Plan Agent or the Fund upon notice in writing mailed to
each Participant at least 30 days prior to any record date for the payment of
any dividend or distribution by the Fund.
These terms and conditions may be amended or supplemented by the Plan Agent or
the Fund at any time or times but, except when necessary or appropriate to
comply with applicable law or the rules or policies of the Securities and
Exchange Commission or any other regulatory authority, only by mailing to each
Participant appropriate written notice at least 30 days prior to the effective
date thereof. The amendment or supplement shall be deemed to be accepted by each
Participant unless, prior to the effective date thereof, the Plan Agent receives
written notice of the termination of their account under the Plan. Any such
amendment may include an appointment by the Plan Agent in its place and stead of
a successor Plan Agent under these terms and conditions, with full power and
authority to perform all or any of the acts to be performed by the Plan Agent
under these terms and conditions. Upon any such appointment of any Plan Agent
for the purpose of receiving dividends and distributions, the Fund will be
authorized to pay to such successor Plan Agent, for each Participant's account,
all dividends and distributions payable on Shares held in their name or under
the Plan for retention or application by such successor Plan Agent as provided
in these terms and conditions.
The Plan Agent shall at all times act in good faith and agrees to use its best
efforts within reasonable limits to ensure the accuracy of all services
performed under this Agreement and to comply with applicable law, but assumes no
responsibility and shall not be liable for loss or damage due to errors unless
such error is caused by the Plan Agent's negligence, bad faith, or willful
misconduct or that of its employees.
These terms and conditions shall be governed by the laws of the State of
Maryland.
39
DIRECTORY
---------
INVESTMENT MANAGER AND ADMINISTRATOR
Neuberger Berman Management Inc.
605 Third Avenue 2nd Floor
New York, NY 10158-0180
877.461.1899 or 212.476.8800
SUB-ADVISER
Neuberger Berman, LLC
605 Third Avenue
New York, NY 10158-3698
CUSTODIAN
State Street Bank and Trust Company
225 Franklin Street
Boston, MA 02110
STOCK TRANSFER AGENT
Bank of New York
101 Barclay Street, 11-E
New York, NY 10286
LEGAL COUNSEL
Kirkpatrick & Lockhart LLP
1800 Massachusetts Avenue, NW
2nd Floor
Washington, DC 20036-1221
40
NEUBERGER BERMAN APRIL 30, 2004 (UNAUDITED)
DIRECTORS AND OFFICERS (Unaudited)
----------------------------------
The following tables set forth information concerning the directors and officers
of the Fund. All persons named as directors and officers also serve in similar
capacities for other funds administered or managed by NB Management and
Neuberger Berman, LLC. The Statement of Additional Information for each Fund
includes additional information about fund directors and is available upon
request, without charge, by calling (877) 461-1899.
THE BOARD OF DIRECTORS
NUMBER OF
PORTFOLIOS IN
FUND COMPLEX
NAME, AGE, ADDRESS (1) OVERSEEN BY OTHER DIRECTORSHIPS HELD OUTSIDE
AND POSITION WITH FUND PRINCIPAL OCCUPATION(S) (2) DIRECTOR FUND COMPLEX BY DIRECTOR
----------------------------------------------------------------------------------------------------------------------------------
CLASS I
INDEPENDENT FUND DIRECTORS*
Faith Colish (68) Counsel, Carter Ledyard & Milburn LLP (law 38 Director, American Bar Retirement
Director firm) since October 2002; formerly, Attorney at Association (ABRA) since 1997
Law and President, Faith Colish, A Professional (not-for-profit membership
Corporation, 1980 to 2002. association).
C. Anne Harvey (66) Consultant, C. A. Harvey Associates, since June 38 Formerly, Member, Individual
Director 2001; formerly, Director, AARP, 1978 to Investors Advisory Committee to the
December 2001. New York Stock Exchange Board of
Directors, 1998 to June 2002;
President, Board of Associates to
The National Rehabilitation
Hospital's Board of Directors, since
2002; Member, American Savings
Education Council's Policy Board
(ASEC), 1998-2000; Member, Executive
Committee, Crime Prevention
Coalition of America, 1997-2000.
Cornelius T. Ryan (72) Founding General Partner, Oxford Partners and 38 Director, Capital Cash Management
Director Oxford Bioscience Partners (venture capital Trust (money market fund),
partnerships) and President, Oxford Venture Naragansett Insured Tax-Free Income
Corporation. Fund, Rocky Mountain Equity Fund,
Prime Cash Fund, several private
companies and QuadraMed Corporation
(NASDAQ).
Peter P. Trapp (59) Regional Manager for Atlanta Region, Ford Motor 38 None.
Director Credit Company since August 1997; formerly,
President, Ford Life Insurance Company, April
1995 until August 1997.
41
DIRECTORS AND OFFICERS (Unaudited) cont'd
-----------------------------------------
NUMBER OF
PORTFOLIOS IN
FUND COMPLEX
NAME, AGE, ADDRESS (1) OVERSEEN BY OTHER DIRECTORSHIPS HELD OUTSIDE
AND POSITION WITH FUND PRINCIPAL OCCUPATION(S) (2) DIRECTOR FUND COMPLEX BY DIRECTOR
----------------------------------------------------------------------------------------------------------------------------------
DIRECTOR WHO IS AN "INTERESTED PERSON"
Peter E. Sundman* (44) Executive Vice President, Neuberger Berman Inc. 38 Director, Neuberger Berman Inc.
Chief Executive Officer, (holding company) since 1999; Head of Neuberger (holding company) from October 1999
Director and Chairman of Berman Inc.'s Mutual Funds and Institutional through March 2003; President and
the Board Business since 1999; Executive Vice President, Director, NB Management since 1999;
Neuberger Berman since 1999; Principal, Director and Vice President,
Neuberger Berman from 1997 until 1999; Senior Neuberger & Berman Agency, Inc.
Vice President, NB Management from 1996 until since 2000.
1999.
CLASS II
INDEPENDENT FUND DIRECTORS*
John Cannon (74) Consultant. Formerly, Chairman and Chief 38 Independent Trustee or Director of
Director Investment Officer, CDC Investment Advisors three series of OppenheimerFunds:
(registered investment adviser), 1993-January Limited Term New York Municipal
1999; prior thereto, President and Chief Fund, Rochester Fund Municipals, and
Executive Officer, AMA Investment Advisors, an Oppenheimer Convertible Securities
affiliate of the American Medical Association. Fund, since 1992.
Barry Hirsch (71) Attorney at Law. Formerly, Senior Counsel, 38 None.
Director Loews Corporation (diversified financial
corporation) May 2002 until April 2003;
formerly, Senior Vice President, Secretary and
General Counsel, Loews Corporation.
42
NEUBERGER BERMAN APRIL 30, 2004 (UNAUDITED)
NUMBER OF
PORTFOLIOS IN
FUND COMPLEX
NAME, AGE, ADDRESS (1) OVERSEEN BY OTHER DIRECTORSHIPS HELD OUTSIDE
AND POSITION WITH FUND PRINCIPAL OCCUPATION(S) (2) DIRECTOR FUND COMPLEX BY DIRECTOR
----------------------------------------------------------------------------------------------------------------------------------
Tom Decker Seip (54) General Partner, Seip Investments LP (a private 38 Director, H&R Block, Inc. (financial
Director investment partnership); formerly, President services company) since May 2001;
and CEO, Westaff, Inc. (temporary staffing), Director, Forward Management, Inc.
May 2001 to January 2002; Senior Executive at (asset management) since 2001;
the Charles Schwab Corporation from 1983 to formerly, Director, General Magic
1999, including Chief Executive Officer, (voice recognition software)
Charles Schwab Investment Management, Inc. and November 2001 until 2002; Director,
Trustee, Schwab Family of Funds and Schwab E-Finance Corporation (credit
Investments from 1997 to 1998 and Executive decisioning services) 1999-2003;
Vice President-Retail Brokerage, Charles Schwab Director, Save-Daily.com (micro
Investment Management from 1994 to 1997. investing services) 1999-2003;
Director, Offroad Capital Inc.
(pre-public internet commerce
company).
DIRECTORS WHO IS AN "INTERESTED PERSON"
Jack L. Rivkin* (63) Executive Vice President and Chief Investment 38 Director, Dale Carnegie and
President and Director Officer, Neuberger Berman Inc. (holding Associates, Inc. (private company)
company) since 2002 and 2003, respectively; since 1998; Director, Emagin Corp.
Executive Vice President and Chief Investment (public company) since 1997;
Officer, Neuberger Berman since 2002 and 2003, Director, Solbright, Inc. (private
respectively; Director and Chairman, NB company) since 1998; Director,
Management since December 2002; formerly, Infogate, Inc. (private company)
Executive Vice President, Citigroup since 1997.
Investments, Inc. from September 1995 to
February 2002; Executive Vice President,
Citigroup Inc. from September 1995 to February
2002.
CLASS III
INDEPENDENT FUND DIRECTORS*
Walter G. Ehlers (71) Consultant; Retired President and Trustee, 38 None.
Director Teachers Insurance & Annuity (TIAA) and College
Retirement Equities Fund (CREF).
Robert A. Kavesh (76) Marcus Nadler Professor of Finance and 38 Director, DEL Laboratories, Inc.
Director Economics Emeritus, New York University Stern (cosmetics and pharmaceuticals)
School of Business. since 1978; Director, The Caring
Community (not-for-profit).
43
DIRECTORS AND OFFICERS (Unaudited) cont'd
-----------------------------------------
NUMBER OF
PORTFOLIOS IN
FUND COMPLEX
NAME, AGE, ADDRESS (1) OVERSEEN BY OTHER DIRECTORSHIPS HELD OUTSIDE
AND POSITION WITH FUND PRINCIPAL OCCUPATION(S) (2) DIRECTOR FUND COMPLEX BY DIRECTOR
----------------------------------------------------------------------------------------------------------------------------------
Howard A. Mileaf (67) Retired. Formerly, Vice President and Special 38 Director, WHX Corporation (holding
Director Counsel, WHX Corporation (holding company) company) since August 2002;
1993-2001. Director, Webfinancial Corporation
(holding company) since December
2002; Director, State Theatre of New
Jersey (not-for-profit theater)
since 2000; formerly, Director,
Kevlin Corporation (manufacturer of
microwave and other products).
William E. Rulon (71) Retired. Senior Vice President, Foodmaker, Inc. 38 Director, Pro-Kids Golf and Learning
Director (operator and franchiser of restaurants) until Academy (teach golf and computer
January 1997. usage to "at risk" children) since
1998; formerly, Director, Prandium,
Inc. (restaurants) from March 2001
until July 2002.
Candace L. Straight (56) Private investor and consultant specializing in 38 Director, The Proformance Insurance
Director the insurance industry; formerly, Advisory Company (personal lines property and
Director, Securitas Capital LLC (a global casualty insurance company) since
private equity investment firm dedicated to March 2004; Director, Providence
making investments in the insurance sector) Washington (property and casualty
1998 until December 2002. insurance company) since December
1998; Director, Summit Global
Partners (insurance brokerage firm)
since October 2000.
44
NEUBERGER BERMAN APRIL 30, 2004 (UNAUDITED)
NUMBER OF
PORTFOLIOS IN
FUND COMPLEX
NAME, AGE, ADDRESS (1) OVERSEEN BY OTHER DIRECTORSHIPS HELD OUTSIDE
AND POSITION WITH FUND PRINCIPAL OCCUPATION(S) (2) DIRECTOR FUND COMPLEX BY DIRECTOR
----------------------------------------------------------------------------------------------------------------------------------
DIRECTOR WHO IS AN "INTERESTED PERSON"
Edward I. O'Brien* (75) Formerly, Member, Investment Policy Committee, 38 Director, Legg Mason, Inc.
Director Edward Jones 1993-2001; President, Securities (financial services holding company)
Industry Association ("SIA") (securities since 1993; formerly, Director,
industry's representative in government Boston Financial Group (real
relations and regulatory matters at the federal estate and tax shelters) 1993-1999.
and state levels) 1974-1992; Adviser to SIA,
November 1992-November 1993.
* Indicates a director who is an "interested person" within the meaning of
the 1940 Act. Mr. Sundman and Mr. Rivkin are interested persons of the Fund
by virtue of the fact that each is an officer and/or director of NB
Management and Executive Vice President of Neuberger Berman. Mr. O'Brien is
an interested person of the Fund by virtue of the fact that he is a
director of Legg Mason, Inc., a wholly owned subsidiary of which, from time
to time, serves as a broker or dealer to the Fund and other funds or
accounts for which NB Management serves as investment manager.
(1) The business address of each listed person is 605 Third Avenue, New York,
New York 10158.
(2) Except as otherwise indicated, each person has held the positions shown for
at least the last five years. The Board of Directors shall at all times be
divided as equally as possible into three classes of Directors designated
Class I, Class II, and Class III. The terms of office of Class I, Class II,
and Class III Directors shall expire at the annual meetings of stockholders
held in 2006, 2004, and 2005 respectively, and at each third annual meeting
of stockholders thereafter.
45
DIRECTORS AND OFFICERS (Unaudited) cont'd
-----------------------------------------
INFORMATION ABOUT THE OFFICERS OF THE FUND (OTHER THAN THOSE LISTED ABOVE)
POSITION AND
NAME, AGE, AND ADDRESS (1) LENGTH OF TIME SERVED (2) PRINCIPAL OCCUPATION(S)
-----------------------------------------------------------------------------------------------------------------------------
Claudia A. Brandon (47) Secretary since 2002 Vice President-Mutual Fund Board Relations, NB Management
since 2000; Vice President, Neuberger Berman since 2002
and employee since 1999; Vice President, NB Management
from 1986 to 1999; Secretary, eleven registered
investment companies for which NB Management acts as
investment manager and administrator (four since 2002,
three since 2003, and one since 2004).
Robert Conti (47) Vice President since 2002 Senior Vice President, Neuberger Berman since 2003; Vice
President, Neuberger Berman from 1999 until 2003; Senior
Vice President, NB Management since 2000; Controller, NB
Management until 1996; Treasurer, NB Management from 1996
until 1999; Vice President, eleven registered investment
companies for which NB Management acts as investment
manager and administrator (three since 2000, four since
2002, three since 2003, and one since 2004).
Brian P. Gaffney (50) Vice President since 2002 Managing Director, Neuberger Berman since 1999; Senior
Vice President, NB Management since 2000; Vice President,
NB Management from 1997 until 1999; Vice President,
eleven registered investment companies for which NB
Management acts as investment manager and administrator
(three since 2000, four since 2002, three since 2003, and
one since 2004).
Sheila R. James (38) Assistant Secretary since 2002 Employee, Neuberger Berman since 1999; Employee, NB
Management from 1991 to 1999; Assistant Secretary, eleven
registered investment companies for which NB Management
acts as investment manager and administrator (seven since
2002, three since 2003, and one since 2004).
Kevin Lyons (48) Assistant Secretary since 2003 Employee, Neuberger Berman since 1999; Employee, NB
Management from 1993 to 1999; Assistant Secretary, eleven
registered investment companies for which NB Management
acts as investment manager and administrator (ten since
2003 and one since 2004).
46
NEUBERGER BERMAN APRIL 30, 2004 (UNAUDITED)
POSITION AND
NAME, AGE, AND ADDRESS (1) LENGTH OF TIME SERVED (2) PRINCIPAL OCCUPATION(S)
-----------------------------------------------------------------------------------------------------------------------------
John M. McGovern (34) Assistant Treasurer since 2002 Vice President, Neuberger Berman since 2004; Employee, NB
Management since 1993; Assistant Treasurer, eleven
registered investment companies for which NB Management
acts as investment manager and administrator (seven since
2002, three since 2003, and one since 2004).
Barbara Muinos (45) Treasurer and Principal Vice President, Neuberger Berman since 1999; Assistant
Financial and Accounting Officer Vice President, NB Management from 1993 to 1999;
since 2002 Treasurer and Principal Financial and Accounting Officer,
eleven registered investment companies for which NB
Management acts as investment manager and administrator
(seven since 2002, three since 2003, and one since 2004);
Assistant Treasurer, three registered investment
companies for which NB Management acts as investment
manager and administrator from 1996 until 2002.
Frederic B. Soule (57) Vice President since 2002 Senior Vice President, Neuberger Berman since 2003; Vice
President, Neuberger Berman from 1999 until 2003; Vice
President, NB Management from 1995 until 1999; Vice
President, eleven registered investment companies for
which NB Management acts as investment manager and
administrator (three since 2000, four since 2002, three
since 2003, and one since 2004).
Trani Jo Wyman (34) Assistant Treasurer since 2002 Employee, NB Management since 1991; Assistant Treasurer,
eleven registered investment companies for which NB
Management acts as investment manager and administrator
(seven since 2002, three since 2003, and one since 2004).
----------
(1) The business address of each listed person is 605 Third Avenue, New York,
New York 10158.
(2) Except as otherwise indicated, each individual has held the positions shown
for at least the last five years.
47
PROXY VOTING POLICIES AND PROCEDURES
------------------------------------
A description of the policies and procedures that the Funds use to determine how
to vote proxies relating to portfolio securities is available, without charge,
by calling 1-800-877-9700 (toll-free) and on the website of the Securities and
Exchange Commission, at www.sec.gov. Beginning September 2004, information
regarding how the Funds voted proxies relating to portfolio securities during
the most recent 12-month period ended June 30 will also be available without
charge, by calling 1-800-877-9700 (toll-free), on the website of the Securities
and Exchange Commission, at www.sec.gov, and on the Funds' website at www.nb.com
[http://www.nb.com].
48
[NEUBERGER BERMAN LOGO]
A LEHMAN BROTHERS COMPANY
NEUBERGER BERMAN MANAGEMENT INC.
605 Third Avenue 2nd Floor
New York, NY 10158-0180
Statistics and projections in this INTERNAL SALES & SERVICES
report are derived from sources deemed 877.461.1899
to be reliable but cannot be regarded as
a representation of future results of www.nb.com
the Funds. This report is prepared for
the general information of shareholders
and is not an offer of shares of the [RECYCLED SYMBOL] DO123 06/04
Funds.
ITEM 2. CODE OF ETHICS
Not Applicable. Only required in an annual report.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT
Not Applicable. Only required in an annual report.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES
Not Applicable. Only required in an annual report.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS
Not Applicable. Only required in an annual report.
ITEM 6. SCHEDULE OF INVESTMENTS
Not Yet Applicable. Item applies to periods ending on or after July 9, 2004.
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES.
Not Applicable. Only required in an annual report.
ITEM 8. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT
COMPANY AND AFFILIATED PURCHASERS.
Not Yet Applicable. Item applies to periods ending on or after June 15, 2004.
ITEM 9. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
Not applicable.
ITEM 10. CONTROLS AND PROCEDURES.
(a) Based on an evaluation of the disclosure controls and procedures (as
defined in rule 30a-2(c) under the Act) as of a date within 90 days of the
filing date of this document, the Chief Executive Officer and Treasurer and
Principal Financial and Accounting Officer of the Registrant have concluded
that such disclosure controls and procedures are effectively designed to
ensure that information required to be disclosed by the Registrant is
accumulated and communicated to the Registrant's management to allow timely
decisions regarding required disclosure.
(b) There were no significant changes in the Registrant's internal controls
over financial reporting (as defined in rule 30a-3(d) under the Act) that
occurred during the Registrant's second fiscal half-year that have
materially affected, or are reasonably likely to materially affect, the
Registrant's internal control over financial reporting.
ITEM 10. EXHIBITS
(a)(1) Not Applicable. Only required in an annual report.
(a)(2) The certifications required by Rule 30a-2(a) of the Act and Section
302 of the Sarbanes-Oxley Act of 2002 ("Sarbanes-Oxley Act") are
attached hereto
(b) The certification required by Rule 30a-2(b) of the Act and Section 906
of the Sarbanes-Oxley Act is attached hereto.
The certification provided pursuant to Section 906 of the Sarbanes-Oxley Act is
not deemed "filed" for purposes of Section 18 of the Securities Exchange Act of
1934 ("Exchange Act"), or otherwise subject to the liability of that section.
Such certifications will not be deemed to be incorporated by reference into any
filing under the Securities Act of 1933 or the Exchange Act, except to the
extent that the Registrant specifically incorporates them by reference.
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.
Neuberger Berman California Intermediate Municipal Fund Inc.
By: /s/ Peter E. Sundman
---------------------------
Peter E. Sundman
Chief Executive Officer
Date: June 28, 2004
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the Registrant and in the capacities and on the
dates indicated.
By: /s/ Peter E. Sundman
---------------------------
Peter E. Sundman
Chief Executive Officer
Date: June 28, 2004
By: /s/ Barbara Muinos
---------------------------
Barbara Muinos
Treasurer and Principal Financial
and Accounting Officer
Date: June 28, 2004