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: 811-21168
NEUBERGER BERMAN INTERMEDIATE MUNICIPAL FUND INC.
(Exact Name of the Registrant as Specified in Charter)
605 Third Avenue
New York, New York 10158-0180
(Address of Principal Executive Offices - Zip Code)
Registrant's Telephone Number, including area code: (212) 476-8800
Peter E. Sundman, Chief Executive Officer
Neuberger Berman Intermediate Municipal Fund Inc.
605 Third Avenue, 2nd Floor
New York, New York 10158-0180
Arthur C. Delibert, Esq.
Kirkpatrick & Lockhart LLP
1800 Massachusetts Avenue, N.W.
Washington, D.C. 20036-1800
(Names and Addresses of agents for service)
Date of fiscal year end: October 31, 2002
Date of reporting period: April 30, 2003
ITEM 1. REPORTS TO SHAREHOLDERS
SEMI-ANNUAL REPORT [NEUBERGER BERMAN LOGO]
APRIL 30, 2003
NEUBERGER BERMAN
INTERMEDIATE
MUNICIPAL
CLOSED-END FUNDS
CALIFORNIA INTERMEDIATE MUNICIPAL FUND INC.
INTERMEDIATE MUNICIPAL FUND INC.
NEW YORK INTERMEDIATE MUNICIPAL FUND INC.
CONTENTS
--------
THE FUNDS
CHAIRMAN'S LETTER 2
PORTFOLIO COMMENTARIES/ 4
PERFORMANCE HIGHLIGHTS
California Intermediate Municipal Fund Inc.
Intermediate Municipal Fund Inc.
New York Intermediate Municipal Fund Inc.
SCHEDULE OF INVESTMENTS
California Intermediate Municipal Fund Inc. 7
Intermediate Municipal Fund Inc. 11
New York Intermediate Municipal Fund Inc. 18
FINANCIAL STATEMENTS 22
FINANCIAL HIGHLIGHTS
PER SHARE DATA
California Intermediate Municipal Fund Inc. 31
Intermediate Municipal Fund Inc. 32
New York Intermediate Municipal Fund Inc. 33
DIVIDEND REINVESTMENT PLAN 35
DIRECTORY 37
DIRECTORS AND OFFICERS 38
"Neuberger Berman" and the Neuberger Berman logo are service marks of Neuberger
Berman, LLC. "Neuberger Berman Management Inc." and the individual fund names in
this shareholder report are either service marks or registered service marks of
Neuberger Berman Management Inc.(C)2003 Neuberger Berman Management Inc. All
rights reserved.
1
CHAIRMAN'S LETTER
-----------------
[PHOTO OF PETER SUNDMAN]
Dear Fellow Shareholder,
Getting off on the right foot is always important. It is a pleasure to report,
therefore, that the Neuberger Berman Municipal Closed-End Funds are off to a
strong start in their first full reporting period. Our Funds have all generated
positive returns on a net asset value basis, and outperformed their benchmark
indices for the six months ending April 30, 2003.
In my last letter, I assured you that we would strive for the highest
tax-protected yield consistent with controlling risk. Since then, we have been
working hard to achieve that goal. Our investment vehicle of choice is the
intermediate-term municipal bond (with maturity between three and eight years).
Our experience and research lead us to believe that this maturity range offers
the best risk/reward profile on the yield curve, providing much of the return of
longer-term bonds, with less volatility and risk.
Today's markets offer unique challenges to investment managers in the municipal
bond arena. As with fixed income in general, municipal bonds have achieved
meaningful gains in recent years, in stark contrast to stocks. At the same time,
many states and municipalities are facing major financial issues, as they deal
with weakened tax revenues and increasing budget deficits. While our managers
2
NEUBERGER BERMAN APRIL 30, 2003 (UNAUDITED)
expect municipal markets to remain robust, we are keenly aware of the need for
close attention to credit quality, sector selection and risk management.
As always, we believe our conservative investment philosophy and disciplined
investment process will benefit you with superior tax-protected income and
principal preservation, in both the near and long term.
Thank you again for your trust in Neuberger Berman.
Sincerely,
/s/ Peter Sundman
PETER SUNDMAN
CHAIRMAN OF THE BOARD
NEUBERGER BERMAN INTERMEDIATE
MUNICIPAL CLOSED-END FUNDS
3
INTERMEDIATE MUNICIPAL CLOSED-END FUNDS PORTFOLIO COMMENTARIES
--------------------------------------------------------------
We are pleased to report that the Intermediate Municipal Fund Inc., the
California Intermediate Municipal Fund, Inc. and the New York Intermediate
Municipal Fund, Inc., on a net asset value (NAV) basis, delivered positive
returns for the first half of fiscal 2003. During this reporting period the
municipal bond market continued to post strong returns and the Funds
participated in this strength. Our diligent focus on stable municipal securities
helped the Funds provide good returns and preserve capital--two goals not easily
achieved in the current economic and financial market environment.
With investor attention focused almost exclusively on geopolitical issues,
equities faltered, while the relative safety of fixed-income investments became
increasingly attractive. Although bad news for the equity markets often means
good news for bonds, the municipal bond market was not entirely immune to
broader market events. Our diligent focus on credit quality helped us limit our
exposure to weak credits in the airline and tobacco industries, two areas that
have been hurt particularly hard by the current economic environment and
company-specific issues. Knowing that all bonds are not created equal, our
challenge is to be in the right sectors at the right time. Careful security
selection during the period benefited the Funds' overall returns.
Weakness at the federal budget level has trickled down to the state and local
level, where governments are now facing declining tax revenues and budget
deficits for the foreseeable future. We have therefore intensified our
ever-vigilant focus on credit quality. In addition to facing large budget
shortfalls, New York municipal bonds have been hurt by general financial market
weakness and a slowdown in tourism following the September 11, 2001 terrorist
attacks. California municipal bonds have also suffered from increasingly large
budget deficits, along with the dramatic downturn in the high-tech sector, which
in the past was a powerful economic driver, and a lack of growth in trade with
Japan and the Far East. Given the budget problems in New York and California, we
continue to seek opportunities to invest in these areas at attractive price
levels, but intend to only buy the bonds of issuers that meet our strict credit
quality standards. If we discover that we have made an investment mistake, we
will be dispassionate sellers.
With interest rates still hovering at near 40-year lows, we were able to lock in
a significant portion of our leverage costs for a one-year period. In seeking to
provide a competitive level of income in this environment, we have increased our
exposure to higher-yielding bonds in the BBB and A rating categories that meet
our strict quality criteria.
--------------------------------------------------------------------------------
PERFORMANCE HIGHLIGHTS
SIX MONTH CUMULATIVE
NEUBERGER BERMAN PERIOD ENDED TOTAL RETURN
NAV INCEPTION DATE 4/30/2003 SINCE INCEPTION
CALIFORNIA INTERMEDIATE MUNICIPAL FUND 09/24/2002 4.80% 4.69%
INTERMEDIATE MUNICIPAL FUND 09/24/2002 5.20% 5.02%
NEW YORK INTERMEDIATE MUNICIPAL FUND 09/24/2002 3.94% 3.90%
SIX MONTH CUMULATIVE
PERIOD ENDED TOTAL RETURN
MARKET PRICE INCEPTION DATE 4/30/2003 SINCE INCEPTION
CALIFORNIA INTERMEDIATE MUNICIPAL FUND 09/24/2002 (6.74%) (6.74%)
INTERMEDIATE MUNICIPAL FUND 09/24/2002 (3.14%) (3.14%)
NEW YORK INTERMEDIATE MUNICIPAL FUND 09/24/2002 (3.66%) (3.66%)
4
NEUBERGER BERMAN APRIL 30, 2003 (UNAUDITED)
Fixed-income investments have been in a dramatic bull market since early 2000,
and have continued to produce strong results through the end of this reporting
period. With interest rates at extraordinarily low levels, it is incumbent upon
us to provide our shareholders with a competitive level of tax-protected income,
while emphasizing safety and principal preservation. We believe that our
conservative approach in seeking these objectives will benefit our shareholders
in the near and long term.
INTERMEDIATE MUNICIPAL FUND INC.
For its first full six months of operation, the Intermediate Municipal Fund Inc.
outperformed the Lehman Brothers 10-Year Municipal Bond Index and generated
returns that were roughly in line with the Lipper Closed-End General Leveraged
Municipal Debt Funds Average, based on net asset value (NAV).
As of April 30, 2003, the portfolio was comprised of 74.1% in revenue bonds,
24.2% in general obligation bonds, and 1.7% in pre-refunded/escrowed securities
and cash and equivalents. Bonds subject to the Alternative Minimum Tax (AMT)
equaled 11.2% of assets. The portfolio's leverage position as of April 30 was
37.23% of assets. With the Fund now fully invested, its duration is in the
7-year range, where it is expected to remain.
CALIFORNIA INTERMEDIATE MUNICIPAL FUND INC.
For the six-month period ended April 30, 2003, the California Intermediate
Municipal Fund Inc. outperformed the Lehman Brothers 10-Year Municipal Bond
Index and generated higher returns than the Lipper Closed-End California
Municipal Debt Funds Average, based on net asset value (NAV).
As of April 30, 2003, the portfolio was comprised of 87.6% in revenue bonds,
11.0% in general obligation bonds, and 1.4% in cash and equivalents. Bonds
subject to the Alternative Minimum Tax (AMT) equaled 14.5% of assets. The
portfolio's leverage position as of April 30 was 37.32% of assets. With the Fund
now fully invested, its duration is in the 7-year range, where it is expected to
remain.
NEW YORK INTERMEDIATE MUNICIPAL FUND INC.
For the six-month period ended April 30, 2003, the New York Intermediate
Municipal Fund Inc. outperformed the Lehman Brothers 10-Year Municipal Bond
Index and generated higher returns than the Lipper Closed-End New York Municipal
Debt Funds Average, based on net asset value (NAV).
As of April 30, 2003, the portfolio was comprised of 93.9% in revenue bonds,
4.9% in general obligation bonds, and 1.2% in cash and equivalents. Bonds
subject to the Alternative Minimum Tax (AMT) equaled 16.6% of assets. The
portfolio's leverage position as of April 30 was 37.43% of assets. With the Fund
now fully invested, its duration is in the 7-year range, where it is expected to
remain.
Sincerely,
/s/ Ted Giuliano
/s/ Thomas Brophy
/s/ Lori Canell
TED GIULIANO, THOMAS BROPHY
AND LORI CANELL
PORTFOLIO CO-MANAGERS
Closed-end funds, unlike open-end funds, are not continually offered. There is a
one-time public offering and once issued, shares of closed-end funds are sold in
the open market through a stock exchange.
5
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.
6
NEUBERGER BERMAN APRIL 30, 2003(UNAUDITED)
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 (89.8%)
AMERICAN CAPITAL ACCESS
$1,000 Puerto Rico Ind. Tourist Ed. Med. & Env. Ctrl. Fac. Rev.
(Polytechnic Univ. Proj.), Ser. 2002 A, 5.25%, due 8/1/15 A $ 1,086
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 1,351
1,000 California St. Pub. Works Board Lease Rev., Ser. 2002 A,
5.25%, due 12/1/16 AAA 1,108
1,000 Fresno (CA) Unified Sch. Dist. Ref. G.O., Ser. 2002 A,
6.00%, due 2/1/17 AAA 1,213
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 2,124
500 Long Beach (CA) Fin. Au. Rev., Ser. 1992, 6.00%, due 11/1/17 AAA 608
1,145 Marin Co. (CA) Muni. Wtr. Dist. Wtr. Ref. Rev., Ser. 2002,
5.00%, due 7/1/17 AAA 1,236
1,445 Oceanside (CA) Cert. of Participation Ref. Rev., Ser. 2003 A,
5.25%, due 4/1/14 AAA 1,629
2,600 Sacramento (CA) Muni. Util. Dist. Elec. Rev., Ser. 1997 K, 5.70%,
due 7/1/17 AAA 3,084
500 Salinas Valley (CA) Solid Waste Au. Rev., Ser. 2002, 5.00%,
due 8/1/06 AAA 545
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 2,203
2,500 San Jose (CA) Fin. Au. Lease Rev. (Civic Ctr. Proj.),
Ser. 2002 B, 5.25%, due 6/1/17 AAA 2,750
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 1,012
FINANCIAL GUARANTY INSURANCE CO.
2,550 Contra Costa (CA) Comm. College Dist. G.O., Ser. 2002,
5.25%, due 8/1/17 AAA 2,813
1,000 Kings Canyon (CA) Joint Unified Sch. Dist. G.O., Ser. 2002,
5.38%, due 8/1/17 Aaa AAA 1,112
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 5,447
1,090 Moreland (CA) Sch. Dist. Ref. G.O., Ser. 2002, 5.13%,
due 9/1/17 AAA 1,188
535 Nevada & Placer Cos. (CA) Irrigation Dist. Cert. of Participation
Rev., Ser. 2002, 5.00%, due 1/1/16 AAA 583
565 Nevada & Placer Cos. (CA) Irrigation Dist. Cert. of Participation
Rev., Ser. 2002, 5.00%, due 1/1/17 AAA 611
1,045 Oakland (CA) G.O., Ser. 2002 A, 5.00%, due 1/15/15 AAA 1,139
1,210 Oakland (CA) G.O., Ser. 2002 A, 5.00%, due 1/15/18 AAA 1,293
1,290 Oakland (CA) Redev. Agcy. Sub. Tax Allocation Rev.
(Central Dist. Redev. Proj.), Ser. 2003, 5.50%, due 9/1/17 AAA 1,463
575 Port of Oakland (CA) Rev., Ser. 2002 M, 5.25%, due 11/1/17 AAA 636
2,655 Riverside Co. (CA) Eastern Muni. Wtr. Dist. Cert. of Participation
Rev., Ser. 2001 A, 5.00%, due 7/1/19 Aaa AAA 2,804
2,000 San Diego (CA) Unified Sch. Dist. G.O., Ser. 2002 D, 5.25%,
due 7/1/21 Aaa AAA 2,167
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)
$1,500 San Francisco (CA) City & Co. Int'l. Arpt. Second Ser. Rev., 5.25%,
due 5/1/16 AAA $ 1,586
FINANCIAL SECURITY ASSURANCE INC.
1,000 Burbank (CA) Pub. Svc. Dept. Elec. Rev., Ser. 1998, 5.13%,
due 6/1/16 AAA 1,088
1,000 California Hsg. Fin. Agcy. Home Mtge. Rev., Ser. 2002 V, 4.60%,
due 8/1/14 AAA 1,020
2,000 California St. Dept. of Wtr. Res. Wtr. Rev., Ser. 2001 W, 5.50%,
due 12/1/13 AAA 2,317
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 3,409
1,275 Los Angeles Co. (CA) Long Beach Unified Sch. Dist. G.O.,
Ser. 2002 D, 5.00%, due 8/1/17 AAA 1,367
500 Marin Co. (CA) Dixie Elementary Sch. Dist. G.O.,
Ser. 2000 A, 5.38%, due 8/1/17 AAA 553
3,000 Puerto Rico Muni. Fin. Agcy. Rev., Ser. 2002 A, 5.25%, due 8/1/17 AAA 3,319
1,000 Puerto Rico Muni. Fin. Agcy. Rev., Ser. 2002 A, 5.25%, due 8/1/21 Aaa AAA 1,079
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 5,378
1,000 San Jose (CA) Arpt. Ref. Rev., Ser. 2002 B, 5.00%, due 3/1/11 AAA 1,080
1,615 San Jose (CA) Arpt. Ref. Rev., Ser. 2002 B, 5.00%, due 3/1/12 AAA 1,741
1,620 Santa Clara Co. (CA) Fremont Union High Sch. Dist. G.O.,
Ser. 2002 C, 5.00%, due 9/1/20 Aaa AAA 1,714
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 1,392
4,000 California Poll. Ctrl. Fin. Au. Ref. PCR (Pacific Gas & Elec. Co.),
Ser. 1996 A, 5.35%, due 12/1/16 AAA 4,358
2,835 Glendale (CA) Redev. Agcy. Tax Allocation Rev.
(Central Glendale Redev. Proj.), Ser. 2002, 5.00%, due 12/1/16 AAA 3,111
2,480 Glendale (CA) Redev. Agcy. Tax Allocation Rev.
(Central Glendale Redev. Proj.), Ser. 2002, 5.25%, due 12/1/17 AAA 2,761
3,890 Port of Oakland (CA) Ref. Rev., Ser. 2002 N, 5.00%, due 11/1/13 AAA 4,202
750 Santa Clara Co. (CA) Saratoga Union Sch. Dist. Ref. G.O.,
Ser. 1999, 5.13%, due 9/1/11 AAA 846
3,905 Solano Co. (CA) Cert. of Participation Rev., Ser. 2002, 5.25%,
due 11/1/17 AAA 4,311
1,000 Univ. of California Regents Rev. (Multiple Purp. Proj.),
Ser. 2000 K, 5.00%, due 9/1/12 AAA 1,082
--------
88,919
--------
TAX-EXEMPT SECURITIES-OTHER (67.5%)
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 A- 3,100
900 Brazos (TX) River Au. PCR (TXU Energy Co. LLC Proj.),
Ser. 2003 A, 6.75%, due 4/1/38 Baa2 BBB 917++
750 Brazos (TX) River Au. Ref. Rev. (Reliant Energy, Inc. Proj.),
Ser. 1999 B, 7.75%, due 12/1/18 Ba1 BBB- 782++
1,000 Brazos (TX) River Harbor Navigation Dist. Env. Rev.
(Dow Chemical Co. Proj.), Ser. 2002 A-4, 5.20%, due 5/15/33 A3 A 1,035++
8
NEUBERGER BERMAN APRIL 30, 2003(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)
$1,000 California Co. (CA) Tobacco Securitization Agcy. Tobacco
Settlement Asset-Backed Rev., Ser. 2002, 4.75%, due 6/1/19 A1 A+ $ 940
4,500 California Dept. of Wtr. Res. Pwr. Supply Rev., Ser. 2002 A, 5.75%,
due 5/1/17 A3 BBB+ 5,003
1,000 California Dept. of Wtr. Res. Pwr. Supply Rev., Ser. 2002 A, 5.38%,
due 5/1/22 A3 BBB+ 1,048
1,750 California Ed. Fac. Au. Ref. Rev. (Stanford Univ.),
Ser. 2001 R, 5.00%, due 11/1/21 Aaa AAA 1,842
2,000 California Hlth. Fac. Fin. Au. Rev. (Cedars-Sinai Med. Ctr.),
Ser. 1999 A, 6.13%, due 12/1/19 A3 2,170
1,000 California Hlth. Fac. Fin. Au. Rev. (Kaiser Permanente),
Ser. 1998 B, 5.00%, due 10/1/20 AAA 1,014
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 1,540++
2,500 California Poll. Ctrl. Fin. Au. Solid Waste Disp. Rev.
(Waste Management, Inc. Proj.), Ser. 2002 B, 4.45%, due 7/1/27 BBB 2,558++
1,000 California Poll. Ctrl. Fin. Au. Solid Waste Disp. Rev.
(Waste Management, Inc. Proj.), Ser. 2002 C, 4.85%, due 12/1/27 BBB 1,041++
2,250 California St. G.O., Ser. 2002, 5.00%, due 10/1/17 A1 A+ 2,343
1,000 California St. Univ., Fresno Assoc., Inc. Rev. (Auxiliary Organization
Event Ctr.), Ser. 2002, 5.00%, due 7/1/12 Baa3 BBB- 1,054
2,000 California Statewide CDA Cert. of Participation Rev.
(Children's Hosp. Los Angeles), Ser. 1999, 5.13%, due 8/15/19 A2 A+ 2,060
2,000 California Statewide CDA Cert. of Participation Rev.
(The Internext Group), Ser. 1999, 5.38%, due 4/1/17 BBB 2,035
5,000 California Statewide CDA Hlth. Fac. Rev. (Memorial Hlth. Svcs.),
Ser. 2003 A, 6.00%, due 10/1/16 A3 A 5,556
3,000 California Statewide CDA Rev. (Kaiser Permanente Proj.),
Ser. 2002 E, 4.70%, due 11/1/36 A3 3,187
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+ 1,046
1,020 Cerritos (CA) Pub. Fin. Au. Sub. Tax Allocation Rev.
(Cerritos Redev. Proj.), Ser. 2002 B, 4.40%, due 11/1/16 BBB 1,020
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+ 1,056
1,000 De Kalb Co. (GA) Dev. Au. Ref. PCR (General Motors Corp. Proj.),
Ser. 2002, 6.00%, due 3/15/21 A3 BBB 1,028++
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+ 1,214
1,270 Los Angeles (CA) Dept. of Wtr. & Pwr. Sys. Rev., Sub.
Ser. 2001 A-3, 5.38%, due 7/1/20 Aa3 1,352
2,250 Louisiana Tobacco Settlement Fin. Corp. Tobacco Settlement
Asset-Backed Rev., Ser. 2001 B, 5.50%, due 5/15/30 A1 A 1,815
1,500 Morehouse Parish (LA) PCR (Int'l. Paper Co. Proj.),
Ser. 2001 A, 5.25%, due 11/15/13 Baa2 BBB 1,551++
1,405 North Carolina Muni. Pwr. Agcy. Number 1 Catawba Elec. Rev.,
Ser. 2003 A, 5.50%, due 1/1/14 Baa1 BBB+ 1,543
605 Oakland (CA) Redev. Agcy. Rev. (Coliseum Area Redev. Proj.),
Ser. 2003, 5.00%, due 9/1/16 A- 632
635 Oakland (CA) Redev. Agcy. Rev. (Coliseum Area Redev. Proj.),
Ser. 2003, 5.00%, due 9/1/17 A- 659
3,000 Puerto Rico Children's Trust Tobacco Settlement Asset-Backed Rev.,
Ser. 2002, 5.38%, due 5/15/33 A1 A 2,495
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)
$ 440 Roseville (CA) Special Tax Comm. Fac. Dist. Number 1
(Stone Point Proj.), Ser. 2003, 5.70%, due 9/1/17 $ 440
800 San Diego (CA) Cert. of Participation Rev. (Natural History
Museum), Ser. 1998, 5.50%, due 2/1/13 Baa3 853
830 San Diego (CA) Redev. Agcy. Sub. Parking Rev.
(Centre City Redev. Proj.), Ser. 2003 B, 4.80%, due 9/1/15 Baa2 A- 848
820 San Diego (CA) Redev. Agcy. Sub. Parking Rev.
(Centre City Redev. Proj.), Ser. 2003 B, 4.90%, due 9/1/16 Baa2 A- 839
3,000 San Francisco (CA) Bay Area Toll Au. Toll Bridge Rev.,
Ser. 2001 D, 5.00%, due 4/1/17 Aa3 AA 3,206
1,000 Santa Rosa (CA) Rancheria Tachi Yokut Tribe Enterprise Rev.,
Ser. 2003, 6.13%, due 3/1/13 BBB 1,001
1,000 South Gate (CA) Pub. Fin. Au. Tax Allocation Rev.
(South Gate Redev. Proj. Number 1), Ser. 2002, 5.00%,
due 9/1/16 AAA 1,088
600 Univ. of California Regents Cert. of Participation Rev. (San Diego
Campus & Sacramento Proj.), Ser. 2002 A, 5.25%, due 1/1/18 Aa2 644
750 Verrado (AZ) Comm. Fac. Dist. Number 1 G.O., Ser. 2003, 6.15%,
due 7/15/17 753
750 Virgin Islands Pub. Fin. Au. Rev., Ser. 1998 E, 6.00%, due 10/1/22 765
1,000 Virgin Islands Wtr. & Pwr. Au. Elec. Sys. Ref. Rev., Ser. 1998, 5.30%,
due 7/1/18 1,005
--------
66,895
--------
TAX-EXEMPT CASH EQUIVALENT SECURITIES-BACKED BY INSURANCE (0.3%)
MUNICIPAL BOND INVESTORS ASSURANCE CORP.
300 California Hsg. Fin. Agcy. Home Mtge. Rev., Ser. 2002 J,
1.20%, VRDN due 2/1/33 VMIG1 A-1+ 300
--------
TOTAL INVESTMENTS (157.6%) (COST $153,158) 156,114##
Cash, receivables and other assets, less liabilities (1.9%) 1,973
Auction Market Preferred Shares at redemption value [(59.5%)] (59,000)
--------
TOTAL NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS (100.0%) $ 99,087
--------
10
NEUBERGER BERMAN APRIL 30, 2003 (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--ESCROWED IN U.S. GOVERNMENT SECURITIES (0.7%)
$ 1,670 Illinois Metro. Pier & Exposition Au. Rev., Ser. 1998 A,
5.50%, due 6/15/17 AAA $ 1,952
--------
TAX-EXEMPT SECURITIES--BACKED BY INSURANCE (77.0%)
AMERICAN MUNICIPAL BOND ASSURANCE CORP.
1,500 California St. Pub. Works Board Lease Rev., Ser. 2002 A,
5.25%, due 12/1/17 AAA 1,651**
5,000 Chicago (IL) G.O., Ser. 1995 A-2, 6.25%, due 1/1/13 Aaa AAA 6,019
6,120 Chicago (IL) G.O., Ser. 2002 A, 5.38%, due 1/1/17 Aaa AAA 6,765
4,220 Colorado Springs (CO) Util. Sys. Sub. Lien Ref. Rev.,
Ser. 2002 A, 5.38%, due 11/15/18 AAA 4,659
4,100 Fargo (ND) Hlth. Sys. Rev. (Meritcare Obligated Group),
Ser. 2002 A, 5.63%, due 6/1/17 AAA 4,528
1,065 Indiana St. Recreational Dev. Comm. Rev., Ser. 2002, 5.25%,
due 7/1/18 AAA 1,152
1,125 Indiana St. Recreational Dev. Comm. Rev., Ser. 2002, 5.25%,
due 7/1/19 AAA 1,209
3,000 Massachusetts Port Au. Spec. Fac. Rev. (Delta Air Lines,
Inc. Proj.), Ser. 2001 A, 5.50%, due 1/1/19 AAA 3,136
5,010 New Hampshire Hlth. & Ed. Fac. Au. Rev. (Univ. Sys. of New
Hampshire), Ser. 1992, 5.38%, due 7/1/17 AAA 5,540
7,000 Palm Beach Co. (FL) Sch. Board Cert. of Participation,
Ser. 2001 B, 5.38%, due 8/1/17 AAA 7,757
4,610 Thornton (CO) Cert. of Participation, Ser. 2002, 5.38%,
due 12/1/16 Aaa AAA 5,169
FINANCIAL GUARANTY INSURANCE CO.
2,150 Cass Lake-Bena (MN) Ind. Sch. Dist. Number 115 Ref. G.O.,
5.00%, due 2/1/18 AAA 2,313
4,000 Denver (CO) City & Co. Arpt. Sys. Ref. Rev., Ser. 2002 E,
5.25%, due 11/15/14 Aaa AAA 4,314
3,075 Detroit (MI) Sch. Dist. Sch. Bldg. & Site Imp. G.O.,
Ser. 2002 A, 5.50%, due 5/1/15 AAA 3,521
3,235 Houston (TX) Arpt. Sys. Sub. Lien Ref. Rev., Ser. 2001 A,
5.50%, due 7/1/16 AAA 3,491
4,355 Las Vegas (NV) Valley Wtr. Dist. Ref. & Wtr. Imp. G.O.,
Ser. 2003 A, 5.25%, due 6/1/16 Aaa AAA 4,810
4,935 Massachusetts St. Hlth. & Ed. Fac. Au. Rev. (New England
Med. Ctr. Hosp.), Ser. 2002 H, 5.38%, due 5/15/16 AAA 5,395
2,140 Mt. Pleasant (SC) Wtr. & Swr. Sys. Ref. & Imp. Rev.,
Ser. 2002, 5.25%, due 12/1/17 AAA 2,357
2,080 Oakland (CA) Redev. Agcy. Sub. Tax Allocation Rev. (Central
Dist. Redev. Proj.), Ser. 2003, 5.50%, due 9/1/18 AAA 2,342
8,140 Orange Co. (FL) Sales Tax Ref. Rev., Ser. 2002 A, 5.13%,
due 1/1/18 Aaa AAA 8,841
2,000 Philadelphia (PA) Arpt. Rev. (Philadelphia Arpt. Sys.),
Ser. 1998 A, 5.38%, due 6/15/14 AAA 2,148
6,250 Port of Seattle (WA) Rev., Ser. 1999, 5.50%, due 9/1/16 AAA 6,801
5,500 Prince Georges Co. (MD) Cons. Pub. Imp. G.O., Ser. 2001,
5.25%, due 12/1/16 Aaa AAA 6,111
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)
$ 1,000 Sarasota Co. (FL) Util. Sys. Ref. Rev., Ser. 2002 C, 5.25%,
due 10/1/20 Aaa AAA $ 1,081
2,500 Tacoma (WA) Wtr. Sys. Rev., Ser. 2001, 5.13%, due 12/1/19 AAA 2,652
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 3,896
1,100 Charleston Co. (SC) Sch. Dist. G.O., Ser. 2001, 5.00%,
due 2/1/18 Aa1 1,175
3,600 Corpus Christi (TX) Tax & Muni. Hotel Occupancy Tax G.O.,
Ser. 2002, 5.50%, due 9/1/17 AAA 4,014
8,800 Energy Northwest (WA) Elec. Ref. Rev. (Proj. No. 3),
Ser. 2001 A, 5.50%, due 7/1/17 Aaa AAA 9,743
7,000 Harris Co. (TX) Toll Road Sr. Lien Ref. Rev., Ser. 2002,
5.38%, due 8/15/16 AAA 7,821
2,580 Indianapolis (IN) Local Pub. Imp. Rev. (Indianapolis Arpt.
Au. Proj.), Ser. 2003 A, 5.63%, due 1/1/17 AAA 2,831
2,000 Kane, Cooke, & DuPage Cos. (IL) Elgin Sch. Dist. Number U-46
G.O., Ser. 1998, 5.35%, due 1/1/15 Aaa 2,211
5,000 King & Snohomish Cos. (WA) Northshore Sch. Dist. Number 417
G.O., Ser. 2002, 5.50%, due 12/1/17 Aaa AAA 5,570
4,260 King Co. (WA) Pub. Trans. Sales Tax Ref. G.O., Ser. 2002,
5.38%, due 12/1/14 Aaa AAA 4,810
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 3,304
1,725 Maine Muni. Bond Bank Rev., Ser. 1998 C, 5.35%, due 11/1/18 AAA 1,895
5,000 New Jersey Bldg. Au. St. Bldg. Ref. Rev., Ser. 2002 B,
5.25%, due 12/15/15 AAA 5,575
750 Palm Beach Co. (FL) Sch. Board Cert. of Participation,
Ser. 2002 D, 5.25%, due 8/1/16 AAA 830
4,665 South Carolina St. Pub. Svc. Au. Rev., Ser. 2002 B, 5.38%,
due 1/1/18 Aaa AAA 5,127
4,200 Tarrant (TX) Reg. Wtr. Dist. Wtr. Ref. & Imp. Rev.,
Ser. 2002, 5.38%, due 3/1/16 Aaa AAA 4,702
5,395 Truckee Meadows (NV) Wtr. Au. Wtr. Rev., Ser. 2001 A, 5.50%,
due 7/1/15 AAA 6,038
1,370 Wisconsin St. Hlth. & Ed. Fac. Au. Rev. (Aurora Med. Group,
Inc. Proj.), Ser. 1996, 6.00%, due 11/15/11 Aaa AAA 1,590
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 1,607
3,000 CDP-King Co. III (WA) Lease Rev. (King Street Ctr. Proj.),
Ser. 1997, 5.13%, due 6/1/17 Aaa AAA 3,131
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 5,869
4,575 Henry Co. (GA) Wtr. & Swr. Au. Wtr. & Swr. Ref. Rev.,
Ser. 2002 A, 5.13%, due 2/1/17 Aaa AAA 5,054
12
NEUBERGER BERMAN APRIL 30, 2003 (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)
$ 4,955 Houston (TX) Pub. Imp. Ref. G.O., Ser. 2002, 5.25%,
due 3/1/17 AAA $ 5,397
5,000 Illinois G.O., First Ser. 2002, 5.25%, due 10/1/14 Aaa 5,588
3,000 Illinois Hlth. Fac. Au. Rev. (Loyola Univ.), Ser. 1997 A,
6.00%, due 7/1/14 Aaa AAA 3,540
1,000 Indiana Muni. Pwr. Agcy. Pwr. Supply Sys. Rev., Ser. 2002 B,
5.25%, due 1/1/18 Aaa AAA 1,086
1,850 Massachusetts St. G.O., Ser. 2002 E, 5.38%, due 1/1/18 AAA 2,051
5,000 Michigan St. Hsg. Dev. Au. Single Family Mtge., Ser. 2001 A,
5.30%, due 12/1/16 AAA 5,250
2,710 Newnan (GA) Hosp. Au. Rev. Anticipation Certificates (Newnan
Hosp. Inc. Proj.), Ser. 2002, 5.50%, due 1/1/18 Aaa 3,012
1,910 Southmost (TX) Reg. Wtr. Au. Wtr. Supply Contract Rev.
(Desalination Plant Proj.), Ser. 2002, 5.50%, due 9/1/19 Aaa 2,102
1,000 Trinity (TX) River Au. Imp. & Ref. Rev. (Tarrant Co. Wtr.
Proj.), Ser. 2003, 5.50%, due 2/1/16 AAA 1,130
4,555 Washington St. G.O., Ser. 1998 C, 6.00%, due 7/1/12 AAA 5,410
7,205 Wisconsin St. G.O., Ser. 2002 C, 5.25%, due 5/1/17 Aaa AAA 7,875
--------
232,996
--------
TAX-EXEMPT SECURITIES--OTHER (80.5%)
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 4,145
1,000 Austin (TX) Convention Enterprises, Inc. Convention Ctr.
Hotel First Tier Rev., Ser. 2001 A, 6.38%, due 1/1/16 Baa3 BBB- 1,031
2,000 Badger (WI) Tobacco Asset Securitization Corp. Tobacco
Settlement Asset-Backed Rev., Ser. 2002, 5.50%, due 6/1/10 A1 A 1,905
6,750 Badger (WI) Tobacco Asset Securitization Corp. Tobacco
Settlement Asset-Backed Rev., Ser. 2002, 6.13%, due 6/1/27 A1 A 6,067
1,135 Beaufort Co. (SC) Sch. Dist. G.O., Ser. 2001 A, 5.00%,
due 3/1/18 Aa1 1,206
2,000 Boone Co. (MO) Hosp. Ref. Rev., Ser. 2002, 5.05%, due 8/1/20 A3 2,026
2,425 Branson (MO) Dev. Fin. Board Infrastructure Fac. Board Rev.,
Ser. 2003 A, 5.00%, due 12/1/17 Baa1 2,488
3,300 Brazos (TX) River Au. PCR (TXU Energy Co. LLC Proj.),
Ser. 2003 A, 6.75%, due 4/1/38 Baa2 BBB 3,362++
1,000 Brazos (TX) River Au. Ref. Rev. (Reliant Energy, Inc.
Proj.), Ser. 1999 B, 7.75%, due 12/1/18 Ba1 BBB- 1,042++
4,000 Brazos (TX) River Harbor Navigation Dist. Env. Rev. (Dow
Chemical Co. Proj.), Ser. 2002 B-2, 4.75%, due 5/15/33 A3 A 4,103++
2,500 Broward Co. (FL) G.O., Ser. 2001 A, 5.25%, due 1/1/18 Aa1 2,742
5,000 Burke Co. (GA) Dev. Au. PCR (Georgia Pwr. Co. Plant Vogtle
Proj.), Ser. 2001, 4.45%, due 1/1/32 A2 A 5,333
2,500 California Dept. of Wtr. Res. Pwr. Supply Rev., Ser. 2002 A,
5.75%, due 5/1/17 A3 BBB+ 2,779
3,460 California Dept. of Wtr. Res. Pwr. Supply Rev., Ser. 2002 A,
5.38%, due 5/1/22 A3 BBB+ 3,628
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 3,593++
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)
$ 1,240 California Statewide CDA Hlth. Fac. Rev. (Memorial Hlth.
Svcs.), Ser. 2003 A, 6.00%, due 10/1/16 A3 A $ 1,378
1,500 Chicago (IL) Metro. Wtr. Reclamation Dist. G.O., Ser. 2002
C, 5.38%, due 12/1/16 AAA 1,675
1,000 Clark Co. (WA) Vancouver Sch. Dist. Number 37 G.O.,
Ser. 1998, 5.13%, due 12/1/12 Aa3 1,124
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+ 1,856
4,210 DCH Hlth. Care Au. (AL) Hlth. Care Fac. Rev., Ser. 2002,
5.25%, due 6/1/14 A1 A+ 4,499
1,000 Delaware River (PA-NJ) Joint Toll Bridge Comm. Sys. Rev.,
Ser. 2003, 5.25%, due 7/1/18 A2 A- 1,080
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 1,121
2,000 Denver (CO) City & Co. Arpt. Rev., Ser. 1991 D, 7.75%,
due 11/15/13 AAA 2,538
4,495 Dist. of Columbia (Washington, D.C.) Ref. G.O., Ser. 2002 C,
5.25%, due 6/1/13 AAA 4,949
1,750 Ector Co. (TX) Dist. Hosp. Rev., Ser. 2002 A, 5.63%,
due 4/15/16 A2 A- 1,806
1,745 Ector Co. (TX) Dist. Hosp. Rev., Ser. 2002 A, 5.63%,
due 4/15/17 A2 A- 1,793
825 Fort Bend Co. (TX) Ind. Dev. Corp. Ref. PCR (Frito-Lay, Inc.
Proj.), Ser. 1987, 3.00%, due 10/1/11 A1 826++
2,000 Freeborn Co. (MN) Hsg. & Redev. Au. Lease Rev. (Criminal
Justice Ctr. Proj.), Ser. 2002, 5.38%, due 2/1/17 Baa1 2,084
5,000 Golden St. (CA) Tobacco Securitization Corp. Tobacco
Settlement Asset-Backed Rev., Ser. 2003 A-1, 6.25%,
due 6/1/33 A1 A 4,364
5,130 Illinois Ed. Fac. Au. Rev. (Field Museum of Natural
History), Ser. 2002, 4.30%, due 11/1/36 A2 A 5,218
10,000 Indiana Bond Bank Rev., Ser. 2001 A, 5.38%, due 2/1/17 AAA 11,203
3,560 Indiana Bond Bank Rev., Ser. 2002 B, 5.25%, due 2/1/18 Baa2 A- 3,886
3,500 Indiana St. Dev. Fin. Au. Solid Waste Disp. Rev. (Waste
Management, Inc. Proj.), Ser. 2001, 3.45%, due 10/1/31 BBB 3,508++
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 2,211
1,070 Ingham & Clinton Cos. (MI) East Lansing Bldg. Au. Ref. G.O.,
Ser. 1999, 5.25%, due 10/1/16 AA 1,177
3,000 Iowa Tobacco Settlement Au. Tobacco Settlement Asset-Backed
Rev., Ser. 2001 B, 5.30%, due 6/1/25 A1 A 2,319
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 2,142
1,050 Kent Co. (MI) Forest Hills Pub. Sch. Unlimited G.O.,
Ser. 2000, 5.25%, due 5/1/19 Aa2 1,128
1,000 Louisiana Tobacco Settlement Fin. Corp. Tobacco Settlement
Asset-Backed Rev., Ser. 2001 B, 5.50%, due 5/15/30 A1 A 807
14
NEUBERGER BERMAN APRIL 30, 2003 (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)
$ 2,000 Lubbock (TX) Hlth. Fac. Dev. Corp. Rev. (St. Joseph Hlth.
Sys.), Ser. 1998, 5.25%, due 7/1/16 Aa3 AA- $ 2,096
1,500 Maricopa Co. (AZ) IDA Multi-Family Hsg. Rev. (Sun King Apts.
Proj.), Ser. 2000 A, 6.75%, due 11/1/18 A3 A 1,451
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 1,036++
1,000 Maryland St. Hlth. & Higher Ed. Fac. Au. Rev. (Union Hosp.
of Cecil Co.), Ser. 2002, 5.50%, due 7/1/14 A3 1,106
2,400 Mashantucket Western Pequot Tribe (CT) Spec. Rev., Sub.
Ser. 1997 B, 5.70%, due 9/1/12 Baa3 2,552
2,450 Massachusetts St. Hlth. & Ed. Fac. Au. Rev. (Caritas Christi
Oblig. Group), Ser. 1999 A, 5.70%, due 7/1/15 A+ 2,328
2,810 Massachusetts St. Hlth. & Ed. Fac. Au. Rev.
(Milford-Whitinsville Reg. Hosp.), Ser. 1998 C, 5.75%,
due 7/15/13 Baa2 BBB 2,999
5,000 Massachusetts St. Wtr. Poll. Abatement Trust Rev.,
Ser. 2001-7, 5.25%, due 2/1/16 AAA 5,498
5,030 Massachusetts St. Wtr. Poll. Abatement Trust Rev. (MWRA
Prog.), Ser. 2002 A, 5.25%, due 8/1/19 Aaa AAA 5,455
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 3,268
1,085 Mesa (AZ) IDA Rev. (ASU East-Maricopa Std. Hsg.), Ser. 2001,
5.70%, due 7/1/11 A 1,203
1,500 Michigan St. Bldg. Au. Rev. (Fac. Prog.), Ser. 2001 II,
5.50%, due 10/15/18 Aa1 AA+ 1,666
2,735 Michigan Strategic Fund Solid Waste Disp. Ltd. Oblig. Ref.
Rev. (Waste Mgt., Inc. Proj.), Ser. 2002, 5.45%, due 12/1/12 BBB 2,807++
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 2,280
1,000 Missouri St. Hsg. Dev. Comm. Multi-Family Hsg. Rev.,
Ser. 2001 III, 5.05%, due 12/1/15 AA 1,066
1,380 Missouri St. Hsg. Dev. Comm. Multi-Family Hsg. Rev.,
Ser. 2001 II, 5.25%, due 12/1/16 AA 1,477
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 5,014
3,000 Moraine (OH) Solid Waste Disp. Rev. (General Motors Corp.
Proj.), Ser. 1994, 6.75%, due 7/1/14 A3 BBB 3,317++
2,500 Morehouse Parish (LA) PCR (Int'l. Paper Co. Proj.),
Ser. 2001 A, 5.25%, due 11/15/13 Baa2 BBB 2,586++
2,000 Nevada St. Cap. Imp. Ltd. G.O., Ser. 1998 B, 5.13%,
due 4/15/17 Aa2 2,159
1,375 New Haven (MI) Comm. Sch. G.O., Ser. 2002, 5.25%, due 5/1/17 AAA 1,510
6,900 New Jersey Ed. Fac. Au. Rev. (Stevens Institute of
Technology), Ser. 2002 C, 5.25%, due 7/1/17 Baa1 A- 7,318
4,000 New Jersey Hlth. Care Fac. Fin. Au. Rev. (Somerset Med. Ctr.
Proj.), Ser. 2002, 5.50%, due 7/1/18 Baa1 A- 4,065
3,250 New York City (NY) G.O., Ser. 2002 C, 5.50%, due 8/1/15 A2 3,478
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 2,827
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)
$ 3,500 New York St. Dorm. Au. Rev., Ser. 2003 A, 5.38%, due 3/15/20 AA $ 3,818
1,000 New York St. Dorm. Au. Rev. (Mount Sinai NYU Hlth. Oblig.
Group), Ser. 2000 C, 6.00%, due 7/1/26 Baa3 1,000
2,800 New York St. Urban Dev. Corp. Ref. Rev. (Correctional Cap.
Fac.), Ser. 1998, 5.00%, due 1/1/14 A3 AA- 2,946
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- 5,032
3,760 Ohio Air Quality Dev. Au. Env. Imp. Ref. Rev. (USX Corp.
Proj.), Ser. 1995, 5.00%, due 11/1/15 Baa1 3,797++
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+ 2,204
3,850 Royal Oak (MI) Hosp. Fin. Hosp. Ref. Rev. (William Beaumont
Hosp.), Ser. 1996 I, 6.25%, due 1/1/12 Aa3 AA- 4,482
2,260 San Antonio (TX) Cert. of Obligation G.O., Ser. 2002, 5.00%,
due 2/1/14 Aa2 2,463
6,795 San Antonio (TX) Ind. Sch. Dist. Unlimited Tax G.O.,
Ser. 2001 B, 5.38%, due 8/15/17 Aaa AAA 7,443
740 San Diego (CA) Redev. Agcy. Sub. Parking Rev. (Centre City
Redev. Proj.), Ser. 2003 B, 5.00%, due 9/1/17 Baa2 A- 757
2,000 Sayre (PA) Hlth. Care Fac. Au. Rev. (Guthrie Hlth. Proj.),
Ser. 2002 A, 5.75%, due 12/1/21 A- 2,087
155 Spokane Co. (WA) Ltd. Tax G.O., Ser. 1998, 5.10%,
due 12/1/17 Aa3 167
2,500 St. Louis (MO) IDA Rev. (St. Louis Convention Ctr.
Headquarters Hotel Proj.), Ser. 2000 A, 7.00%, due 12/15/15 Baa3 2,516
2,540 St. Paul (MN) Port Au. Lease Rev. (Office Bldg. at Cedar
Street), Ser. 2002, 5.00%, due 12/1/17 Aa1 2,745
500 Texas Std. Hsg. Corp. Std. Hsg. Rev. (Midwestern St. Univ.
Proj.), Ser. 2002, 5.50%, due 9/1/12 Baa3 499
1,085 Tyler (TX) Hlth. Fac. Dev. Corp. Hosp. Rev. (Mother Frances
Hosp.), Ser. 2003, 5.25%, due 7/1/13 Baa1 1,121*
3,500 Union Co. (SC) IDR (Federal Paper Board Co., Inc. Proj.),
Ser. 1989, 4.55%, due 11/1/09 Baa2 BBB 3,630++
2,950 Univ. of Texas Board of Regents Fin. Sys. Rev., Ser. 1999 B,
5.38%, due 8/15/18 AAA 3,229
1,900 Univ. of Wisconsin Hosp. & Clinics Au. Hosp. Rev., Ser. 2002
B, 5.50%, due 4/1/12 A1 2,059
1,750 Verrado (AZ) Comm. Fac. Dist. Number 1 G.O., Ser. 2003,
6.15%, due 7/15/17 1,756
3,125 Washington St. Hlth. Care Fac. Au. Rev. (Yakima Valley Mem.
Hosp. Assoc.), Ser. 2002, 5.00%, due 12/1/17 A 3,175
1,000 Washington St. Var. Purp. G.O., Ser. 1999 A, 4.75%,
due 7/1/17 Aa1 AA+ 1,029
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 2,052++
2,780 Wisconsin St. Hlth. & Ed. Fac. Au. Rev. (Kenosha Hosp. &
Med. Ctr., Inc. Proj.), Ser. 1999, 5.50%, due 5/15/15 A 2,898
--------
243,609
--------
16
NEUBERGER BERMAN APRIL 30, 2003 (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 LETTERS OF CREDIT (0.1%)
BNP PARIBAS
$ 100 Alachua Co. (FL) Hlth. Fac. Continuing Care Rev. (Oak
Hammock Univ. Proj.), Ser. 2002 A, 1.35%, VRDN due 10/1/32 VMIG1 $ 100
MORGAN GUARANTY TRUST CO.
200 New York City (NY) G.O., Sub. Ser. 1993 A-10, 1.26%, VRDN
due 8/1/17 VMIG1 A-1+ 200
30 New York St. Job Dev. Au. Spec. Purp. Rev., Ser. B1 - B21,
1.30%, VRDN due 3/1/05 VMIG1 30
--------
330
--------
TOTAL INVESTMENTS (158.3%) (COST $469,725) 478,887##
Cash, receivables and other assets, less liabilities (1.0%) 2,993
Auction Market Preferred Shares at redemption value [(59.3%)] (179,400)
--------
TOTAL NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS (100.0%) $302,480
--------
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 (36.2%)
AMERICAN CAPITAL ACCESS
$1,060 Puerto Rico Ind. Tourist Ed. Med. & Env. Ctrl. Fac. Rev.
(Polytechnic Univ. Proj.), Ser. 2002 A, 5.25%, due 8/1/16 A $ 1,144
AMERICAN MUNICIPAL BOND ASSURANCE CORP.
2,000 Metro. Trans. Au. (NY) Ref. Rev., Ser. 2002 A, 5.50%,
due 11/15/15 AAA 2,280
2,920 New York City (NY) IDA Civic Fac. Rev. (Packer Collegiate
Institute Proj.), Ser. 2002, 5.00%, due 6/1/22 Aaa AAA 3,043
960 New York City (NY) Muni. Wtr. Fin. Au. Wtr. & Swr. Sys. Rev.,
Ser. 1992 A, 5.88%, due 6/15/13 Aaa 1,132
2,025 New York City (NY) Transitional Fin. Au. Ref. Rev., Ser. 2002 C,
5.25%, due 8/1/17 AAA 2,226
2,410 New York St. Dorm. Au. Rev. (Rochester Institute of
Technology Proj.), Ser. 2002 A, 5.25%, due 7/1/19 Aaa 2,618
3,000 Port Authority of NY & NJ Rev., Ser. 2002, 5.50%,
due 12/15/12 AAA 3,395
1,535 Ulster Co. (NY) Res. Rec. Agcy. Solid Waste Sys. Ref. Rev.,
Ser. 2002, 5.25%, due 3/1/16 AAA 1,687
FINANCIAL GUARANTY INSURANCE CO.
3,255 Metro. Trans. Au. (NY) Rev., Ser. 2001 A, 5.25%,
due 11/15/14 AAA 3,624
FINANCIAL SECURITY ASSURANCE INC.
500 Long Island (NY) Pwr. Au. Elec. Sys. Rev., Ser. 1998 A,
5.13%, due 12/1/16 Aaa AAA 542
1,410 New York City (NY) Hlth. & Hosp. Corp. Rev., Ser. 2002 A,
5.50%, due 2/15/13 AAA 1,593
MUNICIPAL BOND INVESTORS ASSURANCE CORP.
1,600 New York St. Dorm. Au. Rev. (Culinary Institute of America),
Ser. 1999, 5.38%, due 7/1/15 AAA 1,782
2,000 New York St. Dorm. Au. Rev. (Long Island Jewish Med. Ctr. Proj.),
Ser. 1998, 5.00%, due 7/1/18 AAA 2,087
1,980 New York St. Dorm. Au. Rev. (New York Med. College Proj.),
Ser. 1998, 5.00%, due 7/1/21 Aaa AAA 2,057
--------
29,210
--------
TAX-EXEMPT SECURITIES--OTHER (121.6%)
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 3,178
800 Brazos (TX) River Au. PCR (TXU Energy Co. LLC Proj.),
Ser. 2003 A, 6.75%, due 4/1/38 Baa2 BBB 815++
750 Brazos (TX) River Au. Ref. Rev. (Reliant Energy, Inc. Proj.),
Ser. 1999 B, 7.75%, due 12/1/18 Ba1 BBB- 782++
1,000 Brazos (TX) River Harbor Navigation Dist. Env. Rev. (Dow
Chemical Co. Proj.), Ser. 2002 A-4, 5.20%, due 5/15/33 A3 A 1,035++
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+ 1,681
1,000 De Kalb Co. (GA) Dev. Au. Ref. PCR (General Motors Corp. Proj.),
Ser. 2002, 6.00%, due 3/15/21 A3 BBB 1,028++
1,000 Dutchess Co. (NY) IDA Civic Fac. Ref. Rev. (Marist College Proj.),
Ser. 2003 A, 5.15%, due 7/1/17 Baa1 1,041
2,000 Dutchess Co. (NY) IDA Ind. Rev. (IBM Proj.), Ser. 1999,
5.45%, due 12/1/29 A1 A+ 2,216++
18
NEUBERGER BERMAN APRIL 30, 2003 (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)
$ 585 Kenmore Village (NY) Hsg. Au. Std. Hsg. Rev. (St. Univ. of
N.Y. at Buffalo Std. Apt. Proj.), Ser. 1999 A, 5.40%,
due 8/1/12 Baa1 AA $ 651
2,000 Long Island Pwr. Au. (NY) Elec. Sys. Gen. Rev., Ser. 1998 A,
5.50%, due 12/1/13 Aaa AAA 2,355
2,000 Louisiana Tobacco Settlement Fin. Corp. Tobacco Settlement
Asset-Backed Rev., Ser. 2001 B, 5.50%, due 5/15/30 A1 A 1,613
1,000 Monroe Co. (NY) G.O. Pub. Imp. Ref. Rev., Ser. 1996, 6.00%,
due 3/1/13 A3 AA- 1,172
980 Monroe Co. (NY) Ind. Dev. Agcy. Std. Hsg. Rev. (Collegiate
Hsg. Foundation - Rochester Institute of Technology Proj.),
Ser. 1999 A, 5.25%, due 4/1/19 Baa3 960
1,000 Morehouse Parish (LA) PCR (Int'l. Paper Co. Proj.), Ser. 2001 A,
5.25%, due 11/15/13 Baa2 BBB 1,034++
1,000 New York City (NY) G.O., Ser. 1998 J, 5.00%, due 8/1/11 A2 A 1,050
1,500 New York City (NY) G.O., Ser. 2002 A, 5.50%, due 8/1/11 A2 A 1,645
1,000 New York City (NY) G.O., Ser. 2002 A, 5.75%, due 8/1/16 A2 A 1,083
750 New York City (NY) G.O., Ser. 2002 C, 5.50%, due 8/1/15 A2 802
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 4,063
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 1,089
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 1,105
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 4,424
3,000 New York City (NY) Transitional Fin. Au. Ref. Rev., Ser. 2002 B,
5.25%, due 2/1/29 Aa2 3,268
250 New York St. Dorm. Au. Ref. Rev. (Brookdale Hosp. Med. Ctr.),
Ser. 1998 J, 5.20%, due 2/15/16 A3 AA- 265
3,000 New York St. Dorm. Au. Ref. Rev. (North Gen. Hosp. Proj.),
Ser. 2003, 5.75%, due 2/15/17 AA- 3,360
1,125 New York St. Dorm. Au. Rev. (City Univ. Sys. Proj.), Ser. 1995 A,
5.63%, due 7/1/16 A3 AA- 1,302
1,010 New York St. Dorm. Au. Rev. (Columbia Univ. Proj.), Ser. 2001 A,
5.25%, due 7/1/16 AAA 1,120
2,985 New York St. Dorm. Au. Rev. (Lenox Hill Hosp. Oblig. Group Proj.),
Ser. 2001, 5.75%, due 7/1/14 A3 3,299
2,000 New York St. Dorm. Au. Rev. (Lenox Hill Hosp. Oblig. Group
Proj.), Ser. 2001, 5.75%, due 7/1/16 A3 A- 2,182
1,675 New York St. Dorm. Au. Rev. (Long Island Univ.), Ser. 2003 A,
5.25%, due 9/1/15 AA 1,846
2,500 New York St. Dorm. Au. Rev. (Mount Sinai NYU Hlth. Oblig.
Group), Ser. 2000 B, 6.25%, due 7/1/22 Baa3 2,513
5,500 New York St. Dorm. Au. Rev. (Personal Income Tax Bonds),
Ser. 2003 A, 5.38%, due 3/15/17 AA 6,116
2,855 New York St. Dorm. Au. Rev. (Rivington House Hlth. Care Fac.),
Ser. 2002, 5.25%, due 11/1/15 Aa1 3,105
3,000 New York St. Dorm. Au. Rev. (SS Joachim & Anne Residence),
Ser. 2002, 4.60%, due 7/1/16 Aa3 3,067
2,000 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- 2,216
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+ 5,033++
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)
$2,000 New York St. Mtge. Agcy. Homeowner Mtge. Rev., Ser. 1997-67,
5.70%, due 10/1/17 Aa1 $ 2,160
1,250 New York St. Mtge. Agcy. Homeowner Mtge. Rev., Ser. 2002-105,
4.25%, due 10/1/17 Aa1 1,255
2,000 New York St. Pwr. Au. Rev., Ser. 2002 A, 5.25%, due 11/15/16 Aa2 AA- 2,210
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- 1,543
500 New York St. Urban Dev. Corp. Rev. (Correctional & Youth
Fac. Svc.), Ser. 2002 C, 4.00%, due 1/1/20 AA- 504
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 2,647++
2,000 Niagara Co. (NY) Ind. Dev. Agcy. Civic Fac. Rev. (Niagara
Univ. Proj.), Ser. 2001 A, 5.50%, due 11/1/16 AA 2,197
1,000 North Carolina Muni. Pwr. Agcy. Number 1 Catawba Elec. Rev.,
Ser. 2003 A, 5.50%, due 1/1/14 Baa1 BBB+ 1,098
1,000 Puerto Rico Children's Trust Tobacco Settlement Asset-Backed
Rev., Ser. 2002, 5.38%, due 5/15/33 A1 A 832
1,000 Santa Rosa (CA) Rancheria Tachi Yokut Tribe Enterprise Rev.,
Ser. 2003, 6.13%, due 3/1/13 BBB 1,001
3,000 Triborough Bridge & Tunnel Au. (NY) Gen. Purp. Ref. Rev.,
Ser. 2002 B, 5.25%, due 11/15/18 Aa3 AA- 3,268
1,100 Triborough Bridge & Tunnel Au. (NY) Gen. Purp. Rev., Ser. 2001 A,
5.00%, due 1/1/19 Aa3 AA- 1,159
2,390 TSASC, Inc. (NY) Tobacco Flexible Amortization Rev.,
Ser. 1999-1, 5.70%, due 7/15/14 A1 A 2,294
500 Verrado (AZ) Comm. Fac. Dist. Number 1 G.O., Ser. 2003,
6.15%, due 7/15/17 502
750 Virgin Islands Pub. Fin. Au. Rev., Ser. 1998 E, 6.00%,
due 10/1/22 765
1,000 Yonkers (NY) Ind. Dev. Agcy. Civic Fac. Rev. (Comm. Dev.
Properties-Yonkers, Inc.), Ser. 2001 A, 6.25%, due 2/1/16 Baa3 BBB- 1,079++
--------
98,028
--------
TAX-EXEMPT CASH EQUIVALENT SECURITIES-BACKED BY LETTERS OF CREDIT (0.1%)
DEXIA CREDIT LOCALE DE FRANCE
100 New York City (NY) Muni. Wtr. Fin. Au. Wtr. & Swr. Sys.
Rev., Ser. 2000 C, 1.26%, VRDN due 6/15/33 VMIG1 A-1+ 100
--------
TOTAL INVESTMENTS (157.9%) (COST $125,283) 127,338##
Cash, receivables and other assets, less liabilities (1.9%) 1,559
Auction Market Preferred Shares at redemption value [(59.8%)] (48,250)
--------
TOTAL NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS (100.0%) $ 80,647
--------
20
NEUBERGER BERMAN APRIL 30, 2003 (UNAUDITED)
NOTES TO SCHEDULE OF INVESTMENTS
+ Investment securities of the 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 directors of
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"), believe accurately
reflects fair value. 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, 2003, selected Fund information on a U.S. Federal income tax
basis was as follows:
GROSS GROSS
(000's OMITTED) UNREALIZED UNREALIZED NET UNREALIZED
NEUBERGER BERMAN COST APPRECIATION DEPRECIATION APPRECIATION
CALIFORNIA INTERMEDIATE MUNICIPAL FUND INC. $153,158 $ 3,728 $ 772 $2,956
INTERMEDIATE MUNICIPAL FUND INC. 469,725 11,304 2,142 9,162
NEW YORK INTERMEDIATE MUNICIPAL FUND INC. 125,283 2,709 654 2,055
@ 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 64%, 57%, and 35% 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 obligor.
* Security purchased on a when-issued basis. At April 30, 2003, these
securities amounted to $1,121,000 for Intermediate.
** Security is segregated as collateral for when-issued purchase commitments.
See Notes to Financial Statements 21
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 $156,114 $478,887 $127,338
--------------------------------------------------------------------------------------------------------------------------------
Cash 9 205 13
--------------------------------------------------------------------------------------------------------------------------------
Interest receivable 2,551 8,263 2,082
--------------------------------------------------------------------------------------------------------------------------------
Receivable for securities sold - 1,188 -
--------------------------------------------------------------------------------------------------------------------------------
Prepaid expenses and other assets 101 290 87
================================================================================================================================
TOTAL ASSETS 158,775 488,833 129,520
================================================================================================================================
LIABILITIES
Dividends payable-preferred shares 35 108 23
--------------------------------------------------------------------------------------------------------------------------------
Dividends payable-common shares 424 1,370 362
--------------------------------------------------------------------------------------------------------------------------------
Payable for securities purchased - 5,185 -
--------------------------------------------------------------------------------------------------------------------------------
Payable for offering costs (Note A) 123 94 134
--------------------------------------------------------------------------------------------------------------------------------
Payable to administrator (Note B) 37 114 30
--------------------------------------------------------------------------------------------------------------------------------
Accrued expenses and other payables 69 82 74
================================================================================================================================
TOTAL LIABILITIES 688 6,953 623
================================================================================================================================
AUCTION MARKET PREFERRED SHARES SERIES A & B AT REDEMPTION 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 $ 99,087 $302,480 $ 80,647
================================================================================================================================
NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS CONSIST OF:
Common stock paid-in capital $ 96,256 $293,646 $ 78,924
--------------------------------------------------------------------------------------------------------------------------------
Undistributed (dividends in excess of) net investment income (49) (109) (58)
--------------------------------------------------------------------------------------------------------------------------------
Accumulated net realized gains (losses) on investments (76) (219) (274)
--------------------------------------------------------------------------------------------------------------------------------
Net unrealized appreciation (depreciation) in value of investments 2,956 9,162 2,055
================================================================================================================================
NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS AT VALUE $ 99,087 $302,480 $ 80,647
================================================================================================================================
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 20,691 5,572
--------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE PER COMMON SHARE OUTSTANDING $ 14.59 $ 14.62 $ 14.47
================================================================================================================================
*COST OF INVESTMENTS $153,158 $469,725 $125,283
================================================================================================================================
See Notes to Financial Statements 22
NEUBERGER BERMAN FOR THE SIX MONTHS ENDED APRIL 30, 2003 (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
Interest income $3,036 $9,445 $2,565
===============================================================================================================================
EXPENSES:
Investment management fee (Note B) 177 538 144
-------------------------------------------------------------------------------------------------------------------------------
Administration fee (Note B) 212 646 173
-------------------------------------------------------------------------------------------------------------------------------
Stock transfer agent fees 17 19 17
-------------------------------------------------------------------------------------------------------------------------------
Auction agent fees 50 149 42
-------------------------------------------------------------------------------------------------------------------------------
Auditing fees 20 20 20
-------------------------------------------------------------------------------------------------------------------------------
Basic maintenance expense 10 10 10
-------------------------------------------------------------------------------------------------------------------------------
Custodian fees (Note B) 33 62 29
-------------------------------------------------------------------------------------------------------------------------------
Legal fees 14 14 14
-------------------------------------------------------------------------------------------------------------------------------
Shareholder reports 2 26 1
-------------------------------------------------------------------------------------------------------------------------------
Stock exchange listing fees 3 10 3
-------------------------------------------------------------------------------------------------------------------------------
Directors' fees and expenses 17 17 17
-------------------------------------------------------------------------------------------------------------------------------
Miscellaneous 16 32 15
===============================================================================================================================
Total expenses 571 1,543 485
Investment management fee waived and expenses reduced by
custodian fee expense offset arrangement (Note B) (177) (539) (145)
===============================================================================================================================
Total net expenses 394 1,004 340
===============================================================================================================================
Net investment income 2,642 8,441 2,225
===============================================================================================================================
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
Net realized gain (loss) on investment securities sold (76) (219) (274)
-------------------------------------------------------------------------------------------------------------------------------
Change in net unrealized appreciation (depreciation) in value of:
-------------------------------------------------------------------------------------------------------------------------------
Investment securities (Note A) 2,959 9,438 2,014
===============================================================================================================================
Net gain (loss) on investments 2,883 9,219 1,740
-------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO PREFERRED SHAREHOLDERS FROM:
Net investment income (241) (771) (197)
===============================================================================================================================
NET INCREASE (DECREASE) IN NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS
RESULTING FROM OPERATIONS $5,284 $16,889 $3,768
===============================================================================================================================
See Notes to Financial Statements 23
STATEMENTS OF CHANGES IN NET ASSETS
-----------------------------------
CALIFORNIA INTERMEDIATE MUNICIPAL FUND
--------------------------------------
NEUBERGER BERMAN INTERMEDIATE MUNICIPAL CLOSED-END FUNDS PERIOD FROM
SIX MONTHS SEPTEMBER 27, 2002
ENDED (COMMENCEMENT
APRIL 30, OF OPERATIONS) TO
2003 OCTOBER 31,
(000's OMITTED) (UNAUDITED) 2002
INCREASE (DECREASE) IN NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS:
FROM OPERATIONS:
Net investment income (loss) $ 2,642 $ 97
-------------------------------------------------------------------------------------------------------------
Net realized gain (loss) on investments (76) --
-------------------------------------------------------------------------------------------------------------
Change in net unrealized appreciation (depreciation) of investments 2,959 (3)
-------------------------------------------------------------------------------------------------------------
Distributions to preferred shareholders from:
-------------------------------------------------------------------------------------------------------------
Net investment income (241) --
=============================================================================================================
Net increase (decrease) in net assets applicable to common shareholders
resulting from operations 5,284 94
=============================================================================================================
DISTRIBUTIONS TO COMMON SHAREHOLDERS FROM:
Net investment income (2,547) --
=============================================================================================================
FROM CAPITAL SHARE TRANSACTIONS:
Net proceeds from issuance of common shares -- 90,158
-------------------------------------------------------------------------------------------------------------
Net proceeds from underwriters' over-allotment option exercised 2,644 4,289
-------------------------------------------------------------------------------------------------------------
Proceeds from reinvestment of dividends -- --
-------------------------------------------------------------------------------------------------------------
Payments for preferred shares offering costs (835) --
=============================================================================================================
Total net proceeds from capital share transactions 1,809 94,447
=============================================================================================================
NET INCREASE (DECREASE) IN NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS 4,546 94,541
NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS:
Beginning of period 94,541 --
=============================================================================================================
End of period $99,087 $94,541
=============================================================================================================
Accumulated undistributed net investment income at end of period $ (49) $ 97
=============================================================================================================
See Notes to Financial Statements 24
NEUBERGER BERMAN APRIL 30, 2003 (UNAUDITED)
INTERMEDIATE MUNICIPAL FUND
--------------------------------------
NEUBERGER BERMAN INTERMEDIATE MUNICIPAL CLOSED-END FUNDS PERIOD FROM
SIX MONTHS SEPTEMBER 27, 2002
ENDED (COMMENCEMENT
APRIL 30, OF OPERATIONS) TO
2003 OCTOBER 31,
(000's OMITTED) (UNAUDITED) 2002
INCREASE (DECREASE) IN NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS:
FROM OPERATIONS:
Net investment income (loss) $ 8,441 $ 442
-------------------------------------------------------------------------------------------------------------
Net realized gain (loss) on investments (219) --
-------------------------------------------------------------------------------------------------------------
Change in net unrealized appreciation (depreciation) of investments 9,438 (276)
-------------------------------------------------------------------------------------------------------------
Distributions to preferred shareholders from:
Net investment income (771) --
=============================================================================================================
Net increase (decrease) in net assets applicable to common shareholders
resulting from operations 16,889 166
=============================================================================================================
DISTRIBUTIONS TO COMMON SHAREHOLDERS FROM:
Net investment income (8,221) --
=============================================================================================================
FROM CAPITAL SHARE TRANSACTIONS:
Net proceeds from issuance of common shares -- 278,852
-------------------------------------------------------------------------------------------------------------
Net proceeds from underwriters' over-allotment option exercised 2,502 14,295
-------------------------------------------------------------------------------------------------------------
Proceeds from reinvestment of dividends 136 --
-------------------------------------------------------------------------------------------------------------
Payments for preferred shares offering costs (2,139) --
=============================================================================================================
Total net proceeds from capital share transactions 499 293,147
=============================================================================================================
NET INCREASE (DECREASE) IN NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS 9,167 293,313
NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS:
Beginning of period 293,313 --
=============================================================================================================
End of period $302,480 $293,313
=============================================================================================================
Accumulated undistributed net investment income at end of period $ (109) $ 442
=============================================================================================================
NEW YORK INTERMEDIATE MUNICIPAL FUND
--------------------------------------
NEUBERGER BERMAN INTERMEDIATE MUNICIPAL CLOSED-END FUNDS PERIOD FROM
SIX MONTHS SEPTEMBER 27, 2002
ENDED (COMMENCEMENT
APRIL 30, OF OPERATIONS) TO
2003 OCTOBER 31,
(000's OMITTED) (UNAUDITED) 2002
INCREASE (DECREASE) IN NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS:
FROM OPERATIONS:
Net investment income (loss) $ 2,225 $ 87
-------------------------------------------------------------------------------------------------------------
Net realized gain (loss) on investments (274) --
-------------------------------------------------------------------------------------------------------------
Change in net unrealized appreciation (depreciation) of investments 2,014 41
-------------------------------------------------------------------------------------------------------------
Distributions to preferred shareholders from:
Net investment income (197) --
=============================================================================================================
Net increase (decrease) in net assets applicable to common shareholders
resulting from operations 3,768 128
=============================================================================================================
DISTRIBUTIONS TO COMMON SHAREHOLDERS FROM:
Net investment income (2,173) --
=============================================================================================================
FROM CAPITAL SHARE TRANSACTIONS:
Net proceeds from issuance of common shares -- 73,719
-------------------------------------------------------------------------------------------------------------
Net proceeds from underwriters' over-allotment option exercised 3,073 2,859
-------------------------------------------------------------------------------------------------------------
Proceeds from reinvestment of dividends -- --
-------------------------------------------------------------------------------------------------------------
Payments for preferred shares offering costs (727) --
=============================================================================================================
Total net proceeds from capital share transactions 2,346 76,578
=============================================================================================================
NET INCREASE (DECREASE) IN NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS 3,941 76,706
NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS:
Beginning of period 76,706 --
=============================================================================================================
End of period $80,647 $76,706
=============================================================================================================
Accumulated undistributed net investment income at end of period $ (58) $ 87
=============================================================================================================
25
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 (the "1940 Act"). Each Fund had no operations until
September 27, 2002, other than matters relating to their organization and
the sale on September 19, 2002 of 6,981 shares of common stock for
$100,005 ($14.325 per share) from each Fund to Neuberger Berman, LLC
("Neuberger"), the Funds' sub-adviser. The Board of Directors of the
Funds 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 assets of each Fund belong only to that Fund, and the liabilities of
each Fund are borne solely by that Fund and no other.
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.
4 FEDERAL INCOME TAXES: The Funds are treated as separate entities for U.S.
Federal income tax purposes. 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
26
NEUBERGER BERMAN APRIL 30, 2003 (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-6.
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, 2003, the Board of each Fund declared dividends
to common shareholders from their net investment income payable June 16,
2003, to shareholders of record on May 27, 2003, with an ex-dividend date
of May 22, 2003, as follows:
DIVIDEND PER SHARE
CALIFORNIA $0.06250
INTERMEDIATE 0.06625
NEW YORK 0.06500
6 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:
FUND 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:
FUND 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.
Dividend rates are reset every 7 days for each Fund's AMPS Series A,
based on the results of an auction. For the period from December 13, 2002
to April 30, 2003, dividend rates ranged as follows:
FUND DIVIDEND RATES
CALIFORNIA 0.85% - 1.25%
INTERMEDIATE 1.02% - 1.25%
NEW YORK 0.90% - 1.25%
27
NOTES TO FINANCIAL STATEMENTS INTERMEDIATE MUNICIPAL CLOSED-END FUNDS CONT'D
----------------------------------------------------------------------------
Upon issuance, dividend rates were reset every 28 days for each Fund's
AMPS Series B, based on the results of an auction. Each Fund's AMPS
Series B subsequently changed its rate period to 364 days. The effective
dates and dividend rates for each Fund are as follows:
FUND EFFECTIVE DATE DIVIDEND RATE
CALIFORNIA March 12, 2003 1.15%
INTERMEDIATE March 14, 2003 1.20%
NEW YORK March 10, 2003 1.125%
The Funds declared dividends to AMPS shareholders for the period May 1,
2003 to May 31, 2003, for each series of the AMPS as follows:
FUND SERIES A SHARES SERIES B SHARES
CALIFORNIA $28,001 $29,218
INTERMEDIATE 92,632 92,702
NEW YORK 24,896 23,371
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 AMPS, voting as a
separate class, are entitled at all times to elect two Directors of each
Fund, and to elect a majority of the Directors of a Fund if the Fund
failed to pay dividends on preferred shares for two consecutive years.
7 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.
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 offering and amounted to $203,759, $620,459, and $167,159 for
California, Intermediate, and New York, respectively.
Additionally, estimated offering costs of $245,000, $345,000, and
$245,000 and sales loads of $590,000, $1,794,000, and $482,500 for AMPS
paid by California, Intermediate, and New York, respectively, were
charged as a reduction of common stock paid-in-capital at the completion
of each Fund's AMPS offering.
8 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 California state and New
York state municipal bonds, respectively. This policy makes those funds
28
NEUBERGER BERMAN APRIL 30, 2003 (UNAUDITED)
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 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
-----------------------------------------------------------------
2002 - 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, 2003, such waived fees amounted to
$176,588, $538,442, and $144,304 for California, Intermediate, and New
York, respectively.
Each Fund retains Management as its administrator under an Administration
Agreement ("Agreement"). Pursuant to this Agreement each Fund pays
Management an administration fee at the annual rate of 0.30% of its
average daily Managed Assets.
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.
Management and Neuberger, a member firm of The New York Stock Exchange
and sub-adviser to each Fund, are wholly owned subsidiaries of Neuberger
Berman Inc., a publicly held company. 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 $737, $620, and $697 for California, Intermediate, and New
York, respectively.
29
NOTES TO FINANCIAL STATEMENTS INTERMEDIATE MUNICIPAL CLOSED-END FUNDS
---------------------------------------------------------------------
NOTE C--SECURITIES TRANSACTIONS:
During the six months ended April 30, 2003, there were purchase and sale
transactions (excluding short-term securities) as follows:
(000's OMITTED) PURCHASES SALES
CALIFORNIA $112,383 $11,864
INTERMEDIATE 287,667 28,760
NEW YORK 73,636 8,000
NOTE D--CAPITAL:
At April 30, 2003, 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 20,691,380 6,981
NEW YORK 5,571,981 6,981
Transactions in common shares of capital stock for the periods ended
April 30, 2003 and October 31, 2002, were as follows:
COMMON SHARES ISSUED IN CONNECTION WITH:
UNDERWRITERS' EXERCISE REINVESTMENT OF
OF OVER-ALLOTMENT DIVIDENDS AND NET INCREASE IN COMMON
INITIAL PUBLIC OFFERING OPTION DISTRIBUTIONS SHARES OUTSTANDING
2003 2002 2003 2002 2003 2002 2003 2002
CALIFORNIA - 6,306,981 185,000 300,000 - - 185,000 6,606,981
INTERMEDIATE - 19,506,981 175,000 1,000,000 9,399 - 184,399 20,506,981
NEW YORK - 5,156,981 215,000 200,000 - - 215,000 5,356,981
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.
30
NEUBERGER BERMAN APRIL 30, 2003 (UNAUDITED)
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 SEPTEMBER 27, 2002^
APRIL 30, TO OCTOBER 31,
---------------- -------------------
2003 2002
COMMON SHARE NET ASSET VALUE, BEGINNING OF PERIOD $ 14.31 $14.32
------- ------
INCOME FROM INVESTMENT OPERATIONS APPLICABLE TO COMMON SHAREHOLDERS:
NET INVESTMENT INCOME (LOSS) .39 .02
NET GAINS OR LOSSES ON SECURITIES (BOTH REALIZED AND UNREALIZED) .43 --
COMMON SHARE EQUIVALENT OF DISTRIBUTIONS TO PREFERRED SHAREHOLDERS
FROM NET INVESTMENT INCOME (.04) --
------- ------
TOTAL FROM INVESTMENT OPERATIONS APPLICABLE TO COMMON SHAREHOLDERS .78 .02
------- ------
LESS DISTRIBUTIONS TO COMMON SHAREHOLDERS:
FROM NET INVESTMENT INCOME (.38) --
------- ------
LESS CAPITAL CHARGES:
ISSUANCE OF COMMON SHARES (.00) (.03)
ISSUANCE OF PREFERRED SHARES (.12) --
------- ------
TOTAL CAPITAL CHARGES (.12) (.03)
------- ------
COMMON SHARE NET ASSET VALUE, END OF PERIOD $ 14.59 $14.31
------- ------
COMMON SHARE MARKET VALUE, END OF PERIOD $ 13.61 $15.00
------- ------
TOTAL RETURN, COMMON SHARE NET ASSET VALUE+ +4.80%** -0.10%**
TOTAL RETURN, COMMON SHARE MARKET VALUE+ -6.74%** +0.00%**
RATIOS/SUPPLEMENTAL DATA++
NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS, END OF PERIOD (IN MILLIONS) $ 99.1 $ 94.5
PREFERRED STOCK, AT REDEMPTION VALUE ($25,000
PER SHARE LIQUIDATION PREFERENCE) (IN MILLIONS) $ 59.0 $ --
RATIO OF GROSS EXPENSES TO AVERAGE NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS# .82%* .84%*
RATIO OF NET EXPENSES TO AVERAGE NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS++ .82%* .83%*
RATIO OF NET INVESTMENT INCOME (LOSS) EXCLUDING PREFERRED STOCK DIVIDENDS TO AVERAGE
NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS 5.48%* 1.10%*
RATIO OF PREFERRED STOCK DIVIDENDS TO AVERAGE
NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS .50%* --%
RATIO OF NET INVESTMENT INCOME (LOSS) INCLUDING PREFERRED STOCK DIVIDENDS TO AVERAGE
NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS 4.98%* 1.10%*
PORTFOLIO TURNOVER RATE 9% 0%
ASSET COVERAGE PER SHARE OF PREFERRED STOCK, END OF PERIOD@ $67,001 $ --
See Notes to Financial Highlights 31
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 SEPTEMBER 27, 2002^
APRIL 30, TO OCTOBER 31,
---------------- -------------------
2003 2002
COMMON SHARE NET ASSET VALUE, BEGINNING OF PERIOD $ 14.30 $14.32
------- ------
INCOME FROM INVESTMENT OPERATIONS APPLICABLE TO COMMON SHAREHOLDERS:
NET INVESTMENT INCOME (LOSS) .41 .01
NET GAINS OR LOSSES ON SECURITIES (BOTH REALIZED AND UNREALIZED) .45 --
COMMON SHARE EQUIVALENT OF DISTRIBUTIONS TO PREFERRED SHAREHOLDERS
FROM NET INVESTMENT INCOME (.04) --
------- ------
TOTAL FROM INVESTMENT OPERATIONS APPLICABLE TO COMMON SHAREHOLDERS .82 .01
------- ------
LESS DISTRIBUTIONS TO COMMON SHAREHOLDERS:
FROM NET INVESTMENT INCOME (.40) --
------- ------
LESS CAPITAL CHARGES:
ISSUANCE OF COMMON SHARES (.00) (.03)
ISSUANCE OF PREFERRED SHARES (.10) --
------- ------
TOTAL CAPITAL CHARGES (.10) (.03)
------- ------
COMMON SHARE NET ASSET VALUE, END OF PERIOD $ 14.62 $14.30
------- ------
COMMON SHARE MARKET VALUE, END OF PERIOD $ 14.12 $15.00
------- ------
TOTAL RETURN, COMMON SHARE NET ASSET VALUE+ +5.20%** -0.17%**
TOTAL RETURN, COMMON SHARE MARKET VALUE+ -3.14%** +0.00%**
RATIOS/SUPPLEMENTAL DATA++
NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS, END OF PERIOD (IN MILLIONS) $ 302.5 $293.3
PREFERRED STOCK, AT REDEMPTION VALUE ($25,000
PER SHARE LIQUIDATION PREFERENCE) (IN MILLIONS) $ 179.4 $ --
RATIO OF GROSS EXPENSES TO AVERAGE NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS# .68%* .51%*
RATIO OF NET EXPENSES TO AVERAGE NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS++ .68%* .51%*
RATIO OF NET INVESTMENT INCOME (LOSS) EXCLUDING PREFERRED STOCK DIVIDENDS TO AVERAGE
NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS 5.74%* 1.62%*
RATIO OF PREFERRED STOCK DIVIDENDS TO AVERAGE
NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS .52%* --%
RATIO OF NET INVESTMENT INCOME (LOSS) TO AVERAGE
NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS 5.22%* 1.62%*
PORTFOLIO TURNOVER RATE 7% 0%
ASSET COVERAGE PER SHARE OF PREFERRED STOCK, END OF PERIOD@ $67,167 $ --
See Notes to Financial Highlights 32
NEUBERGER BERMAN APRIL 30, 2003 (UNAUDITED)
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 SEPTEMBER 27, 2002^
APRIL 30, TO OCTOBER 31,
---------------- -------------------
2003 2002
COMMON SHARE NET ASSET VALUE, BEGINNING OF PERIOD $ 14.32 $14.32
------- ------
INCOME FROM INVESTMENT OPERATIONS APPLICABLE TO COMMON SHAREHOLDERS:
NET INVESTMENT INCOME (LOSS) .40 .03
NET GAINS OR LOSSES ON SECURITIES (BOTH REALIZED AND UNREALIZED) .31 --
COMMON SHARE EQUIVALENT OF DISTRIBUTIONS TO PREFERRED SHAREHOLDERS
FROM NET INVESTMENT INCOME (.04) --
------- ------
TOTAL FROM INVESTMENT OPERATIONS APPLICABLE TO COMMON SHAREHOLDERS .67 .03
------- ------
LESS DISTRIBUTIONS TO COMMON SHAREHOLDERS:
FROM NET INVESTMENT INCOME (.39) --
------- ------
LESS CAPITAL CHARGES:
ISSUANCE OF COMMON SHARES (.00) (.03)
ISSUANCE OF PREFERRED SHARES (.13) --
------- ------
TOTAL CAPITAL CHARGES (.13) (.03)
------- ------
COMMON SHARE NET ASSET VALUE, END OF PERIOD $ 14.47 $14.32
------- ------
COMMON SHARE MARKET VALUE, END OF PERIOD $ 14.05 $15.00
------- ------
TOTAL RETURN, COMMON SHARE NET ASSET VALUE+ +3.94%** -0.03%**
TOTAL RETURN, COMMON SHARE MARKET VALUE+ -3.66%** +0.00%**
RATIOS/SUPPLEMENTAL DATA++
NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS, END OF PERIOD (IN MILLIONS) $ 80.6 $ 76.7
PREFERRED STOCK, AT REDEMPTION VALUE ($25,000
PER SHARE LIQUIDATION PREFERENCE) (IN MILLIONS) $ 48.3 $ --
RATIO OF GROSS EXPENSES TO AVERAGE NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS# .87%* .94%*
RATIO OF NET EXPENSES TO AVERAGE NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS++ .86%* .93%*
RATIO OF NET INVESTMENT INCOME (LOSS) EXCLUDING PREFERRED STOCK DIVIDENDS TO AVERAGE
NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS 5.65%* 1.22%*
RATIO OF PREFERRED STOCK DIVIDENDS TO AVERAGE
NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS .50%* --%
RATIO OF NET INVESTMENT INCOME (LOSS) INCLUDING PREFERRED STOCK DIVIDENDS TO AVERAGE
NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS 5.15%* 1.22%*
PORTFOLIO TURNOVER RATE 7% 0%
ASSET COVERAGE PER SHARE OF PREFERRED STOCK, END OF PERIOD@ $66,798 $ --
See Notes to Financial Highlights 33
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. For each Fund, total
return would have been lower if Management had not waived the investment
management fee.
# 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 PERIOD ENDED
APRIL 30, OCTOBER 31,
2003 2002
CALIFORNIA INTERMEDIATE MUNICIPAL FUND INC. 1.19% 1.08%(1)
INTERMEDIATE MUNICIPAL FUND INC. 1.05% .76%(1)
NEW YORK INTERMEDIATE MUNICIPAL FUND INC. 1.23% 1.18%(1)
(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 preferred shares outstanding.
++ Expense ratios do not include the effect of dividend payments to AMPS.
Income ratios include income earned on assets attributable to AMPS.
34
NEUBERGER BERMAN APRIL 30, 2003 (UNAUDITED)
DIVIDEND REINVESTMENT PLAN
--------------------------
The Fund's Board has established a Dividend Reinvestment Plan (the "Plan")
pursuant to which all holders of common stock ("Common Stockholders") whose
shares are registered in their own names will have all dividends and any capital
gain distributions (referred to collectively in this section as "dividends") on
their shares automatically reinvested in additional shares of common stock
("Common Shares") by The Bank of New York, as agent for the Common Stockholders
("Plan Agent"), unless such Common Stockholders elect to receive cash. An
election to receive cash may be revoked or reinstated at a Common Stockholder's
option. In the case of record Common Stockholders such as banks, brokers or
other nominees that hold shares of common stock for others who are the
beneficial owners, the Plan Agent will administer the Plan on the basis of the
number of shares certified from time to time by the record Common Stockholder as
representing the total amount registered in such Common Stockholder's name and
held for the account of beneficial owners who participate in the Plan. Common
Stockholders whose shares are held in the name of a bank, broker or other
nominee should contact the nominee for details. Such stockholders may not be
able to transfer their shares to another nominee and continue to participate in
the Plan. All dividends to investors who elect not to participate in the Plan
(or whose bank, broker or other nominee elects not to participate on the
investor's behalf), will be paid in cash by check mailed, in the case of direct
Common Stockholders, to the record holder by The Bank of New York, as the Fund's
dividend disbursement agent.
Unless you (or your bank, broker or other nominee) elect not to participate in
the Plan, the number of Common Shares you will receive as a result of a Fund
dividend will be determined as follows:
(1) If Common Shares are trading at or above their net asset value (minus
estimated brokerage commissions that would be incurred upon the
purchase of Common Shares on the open market) on the payment date, the
Fund will issue new Common Shares at the greater of (i) the net asset
value per Common Share on the payment date or (ii) 95% of the market
price per Common Share on the payment date. Because Common Shares may
be issued at less than their market price, Plan participants may get a
benefit that non-participants do not.
(2) If Common Shares are trading below their net asset value (minus
estimated brokerage commissions that would be incurred upon the
purchase of Common Shares on the open market) on the payment date, the
Plan Agent will receive the dividend in cash and will purchase Common
Shares in the open market, on the American Stock Exchange or
elsewhere, for the participants' accounts. It is possible that the
market price for the Common Shares may increase before the Plan Agent
has completed its purchases. Therefore, the average purchase price per
Common Share paid by the Plan Agent may exceed the market price
thereof on the payment date, resulting in the purchase of fewer Common
Shares than if the dividend had been paid in Common Shares issued by
the Fund. The Plan Agent will use all dividends received in cash to
purchase Common Shares in the open market on or shortly after the
payment date, but in no event later than the ex-dividend date for the
next dividend. Interest will not be paid on any uninvested cash
payments.
If you own Common Shares directly, you may withdraw from the Plan at any time by
giving written notice to the Plan Agent; please be sure to include your name and
account number. You may also rejoin the Plan later. Contact the Plan Agent at
the following address for information on how to do so: The Bank of New York,
ATTN: Stock Transfer Administration, 101 Barclay Street, 11-E, New York, New
York 10286. If you wish, the Plan Agent will sell the Common Shares and send you
the proceeds, minus brokerage commissions.
The Plan Agent maintains all stockholders' accounts in the Plan and gives
written confirmation of all transactions in the accounts, including information
stockholders may need for tax records. The Plan Agent will also furnish each
Common Stockholder with written instructions detailing the procedures for
electing not to participate in the Plan and to instead receive dividends in
cash. Common Shares in your account will be held by the Plan Agent in
non-certificated form. Any proxy you receive will include all Common Shares held
for you under the Plan.
35
DIVIDEND REINVESTMENT PLAN CONT'D
---------------------------------
There is no brokerage charge for reinvestment of your dividends in Common
Shares. However, all participants will pay a pro rata share of brokerage
commissions incurred by the Plan Agent when it makes open market purchases.
Automatically reinvested dividends are taxed in the same manner as cash
dividends.
The Fund and the Plan Agent reserve the right to amend or terminate the Plan.
There is no direct service charge to participants in the Plan; however, the Fund
reserves the right to amend the Plan to include a service charge payable by the
participants. Additional information about the Plan may be obtained from your
broker or by calling The Bank of New York at 1-800-524-4458.
Notice is hereby given in accordance with Section 23(c) of the Investment
Company Act of 1940 that from time to time the Fund may purchase shares of its
common stock in the open market at market prices.
36
NEUBERGER BERMAN APRIL 30, 2003 (UNAUDITED)
DIRECTORY
---------
INVESTMENT MANAGER AND ADMINISTRATOR
Neuberger Berman Management Inc.
605 Third Avenue 2nd Floor
New York, NY 10158-0180
800.877.9700 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 20036-1800
37
DIRECTORS AND OFFICERS (UNAUDITED)
----------------------------------
The following tables set forth information concerning the directors and officers
of the Funds. 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 (67) Counsel, Carter Ledyard & Milburn LLP (law firm) 35 Director, American Bar Retirement
Director since October 2002; Formerly, Attorney at Law Association (ABRA) since 1997
and President, Faith Colish, A Professional (not-for-profit membership
Corporation, 1980 to 2002. association).
------------------------------------------------------------------------------------------------------------------------------------
C. Anne Harvey (65) Consultant, C. A. Harvey Associates, since June 35 Member, Individual Investors
Director 2001; Director, AARP, 1978 to December 2000. Advisory Committee to the 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 (71) Founding General Partner, Oxford Partners and 35 Director, Capital Cash Management
Director Oxford Bioscience Partners (venture capital Trust (money market fund),
partnerships) and President, Oxford Venture Naragansett Insured Tax-Free
Corporation. Income Fund, Rocky Mountain
Equity Fund, Prime Cash Fund,
several private companies and
QuadraMed Corporation (NASDAQ).
------------------------------------------------------------------------------------------------------------------------------------
38
NEUBERGER BERMAN APRIL 30, 2003 (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
------------------------------------------------------------------------------------------------------------------------------------
Peter P. Trapp (58) Regional Manager for Atlanta Region, Ford Motor 35
Director Credit Company since August 1997; prior thereto,
President, Ford Life Insurance Company, April
1995 until August 1997.
------------------------------------------------------------------------------------------------------------------------------------
DIRECTOR WHO IS AN
"INTERESTED PERSON"
------------------------------------------------------------------------------------------------------------------------------------
Peter E. Sundman* (44) Executive Vice President, Neuberger Berman since 35 Executive Vice President,
Chief Executive 1999; Principal, Neuberger Berman from 1997 Neuberger Berman Inc. (holding
Officer, Director and until 1999; Senior Vice President, NB Management company) since 1999; Director,
Chairman of the Board from 1996 until 1999. Neuberger Berman Inc. from 1999
through March 2003; President and
Director, NB Management since
1999; Director and Vice
President, Neuberger & Berman
Agency, Inc. since 2000.
------------------------------------------------------------------------------------------------------------------------------------
CLASS II
------------------------------------------------------------------------------------------------------------------------------------
INDEPENDENT FUND DIRECTORS*
------------------------------------------------------------------------------------------------------------------------------------
John Cannon (73) Consultant. Formerly, Chairman and Chief 35 Independent Trustee or Director
Director Investment Officer, CDC Capital Management of three series of
(registered investment adviser), 1993-January OppenheimerFunds: Limited Term
1999; prior thereto, President and Chief New York Municipal Fund,
Executive Officer, AMA Investment Advisors, an Rochester Fund Municipals, and
affiliate of the American Medical Association. Oppenheimer Convertible
Securities Fund, since 1992.
------------------------------------------------------------------------------------------------------------------------------------
Barry Hirsch (70) Attorney at Law. Senior Counsel, Loews 35
Director Corporation (diversified financial corporation)
May 2002 until April 2003; prior thereto, Senior
Vice President, Secretary and General Counsel,
Loews Corporation.
------------------------------------------------------------------------------------------------------------------------------------
John P. Rosenthal (70) Senior Vice President, Burnham Securities Inc. 35 Director, 92nd Street Y (non-
Director (a registered broker-dealer) since 1991. profit) since 1967; Formerly,
Director, Cancer Treatment
Holdings, Inc.
------------------------------------------------------------------------------------------------------------------------------------
39
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
-----------------------------------------------------------------------------------------------------------------------------------
Tom Decker Seip (53) General Partner of Seip Investments LP (a 35 Director, H&R Block, Inc.
Director private investment partnership); President and (financial services company)
CEO, Westaff, Inc. (temporary staffing), May since May 2001; Director, General
2001 to January 2002; Senior Executive at the Magic (voice recognition
Charles Schwab Corporation from 1983 to 1999, software) since November 2001;
including Chief Executive Officer, Charles Director, Forward Management,
Schwab Investment Management, Inc. and Trustee, Inc. (asset management) since
Schwab Family of Funds and Schwab Investments 2001; Director, E-Finance
from 1997 to 1998 and Executive Vice President- Corporation (credit decisioning
Retail Brokerage, Charles Schwab Investment services) since 1999; Director,
Management from 1994 to 1997. Save-Daily.com (micro investing
services) since 1999; Formerly,
Director, Offroad Capital Inc.
(pre-public internet commerce
company).
------------------------------------------------------------------------------------------------------------------------------------
DIRECTOR WHO IS AN
"INTERESTED PERSON"
------------------------------------------------------------------------------------------------------------------------------------
Jack L. Rivkin* (62) Executive Vice President and Chief Investment 35 Director, Dale Carnegie and
President and Director Officer, Neuberger Berman since 2002 and 2003, Associates, Inc. (private
respectively; Director and Chairman, NB company) since 1998; Director,
Management since December 2002; Executive Vice Emagin Corp. (public company)
President, Citigroup Investments, Inc. from since 1997; Director, Solbright,
September 1995 to February 2002; Executive Vice Inc. (private company) since
President, Citigroup Inc. from September 1995 to 1998; Director, Infogate, Inc.
February 2002. (private company) since 1997.
------------------------------------------------------------------------------------------------------------------------------------
CLASS III
------------------------------------------------------------------------------------------------------------------------------------
INDEPENDENT FUND DIRECTORS*
------------------------------------------------------------------------------------------------------------------------------------
Walter G. Ehlers (70) Consultant; Retired President and Director, 35
Director Teachers Insurance & Annuity (TIAA) and College
Retirement Equities Fund (CREF).
------------------------------------------------------------------------------------------------------------------------------------
Robert A. Kavesh (75) Professor of Finance and Economics, Stern School 35 Director, Delaware Labs
Director of Business, New York University. (cosmetics) since 1978.
------------------------------------------------------------------------------------------------------------------------------------
40
NEUBERGER BERMAN APRIL 30, 2003 (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
------------------------------------------------------------------------------------------------------------------------------------
Howard A. Mileaf (66) Retired. Formerly, Vice President and Special 35 Director, WHX Corporation
Director Counsel, WHX Corporation (holding company) (holding company) since August
1993-2001. 2002; 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 (70) Retired. Senior Vice President, Foodmaker, Inc. 35 Director, Pro-Kids Golf and
Director (operator and franchiser of restaurants) until Learning Academy (teach golf and
January 1997. computer usage to "at risk"
children) since 1998; Director,
Prandium, Inc. (restaurants) from
March 2001 until July 2002.
------------------------------------------------------------------------------------------------------------------------------------
Candace L. Straight (55) Private investor and consultant specializing in 35 Director, Providence Washington
Director the insurance industry; Advisory Director, (property and casualty insurance
Securitas Capital LLC (a global private equity company) since December 1998;
investment firm dedicated to making investments Director, Summit Global Partners
in the insurance sector). (insurance brokerage firm) since
October 2000.
------------------------------------------------------------------------------------------------------------------------------------
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"
------------------------------------------------------------------------------------------------------------------------------------
Edward I. O'Brien* (74) Member, Investment Policy Committee, Edward 35 Director, Legg Mason, Inc.
Director Jones 1993-2001; President, Securities Industry (financial services holding
Association ("SIA") (securities industry's company) since 1993; Director,
representative in government relations and Boston Financial Group (real
regulatory matters at the federal and state estate and tax shelters)
levels) 1974-1992; Adviser to SIA, November 1993-1999.
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.
42
NEUBERGER BERMAN APRIL 30, 2003 (UNAUDITED)
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 (46) 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, nine registered investment companies for
which NB Management acts as investment manager and
administrator (four since 2002 and two since 2003).
Robert Conti (46) 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, nine registered investment companies for
which NB Management acts as investment manager and
administrator (three since 2000, four since 2002 and
two since 2003).
Brian J. Gaffney (49) 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, nine registered investment companies
for which NB Management acts as investment manager
and administrator (three since 2000, four since 2002
and two since 2003).
Sheila R. James (37) Assistant Secretary since 2002 Employee, Neuberger Berman since 1999; Employee, NB
Management from 1991 to 1999; Assistant Secretary,
nine registered investment companies for which NB
Management acts as investment manager and
administrator (seven since 2002 and two since 2003).
Kevin Lyons (47) Assistant Secretary since 2003 Employee, Neuberger Berman since 1999; Employee, NB
Management from 1993 to 1999; Assistant Secretary,
nine registered investment companies for which NB
Management acts as investment manager and
administrator (since 2003).
43
DIRECTORS AND OFFICERS (UNAUDITED) CONT'D
-----------------------------------------
POSITION AND
NAME, AGE, AND ADDRESS (1) LENGTH OF TIME SERVED (2) PRINCIPAL OCCUPATION(S)
------------------------------------------------------------------------------------------------------------------------------------
John M. McGovern (33) Assistant Treasurer since 2002 Employee, NB Management since 1993; Assistant
Treasurer, nine registered investment companies for
which NB Management acts as investment manager and
administrator (seven since 2002 and two since 2003).
Barbara Muinos (44) Treasurer and Principal Financial Vice President, Neuberger Berman since 1999;
and Accounting Officer since 2002 Assistant Vice President, NB Management from 1993 to
1999; Treasurer and Principal Financial and
Accounting Officer, nine registered investment
companies for which NB Management acts as investment
manager and administrator (seven since 2002 and two
since 2003); 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, nine registered investment
companies for which NB Management acts as investment
manager and administrator (three since 2000, four
since 2002 and two since 2003).
Trani Jo Wyman (33) Assistant Treasurer since 2002 Employee, NB Management since 1991; Assistant
Treasurer, nine registered investment companies for
which NB Management acts as investment manager and
administrator (seven since 2002 and two since 2003).
(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.
44
[NEUBERGER BERMAN LOGO]
NEUBERGER BERMAN MANAGEMENT INC.
605 Third Avenue 2nd Floor
New York, NY 10158-0180
INSTITUTIONAL SERVICES
800.366.6264
www.nb.com
Statistics and projections in this report are derived from sources deemed to be
reliable but cannot be regarded as a representation of future results of the
Funds. This report is prepared for the general information of shareholders and
is not an offer of shares of the Funds.
- D0123 06/03
ITEM 2. CODE OF ETHICS
Form N-CSR disclosure requirement not yet effective with respect to registrant.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT
Form N-CSR disclosure requirement not yet effective with respect to registrant.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES
Form N-CSR disclosure requirement not yet effective with respect to registrant.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS
Not applicable to the registrant.
ITEM 6. [RESERVED]
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES.
Not applicable to the registrant.
ITEM 8. [RESERVED]
ITEM 9. CONTROLS AND PROCEDURES
(a) Based on an evaluation of the disclosure controls and procedures (as
defined in rule 30a-2(c) under the Act), the Principal Executive Officer
and Treasurer of the Company have concluded that such disclosure controls
and procedures are effectively designed to ensure that information
required to be disclosed by the Company is accumulated and communicated
to the Company's management to allow timely decisions regarding required
disclosure.
(b) There were no significant changes in the registrant's internal controls
or in other factors that could significantly affect these controls
subsequent to the date of their evaluation, including any corrective
actions with regard to significant deficiencies and material weaknesses.
ITEM 10. EXHIBITS
(a) Form N-CSR disclosure requirement not yet effective with respect to
registrant.
(b) The certifications required by Rule 30a-2 of the Investment Company Act
of 1940, as amended, and Sections 302 and 906 of the Sarbanes-Oxley Act
of 2002 are attached hereto. The certification provided pursuant to
Section 906 of the Sarbanes-Oxley Act are 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 Intermediate Municipal Fund Inc.
By: /s/ Peter E. Sundman
--------------------
Peter E. Sundman
Chief Executive Officer
Date: July 7, 2003
------------
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/ Barbara Muinos
--------------------
Barbara Muinos
Treasurer
Date: July 7, 2003
------------