N-CSRS 1 formn_csr.txt As filed with the Securities and Exchange Commission on July 9, 2007 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) c/o Neuberger Berman Management Inc. 605 Third Avenue, 2nd Floor 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 c/o Neuberger Berman Management Inc. Neuberger Berman Intermediate Municipal Fund Inc. 605 Third Avenue, 2nd Floor New York, New York 10158-0180 Arthur C. Delibert, Esq. Kirkpatrick & Lockhart Preston Gates Ellis LLP 1601 K Street, N.W. Washington, D.C. 20006-1600 (Names and Addresses of agents for service) Date of fiscal year end: October 31, 2007 Date of reporting period: April 30, 2007 Form N-CSR is to be used by management investment companies to file reports with the Commission not later than 10 days after the transmission to stockholders of any report that is required to be transmitted to stockholders under Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may use the information provided on Form N-CSR in its regulatory, disclosure review, inspection, and policymaking roles. A registrant is required to disclose the information specified by Form N-CSR, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-CSR unless the Form displays a currently valid Office of Management and Budget ("OMB") control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to Secretary, Securities and Exchange Commission, 100 F Street, NE, Washington, DC 20549-0609. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. ss. 3507. ITEM 1. REPORTS TO SHAREHOLDERS SEMI-ANNUAL REPORT APRIL 30, 2007 NEUBERGER | BERMAN A LEHMAN BROTHERS COMPANY NEUBERGER BERMAN INTERMEDIATE MUNICIPAL CLOSED-END FUNDS CALIFORNIA INTERMEDIATE MUNICIPAL FUND INC. INTERMEDIATE MUNICIPAL FUND INC. NEW YORK INTERMEDIATE MUNICIPAL FUND INC. NEUBERGER BERMAN APRIL 30, 2007 (UNAUDITED) CHAIRMAN'S LETTER Dear Shareholder, I am pleased to present to you this semi-annual report for the Neuberger Berman Intermediate Municipal Closed-End Funds for the six months ended April 30, 2007. The report includes portfolio commentary, a listing of the Funds' investments, and their financial statements for the reporting period. Each Fund's investment objective is to provide a high level of current income exempt from regular federal income tax and, for each state-specific fund, a high level of current income exempt from that state's personal income taxes (and, in the case of the New York Fund, New York City personal income tax). We invest in intermediate-term municipal bonds because our experience and research indicate strongly that this maturity range has historically offered the best risk/reward profile on the yield curve, providing much of the return of longer-term bonds--with less volatility and risk. We believe that our conservative investment philosophy and disciplined investment process will benefit you with superior tax exempt current income over the long term. Thank you for your confidence in Neuberger Berman. We will continue to do our best to earn it. Sincerely, /s/ Peter Sundman PETER SUNDMAN CHAIRMAN OF THE BOARD NEUBERGER BERMAN CALIFORNIA INTERMEDIATE MUNICIPAL FUND INC. NEUBERGER BERMAN INTERMEDIATE MUNICIPAL FUND INC. NEUBERGER BERMAN NEW YORK INTERMEDIATE MUNICIPAL FUND INC. "Neuberger Berman" and the Neuberger Berman logo are service marks of Neuberger Berman, LLC. "Neuberger Berman Management Inc." and the individual fund names in this shareholder report are either service marks or registered service marks of Neuberger Berman Management Inc. (C)2007 Neuberger Berman Management Inc. All rights reserved. CONTENTS CHAIRMAN'S LETTER 1 PORTFOLIO COMMENTARIES California Intermediate Municipal Fund Inc. 2 Intermediate Municipal Fund Inc. 3 New York Intermediate Municipal Fund Inc. 3 SCHEDULE OF INVESTMENTS California Intermediate Municipal Fund Inc. 7 Intermediate Municipal Fund Inc. 12 New York Intermediate Municipal Fund Inc. 20 FINANCIAL STATEMENTS 26 FINANCIAL HIGHLIGHTS/ PER SHARE DATA California Intermediate Municipal Fund Inc. 37 Intermediate Municipal Fund Inc. 38 New York Intermediate Municipal Fund Inc. 39 DISTRIBUTION REINVESTMENT PLAN 41 DIRECTORY 43 PROXY VOTING POLICIES AND PROCEDURES 44 QUARTERLY PORTFOLIO SCHEDULE 44 CHANGE IN PORTFOLIO MANAGER 44 REPORT OF VOTES OF SHAREHOLDERS 45
1 INTERMEDIATE MUNICIPAL CLOSED-END FUNDS Portfolio Commentaries During the first two months of the six-month reporting period ended April 30, 2007, municipal bonds performed well, especially during the seasonally strong last six weeks of the calendar year when supply tends to be limited and prices generally firm. However, in the first quarter of 2007, new issuance increased significantly. Although the market absorbed the new supply in an orderly fashion, municipal securities slightly underperformed taxable counterparts from January to April. Narrow credit spreads (the yield differential between higher and lower rated bonds) narrowed even further in recent months due to strong demand for lower rated securities. Although our commitment to high credit quality restrained relative returns during this reporting period, in our opinion, today's ultra-tight credit spreads would not justify lowering the Funds' average credit rating. The municipal securities market's yield curve (consisting of yields from shorter to longer maturities) remains flat. Consequently, there is also little incentive to extend the Funds' current weighted average maturity or duration. In terms of sectors, essential service revenue bonds are by far the Funds' largest commitment and are priced attractively relative to general obligation bonds. In addition, with a slowing economy, we feel more comfortable owning essential service revenue bonds, which traditionally have been less vulnerable to economic downturns and are often structured with secure legal provisions that further protect bondholders. In general, credit quality in the municipal securities market remains good. However, there are some areas of concern, most notably municipal issuers with large underfunded pension plans and other post-employment benefit expenses. Fully funding these plans would demand politically unpopular actions such as raising taxes or cutting other types of benefits, which may contribute to delays in their resolution. Consequently, the credit quality of these issuers may continue to deteriorate. However, we believe that our commitment to thorough in-house credit analysis of all investments helps us to avoid securities that may be subject to potential credit deterioration. Going forward, we think that municipal securities will trade in a relatively narrow range until economic data provide a clearer indication of a shift in Federal Reserve monetary policy. Currently, mixed economic signals make it even more difficult for us (and we suspect the Fed as well) to determine whether further tightening or easing is the right course. On the one hand, anemic first quarter 2007 Gross Domestic Product growth, a weak housing market that may decline further due to problems for sub-prime lenders, and higher gasoline and food prices that are pinching consumers' pocketbooks, would suggest the need for monetary relief. However, U.S. inflation remains above the Fed's comfort zone and tight U.S. labor markets, rising commodities costs, increased inflationary pressure overseas and the tumbling dollar may make easing less likely. We think it may be quite a while before economic data provide a clear indication of what the Fed may do next. Until then, we will probably maintain the Funds' current weighted average maturities and durations. In closing, municipal securities continue, in our view, to be priced attractively relative to Treasury securities. With intermediate maturity municipal bond yields on average about 82% of the 10-year Treasury bond yield, municipals provide a significant yield advantage for investors in the 35% income tax bracket.* CALIFORNIA INTERMEDIATE MUNICIPAL FUND For the six-month period, on a net asset value (NAV) basis, California Intermediate Municipal Fund provided a positive return, trailing the results for the Lehman Brothers 10-Year Municipal Bond Index and the Lipper Intermediate Municipal Debt Funds Index. * The U.S. Supreme Court has announced that it will consider a case from Kentucky involving the question of whether a state can give a tax deduction to holders of its bonds without giving a similar deduction to holders of other states' bonds. Although it is far too early to predict how the court might decide this case, we will watch it carefully as it has the potential to affect single-state funds. 2 NEUBERGER BERMAN APRIL 30, 2007 (UNAUDITED) As of April 30, 2007, the portfolio included 88.4% revenue bonds, 10.3% general obligation bonds, and 1.3% short-term investments. Bonds subject to the Alternative Minimum Tax (AMT) equaled 14.8% of assets. At the close of the reporting period, the Fund's duration was 4.5 years and the portfolio's leverage position was 37.0% of assets. INTERMEDIATE MUNICIPAL FUND For the six-month period, on a NAV basis, the Intermediate Municipal Fund provided a positive return, modestly trailing the Lehman Brothers 10-Year Municipal Bond Index. As of April 30, 2007, the portfolio included 78.4% revenue bonds, 16.0% general obligation bonds, 3.8% pre-refunded/escrow bonds, and 1.8% short-term investments. Bonds subject to the Alternative Minimum Tax (AMT) equaled 14.3% of assets. At the close of the reporting period, the Fund's duration was 4.7 years and the portfolio's leverage position was 37.0% of assets. NEW YORK INTERMEDIATE MUNICIPAL FUND For the six months ended April 30, 2007, on a NAV basis, the New York Intermediate Municipal Fund generated a positive return, outpacing both the Lehman Brothers 10-Year Municipal Bond Index and the Lipper Intermediate Municipal Debt Funds Index. As of April 30, 2007, the portfolio included 94.1% revenue bonds, 4.6% general obligation bonds, and 1.3% short-term investments. Bonds subject to the Alternative Minimum Tax (AMT) equaled 20.5% of assets. At the close of the reporting period, the Fund's duration was 4.5 years and the portfolio's leverage position was 37.3% of assets. Sincerely, /s/ James L. Iselin JAMES L. ISELIN PORTFOLIO MANAGER 3 INTERMEDIATE MUNICIPAL CLOSED-END FUNDS PERFORMANCE HIGHLIGHTS
TOTAL RETURN AVERAGE ANNUAL TOTAL SIX MONTH RETURN PERIOD ENDED NAV(1,3,4,5) INCEPTION DATE 4/30/2007 1 YEAR SINCE INCEPTION CALIFORNIA INTERMEDIATE MUNICIPAL FUND 09/24/2002 0.98% 6.78% 6.10% INTERMEDIATE MUNICIPAL FUND 09/24/2002 1.26% 6.75% 6.26% NEW YORK INTERMEDIATE MUNICIPAL FUND 09/24/2002 1.44% 6.95% 5.91%
PERFORMANCE HIGHLIGHTS
TOTAL RETURN AVERAGE ANNUAL TOTAL SIX MONTH RETURN PERIOD ENDED MARKET PRICE(2,3,4,5) INCEPTION DATE 4/30/2007 1 YEAR SINCE INCEPTION CALIFORNIA INTERMEDIATE MUNICIPAL FUND 09/24/2002 2.21% 12.93% 4.78% INTERMEDIATE MUNICIPAL FUND 09/24/2002 0.12% 10.57% 3.87% NEW YORK INTERMEDIATE MUNICIPAL FUND 09/24/2002 (0.88%) 6.70% 4.19%
CALIFORNIA INTERMEDIATE MUNICIPAL FUND RATING DIVERSIFICATION (% BY RATINGS) AAA 53.5% AA 2.4 A 17.0 BBB 19.1 BB 1.9 B 1.0 CCC 0.3 CC 0.0 C 0.0 D 0.0 Not Rated 4.7 Short Term 0.1
INTERMEDIATE MUNICIPAL FUND RATING DIVERSIFICATION (% BY RATINGS) AAA 54.6% AA 8.2 A 11.4 BBB 14.9 BB 3.5 B 1.5 CCC 0.4 CC 0.0 C 0.0 D 0.0 Not Rated 5.0 Short Term 0.5
NEW YORK INTERMEDIATE MUNICIPAL FUND RATING DIVERSIFICATION (% BY RATINGS) AAA 26.5% AA 27.5 A 12.9 BBB 14.4 BB 11.9 B 1.9 CCC 0.4 CC 0.0 C 0.0 D 0.0 Not Rated 4.5 Short Term 0.0
Closed-end funds, unlike open-end funds, are not continually offered. There is an initial public offering and, once issued, common shares of closed-end funds are sold in the open market through a stock exchange. The composition, industries and holdings of the Funds are subject to change. Investment return will fluctuate. Past performance is no guarantee of future results. 4 NEUBERGER BERMAN APRIL 30, 2007 (UNAUDITED) ENDNOTES 1. Returns based on Net Asset Value (NAV) of the Funds. 2. Returns based on market price of Fund shares on the American Stock Exchange. 3. A portion of the income from each Fund may be a tax preference item for purposes of the Federal Alternative Minimum Tax for certain investors. 4. Neuberger Berman Management Inc. has contractually agreed to waive a portion of the management fees that it is entitled to receive from each Fund. Each undertaking lasts until October 31, 2011. Please see the notes to the financial statements for specific information regarding the rate of the management fees waived by Neuberger Berman Management Inc. Absent such a waiver, the performance of each Fund would be lower. 5. Unaudited performance data current to the most recent month-end are available at www.nb.com. 5 GLOSSARY OF INDICES LEHMAN BROTHERS 10-YEAR The Lehman Brothers 10-Year Municipal Bond MUNICIPAL BOND INDEX: Index is the 10-year (8-12) component of the Lehman Brothers Municipal Bond Index, which is a rules-based, market-value-weighted index engineered for the long-term tax-exempt bond market. To be included in the index, bonds must have a minimum credit rating of Baa. They must have an outstanding par value of at least $5 million and be issued as part of a transaction of at least $50 million. The bonds must have a dated-date after December 31, 1990 and must be at least one year from their maturity date. Remarketed issues, taxable municipal bonds, bonds with floating rates, and derivatives, are excluded from the benchmark. LIPPER INTERMEDIATE MUNICIPAL The Lipper Intermediate Municipal Debt Funds DEBT FUNDS INDEX: Index is composed of the 30 largest funds in the Lipper Intermediate Municipal Debt Fund Investment Objective grouping which is comprised of open-end funds that invest in municipal debt issues with dollar-weighted average maturities of five to ten years. Please note that the indices do not take into account any fees and expenses or any tax consequences of investing in the individual securities that it tracks and that investors cannot invest directly in any index. Data about the performance of each index are prepared or obtained by Neuberger Berman Management Inc. and include reinvestment of all dividends and capital gain distributions. Each Fund may invest in securities not included in its respective indices. 6 NEUBERGER BERMAN APRIL 30, 2007 (UNAUDITED) SCHEDULE OF INVESTMENTS California Intermediate Municipal Fund Inc.
PRINCIPAL AMOUNT SECURITY @ RATING VALUE + (000'S OMITTED) MOODY'S S&P (000'S OMITTED) ARIZONA (0.8%) $ 750 Verrado Comm. Fac. Dist. Number 1 G.O., Ser. 2003, 6.15%, due 7/15/17 $ 803^^ CALIFORNIA (134.4%) ------ 580 Abag Fin. Au. Cert. of Participation Rev. (Channing House), Ser. 1999, 4.90%, due 2/15/09 BBB 589(3) 3,050 Abag Fin. Au. Cert. of Participation Rev. (Episcopal Homes Foundation), Ser. 1998, 5.13%, due 7/1/18 BBB+ 3,102(3) 1,000 Abag Fin. Au. Rev. (San Diego Hosp. Assoc.), Ser. 2003 C, 5.13%, due 3/1/18 Baa1 BBB+ 1,033(3) 1,250 Alameda Co. Cert. of Participation Ref. Rev., Ser. 2001 A, (MBIA Insured), 5.38%, due 12/1/17 Aaa 1,347 1,285 Bay Area Governments Assoc. BART SFO Extension Rev. (Arpt. Premium Fare), Ser. 2002 A, (AMBAC Insured), 5.00%, due 8/1/21 Aaa AAA 1,346 1,000 Burbank Pub. Svc. Dept. Elec. Rev., Ser. 1998, (FSA Insured), 5.13%, due 6/1/16 Aaa AAA 1,026 555 California Co. Tobacco Securitization Agcy. Tobacco Settlement Asset-Backed Rev., Ser. 2002, 4.75%, due 6/1/19 Baa3 558 1,750 California Ed. Fac. Au. Ref. Rev. (Stanford Univ.), Ser. 2001 R, 5.00%, due 11/1/21 Aaa AAA 1,832(3) 2,000 California Hlth. Fac. Fin. Au. Rev. (Catholic Healthcare West), Ser. 2004 I, 4.95%, due 7/1/26 A2 A 2,101(3) 2,000 California Hlth. Fac. Fin. Au. Rev. (Cedars-Sinai Med. Ctr.), Ser. 1999 A, 6.13%, due 12/1/19 2,141(3)^^ 2,000 California Hlth. Fac. Fin. Au. Rev. (Cedars-Sinai Med. Ctr.), Ser. 2005, 5.00%, due 11/15/21 A2 2,100(3) 1,000 California Hlth. Fac. Fin. Au. Rev. (Kaiser Permanente), Ser. 1998 B, 5.00%, due 10/1/20 A3 AAA 1,026(3) 2,000 California Hsg. Fin. Agcy. Home Mtge. Rev., Ser. 2006 E, (FGIC Insured), 4.88%, due 2/1/17 Aaa AAA 2,059 500 California Muni. Fin. Au. Ed. Rev. (American Heritage Ed. Foundation Proj.), Ser. 2006 A, 5.00%, due 6/1/16 BBB- 517(3) 4,000 California Poll. Ctrl. Fin. Au. Ref. PCR (Pacific Gas & Elec. Co.), Ser. 1996 A, (MBIA Insured), 5.35%, due 12/1/16 Aaa AAA 4,261(3) 1,500 California Poll. Ctrl. Fin. Au. Solid Waste Disp. Rev. (Republic Svc., Inc. Proj.), Ser. 2002 B, 5.25%, due 6/1/23 Putable 12/1/17 Baa2 BBB+ 1,583(3) 3,000 California Poll. Ctrl. Fin. Au. Solid Waste Disp. Rev. (Waste Management, Inc. Proj.), Ser. 2005 C, 5.13%, due 11/1/23 BBB 3,132(3) 1,000 California Poll. Ctrl. Fin. Au. Solid Waste Disp. Rev. (Waste Management, Inc. Proj.), Ser. 2002 C, 4.85%, due 12/1/27 Putable 11/30/07 BBB 1,004(3) 4,500 California St. Dept. of Wtr. Res. Pwr. Supply Rev., Ser. 2002 A, 5.75%, due 5/1/17 Aaa A- 4,972 1,000 California St. Dept. of Wtr. Res. Pwr. Supply Rev., Ser. 2002 A, 5.38%, due 5/1/22 Aaa A- 1,088 2,250 California St. G.O., Ser. 2002, 5.00%, due 10/1/17 A1 A+ 2,377 1,000 California St. Pub. Works Board Lease (Dept. of Gen. Svc.) Rev. (Cap. East End Complex), Ser. 2002 A, (AMBAC Insured), 5.25%, due 12/1/16 Aaa AAA 1,077 1,095 California St. Pub. Works Board Lease Rev. (California Comm. Colleges), Ser. 2004 B, 5.50%, due 6/1/20 A2 A 1,194 3,000 California St. Pub. Works Board Lease Rev. (Regents of the Univ. of California, UCLA Replacement Hosp.), Ser. 2002 A, (FSA Insured), 5.38%, due 10/1/13 Aaa AAA 3,247
See Notes to Schedule of Investments 7 SCHEDULE OF INVESTMENTS California Intermediate Municipal Fund Inc. cont'd
PRINCIPAL AMOUNT SECURITY @ RATING VALUE + (000'S OMITTED) MOODY'S S&P (000'S OMITTED) $1,000 California St. Univ. Fresno Assoc., Inc. Rev. (Auxiliary Organization Event Ctr.), Ser. 2002, 5.00%, due 7/1/12 Baa3 $1,064 2,000 California Statewide CDA Cert. of Participation Rev. (Children's Hosp. Los Angeles), Ser. 1999, 5.13%, due 8/15/19 Baa1 BBB+ 2,055(3) 1,765 California Statewide CDA Cert. of Participation Rev. (The Internext Group), Ser. 1999, 5.38%, due 4/1/17 BBB 1,801(3) 1,000 California Statewide CDA Hlth. Fac. Rev. (Adventist Hlth.), Ser. 2005 A, 5.00%, due 3/1/20 BBB+ 1,041(3) 5,000 California Statewide CDA Hlth. Fac. Rev. (Mem. Hlth. Svcs.), Ser. 2003 A, 6.00%, due 10/1/16 A3 A+ 5,461(3) 1,000 California Statewide CDA Rev. (Daughters of Charity Hlth.), Ser. 2005 G, 5.00%, due 7/1/22 A 1,028(3) 3,000 California Statewide CDA Rev. (Kaiser Permanente), Ser. 2002 E, 4.70%, due 11/1/36 Putable 6/1/09 A3 A+ 3,041(3) 1,000 Central Joint Pwr. Hlth. Fin. Au. Cert. of Participation Rev. (Comm. Hosp. of Central California Proj.), Ser. 2000, 5.50%, due 2/1/14 Baa2 BBB- 1,035(3) 1,020 Cerritos Pub. Fin. Au. Sub. Tax Allocation Rev. (Cerritos Redev. Proj.), Ser. 2002 B, 4.40%, due 11/1/16 BBB 1,015 2,550 Contra Costa Comm. College Dist. G.O., Ser. 2002, (FGIC Insured), 5.25%, due 8/1/17 Aaa AAA 2,742 610 Elk Grove Spec. Tax Rev. (East Franklin Comm. Fac. Dist. Number 1), Ser. 2002 A, 5.38%, due 8/1/17 637^^ 1,000 Fresno Unified Sch. Dist. Ref. G.O., Ser. 2002 A, (MBIA Insured), 6.00%, due 2/1/17 Aaa AAA 1,168 2,835 Glendale Redev. Agcy. Tax Allocation Rev. (Central Glendale Redev. Proj.), Ser. 2002, (MBIA Insured), 5.00%, due 12/1/16 Aaa AAA 3,041 2,480 Glendale Redev. Agcy. Tax Allocation Rev. (Central Glendale Redev. Proj.), Ser. 2002, (MBIA Insured), 5.25%, due 12/1/17 Aaa AAA 2,684 1,000 Kings Canyon Joint Unified Sch. Dist. G.O., Ser. 2002, (FGIC Insured), 5.38%, due 8/1/17 Aaa AAA 1,075 1,245 Long Beach Bond Fin. Au. Tax Allocation Rev. (Downtown, North Long Beach, Poly High, & West Beach Redev. Proj.), Ser. 2002 A, (AMBAC Insured), 5.38%, due 8/1/17 Aaa AAA 1,350 660 Long Beach Bond Fin. Au. Tax Allocation Rev. (North Long Beach Proj.), Ser. 2002 A, (AMBAC Insured), 5.38%, due 8/1/17 Aaa AAA 715 500 Long Beach Fin. Au. Rev., Ser. 1992, (AMBAC Insured), 6.00%, due 11/1/17 Aaa AAA 575 1,275 Los Angeles Co. Long Beach Unified Sch. Dist. G.O., Ser. 2002 D, (FSA Insured), 5.00%, due 8/1/17 Aaa 1,338 5,000 Los Angeles Dept. of Arpts. Rev. (Los Angeles Int'l. Arpt.), Ser. 2002 A, (FGIC Insured), 5.25%, due 5/15/18 Aaa AAA 5,339 100 Los Angeles Dept. of Wtr. & Pwr. Rev., Sub. Ser. 2001 B-3, (LOC: Citibank, N.A.), 4.00%, due 5/1/07 VMIG1 A-1+ 100(6) 500 Marin Co. Dixie Elementary Sch. Dist. G.O., Ser. 2000 A, (FSA Insured), 5.38%, due 8/1/17 Aaa AAA 531 1,045 Marin Co. Muni. Wtr. Dist. Wtr. Ref. Rev., Ser. 2002, (AMBAC Insured), 5.00%, due 7/1/17 Aaa AAA 1,105 1,090 Moreland Sch. Dist. Ref. G.O., Ser. 2002, (FGIC Insured), 5.13%, due 9/1/17 Aaa AAA 1,158 535 Nevada & Placer Cos. Irrigation Dist. Cert. of Participation Rev., Ser. 2002, (FGIC Insured), 5.00%, due 1/1/16 Aaa AAA 567 565 Nevada & Placer Cos. Irrigation Dist. Cert. of Participation Rev., Ser. 2002, (FGIC Insured), 5.00%, due 1/1/17 Aaa AAA 597 500 Northstar Comm. Svcs. Dist. Spl. Tax, (Comm. Facs. Dist. No. 1), Ser. 2006, 4.70%, due 9/1/18 496^^
8 NEUBERGER BERMAN APRIL 30, 2007 (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) $ 500 Northstar Comm. Svcs. Dist. Spl. Tax (Comm. Facs. Dist. Number 1), Ser. 2006, 4.75%, due 9/1/19 $ 496^^ 1,045 Oakland G.O., Ser. 2002 A, (FGIC Insured), 5.00%, due 1/15/15 Aaa AAA 1,105 1,210 Oakland G.O., Ser. 2002 A, (FGIC Insured), 5.00%, due 1/15/18 Aaa AAA 1,271 605 Oakland Redev. Agcy. Rev. (Coliseum Area Redev. Proj.), Ser. 2003, 5.00%, due 9/1/16 A 648 635 Oakland Redev. Agcy. Rev. (Coliseum Area Redev. Proj.), Ser. 2003, 5.00%, due 9/1/17 A 680 1,290 Oakland Redev. Agcy. Sub. Tax Allocation Rev. (Central Dist. Redev. Proj.), Ser. 2003, (FGIC Insured), 5.50%, due 9/1/17 Aaa AAA 1,403 1,445 Oceanside Cert. of Participation Ref. Rev., Ser. 2003 A, (AMBAC Insured), 5.25%, due 4/1/14 Aaa AAA 1,565 3,890 Port of Oakland Ref. Rev., Ser. 2002 N, (MBIA Insured), 5.00%, due 11/1/13 Aaa AAA 4,114 2,655 Riverside Co. Eastern Muni. Wtr. Dist. Cert. of Participation Wtr. & Swr. Rev., Ser. 2001 A, (FGIC Insured), 5.00%, due 7/1/19 Aaa AAA 2,781 440 Roseville Stone Point Comm. Fac. District Number 1 Special Tax Rev., Ser. 2003, 5.70%, due 9/1/17 461^^ 2,600 Sacramento Muni. Util. Dist. Elec. Rev., Ser. 1997 K, (AMBAC Insured), 5.70%, due 7/1/17 Aaa AAA 3,011 830 San Diego Redev. Agcy. Sub. Parking Rev. (Centre City Redev. Proj.), Ser. 2003 B, 4.80%, due 9/1/15 Baa2 846 820 San Diego Redev. Agcy. Sub. Parking Rev. (Centre City Redev. Proj.), Ser. 2003 B, 4.90%, due 9/1/16 Baa2 837 2,000 San Diego Unified Sch. Dist. G.O., Ser. 2002 D, (FGIC Insured), 5.25%, due 7/1/21 Aaa AAA 2,159 3,000 San Francisco Bay Area Toll Au. Toll Bridge Rev., Ser. 2001 D, 5.00%, due 4/1/17 Aa3 AA 3,134 1,500 San Francisco City & Co. Int'l. Arpt. Second Ser. Rev., (FGIC Insured), 5.25%, due 5/1/16 Aaa AAA 1,552 5,000 San Francisco City & Co. Redev. Agcy. Lease Ref. Rev. (George R. Moscone Convention Ctr.), Ser. 2002, (FSA Insured), 5.00%, due 7/1/17 Aaa AAA 5,279 1,000 San Jose Arpt. Ref. Rev., Ser. 2002 B, (FSA Insured), 5.00%, due 3/1/11 Aaa AAA 1,040 1,615 San Jose Arpt. Ref. Rev., Ser. 2002 B, (FSA Insured), 5.00%, due 3/1/12 Aaa AAA 1,692 2,500 San Jose Fin. Au. Lease Rev. (Civic Ctr. Proj.), Ser. 2002 B, (AMBAC Insured), 5.25%, due 6/1/17 Aaa AAA 2,677 1,000 San Jose Multi-Family Hsg. Rev. (Fallen Leaves Apts. Proj.), Ser. 2002 J-1, (AMBAC Insured), 4.95%, due 12/1/22 Aaa AAA 1,031(3) 1,620 Santa Clara Co. Fremont Union High Sch. Dist. G.O., Ser. 2002 C, (FSA Insured), 5.00%, due 9/1/20 Aaa AAA 1,729 1,000 Santa Rosa Rancheria Tachi Yokut Tribe Enterprise Rev., Ser. 2003, 6.13%, due 3/1/13 1,026^^ 3,905 Solano Co. Cert. of Participation Rev., Ser. 2002, (MBIA Insured), 5.25%, due 11/1/17 Aaa AAA 4,224 1,000 South Gate Pub. Fin. Au. Tax Allocation Rev. (South Gate Redev. Proj. No. 1), Ser. 2002, 5.00%, due 9/1/16 Aaa AAA 1,068 600 Univ. of California Regents Cert. of Participation Rev. (San Diego Campus & Sacramento Proj.), Ser. 2002 A, 5.25%, due 1/1/18 Aa2 631 1,000 Univ. of California Regents Rev. (Multi. Purp. Proj.), Ser. 2000 K, (MBIA Insured), 5.00%, due 9/1/12 Aaa AAA 1,029 -------- 134,960 --------
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) FLORIDA (0.8%) $ 750 Miami Beach Hlth. Fac. Au. Hosp. Ref. Rev. (Mount Sinai Med. Ctr. of Florida Proj.), Ser. 2004, 6.25%, due 11/15/09 Ba1 BB+ $ 785(3) -------- GEORGIA (1.0%) 1,000 De Kalb Co. Dev. Au. Ref. PCR (General Motors Corp. Proj.), Ser. 2002, 6.00%, due 3/15/21 Caa1 B- 1,024(3) -------- GUAM (0.7%) 700 Guam Gov't. Waterworks Au. Wtr. & Wastewater Sys. Rev., Ser. 2005, 5.50%, due 7/1/16 Ba2 748 -------- LOUISIANA (2.9%) 1,500 Morehouse Parish Ref. PCR (Int'l. Paper Co. Proj.), Ser. 2001 A, 5.25%, due 11/15/13 Baa3 BBB 1,580(3) 1,250 Tobacco Settlement Fin. Corp. Tobacco Settlement Asset-Backed Rev., Ser. 2001 B, 5.50%, due 5/15/30 Baa3 BBB 1,317 -------- 2,897 -------- NEW YORK (1.1%) 500 New York City IDA Liberty Rev. (7 World Trade Center, LLC Proj.), Ser. 2005 A, 6.25%, due 3/1/15 531^^ 500 New York City IDA Spec. Fac. Rev. (American Airlines, Inc. J.F.K. Int'l. Arpt. Proj.), Ser. 2005, 7.50%, due 8/1/16 B 581(3) -------- 1,112 -------- NORTH CAROLINA (1.5%) 1,405 North Carolina Muni. Pwr. Agcy. Number 1 Catawba Elec. Rev., Ser. 2003 A, 5.50%, due 1/1/14 A3 BBB+ 1,504 -------- OHIO (0.5%) 500 Coshocton Co. Env. Imp. Ref. Rev. (Smurfit-Stone Container Enterprises, Inc. Proj.), Ser. 2005, 5.13%, due 8/1/13 CCC+ 502(1)(3) -------- PENNSYLVANIA (1.1%) 1,000 Cumberland Co. 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 1,062(3) -------- PUERTO RICO (6.6%) 1,295 Puerto Rico Children's Trust Tobacco Settlement Asset-Backed Rev., Ser. 2002, 5.38%, due 5/15/33 Baa3 BBB 1,352 1,000 Puerto Rico Ind., Tourist, Ed., Med. & Env. Ctrl. Fac. Rev. (Polytechnic Univ. of Puerto Rico Proj.), Ser. 2002 A, (ACA Insured), 5.25%, due 8/1/15 A 1,053(3) 3,000 Puerto Rico Muni. Fin. Agcy. Rev., Ser. 2002 A, (FSA Insured), 5.25%, due 8/1/17 Aaa AAA 3,208 1,000 Puerto Rico Muni. Fin. Agcy. Rev., Ser. 2002 A, (FSA Insured), 5.25%, due 8/1/21 Aaa AAA 1,065 -------- 6,678 -------- TEXAS (3.3%) 900 Brazos River Au. Ref. PCR (TXU Energy Co. LLC Proj.), Ser. 2003 A, 6.75%, due 4/1/38 Putable 4/1/13 Baa2 BB 976(3) 750 Brazos River Au. Ref. Rev. (Reliant Energy, Inc. Proj.), Ser. 1999 B, 7.75%, due 12/1/18 Ba1 BBB- 794(3) 1,000 Brazos River Harbor Navigation Dist. of Brazoria Co. Env. Fac. Rev. (Dow Chemical Co. Proj.), Ser. 2002 A-4, 5.20%, due 5/15/33 A- 1,010(3) 500 Dallas-Fort Worth Int'l. Arpt. Fac. Imp. Corp. Rev., Ser. 2004 A-1, 6.15%, due 1/1/16 Ba2 505(3) -------- 3,285 --------
10 NEUBERGER BERMAN APRIL 30, 2007 (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) VIRGIN ISLANDS (2.0%) $ 250 Virgin Islands Pub. Fin. Au. Refinery Fac. Rev. (HOVENSA Refinery), Ser. 2003, 6.13%, due 7/1/22 Baa3 BBB $ 277 750 Virgin Islands Pub. Fin. Au. Rev. (Virgin Islands Matching Fund Loan Notes), Ser. 1998 E, 6.00%, due 10/1/22 779^^ 1,000 Virgin Islands Wtr. & Pwr. Au. Elec. Sys. Ref. Rev., Ser. 1998, 5.30%, due 7/1/18 1,004+/- -------- 2,060 -------- TOTAL INVESTMENTS (156.7%) (COST $153,105) 157,420## Cash, receivables and other assets, less liabilities (2.0%) 2,012 Liquidation Value of Auction Market Preferred Shares [(58.7%)] (59,000) -------- TOTAL NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS (100.0%) $100,432 --------
See Notes to Schedule of Investments 11 SCHEDULE OF INVESTMENTS Intermediate Municipal Fund Inc.
PRINCIPAL AMOUNT SECURITY @ RATING VALUE + (000'S OMITTED) MOODY'S S&P (000'S OMITTED) ALABAMA (1.5%) $4,210 DCH Hlth. Care Au. Hlth. Care Fac. Rev., Ser. 2002, 5.25%, due 6/1/14 A1 A+ $ 4,482 ------- ARIZONA (1.9%) 1,465 Arizona Energy Management Svcs. (Main) LLC Energy Conservation Rev. (Arizona St. Univ. Proj.-Main Campus), Ser. 2002, (MBIA Insured), 5.25%, due 7/1/17 Aaa AAA 1,570 1,750 Verrado Comm. Fac. Dist. Number 1 G.O., Ser. 2003, 6.15%, due 7/15/17 1,873^^ 2,325 Verrado Comm. Fac. Dist. Number 1 G.O., Ser. 2006, 5.05%, due 7/15/18 2,355^^ ------- 5,798 ------- CALIFORNIA (7.6%) 3,500 California Poll. Ctrl. Fin. Au. Solid Waste Disp. Rev. (Republic Svc., Inc. Proj.), Ser. 2002 B, 5.25%, due 6/1/23 Putable 12/1/17 Baa2 BBB+ 3,695(3) 2,000 California Poll. Ctrl. Fin. Au. Solid Waste Disp. Rev. (Waste Management, Inc. Proj.), Ser. 2005 C, 5.13%, due 11/1/23 BBB 2,088(3) 2,500 California St. Dept. of Wtr. Res. Pwr. Supply Rev., Ser. 2002 A, 5.75%, due 5/1/17 Aaa A- 2,762 3,460 California St. Dept. of Wtr. Res. Pwr. Supply Rev., Ser. 2002 A, 5.38%, due 5/1/22 Aaa A- 3,764 1,500 California St. Pub. Works Board Lease Rev., Ser. 2002 A, (AMBAC Insured), 5.25%, due 12/1/17 Aaa AAA 1,612 1,240 California Statewide CDA Hlth. Fac. Rev. (Mem. Hlth. Svcs.), Ser. 2003 A, 6.00%, due 10/1/16 A3 A+ 1,354(3) 3,000 Golden St. Tobacco Securitization Corp. Tobacco Settlement Asset-Backed Rev., Ser. 2003 A-1, 6.25%, due 6/1/33 Aaa AAA 3,315 2,080 Oakland Redev. Agcy. Sub. Tax Allocation Rev. (Central Dist. Redev. Proj.), Ser. 2003, (FGIC Insured), 5.50%, due 9/1/18 Aaa AAA 2,256 740 San Diego Redev. Agcy. Sub. Parking Rev. (Centre City Redev. Proj.), Ser. 2003 B, 5.00%, due 9/1/17 Baa2 759 1,500 Santa Rosa Rancheria Tachi Yokut Tribe Enterprise Rev., Ser. 2006, 4.88%, due 3/1/16 1,529^^ ------- 23,134 ------- COLORADO (5.2%) 4,220 Colorado Springs Util. Sys. Sub. Lien Ref. Rev., Ser. 2002 A, (AMBAC Insured), 5.38%, due 11/15/18 Aaa AAA 4,529 4,000 Denver City & Co. Arpt. Sys. Ref. Rev., Ser. 2002 E, (FGIC Insured), 5.25%, due 11/15/14 Aaa AAA 4,244 2,000 Denver City & Co. Arpt. Sys. Rev., Ser. 1991 D, (XLCA Insured), 7.75%, due 11/15/13 A1 AAA 2,238 4,610 Thornton Cert. of Participation, Ser. 2002, (AMBAC Insured), 5.38%, due 12/1/16 Aaa AAA 4,996 ------- 16,007 ------- CONNECTICUT (0.8%) 2,400 Mashantucket Western Pequot Tribe Spec. Rev., Sub. Ser. 1997 B, 5.70%, due 9/1/12 Baa3 2,462(1) ------- DISTRICT OF COLUMBIA (1.6%) 4,495 Dist. of Columbia (Washington, D.C.) Ref. G.O., Ser. 2002 C, (XLCA Insured), 5.25%, due 6/1/13 Aaa AAA 4,783 ------- FLORIDA (8.8%) 2,500 Broward Co. G.O., Ser. 2001 A, 5.25%, due 1/1/18 Aa1 AA+ 2,641 2,805 Fiddlers Creek Comm. Dev. Dist. Number 2 Spec. Assessment Rev., Ser. 2003 A, 6.00%, due 5/1/16 2,927^^
12 NEUBERGER BERMAN APRIL 30, 2007 (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) $1,750 Miami Beach Hlth. Fac. Au. Hosp. Ref. Rev. (Mount Sinai Med. Ctr. of Florida Proj.), Ser. 2004, 6.25%, due 11/15/09 Ba1 BB+ $ 1,832(3) 8,140 Orange Co. Sales Tax Ref. Rev., Ser. 2002 A, (FGIC Insured), 5.13%, due 1/1/18 Aaa AAA 8,633 2,085 Palm Beach Co. Hlth. Fac. Au. Hosp. Ref. Rev. (BRCH Corp. Oblig. Group), Ser. 2001, 5.00%, due 12/1/12 A 2,170(3) 7,000 Palm Beach Co. Sch. Board Cert. of Participation, Ser. 2001 B, (AMBAC Insured), 5.38%, due 8/1/17 Aaa AAA 7,482 1,000 Sarasota Co. Util. Sys. Ref. Rev., Ser. 2002 C, (FGIC Insured), 5.25%, due 10/1/20 Aaa AAA 1,066 ------- 26,751 ------- GEORGIA (2.6%) 4,575 Henry Co. Wtr. & Swr. Au. Wtr. & Swr. Ref. Rev., Ser. 2002 A, (MBIA Insured), 5.13%, due 2/1/17 Aaa AAA 4,954 2,710 Newnan Hosp. Au. Rev. Anticipation Cert. (Newnan Hosp., Inc. Proj.), Ser. 2002, (MBIA Insured), 5.50%, due 1/1/18 Aaa 2,934(3) ------- 7,888 ------- ILLINOIS (10.0%) 5,940 Chicago G.O., Ser. 2002 A, (AMBAC Insured), 5.38%, due 1/1/17 Pre-Refunded 7/1/12 Aaa AAA 6,400 180 Chicago G.O., Ser. 2002 A, (AMBAC Insured), 5.38%, due 1/1/17 Aaa AAA 193 1,500 Chicago Metro. Wtr. Reclamation Dist. Cap. Imp. G.O., Ser. 2002 C, 5.38%, due 12/1/16 Aaa 1,625(5) 5,130 Illinois Ed. Fac. Au. Rev. (Field Museum of Natural History), Ser. 2002, 4.30%, due 11/1/36 A2 A 5,205(3) 4,000 Illinois Fin. Au. Rev. (Clare Oaks Proj.), Ser. 2006 A, 5.75%, due 11/15/16 4,206(3)^^ 5,000 Illinois G.O., Ser. 2002, (MBIA Insured), 5.25%, due 10/1/14 Aaa AAA 5,359 3,000 Illinois Hlth. Fac. Au. Rev. (Loyola Univ. Hlth. Sys.), Ser. 1997 A, (MBIA Insured), 6.00%, due 7/1/14 Aaa AAA 3,408(3) 1,670 Illinois Metro. Pier & Exposition Au. Dedicated St. Tax Ref. Rev., Ser. 1998 A, 5.50%, due 6/15/17 Aaa AAA 1,895 2,000 Kane, Cooke, & DuPage Cos. Elgin Sch. Dist. Number U-46 G.O., Ser. 1998, (FSA Insured), 5.35%, due 1/1/15 Aaa 2,127 ------- 30,418 ------- INDIANA (9.6%) 1,995 Indiana Bond Bank Rev. (St. Revolving Fund Prog.), Ser. 2001 A, 5.38%, due 2/1/17 AAA 2,179 760 Indiana Bond Bank Rev. (St. Revolving Fund Prog.), Ser. 2001 B, 5.25%, due 2/1/18 AAA 819 8,005 Indiana Bond Bank Rev. (Unrefunded Bal. Revolving Fund Prog.), Ser. 2001 A, 5.38%, due 2/1/17 AAA 8,710 2,800 Indiana Bond Bank Rev. (Unrefunded Bal. Revolving Fund Prog.), Ser. 2002 B, 5.25%, due 2/1/18 AAA 3,000 4,000 Indiana Hlth. & Ed. Fac. Fin. Au. Hosp. Ref. Rev. (Clarian Hlth. Oblig. Group), Ser. 2006 B, 5.00%, due 2/15/21 A2 A+ 4,173(3) 1,000 Indiana Muni. Pwr. Agcy. Pwr. Supply Sys. Rev., Ser. 2002 B, (MBIA Insured), 5.25%, due 1/1/18 Aaa AAA 1,069 2,050 Indiana St. Hlth. Fac. Fin. Au. Rev. (Hlth. Sys. Sisters of St. Francis), Ser. 2001, 5.35%, due 11/1/15 Aa3 2,189(3) 1,065 Indiana St. Recreational Dev. Comm. Rev., Ser. 2002, (AMBAC Insured), 5.25%, due 7/1/18 Aaa AAA 1,131
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) $1,125 Indiana St. Recreational Dev. Comm. Rev., Ser. 2002, (AMBAC Insured), 5.25%, due 7/1/19 Aaa AAA $ 1,192 2,580 Indianapolis Local Pub. Imp. Rev. (Indianapolis Arpt. Au. Proj.), Ser. 2003 A, (FSA Insured), 5.63%, due 1/1/17 Aaa AAA 2,788 2,000 Jasper Hosp. Au. Hosp. Fac. Ref. Rev. (Mem. Hosp. & Hlth. Care Ctr. Proj.), Ser. 2002, 5.50%, due 11/1/17 AA 2,149(3) ------- 29,399 ------- IOWA (2.4%) 1,000 Coralville Urban Renewal Rev., Tax Increment, Ser. 2007 C, 5.00%, due 6/1/15 Baa1 1,044(4) 3,000 Iowa Tobacco Settlement Au. Tobacco Settlement Asset-Backed Rev., Ser. 2001 B, 5.30%, due 6/1/25 AAA 3,178 3,000 Iowa Tobacco Settlement Au. Tobacco Settlement Asset-Backed Rev., Ser. 2005 C, 5.38%, due 6/1/38 Baa3 BBB 3,094 ------- 7,316 ------- LOUISIANA (1.2%) 2,500 Morehouse Parish Ref. PCR (Int'l. Paper Co. Proj.), Ser. 2001 A, 5.25%, due 11/15/13 Baa3 BBB 2,634(3) 1,000 Tobacco Settlement Fin. Corp. Tobacco Settlement Asset-Backed Rev., Ser. 2001 B, 5.50%, due 5/15/30 Baa3 BBB 1,053 ------- 3,687 ------- MARYLAND (0.5%) 1,000 Maryland St. Hlth. & Higher Ed. Fac. Au. Rev. (Union Hosp. of Cecil Co.), Ser. 2002, 5.50%, due 7/1/14 A3 1,061(3) 400 Prince George's Co. Unrefunded Balance Cons. Pub. Imp. G.O., Ser. 2001, (FGIC Insured), 5.25%, due 12/1/16 Aaa AAA 429 ------- 1,490 ------- MASSACHUSETTS (8.6%) 3,000 Massachusetts Port Au. Spec. Fac. Rev. (Delta Air Lines, Inc. Proj.), Ser. 2001 A, (AMBAC Insured), 5.50%, due 1/1/19 Aaa AAA 3,147(3) 1,850 Massachusetts St. G.O., Ser. 2002 E, (MBIA Insured), 5.38%, due 1/1/18 Aaa AAA 2,005(5) 2,450 Massachusetts St. Hlth. & Ed. Fac. Au. Rev. (Caritas Christi Oblig. Group), Ser. 1999 A, 5.70%, due 7/1/15 Baa3 BBB 2,531(3) 2,810 Massachusetts St. Hlth. & Ed. Fac. Au. Rev. (Milford-Whitinsville Reg. Hosp.), Ser. 1998 C, 5.75%, due 7/15/13 Baa3 BBB- 2,896(3) 4,935 Massachusetts St. Hlth. & Ed. Fac. Au. Rev. (New England Med. Ctr. Hosp.), Ser. 2002 H, (FGIC Insured), 5.38%, due 5/15/16 Aaa AAA 5,302(3) 5,030 Massachusetts St. Wtr. Poll. Abatement Trust Rev. (MWRA Prog.), Ser. 2002 A, 5.25%, due 8/1/19 Aaa AAA 5,364 2,000 Massachusetts St. Wtr. Poll. Abatement Trust Rev. (Pool Prog.), Ser. 2001, 5.25%, due 2/1/16 Pre-Refunded 8/1/11 Aaa AAA 2,121 2,775 Massachusetts St. Wtr. Poll. Abatement Trust Unrefunded Balance Rev. (Pool Prog.), Ser. 2001, 5.25%, due 2/1/16 Aaa AAA 2,933 ------- 26,299 ------- MICHIGAN (6.5%) 3,075 Detroit Sch. Dist. Sch. Bldg. & Site Imp. G.O., Ser. 2002 A, (FGIC Insured), 5.50%, due 5/1/15 Aaa AAA 3,365 1,070 Ingham & Clinton Cos. East Lansing Bldg. Au. Ref. G.O., Ser. 1999, 5.25%, due 10/1/16 AA+ 1,107 1,375 Macomb Co. New Haven Comm. Sch. Bldg. & Site G.O., Ser. 2002, 5.25%, due 5/1/17 Aa3 AA 1,479
14 NEUBERGER BERMAN APRIL 30, 2007 (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) $1,500 Michigan St. Bldg. Au. Rev. (Fac. Prog.), Ser. 2001 II, 5.50%, due 10/15/18 A1 AA- $ 1,608 5,000 Michigan St. Hsg. Dev. Au. Single-Family Mtge. Rev., Ser. 2001 A, (MBIA Insured), 5.30%, due 12/1/16 Aaa AAA 5,147 3,850 Royal Oak Hosp. Fin. Au. Hosp. Ref. Rev. (William Beaumont Hosp.), Ser. 1996 I, 6.25%, due 1/1/12 Aa3 AA- 4,216(3) 1,000 Summit Academy North Pub. Sch. Academy Ref. Rev., Ser. 2005, 6.00%, due 11/1/15 BB+ 1,053 2,000 Summit Academy North Pub. Sch. Academy Ref. Rev., Ser. 2005, 5.25%, due 11/1/20 BB+ 2,024 ------- 19,999 ------- MINNESOTA (1.6%) 2,000 Freeborn Co. Hsg. & Redev. Au. Lease Rev. (Criminal Justice Ctr. Proj.), Ser. 2002, 5.38%, due 2/1/17 Baa1 2,103 2,540 St. Paul Port Au. Lease Rev. (Office Bldg. at Cedar Street), Ser. 2002, 5.00%, due 12/1/17 Aa2 AA+ 2,670 ------- 4,773 ------- MISSOURI (4.0%) 3,495 Bi State Dev. Agcy. Metro. Dist. Rev. (Metrolink Cross Co. Extension Proj.), Ser. 2002 B, (FSA Insured), 5.25%, due 10/1/16 Aaa AAA 3,772 2,000 Boone Co. Hosp. Ref. Rev. (Boone Hosp. Ctr.), Ser. 2002, 5.05%, due 8/1/20 A3 2,066(3) 2,425 Branson Dev. Fin. Board Infrastructure Fac. Board Rev., Ser. 2003 A, 5.00%, due 12/1/17 Baa1 BBB+ 2,478 750 Branson Ind. Dev. Au. Ltd. Oblig. Tax Increment Rev. (Branson Landing-Retail Proj.), Ser. 2005, 5.25%, due 6/1/21 763^^ 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 2,180 820 Missouri St. Hsg. Dev. Comm. Multi-Family Hsg. Rev., Ser. 2001 II, 5.25%, due 12/1/16 AA 852 110 Missouri St. Hsg. Dev. Comm. Multi-Family Hsg. Rev., Ser. 2001 III, 5.05%, due 12/1/15 AA 115 ------- 12,226 ------- NEVADA (5.2%) 5,335 Clark Co. Passenger Fac. Charge Ref. Rev. (Las Vegas-McCarran Int'l. Arpt. Proj.), Ser. 2002 A, (MBIA Insured), 5.25%, due 7/1/10 Aaa AAA 5,537 4,355 Las Vegas Valley Wtr. Dist. Ref. & Wtr. Imp. G.O., Ser. 2003 A, (FGIC Insured), 5.25%, due 6/1/16 Aaa AAA 4,665 5,395 Truckee Meadows Wtr. Au. Wtr. Rev., Ser. 2001 A, (FSA Insured), 5.50%, due 7/1/15 Aaa AAA 5,747 ------- 15,949 ------- NEW HAMPSHIRE (1.8%) 3,310 New Hampshire Hlth. Ed. Fac. Au. Rev. (Univ. Sys. of New Hampshire), Ser. 1992, (AMBAC Insured), 5.38%, due 7/1/17 Aaa AAA 3,554 1,700 New Hampshire Hlth. Ed. Fac. Au. Rev. (Univ. Sys. of New Hampshire), Ser. 1992, (AMBAC Insured), 5.38%, due 7/1/17 Aaa AAA 1,817 ------- 5,371 ------- NEW JERSEY (6.3%) 5,000 New Jersey Bldg. Au. St. Bldg. Ref. Rev., Ser. 2002 B, (FSA Insured), 5.25%, due 12/15/15 Aaa AAA 5,368
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) $1,500 New Jersey Econ. Dev. Au. Cigarette Tax Rev., Ser. 2004, 5.63%, due 6/15/19 Baa2 BBB $ 1,565 700 New Jersey Econ. Dev. Au. Retirement Comm. Rev. Ref. (Seabrook Vlg. Inc. Fac.), Ser. 2006, 5.25%, due 11/15/26 717(3)^^ 6,900 New Jersey Ed. Fac. Au. Rev. (Stevens Institute of Technology), Ser. 2002 C, 5.25%, due 7/1/17 Baa2 BBB+ 7,282(3) 4,000 New Jersey Hlth. Care Fac. Fin. Au. Rev. (Somerset Med. Ctr. Issue), Ser. 2003, 5.50%, due 7/1/18 Ba1 4,166(3) ------- 19,098 ------- NEW YORK (5.8%) 1,105 Lyons Comm. Hlth. Initiatives Corp. Fac. Rev., Ser. 2004, 5.50%, due 9/1/14 A2 1,184 3,250 New York City G.O., Ser. 2002 C, 5.50%, due 8/1/15 A1 AA- 3,517 2,580 New York City IDA Civic Fac. Rev. (Lycee Francais de New York Proj.), Ser. 2002 A, 5.50%, due 6/1/14 A 2,722(3) 750 New York City IDA Civic Fac. Rev. (Vaughn College of Aeronautics and Technology), Ser. 2006 A, 5.00%, due 12/1/21 BB+ 754(3) 2,750 New York City IDA Liberty Rev. (7 World Trade Center, LLC Proj.), Ser. 2005 A, 6.25%, due 3/1/15 2,919^^ 1,750 New York City IDA Spec. Fac. Rev. (American Airlines, Inc. J.F.K. Int'l. Arpt. Proj.), Ser. 2005, 7.50%, due 8/1/16 B 2,033(3) 1,250 New York Liberty Dev. Corp. Rev. (Nat'l. Sports Museum Proj.), Ser. 2006 A, 6.13%, due 2/15/19 1,310^^ 1,700 New York St. Dorm. Au. Personal Income Tax Rev., Ser. 2003 A, 5.38%, due 3/15/20 Aa3 AAA 1,854 1,300 New York St. Urban Dev. Corp. Ref. Rev. (Correctional Cap. Fac.), Ser. 1998, 5.00%, due 1/1/14 A1 AA- 1,336 ------- 17,629 ------- NORTH DAKOTA (1.4%) 4,100 Fargo Hlth. Sys. Rev. (Meritcare Obligated Group), Ser. 2002 A, (AMBAC Insured), 5.63%, due 6/1/17 Aaa AAA 4,415(3) ------- OHIO (2.7%) 1,000 Coshocton Co. Env. Imp. Ref. Rev. (Smurfit-Stone Container Enterprises, Inc. Proj.), Ser. 2005, 5.13%, due 8/1/13 CCC+ 1,004(1)(3) 3,000 Moraine Solid Waste Disp. Rev. (General Motors Corp. Proj.), Ser. 1994, 6.75%, due 7/1/14 Caa1 B- 3,188(3) 3,760 Ohio Air Quality Dev. Au. Env. Imp. Ref. Rev. (USX Corp. Proj.), Ser. 1995, 5.00%, due 11/1/15 Baa1 BBB+ 3,948(3) ------- 8,140 ------- PENNSYLVANIA (5.7%) 1,765 Cumberland Co. 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 1,879(3) 565 Delaware River Joint Toll Bridge Comm. Sys. Rev., Ser. 2003, 5.25%, due 7/1/18 Pre-Refunded 7/1/13 A2 A- 611 435 Delaware River Joint Toll Bridge Comm. Sys. Rev., Ser. 2003, 5.25%, due 7/1/18 A2 A- 465 2,000 Lehigh Co. Gen. Purp. Au. Rev. (KidsPeace Oblig. Group), Ser. 1998, 6.00%, due 11/1/23 B2 1,964(3) 5,000 Montgomery Co. Higher Ed. & Hlth. Au. Hosp. Rev. (Abington Mem. Hosp. Proj.), Ser. 2002 A, 5.00%, due 6/1/19 A 5,150(3) 1,000 Pennsylvania Econ. Dev. Fin. Au. Res. Rec. Ref. Rev. (Colver Proj.), Ser. 2005 G, 5.13%, due 12/1/15 1,016^^
16 NEUBERGER BERMAN APRIL 30, 2007 (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 Philadelphia Arpt. Ref. Rev. (Philadelphia Arpt. Sys.), Ser. 1998 A, (FGIC Insured), 5.38%, due 6/15/14 Aaa AAA $ 2,069 1,480 Sayre Hlth. Care Fac. Au. Rev., 5.75%, due 12/1/21 Pre-Refunded 12/1/11 A 1,618(3) 520 Sayre Hlth. Care Fac. Au. Rev., 5.75%, due 12/1/21 A 555(3) 2,000 Westmoreland Co. IDA Gtd. Rev. (National Waste & Energy Corp., Valley Landfill Expansion Proj.), Ser. 1993, 5.10%, due 5/1/18 BBB 2,027(3) ------- 17,354 ------- SOUTH CAROLINA (5.4%) 1,100 Charleston Co. Sch. Dist. G.O., Ser. 2001, (FSA Insured), 5.00%, due 2/1/18 Aaa AAA 1,153 2,140 Mt. Pleasant Town Waterworks & Swr. Sys. Ref. & Imp. Rev., Ser. 2002, (FGIC Insured), 5.25%, due 12/1/17 Aaa AAA 2,295 2,345 South Carolina Jobs Econ. Dev. Au. Hosp. Ref. Rev. (Palmetto Hlth. Alliance), Ser. 2003 A, 6.00%, due 8/1/13 Baa1 BBB+ 2,525(3) 2,000 South Carolina Jobs Econ. Dev. Au. Hosp. Ref. Rev. (Palmetto Hlth. Alliance), Ser. 2003 A, 6.13%, due 8/1/23 Baa1 BBB+ 2,160(3) 4,665 South Carolina St. Pub. Svc. Au. Rev., Ser. 2002 B, (FSA Insured), 5.38%, due 1/1/18 Aaa AAA 5,005 3,500 Union Co. IDR (Federal Paper Board Co., Inc. Proj.), Ser. 1989, 4.55%, due 11/1/09 Baa3 BBB 3,489(3) ------- 16,627 ------- TENNESSEE (2.3%) 400 Blount Co. Pub. Bldg. Au., (Local Gov't. Imp.), Ser. 2005 D-5-E, 4.12%, due 5/1/07 VMIG1 400(6) 100 Clarksville Pub. Bldg. Au. Rev., Muni. Bond Fund, Ser. 2001, (LOC: Bank of America), 4.04%, due 5/1/07 VMIG1 100(6) 1,655 Knox Co. Hlth. Ed. & Hsg. Fac. Board Hosp. Fac. Rev., Ser. 2002 A, 5.50%, due 1/1/18 Pre-Refunded 1/1/13 Aaa AAA 1,806(3) 1,360 Knox Co. Hlth. Ed. & Hsg. Fac. Board Hosp. Fac. Rev. Unrefunded Bal., Ser. 2002 A, (FSA Insured), 5.50%, due 1/1/18 Aaa AAA 1,468(3) 3,085 Memphis-Shelby Co. Arpt. Au. Spec. Fac. Ref. Rev. (Federal Express Corp.), Ser. 2002, 5.05%, due 9/1/12 Baa2 BBB 3,230(3) ------- 7,004 ------- TEXAS (23.1%) 4,145 Anson Ed. Fac. Corp. Std. Hsg. Rev. (Univ. of Texas at Dallas-Waterview Park Proj.), Ser. 2002, 5.00%, due 1/1/23 A 4,267(3) 965 Austin Convention Enterprises, Inc. Convention Ctr. Hotel First Tier Rev., Ser. 2001 A, 6.38%, due 1/1/16 Aaa BBB- 1,031 3,300 Brazos River Au. Ref. PCR (TXU Energy Co. LLC Proj.), Ser. 2003 A, 6.75%, due 4/1/38 Putable 4/1/13 Baa2 BB 3,579(3) 1,000 Brazos River Au. Ref. PCR (TXU Energy Co. LLC Proj.), Ser. 2003 D, 5.40%, due 10/1/29 Putable 10/1/14 BB 1,023(3) 1,000 Brazos River Au. Ref. Rev. (Reliant Energy, Inc. Proj.), Ser. 1999 B, 7.75%, due 12/1/18 Ba1 BBB- 1,059(3) 3,600 Corpus Christi Tax & Muni. Hotel Occupancy Tax G.O., Ser. 2002, (FSA Insured), 5.50%, due 9/1/17 Aaa AAA 3,880 2,100 Dallas-Fort Worth Int'l. Arpt. Fac. Imp. Corp. Rev., Ser. 2004 A-1, 6.15%, due 1/1/16 Ba2 2,119(3) 1,935 Dallas-Fort Worth Int'l. Arpt. Imp. Rev., Ser. 2004 B, (FSA Insured), 5.50%, due 11/1/18 Aaa AAA 2,103 1,750 Ector Co. Hosp. Dist. Hosp. Rev., Ser. 2002 A, 5.63%, due 4/15/16 A3 BBB+ 1,801 1,745 Ector Co. Hosp. Dist. Hosp. Rev., Ser. 2002 A, 5.63%, due 4/15/17 A3 BBB+ 1,794
See Notes to Schedule of Investments 17 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 Gulf Coast Ind. Dev. Au. Env. Fac. Rev., (CITGO Petroleum Corp. Proj.), Ser. 2002, (LOC: Royal Bank of Scotland), 4.13%, due 5/1/07 VMIG1 $ 2,000(6)(3) 7,000 Harris Co. Toll Road Sr. Lien Ref. Rev., Ser. 2002, (FSA Insured), 5.38%, due 8/15/16 Aaa AAA 7,519 610 HFDC Central Texas Inc. Retirement Fac. Rev., Ser. 2006 A, 5.25%, due 11/1/15 623(3)^^ 3,235 Houston Arpt. Sys. Sub. Lien. Ref. Rev., Ser. 2001 A, (FGIC Insured), 5.50%, due 7/1/16 Aaa AAA 3,435 4,955 Houston Pub. Imp. Ref. G.O., Ser. 2002, (MBIA Insured), 5.25%, due 3/1/17 Aaa AAA 5,273 2,000 Lubbock Hlth. Fac. Dev. Corp. Rev. (St. Joseph Hlth. Sys.), Ser. 1998, 5.25%, due 7/1/16 Aa3 AA- 2,048(3) 4,780 North Central Hlth. Fac. Dev. Corp. Hosp. Ref. Rev. (Baylor Hlth. Care Sys. Proj.), Ser. 1998, 5.10%, due 5/15/13 Aa3 AA- 4,930(3) 950 Northwest Texas Independent Sch. Dist. Sch. Bldg., Ser. 2002, 5.50%, due 8/15/17 Pre-Refunded 2/15/13 Aaa 1,037 50 Northwest Texas Independent Sch. Dist. Unrefunded Bal. Sch. Bldg., Ser. 2002, 5.50%, due 8/15/17 Aaa 54 20 San Antonio Cert. of Obligation G.O., Ser. 2002, 5.00%, due 2/1/14 Pre-Refunded 2/1/12 Aa2 AA+ 21 6,795 San Antonio Independent Sch. Dist. Unlimited Tax G.O., Ser. 2001 B, 5.38%, due 8/15/17 Aaa AAA 7,220 1,240 San Antonio Unrefunded Balance Cert. of Obligation G.O., Ser. 2002, 5.00%, due 2/1/14 Aa2 AA+ 1,303 910 Southmost Regl. Wtr. Auth. Tex. Wtr. Supply Contract Rev., Ser. 2002, (MBIA Insured), 5.50%, due 9/1/19 Pre-Refunded 9/1/12 Aaa 988 1,000 Southmost Regl. Wtr. Auth. Tex. Wtr. Supply Contract Rev. Unrefunded Bal., Ser. 2002, (MBIA Insured), 5.50%, due 9/1/19 Aaa 1,077 4,200 Tarrant Reg. Wtr. Dist. Wtr. Ref. & Imp. Rev., Ser. 2002, (FSA Insured), 5.38%, due 3/1/16 Aaa AAA 4,538 420 Texas Std. Hsg. Corp. Std. Hsg. Rev. (Midwestern St. Univ. Proj.), Ser. 2002, 5.50%, due 9/1/12 Baa3 436 1,000 Trinity River Au. Imp. & Ref. Rev. (Tarrant Co. Wtr. Proj.), Ser. 2003, (MBIA Insured), 5.50%, due 2/1/16 Aaa AAA 1,091 1,085 Tyler Hlth. Fac. Dev. Corp. Hosp. Rev. (Mother Frances Hosp. Reg. Hlth. Care Ctr. Proj.), Ser. 2003, 5.25%, due 7/1/13 Baa1 1,143 2,950 Univ. of Texas Board of Regents Fin. Sys. Rev., Ser. 1999 B, 5.38%, due 8/15/18 Aaa AAA 3,059 ------ 70,451 ------ VIRGIN ISLANDS (0.9%) 1,000 Virgin Islands Pub. Fin. Au. Refinery Fac. Rev. (HOVENSA Refinery), Ser. 2003, 6.13%, due 7/1/22 Baa3 BBB 1,110 1,500 Virgin Islands Pub. Fin. Au. Refinery Fac. Rev. (HOVENSA Refinery), Ser. 2004, 5.88%, due 7/1/22 Baa3 BBB 1,652(3) ------ 2,762 ------ VIRGINIA (1.5%) 1,000 Hopewell Ind. Dev. Au. Env. Imp. Ref. Rev. (Smurfit-Stone Container Enterprise, Inc. Proj.), Ser. 2005, 5.25%, due 6/1/15 CCC+ 1,010(3) 2,620 Peninsula Ports Au. Res. Care Fac. Ref. Rev. (VA Baptist Homes), Ser. 2006 C, 5.25%, due 12/1/21 2,707(3)^^ 1,000 Virginia Beach Dev. Au. Residential Care Fac. Mtge. Ref. Rev. (Westminster-Canterbury of Hampton Roads, Inc.), Ser. 2005, 5.00%, due 11/1/22 1,013(3)^^ ------ 4,730 ------
18 NEUBERGER BERMAN APRIL 30, 2007 (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) WASHINGTON (11.7%) $1,000 Clark Co. Vancouver Sch. Dist. Number 37 G.O., Ser. 1998, 5.13%, due 12/1/12 Aa3 $ 1,064 8,800 Energy Northwest Elec. Ref. Rev. (Proj. No. 3), Ser. 2001 A, (FSA Insured), 5.50%, due 7/1/17 Aaa AAA 9,431 5,000 King & Snohomish Cos. Northshore Sch. Dist. Number 417 G.O., Ser. 2002, (FSA Insured), 5.50%, due 12/1/17 Aaa AAA 5,406 4,260 King Co. Pub. Trans. Sales Tax Ref. G.O., Ser. 2002, (FSA Insured), 5.38%, due 12/1/14 Aaa AAA 4,596 6,250 Port of Seattle Sub. Lien Rev., Ser. 2002 B, (FGIC Insured), 5.50%, due 9/1/16 Aaa AAA 6,668 1,625 Skagit Co. Pub. Hosp. Dist. Ref. Rev., Ser. 2003, 6.00%, due 12/1/18 Baa2 1,776 2,500 Tacoma Wtr. Sys. Rev., Ser. 2001, (FGIC Insured), 5.13%, due 12/1/19 Aaa AAA 2,626 3,125 Washington St. Hlth. Care Fac. Au. Rev. (Yakima Valley Mem. Hosp. Assoc.), Ser. 2002, 5.00%, due 12/1/17 A 3,228(3) 1,000 Washington St. Var. Purp. G.O., Ser. 1999 A, 4.75%, due 7/1/17 Aa1 AA 1,009 --------- 35,804 --------- WISCONSIN (5.5%) 1,475 Badger Tobacco Asset Securitization Corp. Tobacco Settlement Asset-Backed Rev., Ser. 2002, 6.13%, due 6/1/27 Baa3 BBB 1,577 1,900 Univ. of Wisconsin Hosp. & Clinics Au. Hosp. Rev., Ser. 2002 B, 5.50%, due 4/1/12 A1 A+ 2,007 1,370 Wisconsin Hlth. & Ed. Fac. Au. Rev. (Aurora Med. Group, Inc. Proj.), Ser. 1996, (FSA Insured), 6.00%, due 11/15/11 Aaa AAA 1,489(3) 1,000 Wisconsin Hlth. & Ed. Fac. Au. Rev., (Franciscan Sisters Hlth. Care), Ser. 2007, 5.00%, due 9/1/14 BBB+ 1,037 7,205 Wisconsin St. G.O., Ser. 2002 C, (MBIA Insured), 5.25%, due 5/1/17 Pre-Refunded 5/1/12 Aaa AAA 7,666 2,780 Wisconsin St. Hlth. & Ed. Fac. Au. Rev. (Kenosha Hosp. & Med. Ctr., Inc. Proj.), Ser. 1999, 5.50%, due 5/15/15 A 2,887(3) --------- 16,663 --------- WYOMING (1.6%) 4,895 Wyoming Community Dev. Au. Hsg. Rev., Ser. 2006 6, 5.00%, due 12/1/21 Aa1 AA+ 5,039 --------- OTHER (1.6%) 2,000 MuniMae Subordinated Cumulative Perpetual Preferred Shares, 4.70%, due 6/30/49 Putable 9/30/09 Baa2 1,994(1) 3,000 Non-Profit Pfd. Fdg. Trust I, Ser. 2006 C, 4.72%, due 9/15/37 A2 2,960 --------- 4,954 --------- TOTAL INVESTMENTS (156.9%) (COST $466,220) 478,902## Cash, receivables and other assets, less liabilities (1.9%) 5,699 Liquidation Value of Auction Market Preferred Shares [(58.8%)] (179,400) --------- TOTAL NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS (100.0%) $ 305,201 ---------
See Notes to Schedule of Investments 19 SCHEDULE OF INVESTMENTS New York Intermediate Municipal Fund Inc.
PRINCIPAL AMOUNT SECURITY @ RATING VALUE + (000'S OMITTED) MOODY'S S&P (000'S OMITTED) ARIZONA (0.7%) $ 500 Verrado Comm. Fac. Dist. Number 1 G.O., Ser. 2003, 6.15%, due 7/15/17 $ 535^^ ------ CALIFORNIA (1.3%) 1,000 Santa Rosa Rancheria Tachi Yokut Tribe Enterprise Rev., Ser. 2003, 6.13%, due 3/1/13 1,026^^ ------ FLORIDA (0.6%) 500 Miami Beach Hlth. Fac. Au. Hosp. Ref. Rev. (Mount Sinai Med. Ctr. of Florida Proj.), Ser. 2004, 6.25%, due 11/15/09 Ba1 BB+ 524(3) ------ GEORGIA (1.3%) 1,000 De Kalb Co. Dev. Au. Ref. PCR (General Motors Corp. Proj.), Ser. 2002, 6.00%, due 3/15/21 Caa1 B- 1,024(3) ------ GUAM (0.7%) 500 Guam Gov't. Waterworks Au. Wtr. & Wastewater Sys. Rev., Ser. 2005, 5.50%, due 7/1/16 Ba2 534 ------ LOUISIANA (2.6%) 1,000 Morehouse Parish Ref. PCR (Int'l. Paper Co. Proj.), Ser. 2001 A, 5.25%, due 11/15/13 Baa3 BBB 1,054(3) 1,000 Tobacco Settlement Fin. Corp. Tobacco Settlement Asset-Backed Rev., Ser. 2001 B, 5.50%, due 5/15/30 Baa3 BBB 1,053 ------ 2,107 ------ NEW YORK (141.0%) 3,000 Albany IDA Civic Fac. Rev. (Charitable Leadership Foundation Ctr. for Med. Science Proj.), Ser. 2002 A, 6.00%, due 7/1/19 Ba2 3,167 500 Cattaraugus Co. IDA (St. Bonaventure Univ. Proj.), Ser. 2006 A, 5.00%, due 5/1/23 BBB- 512(3) 1,000 Dutchess Co. IDA Civic Fac. Ref. Rev. (Marist College Proj.), Ser. 2003 A, 5.15%, due 7/1/17 A3 1,050(3) 2,000 Dutchess Co. IDA Ind. Dev. Rev. (IBM Proj.), Ser. 1999, 5.45%, due 12/1/29 A1 A+ 2,070(3) 500 Essex Co. IDA Solid Waste Disp. Rev. (Int'l. Paper), Ser. 2005 A, 5.20%, due 12/1/23 Baa3 BBB 514(3) 2,000 Long Island Pwr. Au. Elec. Sys. Gen. Rev., Ser. 1998 A, 5.50%, due 12/1/13 Aaa AAA 2,212 1,265 Lyons Comm. Hlth. Initiatives Corp. Fac. Rev., Ser. 2004, 5.50%, due 9/1/14 A2 1,355 2,000 Metro. Trans. Au. Ref. Rev., Ser. 2002 A, (AMBAC Insured), 5.50%, due 11/15/15 Aaa AAA 2,179 1,000 Monroe Co. IDA Civic Fac. Rev. (Highland Hosp. Rochester), Ser. 2005, 5.00%, due 8/1/15 Baa1 BBB+ 1,052(3) 980 Monroe Co. IDA Std. Hsg. Rev. (Collegiate Hsg. Foundation - Rochester Institute of Technology Proj.), Ser. 1999 A, 5.25%, due 4/1/19 Baa3 1,003(3) 1,000 Monroe Co. Newpower Corp. Pwr. Fac. Rev., Ser. 2003, 5.10%, due 1/1/16 BBB 1,037 1,000 Monroe Co. Pub. Imp. Ref. G.O., Ser. 1996, 6.00%, due 3/1/13 Baa1 BBB+ 1,094 1,000 New York City G.O., Ser. 2002 A, 5.75%, due 8/1/16 A1 AA- 1,090 750 New York City G.O., Ser. 2002 C, 5.50%, due 8/1/15 A1 AA- 812 1,410 New York City Hlth. & Hosp. Corp. Rev., Ser. 2002 A, (FSA Insured), 5.50%, due 2/15/13 Aaa AAA 1,518 4,000 New York City Hsg. Dev. Corp. Multi-Family Hsg. Rev., Ser. 2002 E-2, 5.05%, due 11/1/23 Aa2 AA 4,123
20 NEUBERGER BERMAN APRIL 30, 2007 (UNAUDITED) SCHEDULE OF INVESTMENTS New York Intermediate Municipal Fund Inc.
PRINCIPAL AMOUNT SECURITY @ RATING VALUE + (000'S OMITTED) MOODY'S S&P (000'S OMITTED) $1,000 New York City IDA Civic Fac. Rev. (Lycee Francais de New York Proj.), Ser. 2002 A, 5.50%, due 6/1/15 A $1,053(3) 1,030 New York City IDA Civic Fac. Rev. (Lycee Francais de New York Proj.), Ser. 2002 A, 5.50%, due 6/1/17 A 1,081(3) 2,920 New York City IDA Civic Fac. Rev. (Packer Collegiate Institute Proj.), Ser. 2002, (AMBAC Insured), 5.00%, due 6/1/22 Aaa AAA 3,046(3) 750 New York City IDA Civic Fac. Rev. (Vaughn College of Aeronautics and Technology), Ser. 2006 A, 5.00%, due 12/1/21 BB+ 754(3) 1,000 New York City IDA Ind. Dev. Rev. (Brooklyn Navy Yard Cogeneration Partners, L.P. Proj.), Ser. 1997, 6.20%, due 10/1/22 Ba1 BBB- 1,094(3) 500 New York City IDA Ind. Dev. Rev. (Harlem Auto Mall Proj.), Ser. 2004, 5.13%, due 12/30/23 Caa1 B- 470(3) 750 New York City IDA Liberty Rev. (7 World Trade Center, LLC Proj.), Ser. 2005 A, 6.25%, due 3/1/15 796^^ 750 New York City IDA Spec. Fac. Rev. (American Airlines, Inc. J.F.K. Int'l. Arpt. Proj.), Ser. 2005, 7.50%, due 8/1/16 B 871(3) 2,000 New York City IDA Spec. Fac. Rev. (Term. One Group Assoc. Proj.), Ser. 2005, 5.50%, due 1/1/19 A3 BBB+ 2,172(3) 960 New York City Muni. Wtr. Fin. Au. Wtr. & Swr. Sys. Rev., Ser. 1992 A, (AMBAC Insured), 5.88%, due 6/15/13 Aaa AAA 1,076 4,000 New York City Muni. Wtr. Fin. Au. Wtr. & Swr. Sys. Rev., Ser. 2002 D, 5.25%, due 6/15/15 Aa2 AA+ 4,269 3,000 New York City Trans. Fin. Au. Ref. Rev., Ser. 2002 B, 5.25%, due 2/1/29 Aa1 AAA 3,152 2,025 New York City Trans. Fin. Au. Ref. Rev., Ser. 2002 C, (AMBAC Insured), 5.25%, due 8/1/17 Aaa AAA 2,168 800 New York Convention Ctr. Operating Corp. Cert. of Participation (Yale Bldg. Acquisition Proj.), Ser. 2003, 5.25%, due 6/1/08 Pre-Refunded 6/1/07 809^^ 85 New York G.O., Ser. 1998 J, 5.00%, due 8/1/11 Pre-Refunded 8/1/08 A1 AA- 87 915 New York G.O. Unrefunded Balance, Ser. 1998 J, 5.00%, due 8/1/11 A1 AA- 938 750 New York Liberty Dev. Corp. Rev. (Nat'l. Sports Museum Proj.), Ser. 2006 A, 6.13%, due 2/15/19 786^^ 2,000 New York St. Dorm. Au. Court Fac. Lease Rev. (New York City Issue), Ser. 2003 A, 5.50%, due 5/15/17 A2 A+ 2,196 2,000 New York St. Dorm. Au. Insured Rev. (Long Island Jewish Med. Ctr.), Ser. 1998, (MBIA Insured), 5.00%, due 7/1/18 Aaa AAA 2,045(3) 1,675 New York St. Dorm. Au. Insured Rev. (Long Island Univ.), Ser. 2003 A, 5.25%, due 9/1/15 Aa3 AA 1,756(3) 1,600 New York St. Dorm. Au. Insured Rev. (The Culinary Institute of America), Ser. 1999, (MBIA Insured), 5.38%, due 7/1/15 Aaa AAA 1,672(3) 3,000 New York St. Dorm. Au. Ref. Rev. (North Gen. Hosp. Proj.), Ser. 2003, 5.75%, due 2/15/17 AA- 3,273(3) 1,125 New York St. Dorm. Au. Rev. (City Univ. Sys. Proj.), Ser. 1995 A, 5.63%, due 7/1/16 A1 AA- 1,263 1,010 New York St. Dorm. Au. Rev. (Columbia Univ. Proj.), Ser. 2001 A, 5.25%, due 7/1/16 Pre-Refunded 7/1/11 Aaa AAA 1,082(3) 2,985 New York St. Dorm. Au. Rev. (Lenox Hill Hosp. Oblig. Group Proj.), Ser. 2001, 5.75%, due 7/1/14 Ba2 3,167(3) 2,000 New York St. Dorm. Au. Rev. (Lenox Hill Hosp. Oblig. Group Proj.), Ser. 2001, 5.75%, due 7/1/16 Ba2 2,120(3) 2,000 New York St. Dorm. Au. Rev. (Mount Sinai NYU Hlth.), Ser. 2000 C, 5.50%, due 7/1/26 Baa1 BBB 2,034(3)
See Notes to Schedule of Investments 21 SCHEDULE OF INVESTMENTS New York Intermediate Municipal Fund Inc.
PRINCIPAL AMOUNT SECURITY @ RATING VALUE + (000'S OMITTED) MOODY'S S&P (000'S OMITTED) $1,980 New York St. Dorm. Au. Rev. (New York Med. College Proj.), Ser. 1998, (MBIA Insured), 5.00%, due 7/1/21 Aaa AAA $ 2,026(3) 525 New York St. Dorm. Au. Rev. (New York Methodist Hosp.), Ser. 2004, 5.25%, due 7/1/18 A3 556 500 New York St. Dorm. Au. Rev. (North Shore-Long Island Jewish Oblig. Group), Ser. 2003, 5.00%, due 5/1/18 A3 518(3) 2,855 New York St. Dorm. Au. Rev. (Rivington House Hlth. Care Fac.), Ser. 2002, 5.25%, due 11/1/15 Aa1 3,039(3) 2,410 New York St. Dorm. Au. Rev. (Rochester Institute of Technology Proj.), Ser. 2002 A, (AMBAC Insured), 5.25%, due 7/1/19 Aaa 2,566(3) 3,000 New York St. Dorm. Au. Rev. (SS Joachim & Anne Residence Proj.), Ser. 2002, 4.60%, due 7/1/16 Aa3 3,023 1,000 New York St. Dorm. Au. Rev. Non. St. Supported Debt (NYU Hosp. Ctr.), Ser. 2006 A, 5.00%, due 7/1/20 Ba2 BB 1,041(3) 250 New York St. Dorm. Au. Rev. Secured Hosp. Ref. Rev. (Brookdale Hosp. Med. Ctr.), Ser. 1998 J, 5.20%, due 2/15/16 A1 AA- 256(3) 3,900 New York St. Dorm. Au. Rev. St. Personal Income Tax Rev., Ser. 2003 A, 5.38%, due 3/15/17 Aa3 AAA 4,252 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+ 5,003(3) 1,000 New York St. Env. Fac. Corp. Solid Waste Disp. Rev. (Waste Management, Inc. Proj.), Ser. 2004 A, 4.45%, due 7/1/17 Putable 7/1/09 BBB 1,003(3) 2,000 New York St. Mtge. Agcy. Homeowner Mtge. Rev., Ser. 1997-67, 5.70%, due 10/1/17 Aa1 2,037 2,000 New York St. Pwr. Au. Rev., Ser. 2002 A, 5.25%, due 11/15/16 Aa2 AA- 2,151 250 New York St. Urban Dev. Corp. Correctional & Youth Fac. Svc. Rev., Ser. 2002 C, 4.00%, due 1/1/20 A1 AA- 251 1,325 New York St. Urban Dev. Corp. Proj. Ref. Rev. (Ctr. for Ind. Innovation), Ser. 1995, 6.25%, due 1/1/09 A1 AA- 1,377 2,000 Niagara Co. IDA Civic Fac. Rev. (Niagara Univ. Proj.), Ser. 2001 A, 5.50%, due 11/1/16 AA 2,132(3) 2,500 Niagara Co. IDA Solid Waste Disp. Fac. Ref. Rev. (American Ref.- Fuel Co. of Niagara), Ser. 2001 C, 5.63%, due 11/15/24 Baa2 BB+ 2,632(3) 3,000 Port Authority of NY & NJ Rev., Ser. 2002, (AMBAC Insured), 5.50%, due 12/15/12 Aaa AAA 3,254 3,000 Triborough Bridge & Tunnel Au. Gen Purp. Ref. Rev., Ser. 2002 B, 5.25%, due 11/15/18 Aa2 AA- 3,212 1,535 Ulster Co. Res. Rec. Agcy. Solid Waste Sys. Ref. Rev., Ser. 2002, (AMBAC Insured), 5.25%, due 3/1/16 Aaa AAA 1,650 500 United Nations Dev. Corp. Sr. Lien. Ref. Rev., Ser. 2004 A, 5.25%, due 7/1/17 A3 505 1,000 Westchester Co. IDA Continuing Care Retirement Comm. Rev. (Kendal on Hudson Proj.), Ser. 2003 B, 5.70%, due 1/1/34 1,029(3)^^ 1,000 Yonkers IDA Civic Fac. Rev. (Comm. Dev. Properties-Yonkers, Inc.), Ser. 2001 A, 6.25%, due 2/1/16 Pre-Refunded 2/1/11 Baa3 1,070(3) -------- 114,601 -------- OHIO (0.6%) 500 Coshocton Co. Env. Imp. Ref. Rev. (Smurfit-Stone Container Enterprises, Inc. Proj.), Ser. 2005, 5.13%, due 8/1/13 CCC+ 502(1)(3) -------- PENNSYLVANIA (2.1%) 1,590 Cumberland Co. 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 1,685(3) --------
22 NEUBERGER BERMAN APRIL 30, 2007 (UNAUDITED) SCHEDULE OF INVESTMENTS New York Intermediate Municipal Fund Inc.
PRINCIPAL AMOUNT SECURITY @ RATING VALUE + (000'S OMITTED) MOODY'S S&P (000'S OMITTED) PUERTO RICO (2.5%) $ 895 Puerto Rico Children's Trust Tobacco Settlement Asset-Backed Rev., Ser. 2002, 5.38%, due 5/15/33 Baa3 BBB $ 934 1,060 Puerto Rico Ind. Tourist Ed. Med. & Env. Ctrl. Fac. Rev. (Polytechnic Univ. of Puerto Rico Proj.), Ser. 2002 A, (ACA Insured), 5.25%, due 8/1/16 A 1,114(3) -------- 2,048 -------- TEXAS (2.5%) 800 Brazos River Au. Ref. PCR (TXU Energy Co. LLC Proj.), Ser. 2003 A, 6.75%, due 4/1/38 Putable 4/1/13 Baa2 BB 867(3) 750 Brazos River Au. Ref. Rev. (Reliant Energy, Inc. Proj.), Ser. 1999 B, 7.75%, due 12/1/18 Ba1 BBB- 794(3) 400 Dallas-Fort Worth Int'l. Arpt. Fac. Imp. Corp. Rev., Ser. 2004 A-1, 6.15%, due 1/1/16 Ba2 404(3) -------- 2,065 -------- VIRGIN ISLANDS (1.3%) 250 Virgin Islands Pub. Fin. Au. Refinery Fac. Rev. (HOVENSA Refinery), Ser. 2003, 6.13%, due 7/1/22 Baa3 BBB 277 750 Virgin Islands Pub. Fin. Au. Rev. (Virgin Islands Matching Fund Loan Notes), Ser. 1998 E, 6.00%, due 10/1/22 779^^ -------- 1,056 -------- TOTAL INVESTMENTS (157.2%) (COST $125,004) 127,707## Cash, receivables and other assets, less liabilities (2.2%) 1,791 Liquidation Value of Auction Market Preferred Shares [(59.4%)] (48,250) -------- TOTAL NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS (100.0%) $ 81,248 --------
See Notes to Schedule of Investments 23 NOTES TO SCHEDULE OF INVESTMENTS + Investments in securities by 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", and collectively, the "Funds") 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, bid prices are obtained from principal market makers in those securities or, if quotations are not readily available, by methods each Fund's Board of Directors has approved on the belief that they reflect fair value. Numerous factors may be considered when determining the fair value of a security, including available analyst, media or other reports, trading in futures or ADRs and whether the issuer of the security being fair valued has other securities outstanding. Short-term debt securities with less than 60 days until maturity may be valued at cost which, when combined with interest earned, approximates market value. ## At April 30, 2007, selected Fund information on a U.S. federal income tax basis was as follows: GROSS GROSS NET (000'S OMITTED) UNREALIZED UNREALIZED UNREALIZED NEUBERGER BERMAN COST APPRECIATION DEPRECIATION APPRECIATION CALIFORNIA $153,105 $ 4,332 $ 17 $ 4,315 INTERMEDIATE 466,220 12,927 245 12,682 NEW YORK 125,004 2,951 248 2,703 @ At time of investment, municipal securities purchased 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 80%, 70%, and 60% 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. (3) Security is guaranteed by the corporate or non-profit obligor. (1) Restricted security subject to restrictions on resale under federal securities laws. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers under Rule 144A and have been deemed by the investment manager to be liquid. At April 30, 2007, these securities amounted to $502,000 or 0.5% of net assets applicable to common shareholders for California, $5,460,000 or 1.8% of net assets applicable to common shareholders for Intermediate and $502,000 or 0.6% of net assets applicable to common shareholders for New York. ^^ Not rated by a NRSRO. (4) All or a portion of this security was purchased on a when-issued basis. At April 30, 2007, these securities amounted to $1,044,000 or 0.3% of net assets applicable to common shareholders for Intermediate. (5) All or a portion of this security is segregated as collateral for when-issued purchase commitments. (6) Floating rate securities are securities whose yields vary with a designated market index or market rate. These securities are shown at their current rates as of April 30, 2007. +/- Rated BBB by Fitch Investor Services, Inc. See Notes to Financial Statements 24 This page has been left blank intentionally 25 NEUBERGER BERMAN APRIL 30, 2007 (UNAUDITED) STATEMENTS OF ASSETS AND LIABILITIES
CALIFORNIA INTERMEDIATE NEW YORK NEUBERGER BERMAN INTERMEDIATE MUNICIPAL CLOSED-END FUNDS INTERMEDIATE MUNICIPAL INTERMEDIATE (000'S OMITTED EXCEPT PER SHARE AMOUNTS) MUNICIPAL FUND FUND MUNICIPAL FUND ASSETS INVESTMENTS IN SECURITIES, AT MARKET VALUE* (NOTE A)--SEE SCHEDULE OF INVESTMENTS $157,420 $478,902 $127,707 ---------------------------------------------------------------------------------------------------------------------- Cash 15 41 87 ---------------------------------------------------------------------------------------------------------------------- Interest receivable 2,511 8,110 2,110 ---------------------------------------------------------------------------------------------------------------------- Prepaid expenses and other assets 16 36 15 ====================================================================================================================== TOTAL ASSETS 159,962 487,089 129,919 ====================================================================================================================== LIABILITIES Distributions payable--preferred shares 51 114 31 ---------------------------------------------------------------------------------------------------------------------- Distributions payable--common shares 398 1,157 317 ---------------------------------------------------------------------------------------------------------------------- Payable for securities purchased -- 1,045 -- ---------------------------------------------------------------------------------------------------------------------- Payable to administrator (Note B) 39 120 32 ---------------------------------------------------------------------------------------------------------------------- Accrued expenses and other payables 42 52 41 ====================================================================================================================== TOTAL LIABILITIES 530 2,488 421 ====================================================================================================================== AUCTION MARKET PREFERRED SHARES SERIES A & B AT LIQUIDATION VALUE 3,000, 8,000 and 3,000 shares authorized; and 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 $100,432 $305,201 $ 81,248 ====================================================================================================================== NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS CONSIST OF: Paid-in capital-common shares $ 96,347 $293,853 $ 79,175 ---------------------------------------------------------------------------------------------------------------------- Undistributed net investment income (loss) 64 -- -- ---------------------------------------------------------------------------------------------------------------------- Distributions in excess of net investment income -- (398) (81) ---------------------------------------------------------------------------------------------------------------------- Accumulated net realized gains (losses) on investments (294) (936) (549) ---------------------------------------------------------------------------------------------------------------------- Net unrealized appreciation (depreciation) in value of investments 4,315 12,682 2,703 ====================================================================================================================== NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS AT VALUE $100,432 $305,201 $ 81,248 ====================================================================================================================== COMMON SHARES OUTSTANDING ($.0001 par value; 999,997,000, 999,992,000 and 999,997,000 shares authorized for California, Intermediate and New York, respectively) 6,792 20,705 5,582 ====================================================================================================================== NET ASSET VALUE PER COMMON SHARE OUTSTANDING $ 14.79 $ 14.74 $ 14.55 ====================================================================================================================== *COST OF INVESTMENTS: $153,105 $466,220 $125,004 ======================================================================================================================
See Notes to Financial Statements 26 NEUBERGER BERMAN FOR THE SIX MONTHS ENDED APRIL 30, 2007 (UNAUDITED) STATEMENTS OF OPERATIONS
CALIFORNIA INTERMEDIATE NEW YORK NEUBERGER BERMAN INTERMEDIATE MUNICIPAL CLOSED-END FUNDS INTERMEDIATE MUNICIPAL INTERMEDIATE (000's OMITTED) MUNICIPAL FUND FUND MUNICIPAL FUND INVESTMENT INCOME INCOME (NOTE A): Interest income $ 3,658 $11,324 $3,062 ============================================================================================================================== EXPENSES: Investment management fees (Notes A & B) 199 603 161 ------------------------------------------------------------------------------------------------------------------------------ Administration fees (Note B) 239 724 193 ------------------------------------------------------------------------------------------------------------------------------ Stock transfer agent fees 17 17 17 ------------------------------------------------------------------------------------------------------------------------------ Auction agent fees (Note B) 74 226 61 ------------------------------------------------------------------------------------------------------------------------------ Audit fees 23 23 23 ------------------------------------------------------------------------------------------------------------------------------ Basic maintenance expense (Note B) 12 12 12 ------------------------------------------------------------------------------------------------------------------------------ Custodian fees (Note B) 43 75 36 ------------------------------------------------------------------------------------------------------------------------------ Insurance expense 3 10 2 ------------------------------------------------------------------------------------------------------------------------------ Legal fees 15 31 14 ------------------------------------------------------------------------------------------------------------------------------ Shareholder reports 11 26 10 ------------------------------------------------------------------------------------------------------------------------------ Stock exchange listing fees 1 3 1 ------------------------------------------------------------------------------------------------------------------------------ Directors' fees and expenses 11 11 11 ------------------------------------------------------------------------------------------------------------------------------ Miscellaneous 15 15 14 ============================================================================================================================== Total expenses 663 1,776 555 Investment management fees waived (Note B) (199) (603) (161) ------------------------------------------------------------------------------------------------------------------------------ Expenses reduced by custodian fee expense offset arrangement (Note B) (1) (1) (1) ============================================================================================================================== Total net expenses 463 1,172 393 ============================================================================================================================== Net investment income 3,195 10,152 2,669 ============================================================================================================================== REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS (NOTE A) Net realized gain (loss) on: ------------------------------------------------------------------------------------------------------------------------------ Sales of investment securities of unaffiliated issuers 5 (39) -- --------------------------------------------------------------------------------------------------------------------------- Change in net unrealized appreciation (depreciation) in value of: ------------------------------------------------------------------------------------------------------------------------------ Unaffiliated investment securities (1,274) (3,416) (699) =========================================================================================================================== Net gain (loss) on investments (1,269) (3,455) (699) ============================================================================================================================== Distributions to Preferred Shareholders (990) (3,230) (813) ------------------------------------------------------------------------------------------------------------------------------ NET INCREASE (DECREASE) IN NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS RESULTING FROM OPERATIONS $ 936 $ 3,467 $1,157 ==============================================================================================================================
See Notes to Financial Statements 27 STATEMENTS OF CHANGES IN NET ASSETS
CALIFORNIA INTERMEDIATE MUNICIPAL FUND ------------------------- SIX MONTHS ENDED YEAR APRIL 30, ENDED NEUBERGER BERMAN INTERMEDIATE MUNICIPAL CLOSED-END FUNDS 2007 OCTOBER 31, (000's OMITTED) (UNAUDITED) 2006 INCREASE (DECREASE) IN NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS: FROM OPERATIONS: Net investment income (loss) $ 3,195 $ 6,368 ------------------------------------------------------------------------------------------------------------------ Net realized gain (loss) on investments 5 49 ------------------------------------------------------------------------------------------------------------------ Change in net unrealized appreciation (depreciation) of investments (1,274) 2,518 ------------------------------------------------------------------------------------------------------------------ DISTRIBUTIONS TO PREFERRED SHAREHOLDERS FROM (NOTE A): Net investment income (990) (1,867) ================================================================================================================== Net increase (decrease) in net assets applicable to common shareholders resulting from operations 936 7,068 ================================================================================================================== DISTRIBUTIONS TO COMMON SHAREHOLDERS FROM (NOTE A): Net investment income (2,387) (4,882) ================================================================================================================== FROM CAPITAL SHARE TRANSACTIONS: Proceeds from reinvestment of dividends -- -- ================================================================================================================== Total net proceeds from capital share transactions -- -- ================================================================================================================== NET INCREASE (DECREASE) IN NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS (1,451) 2,186 NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS: Beginning of period 101,883 99,697 ================================================================================================================== End of period $100,432 $101,883 ================================================================================================================== Undistributed net investment income (loss) at end of period $ 64 $ 246 ================================================================================================================== Distributions in excess of net investment income at end of period $ -- $ -- ==================================================================================================================
See Notes to Financial Statements 28 NEUBERGER BERMAN APRIL 30, 2007 (UNAUDITED)
INTERMEDIATE NEW YORK INTERMEDIATE MUNICIPAL FUND MUNICIPAL FUND ------------------------------------------------------ SIX MONTHS SIX MONTHS ENDED YEAR ENDED YEAR APRIL 30, ENDED APRIL 30, ENDED NEUBERGER BERMAN INTERMEDIATE MUNICIPAL CLOSED-END FUNDS 2007 OCTOBER 31, 2007 OCTOBER 31, (000's OMITTED) (UNAUDITED) 2006 (UNAUDITED) 2006 INCREASE (DECREASE) IN NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS: FROM OPERATIONS: Net investment income (loss) $ 10,152 $ 20,112 $ 2,669 $ 5,325 -------------------------------------------------------------------------------------------------------------------------------- Net realized gain (loss) on investments (39) 247 -- 47 -------------------------------------------------------------------------------------------------------------------------------- Change in net unrealized appreciation (depreciation) of investments (3,416) 5,912 (699) 1,559 -------------------------------------------------------------------------------------------------------------------------------- DISTRIBUTIONS TO PREFERRED SHAREHOLDERS FROM (NOTE A): Net investment income (3,230) (5,952) (813) (1,533) ================================================================================================================================ Net increase (decrease) in net assets applicable to common shareholders resulting from operations 3,467 20,319 1,157 5,398 ================================================================================================================================ DISTRIBUTIONS TO COMMON SHAREHOLDERS FROM (NOTE A): Net investment income (6,947) (15,502) (1,904) (4,167) ================================================================================================================================ FROM CAPITAL SHARE TRANSACTIONS: Proceeds from reinvestment of dividends -- -- 56 56 ================================================================================================================================ Total net proceeds from capital share transactions -- -- 56 56 ================================================================================================================================ NET INCREASE (DECREASE) IN NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS (3,480) 4,817 (691) 1,287 NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS: Beginning of period 308,681 303,864 81,939 80,652 ================================================================================================================================ End of period $305,201 $308,681 $81,248 $81,939 ================================================================================================================================ Undistributed net investment income (loss) at end of period $ -- $ -- $ -- $ -- ================================================================================================================================ Distributions in excess of net investment income at end of period $ (398) $ (373) $ (81) $ (33) ================================================================================================================================
29 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" and, collectively, the "Funds") were organized as Maryland corporations on July 29, 2002. California and New York are registered as non-diversified, closed-end management investment companies and Intermediate is registered as a diversified, closed-end management investment company under the Investment Company Act of 1940, as amended. Each Fund's Board of Directors may classify or re-classify any unissued shares of capital stock into one or more classes of preferred stock without the approval of shareholders. The 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 U.S. generally accepted accounting principles 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 trade date for financial reporting purposes. Interest income, including accretion of discount (adjusted for original issue discount, where applicable) and amortization of premium, where applicable, is recorded on the accrual basis. Realized gains and losses from securities transactions are recorded on the basis of identified cost and stated in the Statements of Operations. 4 INCOME TAX INFORMATION: Each Fund is treated as a separate entity 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 requirements of Subchapter M of the Internal Revenue Code applicable to regulated investment companies and to distribute substantially all of its earnings to its shareholders. Therefore, no federal income or excise tax provision is required. Income distributions and capital gain distributions are determined in accordance with income tax regulations, which may differ from U.S. generally accepted accounting principles. These differences are primarily due to differing treatments of income and gains on various investment securities held by each Fund, timing differences and differing characterization of distributions made by each Fund as a whole. As determined on October 31, 2006, there were no permanent differences resulting from different book and tax accounting reclassified at fiscal year-end. 30 NEUBERGER BERMAN APRIL 30, 2007 (UNAUDITED) The tax character of distributions paid during the years ended October 31, 2006 and October 31, 2005 were as follows:
DISTRIBUTIONS PAID FROM: TAX-EXEMPT INCOME ORDINARY INCOME TOTAL 2006 2005 2006 2005 2006 2005 CALIFORNIA $ 6,741,577 $ 6,020,445 $ 6,567 $ 2,558 $ 6,748,144 $ 6,023,003 INTERMEDIATE 21,418,996 19,596,581 35,155 37,644 21,454,151 19,634,225 NEW YORK 5,696,502 5,108,368 4,389 2,708 5,700,891 5,111,076
As of October 31, 2006, the components of distributable earnings (accumulated losses) on a U.S federal income tax basis were as follows:
UNDISTRIBUTED UNDISTRIBUTED UNDISTRIBUTED UNREALIZED LOSS TAX-EXEMPT ORDINARY LONG-TERM APPRECIATION CARRYFORWARDS INCOME INCOME GAIN (DEPRECIATION) AND DEFERRALS TOTAL CALIFORNIA $ 736,945 $-- $-- $ 5,589,041 $(299,384) $ 6,026,602 INTERMEDIATE 1,133,845 -- -- 16,096,935 (897,147) 16,333,633 NEW YORK 373,890 -- -- 3,402,826 (548,941) 3,227,775
The differences between book basis and tax basis distributable earnings is attributable primarily to timing differences of distribution payments. To the extent each Fund's net realized capital gains, if any, can be offset by capital loss carryforwards, it is the policy of each Fund not to distribute such gains. As determined at October 31, 2006, the Funds had unused capital loss carryforwards available for federal income tax purposes to offset net realized capital gains, if any, as follows:
EXPIRING IN: EXPIRING IN: EXPIRING IN: 2011 2012 2013 CALIFORNIA $ 21,173 $273,734 $ 4,477 INTERMEDIATE 509,968 328,363 58,816 NEW YORK 373,467 156,636 18,838
5 DISTRIBUTIONS TO SHAREHOLDERS: Each Fund earns income, net of expenses, daily on its investments. It is the policy of each Fund to declare quarterly and pay monthly distributions. Distributions from net realized capital gains, if any, are normally distributed in December. Distributions to common shareholders are recorded on the ex-date. Distributions to preferred shareholders are accrued and determined as described in Note A-7. Subsequent to April 30, 2007, each Fund declared three monthly distributions to common shareholders payable June 15, 2007, July 16, 2007 and August 15, 2007 to shareholders of record on May 31, 2007, June 29, 2007 and July 31, 2007, with ex-dates of May 29, 2007, June 27, 2007 and July 27, 2007, as follows:
DISTRIBUTION PER SHARE CALIFORNIA $0.058565 INTERMEDIATE $0.055894 NEW YORK $0.056840
31 NOTES TO FINANCIAL STATEMENTS Intermediate Municipal Closed-End Funds cont'd 6 EXPENSE ALLOCATION: Certain expenses are applicable to multiple funds. Expenses directly attributable to a Fund are charged to that Fund. Expenses borne by the complex of related investment companies, which includes open-end and closed-end investment companies for which Management serves as investment manager, that are not directly attributed to a Fund are allocated among the Funds and the other investment companies in the complex or series thereof on the basis of relative net assets, except where a more appropriate allocation of expenses to each investment company in the complex or series thereof can otherwise be made fairly. 7 REDEEMABLE PREFERRED SHARES: On October 21, 2002, the Funds re-classified unissued shares of capital stock into several series of Auction Market Preferred Shares ("AMPS"), as follows:
SERIES A SHARES SERIES B SHARES CALIFORNIA 1,500 1,500 INTERMEDIATE 4,000 4,000 NEW YORK 1,500 1,500
On December 13, 2002, the Funds issued several series of AMPS, as follows:
SERIES A SHARES SERIES B SHARES CALIFORNIA 1,180 1,180 INTERMEDIATE 3,588 3,588 NEW YORK 965 965
All shares of each series of AMPS have a liquidation preference of $25,000 per share plus any accumulated unpaid distributions, whether or not earned or declared by the Fund, but excluding interest thereon ("Liquidation Value"). Distributions to AMPS shareholders, which are cumulative, are accrued daily. It is the policy of each Fund to pay distributions every 7 days for each Fund's AMPS Series A and every 28 days for each Fund's AMPS Series B, unless in a special rate period. In the absence of a special rate period, distribution rates are reset every 7 days for each Fund's AMPS Series A, based on the results of an auction. For the six months ended April 30, 2007, distribution rates ranged from:
DISTRIBUTION RATE CALIFORNIA 2.75% - 4.00% INTERMEDIATE 3.34% - 4.05% NEW YORK 3.00% - 3.60%
In the absence of a special rate period, distribution rates are reset every 28 days for each Fund's AMPS Series B, based on the results of an auction. For the six months ended April 30, 2007, distribution rates ranged from:
DISTRIBUTION RATE CALIFORNIA 3.35% - 3.70% INTERMEDIATE 3.50% - 3.85% NEW YORK 3.25% - 4.00%
32 NEUBERGER BERMAN APRIL 30, 2007 (UNAUDITED) The Funds declared distributions to AMPS shareholders for the period May 1, 2007 to May 31, 2007 for each series of the AMPS as follows:
SERIES A SHARES SERIES B SHARES CALIFORNIA $ 87,526 $ 93,431 INTERMEDIATE 292,653 294,128 NEW YORK 72,204 75,944
The Funds may redeem shares of each series of AMPS, in whole or in part, on the second business day preceding any distribution 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 will vote with holders of common shares as a single class, except that the AMPS will vote separately as a class on certain matters, as required by law or a Fund's charter. The holders of a Fund's AMPS, voting as a separate class, are entitled at all times to elect two Directors of the Fund, and to elect a majority of the Directors of a Fund if the Fund fails to pay distributions on AMPS for two consecutive years. 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. California and New York normally invest substantially all of their assets in municipal bonds of issuers located in the state of California and the state of New York, respectively. The value of the Funds' securities are 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. 9 INDEMNIFICATIONS: Like many other companies, the Funds' organizational documents provide that their officers and directors are indemnified against certain liabilities arising out of the performance of their duties to the Funds. In addition, both in some of their principal service contracts and in the normal course of their business, the Funds enter into contracts that provide indemnifications to other parties for certain types of losses or liabilities. Each Fund's maximum exposure under these arrangements is unknown as this could involve future claims against each Fund. 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. 33 NOTES TO FINANCIAL STATEMENTS Intermediate Municipal Closed-End Funds cont'd 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 ---------------------------------- 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, 2007, such waived fees amounted to $198,686, $603,494, and $161,163 for California, Intermediate, and New York, respectively. Each Fund retains Management as its administrator under an Administration Agreement. Each Fund pays Management an administration fee at the annual rate of 0.30% of its average daily Managed Assets under this agreement. Additionally, Management retains State Street Bank and Trust Company ("State Street") as its sub-administrator under a Sub-Administration Agreement. Management pays State Street a fee for all services received under the agreement. Management and Neuberger Berman, LLC ("Neuberger"), a member firm of the New York Stock Exchange and sub-adviser to each Fund, are wholly-owned subsidiaries of Lehman Brothers Holdings Inc., a publicly-owned holding 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. For the six months ended April 30, 2007, the impact of this arrangement was a reduction of expenses of $1,055, $1,270, and $1,260 for California, Intermediate, and New York, respectively. In connection with the settlement of each AMPS auction, each Fund pays, through the auction agent, a service fee to each participating broker-dealer based upon the aggregate liquidation preference of the AMPS held by the broker-dealer's customers. For any auction preceding a rate period of less than one year, the service fee is paid at the annual rate of 1/4 of 1%; for any auction preceding a rate period of one year or more, the service fee is paid at a rate agreed to by each Fund and the broker-dealer. In order to satisfy rating agencies' requirements, each Fund is required to provide each rating agency a report on a monthly basis verifying that each Fund is maintaining eligible assets having a discounted value equal to or greater than the Preferred Shares Basic Maintenance Amount, which is a minimum level set by each rating agency as one of the conditions to maintain the AAA/Aaa rating on the AMPS. "Discounted value" refers to the fact that the rating agencies require each Fund, in performing this calculation, to discount portfolio securities below their face value, at rates determined by the rating agencies. Each Fund pays a fee to State Street for the preparation of this report which is reflected in the Statements of Operations under the caption "Basic maintenance expense." 34 NEUBERGER BERMAN APRIL 30, 2007 (UNAUDITED) NOTE C--SECURITIES TRANSACTIONS: For the six months ended April 30, 2007, there were purchase and sale transactions (excluding short-term securities) as follows:
(000'S OMITTED) PURCHASES SALES CALIFORNIA $1,000 $ 435 INTERMEDIATE 2,514 4,135 NEW YORK 755 --
NOTE D--CAPITAL : At April 30, 2007, the common shares outstanding and the common shares of each Fund owned by Neuberger were as follows:
COMMON SHARES COMMON SHARES OWNED OUTSTANDING BY NEUBERGER CALIFORNIA 6,791,981 6,981 INTERMEDIATE 20,705,124 6,981 NEW YORK 5,582,218 6,981
Transactions in common shares for the six months ended April 30, 2007 and the year ended October 31, 2006, were as follows:
REINVESTMENT OF DIVIDENDS NET INCREASE IN COMMON AND DISTRIBUTIONS SHARES OUTSTANDING 2007 2006 2007 2006 CALIFORNIA -- -- -- -- INTERMEDIATE -- -- -- -- NEW YORK 3,816 3,852 3,816 3,852
NOTE E--RECENT ACCOUNTING PRONOUNCEMENTS: On July 13, 2006, the Financial Accounting Standards Board ("FASB") released FASB Interpretation No. 48 "Accounting for Uncertainty in Income Taxes" ("FIN 48"). FIN 48 provides guidance for how uncertain tax positions should be recognized, measured, presented and disclosed in the financial statements. FIN 48 clarifies the accounting for income taxes, by prescribing a minimum recognition threshold a tax position is required to meet before being recognized in the financial statements. FIN 48 requires that a "more-likely-than-not" threshold be met before the benefit of a tax position may be recognized in the financial statements and prescribes how such benefit should be measured. Adoption of FIN 48 is required for fiscal years beginning after December 15, 2006 and is to be applied to all open tax years as of the effective date. The Securities and Exchange Commission has permitted investment companies to delay implementation of FIN 48. Each Fund will have until April 30, 2008 to implement FIN 48. At this time, Management is evaluating the implications of FIN 48 and its impact in the financial statements has not yet been determined. In September 2006, FASB issued FASB Statement No. 157, "Fair Value Measurement" ("SFAS 157"), which defines fair value, establishes a framework for measuring fair value, and expands disclosures about 35 NOTES TO FINANCIAL STATEMENTS Intermediate Municipal Closed-End Funds cont'd fair value measurements. SFAS 157 is effective for fiscal years beginning after November 15, 2007, and interim periods within those fiscal years. Management believes the adoption of SFAS 157 will not have a material impact on the Funds' financial positions or results of operations. NOTE F--UNAUDITED FINANCIAL INFORMATION: The financial information included in this interim report is taken from the records of each Fund without audit by an independent registered public accounting firm. Annual reports contain audited financial statements. 36 NEUBERGER BERMAN APRIL 30, 2007 (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, YEAR ENDED OCTOBER 31, TO OCTOBER 31, ---------------- ------------------------------------- ------------------- 2007 2006 2005 2004 2003 2002 (UNAUDITED) COMMON SHARE NET ASSET VALUE, BEGINNING OF PERIOD $ 15.00 $ 14.68 $ 15.06 $ 14.36 $ 14.31 $14.32 ------- ------- ------- ------- ------- ------ INCOME FROM INVESTMENT OPERATIONS APPLICABLE TO COMMON SHAREHOLDERS: NET INVESTMENT INCOME (LOSS)! .47 .94 .91 .91 .85 .02 NET GAINS OR LOSSES ON SECURITIES (BOTH REALIZED AND UNREALIZED) (.18) .37 (.40) .67 .14 -- COMMON SHARE EQUIVALENT OF DISTRIBUTIONS TO PREFERRED SHAREHOLDERS FROM: NET INVESTMENT INCOME! (.15) (.27) (.14) (.13) (.08) -- ------- ------- ------- ------- ------- ------ TOTAL FROM INVESTMENT OPERATIONS APPLICABLE TO COMMON SHAREHOLDERS .14 1.04 .37 1.45 .91 .02 ------- ------- ------- ------- ------- ------ LESS DISTRIBUTIONS TO COMMON SHAREHOLDERS FROM: NET INVESTMENT INCOME (.35) (.72) (.75) (.75) (.75) -- ------- ------- ------- ------- ------- ------ LESS CAPITAL CHARGES FROM: ISSUANCE OF COMMON SHARES -- -- -- -- -- (.03) ISSUANCE OF PREFERRED SHARES -- -- -- -- (.11) -- ------- ------- ------- ------- ------- ------ TOTAL CAPITAL CHARGES -- -- -- -- (.11) (.03) ------- ------- ------- ------- ------- ------ COMMON SHARE NET ASSET VALUE, END OF PERIOD $ 14.79 $ 15.00 $ 14.68 $ 15.06 $ 14.36 $14.31 ------- ------- ------- ------- ------- ------ COMMON SHARE MARKET VALUE, END OF PERIOD $ 14.62 $ 14.65 $ 13.75 $ 13.47 $ 13.00 $15.00 ------- ------- ------- ------- ------- ------ TOTAL RETURN, COMMON SHARE NET ASSET VALUE+ +0.98%** +7.51% +2.96% +10.97% +6.02% -0.10%** TOTAL RETURN, COMMON SHARE MARKET VALUE+ +2.21%** +12.10% +7.82% +9.63% -8.44% +0.00%** RATIOS/SUPPLEMENTAL DATA++ NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS, END OF PERIOD (IN MILLIONS) $ 100.4 $ 101.9 $ 99.7 $ 102.3 $ 97.5 $ 94.5 PREFERRED SHARES, AT LIQUIDATION VALUE ($25,000 PER SHARE LIQUIDATION PREFERENCE) (IN MILLIONS) $ 59.0 $ 59.0 $ 59.0 $ 59.0 $ 59.0 $ -- RATIO OF GROSS EXPENSES TO AVERAGE NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS# .92%* .93% .96% .96% .88% .84%* RATIO OF NET EXPENSES TO AVERAGE NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS~ .92%* .93% .96% .96% .88% .83%* RATIO OF NET INVESTMENT INCOME (LOSS) EXCLUDING PREFERRED SHARE DISTRIBUTIONS TO AVERAGE NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS 6.36%* 6.36% 6.08% 6.24% 5.88% 1.10%* RATIO OF PREFERRED SHARE DISTRIBUTIONS TO AVERAGE NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS 1.97%* 1.86% .91% .86% .56% --% RATIO OF NET INVESTMENT INCOME (LOSS) INCLUDING PREFERRED SHARE DISTRIBUTIONS TO AVERAGE NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS 4.39%* 4.50% 5.17% 5.38% 5.32% 1.10%* PORTFOLIO TURNOVER RATE 0%** 3% 3% 3% 9% 0%** ASSET COVERAGE PER PREFERRED SHARE, END OF PERIOD@ $67,577 $68,208 $67,273 $68,383 $66,332 $ --
See Notes to Financial Highlights 37 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, YEAR ENDED OCTOBER 31, TO OCTOBER 31, ---------------- ------------------------------------- ------------------- 2007 2006 2005 2004 2003 2002 (UNAUDITED) COMMON SHARE NET ASSET VALUE, BEGINNING OF PERIOD $ 14.91 $ 14.68 $ 15.11 $ 14.44 $ 14.30 $14.32 ------- ------- ------- ------- ------- ------ INCOME FROM INVESTMENT OPERATIONS APPLICABLE TO COMMON SHAREHOLDERS: NET INVESTMENT INCOME (LOSS)! .49 .97 .95 .94 .88 .01 NET GAINS OR LOSSES ON SECURITIES (BOTH REALIZED AND UNREALIZED) (.16) .30 (.43) .65 .25 -- COMMON SHARE EQUIVALENT OF DISTRIBUTIONS TO PREFERRED SHAREHOLDERS FROM: NET INVESTMENT INCOME! (.16) (.29) (.15) (.12) (.09) -- ------- ------- ------- ------- ------- ------ TOTAL FROM INVESTMENT OPERATIONS APPLICABLE TO COMMON SHAREHOLDERS .17 .98 .37 1.47 1.04 .01 ------- ------- ------- ------- ------- ------ LESS DISTRIBUTIONS TO COMMON SHAREHOLDERS FROM: NET INVESTMENT INCOME (.34) (.75) (.80) (.80) (.80) -- ------- ------- ------- ------- ------- ------ LESS CAPITAL CHARGES FROM: ISSUANCE OF COMMON SHARES -- -- -- -- -- (.03) ISSUANCE OF PREFERRED SHARES -- -- -- -- (.10) -- ------- ------- ------- ------- ------- ------ TOTAL CAPITAL CHARGES -- -- -- -- (.10) (.03) ------- ------- ------- ------- ------- ------ COMMON SHARE NET ASSET VALUE, END OF PERIOD $ 14.74 $ 14.91 $ 14.68 $ 15.11 $ 14.44 $14.30 ------- ------- ------- ------- ------- ------ COMMON SHARE MARKET VALUE, END OF PERIOD $ 13.90 $ 14.22 $ 13.62 $ 13.70 $ 13.33 $15.00 ------- ------- ------- ------- ------- ------ TOTAL RETURN, COMMON SHARE NET ASSET VALUE+ +1.26%** +7.22% +2.93% +10.91% +6.88% -0.17%** TOTAL RETURN, COMMON SHARE MARKET VALUE+ +0.12%** +10.22% +5.32% +8.94% -5.94% +0.00%** RATIOS/SUPPLEMENTAL DATA++ NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS, END OF PERIOD (IN MILLIONS) $ 305.2 $ 308.7 $ 303.9 $ 312.8 $ 299.1 $293.3 PREFERRED SHARES, AT LIQUIDATION VALUE ($25,000 PER SHARE LIQUIDATION PREFERENCE) (IN MILLIONS) $ 179.4 $ 179.4 $ 179.4 $ 179.4 $ 179.4 $ -- RATIO OF GROSS EXPENSES TO AVERAGE NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS# .77%* .78% .80% .82% .74% .51%* RATIO OF NET EXPENSES TO AVERAGE NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS~ .77%* .78% .80% .82% .74% .51%* RATIO OF NET INVESTMENT INCOME (LOSS) EXCLUDING PREFERRED SHARE DISTRIBUTIONS TO AVERAGE NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS 6.66%* 6.61% 6.33% 6.40% 6.08% 1.62%* RATIO OF PREFERRED SHARE DISTRIBUTIONS TO AVERAGE NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS 2.12%* 1.95% 1.02% .85% .59% --% RATIO OF NET INVESTMENT INCOME (LOSS) INCLUDING PREFERRED SHARE DISTRIBUTIONS TO AVERAGE NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS 4.54%* 4.66% 5.31% 5.55% 5.49% 1.62%* PORTFOLIO TURNOVER RATE 1%** 6% 2% 3% 10% 0%** ASSET COVERAGE PER PREFERRED SHARE, END OF PERIOD@ $67,547 $68,048 $67,368 $68,622 $66,694 $ --
See Notes to Financial Highlights 38 NEUBERGER BERMAN APRIL 30, 2007 (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, YEAR ENDED OCTOBER 31, TO OCTOBER 31, ---------------- ------------------------------------- ------------------ 2007 2006 2005 2004 2003 2002 (UNAUDITED) COMMON SHARE NET ASSET VALUE, BEGINNING OF PERIOD $ 14.69 $ 14.47 $ 14.90 $ 14.40 $ 14.32 $14.32 ------- ------- ------- ------- ------- ------ INCOME FROM INVESTMENT OPERATIONS APPLICABLE TO COMMON SHAREHOLDERS: NET INVESTMENT INCOME (LOSS)! .48 .96 .93 .93 .86 .03 NET GAINS OR LOSSES ON SECURITIES (BOTH REALIZED AND UNREALIZED) (.13) .29 (.44) .48 .19 -- COMMON SHARE EQUIVALENT OF DISTRIBUTIONS TO PREFERRED SHAREHOLDERS FROM: NET INVESTMENT INCOME! (.15) (.28) (.14) (.13) (.08) -- ------- ------- ------- ------- ------- ------ TOTAL FROM INVESTMENT OPERATIONS APPLICABLE TO COMMON SHAREHOLDERS .20 .97 .35 1.28 .97 .03 ------- ------- ------- ------- ------- ------ LESS DISTRIBUTIONS TO COMMON SHAREHOLDERS FROM: NET INVESTMENT INCOME (.34) (.75) (.78) (.78) (.78) -- ------- ------- ------- ------- ------- ------ LESS CAPITAL CHARGES FROM: ISSUANCE OF COMMON SHARES -- -- -- -- -- (.03) ISSUANCE OF PREFERRED SHARES -- -- -- -- (.11) -- ------- ------- ------- ------- ------- ------ TOTAL CAPITAL CHARGES -- -- -- -- (.11) (.03) ------- ------- ------- ------- ------- ------ COMMON SHARE NET ASSET VALUE, END OF PERIOD $ 14.55 $ 14.69 $ 14.47 $ 14.90 $ 14.40 $14.32 ------- ------- ------- ------- ------- ------ COMMON SHARE MARKET VALUE, END OF PERIOD $ 14.13 $ 14.60 $ 13.54 $ 13.32 $ 13.27 $15.00 ------- ------- ------- ------- ------- ------ TOTAL RETURN, COMMON SHARE NET ASSET VALUE+ +1.44%** +7.05% +2.87% +9.67% +6.36% -0.03%** TOTAL RETURN, COMMON SHARE MARKET VALUE+ -0.88%** +13.70% +7.68% +6.39% -6.43% +0.00%** RATIOS/SUPPLEMENTAL DATA ++ NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS, END OF PERIOD (IN MILLIONS) $ 81.2 $ 81.9 $ 80.7 $ 83.1 $ 80.3 $ 76.7 PREFERRED SHARES, AT LIQUIDATION VALUE ($25,000 PER SHARE LIQUIDATION PREFERENCE) (IN MILLIONS) $ 48.3 $ 48.3 $ 48.3 $ 48.3 $ 48.3 $ -- RATIO OF GROSS EXPENSES TO AVERAGE NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS# .97%* .98% 1.02% 1.00% .92% .94%* RATIO OF NET EXPENSES TO AVERAGE NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS~ .97%* .98% 1.01% .99% .92% .93%* RATIO OF NET INVESTMENT INCOME (LOSS) EXCLUDING PREFERRED SHARE DISTRIBUTIONS TO AVERAGE NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS 6.58%* 6.60% 6.30% 6.37% 6.02% 1.22%* RATIO OF PREFERRED SHARE DISTRIBUTIONS TO AVERAGE NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS 2.00%* 1.90% .92% .86% .57% --% RATIO OF NET INVESTMENT INCOME (LOSS) INCLUDING PREFERRED SHARE DISTRIBUTIONS TO AVERAGE NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS 4.58%* 4.70% 5.38% 5.51% 5.45% 1.22%* PORTFOLIO TURNOVER RATE 0%** 5% 2% 5% 11% 0%** ASSET COVERAGE PER PREFERRED SHARE, END OF PERIOD@ $67,113 $67,488 $66,813 $68,073 $66,617 $ --
See Notes to Financial Highlights 39 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 distribution reinvestment plan. Results represent past performance and do not guarantee future results. Current returns may be lower or higher than the performance data quoted. Investment returns may fluctuate and shares when sold may be worth more or less than original cost. 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 by Management. Had Management not undertaken such action, the annualized ratios of net expenses to average daily net assets applicable to common shareholders would have been:
PERIOD FROM SIX MONTHS ENDED SEPTEMBER 27 TO APRIL 30, YEAR ENDED OCTOBER 31, OCTOBER 31, 2007 2006 2005 2004 2003 2002 CALIFORNIA 1.32% 1.32% 1.36% 1.35% 1.26% 1.08% INTERMEDIATE 1.16% 1.17% 1.20% 1.22% 1.13% .76% NEW YORK 1.37% 1.38% 1.41% 1.39% 1.31% 1.18%
^ The date investment operations commenced. * Annualized. ** Not annualized. @ Calculated by subtracting the Fund's total liabilities (excluding accumulated unpaid distributions on AMPS) from the Fund's total assets and dividing by the number of AMPS outstanding. ++ Expense ratios do not include the effect of distributions to holders of AMPS. Income ratios include income earned on assets attributable to AMPS outstanding. ! Calculated based on the average number of shares outstanding during each fiscal period. 40 NEUBERGER BERMAN APRIL 30, 2007 (UNAUDITED) DISTRIBUTION REINVESTMENT PLAN The Bank of New York ("Plan Agent") will act as Plan Agent for shareholders who have not elected in writing to receive dividends and distributions in cash (each a "Participant"), will open an account for each Participant under the Distribution Reinvestment Plan ("Plan") in the same name as their then current Shares are registered, and will put the Plan into effect for each Participant as of the first record date for a dividend or capital gains distribution. Whenever the Fund declares a dividend or distribution with respect to the common stock of the Fund ("Shares"), each Participant will receive such dividends and distributions in additional Shares, including fractional Shares acquired by the Plan Agent and credited to each Participant's account. If on the payment date for a cash dividend or distribution, the net asset value is equal to or less than the market price per Share plus estimated brokerage commissions, the Plan Agent shall automatically receive such Shares, including fractions, for each Participant's account. Except in the circumstances described in the next paragraph, the number of additional Shares to be credited to each Participant's account shall be determined by dividing the dollar amount of the dividend or distribution payable on their Shares by the greater of the net asset value per Share determined as of the date of purchase or 95% of the then current market price per Share on the payment date. Should the net asset value per Share exceed the market price per Share plus estimated brokerage commissions on the payment date for a cash dividend or distribution, the Plan Agent or a broker-dealer selected by the Plan Agent shall endeavor, for a purchase period lasting until the last business day before the next date on which the Shares trade on an "ex-dividend" basis, but in no event, except as provided below, more than 30 days after the payment date, to apply the amount of such dividend or distribution on each Participant's Shares (less their PRO RATA share of brokerage commissions incurred with respect to the Plan Agent's open-market purchases in connection with the reinvestment of such dividend or distribution) to purchase Shares on the open market for each Participant's account. No such purchases may be made more than 30 days after the payment date for such dividend or distribution except where temporary curtailment or suspension of purchase is necessary to comply with applicable provisions of federal securities laws. If, at the close of business on any day during the purchase period the net asset value per Share equals or is less than the market price per Share plus estimated brokerage commissions, the Plan Agent will not make any further open-market purchases in connection with the reinvestment of such dividend or distribution. If the Plan Agent is unable to invest the full dividend or distribution amount through open-market purchases during the purchase period, the Plan Agent shall request that, with respect to the uninvested portion of such dividend or distribution amount, the Fund issue new Shares at the close of business on the earlier of the last day of the purchase period or the first day during the purchase period on which the net asset value per Share equals or is less than the market price per Share, plus estimated brokerage commissions, such Shares to be issued in accordance with the terms specified in the third paragraph hereof. These newly issued Shares will be valued at the then-current market price per Share at the time such Shares are to be issued. For purposes of making the reinvestment purchase comparison under the Plan, (a) the market price of the Shares on a particular date shall be the last sales price on the New York Stock Exchange (or if the Shares are not listed on the New York Stock Exchange, such other exchange on which the Shares are principally traded) on that date, or, if there is no sale on such Exchange (or if not so listed, in the over-the-counter market) on that date, then the mean between the closing bid and asked quotations for such Shares on such Exchange on such date and (b) the net asset value per Share on a particular date shall be the net asset value per Share most recently calculated by or on behalf of the Fund. All dividends, distributions and other payments (whether made in cash or Shares) shall be made net of any applicable withholding tax. Open-market purchases provided for above may be made on any securities exchange where the Fund's Shares are traded, in the over-the-counter market or in negotiated transactions and may be on such terms as to price, delivery and otherwise as the Plan Agent shall determine. Each Participant's uninvested funds held by the Plan Agent will not bear interest, and it is understood that, in any event, the Plan Agent shall have no liability in connection with any inability to purchase Shares within 30 days after the initial date of such purchase as herein provided, or with the timing of any purchases effected. The Plan Agent shall have no responsibility as to the value of the Shares acquired for each Participant's account. For the purpose of cash investments, the Plan Agent may commingle each Participant's funds with those of other shareholders of the Fund for whom the Plan Agent similarly acts as agent, and the average price (including brokerage commissions) of all Shares purchased by the Plan Agent as Plan Agent shall be the price per Share allocable to each Participant in connection therewith. 41 DISTRIBUTION REINVESTMENT PLAN cont'd The Plan Agent may hold each Participant's Shares acquired pursuant to the Plan together with the Shares of other shareholders of the Fund acquired pursuant to the Plan in noncertificated form in the Plan Agent's name or that of the Plan Agent's nominee. The Plan Agent will forward to each Participant any proxy solicitation material and will vote any Shares so held for each Participant only in accordance with the instructions set forth on proxies returned by the Participant to the Fund. The Plan Agent will confirm to each Participant each acquisition made for their account as soon as practicable but not later than 60 days after the date thereof. Although each Participant may from time to time have an undivided fractional interest (computed to three decimal places) in a Share, no certificates for a fractional Share will be issued. However, dividends and distributions on fractional Shares will be credited to each Participant's account. In the event of termination of a Participant's account under the Plan, the Plan Agent will adjust for any such undivided fractional interest in cash at the market value of the Shares at the time of termination, less the PRO RATA expense of any sale required to make such an adjustment. Any Share dividends or split Shares distributed by the Fund on Shares held by the Plan Agent for Participants will be credited to their accounts. In the event that the Fund makes available to its shareholders rights to purchase additional Shares or other securities, the Shares held for each Participant under the Plan will be added to other Shares held by the Participant in calculating the number of rights to be issued to each Participant. The Plan Agent's service fee for handling capital gains distributions or income dividends will be paid by the Fund. Participants will be charged their PRO RATA share of brokerage commissions on all open-market purchases. Each Participant may terminate their account under the Plan by notifying the Plan Agent in writing. Such termination will be effective immediately if the Participant's notice is received by the Plan Agent not less than ten days prior to any dividend or distribution record date, otherwise such termination will be effective the first trading day after the payment date for such dividend or distribution with respect to any subsequent dividend or distribution. The Plan may be terminated by the Plan Agent or the Fund upon notice in writing mailed to each Participant at least 30 days prior to any record date for the payment of any dividend or distribution by the Fund. These terms and conditions may be amended or supplemented by the Plan Agent or the Fund at any time or times but, except when necessary or appropriate to comply with applicable law or the rules or policies of the Securities and Exchange Commission or any other regulatory authority, only by mailing to each Participant appropriate written notice at least 30 days prior to the effective date thereof. The amendment or supplement shall be deemed to be accepted by each Participant unless, prior to the effective date thereof, the Plan Agent receives written notice of the termination of their account under the Plan. Any such amendment may include an appointment by the Plan Agent in its place and stead of a successor Plan Agent under these terms and conditions, with full power and authority to perform all or any of the acts to be performed by the Plan Agent under these terms and conditions. Upon any such appointment of any Plan Agent for the purpose of receiving dividends and distributions, the Fund will be authorized to pay to such successor Plan Agent, for each Participant's account, all dividends and distributions payable on Shares held in their name or under the Plan for retention or application by such successor Plan Agent as provided in these terms and conditions. The Plan Agent shall at all times act in good faith and agrees to use its best efforts within reasonable limits to ensure the accuracy of all services performed under this Agreement and to comply with applicable law, but assumes no responsibility and shall not be liable for loss or damage due to errors unless such error is caused by the Plan Agent's negligence, bad faith, or willful misconduct or that of its employees. These terms and conditions shall be governed by the laws of the State of Maryland. 42 NEUBERGER BERMAN APRIL 30, 2007 (UNAUDITED) DIRECTORY INVESTMENT MANAGER AND ADMINISTRATOR Neuberger Berman Management Inc. 605 Third Avenue, 2nd Floor New York, NY 10158-0180 877.461.1899 or 212.476.8800 SUB-ADVISER Neuberger Berman, LLC 605 Third Avenue New York, NY 10158-3698 CUSTODIAN State Street Bank and Trust Company 225 Franklin Street Boston, MA 02110 STOCK TRANSFER AGENT The Bank of New York 101 Barclay Street, 11-E New York, NY 10286 LEGAL COUNSEL Kirkpatrick & Lockhart Preston Gates Ellis LLP 1601 K Street, NW Washington, DC 20006 INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM Ernst & Young LLP 200 Clarendon Street Boston, MA 02116 43 PROXY VOTING POLICIES AND PROCEDURES A description of the policies and procedures that the Funds use to determine how to vote proxies relating to portfolio securities is available, without charge, by calling 1-800-877-9700 (toll-free) and on the website of the Securities and Exchange Commission at www.sec.gov. Information regarding how the Funds voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 is also available, without charge, by calling 1-800-877-9700 (toll-free), on the website of the Securities and Exchange Commission at www.sec.gov, and on Management's website at www.nb.com. QUARTERLY PORTFOLIO SCHEDULE The Funds file a complete schedule of portfolio holdings for each Fund with the Securities and Exchange Commission for the first and third quarters of each fiscal year on Form N-Q. The Funds' Forms N-Q are available on the Securities and Exchange Commission's website at www.sec.gov and may be reviewed and copied at the Securities and Exchange Commission's Public Reference Room in Washington, DC. Information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330. The information on Form N-Q is available upon request, without charge, by calling 1-800-877-9700 (toll-free). CHANGE IN PORTFOLIO MANAGER In February 2007, James L. Iselin assumed portfolio management responsibility for the Funds. Mr. Iselin is a Vice President of Neuberger Berman Management Inc. and a Senior Vice President of Neuberger Berman, LLC. He has more than 14 years of industry experience in the area of municipal fixed income securities. 44 NEUBERGER BERMAN APRIL 30, 2007 (UNAUDITED) REPORT OF VOTES OF SHAREHOLDERS An annual meeting of shareholders 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") was held on April 16, 2007. Shareholders voted on the following matter: (1) To elect five Class II Directors (one of which is to be elected only by holders of the Fund's preferred shares) to serve until the annual meeting of shareholders in 2010, or until their successors are elected and qualified. Class I and III Directors continue to hold office until the annual meeting in 2009 and 2008, respectively. Proposal 1 - To elect five Class II Directors (one of which is to be elected only by holders of the Fund's preferred shares) to serve until the annual meeting of shareholders in 2010. CALIFORNIA Common and Preferred Shares VOTES FOR VOTES WITHHELD ABSTENTIONS BROKER NON-VOTES C. Anne Harvey 6,395,105.000 116,851.000 -- -- George Morriss 6,397,366.000 114,590.000 -- -- Jack Rivkin 6,396,816.000 115,140.000 -- -- Tom D. Seip 6,393,081.000 118,875.000 -- -- Preferred Shares VOTES FOR VOTES WITHHELD ABSTENTIONS BROKER NON-VOTES John Cannon 1,920.000 -- -- -- INTERMEDIATE Common and Preferred Shares VOTES FOR VOTES WITHHELD ABSTENTIONS BROKER NON-VOTES C. Anne Harvey 19,654,570.000 215,422.000 -- -- George Morriss 19,651,203.000 218,789.000 -- -- Jack Rivkin 19,650,963.000 219,029.000 -- -- Tom D. Seip 19,639,050.000 230,942.000 -- -- Preferred Shares VOTES FOR VOTES WITHHELD ABSTENTIONS BROKER NON-VOTES John Cannon 6,580.000 235.000 -- -- NEW YORK Common and Preferred Shares VOTES FOR VOTES WITHHELD ABSTENTIONS BROKER NON-VOTES C. Anne Harvey 5,329,965.000 69,404.000 -- -- George Morriss 5,331,592.000 67,777.000 -- -- Jack Rivkin 5,329,810.000 69,559.000 -- -- Tom D. Seip 5,325,215.000 74,154.000 -- -- Preferred Shares VOTES FOR VOTES WITHHELD ABSTENTIONS BROKER NON-VOTES John Cannon 1,731.000 -- -- -- 45 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. NEUBERGER | BERMAN A LEHMAN BROTHERS COMPANY NEUBERGER BERMAN MANAGEMENT INC. 605 Third Avenue, 2nd Floor New York, NY 10158-0180 INTERNAL SALES & SERVICES 877.461.1899 www.nb.com [GRAPHIC] D0123 06/07 ITEM 2. CODE OF ETHICS The Board of Directors ("Board") of Neuberger Berman Intermediate Municipal Fund Inc. ("Registrant") adopted a code of ethics that applies to the Registrant's principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions ("Code of Ethics"). For the period covered by this Form N-CSR, there were no amendments to the Code of Ethics and there were no waivers from the Code of Ethics granted to the Registrant's principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions. A copy of the Code of Ethics was included as an exhibit to Registrant's Form N-CSR filed on July 10, 2006. The Code of Ethics is also available, without charge, by calling 1-800-877-9700 (toll-free). ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT The Board has determined that the Registrant has three audit committee financial experts serving on its audit committee. The Registrant's audit committee financial experts are Martha Goss, Howard Mileaf and George Morriss. Ms. Goss, Mr. Mileaf and Mr. Morriss are independent directors as defined by Form N-CSR. ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES Only required in the annual report. ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS Only required in the annual report. ITEM 6. SCHEDULE OF INVESTMENTS The complete schedule of investments for the Fund is disclosed in the Registrant's Semi-annual Report, which is included as Item 1 of this Form N-CSR. ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES Only required in the annual report. ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES. Only required in the annual report. ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS No reportable purchases for the period covered by this report. ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS There were no changes to the procedures by which shareholders may recommend nominees to the Board. ITEM 11. CONTROLS AND PROCEDURES (a) Based on an evaluation of the disclosure controls and procedures (as defined in rule 30a-3(c) under the Investment Company Act of 1940, as amended (the "Act")) as of a date within 90 days of the filing date of this document, the Chief Executive Officer and Treasurer and Principal Financial and Accounting Officer of the Registrant have concluded that such disclosure controls and procedures are effectively designed to ensure that information required to be disclosed by the Registrant on Form N-CSR and Form N-Q is accumulated and communicated to the Registrant's management to allow timely decisions regarding required disclosure. (b) There were no significant changes in the Registrant's internal controls over financial reporting (as defined in rule 30a-3(d) under the Act) that occurred during the Registrant's second fiscal quarter of the period covered by this report that have materially affected, or are reasonably likely to materially affect, the Registrant's internal control over financial reporting. ITEM 12. EXHIBITS (a)(1) A copy of the Code of Ethics is incorporated by reference to Registrant's Form N-CSR, Investment Company Act file number 811-21168 (filed July 10, 2006). (a)(2) The certifications required by Rule 30a-2(a) of the Act and Section 302 of the Sarbanes-Oxley Act of 2002 ("Sarbanes-Oxley Act") are filed herewith. (a)(3) Not applicable to the Registrant. (b) The certifications required by Rule 30a-2(b) of the Act and Section 906 of the Sarbanes-Oxley Act are filed herewith. The certifications provided pursuant to Rule 30a-2(b) of the Act and 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 6, 2007 Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated. By: /s/ Peter E. Sundman -------------------- Peter E. Sundman Chief Executive Officer Date: July 6, 2007 By: /s/ John M. McGovern -------------------- John M. McGovern Treasurer and Principal Financial and Accounting Officer Date: July 6, 2007