As filed with the Securities and Exchange Commission on January 9, 2006
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF
REGISTERED MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number: 811-21167
NEUBERGER BERMAN CALIFORNIA INTERMEDIATE MUNICIPAL FUND INC.
------------------------------------------------------------
(Exact Name of the Registrant as Specified in Charter)
c/o Neuberger Berman Management Inc.
605 Third Avenue, 2nd Floor
New York, New York 10158-0180
Registrant's Telephone Number, including area code: (212) 476-8800
Peter E. Sundman, Chief Executive Officer
Neuberger Berman California Intermediate Municipal Fund Inc.
605 Third Avenue, 2nd Floor
New York, New York 10158-0180
Arthur C. Delibert, Esq.
Kirkpatrick & Lockhart Nicholson Graham LLP
1800 Massachusetts Avenue, N.W. 2nd Floor
Washington, DC 20036-1800
(Names and addresses of agents for service)
Date of fiscal year end: October 31, 2005
Date of reporting period: October 31, 2005
Form N-CSR is to be used by management investment companies to file reports with
the Commission not later than 10 days after the transmission to stockholders of
any report that is required to be transmitted to stockholders under Rule 30e-1
under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may
use the information provided on Form N-CSR in its regulatory, disclosure review,
inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-CSR,
and the Commission will make this information public. A registrant is not
required to respond to the collection of information contained in Form N-CSR
unless the Form displays a currently valid Office of Management and Budget
("OMB") control number. Please direct comments concerning the accuracy of the
information collection burden estimate and any suggestions for reducing the
burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW,
Washington, DC 20549-0609. The OMB has reviewed this collection of information
under the clearance requirements of 44 U.S.C. ss. 3507.
ITEM 1. REPORTS TO SHAREHOLDERS
[NEUBERGER BERMAN LOGO]
A LEHMAN BROTHERS COMPANY
ANNUAL REPORT
OCTOBER 31, 2005
NEUBERGER BERMAN
INTERMEDIATE
MUNICIPAL
CLOSED-END FUNDS
CALIFORNIA INTERMEDIATE MUNICIPAL FUND INC.
INTERMEDIATE MUNICIPAL FUND INC.
NEW YORK INTERMEDIATE MUNICIPAL FUND INC.
NEUBERGER BERMAN OCTOBER 31, 2005
CONTENTS
THE FUNDS
CHAIRMAN'S LETTER 1
PORTFOLIO COMMENTARY
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. 19
FINANCIAL STATEMENTS 24
FINANCIAL HIGHLIGHTS/
PER SHARE DATA
California Intermediate Municipal Fund Inc. 34
Intermediate Municipal Fund Inc. 35
New York Intermediate Municipal Fund Inc. 36
REPORT OF INDEPENDENT
REGISTERED PUBLIC ACCOUNTING FIRM 38
DIVIDEND REINVESTMENT PLAN 39
DIRECTORY 41
DIRECTORS AND OFFICERS 42
PROXY VOTING POLICIES AND PROCEDURES 51
QUARTERLY PORTFOLIO SCHEDULE 51
NOTICE TO SHAREHOLDERS 52
BOARD CONSIDERATION OF THE MANAGEMENT
AND SUB-ADVISORY AGREEMENTS 53
CHAIRMAN'S LETTER
DEAR SHAREHOLDER,
I am pleased to present to you this annual report for the Neuberger Berman
Intermediate Municipal Closed-End Funds, for the fiscal year ending October 31,
2005. The report includes portfolio commentary, a listing of the Funds'
investments, and their audited financial statements for the reporting period.
Each Fund's investment objective is to provide current income exempt from
regular federal income tax and, for each state-specific fund, current income
exempt from that state's 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
CALIFORNIA INTERMEDIATE MUNICIPAL FUND INC.
INTERMEDIATE MUNICIPAL FUND INC.
NEW YORK INTERMEDIATE MUNICIPAL FUND INC.
"Neuberger Berman" and the Neuberger Berman logo are service marks of Neuberger
Berman, LLC. "Neuberger Berman Management Inc." and the individual fund names in
this shareholder report are either service marks or registered service marks of
Neuberger Berman Management Inc. (C)2005 Neuberger Berman Management Inc. All
rights reserved.
1
INTERMEDIATE MUNICIPAL CLOSED-END FUNDS PORTFOLIO COMMENTARIES
We are pleased to report that, on a Net Asset Value (NAV) basis, all three of
Neuberger Berman's Intermediate Municipal Closed-End Funds delivered positive
returns and materially outperformed the Lehman Brothers 10-Year Municipal Bond
Index for the fiscal year ending October 31, 2005.
Municipal bonds performed in line with the broad fixed income market during this
12-month reporting period, with prices remaining relatively stable from November
2004 through January 2005, declining in February and March, rallying in April,
and then retreating again in September and October. The market's ups and downs
were largely the result of mixed signals on the strength of the economy and the
outlook for inflation. Eight Federal Reserve rate hikes totaling 2.00% over the
course of the fiscal year (with a ninth on November 1, the day after fiscal year
end) kept a ceiling on intermediate-term bond prices.
An increase in state and local tax revenues resulting from the robust economy
has strengthened municipal balance sheets. While credit quality has improved, a
new credit issue emerged this year. The problems facing General Motors and
United Airlines due to large under-funded pensions have focused investor
attention on the financial soundness of municipal issuers' pension plans. This,
in turn, has become a more important element in our credit analysis.
Looking ahead, we continue to focus on economic data relating to inflation and
its likely impact on Fed policy. Although third quarter 2005 GDP growth has been
revised upward to 4.3%, we are seeing early signs that economic growth is
starting to moderate. In the second week of November, leading homebuilder Toll
Brothers warned investors about slowing sales--an indication that the vibrant
new housing market may be losing momentum. Existing home inventories have also
been rising in many areas of the country. Despite still strong consumer
spending, softening home prices could prove a blow to consumer confidence. Also,
as the weather cools, high home heating costs may put more pressure on household
budgets, which could dampen holiday sales. If more evidence emerges that the
housing bubble is deflating and if Christmas proves less than jolly for
retailers, the Fed may begin to worry about overplaying its hand and consider
easing its foot off the monetary brakes sooner rather than later.
We are likely to maintain the portfolios' conservative posture until we see
convincing evidence that the economy is decelerating and that the Fed is closer
to declaring victory over inflation, at which point we may become somewhat more
aggressive. All told, however, we believe that municipal bond investors should
be encouraged by how well municipal securities have held up during a prolonged
period of Fed tightening and by the fact that yields are now significantly more
generous than in recent years.
CALIFORNIA INTERMEDIATE MUNICIPAL FUND INC.
For the fiscal year ending October 31, 2005, on a net asset value (NAV) basis,
the California Intermediate Municipal Fund returned 2.96% compared to the Lehman
10-Year Municipal Bond Index's 1.21% gain.
2
As of October 31, 2005, the portfolio was composed of 88.5% revenue bonds, 10.3%
general obligation bonds, and 1.2% in other assets and short term investments.
Bonds subject to the Alternative Minimum Tax (AMT) equaled 13.75% of assets. At
the close of the reporting period, the Fund's duration was 5.6 years and the
portfolio's leverage position was 37.2% of assets.
INTERMEDIATE MUNICIPAL FUND INC.
For the fiscal year ending October 31, 2005, on a net asset value (NAV) basis,
the Intermediate Municipal Fund returned 2.93% compared to the Lehman 10-Year
Municipal Bond Index's 1.21% gain.
As of October 31, 2005, the portfolio was composed of 74.2% revenue bonds, 18.3%
general obligation bonds, 5.5% pre-refunded/escrow bonds, and 2.0% in other
assets and short term investments. Bonds subject to the Alternative Minimum Tax
(AMT) equaled 12.96% of assets. At the close of the reporting period, the Fund's
duration was 5.5 years and the portfolio's leverage position was 37.1% of
assets.
NEW YORK INTERMEDIATE MUNICIPAL FUND INC.
For the fiscal year ending October 31, 2005, on a net asset value (NAV) basis,
the New York Intermediate Municipal Fund returned 2.87% compared to the Lehman
10-Year Municipal Bond Index's 1.21% gain.
As of October 31, 2005, the portfolio was composed of 93.4% revenue bonds, 4.7%
general obligation bonds, and 1.9% in other assets and short term investments.
Bonds subject to the Alternative Minimum Tax (AMT) equaled 18.93% of assets. At
the close of the reporting period, the Fund's duration was 5.5 years and the
portfolio's leverage position was 37.4% of assets.
Sincerely,
/s/ Ted Giuliano
/s/ Thomas Brophy
/s/ Lori Canell
TED GIULIANO, THOMAS BROPHY
AND LORI CANELL
PORTFOLIO CO-MANAGERS
3
INTERMEDIATE MUNICIPAL CLOSED-END FUNDS
CALIFORNIA INTERMEDIATE INTERMEDIA NEW YORK INTERMEDIATE
MUNICIPAL FUND MUNICIPAL FUND MUNICIPAL FUND
AMEX TICKER SYMBOL NBW AMEX TICKER SYMBOL NBH AMEX TICKER SYMBOL NBO
1 YEAR TOTAL RETURN
NAV (1),(4) 2.96% 2.93% 2.87%
MARKET PRICE (2),(4) 7.82% 5.32% 7.68%
AVERAGE ANNUAL TOTAL RETURN (Life of Fund as of October 31, 2005)
NAV (1),(4) 6.32% 6.55% 6.03%
MARKET PRICE (2),(4) 2.58% 2.48% 2.26%
09/24/2002 09/24/2002 09/24/2002
CALIFORNIA INTERMEDIATE MUNICIPAL FUND
RATING DIVERSIFICATION
(% BY RATINGS)
AAA 53.7%
AA 3.2
A 16.1
BBB 23.2
BB 2.8
B 0.3
CCC 0.0
CC 0.0
C 0.0
D 0.0
Not Rated 0.0
Short Term 0.7
INTERMEDIATE MUNICIPAL FUND
RATING DIVERSIFICATION
(% BY RATINGS)
AAA 56.6%
AA 7.9
A 11.6
BBB 18.8
BB 3.7
B 0.8
CCC 0.0
CC 0.0
C 0.0
D 0.0
Not Rated 0.0
Short Term 0.6
NEW YORK INTERMEDIATE MUNICIPAL FUND
RATING DIVERSIFICATION
(% BY RATINGS)
AAA 26.0%
AA 31.4
A 15.4
BBB 14.9
BB 11.3
B 0.4
CCC 0.0
CC 0.0
C 0.0
D 0.0
Not Rated 0.0
Short Term 0.6
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
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 the Funds may be subject to 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
GLOSSARY OF INDICES
NEW YORK MUNICIPAL DEBT FUND AVERAGE: An equally weighted average of those closed-end
funds that limit their assets to those securities
that are exempt from taxation in New York (double
tax-exempt) or a city in New York (triple
tax-exempt).
CALIFORNIA MUNICIPAL DEBT FUND INDEX: An equally weighted index, adjusted for income
dividends and capital gain distributions, of
typically the largest 30 closed-end funds that
invest at least 65% of assets in municipal debt
issues that are exempt from taxation in California.
CALIFORNIA MUNICIPAL DEBT FUND AVERAGE: An equally weighted average of those closed-end
funds that invest at least 65% of assets in
municipal debt issues that are exempt from taxation
in California.
GENERAL LEVERAGED MUNICIPAL DEBT FUND INDEX: An equally weighted index, adjusted for income
dividends and capital gain distributions, of
typically the largest 30 closed-end funds that
invest 65% or more of their assets in municipal debt
issues rated in the top four credit ratings. These
funds can be leveraged via use of debt, preferred
equity, and/or reverse repurchase agreements.
GENERAL LEVERAGED MUNICIPAL DEBT FUND AVERAGE: An equally weighted average of those closed-end
funds that invest 65% or more of their assets in
municipal debt issues rated in the top four credit
ratings. These funds can be leveraged via use of
debt, preferred equity, and/or reverse repurchase
agreements.
LEHMAN 10-YEAR MUNICIPAL BOND INDEX: The index is the 10-year (8-12) component which is a
rules-based, market-value-weighted index engineered
for the long-term tax-exempt bond market. To be
included in the index, bonds must have a minimum
credit rating of Baa. They must have an outstanding
par value of at least $5 million and be issued as
part of a transaction of at least $50 million. The
bonds must have a dated-date after December 31, 1990
and must be at least one year from their maturity
date. Remarked issues, taxable municipal bonds,
bonds with floating rates, and derivatives, are
excluded from the benchmark.
Please note that indices do not take into account any fees and expenses or any
tax consequences of investing in the individual securities that they track and
that investors cannot invest directly in any index or average. Data about the
performance of each index or average 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 index.
6
SCHEDULE OF INVESTMENTS CALIFORNIA INTERMEDIATE MUNICIPAL FUND INC.
PRINCIPAL AMOUNT SECURITY @ RATING @@ VALUE +
(000'S OMITTED) MOODY'S S&P (000'S OMITTED)
TAX-EXEMPT SECURITIES--BACKED BY INSURANCE (82.2%)
AMERICAN CAPITAL ACCESS
$ 1,000 Puerto Rico Ind., Tourist, Ed., Med., & Env. Ctrl. Fac. Rev.
(Polytechnic Univ. of Puerto Rico Proj.), Ser. 2002 A,
5.25%, due 8/1/15 A $ 1,039++
AMERICAN MUNICIPAL BOND ASSURANCE CORP.
1,285 Bay Area (CA) Governments Assoc. BART SFO Extension Rev.
(Arpt. Premium Fare), Ser. 2002 A, 5.00%, due 8/1/21 AAA 1,337
1,000 California St. Pub. Works Board Lease (Dept. of Gen. Svc.)
Rev. (Cap. East End Complex), Ser. 2002 A, 5.25%, due 12/1/16 AAA 1,074
1,000 Fresno (CA) Unified Sch. Dist. Ref. G.O., Ser. 2002 A,
6.00%, due 2/1/17 AAA 1,164
1,905 Long Beach (CA) Bond Fin. Au. Tax Allocation Rev.
(Downtown, North Long Beach, Poly High, & West Beach Redev.
Proj.), Ser. 2002 A, 5.38%, due 8/1/17 AAA 2,051
500 Long Beach (CA) Fin. Au. Rev., Ser. 1992, 6.00%, due 11/1/17 AAA 579
1,045 Marin Co. (CA) Muni. Wtr. Dist. Wtr. Ref. Rev., Ser. 2002,
5.00%, due 7/1/17 AAA 1,099
1,445 Oceanside (CA) Cert. of Participation Ref. Rev., Ser. 2003 A,
5.25%, due 4/1/14 AAA 1,572
2,600 Sacramento (CA) Muni. Util. Dist. Elec. Rev., Ser. 1997 K,
5.70%, due 7/1/17 AAA 2,980
2,000 San Francisco (CA) St. Bldg. Au. Lease Rev. (San Francisco
Civic Ctr. Complex), Ser. 1996 A, 5.25%, due 12/1/16 AAA 2,088
2,500 San Jose (CA) Fin. Au. Lease Rev. (Civic Ctr. Proj.), Ser. 2002 B,
5.25%, due 6/1/17 AAA 2,663
1,000 San Jose (CA) Multi-Family Hsg. Rev. (Fallen Leaves Apts. Proj.),
Ser. 2002 J-1, 4.95%, due 12/1/22 Aaa AAA 1,018++
FINANCIAL GUARANTY INSURANCE CO.
2,550 Contra Costa (CA) Comm. College Dist. G.O., Ser. 2002,
5.25%, due 8/1/17 AAA 2,727
1,000 Kings Canyon (CA) Joint Unified Sch. Dist. G.O., Ser. 2002,
5.38%, due 8/1/17 Aaa AAA 1,083
5,000 Los Angeles (CA) Dept. of Arpts. Rev. (Los Angeles Int'l. Arpt.),
Ser. 2002 A, 5.25%, due 5/15/18 Aaa AAA 5,306
1,090 Moreland (CA) Sch. Dist. Ref. G.O., Ser. 2002, 5.13%,
due 9/1/17 AAA 1,158
535 Nevada & Placer Cos. (CA) Irrigation Dist. Cert. of Participation
Rev., Ser. 2002, 5.00%, due 1/1/16 AAA 565
565 Nevada & Placer Cos. (CA) Irrigation Dist. Cert. of Participation
Rev., Ser. 2002, 5.00%, due 1/1/17 AAA 594
1,045 Oakland (CA) G.O., Ser. 2002 A, 5.00%, due 1/15/15 AAA 1,108
1,210 Oakland (CA) G.O., Ser. 2002 A, 5.00%, due 1/15/18 AAA 1,267
1,290 Oakland (CA) Redev. Agcy. Sub. Tax Allocation Rev. (Central
Dist. Redev. Proj.), Ser. 2003, 5.50%, due 9/1/17 AAA 1,415
575 Port of Oakland (CA) Rev., Ser. 2002 M, 5.25%, due 11/1/17 AAA 620
2,655 Riverside Co. (CA) Eastern Muni. Wtr. Dist. Cert. of Participation
Wtr. & Swr. Rev., Ser. 2001 A, 5.00%, due 7/1/19 Aaa AAA 2,765
2,000 San Diego (CA) Unified Sch. Dist. G.O., Ser. 2002 D, 5.25%,
due 7/1/21 Aaa AAA 2,177
1,500 San Francisco (CA) City & Co. Int'l. Arpt. Second Ser. Rev.,
5.25%, due 5/1/16 AAA 1,577
See Notes to Schedule of Investments
7
PRINCIPAL AMOUNT SECURITY @ RATING @@ VALUE +
(000'S OMITTED) MOODY'S S&P (000'S OMITTED)
FINANCIAL SECURITY ASSURANCE INC.
$ 1,000 Burbank (CA) Pub. Svc. Dept. Elec. Rev., Ser. 1998, 5.13%,
due 6/1/16 AAA $ 1,053
3,000 California St. Pub. Works Board Lease Rev. (Regents of the
Univ. of California, UCLA Replacement Hosp.), Ser. 2002 A,
5.38%, due 10/1/13 AAA 3,281
1,275 Los Angeles Co. (CA) Long Beach Unified Sch. Dist. G.O.,
Ser. 2002 D, 5.00%, due 8/1/17 AAA 1,345
500 Marin Co. (CA) Dixie Elementary Sch. Dist. G.O., Ser. 2000 A,
5.38%, due 8/1/17 AAA 541
3,000 Puerto Rico Muni. Fin. Agcy. Rev., Ser. 2002 A, 5.25%,
due 8/1/17 AAA 3,236
1,000 Puerto Rico Muni. Fin. Agcy. Rev., Ser. 2002 A, 5.25%,
due 8/1/21 Aaa AAA 1,074
5,000 San Francisco (CA) City & Co. Redev. Agcy. Lease Ref. Rev.
(George R. Moscone Convention Ctr.), Ser. 2002, 5.00%,
due 7/1/17 Aaa AAA 5,262
1,000 San Jose (CA) Arpt. Ref. Rev., Ser. 2002 B, 5.00%, due 3/1/11 AAA 1,057
1,615 San Jose (CA) Arpt. Ref. Rev., Ser. 2002 B, 5.00%, due 3/1/12 AAA 1,709
1,620 Santa Clara Co. (CA) Fremont Union High Sch. Dist. G.O.,
Ser.2002 C, 5.00%, due 9/1/20 Aaa AAA 1,759
MUNICIPAL BOND INVESTORS ASSURANCE CORP.
1,250 Alameda Co. (CA) Cert. of Participation Ref. Rev., Ser. 2001 A,
5.38%, due 12/1/17 AAA 1,355
4,000 California Poll. Ctrl. Fin. Au. Ref. PCR (Pacific Gas & Elec. Co.),
Ser. 1996 A, 5.35%, due 12/1/16 AAA 4,276++
2,835 Glendale (CA) Redev. Agcy. Tax Allocation Rev. (Central Glendale
Redev. Proj.), Ser. 2002, 5.00%, due 12/1/16 AAA 3,013
2,480 Glendale (CA) Redev. Agcy. Tax Allocation Rev. (Central Glendale
Redev. Proj.), Ser. 2002, 5.25%, due 12/1/17 AAA 2,663
3,890 Port of Oakland (CA) Ref. Rev., Ser. 2002 N, 5.00%,
due 11/1/13 AAA 4,084
3,905 Solano Co. (CA) Cert. of Participation Rev., Ser. 2002, 5.25%,
due 11/1/17 AAA 4,173
1,000 Univ. of California Regents Rev. (Multi. Purp. Proj.), Ser. 2000 K,
5.00%, due 9/1/12 AAA 1,057
---------------
81,964
---------------
TAX-EXEMPT SECURITIES--OTHER (75.1%)
780 Abag (CA) Fin. Au. Cert. of Participation Rev. (Channing House),
Ser. 1999, 4.90%, due 2/15/09 BBB+ 803++
3,050 Abag (CA) Fin. Au. Cert. of Participation Rev. (Episcopal Homes
Foundation), Ser. 1998, 5.13%, due 7/1/18 BBB+ 3,112++
1,000 Abag (CA) Fin. Au. Rev. (San Diego Hosp. Assoc.), Ser. 2003 C,
5.13%, due 3/1/18 Baa1 BBB+ 1,025++
900 Brazos (TX) River Au. Ref. PCR (TXU Energy Co. LLC Proj.),
Ser. 2003 A, 6.75%, due 4/1/38 Putable 4/1/13 Baa2 BBB 1,003++
750 Brazos (TX) River Au. Ref. Rev. (Reliant Energy, Inc. Proj.),
Ser. 1999 B, 7.75%, due 12/1/18 BBB- 826++
1,000 Brazos (TX) River Harbor Navigation Dist. of Brazoria Co.
Env. Fac. Rev. (Dow Chemical Co. Proj.), Ser. 2002 A-4,
5.20%, due 5/15/33 A3 A- 1,029++
640 California Co. (CA) Tobacco Securitization Agcy. Tobacco
Settlement Asset-Backed Rev., Ser. 2002, 4.75%, due 6/1/19 Baa3 BBB 647
1,750 California Ed. Fac. Au. Ref. Rev. (Stanford Univ.), Ser. 2001 R,
5.00%, due 11/1/21 Aaa AAA 1,828++
8
PRINCIPAL AMOUNT SECURITY @ RATING @@ VALUE +
(000'S OMITTED) MOODY'S S&P (000'S OMITTED)
$ 2,000 California Hlth. Fac. Fin. Au. Rev. (Catholic Healthcare West),
Ser. 2004 I, 4.95%, due 7/1/26 Baa1 A- $ 2,058++
2,000 California Hlth. Fac. Fin. Au. Rev. (Cedars-Sinai Med. Ctr.),
Ser. 1999 A, 6.13%, due 12/1/19 A3 2,231++
2,000 California Hlth. Fac. Fin. Au. Ref. Rev. (Cedars-Sinai Med. Ctr.),
Ser. 2005, 5.00%, due 11/15/21 A3 2,056++
1,000 California Hlth. Fac. Fin. Au. Rev. (Kaiser Permanente),
Ser. 1998 B, 5.00%, due 10/1/20 AAA 1,045++
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 Baa3 BBB 1,568++
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 1,019++
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 3,000++
1,000 California Statewide CDA Hlth. Fac. Rev. (Adventist Hlth.),
Ser. 2005 A, 5.00%, due 3/1/20 A A 1,033++
4,500 California St. Dept. of Wtr. Res. Pwr. Supply Rev., Ser. 2002 A,
5.75%, due 5/1/17 A2 BBB+ 4,938
1,000 California St. Dept. of Wtr. Res. Pwr. Supply Rev., Ser. 2002 A,
5.38%, due 5/1/22 A2 BBB+ 1,068
2,250 California St. G.O., Ser. 2002, 5.00%, due 10/1/17 A3 A 2,349
1,095 California St. Pub. Works Board Lease Rev. (California Comm.
Colleges), Ser. 2004 B, 5.50%, due 6/1/20 Baa1 BBB- 1,169
1,000 California St. Univ., Fresno Assoc., Inc. Rev. (Auxiliary Organization
Event Ctr.), Ser. 2002, 5.00%, due 7/1/12 Baa3 BBB- 1,078
2,000 California Statewide CDA Cert. of Participation Rev.
(Children's Hosp. Los Angeles), Ser. 1999, 5.13%,
due 8/15/19 A3 A 2,070++
2,000 California Statewide CDA Cert. of Participation Rev. (The
Internext Group), Ser. 1999, 5.38%, due 4/1/17 BBB- 2,039++
5,000 California Statewide CDA Hlth. Fac. Rev. (Mem. Hlth. Svcs.),
Ser. 2003 A, 6.00%, due 10/1/16 A3 A 5,498++
500 California Statewide CDA Rev. (East Valley Tourist Dev. Au.),
Ser. 2003 A, 9.25%, due 10/1/20 BB 545
3,000 California Statewide CDA Rev. (Kaiser Permanente), Ser. 2002 E,
4.70%, due 11/1/36 Putable 6/1/09 A3 3,089++
1,000 Central (CA) Joint Pwr. Hlth. Fin. Au. Cert. of Participation Rev.,
(Comm. Hosp. of Central California Proj.), Ser. 2000, 5.50%,
due 2/1/14 Baa2 BBB- 1,036++
1,020 Cerritos (CA) Pub. Fin. Au. Sub. Tax Allocation Rev.
(Cerritos Redev. Proj.), Ser. 2002 B, 4.40%, due 11/1/16 BBB 992
500 Coshocton Co. (OH) Env. Imp. Ref. Rev. (Smurfit-Stone
Container Enterprises, Inc. Proj.), Ser. 2005, 5.13%,
due 8/1/13 B 481++
1,000 Cumberland Co. (PA) West Shore Area Au. Hosp. Rev. (Holy Spirit
Hosp. of the Sisters of Christian Charity Proj.), Ser. 2001,
6.00%, due 1/1/18 BBB+ 1,069++
500 Dallas-Fort Worth (TX) Int'l. Arpt. Fac. Imp. Corp. Rev.,
Ser. 2004 A-1, 6.15%, due 1/1/16 Ba2 506++
1,000 De Kalb Co. (GA) Dev. Au. Ref. PCR (General Motors Corp. Proj.),
Ser. 2002, 6.00%, due 3/15/21 Baa3 BBB- 912++
1,210 Elk Grove (CA) Spec. Tax Rev. (East Franklin Comm. Fac.
Dist. Number 1), Ser. 2002 A, 5.38%, due 8/1/17 BB+ 1,301
See Notes to Schedule of Investments
9
PRINCIPAL AMOUNT SECURITY @ RATING @@ VALUE +
(000'S OMITTED) MOODY'S S&P (000'S OMITTED)
$ 1,270 Los Angeles (CA) Dept. of Wtr. & Pwr. Sys. Rev., Ser. 2001 A,
Sub. Ser. A-3, 5.38%, due 7/1/20 Aa3 AA- $ 1,289
750 Miami Beach (FL) Hlth. Fac. Au. Hosp. Ref. Rev. (Mount Sinai
Med. Ctr. Florida Proj.), Ser. 2004, 6.25%, due 11/15/09 Baa2 BB+ 801++
1,500 Morehouse Parish (LA) Ref. PCR (Int'l. Paper Co. Proj.),
Ser. 2001 A, 5.25%, due 11/15/13 Baa2 BBB 1,563++
500 New York City (NY) Ind. Dev. Agcy. Liberty Rev. (7 World Trade
Center, LLC Proj.), Ser. 2005 A, 6.25%, due 3/1/15 BB 532
1,405 North Carolina Muni. Pwr. Agcy. Number 1 Catawba Elec. Rev.,
Ser. 2003 A, 5.50%, due 1/1/14 A3 BBB+ 1,508
605 Oakland (CA) Redev. Agcy. Rev. (Coliseum Area Redev. Proj.),
Ser. 2003, 5.00%, due 9/1/16 A- 624
635 Oakland (CA) Redev. Agcy. Rev. (Coliseum Area Redev. Proj.),
Ser. 2003, 5.00%, due 9/1/17 A- 650
1,330 Puerto Rico Children's Trust Tobacco Settlement Asset-Backed
Rev., Ser. 2002, 5.38%, due 5/15/33 Baa3 BBB 1,367
440 Roseville (CA) Stone Point Comm. Fac. District No. 1 Special
Tax Rev., Ser. 2003, 5.70%, due 9/1/17 BB+ 454
830 San Diego (CA) Redev. Agcy. Sub. Parking Rev. (Centre City
Redev. Proj.), Ser. 2003 B, 4.80%, due 9/1/15 Baa2 A- 845
820 San Diego (CA) Redev. Agcy. Sub. Parking Rev. (Centre City
Redev. Proj.), Ser. 2003 B, 4.90%, due 9/1/16 Baa2 A- 833
3,000 San Francisco (CA) Bay Area Toll Au. Toll Bridge Rev., Ser. 2001 D,
5.00%, due 4/1/17 Aa3 AA 3,121
1,000 Santa Rosa (CA) Rancheria Tachi Yokut Tribe Enterprise Rev.,
Ser. 2003, 6.13%, due 3/1/13 BBB 1,007
1,000 South Gate (CA) Pub. Fin. Au. Tax Allocation Rev. (South Gate
Redev. Proj. No. 1), Ser. 2002, 5.00%, due 9/1/16 AAA 1,059
1,250 Tobacco Settlement Fin. Corp. (LA) Tobacco Settlement
Asset-Backed Rev., Ser. 2001 B, 5.50%, due 5/15/30 Baa3 BBB 1,293
600 Univ. of California Regents Cert. of Participation Rev. (San Diego
Campus & Sacramento Proj.), Ser. 2002 A, 5.25%, due 1/1/18 Aa2 634
750 Verrado (AZ) Comm. Fac. Dist. Number 1 G.O., Ser. 2003,
6.15%, due 7/15/17 BB- 798
250 Virgin Islands Pub. Fin. Au. Refinery Fac. Rev. (HOVENSA
Refinery), Ser. 2003, 6.13%, due 7/1/22 Baa3 BBB- 269
750 Virgin Islands Pub. Fin. Au. Rev. (Virgin Islands Matching
Fund Loan Notes), Ser. 1998 E, 6.00%, due 10/1/22 BBB 768
1,000 Virgin Islands Wtr. & Pwr. Au. Elec. Sys. Ref. Rev., Ser. 1998,
5.30%, due 7/1/18 BBB 1,000
---------------
74,838
---------------
TAX-EXEMPT VARIABLE RATE DEMAND NOTES--BACKED BY LETTERS OF CREDIT (1.0%)^
BANK OF AMERICA
44 Irvine (CA) Ltd. Oblig. Imp. (Assessment Dist. No 93-14),
Ser. 2000, 2.65%, VRDN due 11/1/05 VMIG1 A1+ 44
BANK OF NOVA SCOTIA
500 California Hsg. Fin. Agcy. Home Mtg. Rev., Ser. 2002 M, 2.71%,
VRDN due 11/1/05 VMIG1 A-1+ 500
10
PRINCIPAL AMOUNT SECURITY @ RATING @@ VALUE +
(000'S OMITTED) MOODY'S S&P (000'S OMITTED)
LLOYDS TSB BANK PLC
$ 500 California Hsg. Fin. Agcy. Home Mtge. Rev., Ser. 2001 R,
2.71%, VRDN due 11/1/05 VMIG1 A-1+ $ 500
---------------
1,044
---------------
TOTAL INVESTMENTS (158.3%) (COST $154,775) 157,846##
Cash, receivables and other assets, less liabilities (0.9%) 851
Liquidation Value of Auction Market Preferred Shares [(59.2%)] (59,000)
---------------
TOTAL NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS (100.0%) $ 99,697
---------------
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)
TAX-EXEMPT SECURITIES--PRE-REFUNDED BACKED BY U.S. GOVERNMENT SECURITIES (5.2%)
$ 2,225 Massachusetts St. Wtr. Poll. Abatement Trust Pre-Refunded
Rev. (Pool Prog.), Ser. 2001, 5.25%, due 2/1/16 P/R 8/1/11 Aaa AAA $ 2,400
5,100 Prince George's Co. (MD) Pre-Refunded Cons. Pub. Imp. G.O.,
Ser. 2001, 5.25%, due 12/1/16 P/R 12/1/11 Aaa AAA 5,588
20 San Antonio (TX) Pre-Refunded Cert. of Obligation G.O., Ser.
2002, 5.00%, due 2/1/14 P/R 2/1/12 Aa2 AA+ 21
7,205 Wisconsin St. G.O., Ser. 2002 C, 5.25%, due 5/1/17
P/R 5/1/12 Aaa AAA 7,801
---------------
15,810
---------------
TAX-EXEMPT SECURITIES--ESCROWED IN U.S. GOVERNMENT SECURITIES (0.6%)
1,670 Illinois Metro. Pier & Exposition Au. Dedicated St. Tax Ref.
Rev., Ser. 1998 A, 5.50%, due 6/15/17 AAA 1,888
---------------
TAX-EXEMPT SECURITIES--BACKED BY INSURANCE (68.4%)
AMERICAN MUNICIPAL BOND ASSURANCE CORP.
1,500 California St. Pub. Works Board Lease Rev., Ser. 2002 A,
5.25%, due 12/1/17 AAA 1,604
5,000 Chicago (IL) G.O., Ser. 1995 A-2, 6.25%, due 1/1/13 Aaa AAA 5,744
6,120 Chicago (IL) G.O., Ser. 2002 A, 5.38%, due 1/1/17 Aaa AAA 6,721
4,220 Colorado Springs (CO) Util. Sys. Sub. Lien Ref. Rev.,
Ser. 2002 A, 5.38%, due 11/15/18 AAA 4,557
4,100 Fargo (ND) Hlth. Sys. Rev. (Meritcare Obligated Group),
Ser. 2002 A, 5.63%, due 6/1/17 AAA 4,459++
1,065 Indiana St. Recreational Dev. Comm. Rev., Ser. 2002,
5.25%, due 7/1/18 AAA 1,128
1,125 Indiana St. Recreational Dev. Comm. Rev., Ser. 2002,
5.25%, due 7/1/19 AAA 1,189
3,000 Massachusetts Port Au. Spec. Fac. Rev. (Delta Air Lines,
Inc. Proj.), Ser. 2001 A, 5.50%, due 1/1/19 AAA 3,099++
1,700 New Hampshire Hlth. & Ed. Fac. Au. Rev. (Univ. Sys. of
New Hampshire), Ser. 1992, 5.38%, due 7/1/17 AAA 1,835
7,000 Palm Beach Co. (FL) Sch. Board Cert. of Participation,
Ser. 2001 B, 5.38%, due 8/1/17 AAA 7,571
4,610 Thornton (CO) Cert. of Participation, Ser. 2002,
5.38%, due 12/1/16 Aaa AAA 4,986
FINANCIAL GUARANTY INSURANCE CO.
4,000 Denver (CO) City & Co. Arpt. Sys. Ref. Rev., Ser. 2002 E,
5.25%, due 11/15/14 Aaa AAA 4,206
3,075 Detroit (MI) Sch. Dist. Sch. Bldg. & Site Imp. G.O.,
Ser. 2002 A, 5.50%, due 5/1/15 AAA 3,411
3,235 Houston (TX) Arpt. Sys. Sub. Lien Ref. Rev., Ser. 2001 A,
5.50%, due 7/1/16 AAA 3,448
4,355 Las Vegas (NV) Valley Wtr. Dist. Ref. & Wtr. Imp. G.O.,
Ser. 2003 A, 5.25%, due 6/1/16 Aaa AAA 4,679
4,935 Massachusetts St. Hlth. & Ed. Fac. Au. Rev. (New England
Med. Ctr. Hosp.), Ser. 2002 H, 5.38%, due 5/15/16 AAA 5,337++
2,140 Mt. Pleasant Town (SC) Waterworks & Swr. Sys. Ref. & Imp.
Rev., Ser. 2002, 5.25%, due 12/1/17 AAA 2,310
2,080 Oakland (CA) Redev. Agcy. Sub. Tax Allocation Rev. (Central
Dist. Redev. Proj.), Ser. 2003, 5.50%, due 9/1/18 AAA 2,274
8,140 Orange Co. (FL) Sales Tax Ref. Rev., Ser. 2002 A,
5.13%, due 1/1/18 Aaa AAA 8,684
2,000 Philadelphia (PA) Arpt. Ref. Rev. (Philadelphia Arpt. Sys.),
Ser. 1998 A, 5.38%, due 6/15/14 AAA 2,105
12
PRINCIPAL AMOUNT SECURITY @ RATING @@ VALUE +
(000'S OMITTED) MOODY'S S&P (000'S OMITTED)
$ 6,250 Port of Seattle (WA) Sub. Lien Rev., Ser. 2002 B, 5.50%,
due 9/1/16 AAA $ 6,663
400 Prince George's Co. (MD) Unrefunded Balance Cons. Pub.
Imp. G.O., Ser. 2001, 5.25%, due 12/1/16 Aaa AAA 433
1,000 Sarasota Co. (FL) Util. Sys. Ref. Rev., Ser. 2002 C,
5.25%, due 10/1/20 Aaa AAA 1,069
2,500 Tacoma (WA) Wtr. Sys. Rev., Ser. 2001, 5.13%, due 12/1/19 AAA 2,624
FINANCIAL SECURITY ASSURANCE INC.
3,495 Bi State (MO-IL) Dev. Agcy. Metro. Dist. Rev. (Metrolink
Cross Co. Extension Proj.), Ser. 2002 B, 5.25%, due 10/1/16 Aaa AAA 3,791
1,100 Charleston Co. (SC) Sch. Dist. G.O., Ser. 2001,
5.00%, due 2/1/18 Aa1 1,161
3,600 Corpus Christi (TX) Tax & Muni. Hotel Occupancy Tax G.O.,
Ser. 2002, 5.50%, due 9/1/17 AAA 3,924
1,935 Dallas-Fort Worth (TX) Int'l. Arpt. Imp. Rev., Ser. 2004 B,
5.50%, due 11/1/18 Aaa AAA 2,074
8,800 Energy Northwest (WA) Elec. Ref. Rev. (Proj. No. 3),
Ser. 2001 A, 5.50%, due 7/1/17 Aaa AAA 9,523
7,000 Harris Co. (TX) Toll Road Sr. Lien Ref. Rev., Ser. 2002,
5.38%, due 8/15/16 AAA 7,597
2,580 Indianapolis (IN) Local Pub. Imp. Rev. (Indianapolis Arpt.
Au. Proj.), Ser. 2003 A, 5.63%, due 1/1/17 AAA 2,777
2,000 Kane, Cooke, & DuPage Cos. (IL) Elgin Sch. Dist.
Number U-46 G.O., Ser. 1998, 5.35%, due 1/1/15 Aaa 2,154
5,000 King & Snohomish Cos. (WA) Northshore Sch. Dist.
Number 417 G.O., Ser. 2002, 5.50%, due 12/1/17 Aaa AAA 5,524
4,260 King Co. (WA) Pub. Trans. Sales Tax Ref. G.O., Ser. 2002,
5.38%, due 12/1/14 Aaa AAA 4,629
3,015 Knox Co. (TN) Hlth., Ed., & Hsg. Fac. Board Hosp. Ref. & Imp.
Rev., Ser. 2002 A, 5.50%, due 1/1/18 Aaa AAA 3,230++
1,725 Maine Muni. Bond Bank Rev., Ser. 1998 C,
5.35%, due 11/1/18 AAA 1,844
5,000 New Jersey Bldg. Au. St. Bldg. Ref. Rev., Ser. 2002 B,
5.25%, due 12/15/15 AAA 5,384
4,665 South Carolina St. Pub. Svc. Au. Rev., Ser. 2002 B,
5.38%, due 1/1/18 Aaa AAA 5,009
4,200 Tarrant (TX) Reg. Wtr. Dist. Wtr. Ref. & Imp. Rev., Ser. 2002,
5.38%, due 3/1/16 Aaa AAA 4,555
5,395 Truckee Meadows (NV) Wtr. Au. Wtr. Rev., Ser. 2001 A,
5.50%, due 7/1/15 AAA 5,812
1,370 Wisconsin Hlth. & Ed. Fac. Au. Rev. (Aurora Med. Group, Inc.
Proj.), Ser. 1996, 6.00%, due 11/15/11 Aaa AAA 1,529++
MUNICIPAL BOND INVESTORS ASSURANCE CORP.
1,465 Arizona Energy Management Svcs. (Main) LLC Energy
Conservation Rev. (Arizona St. Univ. Proj.-Main Campus),
Ser. 2002, 5.25%, due 7/1/17 AAA 1,572
3,000 CDP-King Co. III (WA) Lease Rev. (King Street Ctr. Proj.),
Ser. 1997, 5.13%, due 6/1/17 Aaa AAA 3,094
5,335 Clark Co. (NV) Passenger Fac. Charge Ref. Rev.
(Las Vegas-McCarran Int'l. Arpt. Proj.), Ser. 2002 A,
5.25%, due 7/1/10 AAA 5,630
4,575 Henry Co. (GA) Wtr. & Swr. Au. Wtr. & Swr. Ref. Rev.,
Ser. 2002 A, 5.13%, due 2/1/17 Aaa AAA 4,922
4,955 Houston (TX) Pub. Imp. Ref. G.O., Ser. 2002,
5.25%, due 3/1/17 AAA 5,289
See Notes to Schedule of Investments
13
PRINCIPAL AMOUNT SECURITY @ RATING @@ VALUE +
(000'S OMITTED) MOODY'S S&P (000'S OMITTED)
$ 5,000 Illinois G.O., First Ser. 2002, 5.25%, due 10/1/14 Aaa $ 5,390
3,000 Illinois Hlth. Fac. Au. Rev. (Loyola Univ. Hlth. Sys.), Ser. 1997 A,
6.00%, due 7/1/14 Aaa AAA 3,414++
1,000 Indiana Muni. Pwr. Agcy. Pwr. Supply Sys. Rev., Ser. 2002 B,
5.25%, due 1/1/18 Aaa AAA 1,066
1,850 Massachusetts St. G.O., Ser. 2002 E, 5.38%, due 1/1/18 AAA 2,018
5,000 Michigan St. Hsg. Dev. Au. Single-Family Mtge. Rev., Ser. 2001 A,
5.30%, due 12/1/16 AAA 5,131
2,710 Newnan (GA) Hosp. Au. Rev. Anticipation Certificate
(Newnan Hosp., Inc. Proj.), Ser. 2002, 5.50%, due 1/1/18 Aaa 2,955++
1,910 Southmost (TX) Reg. Wtr. Au. Wtr. Supply Contract Rev.
(Desalination Plant Proj.), Ser. 2002, 5.50%, due 9/1/19 Aaa 2,072
1,000 Trinity (TX) River Au. Imp. & Ref. Rev. (Tarrant Co. Wtr. Proj.),
Ser. 2003, 5.50%, due 2/1/16 AAA 1,106
3,000 Washington St. G.O., Ser. 1998 C, 6.00%, due 7/1/12 AAA 3,385
-------------
207,697
-------------
TAX-EXEMPT SECURITIES--BACKED BY INSURANCE (1.2%)
AMERICAN MUNICIPAL BOND ASSURANCE CORP.
3,310 New Hampshire Hlth. Ed. Fac. Au. Rev. (Univ. Sys. of
New Hampshire), Ser. 1992, 5.38%, due 7/1/17 AAA 3,641
-------------
TAX-EXEMPT SECURITIES--OTHER (81.1%)
4,145 Anson (TX) Ed. Fac. Corp. Std. Hsg. Rev. (Univ. of Texas at
Dallas-Waterview Park Proj.), Ser. 2002, 5.00%, due 1/1/23 A 4,145++
1,000 Austin (TX) Convention Enterprises, Inc. Convention Ctr.
Hotel First Tier Rev., Ser. 2001 A, 6.38%, due 1/1/16 Baa3 BBB- 1,055
1,555 Badger (WI) Tobacco Asset Securitization Corp. Tobacco
Settlement Asset-Backed Rev., Ser. 2002, 6.13%, due 6/1/27 Baa3 BBB 1,641
2,000 Boone Co. (MO) Hosp. Ref. Rev. (Boone Hosp. Ctr.),
Ser. 2002, 5.05%, due 8/1/20 A3 2,053++
2,425 Branson (MO) Dev. Fin. Board Infrastructure Fac. Board
Rev., Ser. 2003 A, 5.00%, due 12/1/17 Baa1 2,455
750 Branson (MO) Ind. Dev. Au. Ltd. Oblig. Tax Increment Rev.
(Branson Landing-Retail Proj.), Ser. 2005, 5.25%, due 6/1/21 752^^
3,300 Brazos (TX) River Au. Ref. PCR (TXU Energy Co. LLC Proj.),
Ser. 2003 A, 6.75%, due 4/1/38 Putable 4/1/13 Baa2 BBB 3,678++
1,000 Brazos (TX) River Au. Ref. PCR (TXU Energy Co. LLC Proj.),
Ser. 2003 D, 5.40%, due 10/1/29 Putable 10/1/14 Baa2 BBB 1,050++
1,000 Brazos (TX) River Au. Ref. Rev. (Reliant Energy, Inc. Proj.),
Ser. 1999 B, 7.75%, due 12/1/18 BBB- 1,101++
4,000 Brazos (TX) River Harbor Navigation Dist. Env. Fac. Rev.
(Dow Chemical Co. Proj.), Ser. 2002 B-2, 4.75%,
due 5/15/33 Putable 5/15/07 A3 A- 4,073++
2,500 Broward Co. (FL) G.O., Ser. 2001 A, 5.25%, due 1/1/18 Aa1 2,676###
2,000 California Poll. Ctrl. Fin. Au. Solid Waste Disp. Rev. (Waste
Management, Inc. Proj.), Ser. 2005 C, 5.13%, due 11/1/23 2,000^^++#
3,500 California Poll. Ctrl. Fin. Au. Solid Waste Disp. Rev.
(Republic Svc., Inc. Proj.), Ser. 2002 B, 5.25%, due 6/1/23 Baa2 BBB+ 3,659++
2,500 California St. Dept. of Wtr. Res. Pwr. Supply Rev.,
Ser. 2002 A, 5.75%, due 5/1/17 A2 BBB+ 2,743
3,460 California St. Dept. of Wtr. Res. Pwr. Supply Rev.,
Ser. 2002 A, 5.38%, due 5/1/22 A2 BBB+ 3,697
1,240 California Statewide CDA Hlth. Fac. Rev. (Mem. Hlth. Svcs.)
Ser. 2003 A, 6.00%, due 10/1/16 A3 A 1,363++
1,500 California Statewide CDA Rev. (East Valley Tourist Dev. Au.),
Ser. 2003 A, 9.25%, due 10/1/20 BB 1,634
14
PRINCIPAL AMOUNT SECURITY @ RATING @@ VALUE +
(000'S OMITTED) MOODY'S S&P (000'S OMITTED)
$ 1,500 Chicago (IL) Metro. Wtr. Reclamation Dist. Cap. Imp. G.O.,
Ser. 2002 C, 5.38%, due 12/1/16 AAA $ 1,636
1,000 Clark Co. (WA) Vancouver Sch. Dist. Number 37 G.O.,
Ser. 1998, 5.13%, due 12/1/12 Aa3 1,072
1,000 Coshocton Co. (OH) Env. Imp. Ref. Rev. (Smurfit-Stone
Container Enterprises, Inc. Proj.), Ser. 2005, 5.13%,
due 8/1/13 B 962++
1,765 Cumberland Co. (PA) West Shore Area Au. Hosp. Rev.,
(Holy Spirit Hosp. of the Sisters of Christian Charity Proj.),
Ser. 2001, 6.05%, due 1/1/19 BBB+ 1,887++
2,100 Dallas-Fort Worth (TX) Int'l. Arpt. Fac. Imp. Corp.
Rev., Ser. 2004 A-1, 6.15%, due 1/1/16 Ba2 2,127++
4,210 DCH Hlth. Care Au. (AL) Hlth. Care Fac. Rev., Ser. 2002,
5.25%, due 6/1/14 A1 A+ 4,491
1,000 Delaware River (PA-NJ) Joint Toll Bridge Comm. Sys.
Rev., Ser. 2003, 5.25%, due 7/1/18 A2 A- 1,078
1,000 Denton, Tarrant, & Wise Cos. (TX) Northwest Ind. Sch. Dist.
Unlimited Sch. Bldg. & Ref. G.O., Ser. 2002, 5.50%,
due 8/15/17 AAA 1,095
2,000 Denver (CO) City & Co. Arpt. Sys. Rev., Ser. 1991 D,
7.75%, due 11/15/13 AAA 2,338
4,495 Dist. of Columbia (Washington, D.C.) Ref. G.O., Ser. 2002 C,
5.25%, due 6/1/13 AAA 4,814
1,750 Ector Co. (TX) Hosp. Dist. Hosp. Rev., Ser. 2002 A,
5.63%, due 4/15/16 A3 BBB+ 1,828
1,745 Ector Co. (TX) Hosp. Dist. Hosp. Rev., Ser. 2002 A,
5.63%, due 4/15/17 A3 BBB+ 1,818
3,000 Fiddlers Creek (FL) Comm. Dev. Dist. Number 2 Spec.
Assessment Rev., Ser. 2003 A, 6.00%, due 5/1/16 BB- 3,100
2,000 Freeborn Co. (MN) Hsg. & Redev. Au. Lease Rev. (Criminal
Justice Ctr. Proj.), Ser. 2002, 5.38%, due 2/1/17 Baa1 2,096
3,000 Golden St. (CA) Tobacco Securitization Corp. Tobacco
Settlement Asset-Backed Rev., Ser. 2003 A-1, 6.25%,
due 6/1/33 Baa3 BBB 3,290
1,000 Hopewell (VA) Ind. Dev. Au. Env. Imp. Ref.
Rev. (Smurfit-Stone Container Enterprises, Inc. Proj.),
Ser. 2005, 5.25%, due 6/1/15 B 953++
5,130 Illinois Ed. Fac. Au. Rev. (Field Museum of Natural History),
Ser. 2002, 4.30%, due 11/1/36 A2 A 5,123++
3,560 Indiana Bond Bank Rev., Ser. 2002 B, 5.25%, due 2/1/18 Baa2 A- 3,812
10,000 Indiana Bond Bank Rev. (St. Revolving Fund Prog.),
Ser. 2001 A, 5.38%, due 2/1/17 AAA 10,892
2,050 Indiana St. Hlth. Fac. Fin. Au. Rev. (Hlth. Sys. Sisters of
St. Francis), Ser. 2001, 5.35%, due 11/1/15 Aa3 A 2,157++
1,070 Ingham & Clinton Cos. (MI) East Lansing Bldg. Au. Ref. G.O.,
Ser. 1999, 5.25%, due 10/1/16 AA 1,129
3,000 Iowa Tobacco Settlement Au. Tobacco Settlement Asset-Backed
Rev., Ser. 2001 B, 5.30%, due 6/1/25 Baa3 BBB 3,051
2,000 Jasper (IN) Hosp. Au. Hosp. Fac. Ref. Rev. (Mem. Hosp. &
Hlth. Care Ctr. Proj.), Ser. 2002, 5.50%, due 11/1/17 AA 2,147++
1,050 Kent Co. (MI) Forest Hills Pub. Sch. Unlimited G.O.,
Ser. 2000, 5.25%, due 5/1/19 Aa2 1,130
2,000 Lehigh Co. (PA) Gen. Purp. Au. Rev. (KidsPeace Oblig. Group),
Ser. 1998, 6.00%, due 11/1/23 B3 1,874++
2,000 Lubbock (TX) Hlth. Fac. Dev. Corp. Rev. (St. Joseph Hlth. Sys.),
Ser. 1998, 5.25%, due 7/1/16 Aa3 AA- 2,092++
See Notes to Schedule of Investments
15
PRINCIPAL AMOUNT SECURITY @ RATING @@ VALUE +
(000'S OMITTED) MOODY'S S&P (000'S OMITTED)
$ 1,210 Lyons (NY) Comm. Hlth. Initiatives Corp. Fac. Rev.,
Ser. 2004, 5.50%, due 9/1/14 A2 $ 1,298
1,375 Macomb Co. (MI) New Haven Comm. Sch. Bldg. & Site G.O.,
Ser. 2002, 5.25%, due 5/1/17 Aa1 AA+ 1,481
1,000 Maryland St. Hlth. & Higher Ed. Fac. Au. Rev. (Union Hosp.
of Cecil Co.), Ser. 2002, 5.50%, due 7/1/14 A3 1,065++
2,400 Mashantucket (CT) Western Pequot Tribe Spec. Rev., Sub.
Ser. 1997 B, 5.70%, due 9/1/12 Baa3 2,521**
2,450 Massachusetts St. Hlth. & Ed. Fac. Au. Rev. (Caritas Christi
Oblig. Group), Ser. 1999 A, 5.70%, due 7/1/15 Baa3 BBB 2,516++
2,810 Massachusetts St. Hlth. & Ed. Fac. Au.
Rev. (Milford-Whitinsville Reg. Hosp.), Ser. 1998 C,
5.75%, due 7/15/13 Baa3 BBB- 2,876++
5,030 Massachusetts St. Wtr. Poll. Abatement Trust Rev.
(MWRA Prog.), Ser. 2002 A, 5.25%, due 8/1/19 Aaa AAA 5,404
2,775 Massachusetts St. Wtr. Poll. Abatement Trust Unrefunded
Balance Rev. (Pool Prog.), Ser. 2001, 5.25%, due 2/1/16 Aaa AAA 2,982
3,085 Memphis-Shelby Co. (TN) Arpt. Au. Spec. Fac. Ref.
Rev. (Federal Express Corp.), Ser. 2002, 5.05%, due 9/1/12 Baa2 BBB 3,260++
1,750 Miami Beach (FL) Hlth. Fac. Au. Hosp. Ref. Rev. (Mount Sinai
Med. Ctr. Florida Proj.), Ser. 2004, 6.25%, due 11/15/09 Ba2 BB+ 1,868++
1,500 Michigan St. Bldg. Au. Rev. (Fac. Prog.), Ser. 2001 II,
5.50%, due 10/15/18 Aa3 AA- 1,650
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 2,193
915 Missouri St. Hsg. Dev. Comm. Multi-Family Hsg. Rev.,
Ser. 2001 II, 5.25%, due 12/1/16 AA 955
470 Missouri St. Hsg. Dev. Comm. Multi-Family Hsg. Rev.,
Ser. 2001 III, 5.05%, due 12/1/15 AA 488
5,000 Montgomery Co. (PA) Higher Ed. & Hlth. Au. Hosp. Rev.
(Abington Mem. Hosp. Proj.), Ser. 2002 A, 5.00%, due 6/1/19 A 5,075++
3,000 Moraine (OH) Solid Waste Disp. Rev. (General Motors Corp.
Proj.), Ser. 1994, 6.75%, due 7/1/14 Baa3 BBB- 2,998++
2,500 Morehouse Parish (LA) Ref. PCR (Int'l. Paper Co. Proj.),
Ser. 2001 A, 5.25%, due 11/15/13 Baa2 BBB 2,605++
2,000 MuniMae Subordinated Cumulative Perpetual Preferred Shares,
4.70%, due 6/30/49 Putable 9/30/09 Baa2 1,979**
2,000 Nevada St. Cap. Imp. Ltd. G.O., Ser. 1998 B,
5.13%, due 4/15/17 Aa2 2,086
1,500 New Jersey Econ. Dev. Au. Cigarette Tax Rev., Ser. 2004,
5.63%, due 6/15/19 Baa2 BBB 1,565
6,900 New Jersey Ed. Fac. Au. Rev. (Stevens Institute of Technology),
Ser. 2002 C, 5.25%, due 7/1/17 Baa2 BBB+ 7,250++
4,000 New Jersey Hlth. Care Fac. Fin. Au. Rev. (Somerset
Med. Ctr. Issue), Ser. 2003, 5.50%, due 7/1/18 Baa3 4,139++
3,250 New York City (NY) G.O., Ser. 2002 C, 5.50%, due 8/1/15 A1 A 3,520
2,580 New York City (NY) IDA Civic Fac. Rev. (Lycee Francais de
New York Proj.), Ser. 2002 A, 5.50%, due 6/1/14 A 2,706++
2,750 New York City (NY) Ind. Dev. Agcy. Liberty Rev. (7 World
Trade Center, LLC Proj.), Ser. 2005 A, 6.25%, due 3/1/15 BB 2,926
1,000 New York Convention Ctr. Operating Corp. Cert. of
Participation (Yale Bldg. Acquisition Proj.),
Ser. 2003, 5.25%, due 6/1/08 BB+ 1,010
3,500 New York St. Dorm. Au. Personal Income Tax Rev.,
Ser. 2003 A, 5.38%, due 3/15/20 AA 3,861
16
PRINCIPAL AMOUNT SECURITY @ RATING @@ VALUE +
(000'S OMITTED) MOODY'S S&P (000'S OMITTED)
$ 1,300 New York St. Urban Dev. Corp. Ref. Rev. (Correctional Cap. Fac.),
Ser. 1998, 5.00%, due 1/1/14 A2 AA- $ 1,360
4,780 North Central (TX) Hlth. Fac. Dev. Corp. Hosp. Ref.
Rev. (Baylor Hlth. Care Sys. Proj.), Ser. 1998,
5.10%, due 5/15/13 Aa3 AA- 5,023++
3,760 Ohio Air Quality Dev. Au. Env. Imp. Ref. Rev. (USX Corp.
Proj.), Ser. 1995, 5.00%, due 11/1/15 Baa1 3,933++
2,085 Palm Beach Co. (FL) Hlth. Fac. Au. Hosp. Ref. Rev. (BRCH
Corp. Oblig. Group), Ser. 2001, 5.00%, due 12/1/12 A 2,180++
1,000 Pennsylvania Econ. Dev. Fin. Au. Res. Rec. Ref. Rev. (Colver Proj.),
Ser. 2005 G, 5.13%, due 12/1/15 BB+ 986
3,850 Royal Oak (MI) Hosp. Fin. Au. Hosp. Ref. Rev. (William
Beaumont Hosp.), Ser. 1996 I, 6.25%, due 1/1/12 Aa3 AA- 4,348++
6,795 San Antonio (TX) Ind. Sch. Dist. Unlimited Tax G.O.,
Ser. 2001 B, 5.38%, due 8/15/17 Aaa AAA 7,298
1,240 San Antonio (TX) Unrefunded Balance Cert. of Obligation
G.O., Ser. 2002, 5.00%, due 2/1/14 Aa2 AA+ 1,306
740 San Diego (CA) Redev. Agcy. Sub. Parking Rev. (Centre City
Redev. Proj.), Ser. 2003 B, 5.00%, due 9/1/17 Baa2 A- 758
2,000 Sayre (PA) Hlth. Care Fac. Au. Rev. (Guthrie Hlth. Proj.),
Ser. 2002 A, 5.75%, due 12/1/21 A- 2,135++
1,625 Skagit Co. (WA) Pub. Hosp. Dist. Ref. Rev., Ser. 2003,
6.00%, due 12/1/18 Baa3 1,664
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 2,546++
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 2,149++
155 Spokane Co. (WA) Ltd. Tax G.O., Ser. 1998,
5.10%, due 12/1/17 Aa3 160
2,540 St. Paul (MN) Port Au. Lease Rev. (Office Bldg. at Cedar
Street), Ser. 2002, 5.00%, due 12/1/17 Aa2 AA+ 2,676
2,000 Summit Academy (MI) North Pub. Sch. Academy Ref. Rev.,
Ser. 2005, 5.25%, due 11/1/20 BB+ 1,962
465 Texas Std. Hsg. Corp. Std. Hsg. Rev. (Midwestern St. Univ.
Proj.), Ser. 2002, 5.50%, due 9/1/12 Baa3 472
1,000 Tobacco Settlement Fin. Corp. (LA) Tobacco Settlement
Asset-Backed Rev., Ser. 2001 B, 5.50%, due 5/15/30 Baa3 BBB 1,035
1,085 Tyler (TX) Hlth. Fac. Dev. Corp. Hosp. Rev. (Mother Frances
Hosp. Reg. Hlth. Care Ctr. Proj.), Ser. 2003,
5.25%, due 7/1/13 Baa1 1,115
3,500 Union Co. (SC) IDR (Federal Paper Board Co., Inc. Proj.),
Ser. 1989, 4.55%, due 11/1/09 Baa2 BBB 3,502++
2,950 Univ. of Texas Board of Regents Fin. Sys. Rev., Ser. 1999 B,
5.38%, due 8/15/18 AAA 3,157
1,900 Univ. of Wisconsin Hosp. & Clinics Au. Hosp. Rev., Ser. 2002
B, 5.50%, due 4/1/12 A1 2,032
1,750 Verrado (AZ) Comm. Fac. Dist. Number 1 G.O., Ser. 2003,
6.15%, due 7/15/17 BB- 1,862
1,000 Virgin Islands Pub. Fin. Au. Refinery Fac. Rev. (HOVENSA
Refinery), Ser. 2003, 6.13%, due 7/1/22 Baa3 BBB- 1,078
1,500 Virgin Islands Pub. Fin. Au. Refinery Fac. Rev. (HOVENSA
Refinery), Ser. 2004, 5.88%, due 7/1/22 Baa3 BBB- 1,590++
1,000 Virginia Beach (VA) Dev. Au. Residential Care Fac. Mtge. Ref.
Rev. (Westminster-Caterbury of Hampton Roads, Inc.), Ser. 2005,
5.00%, due 11/1/22 989^^++
3,125 Washington St. Hlth. Care Fac. Au. Rev. (Yakima Valley Mem.
Hosp. Assoc.), Ser. 2002, 5.00%, due 12/1/17 A 3,190++
See Notes to Schedule of Investments
17
PRINCIPAL AMOUNT SECURITY @ RATING @@ VALUE +
(000'S OMITTED) MOODY'S S&P (000'S OMITTED)
$ 1,000 Washington St. Var. Purp. G.O., Ser. 1999 A,
4.75%, due 7/1/17 Aa1 AA+ $ 1,014
2,000 Westmoreland Co. (PA) IDA Gtd. Rev. (National Waste &
Energy Corp., Valley Landfill Expansion Proj.), Ser. 1993,
5.10%, due 5/1/18 BBB 2,064++
2,780 Wisconsin St. Hlth. & Ed. Fac. Au. Rev. (Kenosha Hosp. & Med.
Ctr., Inc. Proj.), Ser. 1999, 5.50%, due 5/15/15 A 2,924++
---------------
246,552
---------------
TAX-EXEMPT VARIABLE RATE DEMAND NOTES--OTHER (0.2%)^
600 Gulf Coast (TX) Waste Disp. Au. Env. Fac. Rev. (BP Amoco
Chemical Co. Proj.), Ser. 2003, 2.79%, due 11/1/05 VMIG1 A-1+ 600++
---------------
TOTAL INVESTMENTS (156.7%) (COST $466,002) 476,188##
Cash, receivables and other assets, less liabilities (2.3%) 7,076
Liquidation Value of Auction Market Preferred Shares [(59.0%)] (179,400)
---------------
TOTAL NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS (100.0%) $ 303,864
---------------
18
SCHEDULE OF INVESTMENTS NEW YORK INTERMEDIATE MUNICIPAL FUND INC.
PRINCIPAL AMOUNT SECURITY @ RATING @@ VALUE +
(000'S OMITTED) MOODY'S S&P (000'S OMITTED)
TAX-EXEMPT SECURITIES--BACKED BY INSURANCE (34.2%)
AMERICAN CAPITAL ACCESS
$ 1,060 Puerto Rico Ind., Tourist, Ed., Med., & Env. Ctrl. Fac. Rev.
(Polytechnic Univ. of Puerto Rico Proj.), Ser. 2002 A,
5.25%, due 8/1/16 A $ 1,098++
AMERICAN MUNICIPAL BOND ASSURANCE CORP.
2,000 Metro. Trans. Au. (NY) Ref. Rev., Ser. 2002 A,
5.50%, due 11/15/15 AAA 2,198
2,920 New York City (NY) IDA Civic Fac. Rev. (Packer Collegiate
Institute Proj.), Ser. 2002, 5.00%, due 6/1/22 Aaa AAA 3,034++
960 New York City (NY) Muni. Wtr. Fin. Au. Wtr. & Swr. Sys. Rev.,
Ser. 1992 A, 5.88%, due 6/15/13 Aaa 1,093
2,025 New York City (NY) Trans. Fin. Au. Ref. Rev., Ser. 2002 C,
5.25%, due 8/1/17 AAA 2,166
2,410 New York St. Dorm. Au. Rev. (Rochester Institute of
Technology Proj.), Ser. 2002 A, 5.25%, due 7/1/19 Aaa 2,569++
3,000 Port Authority of NY & NJ Rev., Ser. 2002,
5.50%, due 12/15/12 AAA 3,220
1,535 Ulster Co. (NY) Res. Rec. Agcy. Solid Waste Sys. Ref. Rev.,
Ser. 2002, 5.25%, due 3/1/16 AAA 1,652
FINANCIAL GUARANTY INSURANCE CO.
2,505 Metro. Trans. Au. (NY) Dedicated Tax Fund Rev., Ser. 2001 A,
5.25%, due 11/15/14 AAA 2,696
FINANCIAL SECURITY ASSURANCE INC.
500 Long Island (NY) Pwr. Au. Elec. Sys. Rev., Ser. 1998 A,
5.13%, due 12/1/16 Aaa AAA 525
1,410 New York City (NY) Hlth. & Hosp. Corp. Rev., Ser. 2002 A,
5.50%, due 2/15/13 AAA 1,536
MUNICIPAL BOND INVESTORS ASSURANCE CORP.
2,000 New York St. Dorm. Au. Insured Rev. (Long Island Jewish Med.
Ctr.), Ser. 1998, 5.00%, due 7/1/18 AAA 2,059++
1,600 New York St. Dorm. Au. Insured Rev. (The Culinary Institute
of America), Ser. 1999, 5.38%, due 7/1/15 AAA 1,717++
1,980 New York St. Dorm. Au. Rev. (New York Med. College Proj.),
Ser. 1998, 5.00%, due 7/1/21 Aaa AAA 2,044++
---------------
27,607
---------------
TAX-EXEMPT SECURITIES--OTHER (122.6%)
3,000 Albany (NY) IDA Civic Fac. Rev. (Charitable Leadership
Foundation Ctr. for Med. Science Proj.), Ser. 2002 A,
6.00%, due 7/1/19 Baa3 3,201
800 Brazos (TX) River Au. Ref. PCR (TXU Energy Co. LLC Proj.),
Ser. 2003 A, 6.75%, due 4/1/38 Putable 4/1/13 Baa2 BBB- 892++
750 Brazos (TX) River Au. Ref. Rev. (Reliant Energy, Inc. Proj.),
Ser. 1999 B, 7.75%, due 12/1/18 BBB- 826++
1,000 Brazos (TX) River Harbor Navigation Dist. of Brazoria Co.
Env. Fac. Rev. (Dow Chemical Co. Proj.), Ser. 2002 A-4,
5.20%, due 5/15/33 Putable 5/15/08 A3 A- 1,029++
500 Coshocton Co. (OH) Env. Imp. Ref. Rev. (Smurfit-Stone
Container Enterprises, Inc. Proj.), Ser. 2005,
5.13%, due 8/1/13 B 481++
1,590 Cumberland Co. (PA) West Shore Area Au. Hosp. Rev. (Holy
Spirit Hosp. of the Sisters of Christian Charity Proj.),
Ser. 2001, 5.90%, due 1/1/17 BBB+ 1,694++
See Notes to Schedule of Investments
19
PRINCIPAL AMOUNT SECURITY @ RATING @@ VALUE +
(000'S OMITTED) MOODY'S S&P (000'S OMITTED)
$ 400 Dallas-Fort Worth (TX) Int'l. Arpt. Fac. Imp. Corp. Rev.,
Ser. 2004 A-1, 6.15%, due 1/1/16 Ba2 $ 405++
1,000 De Kalb Co. (GA) Dev. Au. Ref. PCR (General Motors Corp.
Proj.), Ser. 2002, 6.00%, due 3/15/21 Ba2 BB 912++
1,000 Dutchess Co. (NY) IDA Civic Fac. Ref. Rev. (Marist
College Proj.), Ser. 2003 A, 5.15%, due 7/1/17 Baa1 1,044++
2,000 Dutchess Co. (NY) IDA Ind. Dev. Rev. (IBM Proj.),
Ser. 1999, 5.45%, due 12/1/29 A1 A+ 2,121++
2,000 Long Island Pwr. Au. (NY) Elec. Sys. Gen. Rev.,
Ser. 1998 A, 5.50%, due 12/1/13 Aaa AAA 2,234
1,385 Lyons (NY) Comm. Hlth. Initiatives Corp. Fac. Rev.,
Ser. 2004, 5.50%, due 9/1/14 A2 1,486
500 Miami Beach (FL) Hlth. Fac. Au. Hosp. Ref. Rev.
(Mount Sinai Med. Ctr. of Florida Proj.), Ser. 2004,
6.25%, due 11/15/09 Ba2 BB+ 534++
980 Monroe Co. (NY) IDA Std. Hsg. Rev. (Collegiate Hsg.
Foundation - Rochester Institute of Technology Proj.),
Ser. 1999 A, 5.25%, due 4/1/19 Baa3 986++
1,000 Monroe Co. (NY) Newpower Corp. Pwr. Fac. Rev.,
Ser. 2003, 5.10%, due 1/1/16 BBB 1,028
1,000 Monroe (NY) Pub. Imp. Ref. G.O., Ser. 1996,
6.00%, due 3/1/13 Baa1 BBB+ 1,109
1,000 Morehouse Parish (LA) Ref. PCR (Int'l. Paper Co. Proj.),
Ser. 2001 A, 5.25%, due 11/15/13 Baa2 BBB 1,042++
1,000 New York City (NY) G.O., Ser. 1998 J, 5.00%, due 8/1/11 A1 A 1,040
1,000 New York City (NY) G.O., Ser. 2002 A, 5.75%, due 8/1/16 A1 A 1,095
750 New York City (NY) G.O., Ser. 2002 C, 5.50%, due 8/1/15 A1 A 812
4,000 New York City (NY) Hsg. Dev. Corp. Multi-Family Hsg. Rev.,
Ser. 2002 E-2, 5.05%, due 11/1/23 Aa2 AA 4,064
1,000 New York City (NY) IDA Civic Fac. Rev. (Lycee Francais de
New York Proj.), Ser. 2002 A, 5.50%, due 6/1/15 A 1,043++
1,030 New York City (NY) IDA Civic Fac. Rev. (Lycee Francais de
New York Proj.), Ser. 2002 A, 5.50%, due 6/1/17 A 1,070++
1,000 New York City (NY) IDA Ind. Dev. Rev. (Brooklyn Navy Yard
Cogeneration Partners, L.P. Proj.), Ser. 1997,
6.20%, due 10/1/22 Ba1 BBB- 1,046++
500 New York City (NY) IDA Ind. Dev. Rev. (Harlem Auto Mall
Proj.), Ser. 2004, 5.13%, due 12/30/23 Ba2 BB 403++
750 New York City (NY) Ind. Dev. Agcy. Liberty Rev. (7 World
Trade Center, LLC Proj.), Ser. 2005 A, 6.25%, due 3/1/15 BB 798
4,000 New York City (NY) Muni. Wtr. Fin. Au. Wtr. & Swr. Sys. Rev.,
Ser. 2002 D, 5.25%, due 6/15/15 Aa2 AA 4,286
3,000 New York City (NY) Trans. Fin. Au. Ref. Rev., Ser. 2002 B,
5.25%, due 2/1/29 Aa1 AAA 3,206
800 New York Convention Ctr. Operating Corp. Cert. of
Participation (Yale Bldg. Acquisition Proj.), Ser. 2003,
5.25%, due 6/1/08 Aa1 808
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 2,226
1,675 New York St. Dorm. Au. Insured Rev. (Long Island Univ.),
Ser. 2003 A, 5.25%, due 9/1/15 Baa3 AA 1,754++
3,000 New York St. Dorm. Au. Ref. Rev. (North Gen. Hosp. Proj.),
Ser. 2003, 5.75%, due 2/15/17 AA- 3,331++
1,125 New York St. Dorm. Au. Rev. (City Univ. Sys. Proj.), Ser. 1995 A,
5.63%, due 7/1/16 A2 AA- 1,258
20
PRINCIPAL AMOUNT SECURITY @ RATING @@ VALUE +
(000'S OMITTED) MOODY'S S&P (000'S OMITTED)
$ 1,010 New York St. Dorm. Au. Rev. (Columbia Univ. Proj.), Ser. 2001 A,
5.25%, due 7/1/16 Aaa AAA $ 1,096++
2,985 New York St. Dorm. Au. Rev. (Lenox Hill Hosp. Oblig. Group
Proj.), Ser. 2001, 5.75%, due 7/1/14 Ba2 3,096++
2,000 New York St. Dorm. Au. Rev. (Lenox Hill Hosp. Oblig. Group
Proj.), Ser. 2001, 5.75%, due 7/1/16 Ba2 2,061++
2,000 New York St. Dorm. Au. Rev. (Mount Sinai NYU Hlth.),
Ser. 2000 C, 5.50%, due 7/1/26 Ba1 BB 2,025++
525 New York St. Dorm. Au. Rev. (New York Methodist Hosp.),
Ser. 2004, 5.25%, due 7/1/18 A3 554
500 New York St. Dorm. Au. Rev. (North Shore-Long Island
Jewish Oblig. Group), Ser. 2003, 5.00%, due 5/1/18 A3 516++
2,855 New York St. Dorm. Au. Rev. (Rivington House Hlth. Care
Fac.), Ser. 2002, 5.25%, due 11/1/15 Aa1 3,039++
3,000 New York St. Dorm. Au. Rev. (SS Joachim & Anne Residence
Proj.), Ser. 2002, 4.60%, due 7/1/16 Aa3 2,997
250 New York St. Dorm. Au. Secured Hosp. Ref. Rev. (Brookdale
Hosp. Med. Ctr.), Ser. 1998 J, 5.20%, due 2/15/16 A2 AA- 260++
5,500 New York St. Dorm. Au. St. Personal Income Tax Rev., Ser. 2003 A,
5.38%, due 3/15/17 AA 6,067
500 New York St. Dorm. Au. Third Gen. Resolution Rev. (St. Univ.
Ed. Fac. Issue Proj.), Ser. 2002 B, 5.25%, due 11/15/23 A2 AA- 534
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+ 5,045++
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 1,017
2,000 New York St. Mtge. Agcy. Homeowner Mtge. Rev.,
Ser. 1997-67, 5.70%, due 10/1/17 Aa1 2,061
2,000 New York St. Pwr. Au. Rev., Ser. 2002 A,
5.25%, due 11/15/16 Aa2 AA- 2,161
500 New York St. Urban Dev. Corp. Correctional & Youth Fac. Svc.
Rev., Ser. 2002 C, 4.00%, due 1/1/20 A2 AA- 502
1,325 New York St. Urban Dev. Corp. Proj. Ref. Rev. (Ctr. for Ind.
Innovation), Ser. 1995, 6.25%, due 1/1/09 A2 AA- 1,431
2,000 Niagara Co. (NY) IDA Civic Fac. Rev. (Niagara Univ. Proj.),
Ser. 2001 A, 5.50%, due 11/1/16 AA 2,138++
2,500 Niagara Co. (NY) IDA Solid Waste Disp. Fac. Ref. Rev.
(American Ref.-Fuel Co. of Niagara), Ser. 2001 C,
5.63%, due 11/15/24 Baa3 BB+ 2,600++
915 Puerto Rico Children's Trust Tobacco Settlement Asset-
Backed Rev., Ser. 2002, 5.38%, due 5/15/33 Baa3 BBB 940
1,000 Santa Rosa (CA) Rancheria Tachi Yokut Tribe Enterprise Rev.,
Ser. 2003, 6.13%, due 3/1/13 BBB 1,007
1,000 Tobacco Settlement Fin. Corp. (LA) Tobacco Settlement
Asset-Backed Rev., Ser. 2001 B, 5.50%, due 5/15/30 Baa3 BBB 1,035
3,000 Triborough Bridge & Tunnel Au. (NY) Gen. Purp. Ref. Rev.,
Ser. 2002 B, 5.25%, due 11/15/18 Aa2 AA- 3,215
500 United Nations (NY) Dev. Corp. Sr. Lien Ref. Rev., Ser. 2004
A, 5.25%, due 7/1/17 A3 517
500 Verrado (AZ) Comm. Fac. Dist. Number 1 G.O., Ser. 2003,
6.15%, due 7/15/17 BB- 532
250 Virgin Islands Pub. Fin. Au. Refinery Fac. Rev. (HOVENSA
Refinery), Ser. 2003, 6.13%, due 7/1/22 Baa3 BBB 269
See Notes to Schedule of Investments
21
PRINCIPAL AMOUNT SECURITY @ RATING @@ VALUE +
(000'S OMITTED) MOODY'S S&P (000'S OMITTED)
$ 750 Virgin Islands Pub. Fin. Au. Rev. (Sub. Lien/Cap. Proj.),
Ser. 1998 E, 6.00%, due 10/1/22 BBB $ 768
1,000 Westchester Co. (NY) IDA Continuing Care Retirement
Comm. Rev. (Kendal on Hudson Proj.), Ser. 2003 B,
5.70%, due 1/1/34 BB 1,017++
1,000 Yonkers (NY) IDA Civic Fac. Rev. (Comm. Dev. Properties -
Yonkers, Inc.), Ser. 2001 A, 6.25%, due 2/1/16 Baa3 BBB- 1,109++
---------------
98,873
---------------
TAX-EXEMPT VARIABLE RATE DEMAND NOTES--BACKED BY LETTERS OF CREDIT (0.7%)^
BANK OF NEW YORK
200 New York City (NY) G.O., Sub. Ser. 2004 H-4,
2.68%, VRDN due 11/1/05 VMIG1 A-1+ 200
LANDESBANK HESSEN--THUERINGEN GIROZENTRALE
300 Port Authority of NY & NJ Spec. Oblig. Rev. (Versatile
Structure Oblig.), Ser. 1996-4, 2.71%, VRDN due 11/1/05 VMIG1 A-1+ 300
J.P. MORGAN CHASE
100 New York City (NY) G.O., Sub. Ser. 1993 E-2,
2.75%, VRDN due 11/1/05 VMIG1 A-1+ 100
---------------
600
---------------
TAX-EXEMPT VARIABLE RATE DEMAND NOTES--OTHER (0.3%)^
200 New York St. Env. Fac. Corp. Sewage & Solid Waste Disp.
Rev. (General Elec. Co. Proj.), Ser. 1997 A,
2.71%, VRDN due 11/1/05 P-1 A-1+ 200++
---------------
TOTAL INVESTMENTS (157.8%) (COST $125,437) 127,280##
Cash, receivables and other assets, less liabilities (2.0%) 1,622
Liquidation Value of Auction Market Preferred Shares [(59.8%)] (48,250)
---------------
TOTAL NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS (100.0%) $ 80,652
---------------
22
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 the Funds' 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 October 31, 2005, 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 $ 154,775 $ 3,296 $ 225 $ 3,071
INTERMEDIATE 466,002 11,161 975 10,186
NEW YORK 125,437 2,336 493 1,843
@ 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 78%, 72%, and 57% of the municipal securities held by
California, Intermediate, and New York, respectively, have credit
enhancement features backing them, which the Funds may rely on, such as
letters of credit, insurance, or guarantees. Without these credit
enhancement features the securities may or may not meet the quality
standards of the Funds. Pre-refunded bonds are supported by securities in
escrow issued or guaranteed by the U.S. Government, its agencies, or
instrumentalities. The amount escrowed is sufficient to pay the periodic
interest due and the principal of these bonds. Putable bonds give the Funds
the right to sell back the issue on the date specified.
++ Security is guaranteed by the corporate or non-profit obligor.
** Restricted security subject to restrictions on resale under federal
securities laws. These securities may be resold, normally to qualified
institutional buyers under Rule 144A, and have been deemed by the adviser
to be liquid. At October 31, 2005, these securities amounted to $4,500,000
or 1.5% of net assets for Intermediate.
^^ Not rated by a NRSRO.
@@ Credit Ratings are unaudited.
# All or a portion of this security was purchased on a when-issued basis. At
October 31, 2005, these securities amounted to $2,000,000 or .66% of net
assets for Intermediate.
### All or a portion of this security is segregated as collateral for
when-issued purchase commitments.
^ 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 October 31, 2005.
See Notes to Financial Statements
23
NEUBERGER BERMAN FOR THE YEAR ENDED OCTOBER 31, 2005
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 $ 157,846 $ 476,188 $ 127,280
Cash 50 77 31
Interest receivable 2,443 7,945 2,104
Receivable for securities sold 1,961 2,799 --
Prepaid expenses and other assets 4 13 4
-----------------------------------------------------------------------------------------------------------------------------------
TOTAL ASSETS 162,304 487,022 129,419
-----------------------------------------------------------------------------------------------------------------------------------
LIABILITIES
Dividends payable--preferred shares 67 169 47
Dividends payable--common shares 424 1,372 362
Payable for securities purchased 3,000 2,000 --
Payable to administrator (Note B) 41 124 33
Accrued expenses and other payables 75 93 75
-----------------------------------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES 3,607 3,758 517
-----------------------------------------------------------------------------------------------------------------------------------
AUCTION MARKET PREFERRED SHARES SERIES A & B AT LIQUIDATION VALUE
3,000, 8,000 and 3,000 shares authorized; 2,360, 7,176 and 1,930 shares
issued and outstanding for California, Intermediate and New York,
respectively; $.0001 par value;
$25,000 liquidation value per share (Note A) 59,000 179,400 48,250
-----------------------------------------------------------------------------------------------------------------------------------
NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS AT VALUE $ 99,697 $ 303,864 $ 80,652
-----------------------------------------------------------------------------------------------------------------------------------
NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS CONSIST OF:
Paid-in capital--common shares $ 96,347 $ 293,853 $ 79,063
Undistributed net investment income (loss) 627 969 342
Accumulated net realized gains (losses) on investments (348) (1,144) (596)
Net unrealized appreciation (depreciation) in value of investments 3,071 10,186 1,843
-----------------------------------------------------------------------------------------------------------------------------------
NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS AT VALUE $ 99,697 $ 303,864 $ 80,652
-----------------------------------------------------------------------------------------------------------------------------------
COMMON SHARES OUTSTANDING ($.0001 par value; 999,997,000,
999,992,000 and 999,997,000 shares authorized for
California, Intermediate and New York, respectively) 6,792 20,705 5,575
-----------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE PER COMMON SHARE OUTSTANDING $ 14.68 $ 14.68 $ 14.47
-----------------------------------------------------------------------------------------------------------------------------------
*COST OF INVESTMENTS: $ 154,775 $ 466,002 $ 125,437
-----------------------------------------------------------------------------------------------------------------------------------
See Notes to Financial Statements
24
NEUBERGER BERMAN FOR THE YEAR ENDED OCTOBER 31, 2005
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 $ 7,181 $ 22,192 $ 6,047
-----------------------------------------------------------------------------------------------------------------------------------
EXPENSES:
Investment management fee (Notes A & B) 402 1,226 327
Administration fee (Note B) 483 1,471 393
Stock transfer agent fees 35 35 35
Auction agent fees (Note B) 150 455 122
Special rate period expense (Notes A & B) 39 100 32
Audit fees 50 51 50
Basic maintenance expense (Note B) 25 25 25
Custodian fees (Note B) 78 141 67
Insurance expense 7 22 6
Legal fees 36 75 33
Shareholder reports 24 54 23
Stock exchange listing fees 2 7 2
Directors' fees and expenses 26 27 26
Miscellaneous 26 30 26
-----------------------------------------------------------------------------------------------------------------------------------
Total expenses 1,383 3,719 1,167
Investment management fee waived (Note B) (402) (1,226) (327)
-----------------------------------------------------------------------------------------------------------------------------------
Expenses reduced by custodian fee expense offset arrangement (Note B) (1) (1) (1)
-----------------------------------------------------------------------------------------------------------------------------------
Total net expenses 980 2,492 839
-----------------------------------------------------------------------------------------------------------------------------------
Net investment income 6,201 19,700 5,208
-----------------------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS (NOTE A)
Net realized gain (loss) on:
Sales of investment securities of unaffiliated issuers (4) (59) (19)
Change in net unrealized appreciation (depreciation) in value of:
Unaffiliated investment securities (2,787) (8,953) (2,496)
----------------------------------------------------------------------------------------------------------------------------
Net gain (loss) on investments (2,791) (9,012) (2,515)
-----------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO PREFERRED SHAREHOLDERS FROM:
Net investment income (929) (3,174) (763)
NET INCREASE (DECREASE) IN NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS
RESULTING FROM OPERATIONS $ 2,481 $ 7,514 $ 1,930
-----------------------------------------------------------------------------------------------------------------------------------
See Notes to Financial Statements
25
STATEMENTS OF CHANGES IN NET ASSETS
CALIFORNIA INTERMEDIATE MUNICIPAL FUND
--------------------------------------------
NEUBERGER BERMAN INTERMEDIATE MUNICIPAL CLOSED-END FUNDS YEAR YEAR
(000'S OMITTED) ENDED ENDED
OCTOBER 31, OCTOBER 31,
2005 2004
INCREASE (DECREASE) IN NET ASSETS APPLICABLE TO
COMMON SHAREHOLDERS:
FROM OPERATIONS:
Net investment income (loss) $ 6,201 $ 6,206
Net realized gain (loss) on investments (4) (274)
Change in net unrealized appreciation
(depreciation) of investments (2,787) 4,830
DISTRIBUTIONS TO PREFERRED SHAREHOLDERS FROM (NOTE A):
Net investment income (929) (859)
Net increase (decrease) in net assets applicable
to common shareholders resulting from operations 2,481 9,903
DISTRIBUTIONS TO COMMON SHAREHOLDERS FROM (NOTE A):
Net investment income (5,094) (5,094)
NET INCREASE (DECREASE) IN NET ASSETS APPLICABLE
TO COMMON SHAREHOLDERS (2,613) 4,809
NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS:
Beginning of year 102,310 97,501
End of year $ 99,697 $ 102,310
Undistributed net investment income (loss) at
end of year $ 627 $ 449
26
INTERMEDIATE MUNICIPAL FUND
--------------------------------------------
NEUBERGER BERMAN INTERMEDIATE MUNICIPAL CLOSED-END FUNDS YEAR YEAR
(000'S OMITTED) ENDED ENDED
OCTOBER 31, OCTOBER 31,
2005 2004
INCREASE (DECREASE) IN NET ASSETS APPLICABLE TO
COMMON SHAREHOLDERS:
FROM OPERATIONS:
Net investment income (loss) $ 19,700 $ 19,565
Net realized gain (loss) on investments (59) (328)
Change in net unrealized appreciation
(depreciation) of investments (8,953) 13,555
DISTRIBUTIONS TO PREFERRED SHAREHOLDERS FROM (NOTE A):
Net investment income (3,174) (2,590)
Net increase (decrease) in net assets applicable
to common shareholders resulting from operations 7,514 30,202
DISTRIBUTIONS TO COMMON SHAREHOLDERS FROM (NOTE A):
Net investment income (16,461) (16,462)
NET INCREASE (DECREASE) IN NET ASSETS APPLICABLE
TO COMMON SHAREHOLDERS (8,947) 13,740
NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS:
Beginning of year 312,811 299,071
End of year $ 303,864 $ 312,811
Undistributed net investment income (loss) at
end of year $ 969 $ 904
NEW YORK INTERMEDIATE MUNICIPAL FUND
--------------------------------------------
NEUBERGER BERMAN INTERMEDIATE MUNICIPAL CLOSED-END FUNDS YEAR YEAR
(000'S OMITTED) ENDED ENDED
OCTOBER 31, OCTOBER 31,
2005 2004
INCREASE (DECREASE) IN NET ASSETS APPLICABLE TO
COMMON SHAREHOLDERS:
FROM OPERATIONS:
Net investment income (loss) $ 5,208 $ 5,196
Net realized gain (loss) on investments (19) (157)
Change in net unrealized appreciation
(depreciation) of investments (2,496) 2,797
DISTRIBUTIONS TO PREFERRED SHAREHOLDERS FROM (NOTE A):
Net investment income (763) (704)
Net increase (decrease) in net assets applicable
to common shareholders resulting from operations 1,930 7,132
DISTRIBUTIONS TO COMMON SHAREHOLDERS FROM (NOTE A):
Net investment income (4,348) (4,348)
NET INCREASE (DECREASE) IN NET ASSETS APPLICABLE
TO COMMON SHAREHOLDERS (2,418) 2,784
NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS:
Beginning of year 83,070 80,286
End of year $ 80,652 $ 83,070
Undistributed net investment income (loss) at
end of year $ 342 $ 245
See Notes to Financial Statements
27
NOTES TO FINANCIAL STATEMENTS INTERMEDIATE MUNICIPAL CLOSED-END FUNDS
NOTE A--SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:
1 GENERAL: Neuberger Berman California Intermediate Municipal Fund Inc.
("California"), Neuberger Berman Intermediate Municipal Fund Inc.
("Intermediate"), and Neuberger Berman New York Intermediate Municipal
Fund Inc. ("New York") (individually a "Fund" 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 a trade date basis. Interest income, including accretion
of discount (adjusted for original issue discount, where applicable) and
amortization of premium, where applicable, is recorded on the accrual
basis. Realized gains and losses from securities transactions are
recorded on the basis of identified cost and stated in the Statements of
Operations.
4 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, 2005, there were no permanent differences
resulting from different book and tax accounting reclassified at year
end.
28
The tax character of distributions paid during the years ended October
31, 2005 and October 31, 2004 was as follows:
DISTRIBUTIONS PAID FROM:
TAX-EXEMPT INCOME ORDINARY INCOME TOTAL
2005 2004 2005 2004 2005 2004
CALIFORNIA $ 6,020,445 $ 5,945,965 $ 2,558 $ 6,705 $ 6,023,003 $ 5,952,670
INTERMEDIATE 19,596,581 19,015,689 37,644 35,236 19,634,225 19,050,925
NEW YORK 5,108,368 5,050,381 2,708 2,299 5,111,076 5,052,680
As of October 31, 2005, 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 $ 1,118,323 $ -- $ -- $ 3,071,222 $ (347,798) $ 3,841,747
INTERMEDIATE 2,510,716 -- -- 10,184,508 (1,144,403) 11,550,821
NEW YORK 752,100 -- -- 1,843,607 (595,949) 1,999,758
The difference 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, 2005, 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 $ 69,587 $ 273,734 $ 4,477
INTERMEDIATE 757,224 328,363 58,816
NEW YORK 420,475 156,636 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 and
pay distributions to common shareholders from net investment income on a
monthly basis. Distributions from net realized capital gains, if any, are
normally distributed in December. Income distributions and capital gain
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 October 31, 2005, each Fund declared two monthly
distributions to common shareholders payable December 15, 2005 and
January 17, 2006, to shareholders of record on November 25, 2005 and
December 27, 2005, respectively, with ex-dates of November 22, 2005 and
December 22, 2005, respectively, as follows:
DIVIDEND PER SHARE
CALIFORNIA $ 0.06250
INTERMEDIATE 0.06625
NEW YORK 0.06500
29
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. Each Fund has approved a special rate period for its AMPS Series
A of 728 days for California and New York and 546 days for Intermediate.
The effective dates and distribution rates for each Fund are as follows:
EFFECTIVE DATE DIVIDEND RATE
CALIFORNIA October 23, 2003 1.70%(1)
INTERMEDIATE October 24, 2003 1.65%(2)
NEW YORK October 22, 2003 1.70%(3)
(1) Special rate in effect through October 19, 2005. For the period
October 20, 2005 through October 31, 2005 distribution rates ranged
from 2.60% to 2.70%.
(2) Special rate in effect through April 21, 2005. For the period April
22, 2005 through October 31, 2005 distribution rates ranged from
2.25% to 2.90%.
(3) Special rate in effect through October 18, 2005. For the period
October 19, 2005 through October 31, 2005 distribution rates ranged
from 2.45% to 2.70%.
30
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. Each Fund has approved a special rate period for its AMPS Series
B of 546 days for California and Intermediate and 553 days for New York.
The effective dates and distribution rates for each Fund are as follows:
EFFECTIVE DATE DIVIDEND RATE
CALIFORNIA March 11, 2004 1.170%(1)
INTERMEDIATE March 15, 2004 1.185%(2)
NEW YORK March 9, 2004 1.198%(3)
(1) Special rate in effect through September 8, 2005. For the period
September 9, 2005 through October 31, 2005 distribution rates ranged
from 2.50% to 2.68%.
(2) Special rate in effect through September 12, 2005. For the period
September 13, 2005 through October 31, 2005 distribution rates ranged
from 2.65% to 2.85%.
(3) Special rate in effect through September 12, 2005. For the period
September 13, 2005 through October 31, 2005 distribution rates ranged
from 1.70% to 2.70%.
The Funds declared distributions to AMPS shareholders for the period
November 1, 2005 to November 30, 2005, for each series of the AMPS as
follows:
SERIES A SHARES SERIES B SHARES
CALIFORNIA $ 64,620 $ 64,300
INTERMEDIATE 197,607 203,919
NEW YORK 52,861 51,195
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 stock as a single class, except that the AMPS will vote
separately as a class on certain matters, as required by law or the
Funds' 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 failed 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. The investment policies of California and New York involve
investing substantially all of their assets in municipal bonds of issuers
located in the state of California and the state of New York,
respectively. This policy makes those Funds more susceptible to adverse
economic, political, regulatory or other factors affecting the issuers of
such municipal bonds than a fund that does not limit its investments to
such issuers.
31
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.
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
---------------------------------------------------------------
2005 - 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 year ended October 31, 2005, such waived fees amounted to
$402,264, $1,226,157, and $327,198 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 year ended October 31, 2005, the impact of
this arrangement was a reduction of expenses of $1,238, $1,142, and
$1,205 for California, Intermediate, and New York, respectively.
32
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.
Each Fund has paid Merrill Lynch a fee equal to 1/8 of 1% in connection
with entering the special rate periods in return for which Merrill Lynch
had agreed to pay dividends on the AMPS that, as a result of the auction,
exceed a specified rate.
In order to satisfy 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 the 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 included in the "Basic
Maintenance Expense" on the Statement of Operations.
NOTE C--SECURITIES TRANSACTIONS:
During the year ended October 31, 2005, there were purchase and sale
transactions (excluding short-term securities) as follows:
(000'S OMITTED) PURCHASES SALES
CALIFORNIA $ 7,130 $ 5,105
INTERMEDIATE 11,480 8,061
NEW YORK 3,260 3,189
NOTE D--CAPITAL:
At October 31, 2005, the common shares outstanding and the common shares
of each Fund owned by Neuberger were as follows:
COMMON SHARES COMMON SHARES
OUTSTANDING OWNED BY NEUBERGER
CALIFORNIA 6,791,981 6,981
INTERMEDIATE 20,705,124 6,981
NEW YORK 5,574,550 6,981
Transactions in common shares for the years ended October 31, 2005 and
October 31, 2004, were as follows:
REINVESTMENT OF
DIVIDENDS AND NET INCREASE IN COMMON
DISTRIBUTIONS SHARES OUTSTANDING
2005 2004 2005 2004
CALIFORNIA -- -- -- --
INTERMEDIATE -- -- -- --
NEW YORK -- -- -- --
33
FINANCIAL HIGHLIGHTS CALIFORNIA INTERMEDIATE MUNICIPAL FUND
The following table includes selected data for a share outstanding throughout
each period and other performance information derived from the Financial
Statements.
PERIOD FROM
SEPTEMBER 27, 2002^
YEAR ENDED OCTOBER 31, TO OCTOBER 31,
------------------------------------ --------------------
2005 2004 2003 2002
COMMON SHARE NET ASSET VALUE, BEGINNING OF PERIOD $ 15.06 $ 14.36 $ 14.31 $ 14.32
---------- ---------- ---------- --------------------
INCOME FROM INVESTMENT OPERATIONS APPLICABLE TO COMMON
SHAREHOLDERS:
NET INVESTMENT INCOME (LOSS)## .91 .91 .85 .02
NET GAINS OR LOSSES ON SECURITIES
(BOTH REALIZED AND UNREALIZED) (.40) .67 .14 --
COMMON SHARE EQUIVALENT OF DISTRIBUTIONS TO PREFERRED
SHAREHOLDERS FROM:
NET INVESTMENT INCOME (.14) (.13) (.08) --
---------- ---------- ---------- --------------------
TOTAL FROM INVESTMENT OPERATIONS APPLICABLE TO COMMON SHAREHOLDERS .37 1.45 .91 .02
---------- ---------- ---------- --------------------
LESS DISTRIBUTIONS TO COMMON SHAREHOLDERS FROM:
NET INVESTMENT INCOME (.75) (.75) (.75) --
---------- ---------- ---------- --------------------
LESS CAPITAL CHARGES:
ISSUANCE OF COMMON SHARES -- -- -- (.03)
ISSUANCE OF PREFERRED SHARES -- -- (.11) --
---------- ---------- ---------- --------------------
TOTAL CAPITAL CHARGES -- -- (.11) (.03)
---------- ---------- ---------- --------------------
COMMON SHARE NET ASSET VALUE, END OF PERIOD $ 14.68 $ 15.06 $ 14.36 $ 14.31
---------- ---------- ---------- --------------------
COMMON SHARE MARKET VALUE, END OF PERIOD $ 13.75 $ 13.47 $ 13.00 $ 15.00
---------- ---------- ---------- --------------------
TOTAL RETURN, COMMON SHARE NET ASSET VALUE+ +2.96% +10.97% +6.02% -0.10%**
TOTAL RETURN, COMMON SHARE MARKET VALUE+ +7.82% +9.63% -8.44% +0.00%**
RATIOS/SUPPLEMENTAL DATA++
NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS, END OF PERIOD
(IN MILLIONS) $ 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 $ --
RATIO OF GROSS EXPENSES TO AVERAGE NET ASSETS APPLICABLE TO
COMMON SHAREHOLDERS# .96% .96% .88% .84%*
RATIO OF NET EXPENSES TO AVERAGE NET ASSETS APPLICABLE TO
COMMON SHAREHOLDERS@@ .96% .96% .88% .83%*
RATIO OF NET INVESTMENT INCOME (LOSS) EXCLUDING PREFERRED
SHARES DIVIDENDS TO AVERAGE NET ASSETS APPLICABLE TO
COMMON SHAREHOLDERS 6.08% 6.24% 5.88% 1.10%*
RATIO OF PREFERRED SHARES DIVIDENDS TO AVERAGE
NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS .91% .86% .56% --%
RATIO OF NET INVESTMENT INCOME (LOSS) INCLUDING PREFERRED
SHARES DIVIDENDS TO AVERAGE NET ASSETS APPLICABLE TO
COMMON SHAREHOLDERS 5.17% 5.38% 5.32% 1.10%*
PORTFOLIO TURNOVER RATE 3% 3% 9% 0%**
ASSET COVERAGE PER SHARE OF PREFERRED STOCK, END OF PERIOD@ $ 67,273 $ 68,383 $ 66,332 $ --
See Notes to Financial Highlights
34
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
SEPTEMBER 27, 2002^
YEAR ENDED OCTOBER 31, TO OCTOBER 31,
------------------------------------ --------------------
2005 2004 2003 2002
COMMON SHARE NET ASSET VALUE, BEGINNING OF PERIOD $ 15.11 $ 14.44 $ 14.30 $ 14.32
---------- ---------- ---------- --------------------
INCOME FROM INVESTMENT OPERATIONS APPLICABLE TO COMMON SHAREHOLDERS:
NET INVESTMENT INCOME (LOSS)## .95 .94 .88 .01
NET GAINS OR LOSSES ON SECURITIES
(BOTH REALIZED AND UNREALIZED) (.43) .65 .25 --
COMMON SHARE EQUIVALENT OF DISTRIBUTIONS TO PREFERRED
SHAREHOLDERS FROM:
NET INVESTMENT INCOME (.15) (.12) (.09) --
---------- ---------- ---------- --------------------
TOTAL FROM INVESTMENT OPERATIONS APPLICABLE TO COMMON SHAREHOLDERS .37 1.47 1.04 .01
---------- ---------- ---------- --------------------
LESS DISTRIBUTIONS TO COMMON SHAREHOLDERS FROM:
NET INVESTMENT INCOME (.80) (.80) (.80) --
---------- ---------- ---------- --------------------
LESS CAPITAL CHARGES:
ISSUANCE OF COMMON SHARES -- -- -- (.03)
ISSUANCE OF PREFERRED SHARES -- -- (.10) --
---------- ---------- ---------- --------------------
TOTAL CAPITAL CHARGES -- -- (.10) (.03)
---------- ---------- ---------- --------------------
COMMON SHARE NET ASSET VALUE, END OF PERIOD $ 14.68 $ 15.11 $ 14.44 $ 14.30
---------- ---------- ---------- --------------------
COMMON SHARE MARKET VALUE, END OF PERIOD $ 13.62 $ 13.70 $ 13.33 $ 15.00
---------- ---------- ---------- --------------------
TOTAL RETURN, COMMON SHARE NET ASSET VALUE+ +2.93% +10.91% +6.88% -0.17%**
TOTAL RETURN, COMMON SHARE MARKET VALUE+ +5.32% +8.94% -5.94% +0.00%**
RATIOS/SUPPLEMENTAL DATA++
NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS, END OF PERIOD
(IN MILLIONS) $ 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 $ --
RATIO OF GROSS EXPENSES TO AVERAGE NET ASSETS APPLICABLE TO
COMMON SHAREHOLDERS# .80% .82% .74% .51%*
RATIO OF NET EXPENSES TO AVERAGE NET ASSETS APPLICABLE TO
COMMON SHAREHOLDERS@@ .80% .82% .74% .51%*
RATIO OF NET INVESTMENT INCOME (LOSS) EXCLUDING PREFERRED
SHARES DIVIDENDS TO AVERAGE NET ASSETS APPLICABLE TO
COMMON SHAREHOLDERS 6.33% 6.40% 6.08% 1.62%*
RATIO OF PREFERRED SHARES DIVIDENDS TO AVERAGE
NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS 1.02% .85% .59% --%
RATIO OF NET INVESTMENT INCOME (LOSS) INCLUDING PREFERRED
SHARES DIVIDENDS TO AVERAGE NET ASSETS APPLICABLE TO
COMMON SHAREHOLDERS 5.31% 5.55% 5.49% 1.62%*
PORTFOLIO TURNOVER RATE 2% 3% 10% 0%**
ASSET COVERAGE PER SHARE OF PREFERRED STOCK, END OF PERIOD@ $ 67,368 $ 68,622 $ 66,694 $ --
See Notes to Financial Highlights
35
FINANCIAL HIGHLIGHTS NEW YORK INTERMEDIATE MUNICIPAL FUND
The following table includes selected data for a share outstanding throughout
each period and other performance information derived from the Financial
Statements.
PERIOD FROM
SEPTEMBER 27, 2002^
YEAR ENDED OCTOBER 31, TO OCTOBER 31,
------------------------------------ --------------------
2005 2004 2003 2002
COMMON SHARE NET ASSET VALUE, BEGINNING OF PERIOD $ 14.90 $ 14.40 $ 14.32 $ 14.32
---------- ---------- ---------- --------------------
INCOME FROM INVESTMENT OPERATIONS APPLICABLE TO
COMMON SHAREHOLDERS:
NET INVESTMENT INCOME (LOSS)## .93 .93 .86 .03
NET GAINS OR LOSSES ON SECURITIES
(BOTH REALIZED AND UNREALIZED) (.44) .48 .19 --
COMMON SHARE EQUIVALENT OF DISTRIBUTIONS TO PREFERRED
SHAREHOLDERS FROM:
NET INVESTMENT INCOME (.14) (.13) (.08) --
---------- ---------- ---------- --------------------
TOTAL FROM INVESTMENT OPERATIONS APPLICABLE TO COMMON SHAREHOLDERS .35 1.28 .97 .03
---------- ---------- ---------- --------------------
LESS DISTRIBUTIONS TO COMMON SHAREHOLDERS FROM:
NET INVESTMENT INCOME (.78) (.78) (.78) --
---------- ---------- ---------- --------------------
LESS CAPITAL CHARGES:
ISSUANCE OF COMMON SHARES -- -- -- (.03)
ISSUANCE OF PREFERRED SHARES -- -- (.11) --
---------- ---------- ---------- --------------------
TOTAL CAPITAL CHARGES -- -- (.11) (.03)
---------- ---------- ---------- --------------------
COMMON SHARE NET ASSET VALUE, END OF PERIOD $ 14.47 $ 14.90 $ 14.40 $ 14.32
---------- ---------- ---------- --------------------
COMMON SHARE MARKET VALUE, END OF PERIOD $ 13.54 $ 13.32 $ 13.27 $ 15.00
---------- ---------- ---------- --------------------
TOTAL RETURN, COMMON SHARE NET ASSET VALUE+ +2.87% +9.67% +6.36% -0.03%**
TOTAL RETURN, COMMON SHARE MARKET VALUE+ +7.68% +6.39% -6.43% +0.00%**
RATIOS/SUPPLEMENTAL DATA++
NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS, END OF PERIOD
(IN MILLIONS) $ 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 $ --
RATIO OF GROSS EXPENSES TO AVERAGE NET ASSETS APPLICABLE TO
COMMON SHAREHOLDERS# 1.02% 1.00% .92% .94%*
RATIO OF NET EXPENSES TO AVERAGE NET ASSETS APPLICABLE TO
COMMON SHAREHOLDERS@@ 1.01% .99% .92% .93%*
RATIO OF NET INVESTMENT INCOME (LOSS) EXCLUDING PREFERRED
SHARES DIVIDENDS TO AVERAGE NET ASSETS APPLICABLE TO
COMMON SHAREHOLDERS 6.30% 6.37% 6.02% 1.22%*
RATIO OF PREFERRED SHARES DIVIDENDS TO AVERAGE
NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS .92% .86% .57% --%
RATIO OF NET INVESTMENT INCOME (LOSS) INCLUDING PREFERRED
SHARES DIVIDENDS TO AVERAGE NET ASSETS APPLICABLE TO COMMON
SHAREHOLDERS 5.38% 5.51% 5.45% 1.22%*
PORTFOLIO TURNOVER RATE 2% 5% 11% 0%**
ASSET COVERAGE PER SHARE OF PREFERRED STOCK, END OF PERIOD@ $ 66,813 $ 68,073 $ 66,617 $ --
See Notes to Financial Highlights
36
NOTES TO FINANCIAL HIGHLIGHTS INTERMEDIATE MUNICIPAL CLOSED-END FUNDS
+ Total return based on per share net asset value reflects the effects of
changes in net asset value on the performance of each Fund during each fiscal
period. Total return based on per share market value assumes the purchase of
common shares at the market price on the first day and sales of common shares
at the market price on the last day of the period indicated. Dividends and
distributions, if any, are assumed to be reinvested at prices obtained under
each Fund's dividend reinvestment plan. Results represent past performance
and do not guarantee future results. Current returns may be lower or higher
than the performance data quoted. For each Fund, total return would have been
lower if Management had not waived the investment management fee. Performance
data current to the most recent month-end are available at www.nb.com.
# The Fund is required to calculate an expense ratio without taking into
consideration any expense reductions related to expense offset arrangements.
@@ After waiver of investment management fee. Had Management not undertaken such
action, the annualized ratios of net expenses to average daily net assets
applicable to common shareholders would have been:
PERIOD FROM
YEAR ENDED OCTOBER 31, SEPTEMBER 27 TO
2005 2004 2003 OCTOBER 31, 2002
CALIFORNIA 1.36% 1.35% 1.26% 1.08%
INTERMEDIATE 1.20% 1.22% 1.13% .76%
NEW YORK 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 dividends on AMPS) from the Fund's total assets and dividing by the
number of AMPS outstanding.
++ Expense ratios do not include the effect of distribution payments 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 the
fiscal period.
37
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Board of Directors and Shareholders of
Neuberger Berman California Intermediate Municipal Fund Inc.
Neuberger Berman Intermediate Municipal Fund Inc.
Neuberger Berman New York Intermediate Municipal Fund Inc.
We have audited the accompanying statements of assets and liabilities of
Neuberger Berman California Intermediate Municipal Fund Inc., Neuberger Berman
Intermediate Municipal Fund Inc., and Neuberger Berman New York Intermediate
Municipal Fund Inc. (the "Funds"), including the schedules of investments, as of
October 31, 2005, and the related statements of operations for the year then
ended, the statements of changes in net assets for each of the two years in the
period then ended, and the financial highlights for each of the periods
indicated therein. These financial statements and financial highlights are the
responsibility of the Funds' management. Our responsibility is to express an
opinion on these financial statements and financial highlights based on our
audits.
We conducted our audits in accordance with the standards of the Public Company
Accounting Oversight Board (United States). Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether the financial
statements and financial highlights are free of material misstatement. We were
not engaged to perform an audit of the Funds' internal control over financial
reporting. Our audits included consideration of internal control over financial
reporting as a basis for designing audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the Funds' internal control over financial reporting.
Accordingly, we express no such opinion. An audit also includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements and financial highlights, assessing the accounting principles used
and significant estimates made by management, and evaluating the overall
financial statement presentation. Our procedures included confirmation of
securities owned as of October 31, 2005, by correspondence with the custodian
and brokers or by other appropriate auditing procedures where replies from
brokers were not received. We believe that our audits provide a reasonable basis
for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of
Neuberger Berman California Intermediate Municipal Fund Inc., Neuberger Berman
Intermediate Municipal Fund Inc., and Neuberger Berman New York Intermediate
Municipal Fund Inc., at October 31, 2005, the results of their operations for
the year then ended, the changes in their net assets for each of the two years
in the period then ended, and their financial highlights for each of the periods
indicated therein, in conformity with U.S. generally accepted accounting
principles.
/s/ Ernest & Young LLP
Boston, Massachusetts
December 9, 2005
38
DIVIDEND REINVESTMENT PLAN
The Bank of New York ("Plan Agent") will act as Plan Agent for shareholders who
have not elected in writing to receive dividends and distributions in cash (each
a "Participant"), will open an account for each Participant under the Dividend
Reinvestment Plan ("Plan") in the same name as their then current Shares are
registered, and will put the Plan into effect for each Participant as of the
first record date for a dividend or capital gains distribution.
Whenever the Fund declares a dividend or distribution with respect to the common
stock of the Fund ("Shares"), each Participant will receive such dividends and
distributions in additional Shares, including fractional Shares acquired by the
Plan Agent and credited to each Participant's account. If on the payment date
for a cash dividend or distribution, the net asset value is equal to or less
than the market price per Share plus estimated brokerage commissions, the Plan
Agent shall automatically receive such Shares, including fractions, for each
Participant's account. Except in the circumstances described in the next
paragraph, the number of additional Shares to be credited to each Participant's
account shall be determined by dividing the dollar amount of the dividend or
distribution payable on their Shares by the greater of the net asset value per
Share determined as of the date of purchase or 95% of the then current market
price per Share on the payment date.
Should the net asset value per Share exceed the market price per Share plus
estimated brokerage commissions on the payment date for a cash dividend or
distribution, the Plan Agent or a broker-dealer selected by the Plan Agent shall
endeavor, for a purchase period lasting until the last business day before the
next date on which the Shares trade on an "ex-dividend" basis, but in no event,
except as provided below, more than 30 days after the dividend payment date, to
apply the amount of such dividend or distribution on each Participant's Shares
(less their PRO RATA share of brokerage commissions incurred with respect to the
Plan Agent's open-market purchases in connection with the reinvestment of such
dividend or distribution) to purchase Shares on the open market for each
Participant's account. No such purchases may be made more than 30 days after the
payment date for such dividend except where temporary curtailment or suspension
of purchase is necessary to comply with applicable provisions of federal
securities laws. If, at the close of business on any day during the purchase
period the net asset value per Share equals or is less than the market price per
Share plus estimated brokerage commissions, the Plan Agent will not make any
further open-market purchases in connection with the reinvestment of such
dividend or distribution. If the Plan Agent is unable to invest the full
dividend or distribution amount through open-market purchases during the
purchase period, the Plan Agent shall request that, with respect to the
uninvested portion of such dividend or distribution amount, the Fund issue new
Shares at the close of business on the earlier of the last day of the purchase
period or the first day during the purchase period on which the net asset value
per Share equals or is less than the market price per Share, plus estimated
brokerage commissions, such Shares to be issued in accordance with the terms
specified in the third paragraph hereof. These newly issued Shares will be
valued at the then-current market price per Share at the time such Shares are to
be issued.
For purposes of making the dividend reinvestment purchase comparison under the
Plan, (a) the market price of the Shares on a particular date shall be the last
sales price on the New York Stock Exchange (or if the Shares are not listed on
the New York Stock Exchange, such other exchange on which the Shares are
principally traded) on that date, or, if there is no sale on such Exchange (or
if not so listed, in the over-the-counter market) on that date, then the mean
between the closing bid and asked quotations for such Shares on such Exchange on
such date and (b) the net asset value per Share on a particular date shall be
the net asset value per Share most recently calculated by or on behalf of the
Fund. All dividends, distributions and other payments (whether made in cash or
Shares) shall be made net of any applicable withholding tax.
Open-market purchases provided for above may be made on any securities exchange
where the Fund's Shares are traded, in the over-the-counter market or in
negotiated transactions and may be on such terms as to price, delivery and
otherwise as the Plan Agent shall determine. Each Participant's uninvested funds
held by the Plan Agent will not bear interest, and it is understood that, in any
event, the Plan Agent shall have no liability in connection with any inability
to purchase Shares within 30 days after the initial date of such purchase as
herein provided, or with the timing of any purchases effected. The Plan Agent
shall have no responsibility as to the value of the Shares acquired for each
Participant's account. For the purpose of cash investments, the Plan Agent may
commingle each Participant's funds with those of other shareholders of the Fund
for whom the Plan Agent similarly acts as agent, and the average price
(including brokerage commissions) of all Shares purchased by the Plan Agent as
Plan Agent shall be the price per Share allocable to each Participant in
connection therewith.
39
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.
40
DIRECTORY
INVESTMENT MANAGER AND ADMINISTRATOR
Neuberger Berman Management Inc.
605 Third Avenue, 2nd Floor
New York, NY 10158-0180
877.461.1899 or 212.476.8800
SUB-ADVISER
Neuberger Berman, LLC
605 Third Avenue
New York, NY 10158-3698
CUSTODIAN
State Street Bank and Trust Company
225 Franklin Street
Boston, MA 02110
STOCK TRANSFER AGENT
Bank of New York
101 Barclay Street, 11-E
New York, NY 10286
LEGAL COUNSEL
Kirkpatrick & Lockhart Nicholson Graham LLP
1800 Massachusetts Avenue, NW
2nd Floor
Washington, DC 20036
INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
Ernst & Young LLP
200 Clarendon Street
Boston, MA 02116
41
DIRECTORS AND OFFICERS
The following tables set forth information concerning the directors and officers
of the Fund. All persons named as directors and officers also serve in similar
capacities for other funds administered or managed by Management and Neuberger.
The Statement of Additional Information for the Fund includes additional
information about Fund directors and is available upon request, without charge,
by calling (877) 461-1899.
INFORMATION ABOUT THE BOARD OF DIRECTORS
NUMBER OF
PORTFOLIOS IN
FUND COMPLEX
NAME, AGE, ADDRESS(1) AND LENGTH OF TIME OVERSEEN BY OTHER DIRECTORSHIPS HELD OUTSIDE
POSITION(2) WITH FUND SERVED PRINCIPAL OCCUPATION(S)(4) DIRECTOR(5) FUND COMPLEX BY DIRECTOR
------------------------------------------------------------------------------------------------------------------------------------
CLASS I
INDEPENDENT FUND DIRECTORS
Faith Colish (70) Since the Counsel, Carter Ledyard & 45 Director, American Bar Retirement
Director inception of the Milburn LLP (law firm) since Association (ABRA) since 1997
Fund(3) October 2002; formerly, (not-for-profit membership
Attorney-at-Law and President, association).
Faith Colish, A Professional
Corporation, 1980 to 2002.
C. Anne Harvey (68) Since the Consultant, C.A. Harvey 45 President, Board of Associates to
Director inception of the Associates since June 2001; The National Rehabilitation
Fund(3) formerly, Director, AARP, 1978 Hospital's Board of Directors
to December 2001. since 2002; formerly, Member,
Individual Investors Advisory
Committee to the New York Stock
Exchange Board of Directors, 1998
to June 2002; formerly, Member,
American Savings Education
Council's Policy Board (ASEC),
1998 to 2000; formerly, Member,
Executive Committee, Crime
Prevention Coalition of America,
1997 to 2000.
Cornelius T. Ryan (74) Since the Founding General Partner, 45 Director, Capital Cash Management
Director inception of the Oxford Partners and Oxford Trust (money market fund),
Fund(3) Bioscience Partners (venture Naragansett Insured Tax-Free
capital partnerships) and Income Fund, Rocky Mountain Equity
President, Oxford Venture Fund, Prime Cash Fund, several
Corporation. private companies and QuadraMed
Corporation (NASDAQ).
42
NUMBER OF
PORTFOLIOS IN
FUND COMPLEX
NAME, AGE, ADDRESS(1) AND LENGTH OF TIME OVERSEEN BY OTHER DIRECTORSHIPS HELD OUTSIDE
POSITION(2) WITH FUND SERVED PRINCIPAL OCCUPATION(S)(4) DIRECTOR(5) FUND COMPLEX BY DIRECTOR
------------------------------------------------------------------------------------------------------------------------------------
Peter P. Trapp (61) Since the Regional Manager for Atlanta 45 None.
Director inception of the Region, Ford Motor Credit
Fund(3) Company since August 1997;
formerly, President, Ford Life
Insurance Company, April 1995
to August 1997.
DIRECTOR WHO IS AN "INTERESTED PERSON"
Peter E. Sundman* (46) Since the Executive Vice President, 45 Director and Vice President,
Chief Executive Officer, inception of the Neuberger Berman Inc. (holding Neuberger & Berman Agency, Inc.
Director and Chairman of the Fund(3) company) since 1999; Head of since 2000; formerly, Director,
Board Neuberger Berman Inc.'s Mutual Neuberger Berman Inc. (holding
Funds Business (since 1999) company) from October 1999 to
and Institutional Business March 2003; Trustee, Frost Valley
(from 1999 to October 2005); YMCA.
responsible for Managed
Accounts Business and
intermediary distribution
since October 2005; President
and Director, Management since
1999; Executive Vice
President, Neuberger since
1999; formerly, Principal,
Neuberger from 1997 to 1999;
formerly, Senior Vice
President, Management from
1996 to 1999.
CLASS II
INDEPENDENT FUND DIRECTORS
John Cannon (75) Since the Consultant. Formerly, 45 Independent Trustee or Director of
Director inception of the Chairman, CDC Investment three series of Oppenheimer Funds:
Fund(3) Advisers (registered Limited Term New York Municipal
investment adviser), 1993 to Fund, Rochester Fund Municipals,
January 1999; formerly, and Oppenheimer Convertible
President and Chief Executive Securities Fund, since 1992.
Officer, AMA Investment
Advisors, an affiliate of the
American Medical Association.
43
NUMBER OF
PORTFOLIOS IN
FUND COMPLEX
NAME, AGE, ADDRESS(1) AND LENGTH OF TIME OVERSEEN BY OTHER DIRECTORSHIPS HELD OUTSIDE
POSITION(2) WITH FUND SERVED PRINCIPAL OCCUPATION(S)(4) DIRECTOR(5) FUND COMPLEX BY DIRECTOR
------------------------------------------------------------------------------------------------------------------------------------
Barry Hirsch (72) Since the Attorney-at-Law. Formerly, 45 None.
Director inception of Senior Counsel, Loews
the Fund(3) Corporation (diversified
financial corporation) May
2002 to April 2003; formerly,
Senior Vice President,
Secretary and General Counsel,
Loews Corporation.
Tom D. Seip (55) Since the General Partner, Seip 45 Director, H&R Block, Inc.
Director inception of Investments LP (a private (financial services company) since
the Fund(3) investment partnership); May 2001; Director, Forward
formerly, President and CEO, Management, Inc. (asset
Westaff, Inc. (temporary management) since 2001; formerly,
staffing), May 2001 to January Director, General Magic (voice
2002; Senior Executive at the recognition software) 2001 to
Charles Schwab Corporation 2002; formerly, Director,
from 1983 to 1999, including E-Finance Corporation (credit
Chief Executive Officer, decisioning services) 1999 to
Charles Schwab Investment 2003; formerly, Director,
Management, Inc. and Trustee, Save-Daily.com (micro investing
Schwab Family of Funds and services) 1999 to 2003; Director,
Schwab Investments from 1997 Offroad Capital Inc. (pre-public
to 1998; and Executive Vice internet commerce company).
President-Retail Brokerage,
Charles Schwab Investment
Management from 1994 to 1997.
44
NUMBER OF
PORTFOLIOS IN
FUND COMPLEX
NAME, AGE, ADDRESS(1) AND LENGTH OF TIME OVERSEEN BY OTHER DIRECTORSHIPS HELD OUTSIDE
POSITION(2) WITH FUND SERVED PRINCIPAL OCCUPATION(S)(4) DIRECTOR(5) FUND COMPLEX BY DIRECTOR
------------------------------------------------------------------------------------------------------------------------------------
DIRECTOR WHO IS AN "INTERESTED PERSON"
Jack L. Rivkin* (65) Since 2002(3) Executive Vice President and 45 Director, Dale Carnegie and
President and Director Chief Investment Officer, Associates, Inc. (private company)
Neuberger Berman Inc. (holding since 1998; Director, Emagin Corp.
company) since 2002 and 2003, (public company) since 1997;
respectively; Executive Vice Director, Solbright, Inc. (private
President and Chief Investment company) since 1998; Director,
Officer, Neuberger since Infogate, Inc. (private company)
December 2002 and 2003, since 1997; Director, Broadway
respectively; Director and Television Network (private
Chairman, Management since company) since 2000.
December 2002; formerly,
Executive Vice President,
Citigroup Investments, Inc.
from September 1995 to
February 2002; formerly,
Executive Vice President,
Citigroup Inc. from September
1995 to February 2002.
CLASS III
INDEPENDENT FUND DIRECTORS
Robert A. Kavesh (78) Since the Marcus Nadler Professor 45 Director, The Caring Community
Director inception of Emeritus of Finance and (not-for-profit); formerly,
the Fund(3) Economics, New York University Director, DEL Laboratories, Inc.
Stern School of Business; (cosmetics and pharmaceuticals),
formerly, Executive 1978 to 2004; formerly, Director,
Secretary-Treasurer, American Apple Bank for Savings, 1979 to
Finance Association, 1961 to 1990; formerly, Director, Western
1979. Pacific Industries, Inc., 1972 to
1986 (public company).
45
NUMBER OF
PORTFOLIOS IN
FUND COMPLEX
NAME, AGE, ADDRESS(1) AND LENGTH OF TIME OVERSEEN BY OTHER DIRECTORSHIPS HELD OUTSIDE
POSITION(2) WITH FUND SERVED PRINCIPAL OCCUPATION(S)(4) DIRECTOR(5) FUND COMPLEX BY DIRECTOR
------------------------------------------------------------------------------------------------------------------------------------
Howard A. Mileaf (68) Since the Retired. Formerly, Vice 45 Director, WHX Corporation (holding
Director inception of President and Special Counsel, company) since August 2002;
the Fund(3) WHX Corporation (holding Director, Webfinancial Corporation
company) 1993 to 2001. (holding company) since December
2002; Director, State Theatre of
New Jersey (not-for-profit
theater) since 2000; formerly,
Director, Kevlin Corporation
(manufacturer of microwave and
other products).
Edward I. O'Brien (77) Since the Formerly, Member, Investment 45 Director, Legg Mason, Inc.
Director inception of Policy Committee, Edward (financial services holding
the Fund(3) Jones, 1993 to 2001; company) since 1993; formerly,
President, Securities Industry Director, Boston Financial Group
Association ("SIA") (real estate and tax shelters)
(securities industry's 1993 to 1999.
representative in government
relations and regulatory
matters at the federal and
state levels) 1974 to 1992;
Adviser to SIA, November 1992
to November 1993.
William E. Rulon (73) Since the Retired. Formerly, Senior Vice 45 Director, Pro-Kids Golf and
Director inception of President, Foodmaker, Inc. Learning Academy (teach golf and
the Fund(3) (operator and franchiser of computer usage to "at risk"
restaurants) until January children) since 1998; formerly,
1997. Director, Prandium, Inc.
(restaurants) from March 2001 to
July 2002.
Candace L. Straight (58) Since the Private investor and 45 Director, The Proformance
Director inception of consultant specializing in the Insurance Company (personal lines
the Fund(3) insurance industry; formerly, property and casualty insurance
Advisory Director, Securitas company) since March 2004;
Capital LLC (a global private Director, Providence Washington
equity investment firm (property and casualty insurance
dedicated to making company) since December 1998;
investments in the insurance Director, Summit Global Partners
sector) 1998 to December 2002. (insurance brokerage firm) since
October 2000.
46
(1) The business address of each listed person is 605 Third Avenue, New York,
New York 10158.
(2) The Board of Directors shall at times be divided as equally as possible
into three classes of Directors designated Class I, Class II, and Class
III. The terms of office of Class I, Class II, and Class III Directors
shall expire at the annual meeting of shareholders held in 2006, 2007, and
2008, respectively, and at each third annual meeting of stockholders
thereafter.
(3) The Director has served since the Fund's inception except for Mr. Rivkin
who has served as a Director since December 2002 for the Funds with an
inception date of 2002. The inception date of Neuberger Berman Intermediate
Municipal Fund Inc., Neuberger Berman California Intermediate Municipal
Fund Inc., Neuberger Berman New York Intermediate Municipal Fund Inc., and
Neuberger Berman Real Estate Income Fund Inc. is 2002. The inception date
of Neuberger Berman Realty Income Fund Inc., Neuberger Berman Real Estate
Securities Income Fund Inc. and Neuberger Berman Income Opportunity Fund
Inc. is 2003. The inception date of Neuberger Berman Dividend Advantage
Fund Inc. is 2004.
(4) Except as otherwise indicated, each individual has held the positions shown
for at least the last five years.
(5) For funds organized in a master-feeder structure, we count the master fund
and its associated feeder funds as a single portfolio.
* Indicates a Director who is an "interested person" within the meaning of
the 1940 Act. Mr. Sundman and Mr. Rivkin are interested persons of the Fund
by virtue of the fact that they are officers and/or directors of Management
and Executive Vice Presidents of Neuberger Berman.
47
INFORMATION ABOUT THE OFFICERS OF THE FUND
POSITION AND
NAME, AGE, AND ADDRESS (1) LENGTH OF TIME SERVED PRINCIPAL OCCUPATION(S) (2)
-----------------------------------------------------------------------------------------------------------------------------------
Michael J. Bradler (35) Assistant Treasurer since 2005 Employee, Management since 1997; Assistant Treasurer,
fifteen registered investment companies for which Management
acts as investment manager and administrator since 2005.
Claudia A. Brandon (49) Secretary since the Fund's Vice President-Mutual Fund Board Relations, Management since
inception (3) 2000 and Assistant Secretary since 2004; Vice President,
Neuberger since 2002 and employee since 1999; Assistant
Secretary, Management since 2004; formerly, Vice President,
Management from 1986 to 1999; Secretary, fifteen registered
investment companies for which Management acts as investment
manager and administrator (three since 2000, four since
2002, three since 2003, four since 2004 and one since 2005).
Robert Conti (49) Vice President since the Fund's Senior Vice President, Neuberger since 2003; formerly, Vice
inception (3) President, Neuberger from 1999 to 2003; Senior Vice
President, Management since 2000; formerly, Controller,
Management until 1996; formerly, Treasurer, Management from
1996 to 1999; Vice President, fifteen registered investment
companies for which Management acts as investment manager
and administrator (three since 2000, four since 2002, three
since 2003, four since 2004 and one since 2005).
Brian J. Gaffney (52) Vice President since the Fund's Managing Director, Neuberger since 1999; Senior Vice
inception (3) President, Management since 2000; formerly, Vice President,
Management from 1997 to 1999; Vice President, fifteen
registered investment companies for which Management acts as
investment manager and administrator (three since 2000, four
since 2002, three since 2003, four since 2004 and one since
2005).
48
POSITION AND
NAME, AGE, AND ADDRESS (1) LENGTH OF TIME SERVED PRINCIPAL OCCUPATION(S) (2)
-----------------------------------------------------------------------------------------------------------------------------------
Sheila R. James (40) Assistant Secretary since the Employee, Neuberger since 1999; formerly, Employee,
Fund's inception (3) Management from 1991 to 1999; Assistant Secretary, fifteen
registered investment companies for which Management acts as
investment manager and administrator (seven since 2002,
three since 2003, four since 2004 and one since 2005).
Kevin Lyons (50) Assistant Secretary since 2003 Employee, Neuberger since 1999; formerly, Employee,
(4) Management from 1993 to 1999; Assistant Secretary, fifteen
registered investment companies for which Management acts as
investment manager and administrator (ten since 2003, four
since 2004 and one since 2005).
John M. McGovern (35) Treasurer and Principal Vice President, Neuberger since January 2004; Employee,
Financial and Accounting Officer Management since 1993; Treasurer and Principal Financial and
since 2005; prior thereto, Accounting Officer, fifteen registered investment companies
Assistant Treasurer since the for which Management acts as investment manager and
Fund's inception (3) administrator (fifteen since 2005); formerly, Assistant
Treasurer, fifteen registered investment companies for which
Management acts as investment manager and administrator from
2002 to 2005.
Frank Rosato (34) Assistant Treasurer since 2005 Employee, Management since 1995; Assistant Treasurer,
fifteen registered investment companies for which Management
acts as investment manager and administrator since 2005.
Frederic B. Soule (59) Vice President since the Fund's Senior Vice President, Neuberger since 2003; formerly, Vice
inception (3) President, Neuberger from 1999 to 2003; formerly, Vice
President, Management from 1995 to 1999; Vice President,
fifteen registered investment companies for which Management
acts as investment manager and administrator (three since
2000, four since 2002, three since 2003, four since 2004 and
one since 2005).
49
POSITION AND
NAME, AGE, AND ADDRESS (1) LENGTH OF TIME SERVED PRINCIPAL OCCUPATION(S) (2)
-----------------------------------------------------------------------------------------------------------------------------------
Chamaine Williams (34) Chief Compliance Officer since Vice President, Lehman Brothers Inc. since 2003; Chief
2005 Compliance Officer, fifteen registered investment companies
for which Management acts as investment manager and
administrator (fifteen since 2005); Chief Compliance
Officer, Lehman Brothers Asset Management Inc. since 2003;
Chief Compliance Officer, Lehman Brothers Alternative
Investment Management LLC since 2003; formerly, Vice
President, UBS Global Asset Management (US) Inc. (formerly,
Mitchell Hutchins Asset Management, a wholly-owned
subsidiary of PaineWebber Inc.) from 1997-2003.
----------
(1) The business address of each listed person is 605 Third Avenue, New York,
New York 10158.
(2) Except as otherwise indicated, each individual has held the positions shown
for at least the last five years.
(3) The officer has served since the Fund's inception. The inception date of
Neuberger Berman Intermediate Municipal Fund, Inc., Neuberger Berman
California Intermediate Municipal Fund, Inc., Neuberger Berman New York
Intermediate Municipal Fund, Inc., and Neuberger Berman Real Estate Income
Fund is 2002. The inception date of Neuberger Berman Realty Income Fund,
Inc., Neuberger Berman Real Estate Securities Income Fund, Inc. and
Neuberger Berman Income Opportunity Fund, Inc. is 2003. The inception date
of the Neuberger Berman Dividend Advantage Fund, Inc. is 2004.
(4) For Neuberger Berman Dividend Advantage Fund, Inc., the officer has served
since the Fund's inception in March 2004.
50
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 the Funds' 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 (800) 877-9700 (toll-free).
51
NOTICE TO SHAREHOLDERS
In January 2006 you will receive information to be used in filing your 2005 tax
returns, which will include a notice of the exact tax status of all dividends
paid to you by each Fund during calendar 2005. Please consult your own tax
advisor for details as to how this information should be reflected on your tax
returns.
For the fiscal year ended October 31, 2005, the percentages representing the
portion of distributions from net investment income, which are exempt from
federal income tax, other than alternative minimum tax are as follows:
NEUBERGER BERMAN
--------------------------------------------------------------------------------
California Intermediate Municipal Fund Inc. 99.96%
Intermediate Municipal Fund Inc. 99.81%
New York Intermediate Municipal Fund Inc. 99.95%
52
BOARD CONSIDERATION OF THE MANAGEMENT AND SUB-ADVISORY AGREEMENTS
At a meeting held on September 21, 2005, the Boards of Directors (collectively
the "Boards," each a "Board") of Neuberger Berman California Intermediate
Municipal Fund Inc., Neuberger Berman Intermediate Municipal Fund Inc. and
Neuberger Berman New York Intermediate Municipal Fund Inc. (each a "Fund"),
including the Directors who are not "interested persons" of each Fund
("Independent Fund Directors"), approved continuance of the Management and
Sub-Advisory Agreements ("Agreements") for each Fund.
In evaluating the Agreements, the Boards, including the Independent Fund
Directors, reviewed materials furnished by Management and Neuberger Berman, LLC
("Neuberger") in response to questions submitted by counsel to the Independent
Fund Directors, and met with senior representatives of Management and Neuberger
regarding their personnel and operations. The Independent Fund Directors were
advised by counsel that is experienced in Investment Company Act of 1940 matters
and that is independent of Management and Neuberger. The Independent Fund
Directors received a memorandum from independent counsel discussing the legal
standards for their consideration of the proposed continuance of the Agreements.
They met with such counsel separately from representatives of Management to
discuss the annual contract review. The annual contract review extends over two
regular meetings of the Boards to ensure that Management and Neuberger have time
to respond to any questions the Independent Fund Directors may have on their
initial review of the report and that the Independent Fund Directors have time
to consider those responses. In addition, during this process, the Boards held a
separate meeting devoted to reviewing and discussing Fund performance.
Each Board considered the following factors, among others, in connection with
its approval of the continuance of the Agreements: (1) the nature, extent, and
quality of the services to be provided by Management and Neuberger; (2) the
performance of each Fund compared to relevant market indices and a peer group of
investment companies; (3) the costs of the services to be provided and profits
historically realized by Management and its affiliates from the relationship
with the Funds; (4) the extent to which economies of scale might be realized as
each Fund grows; and (5) whether fee levels reflect those potential economies of
scale for the benefit of investors in each Fund. In their deliberations, the
members of each Board did not identify any particular information that was
all-important or controlling, and each Director may have attributed different
weights to the various factors.
Each Board evaluated the terms of the Agreements and whether the Agreements were
in the best interests of each Fund and its shareholders. Each Board considered,
with respect to each Fund, the nature, extent and quality of the services
provided under the Agreements and the overall fairness of the Agreements to the
Funds. The Boards requested and evaluated a report from Management and Neuberger
that addressed specific factors designed to inform the Boards' consideration of
these and other issues. The Boards also retained an independent consultant to
provide additional data.
With respect to the nature, extent and quality of the services provided, each
Board considered the performance of each Fund and the degree of risk undertaken
by the portfolio manager(s). The Boards considered the experience and staffing
of portfolio management and the investment research personnel of Management and
Neuberger dedicated to performing services for the Funds. The Boards noted that
Management also provides certain administrative services, including fund
accounting and compliance oversight. The Boards also considered Management's and
Neuberger's policies and practices regarding brokerage and allocation of
portfolio transactions for the Funds. In addition, the Boards noted the positive
compliance history of Management and Neuberger, as each firm has been free of
significant compliance problems.
With respect to the performance of each Fund, each Board considered the
performance of each Fund on both a market return and net asset value basis
relative to its benchmark and a peer group of investment companies pursuing
broadly similar strategies. Each Board also considered the performance in
relation to the degree of risk undertaken by the portfolio manager(s). In the
case of those Funds that had underperformed their peer group and/or relevant
market indices, each Board discussed each Fund's performance with Management and
discussed steps that Management had taken, or intended to take, to improve each
Fund's performance. The Boards also considered Management's resources and
responsiveness with respect to the Funds that experienced lagging performance.
With respect to the overall fairness of the Agreements, the Boards considered
the fee structure of the Agreements as compared to a peer group of comparable
funds and any fall-out benefits likely to accrue to Management or Neuberger or
their affiliates. The Boards also considered the profitability of Management and
its affiliates from their association with the Funds.
53
The Boards received a detailed report from an independent consultant that
compares each Fund's management fee and overall expense ratio to a peer group of
comparable funds. Each Board considered the range and average of the management
fees and expense ratios of the peer group. With regard to the sub-advisory fee
paid to Neuberger, the Boards noted that this fee is reflective of an "at cost"
basis and there is no profit to Neuberger with regard to these fees. Each Board
considered each Fund's overall expenses in relation to the overall expenses of
the peer group median. In addition, each Board considered the contractual waiver
of a portion of the management fee undertaken by Management for each Fund.
The Boards considered whether there were other funds that were sub-advised by
Management or its affiliates or separate accounts managed by Management with
similar investment objectives, policies and strategies as the Funds. The Boards
noted that there were no comparable sub-advised funds or separate accounts.
Each Board also evaluated any actual or anticipated economies of scale in
relation to the services Management provides to each Fund. The Boards considered
that each Fund was a closed-end fund that is not continuously offering shares
and that, without daily inflows and outflows of capital, there were not at this
time significant economies of scale to be realized by Management in managing
each Fund's assets.
In concluding that the benefits accruing to Management and its affiliates by
virtue of their relationship to the Funds were reasonable in comparison with the
costs of providing the investment advisory services and the benefits accruing to
each Fund, each Board reviewed specific data as to Management's profit or loss
on each Fund for a recent period and the trend in profit or loss since each
Fund's inception. The Boards also carefully examined Management's cost
allocation methodology and had an independent expert review the methodology. It
also reviewed an analysis from an independent data service on investment
management profitability margins. The Boards also reviewed whether Management
and Neuberger used brokers to execute Fund transactions that provide research
and other services to Management and Neuberger, and the types of benefits
potentially derived by the Funds and by other clients of Management and
Neuberger from such services. The Boards recognized that Management should be
entitled to earn a reasonable level of profits for services it provides to the
Funds and, based on its review, concluded it was satisfied that Management's
level of profitability from its relationship with the Funds was not excessive.
CONCLUSIONS
In approving the Agreements, each Board concluded that the terms of each
Agreement are fair and reasonable and that approval of the Agreements is in the
best interest of each Fund and its shareholders. In reaching this determination,
each Board considered that Management and Neuberger could be expected to provide
a high level of service to each Fund; in the case of underperforming Funds, that
it retained confidence in Management's and Neuberger's capabilities to manage
the Funds; that each Fund's fee structure appeared to each Board to be
reasonable given the quality of services expected to be provided; and that the
benefits accruing to Management and its affiliates by virtue of their
relationship to the Funds were reasonable in comparison with the costs of
providing the investment advisory services and the benefits accruing to each
Fund.
54
[NEUBERGER BERMAN LOGO]
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
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.
[RECYCLED SYMBOL] CO435 12/05
ITEM 2. CODE OF ETHICS
The Board of Neuberger Berman California 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"). A copy of the Code of Ethics is filed as Exhibit 12(a)(1) to this Form
N-CSR. 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 two audit committee financial
experts serving on its audit committee. The Registrant's audit committee
financial experts are John Cannon and Howard Mileaf. Mr. Cannon and Mr.Mileaf
are independent directors as defined by Form N-CSR.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES
Ernst & Young, LLP ("E&Y") serves as independent registered public accounting
firm to the Registrant.
(a) Audit Fees
----------
The aggregate fees billed for professional services rendered by E&Y for the
audit of the annual financial statements or services that are normally provided
by E&Y in connection with statutory and regulatory filings or engagements for
those fiscal years were $31,250 and $31,250 for the fiscal years ended 2004 and
2005, respectively.
(b) Audit-Related Fees
------------------
The aggregate fees billed to the Registrant in each of the last two fiscal years
for assurance and related services by E&Y that are reasonably related to the
performance of the audit of the Registrant's financial statements and are not
reported above in AUDIT FEES were $5,000 and $6,000 for the fiscal years ended
2004 and 2005, respectively. The nature of the services provided involved agreed
upon procedures relating to preferred shares. The Audit Committee approved 0%
and 0% of these services provided by E&Y for the fiscal years ended 2004 and
2005, respectively, pursuant to the waiver provisions of Rule 2-01(c)(7)(i)(C)
of Regulation S-X.
The fees billed to other entities in the investment company complex for
assurance and related services by E&Y that are reasonably related to the
performance of the audit that the Audit Committee was required to approve
because the engagement related directly to the operations and financial
reporting of the Registrant were $0 and $0 for the fiscal years ended 2004 and
2005, respectively.
(c) Tax Fees
--------
The aggregate fees billed to the Registrant for professional services rendered
by E&Y for tax compliance, tax advice, and tax planning were $8,700 and $8,700
for the fiscal years ended 2004 and 2005, respectively. The nature of the
services provided was tax compliance, tax advice, and tax planning. The Audit
Committee approved 0% and 0% of these services provided by E&Y for the fiscal
years ended 2004 and 2005, respectively, pursuant to the waiver provisions of
Rule 2-01(c)(7)(i)(C) of Regulation S-X.
The fees billed to other entities in the investment company complex for tax
compliance, tax advice, and tax planning that the Audit Committee was required
to approve because the engagement related directly to the operations and
financial reporting of the Registrant were $0 and $0 for the fiscal years ended
2004 and 2005, respectively.
(d) All Other Fees
--------------
The aggregate fees billed to the Registrant for products and services provided
by E&Y, other than services reported in AUDIT FEES, AUDIT-RELATED FEES, and TAX
FEES were $0 and $0 for the fiscal years ended 2004 and 2005, respectively.
The fees billed to other entities in the investment company complex for products
and services provided by E&Y, other than services reported in AUDIT FEES,
AUDIT-RELATED FEES, and TAX FEES that the Audit Committee was required to
approve because the engagement related directly to the operations and financial
reporting of the Registrant were $0 and $0 for the fiscal years ended 2004 and
2005, respectively.
(e) Audit Committee's Pre-approval Policies and Procedures
------------------------------------------------------
(1) The Audit Committee's pre-approval policies and procedures for the
Registrant to engage an accountant to render audit and non-audit services
delegate to the Chair of the Committee the power to pre-approve services between
meetings of the Committee.
(2) None of the services described in paragraphs (b) through (d) above were
approved by the Audit Committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01
of Regulation S-X.
(f) Hours Attributed to Other Persons
---------------------------------
Not applicable.
(g) Non-Audit Fees
--------------
Non-audit fees billed by E&Y for services rendered to the Registrant were
$13,700 and $14,700 for the fiscal years ended 2004 and 2005, respectively.
Non-audit fees billed by E&Y for services rendered to the Registrant's
investment adviser and any entity controlling, controlled by, or under common
control with the adviser that provides ongoing services to the Registrant were
$256,050 and $160,650 for the fiscal years ended 2004 and 2005, respectively.
(h) The Audit Committee of the Board of Directors considered whether the
provision of non-audit services rendered to the Registrant's investment adviser
and any entity controlling, controlled by, or under common control with the
adviser that provides ongoing services to the Registrant that were not
pre-approved by the Audit Committee because the engagement did not relate
directly to the operations and financial reporting of the Registrant is
compatible with maintaining E&Y's independence.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS
The Board has established an Audit Committee to oversee particular aspects of
the Registrant's management. The Audit Committee's purposes are (a) to oversee
the Funds' accounting and financial reporting processes, their internal control
over financial reporting and, as the Committee deems appropriate, to inquire
into the internal control over financial reporting of certain third-party
service providers; (b) to oversee the quality and integrity of the Funds'
financial statements and the independent audit thereof; (c) to oversee, or, as
appropriate, assist Board oversight of, the Funds' compliance with legal and
regulatory requirements that relate to the Funds' accounting and financial
reporting, internal control over financial reporting and independent audits; (d)
to approve prior to appointment the engagement of the Funds' independent
registered public accounting firms and, in connection therewith, to review and
evaluate the qualifications, independence and performance of the Funds'
independent registered public accounting firms; (e) to act as a liaison between
the Funds' independent registered public accounting firms and the full Board;
and (f) to prepare an audit committee report as required by Item 306 of
Regulations S-K to be included in proxy statements relating to the election of
directors. Its members are John Cannon, Howard A. Mileaf, Cornelius T. Ryan
(Chairman), Tom D. Seip, and Peter P. Trapp. All members are Independent Fund
Trustees.
ITEM 6. SCHEDULE OF INVESTMENTS
The complete schedule of investments for each series is disclosed in the
Registrant's 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
The Board has delegated to Neuberger Berman, LLC ("Neuberger Berman") the
responsibility to vote proxies related to the securities held in the Fund's
portfolios. Under this authority, Neuberger Berman is required by the Board to
vote proxies related to portfolio securities in the best interests of the Fund
and its stockholders. The Board permits Neuberger Berman to contract with a
third party to obtain proxy voting and related services, including research of
current issues.
Neuberger Berman has implemented written Proxy Voting Policies and Procedures
("Proxy Voting Policy") that are designed to reasonably ensure that Neuberger
Berman votes proxies prudently and in the best interest of its advisory clients
for whom Neuberger Berman has voting authority, including the Fund. The Proxy
Voting Policy also describes how Neuberger Berman addresses any conflicts that
may arise between its interests and those of its clients with respect to proxy
voting.
Neuberger Berman's Proxy Committee is responsible for developing, authorizing,
implementing and updating the Proxy Voting Policy, overseeing the proxy voting
process and engaging and overseeing any independent third-party vendors as
voting delegate to review, monitor and/or vote proxies. In order to apply the
Proxy Voting Policy noted above in a timely and consistent manner, Neuberger
Berman utilizes Institutional Shareholder Services Inc. ("ISS") to vote proxies
in accordance with Neuberger Berman's voting guidelines.
Neuberger Berman's guidelines adopt the voting recommendations of ISS. Neuberger
Berman retains final authority and fiduciary responsibility for proxy voting.
Neuberger Berman believes that this process is reasonably designed to address
material conflicts of interest that may arise between Neuberger Berman and a
client as to how proxies are voted.
In the event that an investment professional at Neuberger Berman believes that
it is in the best interests of a client or clients to vote proxies in a manner
inconsistent with Neuberger Berman's proxy voting guidelines or in a manner
inconsistent with ISS recommendations, the Proxy Committee will review
information submitted by the investment professional to determine that there is
no material conflict of interest between Neuberger Berman and the client with
respect to the voting of the proxy in that manner.
If the Proxy Committee determines that the voting of a proxy as recommended by
the investment professional presents a material conflict of interest between
Neuberger Berman and the client or clients with respect to the voting of the
proxy, the Proxy Committee shall: (i) take no further action, in which case ISS
shall vote such proxy in accordance with the proxy voting guidelines or as ISS
recommends; (ii) disclose such conflict to the client or clients and obtain
written direction from the client as to how to vote the proxy; (iii) suggest
that the client or clients engage another party to determine how to vote the
proxy; or (iv) engage another independent third party to determine how to vote
the proxy.
ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES
Not applicable to the Registrant.
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 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 last fiscal half-year 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 filed herewith.
(a)(2) The certifications required by Rule 30a-2(a) of the Act and Section 302
of the Sarbanes-Oxley Act of 2002 ("Sarbanes-Oxley Act") are attached
hereto.
(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 attached hereto.
The certifications provided pursuant to Section 906 of the Sarbanes-Oxley Act
are not deemed "filed" for purposes of Section 18 of the Securities Exchange Act
of 1934 ("Exchange Act"), or otherwise subject to the liability of that section.
Such certifications will not be deemed to be incorporated by reference into any
filing under the Securities Act of 1933 or the Exchange Act, except to the
extent that the Registrant specifically incorporates them by reference.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the Registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
Neuberger Berman California Intermediate Municipal Fund Inc.
By: /s/ Peter E. Sundman
------------------------
Peter E. Sundman
Chief Executive Officer
Date: January 9, 2006
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: January 9, 2006
By: /s/ John M. McGovern
------------------------
John M. McGovern
Treasurer and Principal Financial
and Accounting Officer
Date: January 9, 2006