As filed with the Securities and Exchange Commission on July 10, 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
c/o Neuberger Berman Management Inc.
Neuberger Berman California Intermediate Municipal Fund Inc.
605 Third Avenue, 2nd Floor
New York, New York 10158-0180
Arthur C. Delibert, Esq.
Kirkpatrick & Lockhart Nicholson Graham LLP
1601 K Street, N.W.
Washington, D.C. 20006-1600
(Names and Addresses of agents for service)
Date of fiscal year end: October 31, 2006
Date of reporting period: April 30, 2006
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,
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and the Commission will make this information public. A registrant is not
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burden to Secretary, Securities and Exchange Commission, 100 F Street, NE,
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under the clearance requirements of 44 U.S.C. ss. 3507.
ITEM 1. REPORTS TO SHAREHOLDERS
[NEUBERGER | BERMAN LOGO]
A LEHMAN BROTHERS COMPANY
Semi-Annual Report
April 30, 2006
NEUBERGER BERMAN
INTERMEDIATE
MUNICIPAL
CLOSED-END FUNDS
California Intermediate Municipal Fund Inc.
Intermediate Municipal Fund Inc.
New York Intermediate Municipal Fund Inc.
NEUBERGER BERMAN APRIL 30, 2006 (UNAUDITED)
CHAIRMAN'S LETTER
Dear Shareholder,
I am pleased to present to you this semi-annual report for the Neuberger Berman
Intermediate Municipal Closed-End Funds for the six months ended April 30, 2006.
The report includes portfolio commentary, a listing of the Funds' investments,
and their unaudited financial statements for the reporting period.
Each Fund's investment objective is to provide a high level of current income
exempt from regular federal income tax and, for each state-specific Fund, a high
level of current income exempt from that state's personal income taxes (and in
the case of the New York Fund, New York City personal income tax).
We invest in intermediate-term municipal bonds because our experience and
research indicate strongly that this maturity range has historically offered the
best risk/reward profile on the yield curve, providing much of the return of
longer-term bonds--with less volatility and risk.
We believe that our conservative investment philosophy and disciplined
investment process will benefit you with superior tax exempt current income over
the long term.
Thank you for your confidence in Neuberger Berman. We will continue to do our
best to earn it.
Sincerely,
/s/ Peter Sundman
--------------------------------------------
PETER SUNDMAN
CHAIRMAN OF THE BOARD
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)2006 Neuberger Berman Management Inc. All
rights reserved.
CONTENTS
THE FUNDS
CHAIRMAN'S LETTER 1
PORTFOLIO COMMENTARY 2
California Intermediate Municipal Fund Inc.
Intermediate Municipal Fund Inc.
New York Intermediate Municipal Fund Inc.
SCHEDULE OF INVESTMENTS
California Intermediate Municipal Fund Inc. 7
Intermediate Municipal Fund Inc. 12
New York Intermediate Municipal Fund Inc. 20
FINANCIAL STATEMENTS 26
FINANCIAL HIGHLIGHTS/PER SHARE DATA
California Intermediate Municipal Fund Inc. 36
Intermediate Municipal Fund Inc. 37
New York Intermediate Municipal Fund Inc. 38
DISTRIBUTION REINVESTMENT PLAN 40
DIRECTORY 42
PROXY VOTING POLICIES AND PROCEDURES 43
QUARTERLY PORTFOLIO SCHEDULE 43
CHANGE IN PORTFOLIO MANAGER 43
REPORT OF VOTES OF SHAREHOLDERS 44
1
INTERMEDIATE MUNICIPAL CLOSED-END FUNDS Portfolio Commentaries
We are pleased to report that on a Net Asset Value (NAV) basis, all three
Neuberger Berman Intermediate Municipal Closed-End Funds delivered positive
returns and outperformed the Lehman 10-Year Municipal Bond Index in the six
months ended April 30, 2006.
Four 25-basis-point Federal Reserve rate hikes restrained fixed income returns
during the reporting period. However, intermediate maturity municipal bonds
performed considerably better than intermediate U.S. Treasury securities and
corporate bonds, with our Lehman 10-Year Municipal Bond Index benchmark and the
Lehman 7-Year GO Index returning 1.24% and 1.23% respectively compared to 0.64%
and 0.04% gains for the Lehman Brother Intermediate U.S. Treasury Index and the
Lehman Brothers U.S. Credit Index, respectively.
Why did municipals perform so well relative to Treasuries and corporates? In our
opinion, it was because the people and institutions that buy municipal
securities tend to be investors rather than traders. This is particularly true
at the longer end of the municipal securities market, which is dominated by
insurance companies that structurally need to maintain positions in longer
maturity debt.
In the first half of fiscal 2006, lower rated issues outperformed high credit
quality municipal securities. Money continues to flow into lower credit quality
issues. However, we think this is simply because these securities have been
going up in price rather than as a result of favorable fundamentals. With credit
spreads as tight as they are currently, there appears to be little reason to
move into lower quality issues at this point.
With the Federal Reserve on the monetary warpath through the first half of
fiscal 2006, the portfolios remained defensively positioned, with
below-benchmark weighted average maturities and durations. This will likely
remain the case until we gain confidence that the Fed is ready to shift into
neutral. We do not try to divine changes in Fed policy by looking for linguistic
nuances in the notes released following Federal Open Market Committee meetings,
but rather by monitoring the same economic data the Fed looks at in making its
policy decisions. Currently, with longer term market interest rates finally
moving higher, expensive gasoline and higher adjustable rate mortgage payments
likely to put pressure on consumer spending, additional evidence of softening in
the housing market, and the Fed's own recognition of the lagging effect of rate
hikes on the economy, we think the Fed is nearly done tightening. If, in the
coming months, job growth and manufacturing activity moderate and commodity
prices stabilize, we believe the Fed will call a time out.
In general, we think the municipal securities market is in good shape. The
strong economy has bolstered municipal balance sheets and improved credit
quality. Relative to Treasuries, municipal bond yields still provide an
after-tax advantage for investors in high federal and state income tax brackets.
As always, there are a few things we are keeping our eyes on. We are extremely
cautious in the Gulf Coast states, where repairing infrastructure damaged by
Hurricanes Katrina and Rita is creating fiscal difficulties. We are also
sensitive to the fiscal health of issuers with underfunded
2
pension plans. Although we doubt there is the political will to overhaul the
federal income tax system, we continue to monitor debates in Washington over tax
policies that could impact the municipal securities market.
CALIFORNIA INTERMEDIATE MUNICIPAL FUND INC.
For the six months ended April 30, 2006, on an NAV basis, California
Intermediate Municipal Fund returned 1.68% compared to the Lehman 10-Year
Municipal Bond Index's 1.24% gain.
As of April 30, 2006, the portfolio was comprised of 88.4% revenue bonds, 10.3%
general obligation bonds, and 1.3% other assets and short-term investments.
Bonds subject to the Alternative Minimum Tax (AMT) equaled 13.49% of assets. At
the close of the reporting period, the Fund's duration was 5.2 years.
INTERMEDIATE MUNICIPAL FUND INC.
For the six months ended April 30, 2006, on an NAV basis, Intermediate Municipal
Fund returned 1.71% compared to the Lehman 10-Year Municipal Bond Index's 1.24%
gain.
As of April 30, 2006, the portfolio was comprised of 75.7% revenue bonds, 17.5%
general obligation bonds, 5.4% pre-refunded/escrow bonds, and 1.4% other assets
and short-term investments. Bonds subject to the AMT equaled 13.22% of assets.
At the close of the reporting period, the Fund's duration was 5.3 years.
NEW YORK INTERMEDIATE MUNICIPAL FUND INC.
For the six months ended April 30, 2006, on an NAV basis, New York Intermediate
Municipal Fund returned 1.54% compared to the Lehman 10-Year Municipal Bond
Index's 1.24% gain.
As of April 30, 2006, the portfolio was comprised of 94.4% revenue bonds, 4.7%
general obligation bonds, and 0.9% other assets and short-term investments.
Bonds subject to the AMT equaled 21.25% of assets. At the close of the reporting
period, the Fund's duration was 5.3 years.
Sincerely,
/s/ Thomas Brophy /s/ Lori Canell
-----------------------------------------
THOMAS BROPHY AND LORI CANELL
PORTFOLIO CO-MANAGERS
3
INTERMEDIATE MUNICIPAL CLOSED-END FUNDS
PERFORMANCE HIGHLIGHTS
AVERAGE ANNUAL
SIX MONTH TOTAL RETURN
INCEPTION PERIOD ENDED SINCE
NAV(1, 3, 4) DATE 4/30/2006 1 YEAR INCEPTION
CALIFORNIA INTERMEDIATE
MUNICIPAL FUND 9/24/2002 1.68% 1.81% 5.92%
INTERMEDIATE MUNICIPAL FUND 9/24/2002 1.71% 1.93% 6.12%
NEW YORK INTERMEDIATE
MUNICIPAL FUND 9/24/2002 1.54% 1.63% 5.62%
PERFORMANCE HIGHLIGHTS
AVERAGE ANNUAL
SIX MONTH TOTAL RETURN
INCEPTION PERIOD ENDED SINCE
MARKET PRICE(2, 3, 4) DATE 4/30/2006 1 YEAR INCEPTION
CALIFORNIA INTERMEDIATE
MUNICIPAL FUND 9/24/2002 1.46% 8.32% 2.63%
INTERMEDIATE MUNICIPAL FUND 9/24/2002 (0.19%) 3.91% 2.08%
NEW YORK INTERMEDIATE
MUNICIPAL FUND 9/24/2002 5.63% 12.46% 3.50%
CALIFORNIA INTERMEDIATE MUNICIPAL FUND RATING SUMMARY
RATING SUMMARY
AAA 45.2%
AA 9.4
A 18.4
BBB 23.4
BB 1.8
B 0.7
CCC 0.0
CC 0.0
C 0.0
D 0.0
Not Rated 1.0
Short Term 0.1
INTERMEDIATE MUNICIPAL FUND
RATING SUMMARY
AAA 56.5%
AA 8.3
A 10.3
BBB 19.7
BB 1.9
B 0.8
CCC 0.4
CC 0.0
C 0.0
D 0.0
Not Rated 2.1
Short Term 0.0
NEW YORK INTERMEDIATE MUNICIPAL FUND
RATING SUMMARY
AAA 23.9%
AA 30.8
A 14.5
BBB 17.4
BB 8.8
B 1.6
CCC 0.4
CC 0.0
C 0.0
D 0.0
Not Rated 2.6
Short Term 0.0
Closed-end funds, unlike open-end funds, are not continually offered. There is
an initial public offering and once issued common shares of closed-end funds are
sold in the open market through a stock exchange.
The composition, industries and holdings of the Funds are subject to change.
Investment return will fluctuate. Past performance is no guarantee of future
results.
4
ENDNOTES
1. Returns based on Net Asset Value (NAV) of the Funds.
2. Returns based on market price of Fund shares on the American Stock
Exchange.
3. A portion of the income from each Fund may be a tax preference item for
purposes of the federal alternative minimum tax for certain investors.
4. Neuberger Berman Management Inc. has contractually agreed to waive a
portion of the management fees that it is entitled to receive from each
Fund. Each undertaking lasts until October 31, 2011. Please see the notes
to the financial statements for specific information regarding the rate of
the management fees waived by Neuberger Berman Management Inc. Absent such
a waiver, the performance of each Fund would be lower.
5. Unaudited performance data current to the most recent month-end are
available at www.nb.com.
5
GLOSSARY OF INDICES
LEHMAN BROTHERS 7-YEAR GENERAL OBLIGATION INDEX: An unmanaged total return performance benchmark for the
intermediate-term, 7-year, investment grade General
Obligations (State and Local) tax-exempt bond market.
LEHMAN BROTHERS U.S. CREDIT INDEX: This index represents publicly issued U.S. corporate
and specified foreign debentures and secured notes that
meet the specified maturity, liquidity, and quality
requirements. To qualify, bonds must be SEC-registered
and be an investment grade credit security. This index
is the U.S. Credit component of the U.S.
Government/Credit index.
LEHMAN BROTHERS INTERMEDIATE U.S. TREASURY INDEX: This index represents public obligations of the U.S.
Treasury with a remaining maturity from one up to (but
not including) 10 years.
LEHMAN 10-YEAR MUNICIPAL BOND INDEX: This index is a broad-based unmanaged index which
includes investment-grade (rated Baa or higher)
tax-exempt bonds that are issued by state and local
governments and have maturities of 8 to 12 years.
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)
ARIZONA (0.8%)
$ 750 Verrado Comm. Fac. Dist. Number 1 G.O., Ser. 2003,
6.15%, due 7/15/17 $ 793^^
CALIFORNIA (135.3%)
780 Abag Fin. Au. Cert. of Participation Rev. (Channing House),
Ser. 1999, 4.90%, due 2/15/09 BBB+ 796('b')
3,050 Abag Fin. Au. Cert. of Participation Rev.
(Episcopal Homes Foundation), Ser. 1998, 5.13%, due 7/1/18 BBB+ 3,097('b')
1,000 Abag Fin. Au. Rev. (San Diego Hosp. Assoc.), Ser. 2003 C,
5.13%, due 3/1/18 Baa1 BBB+ 1,019('b')
1,250 Alameda Co. Cert. of Participation Ref. Rev., Ser. 2001 A,
(MBIA Insured), 5.38%, due 12/1/17 AAA 1,341
1,285 Bay Area Governments Assoc. BART SFO Extension Rev.
(Arpt. Premium Fare), Ser. 2002 A, (AMBAC Insured),
5.00%, due 8/1/21 AAA 1,329
1,000 Burbank Pub. Svc. Dept. Elec. Rev., Ser. 1998, (FSA Insured),
5.13%, due 6/1/16 AAA 1,037
640 California Co. Tobacco Securitization Agcy. Tobacco Settlement
Asset-Backed Rev., Ser. 2002, 4.75%, due 6/1/19 Baa3 BBB 643
1,750 California Ed. Fac. Au. Ref. Rev. (Stanford Univ.), Ser. 2001 R,
5.00%, due 11/1/21 Aaa AAA 1,812('b')
2,000 California Hlth. Fac. Fin. Au. Rev. (Catholic Healthcare West),
Ser. 2004 I, 4.95%, due 7/1/26 A3 A- 2,058('b')
2,000 California Hlth. Fac. Fin. Au. Rev. (Cedars-Sinai Med. Ctr.),
Ser. 1999 A, 6.13%, due 12/1/19 A3 2,179('b')
2,000 California Hlth. Fac. Fin. Au. Rev. (Cedars-Sinai Med. Ctr.),
Ser. 2005, 5.00%, due 11/15/21 A3 2,055('b')
1,000 California Hlth. Fac. Fin. Au. Rev. (Kaiser Permanente),
Ser. 1998 B, 5.00%, due 10/1/20 AAA 1,029('b')
4,000 California Poll. Ctrl. Fin. Au. Ref. PCR (Pacific Gas & Elec. Co.),
Ser. 1996 A, (MBIA Insured), 5.35%, due 12/1/16 AAA 4,233('b')
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 1,565('b')
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 1,011('b')
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 3,064('b')
4,500 California St. Dept. of Wtr. Res. Pwr. Supply Rev., Ser. 2002 A,
5.75%, due 5/1/17 A2 BBB+ 5,007
1,000 California St. Dept. of Wtr. Res. Pwr. Supply Rev., Ser. 2002 A,
5.38%, due 5/1/22 A2 BBB+ 1,093
2,250 California St. G.O., Ser. 2002, 5.00%, due 10/1/17 A2 A 2,326
1,000 California St. Pub. Works Board Lease (Dept. of Gen. Svc.)
Rev. (Cap. East End Complex), Ser. 2002 A, (AMBAC Insured),
5.25%, due 12/1/16 AAA 1,063
1,095 California St. Pub. Works Board Lease Rev.
(California Comm. Colleges), Ser. 2004 B, 5.50%, due 6/1/20 Baa1 BBB- 1,168
3,000 California St. Pub. Works Board Lease Rev.
(Regents of the Univ. of California, UCLA Replacement Hosp.),
Ser. 2002 A, (FSA Insured), 5.38%, due 10/1/13 AAA 3,243
See Notes to Schedule of Investments 7
SCHEDULE OF INVESTMENTS California Intermediate Municipal Fund Inc. cont'd
PRINCIPAL AMOUNT SECURITY @ RATING VALUE+
(000'S OMITTED) MOODY'S S&P (000'S OMITTED)
$1,000 California St. Univ. Fresno Assoc., Inc. Rev. (Auxiliary Organization
Event Ctr.), Ser. 2002, 5.00%, due 7/1/12 Baa3 BBB- $1,064
2,000 California Statewide CDA Cert. of Participation Rev. (Children's Hosp.
Los Angeles), Ser. 1999, 5.13%, due 8/15/19 A3 A 2,059('b')
1,890 California Statewide CDA Cert. of Participation Rev.
(The Internext Group), Ser. 1999, 5.38%, due 4/1/17 BBB 1,916('b')
1,000 California Statewide CDA Hlth. Fac. Rev. (Adventist Hlth.),
Ser. 2005 A, 5.00%, due 3/1/20 A A 1,027('b')
5,000 California Statewide CDA Hlth. Fac. Rev. (Mem. Hlth. Svcs.),
Ser. 2003 A, 6.00%, due 10/1/16 A3 A 5,447('b')
3,000 California Statewide CDA Rev. (Kaiser Permanente),
Ser. 2002 E, 4.70%, due 11/1/36 Putable 6/1/09 A3 A+ 3,056('b')
1,000 Central Joint Pwr. Hlth. Fin. Au. Cert. of Participation Rev.
(Comm. Hosp. of Central California Proj.), Ser. 2000,
5.50%, due 2/1/14 Baa2 BBB- 1,029('b')
1,020 Cerritos Pub. Fin. Au. Sub. Tax Allocation Rev. (Cerritos
Redev. Proj.), Ser. 2002 B, 4.40%, due 11/1/16 BBB 973
2,550 Contra Costa Comm. College Dist. G.O., Ser. 2002,
(FGIC Insured), 5.25%, due 8/1/17 Aa2 AA- 2,707
1,210 Elk Grove Spec. Tax Rev. (East Franklin Comm. Fac. Dist.
Number 1), Ser. 2002 A, 5.38%, due 8/1/17 BB+ 1,281
1,000 Fresno Unified Sch. Dist. Ref. G.O., Ser. 2002 A, (MBIA Insured),
6.00%, due 2/1/17 A+ 1,148
2,835 Glendale Redev. Agcy. Tax Allocation Rev. (Central Glendale
Redev. Proj.), Ser. 2002, (MBIA Insured), 5.00%, due 12/1/16 AAA 2,986
2,480 Glendale Redev. Agcy. Tax Allocation Rev. (Central Glendale
Redev. Proj.), Ser. 2002, (MBIA Insured), 5.25%, due 12/1/17 AAA 2,644
1,000 Kings Canyon Joint Unified Sch. Dist. G.O., Ser. 2002,
(FGIC Insured), 5.38%, due 8/1/17 A 1,072
1,905 Long Beach Bond Fin. Au. Tax Allocation Rev. (Downtown,
North Long Beach, Poly High, & West Beach Redev. Proj.),
Ser. 2002 A, (AMBAC Insured), 5.38%, due 8/1/17 AAA 2,035
500 Long Beach Fin. Au. Rev., Ser. 1992, (AMBAC Insured),
6.00%, due 11/1/17 AAA 570
1,275 Los Angeles Co. Long Beach Unified Sch. Dist. G.O.,
Ser. 2002 D, (FSA Insured), 5.00%, due 8/1/17 Aa3 1,330
5,000 Los Angeles Dept. of Arpts. Rev. (Los Angeles Int'l. Arpt.),
Ser. 2002 A, (FGIC Insured), 5.25%, due 5/15/18 Aaa AAA 5,272
1,270 Los Angeles Dept. of Wtr. & Pwr. Sys. Rev., Ser. 2001 A,
Sub. Ser. A-3, 5.38%, due 7/1/20 Aa3 AA- 1,273
100 Los Angeles Dept. of Wtr. & Pwr. Rev., Sub. Ser. 2001 B-3,
(LOC: Citibank, N.A.), 3.78%, due 7/1/34 VMIG1 A-1+ 100
500 Marin Co. Dixie Elementary Sch. Dist. G.O., Ser. 2000 A,
(FSA Insured), 5.38%, due 8/1/17 AA- 534
1,045 Marin Co. Muni. Wtr. Dist. Wtr. Ref. Rev., Ser. 2002,
(AMBAC Insured), 5.00%, due 7/1/17 AAA 1,089
1,090 Moreland Sch. Dist. Ref. G.O., Ser. 2002, (FGIC Insured),
5.13%, due 9/1/17 AA- 1,145
535 Nevada & Placer Cos. Irrigation Dist. Cert. of Participation Rev.,
Ser. 2002, (FGIC Insured), 5.00%, due 1/1/16 AAA 560
565 Nevada & Placer Cos. Irrigation Dist. Cert. of Participation Rev.,
Ser. 2002, (FGIC Insured), 5.00%, due 1/1/17 AAA 589
1,045 Oakland G.O., Ser. 2002 A, (FGIC Insured), 5.00%, due 1/15/15 AAA 1,096
1,210 Oakland G.O., Ser. 2002 A, (FGIC Insured), 5.00%, due 1/15/18 A1 A+ 1,257
8
SCHEDULE OF INVESTMENTS California Intermediate Municipal Fund Inc. cont'd
PRINCIPAL AMOUNT SECURITY @ RATING VALUE +
(000'S OMITTED) MOODY'S S&P (000'S OMITTED)
$ 605 Oakland Redev. Agcy. Rev. (Coliseum Area Redev. Proj.),
Ser. 2003, 5.00%, due 9/1/16 A- $ 618
635 Oakland Redev. Agcy. Rev. (Coliseum Area Redev. Proj.),
Ser. 2003, 5.00%, due 9/1/17 A- 645
1,290 Oakland Redev. Agcy. Sub. Tax Allocation Rev. (Central Dist.
Redev. Proj.), Ser. 2003, (FGIC Insured), 5.50%, due 9/1/17 AAA 1,387
1,445 Oceanside Cert. of Participation Ref. Rev., Ser. 2003 A,
(AMBAC Insured), 5.25%, due 4/1/14 AAA 1,555
3,890 Port of Oakland Ref. Rev., Ser. 2002 N, (MBIA Insured),
5.00%, due 11/1/13 AAA 4,036
2,655 Riverside Co. Eastern Muni. Wtr. Dist. Cert. of Participation
Wtr. & Swr. Rev., Ser. 2001 A, (FGIC Insured), 5.00%, due
7/1/19 Aaa AAA 2,752
440 Roseville Stone Point Comm. Fac. District No. 1 Special
Tax Rev., Ser. 2003, 5.70%, due 9/1/17 452^^
2,600 Sacramento Muni. Util. Dist. Elec. Rev., Ser. 1997 K,
(AMBAC Insured), 5.70%, due 7/1/17 AAA 2,940
830 San Diego Redev. Agcy. Sub. Parking Rev. (Centre City
Redev. Proj.), Ser. 2003 B, 4.80%, due 9/1/15 Baa2 A- 837
820 San Diego Redev. Agcy. Sub. Parking Rev. (Centre City
Redev. Proj.), Ser. 2003 B, 4.90%, due 9/1/16 Baa2 A- 827
2,000 San Diego Unified Sch. Dist. G.O., Ser. 2002 D,
(FGIC Insured), 5.25%, due 7/1/21 Aa2 AA 2,159
3,000 San Francisco Bay Area Toll Au. Toll Bridge Rev., Ser. 2001
D, 5.00%, due 4/1/17 Aa3 AA 3,109
1,500 San Francisco City & Co. Int'l. Arpt. Second Ser. Rev.,
(FGIC Insured), 5.25%, due 5/1/16 AAA 1,561
5,000 San Francisco City & Co. Redev. Agcy. Lease Ref. Rev.
(George R. Moscone Convention Ctr.), Ser. 2002, (FSA
Insured), 5.00%, due 7/1/17 Aaa AAA 5,231
2,000 San Francisco St. Bldg. Au. Lease Rev.
(San Francisco Civic Ctr. Complex), Ser. 1996 A,
(AMBAC Insured), 5.25%, due 12/1/16 AAA 2,058
1,000 San Jose Arpt. Ref. Rev., Ser. 2002 B, (FSA Insured),
5.00%, due 3/1/11 AAA 1,042
1,615 San Jose Arpt. Ref. Rev., Ser. 2002 B, (FSA Insured),
5.00%, due 3/1/12 AAA 1,687
2,500 San Jose Fin. Au. Lease Rev. (Civic Ctr. Proj.), Ser. 2002 B,
(AMBAC Insured), 5.25%, due 6/1/17 AAA 2,644
1,000 San Jose Multi-Family Hsg. Rev. (Fallen Leaves Apts. Proj.),
Ser. 2002 J-1, (AMBAC Insured), 4.95%, due 12/1/22 Aaa AAA 1,017('b')
1,620 Santa Clara Co. Fremont Union High Sch. Dist. G.O.,
Ser. 2002 C, (FSA Insured), 5.00%, due 9/1/20 Aa2 AA 1,731
1,000 Santa Rosa Rancheria Tachi Yokut Tribe Enterprise Rev.,
Ser. 2003, 6.13%, due 3/1/13 1,004^^
3,905 Solano Co. Cert. of Participation Rev., Ser. 2002, (MBIA
Insured), 5.25%, due 11/1/17 AAA 4,154
1,000 South Gate Pub. Fin. Au. Tax Allocation Rev. (South Gate
Redev. Proj. No. 1), Ser. 2002, 5.00%, due 9/1/16 AAA 1,049
600 Univ. of California Regents Cert. of Participation Rev. (San
Diego Campus & Sacramento Proj.), Ser. 2002 A, 5.25%, due
1/1/18 Aa2 629
1,000 Univ. of California Regents Rev. (Multi. Purp. Proj.), Ser.
2000 K, (MBIA Insured), 5.00%, due 9/1/12 Aaa AAA 1,041
--------
133,592
--------
See Notes to Schedule of Investments 9
SCHEDULE OF INVESTMENTS California Intermediate Municipal Fund Inc. cont'd
PRINCIPAL AMOUNT SECURITY @ RATING VALUE+
(000'S OMITTED) MOODY'S S&P (000'S OMITTED)
FLORIDA (0.8%)
$ 750 Miami Beach Hlth. Fac. Au. Hosp. Ref. Rev.
(Mount Sinai Med. Ctr. of Florida Proj.), Ser. 2004,
6.25%, due 11/15/09 Ba1 BB+ $ 790('b')
------
GEORGIA (0.8%)
1,000 De Kalb Co. Dev. Au. Ref. PCR (General Motors Corp. Proj.),
Ser. 2002, 6.00%, due 3/15/21 B3 B 841('b')
------
GUAM (0.7%)
700 Guam Govt. Waterworks Au. Wtr. & Wastewater Sys. Rev.,
Ser. 2005, 5.50%, due 7/1/16 Ba2 729
------
LOUISIANA (2.9%)
1,500 Morehouse Parish Ref. PCR (Int'l. Paper Co. Proj.), Ser.
2001 A, 5.25%, due 11/15/13 Baa2 BBB 1,548('b')
1,250 Tobacco Settlement Fin. Corp. Tobacco Settlement
Asset-Backed Rev., Ser. 2001 B, 5.50%, due 5/15/30 Baa3 BBB 1,297
------
2,845
------
NEW YORK (1.1%)
500 New York City IDA Spec. Fac. Rev. (American Airlines, Inc.
J.F.K. Int'l. Arpt. Proj.), Ser. 2005, 7.50%, due 8/1/16 B- 546('b')
500 New York City Ind. Dev. Agy. Liberty Rev. (7 World Trade Center,
LLC Proj.), Ser. 2005 A, 6.25%, due 3/1/15 527^^
------
1,073
------
NORTH CAROLINA (1.5%)
1,405 North Carolina Muni. Pwr. Agcy. Number 1 Catawba Elec. Rev.,
Ser. 2003 A, 5.50%, due 1/1/14 A3 BBB+ 1,488
------
OHIO (0.5%)
500 Coshocton Co. Env. Imp. Ref. Rev. (Smurfit-Stone
Container Enterprises, Inc. Proj.), Ser. 2005, 5.13%, due 8/1/13 CCC+ 480('b')
------
PENNSYLVANIA (1.1%)
1,000 Cumberland Co. West Shore Area Au. Hosp. Rev.
(Holy Spirit Hosp. of the Sisters of Christian Charity Proj.),
Ser. 2001, 6.00%, due 1/1/18 BBB 1,060('b')
------
PUERTO RICO (6.7%)
1,320 Puerto Rico Children's Trust Tobacco Settlement
Asset-Backed Rev., Ser. 2002, 5.38%, due 5/15/33 Baa3 BBB 1,351
1,000 Puerto Rico Ind., Tourist, Ed., Med. & Env. Ctrl. Fac. Rev.
(Polytechnic Univ. of Puerto Rico Proj.), Ser. 2002 A,
(ACA Insured), 5.25%, due 8/1/15 A 1,028('b')
3,000 Puerto Rico Muni. Fin. Agcy. Rev., Ser. 2002 A, (FSA Insured),
5.25%, due 8/1/17 AAA 3,203
1,000 Puerto Rico Muni. Fin. Agcy. Rev., Ser. 2002 A, (FSA Insured),
5.25%, due 8/1/21 Aaa AAA 1,069
------
6,651
------
TEXAS (3.4%)
900 Brazos River Au. Ref. PCR (TXU Energy Co. LLC Proj.),
Ser. 2003 A, 6.75%, due 4/1/38 Putable 4/1/13 Baa2 BBB 1,008('b')
750 Brazos River Au. Ref. Rev. (Reliant Energy, Inc. Proj.), Ser.
1999 B, 7.75%, due 12/1/18 BBB- 814('b')
1,000 Brazos River Harbor Navigation Dist. of Brazoria Co. Env. Fac.
Rev. (Dow Chemical Co. Proj.), Ser. 2002 A-4, 5.20%, due 5/15/33 A3 A- 1,020('b')
500 Dallas-Fort Worth Int'l. Arpt. Fac. Imp. Corp. Rev., Ser.
2004 A-1, 6.15%, due 1/1/16 Ba2 503('b')
------
3,345
------
10
SCHEDULE OF INVESTMENTS California Intermediate Municipal Fund Inc. cont'd
PRINCIPAL AMOUNT SECURITY @ RATING VALUE +
(000'S OMITTED) MOODY'S S&P (000'S OMITTED)
VIRGIN ISLANDS (2.1%)
$ 250 Virgin Islands Pub. Fin. Au. Refinery Fac. Rev.
(HOVENSA Refinery), Ser. 2003, 6.13%, due 7/1/22 Baa3 BBB- $ 267
750 Virgin Islands Pub. Fin. Au. Rev. (Virgin Islands Matching
Fund Loan Notes), Ser. 1998 E, 6.00%, due 10/1/22 787^^
1,000 Virgin Islands Wtr. & Pwr. Au. Elec. Sys. Ref. Rev., Ser. 1998,
5.30%, due 7/1/18 988^^
--------
2,042
--------
TOTAL INVESTMENTS (157.7%) (COST $153,475) 155,729##
Cash, receivables and other assets, less liabilities (2.0%) 2,018
Liquidation Value of Auction Market Preferred Shares [(59.7%)] (59,000)
--------
TOTAL NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS (100.0%) $ 98,747
--------
See Notes to Schedule of Investments 11
SCHEDULE OF INVESTMENTS Intermediate Municipal Fund Inc.
PRINCIPAL AMOUNT SECURITY @ RATING VALUE +
(000'S OMITTED) MOODY'S S&P (000'S OMITTED)
ALABAMA (1.5%)
$ 4,210 DCH Hlth. Care Au. Hlth. Care Fac. Rev., Ser. 2002,
5.25%, due 6/1/14 A1 A+ $ 4,447
-------
ARIZONA (1.1%)
1,465 Arizona Energy Management Svcs. (Main) LLC Energy
Conservation Rev., (Arizona St. Univ. Proj. -Main Campus),
Ser. 2002, (MBIA Insured), 5.25%, due 7/1/17 Aaa AAA 1,556
1,750 Verrado Comm. Fac. Dist. Number 1 G.O., Ser. 2003,
6.15%, due 7/15/17 1,850^^
-------
3,406
-------
CALIFORNIA (7.6%)
3,500 California Poll. Ctrl. Fin. Au. Solid Waste Disp. Rev.
(Republic Svc., Inc. Proj.), Ser. 2002 B, 5.25%, due 6/1/23 Baa2 BBB+ 3,651('b')
2,000 California Poll. Ctrl. Fin. Au. Solid Waste Disp. Rev.
(Waste Management, Inc. Proj., Ser. 2005 C, 5.13%,
due 11/1/23 BBB 2,043('b')
2,500 California St. Dept. of Wtr. Res. Pwr. Supply Rev., Ser. 2002 A,
5.75%, due 5/1/17 Aaa A- 2,782
3,460 California St. Dept. of Wtr. Res. Pwr. Supply Rev., Ser. 2002 A,
5.38%, due 5/1/22 Aaa A- 3,781
1,500 California St. Pub. Works Board Lease Rev., Ser. 2002 A,
(AMBAC Insured), 5.25%, due 12/1/17 Aaa AAA 1,592
1,240 California Statewide CDA Hlth. Fac. Rev. (Mem. Hlth. Svcs.),
Ser. 2003 A, 6.00%, due 10/1/16 A3 A+ 1,351('b')
3,000 Golden St. Tobacco Securitization Corp. Tobacco Settlement
Asset-Backed Rev., Ser. 2003 A-1,6.25%, due 6/1/33 Baa3 BBB 3,260
2,080 Oakland Redev. Agcy.Sub. Tax Allocation Rev.
(Central Dist. Redev. Proj.), Ser. 2003, (FGIC Insured),
5.50%, due 9/1/18 Aaa AAA 2,230
740 San Diego Redev. Agcy. Sub. Parking Rev. (Centre City
Redev. Proj.), Ser. 2003 B, 5.00%, due 9/1/17 Baa2 A- 753
1,500 Santa Rosa Rancheria Tachi Yokut Tribe Enterprise Rev., Ser. 2006,
4.88%, due 3/1/16 1,485^^
-------
22,928
-------
COLORADO (5.3%)
4,220 Colorado Springs Util. Sys. Sub. Lien Ref. Rev., Ser. 2002 A,
(AMBAC Insured), 5.38%, due 11/15/18 Aaa AAA 4,508
4,000 Denver City & Co. Arpt. Sys. Ref. Rev., Ser. 2002 E,
(FGIC Insured), 5.25%, due 11/15/14 Aaa AAA 4,203
2,000 Denver City & Co. Arpt. Sys. Rev., Ser. 1991 D,
7.75%, due 11/15/13 Aaa AAA 2,291
4,610 Thornton Cert. of Participation, Ser. 2002, (AMBAC Insured),
5.38%, due 12/1/16 Aaa AAA 4,929
-------
15,931
-------
CONNECTICUT (0.8%)
2,400 Mashantucket Western Pequot Tribe Spec. Rev.,
Sub. Ser. 1997 B, 5.70%, due 9/1/12 Baa3 2,498(n)
-------
DISTRICT OF COLUMBIA (1.6%)
4,495 Dist. of Columbia (Washington, D.C.) Ref.G.O., Ser. 2002 C,
5.25%, due 6/1/13 Aaa AAA 4,778
-------
12
SCHEDULE OF INVESTMENTS Intermediate Municipal Fund Inc. cont'd.
PRINCIPAL AMOUNT SECURITY @ RATING VALUE +
(000'S OMITTED) MOODY'S S&P (000'S OMITTED)
FLORIDA (8.9%)
$ 2,500 Broward Co. G.O., Ser. 2001 A,5.25%, due 1/1/18 Aa1 AA+ $ 2,644
3,000 Fiddlers Creek Comm. Dev. Dist. Number 2 Spec.
Assessment Rev., Ser. 2003 A,6.00%, due 5/1/16 3,084^^
1,750 Miami Beach Hlth. Fac. Au. Hosp. R ef. Rev.
(Mount Sinai Med. Ctr. of Florida Proj.), Ser. 2004,
6.25%, due 11/15/09 Ba1 BB+ 1,842('b')
8,140 Orange Co. Sales Tax Ref. Rev., Ser. 2002 A, (FGIC Insured),
5.13%, due 1/1/18 Aaa AAA 8,592
2,085 Palm Beach Co. Hlth. Fac. Au. Hosp. Ref. Rev. (BRCH Corp.
Oblig. Group), Ser. 2001, 5.00%, due 12/1/12 A 2,153('b')
7,000 Palm Beach Co. Sch. Board Cert. of Participation, Ser. 2001 B,
(AMBAC Insured), 5.38%, due 8/1/17 Aaa AAA 7,491
1,000 Sarasota Co. Util. Sys. Ref. Rev., Ser. 2002 C, (FGIC Insured),
5.25%, due 10/1/20 Aaa AAA 1,059
-------
26,865
-------
GEORGIA (2.6%)
4,575 Henry Co. Wtr. & Swr. Au. Wtr. & Swr. Ref. Rev., Ser. 2002 A,
(MBIA Insured), 5.13%, due 2/1/17 Aaa AAA 4,871
2,710 Newnan Hosp. Au. Rev. Anticipation Certificate
(Newnan Hosp., Inc.Proj.), Ser. 2002, (MBIA Insured),
5.50%, due 1/1/18 Aaa 2,926('b')
-------
7,797
-------
ILLINOIS (10.6%)
5,000 Chicago G.O., Ser. 1995 A-2, (AMBAC Insured), 6.25%,
due 1/1/13 Aaa AAA 5,649
6,120 Chicago G.O., Ser. 2002 A, (AMBAC Insured), 5.38%,
due 1/1/17 Aaa AAA 6,632
1,500 Chicago Metro. Wtr. Reclamation Dist. Cap. Imp. G.O.,
Ser. 2002 C, 5.38%, due 12/1/16 Aaa AA+ 1,615
5,130 Illinois Ed. Fac. Au. Rev. (Field Museum of Natural History),
Ser. 2002, 4.30%, due 11/1/36 A2 A 5,107('b')
5,000 Illinois G.O., First Ser. 2002, (MBIA Insured), 5.25%,
due 10/1/14 Aaa AAA 5,344
3,000 Illinois Hlth. Fac. Au. Rev. (Loyola Univ. Hlth. Sys.), Ser. 1997 A,
(MBIA Insured), 6.00%, due 7/1/14 Aaa AAA 3,359('b')
1,670 Illinois Metro. Pier & Exposition Au. Dedicated St. Tax Ref. Rev.,
Ser. 1998 A, 5.50%, due 6/15/17 Aaa AAA 1,866
2,000 Kane, Cooke, & DuPage Cos. Elgin Sch. Dist. Number U-46 G.O.,
Ser. 1998, (FSA Insured), 5.35%, due 1/1/15 Aaa 2,122
-------
31,694
-------
INDIANA (8.3%)
1,995 Indiana Bond Bank Rev. (St. Revolving Fund Prog.), Ser. 2001 A,
5.38%, due 2/1/17 AAA 2,178
760 Indiana Bond Bank Rev. (St. Revolving Fund Prog.), Ser. 2001 B,
5.25%, due 2/1/18 AAA 818
8,005 Indiana Bond Bank Rev. (Unrefunded Bal. Revolving Fund Prog.),
Ser. 2001 A, 5.38%, due 2/1/17 AAA 8,627
2,800 Indiana Bond Bank Rev. (Unrefunded Bal. Revolving Fund Prog.),
Ser. 2002 B, 5.25%, due 2/1/18 AAA 2,968
1,000 Indiana Muni. Pwr. Agcy. Pwr. Supply Sys. Rev., Ser. 2002 B,
(MBIA Insured), 5.25%, due 1/1/18 Aaa AAA 1,057
2,050 Indiana St. Hlth. Fac. Fin. Au. Rev. (Hlth. Sys. Sisters
of St. Francis), Ser. 2001, 5.35%, due 11/1/15 Aa3 2,140('b')
1,065 Indiana St. Recreational Dev. Comm. Rev., Ser. 2002,
(AMBAC Insured), 5.25%, due 7/1/18 Aaa AAA 1,119
See Notes to Schedule of Investments 13
SCHEDULE OF INVESTMENTS Intermediate Municipal Fund Inc. cont'd
PRINCIPAL AMOUNT SECURITY @ RATING VALUE +
(000'S OMITTED) MOODY'S S&P (000'S OMITTED)
$1,125 Indiana St. Recreational Dev. Comm. Rev., Ser. 2002,
(AMBAC Insured), 5.25%, due 7/1/19 Aaa AAA $ 1,180
2,580 Indianapolis Local Pub. Imp. Rev. (Indianapolis Arpt. Au. Proj.),
Ser. 2003 A, (FSA Insured), 5.63%, due 1/1/17 Aaa AAA 2,745
2,000 Jasper Hosp. Au. Hosp. Fac. Ref. Rev. (Mem. Hosp. & Hlth.
Care Ctr. Proj.), Ser. 2002, 5.50%, due 11/1/17 AA 2,128('b')
-------
24,960
-------
IOWA (2.1%)
3,000 Iowa Tobacco Settlement Au. Tobacco Settlement
Asset-Backed Rev., Ser. 2001 B, 5.30%, due 6/1/25 AAA 3,187
3,000 Iowa Tobacco Settlement Au. Tobbaco Settlement
Asset-Backed Rev., Ser. 2005 C, 5.38%, due 6/1/38 Baa3 BBB 2,994
-------
6,181
-------
LOUISIANA (1.2%)
2,500 Morehouse Parish Ref. PCR (Int'l. Paper Co. Proj.), Ser. 2001 A,
5.25%, due 11/15/13 Baa2 BBB 2,580('b')
1,000 Tobacco Settlement Fin. Tobacco Settlement Asset-Backed Rev.,
Ser. 2001 B, 5.50%, due 5/15/30 Baa3 BBB 1,038
-------
3,618
-------
MAINE (0.6%)
1,725 Maine Muni. Bond Bank Rev., Ser. 1998 C, (FSA Insured),
5.35%, due 11/1/18 Aaa AAA 1,810
-------
MARYLAND (2.3%)
1,000 Maryland St. Hlth. & Higher Ed. Fac. Au. Rev. (Union Hosp. of
Cecil Co.), Ser. 2002, 5.50%, due 7/1/14 A3 1,054('b')
400 Prince George's Co., Unrefunded Balance Cons. Pub. Imp.
G.O., Ser. 2001, (FGIC Insured), 5.25%, due 12/1/16 Aaa AAA 428
5,100 Prince George's Co., Pre-Refunded Cons. Pub. Imp. G.O.,
Ser. 2001, 5.25%, due 12/1/16 P/R 12/1/11 Aaa AAA 5,515
-------
6,997
-------
MASSACHUSETTS (8.7%)
3,000 Massachusetts Port Au. Spec. Fac. Rev. (Delta Air Lines,
Inc. Proj.), Ser. 2001 A, (AMBAC Insured), 5.50%, due 1/1/19 Aaa AAA 3,100('b')
1,850 Massachusetts St. G.O., Ser. 2002 E, (MBIA Insured),
5.38%, due 1/1/18 Aaa AAA 1,993
2,450 Massachusetts St. Hlth. & Ed. Fac. Au. Rev. (Caritas Christi
Oblig. Group), Ser. 1999 A, 5.70%, due 7/1/15 Baa3 BBB 2,542('b')
2,810 Massachusetts St. Hlth. & Ed. Fac. Au. Rev. (Milford-Whitinsville
Reg. Hosp.), Ser. 1998 C, 5.75%, due 7/15/13 Baa3 BBB- 2,891('b')
4,935 Massachusetts St. Hlth. & Ed. Fac. Au. Rev. (New England
Med. Ctr. Hosp.), Ser. 2002 H, (FGIC Insured),
5.38%, due 5/15/16 Aaa AAA 5,279('b')
2,000 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 2,129
5,030 Massachusetts St. Wtr. Poll. Abatement Trust Rev. (MWRA Prog.),
Ser. 2002 A, 5.25%, due 8/1/19 Aaa AAA 5,351
2,775 Massachusetts St. Wtr. Poll. Abatement Trust Unrefunded
Balance Rev. (Pool Prog.), Ser. 2001, 5.25%, due 2/1/16 Aaa AAA 2,951
-------
26,236
-------
MICHIGAN (7.0%)
3,075 Detroit Sch. Dist. Sch. Bldg. & Site Imp. G.O., Ser. 2002 A,
(FGIC Insured), 5.50%, due 5/1/15 Aaa AAA 3,366
1,070 Ingham & Clinton Cos. East Lansing Bldg. Au. Ref. G.O.,
Ser. 1999, 5.25%, due 10/1/16 AA 1,116
14
SCHEDULE OF INVESTMENTS Intermediate Municipal Fund Inc. cont'd
PRINCIPAL AMOUNT SECURITY @ RATING VALUE +
(000'S OMITTED) MOODY'S S&P (000'S OMITTED)
$1,050 Kent Co. Forest Hills Pub. Sch. Unlimited G.O., Ser. 2000,
5.25%, due 5/1/19 Aa2 $ 1,108
1,375 Macomb Co. New Haven Comm. Sch. Bldg. & Site G.O.,
Ser. 2002, 5.25%, due 5/1/17 Aa2 AA 1,483
1,500 Michigan St. Bldg. Au. Rev. (Fac. Prog.), Ser. 2001 II,
5.50%, due 10/15/18 Aa3 AA- 1,622
5,000 Michigan St. Hsg. Dev. Au. Single-Family Mtge. Rev., Ser. 2001 A,
(MBIA Insured), 5.30%, due 12/1/16 Aaa AAA 5,111
3,850 Royal Oak Hosp. Fin. Au. Hosp. Ref. Rev. (William Beaumont
Hosp.), Ser. 1996 I, 6.25%, due 1/1/12 Aa3 AA- 4,246('b')
1,000 Summit Academy North Pub. Sch. Academy Ref. Rev.,
Ser. 2005, 6.00%, due 11/1/15 BB+ 993
2,000 Summit Academy North Pub. Sch. Academy Ref. Rev.,
Ser. 2005, 5.25%, due 11/1/20 BB+ 1,902
-------
20,947
-------
MINNESOTA (1.6%)
2,000 Freeborn Co. Hsg. & Redev. Au. Lease Rev. (Criminal Justice
Ctr. Proj.), Ser. 2002, 5.38%, due 2/1/17 Baa1 2,078
2,540 St. Paul Port Au. Lease Rev. (Office Bldg. at Cedar Street),
Ser. 2002, 5.00%, due 12/1/17 Aa2 AA+ 2,632
-------
4,710
-------
MISSOURI (4.1%)
3,495 Bi State Dev. Agcy. Metro. Dist. Rev. (Metrolink Cross
Co. Extension Proj.), Ser. 2002 B, (FSA Insured), 5.25%,
due 10/1/16 Aaa AAA 3,747
2,000 Boone Co. Hosp. Ref. Rev. (Boone Hosp. Ctr.), Ser. 2002,
5.05%, due 8/1/20 A3 2,042('b')
2,425 Branson Dev. Fin. Board Infrastructure Fac. Board Rev.,
Ser. 2003 A, 5.00%, due 12/1/17 Baa1 BBB+ 2,438
750 Branson Ind. Dev. Au. Ltd. Oblig. Tax Increment Rev. (Branson
Landing-Retail Proj.), Ser. 2005, 5.25%, due 6/1/21 743^^
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 2,168
915 Missouri St. Hsg. Dev. Comm. Multi-Family Hsg. Rev.,
Ser. 2001 II, 5.25%, due 12/1/16 AA 950
280 Missouri St. Hsg. Dev. Comm. Multi-Family Hsg. Rev.,
Ser. 2001 III, 5.05%, due 12/1/15 AA 290
-------
12,378
-------
NEVADA (6.0%)
5,335 Clark Co. Passenger Fac. Charge Ref. Rev. (Las Vegas-McCarran
Int'l. Arpt. Proj.), Ser. 2002 A, (MBIA Insured), 5.25%,
due 7/1/10 Aaa AAA 5,578
4,355 Las Vegas Valley Wtr. Dist. Ref. & Wtr. Imp. G.O., Ser. 2003 A,
(FGIC Insured), 5.25%, due 6/1/16 Aaa AAA 4,638
2,000 Nevada St. Cap. Imp. Ltd. G.O., Ser. 1998 B, 5.13%,
due 4/15/17 Aa1 AA 2,053
5,395 Truckee Meadows Wtr. Au. Wtr. Rev., Ser. 2001 A, (FSA Insured),
5.50%, due 7/1/15 Aaa AAA 5,753
-------
18,022
-------
NEW HAMPSHIRE (1.8%)
3,310 New Hampshire Hlth. Ed. Fac. Au. Rev. (Univ. Sys. of
New Hampshire), Ser. 1992, (AMBAC Insured), 5.38%,
due 7/1/17 Aaa AAA 3,590
1,700 New Hampshire Hlth. Ed. Fac. Au. Rev. (Univ. Sys. of
New Hampshire), Ser. 1992, (AMBAC Insured), 5.38%,
due 7/1/17 Aaa AAA 1,820
-------
5,410
-------
See Notes to Schedule of Investments 15
SCHEDULE OF INVESTMENTS Intermediate Municipal Fund Inc. cont'd
PRINCIPAL AMOUNT RATING VALUE +
(000'S OMITTED) SECURITY @ MOODY'S S&P (000'S OMITTED)
NEW JERSEY (6.0%)
$5,000 New Jersey Bldg. Au. St. Bldg. Ref. Rev., Ser. 2002 B,
(FSA Insured), 5.25%, due 12/15/15 Aaa AAA $ 5,321
1,500 New Jersey Econ. Dev. Au. Cigarette Tax Rev., Ser. 2004,
5.63%, due 6/15/19 Baa2 BBB 1,563
6,900 New Jersey Ed. Fac. Au. Rev. (Stevens Institute of Technology),
Ser. 2002 C,5.25%, due 7/1/17 Baa2 BBB+ 7,175('b')
4,000 New Jersey Hlth. Care Fac. Fin. Au. Rev. (Somerset Med. Ctr.
Issue), Ser. 2003, 5.50%, due 7/1/18 Baa3 4,097('b')
-------
18,156
-------
NEW YORK (6.1%)
1,210 Lyons Comm. Hlth. Initiatives Corp. Fac. Rev., Ser. 2004,
5.50%, due 9/1/14 A2 1,280
3,250 New York City G.O., Ser. 2002 C, 5.50%, due 8/1/15 A1 A+ 3,484
2,580 New York City IDA Civic Fac. Rev. (Lycee Francais de
New York Proj.), Ser. 2002 A, 5.50%, due 6/1/14 A 2,681('b')
1,750 New York City IDA Spec. Fac. Rev. (American Airlines, Inc.
J.F.K. Int'l. Arpt. Proj.), Ser. 2005, 7.50%, due 8/1/16 B- 1,912('b')
2,750 New York City Ind. Dev. Agy. Liberty Rev. (7 World Trade Center,
LLC Proj.), Ser. 2005 A, 6.25%, due 3/1/15 2,897^^
1,000 New York Convention Ctr. Operating Corp. Cert. of Participation
(Yale Bldg. Acquisition Proj.), Ser. 2003, 5.25%, due 6/1/08 1,026^^
3,500 New York St. Dorm. Au. Personal Income Tax Rev., Ser. 2003 A,
5.38%, due 3/15/20 Aa3 AAA 3,810
1,300 New York St. Urban Dev. Corp. Ref. Rev. (Correctional Cap. Fac.),
Ser. 1998, 5.00%, due 1/1/14 A1 AA- 1,350
-------
18,440
-------
NORTH DAKOTA (1.5%)
4,100 Fargo Hlth. Sys. Rev. (Meritcare Obligated Group), Ser. 2002 A,
(AMBAC Insured), 5.63%, due 6/1/17 Aaa AAA 4,410('b')
-------
OHIO (2.6%)
1,000 Coshocton Co. Env. Imp. Ref. Rev. (Smurfit-Stone Container
Enterprises, Inc. Proj.), Ser. 2005, 5.13%, due 8/1/13 CCC+ 960('b')
3,000 Moraine Solid Waste Disp. Rev. (General Motors Corp. Proj.),
Ser. 1994, 6.75%, due 7/1/14 B3 B 2,804('b')
3,760 Ohio Air Quality Dev. Au. Env. Imp. Ref. Rev. (USX Corp. Proj.),
Ser. 1995, 5.00%, due 11/1/15 Baa1 BBB+ 3,949('b')
-------
7,713
-------
PENNSYLVANIA (5.7%)
1,765 Cumberland Co. West Shore Area Au. Hosp. Rev.,
(Holy Spirit Hosp. of the Sisters of Christian Charity Proj.),
Ser. 2001, 6.05%, due 1/1/19 BBB 1,871('b')
1,000 Delaware River Joint Toll Bridge Comm. Sys. Rev., Ser. 2003,
5.25%, due 7/1/18 A2 A- 1,067
2,000 Lehigh Co. Gen. Purp. Au. Rev. (KidsPeace Oblig. Group),
Ser. 1998, 6.00%, due 11/1/23 B2 1,879('b')
5,000 Montgomery Co. Higher Ed. & Hlth. Au. Hosp. Rev.
(Abington Mem. Hosp. Proj.), Ser. 2002 A, 5.00%, due 6/1/19 A 5,077('b')
1,000 Pennsylvania Econ. Dev. Fin. Au. Res. Rec. Ref. Rev.
(Colver Proj.), Ser. 2005 G, 5.13%, due 12/1/15 976^^
2,000 Philadelphia Arpt. Ref. Rev. (Philadelphia Arpt. Sys.),
Ser. 1998 A, (FGIC Insured), 5.38%, due 6/15/14 Aaa AAA 2,084
16
SCHEDULE OF INVESTMENTS Intermediate Municipal Fund Inc. cont'd
PRINCIPAL AMOUNT RATING VALUE +
(000'S OMITTED) SECURITY @ MOODY'S S&P (000'S OMITTED)
$2,000 Sayre Hlth. Care Fac. Au. Rev. (Guthrie Hlth. Proj.), Ser. 2002 A,
5.75%, due 12/1/21 A- $ 2,121('b')
2,000 Westmoreland Co. IDA Gtd. Rev. (National Waste & Energy Corp.,
Valley Landfill Expansion Proj.), Ser. 1993, 5.10%, due 5/1/18 BBB 2,049('b')
-------
17,124
-------
SOUTH CAROLINA (5.5%)
1,100 Charleston Co. Sch. Dist. G.O., Ser. 2001, (FSA Insured),
5.00%, due 2/1/18 Aaa AAA 1,155
2,140 Mt. Pleasant Town Waterworks & Swr. Sys. Ref. & Imp. Rev.,
Ser. 2002, (FGIC Insured), 5.25%, due 12/1/17 Aaa AAA 2,288
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+ 2,510('b')
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+ 2,135('b')
4,665 South Carolina St. Pub. Svc. Au. Rev., Ser. 2002 B,
(FSA Insured), 5.38%, due 1/1/18 Aaa AAA 4,965
3,500 Union Co. IDR (Federal Paper Board Co., Inc. Proj.), Ser. 1989,
4.55%, due 11/1/09 Baa3 BBB 3,483('b')
-------
16,536
-------
TENNESSEE (2.1%)
3,015 Knox Co. Hlth., Ed. & Hsg. Fac. Board Hosp. Ref. & Imp. Rev.,
Ser. 2002 A, (FSA Insured), 5.50%, due 1/1/18 Aaa AAA 3,205('b')
3,085 Memphis-Shelby Co. Arpt. Au. Spec. Fac. Ref. Rev.
(Federal Express Corp.), Ser. 2002, 5.05%, due 9/1/12 Baa2 BBB 3,222('b')
-------
6,427
-------
TEXAS (23.9%)
4,145 Anson Ed. Fac. Corp. Std. Hsg. Rev. (Univ. of Texas at
Dallas-Waterview Park Proj.), Ser. 2002, 5.00%, due 1/1/23 A 4,171('b')
1,000 Austin Convention Enterprises, Inc. Convention Ctr.
Hotel First Tier Rev., Ser. 2001 A, 6.38%, due 1/1/16 Baa3 BBB- 1,044
3,300 Brazos River Au. Ref. PCR (TXU Energy Co. LLC Proj.),
Ser. 2003 A, 6.75%, due 4/1/38 Putable 4/1/13 Baa2 BBB- 3,697('b')
1,000 Brazos River Au. Ref. PCR (TXU Energy Co. LLC. Proj.),
Ser. 2003 D, 5.40%, due 10/1/29 Putable 10/1/14 BBB- 1,043('b')
1,000 Brazos River Au. Ref. Rev. (Reliant Energy, Inc. Proj.),
Ser. 1999 B, 7.75%, due 12/1/18 BBB- 1,085('b')
4,000 Brazos 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- 4,031('b')
3,600 Corpus Christi Tax & Muni. Hotel Occupancy Tax G.O., Ser. 2002,
(FSA Insured), 5.50%, due 9/1/17 Aaa AAA 3,885
2,100 Dallas-Fort Worth Int'l. Arpt. Fac. Imp.Corp.Rev.,Ser.2004 A-1,
6.15%, due 1/1/16 Ba2 2,111('b')
1,935 Dallas-Fort Worth Int'l. Arpt. Imp. Rev., Ser. 2004 B,
(FSA Insured), 5.50%, due 11/1/18 Aaa AAA 2,049
1,000 Denton, Tarrant, & Wise Cos. Northwest Ind. Sch. Dist. Unlimited
Sch. Bldg. & Ref. G.O., Ser. 2002, 5.50%, due 8/15/17 Aaa 1,081
1,750 Ector Co. Hosp. Dist. Hosp. Rev., Ser. 2002 A, 5.63%,
due 4/15/16 A3 BBB+ 1,813
1,745 Ector Co. Hosp. Dist. Hosp. Rev., Ser. 2002 A, 5.63%,
due 4/15/17 A3 BBB+ 1,804
7,000 Harris Co. Toll Road Sr. Lien Ref. Rev., Ser. 2002, (FSA Insured),
5.38%, due 8/15/16 Aaa AAA 7,514
3,235 Houston Arpt. Sys. Sub. Lien. Ref. Rev., Ser. 2001 A,
(FGIC Insured), 5.50%, due 7/1/16 Aaa AAA 3,413
4,955 Houston Pub. Imp. Ref. G.O., Ser. 2002, (MBIA Insured),
5.25%, due 3/1/17 Aaa AAA 5,242
See Notes to Schedule of Investments 17
SCHEDULE OF INVESTMENTS Intermediate Municipal Fund Inc. cont'd
PRINCIPAL AMOUNT SECURITY @ RATING VALUE +
(000'S OMITTED) MOODY'S S&P (000'S OMITTED)
$2,000 Lubbock Hlth. Fac. Dev. Corp. Rev. (St. Joseph Hlth. Sys.),
Ser. 1998, 5.25%, due 7/1/16 Aa3 AA- $ 2,075('b')
4,780 North Central Hlth. Fac. Dev. Corp. Hosp. Ref. Rev. (Baylor Hlth.
Care Sys. Proj.), Ser. 1998, 5.10%, due 5/15/13 Aa3 AA- 4,978('b')
6,795 San Antonio Ind. Sch. Dist. Unlimited Tax G.O., Ser. 2001 B,
5.38%, due 8/15/17 Aaa AAA 7,229
20 San Antonio Pre-Refunded Cert. of Obligation G.O., P/R 2/1/12,
Ser. 2002, 5.00%, due 2/1/14 Aa2 AA+ 21
1,240 San Antonio Unrefunded Balance Cert. of Obligation G.O.,
Ser. 2002, 5.00%, due 2/1/14 Aa2 AA+ 1,294
1,910 Southmost Reg. Wtr. Au. Wtr. Supply Contract Rev. (Desalination
Plant Proj.), Ser.2002, (MBIA Insured), 5.50%, due 9/1/19 Aaa 2,053
4,200 Tarrant Reg. Wtr. Dist. Wtr. Ref. & Imp. Rev., Ser. 2002,
(FSA Insured), 5.38%, due 3/1/16 Aaa AAA 4,506
465 Texas Std. Hsg. Corp. Std. Hsg. Rev. (Midwestern St. Univ. Proj.),
Ser. 2002, 5.50%, due 9/1/12 Baa3 479
1,000 Trinity River Au. Imp. & Ref. Rev. (Tarrant Co. Wtr. Proj.),
Ser. 2003, (MBIA Insured), 5.50%, due 2/1/16 Aaa AAA 1,092
1,085 Tyler Hlth. Fac. Dev. Corp. Hosp. Rev. (Mother Frances
Hosp. Reg. Hlth. Care Ctr. Proj.), Ser. 2003, 5.25%, due 7/1/13 Baa1 1,102
2,950 Univ. of Texas Board of Regents Fin. Sys. Rev., Ser. 1999 B,
5.38%, due 8/15/18 Aaa AAA 3,102
-------
71,914
-------
VIRGIN ISLANDS (0.9%)
1,000 Virgin Islands Pub. Fin. Au. Refinery Fac. Rev.
(HOVENSA Refinery), Ser. 2003, 6.13%, due 7/1/22 Baa3 BBB 1,069
1,500 Virgin Islands Pub. Fin. Au. Refinery Fac. Rev.
(HOVENSA Refinery), Ser. 2004, 5.88%, due 7/1/22 Baa3 BBB 1,579('b')
-------
2,648
-------
VIRGINIA (0.7%)
1,000 Hopewell Ind. Dev. Au. Env. Imp. Ref. Rev. (Smurfit-Stone
Container Enterprise, Inc. Proj.), Ser. 2005, 5.25%, due 6/1/15 CCC+ 947('b')
1,000 Virginia Beach Dev. Au. Residential Care Fac. Mtge. Ref. Rev.
(Westminster-Caterbury of Hampton Roads, Inc.), Ser. 2005,
5.00%, due 11/1/22 991('b')^^
-------
1,938
-------
WASHINGTON (12.9%)
3,000 CDP-King Co. III Lease Rev. (King Street Ctr. Proj.), Ser. 1997,
(MBIA Insured), 5.13%, due 6/1/17 Aaa AAA 3,071
1,000 Clark Co. Vancouver Sch. Dist. Number 37 G.O., Ser. 1998,
5.13%, due 12/1/12 Aa3 1,061
8,800 Energy Northwest Elec. Ref. Rev. (Proj. No. 3), Ser. 2001 A,
(FSA Insured), 5.50%, due 7/1/17 Aaa AAA 9,464
5,000 King & Snohomish Cos. Northshore Sch. Dist. Number 417 G.O.,
Ser. 2002, (FSA Insured), 5.50%, due 12/1/17 Aaa AAA 5,449
4,260 King Co. Pub. Trans. Sales Tax Ref. G.O., Ser. 2002,
(FSA Insured), 5.38%, due 12/1/14 Aaa AAA 4,583
6,250 Port of Seattle Sub. Lien Rev., Ser. 2002 B, (FGIC Insured),
5.50%, due 9/1/16 Aaa AAA 6,604
1,625 Skagit Co. Pub. Hosp. Dist. Ref. Rev., Ser. 2003,
6.00%, due 12/1/18 Baa3 1,733
2,500 Tacoma Wtr. Sys. Rev., Ser. 2001, (FGIC Insured),
5.13%, due 12/1/19 Aaa AAA 2,606
18
SCHEDULE OF INVESTMENTS Intermediate Municipal Fund Inc. cont'd
PRINCIPAL AMOUNT SECURITY @ RATING VALUE +
(000'S OMITTED) MOODY'S S&P (000'S OMITTED)
$3,125 Washington St. Hlth. Care Fac. Au. Rev. (Yakima Valley
Mem. Hosp. Assoc.), Ser. 2002, 5.00%, due 12/1/17 A $ 3,162('b')
1,000 Washington St. Var. Purp. G.O., Ser. 1999 A, 4.75%, due 7/1/17 Aa1 AA 1,009
---------
38,742
---------
WISCONSIN (5.2%)
1,540 Badger Tobacco Asset Securitization Corp. Tobacco Settlement
Asset-Backed Rev., Ser. 2002, 6.13%, due 6/1/27 Baa3 BBB 1,625
1,900 Univ. of Wisconsin Hosp. & Clinics Au. Hosp. Rev., Ser. 2002 B,
5.50%, due 4/1/12 A1 A+ 2,006
1,370 Wisconsin Hlth. & Ed. Fac. Au. Rev. (Aurora Med. Group,
Inc. Proj.), Ser. 1996, (FSA Insured), 6.00%, due 11/15/11 Aaa AAA 1,506('b')
7,205 Wisconsin St. G.O., Ser. 2002 C, 5.25%, due 5/1/17
P/R 5/1/12 Aaa AAA 7,689
2,780 Wisconsin St. Hlth. & Ed. Fac. Au. Rev. (Kenosha Hosp. & Med.
Ctr., Inc. Proj.), Ser. 1999, 5.50%, due 5/15/15 A 2,901('b')
---------
15,727
---------
OTHER (0.7%)
2,000 MuniMae Subordinated Cumulative Perpetual Preferred Shares,
4.70%, due 6/30/49 Putable 9/30/09 Baa2 1,984(n)
---------
TOTAL INVESTMENTS (157.5%) (COST $465,834) 473,372##
Cash, receivables and other assets, less liabilities (2.2%) 6,666
Liquidation Value of Auction Market Preferred Shares
[(59.7%)] (179,400)
---------
TOTAL NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS (100.0%) $ 300,638
---------
See Notes to Schedule of Investments 19
SCHEDULE OF INVESTMENTS New York Intermediate Municipal Fund Inc.
PRINCIPAL AMOUNT SECURITY @ RATING VALUE +
(000'S OMITTED) MOODY'S S&P (000'S OMITTED)
ARIZONA (0.7%)
$ 500 Verrado Comm. Fac. Dist. Number 1 G.O., Ser. 2003,
6.15%, due 7/15/17 $ 529^^
------
CALIFORNIA (1.3%)
1,000 Santa Rosa Rancheria Tachi Yokut Tribe Enterprise Rev.,
Ser. 2003, 6.13%, due 3/1/13 1,004^^
------
FLORIDA (0.7%)
500 Miami Beach Hlth. Fac. Au. Hosp. Ref. Rev. (Mount Sinai
Med. Ctr. of Florida Proj.), Ser. 2004, 6.25%, due 11/15/09 Ba1 BB+ 526('b')
------
GEORGIA (1.1%)
1,000 De Kalb Co. Dev. Au. Ref. PCR (General Motors Corp. Proj.),
Ser. 2002, 6.00%, due 3/15/21 B3 B 841('b')
------
GUAM (0.6%)
500 Guam Govt. Waterworks Au. Wtr. & Wastewater Sys. Rev.,
Ser. 2005, 5.50%, due 7/1/16 Ba2 521
------
LOUISIANA (2.6%)
1,000 Morehouse Parish Ref. PCR (Int'l. Paper Co. Proj.), Ser. 2001 A,
5.25%, due 11/15/13 Baa2 BBB 1,032('b')
1,000 Tobacco Settlement Fin. Corp. Tobacco Settlement
Asset-Backed Rev., Ser. 2001 B, 5.50%, due 5/15/30 Baa3 BBB 1,038('b')
------
2,070
------
NEW YORK (141.7%)
3,000 Albany IDA Civic Fac. Rev. (Charitable Leadership Foundation Ctr.
for Med. Science Proj.), Ser. 2002 A, 6.00%, due 7/1/19 Baa3 3,185
500 Cattaraugus Co. Ind. Dev. Agcy. (St. Bonaventure Univ. Proj.),
Ser. 2006 A, 5.00%, due 5/1/23 BBB- 500('b')(O)
1,000 Dutchess Co. IDA Civic Fac. Ref. Rev. (Marist College Proj.),
Ser. 2003 A, 5.15%, due 7/1/17 Baa1 1,034('b')
2,000 Dutchess Co. IDA Ind. Dev. Rev. (IBM Proj.), Ser. 1999,
5.45%, due 12/1/29 A1 A+ 2,096('b')
500 Essex Co. Ind. Dev. Agcy. Solid Waste Disp. Rev. (Int'l. Paper),
Ser. 2005 A, 5.20%, due 12/1/23 Baa3 BBB 499('b')
400 Long Island Pwr. Au. Elec. Sys. Rev., Ser. 1998 A, (FSA Insured),
5.13%, due 12/1/16 Aaa AAA 415
2,000 Long Island Pwr. Au. Elec. Sys. Gen. Rev., Ser. 1998 A,
5.50%, due 12/1/13 Aaa AAA 2,199
1,385 Lyons Comm. Hlth. Initiatives Corp. Fac. Rev., Ser. 2004,
5.50%, due 9/1/14 A2 1,465
305 Metro. Trans. Au. Dedicated Tax Fund Rev., Ser. 2001 A,
(FGIC Insured), 5.25%, due 11/15/14 Aaa AAA 325
2,000 Metro. Trans. Au. Ref. Rev., Ser. 2002 A, (AMBAC Insured),
5.50%, due 11/15/15 AAA 2,175
1,000 Monroe Co. Newpower Corp. Pwr. Fac. Rev., Ser. 2003,
5.10%, due 1/1/16 BBB 1,020
1,000 Monroe Co. Pub. Imp. Ref. G.O., Ser. 1996, 6.00%,
due 3/1/13 Baa1 BBB+ 1,093
980 Monroe Co. IDA Std. Hsg. Rev. (Collegiate Hsg.
Foundation - Rochester Institute of Technology Proj.),
Ser. 1999 A, 5.25%, due 4/1/19 Baa3 983('b')
1,000 New York City G.O., Ser. 1998 J, 5.00%, due 8/1/11 A1 A+ 1,030
1,000 New York City G.O., Ser. 2002 A, 5.75%, due 8/1/16 A1 A+ 1,086
750 New York City G.O., Ser. 2002 C, 5.50%, due 8/1/15 A2 A 804
20
SCHEDULE OF INVESTMENTS New York Intermediate Municipal Fund Inc. cont'd
PRINCIPAL AMOUNT SECURITY @ RATING VALUE +
(000'S OMITTED) MOODY'S S&P (000'S OMITTED)
$1,410 New York City Hlth. & Hosp. Corp. Rev., Ser. 2002 A,
(FSA Insured), 5.50%, due 2/15/13 Aaa AAA $1,518
4,000 New York City Hsg. Dev. Corp. Multi-Family Hsg. Rev.,
Ser. 2002 E-2, 5.05%, due 11/1/23 Aa2 AA 4,055
1,030 New York City IDA Civic Fac. Rev. (Lycee Francais de
New York Proj.), Ser. 2002 A, 5.50%, due 6/1/17 A 1,059('b')
1,000 New York City IDA Civic Fac. Rev. (Lycee Francaise de
New York Proj.), Ser. 2002 A, 5.50%, due 6/1/15 A 1,034('b')
2,920 New York City IDA Civic Fac. Rev. (Packer Collegiate
Institute Proj.), Ser. 2002, (AMBAC Insured), 5.00%,
due 6/1/22 Aaa AAA 3,014('b')
1,000 New York City IDA Ind. Dev. Rev. (Brooklyn Navy Yard
Cogeneration Partners, L.P. Proj.), Ser. 1997, 6.20%,
due 10/1/22 Ba1 BBB- 1,050('b')
500 New York City IDA Ind. Dev. Rev. (Harlem Auto Mall Proj.),
Ser. 2004, 5.13%, due 12/30/23 B3 B 366('b')
750 New York City IDA Spec. Fac. Rev. (American Airlines, Inc.
J.F.K. Int'l. Arpt. Proj.), Ser. 2005, 7.50%, due 8/1/16 B- 819('b')
2,000 New York City IDA Spec. Fac. Rev. (Term. One Group
Assoc. Proj.), Ser. 2005, 5.50%, due 1/1/19 A3 BBB+ 2,106('b')
750 New York City Ind. Dev. Agcy. Liberty Rev. (7 World Trade Center,
LLC Proj.), Ser. 2005 A, 6.25%, due 3/1/15 790^^
960 New York City Muni. Wtr. Fin. Au. Wtr. & Swr. Sys. Rev.,
Ser. 1992 A, (AMBAC Insured), 5.88%, due 6/15/13 Aaa AAA 1,077
4,000 New York City Muni. Wtr. Fin. Au. Wtr. & Swr. Sys. Rev.,
Ser. 2002 D, 5.25%, due 6/15/15 Aa2 AA 4,253
3,000 New York City Trans. Fin. Au. Ref. Rev., Ser. 2002 B,
5.25%, due 2/1/29 Aa1 AAA 3,176
2,025 New York City Trans. Fin. Au. Ref. Rev., Ser. 2002 C,
(AMBAC Insured), 5.25%, due 8/1/17 AAA 2,155
800 New York Convention Ctr. Operating Corp. Cert. of Participation
(Yale Bldg. Acquisition Proj.), Ser. 2003, 5.25%, due 6/1/08 Aa1 821
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 2,190
2,000 New York St. Dorm. Au. Insured Rev. (Long Island Jewish
Med. Ctr.), Ser. 1998, (MBIA Insured), 5.00%, due 7/1/18 Aaa AAA 2,046('b')
1,675 New York St. Dorm. Au. Insured Rev. (Long Island Univ.),
Ser. 2003 A, 5.25%, due 9/1/15 Baa3 AA 1,735('b')
1,600 New York St. Dorm. Au. Insured Rev. (The Culinary Institute
of America), Ser. 1999, (MBIA Insured), 5.38%, due 7/1/15 Aaa AAA 1,693('b')
1,125 New York St. Dorm. Au. Rev. (City Univ. Sys. Proj.), Ser. 1995 A,
5.63%, due 7/1/16 A2 AA- 1,242
1,010 New York St. Dorm. Au. Rev. (Columbia Univ. Proj.), Ser. 2001 A,
5.25%, due 7/1/16 Aaa AAA 1,092('b')
2,985 New York St. Dorm. Au. Rev. (Lenox Hill Hosp. Oblig. Group Proj.),
Ser. 2001, 5.75%, due 7/1/14 Ba2 3,050('b')(OO)
2,000 New York St. Dorm. Au. Rev. (Lenox Hill Hosp. Oblig. Group Proj.),
Ser. 2001, 5.75%, due 7/1/16 Ba2 2,032('b')
2,000 New York St. Dorm. Au. Rev. (Mount Sinai NYU Hlth.),
Ser. 2000 C, 5.50%, due 7/1/26 Ba1 BB 2,029('b')
1,980 New York St. Dorm. Au. Rev. (New York Med. College Proj.),
Ser. 1998, (MBIA Insured), 5.00%, due 7/1/21 Aaa AAA 2,035('b')
525 New York St. Dorm. Au. Rev. (New York Methodist Hosp.),
Ser. 2004, 5.25%, due 7/1/18 A3 550
See Notes to Schedule of Investments 21
SCHEDULE OF INVESTMENTS New York Intermediate Municipal Fund Inc. cont'd
PRINCIPAL AMOUNT SECURITY @ RATING VALUE +
(000'S OMITTED) MOODY'S S&P (000'S OMITTED)
$3,000 New York St. Dorm. Au. Ref. Rev. (North Gen. Hosp. Proj.), Ser. 2003,
5.75%, due 2/15/17 AA- $ 3,266('b')
500 New York St. Dorm. Au. Rev. (North Shore-Long Island Jewish
Oblig. Group), Ser. 2003, 5.00%, due 5/1/18 A3 513('b')
2,855 New York St. Dorm. Au. Rev. (Rivington House Hlth. Care Fac.),
Ser. 2002, 5.25%, due 11/1/15 Aa1 3,012('b')
2,410 New York St. Dorm. Au. Rev. (Rochester Institute of Technology
Proj.), Ser. 2002 A, (AMBAC Insured), 5.25%, due 7/1/19 Aaa 2,547('b')
3,000 New York St. Dorm. Au. Rev. (SS Joachim & Anne Residence Proj.),
Ser. 2002, 4.60%, due 7/1/16 Aa3 2,976
250 New York St. Dorm. Au. Rev. Secured Hosp. Ref. Rev.
(Brookdale Hosp. Med. Ctr.), Ser. 1998 J, 5.20%, due 2/15/16 A2 AA- 258('b')
5,500 New York St. Dorm. Au. Rev. St. Personal Income Tax Rev.,
Ser. 2003 A, 5.38%, due 3/15/17 Aa3 AAA 5,988
5,000 New York St. Energy Res. & Dev. Au. Fac. Rev.
(Consolidated Edison Co. of New York, Inc. Proj.), Ser. 2001 A,
4.70%, due 6/1/36 A1 A+ 5,003('b')
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 1,010
2,000 New York St. Mtge. Agcy. Homeowner Mtge. Rev.,
Ser. 1997-67, 5.70%, due 10/1/17 Aa1 2,050
2,000 New York St. Pwr. Au. Rev., Ser. 2002 A, 5.25%, due 11/15/16 Aa2 AA- 2,133
500 New York St. Urban Dev. Corp. Correctional & Youth Fac. Svc. Rev.,
Ser. 2002 C, 4.00%, due 1/1/20 A2 AA- 503
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- 1,404
2,000 Niagara Co. IDA Civic Fac. Rev. (Niagara Univ. Proj.), Ser. 2001 A,
5.50%, due 11/1/16 AA 2,119('b')
2,500 Niagara Co. IDA Solid Waste Disp. Fac. Ref. Rev.
(American Ref. -Fuel Co. of Niagara), Ser. 2001 C,
5.63%, due 11/15/24 Baa3 BB+ 2,621('b')
3,000 Port Authority of NY & NJ Rev., Ser. 2002, (AMBAC Insured),
5.50%, due 12/15/12 Aaa AAA 3,193
3,000 Triborough Bridge & Tunnel Au. Gen. Purp. Ref. Rev., Ser. 2002 B,
5.25%, due 11/15/18 Aa2 AA- 3,191
1,535 Ulster Co. Res. Rec. Agcy. Solid Waste Sys. Ref. Rev., Ser. 2002,
(AMBAC Insured), 5.25%, due 3/1/16 Aaa AAA 1,633
500 United Nations Dev. Corp. Sr. Lien. Ref. Rev., Ser. 2004 A,
5.25%, due 7/1/17 A3 511
1,000 Westchester Co. IDA Continuing Care Retirement Comm. Rev.
(Kendal on Hudson Proj.), Ser. 2003 B, 5.70%, due 1/1/34 1,021('b')^^
1,000 Yonkers IDA Civic Fac. Rev. (Comm. Dev. Properties-Yonkers, Inc.),
Ser. 2001 A, 6.25%, due 2/1/16 Baa3 BBB- 1,088('b')
--------
112,936
--------
OHIO (0.6%)
500 Coshocton Co. Env. Imp. Ref. Rev. (Smurfit-Stone Container
Enterprises, Inc. Proj.), Ser. 2005, 5.13%, due 8/1/13 CCC+ 480('b')
--------
PENNSYLVANIA (2.1%)
1,590 Cumberland Co. West Shore Area Au. Hosp. Rev., (Holy Spirit
Hosp.of the Sisters of Christian Charity Proj.), Ser. 2001,
5.90%, due 1/1/17 BBB 1,679('b')
--------
22
SCHEDULE OF INVESTMENTS New York Intermediate Municipal Fund Inc. cont'd
PRINCIPAL AMOUNT SECURITY @ RATING VALUE +
(000'S OMITTED) MOODY'S S&P (000'S OMITTED)
PUERTO RICO (2.5%)
$ 910 Puerto Rico Children's Trust Tobacco Settlement Asset-Backed
Rev., Ser. 2002, 5.38%, due 5/15/33 Baa3 BBB $ 931
1,060 Puerto Rico Ind., Tourist Ed., Med., & Env. Ctrl. Fac. Rev.,
(Polytechnic Univ. of Puerto Rico Proj.), Ser. 2002 A,
(ACA Insured), 5.25%, due 8/1/16 A 1,087('b')
--------
2,018
--------
TEXAS (3.9%)
800 Brazos River Au. Ref. PCR (TXU Energy Co. LLC Proj.),
Ser. 2003 A, 6.75%, due 4/1/38, Putable 4/1/13 Baa2 BBB- 896('b')
750 Brazos River Au. Ref. Rev. (Reliant Energy, Inc. Proj.),
Ser. 1999 B, 7.75%, due 12/1/18 BBB- 814('b')
1,000 Brazos River Harbor Navigation Dist. of Brazoria Co. Env. Fac. Rev.
(Dow Chemical Co. Proj.), Ser. 2002 A-4,
5.20%, due 5/15/33, Putable 5/15/08 A3 A- 1,020('b')
400 Dallas-Fort Worth Int'l. Arpt. Fac. Imp. Corp. Rev., Ser. 2004 A-1,
6.15%, due 1/1/16 Ba2 402('b')
--------
3,132
--------
VIRGIN ISLANDS (1.3%)
250 Virgin Islands Pub. Fin. Au. Refinery Fac. Rev.
(HOVENSA Refinery), Ser. 2003, 6.13%, due 7/1/22 Baa3 BBB 267
750 Virgin Islands Pub. Fin. Au. Rev. (Virgin Islands Matching
Fund Loan Notes), Ser. 1998 E, 6.00%, due 10/1/22 BBB 787
--------
1,054
--------
TOTAL INVESTMENTS (159.1%) (COST $125,743) 126,790##
Cash, receivables and other assets, less liabilities (1.4%) 1,163
Liquidation Value of Auction Market Preferred Shares [(60.5%)] (48,250)
--------
TOTAL NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS (100.0%) $ 79,703
--------
See Notes to Schedule of Investments 23
NOTES TO SCHEDULE OF INVESTMENTS
+ Investments in securities by Neuberger Berman California Intermediate
Municipal Fund Inc. ("California"), Neuberger Berman Intermediate Municipal
Fund Inc. ("Intermediate"), and Neuberger Berman New York Intermediate
Municipal Fund Inc. ("New York") (individually a "Fund", and collectively,
the "Funds") are valued daily by obtaining bid price quotations from
independent pricing services on all securities available in each service's
data base. For all other securities, bid prices are obtained from principal
market makers in those securities or, if quotations are not readily
available, by methods each Fund's Board of Directors has approved on the
belief that they reflect fair value. Numerous factors may be considered
when determining the fair value of a security, including available analyst,
media or other reports, trading in futures or ADRs and whether the issuer
of the security being fair valued has other securities outstanding.
Short-term debt securities with less than 60 days until maturity may be
valued at cost which, when combined with interest earned, approximates
market value.
## At April 30, 2006, selected Fund information on a U.S. federal income tax
basis was as follows:
GROSS GROSS NET
(000'S OMITTED) UNREALIZED UNREALIZED UNREALIZED
NEUBERGER BERMAN COST APPRECIATION DEPRECIATION APPRECIATION
CALIFORNIA $153,475 $2,678 $ 424 $2,254
INTERMEDIATE 465,834 8,967 1,429 7,538
NEW YORK 125,743 1,843 796 1,047
@ 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 79%, 68%, and 58% 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.
('b') Security is guaranteed by the corporate or non-profit obligor.
(n) Restricted security subject to restrictions on resale under federal
securities laws. These securities may be resold in transactions exempt from
registration, normally to qualified institutional buyers under Rule 144A
and have been deemed by the investment manager to be liquid. At April 30,
2006, these securities amounted to $4,482,000 or 1.5% of net assets
applicable to common shareholders for Intermediate.
^^ Not rated by a NRSRO.
(O) All or a portion of this security was purchased on a when-issued basis. At
April 30, 2006, these securities amounted to $500,000 or .63% of net assets
for New York.
(00) All or a portion of this security is segregated as collateral for
when-issued purchase commitments.
See Notes to Financial Statements 24
This page has been left blank intentionally
25
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 $155,729 $473,372 $126,790
-----------------------------------------------------------------------------------------------------------------------
Cash 6 19 --
-----------------------------------------------------------------------------------------------------------------------
Interest receivable 2,528 8,151 2,101
-----------------------------------------------------------------------------------------------------------------------
Prepaid expenses and other assets 18 41 12
=======================================================================================================================
TOTAL ASSETS 158,281 481,583 128,903
=======================================================================================================================
LIABILITIES
Distributions payable--preferred shares 42 91 27
-----------------------------------------------------------------------------------------------------------------------
Due to custodian -- -- 3
-----------------------------------------------------------------------------------------------------------------------
Distributions payable--common shares 403 1,276 344
-----------------------------------------------------------------------------------------------------------------------
Payable for securities purchased -- -- 500
-----------------------------------------------------------------------------------------------------------------------
Payable to administrator (Note B) 39 119 32
-----------------------------------------------------------------------------------------------------------------------
Accrued expenses and other payables 50 59 44
=======================================================================================================================
TOTAL LIABILITIES 534 1,545 950
=======================================================================================================================
AUCTION MARKET PREFERRED SHARES SERIES A & B AT LIQUIDATION VALUE
3,000, 8,000 and 3,000 shares authorized and 2,360, 7,176 and 1,930
shares issued and outstanding for California, Intermediate and New
York, respectively; $.0001 par value; $25,000 liquidation value per
share (Note A) 59,000 179,400 48,250
=======================================================================================================================
NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS AT VALUE $ 98,747 $300,638 $ 79,703
=======================================================================================================================
NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS CONSIST OF:
Paid-in Capital--Common Shares $ 96,347 $293,853 $ 79,063
-----------------------------------------------------------------------------------------------------------------------
Undistributed net investment income (loss) 484 417 202
-----------------------------------------------------------------------------------------------------------------------
Accumulated net realized gains (losses) on investments (338) (1,170) (609)
-----------------------------------------------------------------------------------------------------------------------
Net unrealized appreciation (depreciation) in value of investments 2,254 7,538 1,047
=======================================================================================================================
NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS AT VALUE $ 98,747 $300,638 $ 79,703
=======================================================================================================================
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 $ 14.54 $ 14.52 $ 14.30
=======================================================================================================================
*COST OF INVESTMENTS: $153,475 $465,834 $125,743
=======================================================================================================================
See Notes to Financial Statements 26
STATEMENTS OF OPERATIONS
CALIFORNIA INTERMEDIATE NEW YORK
NEUBERGER BERMAN INTERMEDIATE MUNICIPAL CLOSED-END FUNDS INTERMEDIATE MUNICIPAL INTERMEDIATE
(000'S OMITTED) MUNICIPAL FUND FUND MUNICIPAL FUND
INVESTMENT INCOME
INCOME: (NOTE A)
Interest income $3,645 $11,217 $3,064
========================================================================================================================
EXPENSES:
Investment management fee (Notes A & B) 197 601 160
------------------------------------------------------------------------------------------------------------------------
Administration fee (Note B) 237 721 192
------------------------------------------------------------------------------------------------------------------------
Stock transfer agent fees 17 17 17
------------------------------------------------------------------------------------------------------------------------
Auction agent fees (Note B) 74 226 61
------------------------------------------------------------------------------------------------------------------------
Audit fees 20 20 20
------------------------------------------------------------------------------------------------------------------------
Basic maintenance expense (Note B) 12 12 12
------------------------------------------------------------------------------------------------------------------------
Custodian fees (Note B) 42 74 36
------------------------------------------------------------------------------------------------------------------------
Insurance expense 4 13 4
------------------------------------------------------------------------------------------------------------------------
Legal fees 13 30 12
------------------------------------------------------------------------------------------------------------------------
Shareholder reports 8 22 8
------------------------------------------------------------------------------------------------------------------------
Stock exchange listing fees 1 4 1
------------------------------------------------------------------------------------------------------------------------
Directors' fees and expenses 14 14 14
------------------------------------------------------------------------------------------------------------------------
Miscellaneous 15 13 14
========================================================================================================================
Total expenses 654 1,767 551
Investment management fee waived (Note B) (197) (601) (160)
Expenses reduced by custodian fee expense offset arrangement (Note B) (1) (1) (1)
========================================================================================================================
Total net expenses 456 1,165 390
========================================================================================================================
Net investment income 3,189 10,052 2,674
========================================================================================================================
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS (NOTE A)
Net realized gain (loss) on:
Sales of investment securities of unaffiliated issuers 10 (26) (13)
---------------------------------------------------------------------------------------------------------------------
Change in net unrealized appreciation (depreciation) in value of:
Unaffiliated investment securities (817) (2,648) (796)
=====================================================================================================================
Net gain (loss) on investments (807) (2,674) (809)
========================================================================================================================
DISTRIBUTIONS TO PREFERRED SHAREHOLDERS FROM:
Net investment income (870) (2,758) (712)
=====================================================================================================================
NET INCREASE (DECREASE) IN NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS
RESULTING FROM OPERATIONS $1,512 $ 4,620 $1,153
========================================================================================================================
See Notes to Financial Statements 27
STATEMENTS OF CHANGES IN NET ASSETS
CALIFORNIA INTERMEDIATE MUNICIPAL FUND
--------------------------------------
SIX MONTHS
ENDED YEAR
APRIL 30, ENDED
NEUBERGER BERMAN INTERMEDIATE MUNICIPAL CLOSED-END FUNDS 2006 OCTOBER 31,
(000'S OMITTED) (UNAUDITED) 2005
INCREASE (DECREASE) IN NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS:
FROM OPERATIONS:
Net investment income (loss) $ 3,189 $ 6,201
----------------------------------------------------------------------------------------------------------------
Net realized gain (loss) on investments 10 (4)
----------------------------------------------------------------------------------------------------------------
Change in net unrealized appreciation (depreciation) of investments (817) (2,787)
----------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO PREFERRED SHAREHOLDERS FROM (NOTE A):
Net investment income (870) (929)
================================================================================================================
Net increase (decrease) in net assets applicable to common shareholders
resulting from operations 1,512 2,481
================================================================================================================
DISTRIBUTIONS TO COMMON SHAREHOLDERS FROM (NOTE A):
Net investment income (2,462) (5,094)
================================================================================================================
NET INCREASE (DECREASE) IN NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS (950) (2,613)
NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS:
Beginning of period 99,697 102,310
================================================================================================================
End of period $98,747 $ 99,697
================================================================================================================
Undistributed net investment income (loss) at end of period $ 484 $ 627
================================================================================================================
See Notes to Financial Statements 28
INTERMEDIATE MUNICIPAL FUND NEW YORK INTERMEDIATE MUNICIPAL FUND
--------------------------- ------------------------------------
SIX MONTHS SIX MONTHS
ENDED YEAR ENDED YEAR
APRIL 30, ENDED APRIL 30, ENDED
NEUBERGER BERMAN INTERMEDIATE MUNICIPAL CLOSED-END FUNDS 2006 OCTOBER 31, 2006 OCTOBER 31,
(000'S OMITTED) (UNAUDITED) 2005 (UNAUDITED) 2005
INCREASE (DECREASE) IN NET ASSETS APPLICABLE TO COMMON
SHAREHOLDERS:
FROM OPERATIONS:
Net investment income (loss) $ 10,052 $ 19,700 $ 2,674 $ 5,208
---------------------------------------------------------------------------------------------------------------------------
Net realized gain (loss) on investments (26) (59) (13) (19)
---------------------------------------------------------------------------------------------------------------------------
Change in net unrealized appreciation (depreciation) of
investments (2,648) (8,953) (796) (2,496)
---------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO PREFERRED SHAREHOLDERS FROM (NOTE A):
Net investment income (2,758) (3,174) (712) (763)
===========================================================================================================================
Net increase (decrease) in net assets applicable to common
shareholders resulting from operations 4,620 7,514 1,153 1,930
===========================================================================================================================
DISTRIBUTIONS TO COMMON SHAREHOLDERS FROM (NOTE A):
Net investment income (7,846) (16,461) (2,102) (4,348)
===========================================================================================================================
NET INCREASE (DECREASE) IN NET ASSETS APPLICABLE TO COMMON
SHAREHOLDERS (3,226) (8,947) (949) (2,418)
NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS:
Beginning of period 303,864 312,811 80,652 83,070
===========================================================================================================================
End of period $300,638 $303,864 $79,703 $80,652
===========================================================================================================================
Undistributed net investment income (loss) at end of period $ 417 $ 969 $ 202 $ 342
===========================================================================================================================
29
NOTES TO FINANCIAL STATEMENTS Intermediate Municipal Closed-End Funds
NOTE A--SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:
1 GENERAL: Neuberger Berman California Intermediate Municipal Fund
Inc. ("California"), Neuberger Berman Intermediate Municipal Fund
Inc. ("Intermediate"), and Neuberger Berman New York Intermediate Municipal
Fund Inc. ("New York") (individually a "Fund" and, collectively, the
"Funds") were organized as Maryland corporations on July 29,2002.
California and New York are registered as non-diversified, closed-end
management investment companies and Intermediate is registered as a
diversified, closed-end management investment company under the Investment
Company Act of 1940, as amended. Each Fund's Board of Directors may
classify or re-classify any unissued shares of capital stock into one or
more classes of preferred stock without the approval of shareholders.
The assets of each Fund belong only to that Fund, and the liabilities of
each Fund are borne solely by that Fund and no other.
The preparation of financial statements in accordance with U.S. generally
accepted accounting principles requires Neuberger Berman Management
Inc. ("Management") to make estimates and assumptions at the date of the
financial statements. Actual results could differ from those estimates.
2 PORTFOLIO VALUATION: Investment securities are valued as indicated in the
notes following the Funds' Schedule of Investments.
3 SECURITIES TRANSACTIONS AND INVESTMENT INCOME: Securities transactions are
recorded on 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.
30
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 on a monthly basis. Distributions from
net realized capital gains, if any, are normally distributed in December.
Distributions to common shareholders are recorded on the ex-date.
Distributions to preferred shareholders are accrued and determined as
described in Note A-7.
Subsequent to April 30, 2006, each Fund declared two monthly distributions
to common shareholders payable June 15, 2006 and July 17, 2006, to
shareholders of record on May 25, 2006 and June 26, 2006, respectively,
with ex-dates of May 23, 2006 and June 22, 2006, respectively, as follows:
DISTRIBUTION PER SHARE
CALIFORNIA $0.05937
INTERMEDIATE 0.06161
NEW YORK 0.06175
31
6 EXPENSE ALLOCATION: Certain expenses are applicable to multiple funds.
Expenses directly attributable to a Fund are charged to that Fund. Expenses
borne by the complex of related investment companies, which includes
open-end and closed-end investment companies for which Management serves as
investment manager, that are not directly attributed to a Fund are
allocated among the Funds and the other investment companies in the complex
or series thereof on the basis of relative net assets, except where a more
appropriate allocation of expenses to each investment company in the
complex or series thereof can otherwise be made fairly.
7 REDEEMABLE PREFERRED SHARES: On October 21, 2002, the Funds re-classified
unissued shares of capital stock into several series of Auction Market
Preferred Shares ("AMPS"),as follows:
SERIES A SHARES SERIES B SHARES
CALIFORNIA 1,500 1,500
INTERMEDIATE 4,000 4,000
NEW YORK 1,500 1,500
On December 13, 2002, the Funds issued several series of AMPS, as follows:
SERIES A SHARES SERIES B SHARES
CALIFORNIA 1,180 1,180
INTERMEDIATE 3,588 3,588
NEW YORK 965 965
All shares of each series of AMPS have a liquidation preference of $25,000
per share plus any accumulated unpaid distributions, whether or not earned
or declared by the Fund, but excluding interest thereon ("Liquidation
Value"). Distributions to AMPS shareholders, which are cumulative, are
accrued daily. It is the policy of each Fund to pay distributions every 7
days for each Fund's AMPS Series A and every 28 days for each Fund's AMPS
Series B, unless in a special rate period.
In the absence of a special rate period, distribution rates are reset every
7 days for each Fund's AMPS Series A, based on the results of an auction.
For the six months ended April 30, 2006, distribution rates ranged from:
DISTRIBUTION RATE
CALIFORNIA 2.55% - 3.50%
INTERMEDIATE 2.41% - 3.75%
NEW YORK 2.45% - 3.60%
In the absence of a special rate period, distribution rates are reset every
28 days for each Fund's AMPS Series B, based on the results of an auction.
For the six months ended April 30, 2006, distribution rates ranged from:
DISTRIBUTION RATE
CALIFORNIA 2.65% - 3.60%
INTERMEDIATE 2.75% - 3.70%
NEW YORK 2.54% - 3.75%
32
The Funds declared distributions to AMPS shareholders for the period May 1,
2006 to May 31, 2006, for each series of the AMPS as follows:
SERIES A SERIES B
SHARES SHARES
CALIFORNIA $ 83,723 $ 87,463
INTERMEDIATE 267,244 276,963
NEW YORK 67,533 73,546
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.
9 INDEMNIFICATIONS: Like many other companies, the Funds' organizational
documents provide that their officers and directors are indemnified against
certain liabilities arising out of the performance of their duties to the
Funds. In addition, both in some of their principal service contracts and
in the normal course of their business, the Funds enter into contracts that
provide indemnifications to other parties for certain types of losses or
liabilities. Each Fund's maximum exposure under these arrangements is
unknown as this could involve future claims against each Fund.
NOTE B--MANAGEMENT FEES, ADMINISTRATION FEES, AND OTHER TRANSACTIONS WITH
AFFILIATES:
Each Fund retains Management as its investment manager under a Management
Agreement. For such investment management services, each Fund pays
Management a fee at the annual rate of 0.25% of its average daily Managed
Assets. Managed Assets equal the total assets of the Fund, less liabilities
other than the aggregate indebtedness entered into for purposes of
leverage. For purposes of calculating Managed Assets, the Liquidation Value
of any AMPS outstanding is not considered a liability.
33
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
2006 - 2007 0.25
2008 0.20
2009 0.15
2010 0.10
2011 0.05
Management has not agreed to waive any portion of its fees beyond October
31, 2011.
For the six months ended April 30, 2006, such waived fees amounted to
$197,499,$600,525, and $159,891 for California, Intermediate, and New York,
respectively.
Each Fund retains Management as its administrator under an Administration
Agreement. Each Fund pays Management an administration fee at the annual
rate of 0.30% of its average daily Managed Assets under this agreement.
Additionally, Management retains State Street Bank and Trust Company
("State Street") as its sub-administrator under a Sub-Administration
Agreement. Management pays State Street a fee for all services received
under the agreement.
Management and Neuberger Berman, LLC ("Neuberger"), a member firm of the
New York Stock Exchange and sub-adviser to each Fund, are wholly-owned
subsidiaries of Lehman Brothers Holdings Inc., a publicly-owned holding
company. Neuberger is retained by Management to furnish it with investment
recommendations and research information without added cost to each Fund.
Several individuals who are officers and/or Directors of each Fund are also
employees of Neuberger and/or Management.
Each Fund has an expense offset arrangement in connection with its
custodian contract. For the six months ended April 30, 2006, the impact of
this arrangement was a reduction of expenses of $642, $954, and $1,182 for
California, Intermediate, and New York, respectively.
In connection with the settlement of each AMPS auction, each Fund pays,
through the auction agent, a service fee to each participating
broker-dealer based upon the aggregate liquidation preference of the AMPS
held by the broker-dealer's customers. For any auction preceding a rate
period of less than one year, the service fee is paid at the annual rate of
1/4 of 1%; for any auction preceding a rate period of one year or more, the
service fee is paid at a rate agreed to by each Fund and the broker-dealer.
In order to satisfy rating agencies' requirements, each Fund is required to
provide each rating agency a report on a monthly basis verifying that each
Fund is maintaining eligible assets having a discounted value equal to or
greater than the Preferred Shares Basic Maintenance Amount, which is a
minimum level set by each rating agency as one of the conditions to
maintain the AAA/Aaa rating on the AMPS. "Discounted value" refers to the
fact that the rating agencies require each Fund, in performing this
calculation, to discount portfolio securities below their face value, at
rates determined by the rating agencies. Each Fund pays a fee to State
Street for the preparation of this report which is reflected in the
Statements of Operations under the caption "Basic maintenance expense."
34
NOTE C--SECURITIES TRANSACTIONS:
For the six months ended April 30, 2006, there were purchase and sale
transactions (excluding short-term securities) as follows:
(000'S OMITTED) PURCHASES SALES
CALIFORNIA $1,211,942 $1,286,514
INTERMEDIATE 7,056,103 5,627,164
NEW YORK 4,346,488 3,008,249
NOTE D--CAPITAL:
At April 30, 2006, 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
There were no transactions in common shares for the six months ended April
30, 2006 and the year ended October 31, 2005.
NOTE E--UNAUDITED FINANCIAL INFORMATION:
The financial information included in this interim report is taken from the
records of each Fund without audit by an independent registered public
accounting firm. Annual reports contain audited financial statements.
35
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.
SIX MONTHS PERIOD FROM
ENDED SEPTEMBER 27, 2002^
APRIL 30, YEAR ENDED OCTOBER 31, TO OCTOBER 31,
----------- --------------------------- -------------------
2006 2005 2004 2003 2002
(UNAUDITED)
COMMON SHARE NET ASSET VALUE, BEGINNING OF PERIOD $ 14.68 $ 15.06 $ 14.36 $ 14.31 $14.32
------- ------- ------- ------- ------
INCOME FROM INVESTMENT OPERATIONS APPLICABLE TO
COMMON SHAREHOLDERS:
NET INVESTMENT INCOME (LOSS)(cc) .47 .91 .91 .85 .02
NET GAINS OR LOSSES ON SECURITIES
(BOTH REALIZED AND UNREALIZED) (.12) (.40) .67 .14 --
COMMON SHARE EQUIVALENT OF DISTRIBUTIONS TO
PREFERRED SHAREHOLDERS FROM:
NET INVESTMENT INCOME(cc) (.13) (.14) (.13) (.08) --
------- ------- ------- ------- ------
TOTAL FROM INVESTMENT OPERATIONS APPLICABLE TO
COMMON SHAREHOLDERS .22 .37 1.45 .91 .02
------- ------- ------- ------- ------
LESS DISTRIBUTIONS TO COMMON SHAREHOLDERS FROM:
NET INVESTMENT INCOME (.36) (.75) (.75) (.75) --
------- ------- ------- ------- ------
LESS CAPITAL CHARGES FROM:
ISSUANCE OF COMMON SHARES -- -- -- -- (.03)
ISSUANCE OF PREFERRED SHARES -- -- -- (.11) --
------- ------- ------- ------- ------
TOTAL CAPITAL CHARGES -- -- -- (.11) (.03)
------- ------- ------- ------- ------
COMMON SHARE NET ASSET VALUE, END OF PERIOD $ 14.54 $ 14.68 $ 15.06 $ 14.36 $14.31
------- ------- ------- ------- ------
COMMON SHARE MARKET VALUE, END OF PERIOD $ 13.59 $ 13.75 $ 13.47 $ 13.00 $15.00
------- ------- ------- ------- ------
TOTAL RETURN, COMMON SHARE NET ASSET VALUE+ +1.68%** +2.96% +10.97% +6.02% -0.10%**
TOTAL RETURN, COMMON SHARE MARKET VALUE+ +1.46%** +7.82% +9.63% -8.44% +0.00%**
RATIOS/SUPPLEMENTAL DATA+++
NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS,
END OF PERIOD (IN MILLIONS) $ 98.7 $ 99.7 $ 102.3 $ 97.5 $ 94.5
PREFERRED SHARES, AT LIQUIDATION VALUE ($25,000
PER SHARE LIQUIDATION PREFERENCE) (IN MILLIONS) $ 59.0 $ 59.0 $ 59.0 $ 59.0 $ --
RATIO OF GROSS EXPENSES TO AVERAGE NET ASSETS
APPLICABLE TO COMMON SHAREHOLDERS# .92%* .96% .96% .88% .84%*
RATIO OF NET EXPENSES TO AVERAGE NET ASSETS
APPLICABLE TO COMMON SHAREHOLDERS++ .92%* .96% .96% .88% .83%*
RATIO OF NET INVESTMENT INCOME (LOSS) EXCLUDING
PREFERRED SHARES DISTRIBUTIONS TO AVERAGE
NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS 6.41%* 6.08% 6.24% 5.88% 1.10%*
RATIO OF PREFERRED SHARES DISTRIBUTIONS TO AVERAGE
NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS 1.75%* .91% .86% .56% --%
RATIO OF NET INVESTMENT INCOME (LOSS) INCLUDING
PREFERRED SHARES DISTRIBUTIONS TO AVERAGE
NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS 4.66%* 5.17% 5.38% 5.32% 1.10%*
PORTFOLIO TURNOVER RATE 1%** 3% 3% 9% 0%**
ASSET COVERAGE PER PREFERRED SHARE, END OF PERIOD@ $66,860 $67,273 $68,383 $66,332 $ --
See Notes to Financial Highlights 36
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.
SIX MONTHS PERIOD FROM
ENDED APRIL SEPTEMBER 27, 2002^
30, YEAR ENDED OCTOBER 31, TO OCTOBER 31,
----------- --------------------------- -------------------
2006 2005 2004 2003 2002
(UNAUDITED)
COMMON SHARE NET ASSET VALUE, BEGINNING OF PERIOD $ 14.68 $ 15.11 $ 14.44 $ 14.30 $14.32
------- ------- ------- ------- ------
INCOME FROM INVESTMENT OPERATIONS APPLICABLE TO
COMMON SHAREHOLDERS:
NET INVESTMENT INCOME (LOSS)(cc) .49 .95 .94 .88 .01
NET GAINS OR LOSSES ON SECURITIES
(BOTH REALIZED AND UNREALIZED) (.14) (.43) .65 .25 --
COMMON SHARE EQUIVALENT OF DISTRIBUTIONS TO
PREFERRED SHAREHOLDERS FROM:
NET INVESTMENT INCOME(cc) (.13) (.15) (.12) (.09) --
------- ------- ------- ------- ------
TOTAL FROM INVESTMENT OPERATIONS APPLICABLE TO
COMMON SHAREHOLDERS .22 .37 1.47 1.04 .01
------- ------- ------- ------- ------
LESS DISTRIBUTIONS TO COMMON SHAREHOLDERS FROM:
NET INVESTMENT INCOME (.38) (.80) (.80) (.80) --
------- ------- ------- ------- ------
LESS CAPITAL CHARGES FROM:
ISSUANCE OF COMMON SHARES -- -- -- -- (.03)
ISSUANCE OF PREFERRED SHARES -- -- -- (.10) --
------- ------- ------- ------- ------
TOTAL CAPITAL CHARGES -- -- -- (.10) (.03)
------- ------- ------- ------- ------
COMMON SHARE NET ASSET VALUE, END OF PERIOD $ 14.52 $ 14.68 $ 15.11 $ 14.44 $14.30
------- ------- ------- ------- ------
COMMON SHARE MARKET VALUE, END OF PERIOD $ 13.22 $ 13.62 $ 13.70 $ 13.33 $15.00
------- ------- ------- ------- ------
TOTAL RETURN, COMMON SHARE NET ASSET VALUE+ +1.71%** +2.93% +10.91% +6.88% -0.17%**
TOTAL RETURN, COMMON SHARE MARKET VALUE+ -0.19%** +5.32% +8.94% -5.94% +0.00%**
RATIOS/SUPPLEMENTAL DATA+++
NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS,
END OF PERIOD (IN MILLIONS) $ 300.6 $ 303.9 $ 312.8 $ 299.1 $293.3
PREFERRED SHARES, AT LIQUIDATION VALUE ($25,000
PER SHARE LIQUIDATION PREFERENCE) (IN MILLIONS) $ 179.4 $ 179.4 $ 179.4 $ 179.4 $ --
RATIO OF GROSS EXPENSES TO AVERAGE NET ASSETS
APPLICABLE TO COMMON SHAREHOLDERS# .77%* .80% .82% .74% .51%*
RATIO OF NET EXPENSES TO AVERAGE NET ASSETS
APPLICABLE TO COMMON SHAREHOLDERS++ .77%* .80% .82% .74% .51%*
RATIO OF NET INVESTMENT INCOME (LOSS) EXCLUDING
PREFERRED SHARES DISTRIBUTIONS TO AVERAGE
NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS 6.65%* 6.33% 6.40% 6.08% 1.62%*
RATIO OF PREFERRED SHARES DISTRIBUTIONS TO AVERAGE
NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS 1.82%* 1.02% .85% .59% --%
RATIO OF NET INVESTMENT INCOME (LOSS) INCLUDING
PREFERRED SHARES DISTRIBUTIONS TO AVERAGE NET
ASSETS APPLICABLE TO COMMON SHAREHOLDERS 4.83%* 5.31% 5.55% 5.49% 1.62%*
PORTFOLIO TURNOVER RATE 1%** 2% 3% 10% 0%**
ASSET COVERAGE PER PREFERRED SHARE, END OF PERIOD@ $66,908 $67,368 $68,622 $66,694 $ --
See Notes to Financial Highlights 37
FINANCIAL HIGHLIGHTS New York Intermediate Municipal Fund
The following table includes selected data for a share outstanding throughout
each period and other performance information derived from the Financial
Statements.
PERIOD FROM
SIX MONTHS ENDED SEPTEMBER 27, 2002^
APRIL 30, YEAR ENDED OCTOBER 31, TO OCTOBER 31,
---------------- --------------------------- -------------------
2006 2005 2004 2003 2002
(UNAUDITED)
COMMON SHARE NET ASSET VALUE, BEGINNING OF PERIOD $ 14.47 $ 14.90 $ 14.40 $ 14.32 $14.32
------- ------- ------- ------- ------
INCOME FROM INVESTMENT OPERATIONS APPLICABLE TO
COMMON SHAREHOLDERS:
NET INVESTMENT INCOME (LOSS)(cc) .48 .93 .93 .86 .03
NET GAINS OR LOSSES ON SECURITIES
(BOTH REALIZED AND UNREALIZED) (.14) (.44) .48 .19 --
COMMON SHARE EQUIVALENT OF DISTRIBUTIONS TO
PREFERRED SHAREHOLDERS FROM:
NET INVESTMENT INCOME(cc) (.13) (.14) (.13) (.08) --
------- ------- ------- ------- ------
TOTAL FROM INVESTMENT OPERATIONS APPLICABLE TO
COMMON SHAREHOLDERS .21 .35 1.28 .97 .03
------- ------- ------- ------- ------
LESS DISTRIBUTIONS TO COMMON SHAREHOLDERS FROM:
NET INVESTMENT INCOME (.38) (.78) (.78) (.78) --
------- ------- ------- ------- ------
LESS CAPITAL CHARGES FROM:
ISSUANCE OF COMMON SHARES -- -- -- -- (.03)
ISSUANCE OF PREFERRED SHARES -- -- -- (.11) --
------- ------- ------- ------- ------
TOTAL CAPITAL CHARGES -- -- -- (.11) (.03)
------- ------- ------- ------- ------
COMMON SHARE NET ASSET VALUE, END OF PERIOD $ 14.30 $ 14.47 $ 14.90 $ 14.40 $14.32
------- ------- ------- ------- ------
COMMON SHARE MARKET VALUE, END OF PERIOD $ 13.92 $ 13.54 $ 13.32 $ 13.27 $15.00
------- ------- ------- ------- ------
TOTAL RETURN, COMMON SHARE NET ASSET VALUE+ +1.54%** +2.87% +9.67% +6.36% -0.03%**
TOTAL RETURN, COMMON SHARE MARKET VALUE+ +5.63%** +7.68% +6.39% -6.43% +0.00%**
RATIOS/SUPPLEMENTAL DATA++
NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS,
END OF PERIOD (IN MILLIONS) $ 79.7 $ 80.7 $ 83.1 $ 80.3 $ 76.7
PREFERRED SHARES, AT LIQUIDATION VALUE ($25,000
PER SHARE LIQUIDATION PREFERENCE) (IN MILLIONS) $ 48.3 $ 48.3 $ 48.3 $ 48.3 $ --
RATIO OF GROSS EXPENSES TO AVERAGE NET ASSETS
APPLICABLE TO COMMON SHAREHOLDERS# .97%* 1.02% 1.00% .92% .94%*
RATIO OF NET EXPENSES TO AVERAGE NET ASSETS
APPLICABLE TO COMMON SHAREHOLDERS++ .97%* 1.01% .99% .92% .93%*
RATIO OF NET INVESTMENT INCOME (LOSS) EXCLUDING
PREFERRED SHARES DISTRIBUTIONS TO AVERAGE
NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS 6.68%* 6.30% 6.37% 6.02% 1.22%*
RATIO OF PREFERRED SHARES DISTRIBUTIONS TO AVERAGE
NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS 1.78%* .92% .86% .57% --%
RATIO OF NET INVESTMENT INCOME (LOSS) INCLUDING
PREFERRED SHARES DISTRIBUTIONS TO AVERAGE
NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS 4.90%* 5.38% 5.51% 5.45% 1.22%*
PORTFOLIO TURNOVER RATE 2%** 2% 5% 11% 0%**
ASSET COVERAGE PER PREFERRED SHARE, END OF PERIOD@ $66,311 $66,813 $68,073 $66,617 $ --
See Notes to Financial Highlights 38
NOTES TO FINANCIAL HIGHLIGHTS Intermediate Municipal Closed-End Funds
+ Total return based on per share net asset value reflects the effects of
changes in net asset value on the performance of each Fund during each
fiscal period. Total return based on per share market value assumes the
purchase of common shares at the market price on the first day and sales of
common shares at the market price on the last day of the period indicated.
Dividends and distributions, if any, are assumed to be reinvested at prices
obtained under each Fund's distribution reinvestment plan. Results repre-
sent past performance and do not guarantee future results. Current returns
may be lower or higher than the performance data quoted. Investment returns
may fluctuate and shares when sold may be worth more or less than original
cost. For each Fund, total return would have been lower if Management had
not waived the investment management fee.
# The Fund is required to calculate an expense ratio without taking into
consideration any expense reductions related to expense offset
arrangements.
++ After waiver of investment management fee by Management. Had Management not
undertaken such action, the annualized ratios of net expenses to average
daily net assets applicable to common shareholders would have been:
SIX MONTHS ENDED PERIOD FROM
APRIL 30, YEAR ENDED OCTOBER 31, SEPTEMBER 27 TO
2006 2005 2004 2003 OCTOBER 31, 2002
CALIFORNIA 1.31% 1.36% 1.35% 1.26% 1.08%
INTERMEDIATE 1.17% 1.20% 1.22% 1.13% .76%
NEW YORK 1.37% 1.41% 1.39% 1.31% 1.18%
^ The date investment operations commenced.
* Annualized.
** Not annualized.
@ Calculated by subtracting the Fund's total liabilities (excluding
accumulated unpaid distributions on AMPS) from the Fund's total assets and
dividing by the number of AMPS outstanding.
+++ Expense ratios do not include the effect of distribution payments to
holders of AMPS. Income ratios include income earned on assets
attributable to AMPS outstanding.
(cc) Calculated based on the average number of shares outstanding during each
fiscal period.
39
DISTRIBUTION REINVESTMENT PLAN
The Bank of New York ("Plan Agent") will act as Plan Agent for shareholders who
have not elected in writing to receive dividends and distributions in cash (each
a "Participant"), will open an account for each Participant under the
Distribution Reinvestment Plan ("Plan") in the same name as their then current
Shares are registered, and will put the Plan into effect for each Participant as
of the first record date for a dividend or capital gains distribution.
Whenever the Fund declares a dividend or distribution with respect to the common
stock of the Fund ("Shares"), each Participant will receive such dividends and
distributions in additional Shares, including fractional Shares acquired by the
Plan Agent and credited to each Participant's account. If on the payment date
for a cash dividend or distribution, the net asset value is equal to or less
than the market price per Share plus estimated brokerage commissions, the Plan
Agent shall automatically receive such Shares, including fractions, for each
Participant's account. Except in the circumstances described in the next
paragraph, the number of additional Shares to be credited to each Participant's
account shall be determined by dividing the dollar amount of the dividend or
distribution payable on their Shares by the greater of the net asset value per
Share determined as of the date of purchase or 95% of the then current market
price per Share on the payment date.
Should the net asset value per Share exceed the market price per Share plus
estimated brokerage commissions on the payment date for a cash dividend or
distribution, the Plan Agent or a broker-dealer selected by the Plan Agent shall
endeavor, for a purchase period lasting until the last business day before the
next date on which the Shares trade on an "ex-dividend" basis, but in no event,
except as provided below, more than 30 days after the payment date, to apply the
amount of such dividend or distribution on each Participant's Shares (less their
PRO RATA share of brokerage commissions incurred with respect to the Plan
Agent's open-market purchases in connection with the reinvestment of such
dividend or distribution) to purchase Shares on the open market for each
Participant's account. No such purchases may be made more than 30 days after the
payment date for such dividend or distribution except where temporary
curtailment or suspension of purchase is necessary to comply with applicable
provisions of federal securities laws. If, at the close of business on any day
during the purchase period the net asset value per Share equals or is less than
the market price per Share plus estimated brokerage commissions, the Plan Agent
will not make any further open-market purchases in connection with the
reinvestment of such dividend or distribution. If the Plan Agent is unable to
invest the full dividend or distribution amount through open-market purchases
during the purchase period, the Plan Agent shall request that, with respect to
the uninvested portion of such dividend or distribution amount, the Fund issue
new Shares at the close of business on the earlier of the last day of the
purchase period or the first day during the purchase period on which the net
asset value per Share equals or is less than the market price per Share, plus
estimated brokerage commissions, such Shares to be issued in accordance with the
terms specified in the third paragraph hereof. These newly issued Shares will be
valued at the then-current market price per Share at the time such Shares are to
be issued.
For purposes of making the reinvestment purchase comparison under the Plan, (a)
the market price of the Shares on a particular date shall be the last sales
price on the New York Stock Exchange (or if the Shares are not listed on the New
York Stock Exchange, such other exchange on which the Shares are principally
traded) on that date, or, if there is no sale on such Exchange (or if not so
listed, in the over-the-counter market) on that date, then the mean between the
closing bid and asked quotations for such Shares on such Exchange on such date
and (b) the net asset value per Share on a particular date shall be the net
asset value per Share most recently calculated by or on behalf of the Fund. All
dividends, distributions and other payments (whether made in cash or Shares)
shall be made net of any applicable withholding tax.
Open-market purchases provided for above may be made on any securities exchange
where the Fund's Shares are traded, in the over-the-counter market or in
negotiated transactions and may be on such terms as to price, delivery and
otherwise as the Plan Agent shall determine. Each Participant's uninvested funds
held by the Plan Agent will not bear interest, and it is understood that, in any
event, the Plan Agent shall have no liability in connection with any inability
to purchase Shares within 30 days after the initial date of such purchase as
herein provided, or with the timing of any purchases effected. The Plan Agent
shall have no responsibility as to the value of the Shares acquired for each
Participant's account. For the purpose of cash investments, the Plan Agent may
commingle each Participant's funds with those of other shareholders of the Fund
for whom the Plan Agent similarly acts as agent, and the average price
(including brokerage commissions) of all Shares purchased by the Plan Agent as
Plan Agent shall be the price per Share allocable to each Participant in
connection therewith.
40
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.
41
DIRECTORY
INVESTMENT MANAGER AND ADMINISTRATOR
Neuberger Berman Management Inc.
605 Third Avenue, 2nd Floor
New York, NY 10158-0180
877.461.1899 or 212.476.8800
SUB-ADVISER
Neuberger Berman, LLC
605 Third Avenue
New York, NY 10158-3698
CUSTODIAN
State Street Bank and Trust Company
225 Franklin Street
Boston, MA 02110
STOCK TRANSFER AGENT
The Bank of New York
101 Barclay Street, 11-E
New York, NY 10286
LEGAL COUNSEL
Kirkpatrick & Lockhart Nicholson Graham LLP
1601 K Street, NW
Washington, DC 20006
INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
Ernst & Young LLP
200 Clarendon Street
Boston, MA 02116
42
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).
CHANGE IN PORTFOLIO MANAGER
Thomas J. Brophy and Lori Canell have co-managed each Fund's assets since their
inception and have assumed sole responsibility for management of each Fund. Mr.
Brophy and Ms. Canell are Vice Presidents of Neuberger Berman Management Inc.
and Managing Directors of Neuberger Berman, LLC. From 1998 to 2000, Mr. Brophy
was a portfolio manager and credit analyst for Neuberger Berman, LLC. From 1997
to 1998, he was a portfolio manager at another investment firm. Ms. Canell has
been a municipal bond portfolio manager at Neuberger Berman since 1995.
43
REPORT OF VOTES OF SHAREHOLDERS
An annual meeting of shareholders of Neuberger Berman California Intermediate
Municipal Fund Inc. ("California"), Neuberger Berman Intermediate Municipal Fund
Inc. ("Intermediate") and Neuberger Berman New York Intermediate Municipal Fund
Inc. ("New York") was held on April 6, 2006. Shareholders of each Fund voted on
the following matter: (1) To elect five Class I Directors to serve until the
annual meeting of shareholders in 2009, or until their successors are elected
and qualified. Class II and III Directors continue to hold office until the
annual meeting in 2007 and 2008, respectively.
Proposal 1 - To elect five Class I Directors to serve until the annual meeting
of shareholders in 2009.
CALIFORNIA
COMMON AND PREFERRED SHARES
VOTES BROKER
VOTES FOR WITHHELD ABSTENTIONS NON-VOTES
Faith Colish 6,562,989.000 89,297.000 -- --
C. Anne Harvey 6,578,726.000 73,560.000 -- --
Cornelius T. Ryan 6,564,037.000 88,249.000 -- --
Peter E. Sundman 6,577,461.000 74,825.000 -- --
Peter P. Trapp 6,578,061.000 74,225.000 -- --
INTERMEDIATE
COMMON AND PREFERRED SHARES
VOTES BROKER
VOTES FOR WITHHELD ABSTENTIONS NON-VOTES
Faith Colish 19,895,827.000 204,741.000 -- --
C. Anne Harvey 19,894,817.000 205,751.000 -- --
Cornelius T. Ryan 19,895,006.000 205,562.000 -- --
Peter E. Sundman 19,898,306.000 202,262.000 -- --
Peter P. Trapp 19,898,239.000 202,329.000 -- --
NEW YORK
COMMON AND PREFERRED SHARES
VOTES BROKER
VOTES FOR WITHHELD ABSTENTIONS NON-VOTES
Faith Colish 5,399,231.000 56,883.000 -- --
C. Anne Harvey 5,402,119.000 53,995.000 -- --
Cornelius T. Ryan 5,400,131.000 55,983.000 -- --
Peter E. Sundman 5,409,831.000 46,283.000 -- --
Peter P. Trapp 5,404,831.000 51,283.000 -- --
44
Statistics and projections in this report are derived from sources deemed to be
reliable but cannot be regarded as a representation of future results of the
Funds. This report is prepared for the general information of shareholders and
is not an offer of shares of the Funds.
NEUBERGER | BERMAN
A LEHMAN BROTHERS COMPANY
NEUBERGER BERMAN MANAGEMENT INC.
605 Third Avenue, 2nd Floor
New York, NY 10158-0180
INTERNAL SALES & SERVICES
877.461.1899
WWW.NB.COM
[GRAPHIC] DO123 06/06
ITEM 2. CODE OF ETHICS
The Board of Directors ("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"). For the period covered by this Form N-CSR, there were no waivers
from the Code of Ethics granted to the Registrant's principal executive officer,
principal financial officer, principal accounting officer or controller, or
persons performing similar functions.
A copy of the Code of Ethics 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
Only required in the annual report.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS
Only required in the annual report.
ITEM 6. SCHEDULE OF INVESTMENTS
The complete schedule of investments for the Fund is disclosed in the
Registrant's semi-annual report, which is included as Item 1 of this Form N-CSR.
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES
Only required in the annual report.
ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Only required in the annual report.
ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT
COMPANY AND AFFILIATED PURCHASERS
No reportable purchases for the period covered by this report.
ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
There were no changes to the procedures by which shareholders may recommend
nominees to the Board.
ITEM 11. CONTROLS AND PROCEDURES
(a) Based on an evaluation of the disclosure controls and procedures (as
defined in rule 30a-3(c) under the Investment Company Act of 1940, as
amended (the "Act")) as of a date within 90 days of the filing date of
this document, the Chief Executive Officer and Treasurer and Principal
Financial and Accounting Officer of the Registrant have concluded that
such disclosure controls and procedures are effectively designed to
ensure that information required to be disclosed by the Registrant in
the report it files or submits on Form N-CSR is accumulated and
communicated to the Registrant's management to allow timely decisions
regarding required disclosure.
(b) There were no significant changes in the Registrant's internal controls
over financial reporting (as defined in rule 30a-3(d) under the Act)
that occurred during the Registrant's second fiscal quarter of the
period covered by this report that have materially affected, or are
reasonably likely to materially affect, the Registrant's internal
control over financial reporting.
ITEM 12. EXHIBITS
(a)(1) A copy of the Code of Ethics is 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
filed herewith.
(a)(3) Not applicable.
(b) The certifications required by Rule 30a-2(b) of the Act and Section
906 of the Sarbanes-Oxley Act are filed herewith.
The certifications provided pursuant to 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: July 10, 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: July 10, 2006
By: /s/ John M. McGovern
----------------------
John M. McGovern
Treasurer and Principal Financial
and Accounting Officer
Date: July 10, 2006