As filed with the Securities and Exchange Commission on July 8, 2005
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
1800 Massachusetts Avenue, N.W. 2nd Floor
Washington, DC 20036
(Names and addresses of agents for service)
Date of fiscal year end: October 31, 2005
Date of reporting period: April 30, 2005
Form N-CSR is to be used by management investment companies to file reports with
the Commission not later than 10 days after the transmission to stockholders of
any report that is required to be transmitted to stockholders under Rule 30e-1
under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may
use the information provided on Form N-CSR in its regulatory, disclosure review,
inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-CSR,
and the Commission will make this information public. A registrant is not
required to respond to the collection of information contained in Form N-CSR
unless the Form displays a currently valid Office of Management and Budget
("OMB") control number. Please direct comments concerning the accuracy of the
information collection burden estimate and any suggestions for reducing the
burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW,
Washington, DC 20549-0609. The OMB has reviewed this collection of information
under the clearance requirements of 44 U.S.C. ss. 3507.
ITEM 1. REPORTS TO SHAREHOLDERS
[NEUBERGER BERMAN LOGO]
A LEHMAN BROTHERS COMPANY
SEMI-ANNUAL REPORT
APRIL 30, 2005
NEUBERGER BERMAN
INTERMEDIATE
MUNICIPAL
CLOSED-END FUNDS
CALIFORNIA INTERMEDIATE MUNICIPAL FUND INC.
INTERMEDIATE MUNICIPAL FUND INC.
NEW YORK INTERMEDIATE MUNICIPAL FUND INC.
NEUBERGER BERMAN APRIL 30, 2005 (UNAUDITED)
CONTENTS
THE FUNDS
CHAIRMAN'S LETTER 1
PORTFOLIO COMMENTARY/
PERFORMANCE HIGHLIGHTS
California Intermediate Municipal Fund Inc. 2
Intermediate Municipal Fund Inc. 3
New York Intermediate Municipal Fund Inc. 3
SCHEDULE OF INVESTMENTS
California Intermediate Municipal Fund Inc. 7
Intermediate Municipal Fund Inc. 12
New York Intermediate Municipal Fund Inc. 19
FINANCIAL STATEMENTS 24
FINANCIAL HIGHLIGHTS/
PER SHARE DATA
California Intermediate Municipal Fund Inc. 35
Intermediate Municipal Fund Inc. 36
New York Intermediate Municipal Fund Inc. 37
DIVIDEND REINVESTMENT PLAN 39
DIRECTORY 41
PROXY VOTING POLICIES AND PROCEDURES 42
QUARTERLY PORTFOLIO SCHEDULE 42
REPORT OF VOTES OF SHAREHOLDERS 43
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 period ending April 30, 2005.
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 current income exempt from
regular federal income tax and, for each state-specific fund, current income
exempt from that state's income taxes.
We invest in intermediate-term municipal bonds because our experience and
research indicate strongly that this maturity range has historically offered the
best risk/reward profile on the yield curve, providing much of the return of
longer-term bonds -- with less volatility and risk.
We believe that our conservative investment philosophy and disciplined
investment process will benefit you with superior tax-exempt current income over
the long term.
Thank you for your confidence in Neuberger Berman. We will continue to do our
best to earn it.
Sincerely,
/s/ Peter Sundman
PETER SUNDMAN
CHAIRMAN OF THE BOARD
CALIFORNIA INTERMEDIATE MUNICIPAL FUND INC.
INTERMEDIATE MUNICIPAL FUND INC.
NEW YORK INTERMEDIATE MUNICIPAL FUND INC.
"Neuberger Berman" and the Neuberger Berman logo are service marks of Neuberger
Berman, LLC. "Neuberger Berman Management Inc." and the individual fund names in
this shareholder report are either service marks or registered service marks of
Neuberger Berman Management Inc. (C)2005 Neuberger Berman Management Inc. All
rights reserved.
1
INTERMEDIATE MUNICIPAL CLOSED-END FUNDS Portfolio Commentaries
We are pleased to report that, on a Net Asset Value (NAV) basis, all three of
Neuberger Berman's Intermediate Municipal Closed-End Funds delivered positive
returns and materially outperformed the Lehman 10-Year Municipal Bond Index in
the first half of fiscal 2005.
Intermediate-term municipal bonds followed the performance pattern of the broad
bond market during this six-month reporting period, with prices remaining
relatively stable from November 2004 through January 2005, declining in February
and March, and then rallying in April. The February/March sell-off reflected
growing investor concern that the still strong economy would reignite
inflationary fires and force the Federal Reserve to tighten more aggressively.
The April rally of this year came on the back of statistical and anecdotal
evidence that the economy was slowing.
The strong economy of recent years has bolstered most municipal issuers' balance
sheets. In fact, according to Standard & Poor's, first-quarter 2005 was the
first quarter in five years during which municipal bond credit upgrades
outnumbered downgrades. Although new issuance of municipal bonds was erratic due
to changing market conditions, supply and demand remained relatively well
balanced. Also, with the yield on a 10-Year AAA rated municipal bond now at 87%
of the 10-Year Treasury yield, municipal securities appear attractively priced
relative to Treasuries.
Although fundamentals have improved, there are several issues clouding the
outlook for municipal bonds. Underfunded pension plans, which have recently made
negative headlines in the corporate world (General Motors and United Airlines),
will likely call attention to municipal issuers that have failed to put aside
enough money to cover benefits for their retiring workers. Consequently,
evaluating municipal issuers' pension fund assets and liabilities has become
even more critical in our credit analysis. A political dialogue about
overhauling the tax system could also cast a shadow over municipal securities in
the short term. We note that despite periodic political groundswells calling for
revamping the increasingly complex tax system, no administration has mustered
the political support necessary to make significant changes. So, while an
overhaul of the tax system is on President Bush's "to do" list, we are skeptical
that a major change will happen. We would also point out that whenever there has
been a spirited national debate on this issue, it has been an opportunistic time
to buy municipal securities.
Looking ahead, we will continue to focus on Federal Reserve policy and economic
data relating to inflation. If the economy settles into a slower growth path,
the municipal bond market could withstand additional "measured" Fed rate hikes
to get short-term interest rates back to "normalized" levels. If inflation
proves to be more of a problem than policy-makers currently anticipate, fixed
income securities are more vulnerable. In this uncertain environment, we are
maintaining our "safety first" duration posture, keeping our weighted average
durations shorter than the benchmark's.
CALIFORNIA INTERMEDIATE MUNICIPAL FUND INC.
For the six months ending April 30, 2005, on a Net Asset Value (NAV) basis, the
California Intermediate Municipal Fund returned 2.83% compared to the Lehman
10-Year Municipal Bond Index's 1.29% return.
As of April 30, 2005, the portfolio comprised 87.2% revenue bonds, 10.9% general
obligation bonds, and 1.9% other assets and short term investments. Bonds
subject to the Alternative
2
Minimum Tax (AMT) equaled 12.8% of assets. At the close of the reporting period,
the Fund's duration was 5.6 years and the portfolio's leverage position was
36.6% of assets.
INTERMEDIATE MUNICIPAL FUND INC.
For the six months ending April 30, 2005, on a Net Asset Value (NAV) basis, the
Intermediate Municipal Fund returned 2.70% compared to the Lehman 10-Year
Municipal Bond Index's 1.29% return.
As of April 30, 2005, the portfolio comprised 74.4% revenue bonds, 22.3% general
obligation bonds, 1.7% pre-refunded/escrow bonds, and 1.6% other assets and
short term investments. Bonds subject to the Alternative Minimum Tax (AMT)
equaled 13.2% of assets. At the close of the reporting period, the Fund's
duration was 5.8 years and the portfolio's leverage position was 36.5% of
assets.
NEW YORK INTERMEDIATE MUNICIPAL FUND INC.
For the six months ending April 30, 2005, on a Net Asset Value (NAV) basis, the
New York Intermediate Municipal Fund returned 2.78% compared to the Lehman
10-Year Municipal Bond Index's 1.29% return.
As of April 30, 2004, the portfolio comprised 93.6% revenue bonds, 4.8% general
obligation bonds, and 1.6% other assets and short term investments. Bonds
subject to the Alternative Minimum Tax (AMT) equaled 18.7% of assets. At the
close of the reporting period, the Fund's duration was 5.7 years and the
portfolio's leverage position was 36.8% of assets.
Sincerely,
/s/ Ted Giuliano, /s/ Thomas Brophy
/s/ Lori Canell
TED GIULIANO, THOMAS BROPHY
AND
LORI CANELL
PORTFOLIO CO-MANAGERS
3
INTERMEDIATE MUNICIPAL CLOSED-END FUNDS
PERFORMANCE HIGHLIGHTS
SIX MONTH AVERAGE ANNUAL TOTAL
PERIOD ENDED RETURN ENDED 4/30/2005
NAV INCEPTION DATE 4/30/2005 1 YEAR SINCE INCEPTION
CALIFORNIA INTERMEDIATE
MUNICIPAL FUND (1),(3),(4) 09/24/2002 2.83% 12.06% 7.54%
INTERMEDIATE MUNICIPAL FUND (1),(3),(4) 09/24/2002 2.70% 11.46% 7.78%
NEW YORK INTERMEDIATE
MUNICIPAL FUND (1),(3),(4) 09/24/2002 2.78% 10.71% 7.20%
PERFORMANCE HIGHLIGHTS
SIX MONTH AVERAGE ANNUAL TOTAL
PERIOD ENDED RETURN ENDED 4/30/2005
MARKET PRICE INCEPTION DATE 4/30/2005 1 YEAR SINCE INCEPTION
CALIFORNIA INTERMEDIATE
MUNICIPAL FUND (2),(3),(4) 09/24/2002 1.00% 11.28% 0.53%
INTERMEDIATE MUNICIPAL FUND (2),(3),(4) 09/24/2002 1.17% 11.61% 1.39%
NEW YORK INTERMEDIATE
MUNICIPAL FUND (2),(3),(4) 09/24/2002 1.13% 10.57% 0.25%
CALIFORNIA INTERMEDIATE MUNICIPAL FUND
RATING DIVERSIFICATION
(% BY RATINGS)
AAA 56.0%
AA 3.2
A 14.2
BBB 23.1
BB 2.7
B 0.0
CCC 0.0
CC 0.0
C 0.0
D 0.0
Not Rated 0.0
Short Term 0.8
INTERMEDIATE MUNICIPAL FUND
RATING DIVERSIFICATION
(% BY RATINGS)
AAA 57.2%
AA 8.2
A 11.6
BBB 19.1
BB 3.2
B 0.4
CCC 0.0
CC 0.0
C 0.0
D 0.0
Not Rated 0.0
Short Term 0.3
NEW YORK INTERMEDIATE MUNICIPAL FUND
RATING DIVERSIFICATION
(% BY RATINGS)
AAA 23.6%
AA 33.6
A 15.9
BBB 22.2
BB 4.5
B 0.0
CCC 0.0
CC 0.0
C 0.0
D 0.0
Not Rated 0.0
Short Term 0.2
Closed-end funds, unlike open-end funds, are not continually offered. There is
an initial public offering and once issued, common shares of closed-end funds
are sold in the open market through a stock exchange.
The composition, industries and holdings of the fund are subject to change.
Investment return will fluctuate. Past performance is no guarantee of future
results.
4
ENDNOTES
1. Returns based on Net Asset Value ("NAV") of the Funds.
2. Returns based on market price of Fund shares on the American Stock
Exchange.
3. A portion of the income from the Funds may be subject to the Federal
alternative minimum tax for certain investors.
4. Neuberger Berman Management Inc. has contractually agreed to waive a
portion of the management fees that it is entitled to receive from each
Fund. Each undertaking lasts until October 31, 2011. Please see the notes
to the financial statements for specific information regarding the rate of
the management fees waived by Neuberger Berman Management Inc. Absent such
a waiver, the performance of each Fund would be lower.
5
GLOSSARY OF INDICES
NEW YORK MUNICIPAL DEBT FUND AVERAGE: An equally weighted average of those closed-end funds that limit
their assets to those securities that are exempt from taxation in
New York (double tax-exempt) or a city in New York (triple
tax-exempt).
CALIFORNIA MUNICIPAL DEBT FUND INDEX: An equally weighted index, adjusted for income dividends and capital
gain distributions, of typically the largest 30 closed-end funds
that invest at least 65% of assets in municipal debt issues that are
exempt from taxation in California.
CALIFORNIA MUNICIPAL DEBT FUND AVERAGE: An equally weighted average of those closed-end funds that invest at
least 65% of assets in municipal debt issues that are exempt from
taxation in California.
GENERAL LEVERAGED MUNICIPAL DEBT FUND INDEX: An equally weighted index, adjusted for income dividends and capital
gain distributions, of typically the largest 30 closed-end funds
that invest 65% or more of their assets in municipal debt issues
rated in the top four credit ratings. These funds can be leveraged
via use of debt, preferred equity, and/or reverse repurchase
agreements.
GENERAL LEVERAGED MUNICIPAL DEBT FUND AVERAGE: An equally weighted average of those closed-end funds that invest
65% or more of their assets in municipal debt issues rated in the
top four credit ratings. These funds can be leveraged via use of
debt, preferred equity, and/or reverse repurchase agreements.
LEHMAN 10-YEAR MUNICIPAL BOND INDEX: The index is the 10 Year (8-12) component which is a rules-based,
market-value-weighted index engineered for the long-term tax-exempt
bond market. To be included in the index, bonds must have a minimum
credit rating of Baa. They must have an outstanding par value of at
least $5 million and be issued as part of a transaction of at least
$50 million. The bonds must have a dated-date after December 31,
1990 and must be at least one year from their maturity date.
Remarked issues, taxable municipal bonds, bonds with floating rates,
and derivatives, are excluded from the benchmark.
Please note that indices do not take into account any fees and expenses or any
tax consequences of investing in the individual securities that they track and
that investors cannot invest directly in any index or average. Data about the
performance of each index or average are prepared or obtained by Neuberger
Berman Management Inc. and include reinvestment of all dividends and capital
gain distributions. Each Fund may invest in securities not included in its
respective index.
6
SCHEDULE OF INVESTMENTS California Intermediate Municipal Fund Inc.
PRINCIPAL AMOUNT SECURITY @ RATING VALUE+
(000'S OMITTED) MOODY'S S&P (000'S OMITTED)
TAX-EXEMPT SECURITIES--BACKED BY INSURANCE (84.4%)
AMERICAN CAPITAL ACCESS
$ 1,000 Puerto Rico Ind., Tourist, Ed., Med., & Env. Ctrl. Fac. Rev.
(Polytechnic Univ. of Puerto Rico Proj.), Ser. 2002 A,
5.25%, due 8/1/15 A $ 1,064++
AMERICAN MUNICIPAL BOND ASSURANCE CORP.
1,285 Bay Area (CA) Governments Assoc. Bart SFO Extension Rev.
(Arpt. Premium Fare), Ser. 2002 A,
5.00%, due 8/1/21 AAA 1,364
1,000 California St. Pub. Works Board Lease (Dept. of Gen. Svc.)
Rev. (Cap. East End Complex), Ser. 2002 A, 5.25%, due 12/1/16 AAA 1,097
1,000 Fresno (CA) Unified Sch. Dist. Ref. G.O., Ser. 2002 A,
6.00%, due 2/1/17 AAA 1,201
1,905 Long Beach (CA) Bond Fin. Au. Tax Allocation Rev.,
(Downtown, North Long Beach, Poly High, & West Beach Redev.
Proj.), Ser. 2002 A, 5.38%, due 8/1/17 AAA 2,105
500 Long Beach (CA) Fin. Au. Rev., Ser. 1992,
6.00%, due 11/1/17 AAA 598
1,045 Marin Co. (CA) Muni. Wtr. Dist. Wtr. Ref. Rev., Ser. 2002,
5.00%, due 7/1/17 AAA 1,122
1,445 Oceanside (CA) Cert. of Participation Ref. Rev., Ser. 2003 A,
5.25%, due 4/1/14 AAA 1,614
2,600 Sacramento (CA) Muni. Util. Dist. Elec. Rev., Ser. 1997 K,
5.70%, due 7/1/17 AAA 3,083
500 Salinas Valley (CA) Solid Waste Au. Rev., Ser. 2002,
5.00%, due 8/1/06 AAA 514
2,000 San Francisco (CA) St. Bldg. Au. Lease Rev.
(San Francisco Civic Ctr. Complex), Ser. 1996 A,
5.25%, due 12/1/16 AAA 2,114
2,500 San Jose (CA) Fin. Au. Lease Rev. (Civic Ctr. Proj.),
Ser. 2002 B, 5.25%, due 6/1/17 AAA 2,730
1,000 San Jose (CA) Multi-Family Hsg. Rev. (Fallen
Leaves Apts. Proj.), Ser. 2002 J-1,
4.95%, due 12/1/22 Aaa AAA 1,034++
FINANCIAL GUARANTY INSURANCE CO.
2,550 Contra Costa (CA) Comm. College Dist. G.O.,
Ser. 2002, 5.25%, due 8/1/17 AAA 2,797
1,000 Kings Canyon (CA) Joint Unified Sch. Dist. G.O.,
Ser. 2002, 5.38%, due 8/1/17 Aaa AAA 1,109
5,000 Los Angeles (CA) Dept. of Arpts. Rev. (Los Angeles
Int'l. Arpt.), Ser. 2002 A, 5.25%, due 5/15/18 Aaa AAA 5,437
1,090 Moreland (CA) Sch. Dist. Ref. G.O., Ser. 2002,
5.13%, due 9/1/17 AAA 1,185
535 Nevada & Placer Cos. (CA) Irrigation Dist. Cert. of
Participation Rev., Ser. 2002, 5.00%, due 1/1/16 AAA 578
565 Nevada & Placer Cos. (CA) Irrigation Dist. Cert. of
Participation Rev., Ser. 2002, 5.00%, due 1/1/17 AAA 607
1,045 Oakland (CA) G.O., Ser. 2002 A, 5.00%, due 1/15/15 AAA 1,129
1,210 Oakland (CA) G.O., Ser. 2002 A, 5.00%, due 1/15/18 AAA 1,293
1,290 Oakland (CA) Redev. Agcy. Sub. Tax Allocation Rev.
(Central Dist. Redev. Proj.), Ser. 2003,
5.50%, due 9/1/17 AAA 1,455
575 Port of Oakland (CA) Rev., Ser. 2002 M,
5.25%, due 11/1/17 AAA 637
See Notes to Schedule of Investments
7
PRINCIPAL AMOUNT SECURITY @ RATING VALUE+
(000'S OMITTED) MOODY'S S&P (000'S OMITTED)
$ 2,655 Riverside Co. (CA) Eastern Muni. Wtr. Dist. Cert. of
Participation Wtr. & Swr. Rev., Ser. 2001 A,
5.00%, due 7/1/19 Aaa AAA $ 2,816
2,000 San Diego (CA) Unified Sch. Dist. G.O., Ser. 2002 D,
5.25%, due 7/1/21 Aaa AAA 2,241
1,500 San Francisco (CA) City & Co. Int'l. Arpt. Second Ser.
Rev., 5.25%, due 5/1/16 AAA 1,594
FINANCIAL SECURITY ASSURANCE INC.
1,000 Burbank (CA) Pub. Svc. Dept. Elec. Rev., Ser. 1998,
5.13%, due 6/1/16 AAA 1,075
1,000 California St. Dept. of Wtr. Res. Wtr. Rev., Ser. 2001 W,
5.50%, due 12/1/13 Aaa AAA 1,153
3,000 California St. Pub. Works Board Lease Rev.
(Regents of the Univ. of California, UCLA Replacement
Hosp.), Ser. 2002 A, 5.38%, due 10/1/13 AAA 3,352
1,275 Los Angeles Co. (CA) Long Beach Unified Sch. Dist. G.O.,
Ser. 2002 D, 5.00%, due 8/1/17 AAA 1,370
500 Marin Co. (CA) Dixie Elementary Sch. Dist. G.O.,
Ser. 2000 A, 5.38%, due 8/1/17 AAA 552
3,000 Puerto Rico Muni. Fin. Agcy. Rev., Ser. 2002 A,
5.25%, due 8/1/17 AAA 3,319
1,000 Puerto Rico Muni. Fin. Agcy. Rev., Ser. 2002 A,
5.25%, due 8/1/21 Aaa AAA 1,105
5,000 San Francisco (CA) City & Co. Redev. Agcy. Lease Ref.
Rev. (George R. Moscone Convention Ctr.), Ser. 2002,
5.00%, due 7/1/17 Aaa AAA 5,363
1,000 San Jose (CA) Arpt. Ref. Rev., Ser. 2002 B,
5.00%, due 3/1/11 AAA 1,075
1,615 San Jose (CA) Arpt. Ref. Rev., Ser. 2002 B,
5.00%, due 3/1/12 AAA 1,740
1,620 Santa Clara Co. (CA) Fremont Union High Sch. Dist. G.O.,
Ser. 2002 C, 5.00%, due 9/1/20 Aaa AAA 1,811
MUNICIPAL BOND INVESTORS ASSURANCE CORP.
1,250 Alameda Co. (CA) Cert. of Participation Ref. Rev.,
Ser. 2001 A, 5.38%, due 12/1/17 AAA 1,388
4,000 California Poll. Ctrl. Fin. Au. Ref. PCR (Pacific Gas &
Elec. Co.), Ser. 1996 A, 5.35%, due 12/1/16 AAA 4,349++
2,835 Glendale (CA) Redev. Agcy. Tax Allocation Rev. (Central
Glendale Redev. Proj.), Ser. 2002, 5.00%, due 12/1/16 AAA 3,082
2,480 Glendale (CA) Redev. Agcy. Tax Allocation Rev. (Central
Glendale Redev. Proj.), Ser. 2002, 5.25%, due 12/1/17 AAA 2,732
3,890 Port of Oakland (CA) Ref. Rev., Ser. 2002 N,
5.00%, due 11/1/13 AAA 4,147
750 Santa Clara Co. (CA) Saratoga Union Sch. Dist. Ref. G.O.,
Ser. 1999, 5.13%, due 9/1/11 AAA 834
3,905 Solano Co. (CA) Cert. of Participation Rev., Ser. 2002,
5.25%, due 11/1/17 AAA 4,282
1,000 Univ. of California Regents Rev. (Multi. Purp. Proj.),
Ser. 2000 K, 5.00%, due 9/1/12 AAA 1,078
---------------
86,325
---------------
TAX-EXEMPT SECURITIES--OTHER (70.3%)
780 Abag (CA) Fin. Au. Cert. of Participation Rev. (Channing
House), Ser. 1999, 4.90%, due 2/15/09 BBB+ 817++
3,050 Abag (CA) Fin. Au. Cert. of Participation Rev. (Episcopal
Homes Foundation), Ser. 1998, 5.13%, due 7/1/18 BBB+ 3,137++
8
PRINCIPAL AMOUNT SECURITY @ RATING VALUE+
(000'S OMITTED) MOODY'S S&P (000'S OMITTED)
$ 1,000 Abag (CA) Fin. Au. Rev. (San Diego Hosp. Assoc.),
Ser. 2003 C, 5.13%, due 3/1/18 Baa1 BBB+ $ 1,041++
900 Brazos (TX) River Au. Ref. PCR (TXU Energy Co. LLC Proj.),
Ser. 2003 A, 6.75%, due 4/1/38 Putable 4/1/13 Baa2 BBB 1,047++
750 Brazos (TX) River Au. Ref. Rev. (Reliant Energy, Inc.
Proj.), Ser. 1999 B, 7.75%, due 12/1/18 Ba1 BBB- 838++
1,000 Brazos (TX) River Harbor Navigation Dist. of Brazoria Co.
Env. Fac. Rev. (Dow Chemical Co. Proj.), Ser. 2002 A-4,
5.20%, due 5/15/33 A3 A 1,049++
765 California Co. (CA) Tobacco Securitization Agcy. Tobacco
Settlement Asset-Backed Rev., Ser. 2002,
4.75%, due 6/1/19 Baa3 BBB 767
1,750 California Ed. Fac. Au. Ref. Rev. (Stanford Univ.),
Ser. 2001 R, 5.00%, due 11/1/21 Aaa AAA 1,864++
2,000 California Hlth. Fac. Fin. Au. Rev. (Catholic Healthcare
West), Ser. 2004 I, 4.95%, due 7/1/26 Baa1 BBB+ 2,105++
2,000 California Hlth. Fac. Fin. Au. Rev. (Cedars-Sinai Med.
Ctr.), Ser. 1999 A, 6.13%, due 12/1/19 A3 2,213++
1,000 California Hlth. Fac. Fin. Au. Rev. (Kaiser Permanente),
Ser. 1998 B, 5.00%, due 10/1/20 AAA 1,051++
1,500 California Poll. Ctrl. Fin. Au. Solid Waste Disp. Rev.
(Republic Svc., Inc. Proj.), Ser. 2002 B,
5.25%, due 6/1/23 Baa3 BBB 1,621++
2,500 California Poll. Ctrl. Fin. Au. Solid Waste Disp. Rev.
(Waste Management, Inc. Proj.), Ser. 2002 B,
4.45%, due 7/1/27 Putable 7/1/05 BBB 2,504++
1,000 California Poll. Ctrl. Fin. Au. Solid Waste Disp. Rev.
(Waste Management, Inc. Proj.), Ser. 2002 C,
4.85%, due 12/1/27 Putable 12/1/17 BBB 1,026++
4,500 California St. Dept. of Wtr. Res. Pwr. Supply Rev.,
Ser. 2002 A, 5.75%, due 5/1/17 A3 BBB+ 5,028
1,000 California St. Dept. of Wtr. Res. Pwr. Supply Rev.,
Ser. 2002 A, 5.38%, due 5/1/22 A3 BBB+ 1,080
2,250 California St. G.O., Ser. 2002, 5.00%, due 10/1/17 A3 A 2,394
1,095 California St. Pub. Works Board Lease Rev. (California
Comm. Colleges), Ser. 2004 B, 5.50%, due 6/1/20 Baa2 BBB- 1,195
1,000 California St. Univ., Fresno Assoc., Inc. Rev. (Auxiliary
Organization Event Ctr.), Ser. 2002, 5.00%, due 7/1/12 Baa3 BBB- 1,109
2,000 California Statewide CDA Cert. of Participation Rev.
(Children's Hosp. Los Angeles), Ser. 1999,
5.13%, due 8/15/19 A2 A+ 2,091++
2,000 California Statewide CDA Cert. of Participation Rev. (The
Internext Group), Ser. 1999, 5.38%, due 4/1/17 BBB 2,053++
5,000 California Statewide CDA Hlth. Fac. Rev. (Mem. Hlth. Svcs.),
Ser. 2003 A, 6.00%, due 10/1/16 A3 A 5,607++
500 California Statewide CDA Rev. (East Valley Tourist Dev.
Au.), Ser. 2003 A, 9.25%, due 10/1/20 BB 557
3,000 California Statewide CDA Rev. (Kaiser Permanente),
Ser. 2002 E, 4.70%, due 11/1/36 Putable 6/1/09 A3 3,155++
1,000 Central (CA) Joint Pwr. Hlth. Fin. Au. Cert. of
Participation Rev., (Comm. Hosp. of Central California
Proj.), Ser. 2000, 5.50%, due 2/1/14 Baa1 BBB+ 1,051++
1,020 Cerritos (CA) Pub. Fin. Au. Sub. Tax Allocation Rev.
(Cerritos Redev. Proj.), Ser. 2002 B, 4.40%, due 11/1/16 BBB 1,020
See Notes to Schedule of Investments
9
PRINCIPAL AMOUNT SECURITY @ RATING VALUE+
(000'S OMITTED) MOODY'S S&P (000'S OMITTED)
$ 1,000 Cumberland Co. (PA) West Shore Area Au. Hosp. Rev. (Holy
Spirit Hosp. of the Sisters of Christian, Charity Proj.),
Ser. 2001, 6.00%, due 1/1/18 BBB+ $ 1,085++
500 Dallas-Fort Worth (TX) Int'l. Arpt. Fac. Imp. Corp. Rev.,
Ser. 2004 A-1, 6.15%, due 1/1/16 Baa3 BBB- 504++
1,000 De Kalb Co. (GA) Dev. Au. Ref. PCR (General Motors Corp.
Proj.), Ser. 2002, 6.00%, due 3/15/21 Baa3 BBB- 995++
1,210 Elk Grove (CA) Spec. Tax Rev. (East Franklin Comm. Fac.
Dist. Number 1), Ser. 2002 A, 5.38%, due 8/1/17 BB+ 1,228
1,270 Los Angeles (CA) Dept. of Wtr. & Pwr. Sys. Rev., Ser. 2001 A,
Sub. Ser. A-3, 5.38%, due 7/1/20 Aa3 1,310
750 Miami Beach (FL) Hlth. Fac. Au. Hosp. Ref. Rev.
(Mount Sinai Med. Ctr. Florida Proj.), Ser. 2004,
6.25%, due 11/15/09 Ba2 BB 798++
1,500 Morehouse Parish (LA) Ref. PCR (Int'l. Paper Co. Proj.),
Ser. 2001 A, 5.25%, due 11/15/13 Baa2 BBB 1,612++
500 New York City (NY) Ind. Dev. Agcy. Liberty Rev. (7 World
Trade Center LLC Proj.), Ser. 2005 A, 6.25%, due 3/1/15 512^^
1,405 North Carolina Muni. Pwr. Agcy. Number 1 Catawba Elec.
Rev., Ser. 2003 A, 5.50%, due 1/1/14 Baa1 BBB+ 1,550
605 Oakland (CA) Redev. Agcy. Rev. (Coliseum Area Redev.
Proj.), Ser. 2003, 5.00%, due 9/1/16 A- 638
635 Oakland (CA) Redev. Agcy. Rev. (Coliseum Area Redev.
Proj.), Ser. 2003, 5.00%, due 9/1/17 A- 664
1,365 Puerto Rico Children's Trust Tobacco Settlement
Asset-Backed Rev., Ser. 2002, 5.38%, due 5/15/33 Baa3 BBB 1,375
440 Roseville (CA) Stone Point Comm. Fac. District No. 1
Special Tax Rev., Ser. 2003, 5.70%, due 9/1/17 BB+ 445
830 San Diego (CA) Redev. Agcy. Sub. Parking Rev. (Centre City
Redev. Proj.), Ser. 2003 B, 4.80%, due 9/1/15 Baa2 A- 858
820 San Diego (CA) Redev. Agcy. Sub. Parking Rev. (Centre City
Redev. Proj.), Ser. 2003 B, 4.90%, due 9/1/16 Baa2 A- 847
3,000 San Francisco (CA) Bay Area Toll Au. Toll Bridge Rev.,
Ser. 2001 D, 5.00%, due 4/1/17 Aa3 AA 3,179
1,000 Santa Rosa (CA) Rancheria Tachi Yokut Tribe Enterprise
Rev., Ser. 2003, 6.13%, due 3/1/13 BBB 1,020
1,000 South Gate (CA) Pub. Fin. Au. Tax Allocation Rev. (South
Gate Redev. Proj. No. 1), Ser. 2002, 5.00%, due 9/1/16 AAA 1,086
1,250 Tobacco Settlement Fin. Corp. (LA) Tobacco Settlement
Asset-Backed Rev., Ser. 2001 B, 5.50%, due 5/15/30 Baa3 BBB 1,232
600 Univ. of California Regents Cert. of Participation Rev.
(San Diego Campus & Sacramento Proj.), Ser. 2002 A,
5.25%, due 1/1/18 Aa2 645
750 Verrado (AZ) Comm. Fac. Dist. Number 1 G.O., Ser. 2003,
6.15%, due 7/15/17 BB- 809
250 Virgin Islands Pub. Fin. Au. Refinery Fac. Rev. (HOVENSA
Refinery Proj.), Ser. 2003, 6.13%, due 7/1/22 Baa3 BBB- 272
750 Virgin Islands Pub. Fin. Au. Rev. (Virgin Islands Matching
Fund Loan Notes), Ser. 1998 E, 6.00%, due 10/1/22 BBB 776
1,000 Virgin Islands Wtr. & Pwr. Au. Elec. Sys. Ref. Rev.,
Ser. 1998, 5.30%, due 7/1/18 BBB 1,016
---------------
71,876
---------------
10
PRINCIPAL AMOUNT SECURITY @ RATING VALUE+
(000'S OMITTED) MOODY'S S&P (000'S OMITTED)
TAX-EXEMPT VARIABLE RATE DEMAND NOTES--BACKED BY LETTERS OF CREDIT (0.8%)
BANK OF AMERICA
$ 264 Irvine (CA) Ltd. Oblig. Imp. (Assessment Dist. No 93-14),
Ser. 2000, 3.00%, VRDN due 5/2/05 VMIG1 A-1+ $ 264
400 Newport Beach (CA) Rev. (Hoag Mem. Hosp. Presbyterian),
Ser. 1992, 2.95%, VRDN due 5/2/05 VMIG1 A-1+ 400++
STATE STREET BANK
200 Irvine Ranch (CA) Wtr. Dist. G.O., Ser. 1995,
3.00%, VRDN due 5/2/05 VMIG1 A-1+ 200
---------------
864
---------------
TAX-EXEMPT VARIABLE RATE DEMAND NOTES--OTHER (0.2%)
200 California Poll. Ctrl. Fin. Au. Ref. PCR (Exxon Proj.), Ser. 1989,
2.80%, VRDN due 5/2/05 P-1 A-1+ 200++
---------------
TOTAL INVESTMENTS (155.7%) (COST $153,579) 159,265##
Cash, receivables and other assets, less liabilities (2.0%) 2,007
Liquidation Value of Auction Market Preferred Shares [(57.7%)] (59,000)
---------------
TOTAL NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS (100.0%) $ 102,272
---------------
See Notes to Schedule of Investments
11
SCHEDULE OF INVESTMENTS Intermediate Municipal Fund Inc.
PRINCIPAL AMOUNT SECURITY @ RATING VALUE+
(000'S OMITTED) MOODY'S S&P (000'S OMITTED)
TAX-EXEMPT SECURITIES--PRE-REFUNDED BACKED BY U.S. GOVERNMENT SECURITIES (5.2%)
$ 2,225 Massachusetts St. Wtr. Poll. Abatement Trust Pre-Refunded
Rev. (Pool Prog.), Ser. 2001, 5.25%, due 2/1/16 P/R 8/1/11 Aaa AAA $ 2,460
5,100 Prince Georges Co. (MD) Pre-Refunded Cons. Pub. Imp. G.O., Ser. 2001,
5.25%, due 12/1/16 P/R 12/1/11 Aaa AAA 5,734
20 San Antonio (TX) Pre-Refunded Cert. of Obligation G.O.,
Ser. 2002, 5.00%, due 2/1/14 P/R 2/1/12 Aa2 AA+ 22
7,205 Wisconsin St. G.O., Ser. 2002 C, 5.25%, due 5/1/17
P/R 5/1/12 Aaa AAA 8,009
---------------
16,225
---------------
TAX-EXEMPT SECURITIES--ESCROWED IN U.S. GOVERNMENT SECURITIES (0.6%)
1,670 Illinois Metro. Pier & Exposition Au. Dedicated St. Tax Ref.
Rev., Ser. 1998 A, 5.50%, due 6/15/17 AAA 1,950
---------------
TAX-EXEMPT SECURITIES--BACKED BY INSURANCE (69.8%)
AMERICAN MUNICIPAL BOND ASSURANCE CORP.
1,500 California St. Pub. Works Board Lease Rev., Ser. 2002 A,
5.25%, due 12/1/17 AAA 1,638
5,000 Chicago (IL) G.O., Ser. 1995 A-2, 6.25%, due 1/1/13 Aaa AAA 5,898
6,120 Chicago (IL) G.O., Ser. 2002 A, 5.38%, due 1/1/17 Aaa AAA 6,731
4,220 Colorado Springs (CO) Util. Sys. Sub. Lien Ref. Rev.,
Ser. 2002 A, 5.38%, due 11/15/18 AAA 4,660
4,100 Fargo (ND) Hlth. Sys. Rev. (Meritcare Obligated Group),
Ser. 2002 A, 5.63%, due 6/1/17 AAA 4,569++
1,065 Indiana St. Recreational Dev. Comm. Rev., Ser. 2002,
5.25%, due 7/1/18 AAA 1,153
1,125 Indiana St. Recreational Dev. Comm. Rev., Ser. 2002,
5.25%, due 7/1/19 AAA 1,215
3,000 Massachusetts Port Au. Spec. Fac. Rev. (Delta Air Lines,
Inc. Proj.), Ser. 2001 A, 5.50%, due 1/1/19 AAA 3,173++
5,010 New Hampshire Hlth. & Ed. Fac. Au. Rev. (Univ. Sys. of
New Hampshire), Ser. 1992, 5.38%, due 7/1/17 AAA 5,537
7,000 Palm Beach Co. (FL) Sch. Board Cert. of Participation,
Ser. 2001 B, 5.38%, due 8/1/17 AAA 7,724
4,610 Thornton (CO) Cert. of Participation, Ser. 2002,
5.38%, due 12/1/16 Aaa AAA 5,103
FINANCIAL GUARANTY INSURANCE CO.
4,000 Denver (CO) City & Co. Arpt. Sys. Ref. Rev., Ser. 2002 E,
5.25%, due 11/15/14 Aaa AAA 4,322
3,075 Detroit (MI) Sch. Dist. Sch. Bldg. & Site Imp. G.O.,
Ser. 2002 A, 5.50%, due 5/1/15 AAA 3,459
3,235 Houston (TX) Arpt. Sys. Sub. Lien Ref. Rev., Ser. 2001 A,
5.50%, due 7/1/16 AAA 3,524
4,355 Las Vegas (NV) Valley Wtr. Dist. Ref. & Wtr. Imp. G.O.,
Ser. 2003 A, 5.25%, due 6/1/16 Aaa AAA 4,801
4,935 Massachusetts St. Hlth. & Ed. Fac. Au. Rev. (New England
Med. Ctr. Hosp.), Ser. 2002 H, 5.38%, due 5/15/16 AAA 5,414++
2,140 Mt. Pleasant Town (SC) Waterworks & Swr. Sys. Ref. & Imp.
Rev., Ser. 2002, 5.25%, due 12/1/17 AAA 2,368
2,080 Oakland (CA) Redev. Agcy. Sub. Tax Allocation Rev. (Central
Dist. Redev. Proj.), Ser. 2003, 5.50%, due 9/1/18 AAA 2,337
8,140 Orange Co. (FL) Sales Tax Ref. Rev., Ser. 2002 A,
5.13%, due 1/1/18 Aaa AAA 8,873
2,000 Philadelphia (PA) Arpt. Ref. Rev. (Philadelphia Arpt. Sys.),
Ser. 1998 A, 5.38%, due 6/15/14 AAA 2,136
12
PRINCIPAL AMOUNT SECURITY @ RATING VALUE+
(000'S OMITTED) MOODY'S S&P (000'S OMITTED)
$ 6,250 Port of Seattle (WA) Sub Lien Rev., Ser. 2002 B,
5.50%, due 9/1/16 AAA $ 6,815
400 Prince Georges Co. (MD) Unrefunded Balance Cons. Pub.
Imp. G.O., Ser. 2001, 5.25%, due 12/1/16 Aaa AAA 442
1,000 Sarasota Co. (FL) Util. Sys. Ref. Rev., Ser. 2002 C,
5.25%, due 10/1/20 Aaa AAA 1,088
2,500 Tacoma (WA) Wtr. Sys. Rev., Ser. 2001, 5.13%, due 12/1/19 AAA 2,670
FINANCIAL SECURITY ASSURANCE INC.
3,495 Bi State (MO-IL) Dev. Agcy. Metro. Dist. Rev. (Metrolink
Cross Co. Extension Proj.), Ser. 2002 B, 5.25%, due 10/1/16 Aaa AAA 3,891
1,100 Charleston Co. (SC) Sch. Dist. G.O., Ser. 2001,
5.00%, due 2/1/18 Aa1 1,191
3,600 Corpus Christi (TX) Tax & Muni. Hotel Occupancy Tax G.O.,
Ser. 2002, 5.50%, due 9/1/17 AAA 4,005
1,935 Dallas-Fort Worth (TX) Int'l. Arpt. Imp. Rev., Ser. 2004 B,
5.50%, due 11/1/18 Aaa AAA 2,126
8,800 Energy Northwest (WA) Elec. Ref. Rev. (Proj. No. 3),
Ser. 2001 A, 5.50%, due 7/1/17 Aaa AAA 9,730
7,000 Harris Co. (TX) Toll Road Sr. Lien Ref. Rev., Ser. 2002,
5.38%, due 8/15/16 AAA 7,737
2,580 Indianapolis (IN) Local Pub. Imp. Rev. (Indianapolis Arpt.
Au. Proj.), Ser. 2003 A, 5.63%, due 1/1/17 AAA 2,851
2,000 Kane, Cooke, & DuPage Cos. (IL) Elgin Sch. Dist.
Number U-46 G.O., Ser. 1998, 5.35%, due 1/1/15 Aaa 2,191
5,000 King & Snohomish Cos. (WA) Northshore Sch. Dist.
Number 417 G.O., Ser. 2002, 5.50%, due 12/1/17 Aaa AAA 5,692
4,260 King Co. (WA) Pub. Trans. Sales Tax Ref. G.O., Ser. 2002,
5.38%, due 12/1/14 Aaa AAA 4,758
3,015 Knox Co. (TN) Hlth., Ed. & Hsg. Fac. Board Hosp. Ref. & Imp.
Rev., Ser. 2002 A, 5.50%, due 1/1/18 Aaa AAA 3,304++
1,725 Maine Muni. Bond Bank Rev., Ser. 1998 C,
5.35%, due 11/1/18 AAA 1,879
5,000 New Jersey Bldg. Au. St. Bldg. Ref. Rev., Ser. 2002 B,
5.25%, due 12/15/15 AAA 5,514
4,665 South Carolina St. Pub. Svc. Au. Rev., Ser. 2002 B,
5.38%, due 1/1/18 Aaa AAA 5,114
4,200 Tarrant (TX) Reg. Wtr. Dist. Wtr. Ref. & Imp. Rev., Ser. 2002,
5.38%, due 3/1/16 Aaa AAA 4,671
5,395 Truckee Meadows (NV) Wtr. Au. Wtr. Rev., Ser. 2001 A,
5.50%, due 7/1/15 AAA 5,969
1,370 Wisconsin Hlth. & Ed. Fac. Au. Rev. (Aurora Med. Group, Inc.
Proj.), Ser. 1996, 6.00%, due 11/15/11 Aaa AAA 1,568++
MUNICIPAL BOND INVESTORS ASSURANCE CORP.
1,465 Arizona St. Energy Mgt. Svcs. (Main) LLC Energy
Conservation Rev. (Arizona St. Univ. Proj.-Main, Campus),
Ser. 2002, 5.25%, due 7/1/17 AAA 1,606
3,000 CDP-King Co. III (WA) Lease Rev. (King Street Ctr. Proj.),
Ser. 1997, 5.13%, due 6/1/17 Aaa AAA 3,131
5,335 Clark Co. (NV) Passenger Fac. Charge Ref. Rev.
(Las Vegas-McCarran Int'l. Arpt. Proj.), Ser. 2002 A,
5.25%, due 7/1/10 AAA 5,738
4,575 Henry Co. (GA) Wtr. & Swr. Au. Wtr. & Swr. Ref. Rev.,
Ser. 2002 A, 5.13%, due 2/1/17 Aaa AAA 5,043
4,955 Houston (TX) Pub. Imp. Ref. G.O., Ser. 2002,
5.25%, due 3/1/17 AAA 5,405
See Notes to Schedule of Investments
13
PRINCIPAL AMOUNT SECURITY @ RATING VALUE+
(000'S OMITTED) MOODY'S S&P (000'S OMITTED)
$ 5,000 Illinois G.O., First Ser. 2002, 5.25%, due 10/1/14 Aaa $ 5,539
3,000 Illinois Hlth. Fac. Au. Rev. (Loyola Univ. Hlth. Sys.), Ser. 1997 A,
6.00%, due 7/1/14 Aaa AAA 3,519++
1,000 Indiana Muni. Pwr. Agcy. Pwr. Supply Sys. Rev., Ser. 2002 B,
5.25%, due 1/1/18 Aaa AAA 1,091
1,850 Massachusetts St. G.O., Ser. 2002 E, 5.38%, due 1/1/18 AAA 2,094
5,000 Michigan St. Hsg. Dev. Au. Single-Family Mtge. Rev., Ser. 2001 A,
5.30%, due 12/1/16 AAA 5,118
2,710 Newnan (GA) Hosp. Au. Rev. Anticipation Certificate
(Newnan Hosp., Inc. Proj.), Ser. 2002, 5.50%, due 1/1/18 Aaa 3,029++
1,910 Southmost (TX) Reg. Wtr. Au. Wtr. Supply Contract Rev.
(Desalination Plant Proj.), Ser. 2002, 5.50%, due 9/1/19 Aaa 2,119
1,000 Trinity (TX) River Au. Imp. & Ref. Rev. (Tarrant Co. Wtr. Proj.),
Ser. 2003, 5.50%, due 2/1/16 Aaa AAA 1,123
4,555 Washington St. G.O., Ser. 1998 C, 6.00%, due 7/1/12 AAA 5,280
---------------
217,676
---------------
TAX-EXEMPT SECURITIES--OTHER (79.4%)
4,145 Anson (TX) Ed. Fac. Corp. Std. Hsg. Rev. (Univ. of Texas at
Dallas-Waterview Park Proj.), Ser. 2002, 5.00%, due 1/1/23 A 4,227++
1,000 Austin (TX) Convention Enterprises, Inc. Convention Ctr.
Hotel First Tier Rev., Ser. 2001 A, 6.38%, due 1/1/16 Baa3 BBB- 1,061
1,630 Badger (WI) Tobacco Asset Securitization Corp. Tobacco
Settlement Asset-Backed Rev., Ser. 2002,
6.13%, due 6/1/27 Baa3 BBB 1,668
2,000 Boone Co. (MO) Hosp. Ref. Rev. (Boone Hosp. Ctr.), Ser. 2002,
5.05%, due 8/1/20 A3 2,081++
2,425 Branson (MO) Dev. Fin. Board Infrastructure Fac. Board Rev.,
Ser. 2003 A, 5.00%, due 12/1/17 Baa1 2,502
3,300 Brazos (TX) River Au. Ref. PCR (TXU Energy Co. LLC Proj.),
Ser. 2003 A, 6.75%, due 4/1/38 Putable 4/1/13 Baa2 BBB 3,838++
1,000 Brazos (TX) River Au. Ref. PCR (TXU Energy Co. LLC Proj.),
Ser. 2003 D, 5.40%, due 10/1/29 Putable 10/1/14 Baa2 1,083++
1,000 Brazos (TX) River Au. Ref. Rev. (Reliant Energy, Inc. Proj.),
Ser. 1999 B, 7.75%, due 12/1/18 Ba1 BBB- 1,118++
4,000 Brazos (TX) River Harbor Navigation Dist. Env. Fac. Rev.
(Dow Chemical Co. Proj.), Ser. 2002 B-2,
4.75%, due 5/15/33 Putable 5/15/07 A3 A 4,120++
2,500 Broward Co. (FL) G.O., Ser. 2001 A, 5.25%, due 1/1/18 Aa1 2,733
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+ 3,781++
2,500 California St. Dept. of Wtr. Res. Pwr. Supply Rev., Ser. 2002 A,
5.75%, due 5/1/17 A3 BBB+ 2,793
3,460 California St. Dept. of Wtr. Res. Pwr. Supply Rev., Ser. 2002 A,
5.38%, due 5/1/22 A3 BBB+ 3,737
1,240 California Statewide CDA Hlth. Fac. Rev. (Mem. Hlth. Svcs.),
Ser. 2003 A, 6.00%, due 10/1/16 A3 A 1,391++
1,500 California Statewide CDA Rev. (East Valley Tourist Dev. Au.),
Ser. 2003 A, 9.25%, due 10/1/20 1,671^^
1,500 Chicago (IL) Metro. Wtr. Reclamation Dist. Cap. Imp. G.O.,
Ser. 2002 C, 5.38%, due 12/1/16 AAA 1,689
1,000 Clark Co. (WA) Vancouver Sch. Dist. Number 37 G.O.,
Ser. 1998, 5.13%, due 12/1/12 A3 1,100
14
PRINCIPAL AMOUNT SECURITY @ RATING VALUE+
(000'S OMITTED) MOODY'S S&P (000'S OMITTED)
$ 1,765 Cumberland Co. (PA) West Shore Area Au. Hosp. Rev. (Holy
Spirit Hosp. of the Sisters of Christian Charity Proj.),
Ser. 2001, 6.05%, due 1/1/19 BBB+ $ 1,915++
2,100 Dallas-Fort Worth (TX) Int'l. Arpt. Fac. Imp. Corp. Rev.,
Ser. 2001 A-1, 6.15%, due 1/1/16 Ba2 2,115++
4,210 DCH Hlth. Care Au. (AL) Hlth. Care Fac. Rev., Ser. 2002,
5.25%, due 6/1/14 A1 A+ 4,609
1,000 Delaware River (PA-NJ) Joint Toll Bridge Comm. Sys. Rev.,
Ser. 2003, 5.25%, due 7/1/18 A2 A- 1,083
1,000 Denton, Tarrant, & Wise Cos. (TX) Northwest Ind. Sch. Dist.
Unlimited Sch. Bldg. & Ref. G.O., Ser. 2002,
5.50%, due 8/15/17 AAA 1,122
2,000 Denver (CO) City & Co. Arpt. Sys. Rev., Ser. 1991 D,
7.75%, due 11/15/13 AAA 2,422
4,495 Dist. of Columbia (Washington, D.C.) Ref. G.O., Ser. 2002 C,
5.25%, due 6/1/13 AAA 4,946
1,750 Ector Co. (TX) Hosp. Dist. Hosp. Rev., Ser. 2002 A,
5.63%, due 4/15/16 A2 A- 1,854
1,745 Ector Co. (TX) Hosp. Dist. Hosp. Rev., Ser. 2002 A,
5.63%, due 4/15/17 A2 A- 1,842
3,000 Fiddlers Creek (FL) Comm. Dev. Dist. Number 2 Spec.
Assessment Rev., Ser. 2003 A, 6.00%, due 5/1/16 BB- 3,063
825 Fort Bend Co. (TX) Ind. Dev. Corp. Ref. PCR (Frito-Lay, Inc.
Proj.), Ser. 1987, 3.00%, due 10/1/11 A1 826++
2,000 Freeborn Co. (MN) Hsg. & Redev. Au. Lease Rev. (Criminal
Justice Ctr. Proj.), Ser. 2002, 5.38%, due 2/1/17 Baa1 2,143
3,000 Golden St. (CA) Tobacco Securitization Corp. Tobacco
Settlement Asset-Backed Rev., Ser. 2003 A-1,
6.25%, due 6/1/33 Baa3 BBB 3,098
5,130 Illinois Ed. Fac. Au. Rev. (Field Museum of Natural
History), Ser. 2002, 4.30%, due 11/1/36 A2 A 5,262++
3,560 Indiana Bond Bank Rev., Ser. 2002 B, 5.25%, due 2/1/18 Baa2 A- 3,898
10,000 Indiana Bond Bank Rev. (St. Revolving Fund Prog.),
Ser. 2001 A, 5.38%, due 2/1/17 AAA 11,158
2,050 Indiana St. Hlth. Fac. Fin. Au. Rev. (Hlth. Sys. Sisters of
St. Francis), Ser. 2001, 5.35%, due 11/1/15 Aa3 A 2,195++
1,070 Ingham & Clinton Cos. (MI) East Lansing Bldg. Au. Ref. G.O.,
Ser. 1999, 5.25%, due 10/1/16 AA 1,156
3,000 Iowa Tobacco Settlement Au. Tobacco Settlement Asset-
Backed Rev., Ser. 2001 B, 5.30%, due 6/1/25 Baa3 BBB 2,840
2,000 Jasper (IN) Hosp. Au. Hosp. Fac. Ref. Rev. (Mem. Hosp. & Hlth.
Care Ctr. Proj.), Ser. 2002, 5.50%, due 11/1/17 AA 2,193++
1,050 Kent Co. (MI) Forest Hills Pub. Sch. Unlimited G.O., Ser. 2000,
5.25%, due 5/1/19 Aa2 1,135
2,000 Lehigh Co. (PA) Gen. Purp. Au. Rev. (KidsPeace Oblig. Group),
Ser. 1998, 6.00%, due 11/1/23 Ba2 1,907++
2,000 Lubbock (TX) Hlth. Fac. Dev. Corp. Rev. (St. Joseph Hlth. Sys.),
Ser. 1998, 5.25%, due 7/1/16 Aa3 AA- 2,119++
1,310 Lyons (NY) Comm. Hlth. Initiatives Corp. Fac. Rev., Ser. 2004,
5.50%, due 9/1/14 A2 1,449
1,375 Macomb Co. (MI) New Haven Comm. Sch. Bldg. & Site G.O.,
Ser. 2002, 5.25%, due 5/1/17 Aa1 AA+ 1,514
1,000 Martin Co. (NC) Ind. Fac. & Poll. Ctrl. Fin. Au. Solid Waste
Disp. Rev. (Weyerhaeuser Co. Proj.), Ser. 1994,
6.80%, due 5/1/24 Baa2 BBB 1,010++
See Notes to Schedule of Investments
15
PRINCIPAL AMOUNT SECURITY @ RATING VALUE+
(000'S OMITTED) MOODY'S S&P (000'S OMITTED)
$ 1,000 Maryland St. Hlth. & Higher Ed. Fac. Au. Rev. (Union Hosp.
of Cecil Co.), Ser. 2002, 5.50%, due 7/1/14 A3 $ 1,087++
2,400 Mashantucket (CT) Western Pequot Tribe Spec. Rev., Sub.
Ser. 1997 B, 5.70%, due 9/1/12 Baa3 2,556**
2,450 Massachusetts St. Hlth. & Ed. Fac. Au. Rev. (Caritas Christi
Oblig. Group), Ser. 1999 A, 5.70%, due 7/1/15 BBB 2,542++
2,810 Massachusetts St. Hlth. & Ed. Fac. Au. Rev.
(Milford-Whitinsville Reg. Hosp.), Ser. 1998 C,
5.75%, due 7/15/13 Baa2 BBB 2,920++
5,030 Massachusetts St. Wtr. Poll. Abatement Trust Rev. (MWRA
Prog.), Ser. 2002 A, 5.25%, due 8/1/19 Aaa AAA 5,518
2,775 Massachusetts St. Wtr. Poll. Abatement Trust Unrefunded
Balance Rev. (Pool Prog.), Ser. 2001, 5.25%, due 2/1/16 Aaa AAA 3,006
3,085 Memphis-Shelby Co. (TN) Arpt. Au. Spec. Fac. Ref. Rev.
(Federal Express Corp.), Ser. 2002, 5.05%, due 9/1/12 Baa2 BBB 3,281++
1,750 Miami Beach (FL) Hlth. Fac. Au. Hosp. Ref. Rev. (Mount Sinai
Med. Ctr. Florida Proj.), Ser. 2004, 6.25%, due 11/15/09 Ba2 BB 1,862++
1,500 Michigan St. Bldg. Au. Rev. (Fac. Prog.), Ser. 2001 II,
5.50%, due 10/15/18 Aa1 AA+ 1,659
2,735 Michigan Strategic Fund Solid Waste Disp. Ltd. Oblig. Ref.
Rev. (Waste Mgt. Inc. Proj.), Ser. 2002, 4.20%, due 12/1/12 BBB 2,745++
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 2,257
1,075 Missouri St. Hsg. Dev. Comm. Multi-Family Hsg. Rev.,
Ser. 2001 II, 5.25%, due 12/1/16 AA 1,139
620 Missouri St. Hsg. Dev. Comm. Multi-Family Hsg. Rev.,
Ser. 2001 III, 5.05%, due 12/1/15 AA 654
5,000 Montgomery Co. (PA) Higher Ed. & Hlth. Au. Hosp. Rev.
(Abington Mem. Hosp. Proj.), Ser. 2002 A,
5.00%, due 6/1/19 A 5,144++
3,000 Moraine (OH) Solid Waste Disp. Rev. (General Motors Corp.
Proj.), Ser. 1994, 6.75%, due 7/1/14 A3 BBB 3,154++
2,500 Morehouse Parish (LA) Ref. PCR (Int'l. Paper Co. Proj.),
Ser. 2001 A, 5.25%, due 11/15/13 Baa2 BBB 2,687++
2,000 MuniMae Subordinated Cumulative Perpetual Preferred
Shares, 4.70%, due 6/30/49 Putable 9/30/09 Ba2 1,951**
2,000 Nevada St. Cap. Imp. Ltd. G.O., Ser. 1998 B,
5.13%, due 4/15/17 Aa2 2,128
1,500 New Jersey Econ. Dev. Au. Cigarette Tax Rev., Ser. 2004,
5.63%, due 6/15/19 Baa2 BBB 1,589
6,900 New Jersey Ed. Fac. Au. Rev. (Stevens Institute of
Technology), Ser. 2002 C, 5.25%, due 7/1/17 Baa1 A- 7,386++
4,000 New Jersey Hlth. Care Fac. Fin. Au. Rev. (Somerset Med. Ctr.
Issue), Ser. 2003, 5.50%, due 7/1/18 Baa3 4,184++
3,250 New York City (NY) G.O., Ser. 2002 C, 5.50%, due 8/1/15 A2 3,594
2,580 New York City (NY) IDA Civic Fac. Rev. (Lycee Francais de
New York Proj.), Ser. 2002 A, 5.50%, due 6/1/14 A 2,778++
2,750 New York City (NY) Ind. Dev. Agcy. Liberty Rev. (7 World
Trade Center LLC Proj.), Ser. 2005 A, 6.25%, due 3/1/15 2,818^^
1,000 New York Convention Ctr. Operating Corp. Cert. of
Participation (Yale Bldg. Acquisition Proj.), Ser. 2003,
5.25%, due 6/1/08 BB+ 1,022
3,500 New York St. Dorm. Au. Personal Income Tax Rev., Ser. 2003 A,
5.38%, due 3/15/20 AA 3,973
16
PRINCIPAL AMOUNT SECURITY @ RATING VALUE+
(000'S OMITTED) MOODY'S S&P (000'S OMITTED)
$ 1,000 New York St. Dorm. Au. Rev. (Mount Sinai NYU Hlth. Oblig.
Group), Ser. 2000 C, 6.00%, due 7/1/26 Baa3 $ 1,011++
1,300 New York St. Urban Dev. Corp. Ref. Rev. (Correctional Cap.
Fac.), Ser. 1998, 5.00%, due 1/1/14 A3 AA- 1,377
4,780 North Central (TX) Hlth. Fac. Dev. Corp. Hosp. Ref. Rev.
(Baylor Hlth. Care Sys. Proj.), Ser. 1998,
5.10%, due 5/15/13 Aa3 AA- 5,063++
3,760 Ohio Air Quality Dev. Au. Env. Imp. Ref. Rev. (USX Corp.
Proj.), Ser. 1995, 5.00%, due 11/1/15 Baa1 4,059++
2,085 Palm Beach Co. (FL) Hlth. Fac. Au. Hosp. Ref. Rev. (BRCH
Corp. Oblig. Group), Ser. 2001, 5.00%, due 12/1/12 A+ 2,228++
3,850 Royal Oak (MI) Hosp. Fin. Au. Hosp. Ref. Rev. (William
Beaumont Hosp.), Ser. 1996 I, 6.25%, due 1/1/12 Aa3 AA- 4,459++
6,795 San Antonio (TX) Ind. Sch. Dist. Unlimited Tax G.O.,
Ser. 2001 B, 5.38%, due 8/15/17 Aaa AAA 7,455
1,240 San Antonio (TX) Unrefunded Balance Cert. of Obligation
G.O., Ser. 2002, 5.00%, due 2/1/14 Aa2 AA+ 1,339
740 San Diego (CA) Redev. Agcy. Sub. Parking Rev. (Centre City
Redev. Proj.), Ser. 2003 B, 5.00%, due 9/1/17 Baa2 A- 768
2,000 Sayre (PA) Hlth. Care Fac. Au. Rev. (Guthrie Hlth. Proj.),
Ser. 2002 A, 5.75%, due 12/1/21 A- 2,155++
1,625 Skagit Co. (WA) Pub. Hosp. Dist. Ref. Rev., Ser. 2003,
6.00%, due 12/1/18 Baa3 1,681
2,345 South Carolina Jobs Econ. Dev. Au. Hosp. Ref. Rev.,
(Palmetto Hlth. Alliance), Ser. 2003 A, 6.00%, due 8/1/13 Baa2 BBB 2,605++
2,000 South Carolina Jobs Econ. Dev. Au. Hosp. Ref. Rev.,
(Palmetto Hlth. Alliance), Ser. 2003 A, 6.13%, due 8/1/23 Baa2 BBB 2,173++
155 Spokane Co. (WA) Ltd. Tax G.O., Ser. 1998,
5.10%, due 12/1/17 Aa3 162
2,540 St. Paul (MN) Port Au. Lease Rev. (Office Bldg. at Cedar
Street), Ser. 2002, 5.00%, due 12/1/17 Aa1 2,739
500 Texas Std. Hsg. Corp. Std. Hsg. Rev. (Midwestern St. Univ.
Proj.), Ser. 2002, 5.50%, due 9/1/12 Baa3 514
1,000 Tobacco Settlement Fin. Corp. (LA) Tobacco Settlement
Asset-Backed Rev., Ser. 2001 B, 5.50%, due 5/15/30 Baa3 BBB 985
1,085 Tyler (TX) Hlth. Fac. Dev. Corp. Hosp. Rev. (Mother Frances
Hosp. Reg. Hlth. Care Ctr. Proj.), Ser. 2003,
5.25%, due 7/1/13 Baa1 1,138
3,500 Union Co. (SC) IDR (Federal Paper Board Co., Inc. Proj.),
Ser. 1989, 4.55%, due 11/1/09 Baa2 BBB 3,535++
2,950 Univ. of Texas Board of Regents Fin. Sys. Rev., Ser. 1999 B,
5.38%, due 8/15/18 AAA 3,229
1,900 Univ. of Wisconsin Hosp. & Clinics Au. Hosp. Rev., Ser. 2002
B, 5.50%, due 4/1/12 A1 2,078
1,750 Verrado (AZ) Comm. Fac. Dist. Number 1 G.O., Ser. 2003,
6.15%, due 7/15/17 BB- 1,888
1,000 Virgin Islands Pub. Fin. Au. Refinery Fac. Rev. (Hovensa
Refinery Proj.), Ser. 2003, 6.13%, due 7/1/22 Baa3 BBB- 1,089
1,500 Virgin Islands Pub. Fin. Au. Refinery Fac. Rev. (Hovensa
Refinery Proj.), Ser. 2004, 5.88%, due 7/1/22 Baa3 BBB- 1,612++
3,125 Washington St. Hlth. Care Fac. Au. Rev. (Yakima Valley Mem.
Hosp. Assoc.), Ser. 2002, 5.00%, due 12/1/17 A 3,216++
1,000 Washington St. Var. Purp. G.O., Ser. 1999 A,
4.75%, due 7/1/17 Aa1 AA+ 1,024
See Notes to Schedule of Investments
17
PRINCIPAL AMOUNT SECURITY @ RATING VALUE+
(000'S OMITTED) MOODY'S S&P (000'S OMITTED)
$ 2,000 Westmoreland Co. (PA) IDA Gtd. Rev. (National Waste &
Energy Corp., Valley Landfill Expansion Proj.), Ser. 1993,
5.10%, due 5/1/18 BBB $ 2,077++
2,780 Wisconsin St. Hlth. & Ed. Fac. Au. Rev. (Kenosha Hosp. & Med.
Ctr., Inc. Proj.), Ser. 1999, 5.50%, due 5/15/15 A 2,965++
---------------
247,725
---------------
TAX-EXEMPT VARIABLE RATE DEMAND NOTES--BACKED BY LETTERS OF CREDIT (0.0%)
SOCIETE GENERALE
100 Los Angeles (CA) Reg. Arpt. Imp. Corp. Term. Fac.
Completion Rev. (Los Angeles Int'l. Arpt.), Ser. 1989,
2.97%, VRDN due 5/2/05 VMIG1 A-1+ 100++
---------------
TAX-EXEMPT VARIABLE RATE DEMAND NOTES--BACKED BY INSURANCE (0.1%)
MUNICIPAL BOND INVESTORS ASSURANCE CORP.
200 California Hsg. Fin. Agcy. Home Mtge. Rev., Ser. 2003 U,
2.99%, VRDN due 5/2/05 VMIG1 A-1+ 200
---------------
TAX-EXEMPT VARIABLE RATE DEMAND NOTES--OTHER (0.3%)
400 Valdez (AK) Marine Term. Ref. Rev. (BP Pipelines Inc.
Proj.), Ser. 2003 A, 2.97%, VRDN due 5/2/05 VMIG1 A-1+ 400++
500 Will Co. (IL) Exempt Fac. Ind. Rev. (BP Amoco Chemical Co.
Proj.), Ser. 2002, 3.02%, VRDN due 5/2/05 VMIG1 A-1+ 500++
---------------
900
---------------
TOTAL INVESTMENTS (155.4%) (COST $466,786) 484,776##
Cash, receivables and other assets, less liabilities (2.1%) 6,565
Liquidation Value of Auction Market Preferred Shares [(57.5%)] (179,400)
---------------
TOTAL NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS (100.0%) $ 311,941
---------------
18
SCHEDULE OF INVESTMENTS New York Intermediate Municipal Fund Inc.
PRINCIPAL AMOUNT SECURITY @ RATING VALUE+
(000'S OMITTED) MOODY'S S&P (000'S OMITTED)
TAX-EXEMPT SECURITIES-BACKED BY INSURANCE (34.0%)
AMERICAN CAPITAL ACCESS
$ 1,060 Puerto Rico Ind., Tourist, Ed., Med., & Env. Ctrl. Fac. Rev.,
(Polytechnic Univ. of Puerto Rico Proj.), Ser. 2002 A,
5.25%, due 8/1/16 A $ 1,123++
AMERICAN MUNICIPAL BOND ASSURANCE CORP.
2,000 Metro. Trans. Au. (NY) Ref. Rev., Ser. 2002 A,
5.50%, due 11/15/15 AAA 2,257
2,920 New York City (NY) IDA Civic Fac. Rev. (Packer Collegiate
Institute Proj.), Ser. 2002, 5.00%, due 6/1/22 Aaa AAA 3,085++
960 New York City (NY) Muni. Wtr. Fin. Au. Wtr. & Swr. Sys. Rev.,
Ser. 1992 A, 5.88%, due 6/15/13 Aaa 1,119
2,025 New York City (NY) Trans. Fin. Au. Ref. Rev., Ser. 2002 C,
5.25%, due 8/1/17 AAA 2,211
2,410 New York St. Dorm. Au. Rev. (Rochester Institute of
Technology Proj.), Ser. 2002 A, 5.25%, due 7/1/19 Aaa 2,618++
3,000 Port Authority of NY & NJ Rev., Ser. 2002,
5.50%, due 12/15/12 AAA 3,313
1,535 Ulster Co. (NY) Res. Rec. Agcy. Solid Waste Sys. Ref. Rev.,
Ser. 2002, 5.25%, due 3/1/16 AAA 1,690
FINANCIAL GUARANTY INSURANCE CO.
2,505 Metro. Trans. Au. (NY) Dedicated Tax Fund Rev., Ser. 2001 A,
5.25%, due 11/15/14 AAA 2,765
FINANCIAL SECURITY ASSURANCE INC.
500 Long Island (NY) Pwr. Au. Elec. Sys. Rev., Ser. 1998 A,
5.13%, due 12/1/16 Aaa AAA 533
1,410 New York City (NY) Hlth. & Hosp. Corp. Rev., Ser. 2002 A,
5.50%, due 2/15/13 AAA 1,578
MUNICIPAL BOND INVESTORS ASSURANCE CORP.
2,000 New York St. Dorm. Au. Insured Rev. (Long Island Jewish Med.
Ctr.), Ser. 1998, 5.00%, due 7/1/18 AAA 2,085++
1,600 New York St. Dorm. Au. Insured Rev. (The Culinary Institute
of America), Ser. 1999, 5.38%, due 7/1/15 AAA 1,751++
1,980 New York St. Dorm. Au. Rev. (New York Med. College Proj.),
Ser. 1998, 5.00%, due 7/1/21 Aaa AAA 2,068++
---------------
28,196
---------------
TAX-EXEMPT SECURITIES-OTHER (121.8%)
3,000 Albany (NY) IDA Civic Fac. Rev., (Charitable Leadership
Foundation Ctr. for Med. Science Proj.), Ser. 2002 A,
6.00%, due 7/1/19 Baa3 3,247
800 Brazos (TX) River Au. Ref. PCR (TXU Energy Co. LLC Proj.),
Ser. 2003 A, 6.75%, due 4/1/38 Putable 4/1/13 Baa2 BBB 931++
750 Brazos (TX) River Au. Ref. Rev. (Reliant Energy, Inc. Proj.),
Ser. 1999 B, 7.75%, due 12/1/18 Ba1 BBB- 838++
1,000 Brazos (TX) River Harbor Navigation Dist. of Brazoria Co.
Env. Fac. Rev. (Dow Chemical Co. Proj.), Ser. 2002 A-4,
5.20%, due 5/15/33 Putable 5/15/08 A3 A 1,049++
1,590 Cumberland Co. (PA) West Shore Area Au. Hosp. Rev., (Holy
Spirit Hosp. of the Sisters of Christian Charity Proj.),
Ser. 2001, 5.90%, due 1/1/17 BBB+ 1,722++
400 Dallas-Fort Worth (TX) Int'l. Arpt. Fac. Imp. Corp. Rev.,
Ser. 2004 A-1, 6.15%, due 1/1/16 Baa3 BBB- 403++
1,000 De Kalb Co. (GA) Dev. Au. Ref. PCR (General Motors Corp.
Proj.), Ser. 2002, 6.00%, due 3/15/21 A3 BBB 995++
See Notes to Schedule of Investments
19
PRINCIPAL AMOUNT SECURITY @ RATING VALUE+
(000'S OMITTED) MOODY'S S&P (000'S OMITTED)
$ 1,000 Dutchess Co. (NY) IDA Civic Fac. Ref. Rev. (Marist
College Proj.), Ser. 2003 A, 5.15%, due 7/1/17 Baa1 $ 1,066++
2,000 Dutchess Co. (NY) IDA Ind. Dev. Rev. (IBM Proj.),
Ser. 1999, 5.45%, due 12/1/29 A1 A+ 2,170++
2,000 Long Island Pwr. Au. (NY) Elec. Sys. Gen. Rev.,
Ser. 1998 A, 5.50%, due 12/1/13 Aaa AAA 2,304
1,500 Lyons (NY) Comm. Hlth. Initiatives Corp. Fac. Rev.,
Ser. 2004, 5.50%, due 9/1/14 A2 1,659
500 Miami Beach (FL) Hlth. Fac. Au. Hosp. Ref. Rev.
(Mount Sinai Med. Ctr. of Florida Proj.), Ser. 2004,
6.25%, due 11/15/09 Ba2 BB 532++
980 Monroe Co. (NY) IDA Std. Hsg. Rev., (Collegiate Hsg.
Foundation - Rochester Institute of Technology Proj.),
Ser. 1999 A, 5.25%, due 4/1/19 Baa3 995++
1,000 Monroe Co. (NY) Newpower Corp. Pwr. Fac. Rev.,
Ser. 2003, 5.10%, due 1/1/16 BBB+ 1,047
1,000 Monroe Co. (NY) Pub. Imp. Ref. G.O., Ser. 1996,
6.00%, due 3/1/13 A3 AA- 1,143
1,000 Morehouse Parish (LA) Ref. PCR (Int'l. Paper Co. Proj.),
Ser. 2001 A, 5.25%, due 11/15/13 Baa2 BBB 1,075++
1,000 New York City (NY) G.O., Ser. 1998 J, 5.00%, due 8/1/11 A2 A 1,055
1,000 New York City (NY) G.O., Ser. 2002 A, 5.75%, due 8/1/16 A2 A 1,120
750 New York City (NY) G.O., Ser. 2002 C, 5.50%, due 8/1/15 A2 829
4,000 New York City (NY) Hsg. Dev. Corp. Multi-Family Hsg. Rev.,
Ser. 2002 E-2, 5.05%, due 11/1/23 Aa2 AA 4,126
1,000 New York City (NY) IDA Civic Fac. Rev. (Lycee Francais de
New York Proj.), Ser. 2002 A, 5.50%, due 6/1/15 A 1,069++
1,030 New York City (NY) IDA Civic Fac. Rev. (Lycee Francais de
New York Proj.), Ser. 2002 A, 5.50%, due 6/1/17 A 1,093++
1,000 New York City (NY) IDA Ind. Dev. Rev. (Brooklyn Navy Yard
Cogeneration Partners, L.P. Proj.), Ser. 1997,
6.20%, due 10/1/22 Ba1 BBB- 1,044++
500 New York City (NY) IDA Ind. Dev. Rev. (Harlem Auto Mall
Proj.), Ser. 2004, 5.13%, due 12/30/23 Baa1 BBB 446++
750 New York City (NY) Ind. Dev. Agcy. Liberty Rev. (7 World
Trade Center LLC Proj.), Ser. 2005 A, 6.25%, due 3/1/15 769^^
4,000 New York City (NY) Muni. Wtr. Fin. Au. Wtr. & Swr. Sys.
Rev., Ser. 2002 D, 5.25%, due 6/15/15 Aa2 AA 4,392
3,000 New York City (NY) Trans. Fin. Au. Ref. Rev., Ser. 2002 B,
5.25%, due 2/1/29 Aa2 3,258
800 New York Convention Ctr. Operating Corp. Cert. of
Participation (Yale Bldg. Acquisition Proj.), Ser. 2003,
5.25%, due 6/1/08 Aa1 817
2,000 New York St. Dorm. Au. Court Fac. Lease Rev. (New York City
Issue), Ser. 2003 A, 5.50%, due 5/15/17 A3 A 2,214
1,675 New York St. Dorm. Au. Insured Rev. (Long Island Univ.),
Ser. 2003 A, 5.25%, due 9/1/15 AA 1,795++
3,000 New York St. Dorm. Au. Ref. Rev. (North Gen. Hosp. Proj.),
Ser. 2003, 5.75%, due 2/15/17 AA- 3,395++
1,125 New York St. Dorm. Au. Rev. (City Univ. Sys. Proj.), Ser. 1995 A,
5.63%, due 7/1/16 A3 AA- 1,299
1,010 New York St. Dorm. Au. Rev. (Columbia Univ. Proj.), Ser. 2001 A,
5.25%, due 7/1/16 AAA 1,118++
2,985 New York St. Dorm. Au. Rev. (Lenox Hill Hosp. Oblig. Group
Proj.), Ser. 2001, 5.75%, due 7/1/14 A3 3,247++
20
PRINCIPAL AMOUNT SECURITY @ RATING VALUE+
(000'S OMITTED) MOODY'S S&P (000'S OMITTED)
$ 2,000 New York St. Dorm. Au. Rev. (Lenox Hill Hosp. Oblig. Group
Proj.), Ser. 2001, 5.75%, due 7/1/16 A3 A- $ 2,176++
2,500 New York St. Dorm. Au. Rev. (Mount Sinai NYU Hlth. Oblig.
Group), Ser. 2000 B, 6.25%, due 7/1/22 Baa3 2,527++
525 New York St. Dorm. Au. Rev. (New York Methodist Hosp.),
Ser. 2004, 5.25%, due 7/1/18 A3 567
500 New York St. Dorm. Au. Rev. (North Shore-Long Island
Jewish Oblig. Group), Ser. 2003, 5.00%, due 5/1/18 A3 523++
2,855 New York St. Dorm. Au. Rev. (Rivington House Hlth. Care
Fac.), Ser. 2002, 5.25%, due 11/1/15 Aa1 3,099++
3,000 New York St. Dorm. Au. Rev. (SS Joachim & Anne Residence
Proj.), Ser. 2002, 4.60%, due 7/1/16 Aa3 3,040
250 New York St. Dorm. Au. Secured Hosp. Ref. Rev. (Brookdale
Hosp. Med. Ctr.), Ser. 1998 J, 5.20%, due 2/15/16 A3 AA- 262++
5,500 New York St. Dorm. Au. St. Personal Income Tax Rev., Ser. 2003 A,
5.38%, due 3/15/17 AA 6,244
500 New York St. Dorm. Au. Third Gen. Resolution Rev. (St. Univ.
Ed. Fac. Issue Proj.), Ser. 2002 B, 5.25%, due 11/15/23 A3 AA- 549
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+ 5,013++
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 1,020
2,000 New York St. Mtge. Agcy. Homeowner Mtge. Rev.,
Ser. 1997-67, 5.70%, due 10/1/17 Aa1 2,078
2,000 New York St. Pwr. Au. Rev., Ser. 2002 A,
5.25%, due 11/15/16 Aa2 AA- 2,209
500 New York St. Urban Dev. Corp. Correctional & Youth Fac. Svc.
Rev., Ser. 2002 C, 4.00%, due 1/1/20 AA- 512
1,325 New York St. Urban Dev. Corp. Proj. Ref. Rev. (Ctr. for Ind.
Innovation), Ser. 1995, 6.25%, due 1/1/09 A3 AA- 1,463
2,000 Niagara Co. (NY) IDA Civic Fac. Rev. (Niagara Univ. Proj.),
Ser. 2001 A, 5.50%, due 11/1/16 AA 2,194++
2,500 Niagara Co. (NY) IDA Solid Waste Disp. Fac. Ref. Rev.
(American Ref.-Fuel Co. of Niagara), Ser. 2001 C,
5.63%, due 11/15/24 Baa1 BBB 2,680++
940 Puerto Rico Children's Trust Tobacco Settlement Asset-
Backed Rev., Ser. 2002, 5.38%, due 5/15/33 Baa3 BBB 947
1,000 Santa Rosa (CA) Rancheria Tachi Yokut Tribe Enterprise Rev.,
Ser. 2003, 6.13%, due 3/1/13 BBB 1,020
1,000 Tobacco Settlement Fin. Corp. (LA) Tobacco Settlement
Asset-Backed Rev., Ser. 2001 B, 5.50%, due 5/15/30 Baa3 BBB 985
3,000 Triborough Bridge & Tunnel Au. (NY) Gen. Purp. Ref. Rev.,
Ser. 2002 B, 5.25%, due 11/15/18 Aa3 AA- 3,285
500 United Nations (NY) Dev. Corp. Sr. Lien Ref. Rev., Ser. 2004 A,
5.25%, due 7/1/17 A3 521
500 Verrado (AZ) Comm. Fac. Dist. Number 1 G.O., Ser. 2003,
6.15%, due 7/15/17 BB- 539
250 Virgin Islands Pub. Fin. Au. Refinery Fac. Rev. (Hovensa
Refinery Proj.), Ser. 2003, 6.13%, due 7/1/22 Baa3 BBB- 272
See Notes to Schedule of Investments
21
PRINCIPAL AMOUNT SECURITY @ RATING VALUE+
(000'S OMITTED) MOODY'S S&P (000'S OMITTED)
$ 750 Virgin Islands Pub. Fin. Au. Rev. (Sub. Lien/Cap. Proj.),
Ser. 1998 E, 6.00%, due 10/1/22 BBB $ 776
1,000 Westchester Co. (NY) IDA Continuing Care Retirement
Comm. Rev. (Kendal on Hudson Proj.), Ser. 2003 B,
5.70%, due 1/1/34 BB 1,028++
1,000 Yonkers (NY) IDA Civic Fac. Rev. (Comm. Dev. Properties -
Yonkers, Inc.), Ser. 2001 A, 6.25%, due 2/1/16 Baa3 BBB- 1,097++
---------------
100,888
---------------
TAX-EXEMPT VARIABLE RATE DEMAND NOTES--BACKED BY LETTERS OF CREDIT (0.1%)
STATE STREET BANK
100 New York City (NY) G.O., Sub. Ser. 1993 E-4,
3.03%, VRDN due 5/2/05 VMIG1 A1+ 100
---------------
TAX-EXEMPT VARIABLE RATE DEMAND NOTES--OTHER (0.2%)
200 New York St. Env. Fac. Corp. Sewage & Solid Waste Disp.
Rev. (General Elec. Co. Proj.), Ser. 1997 A,
3.04%, VRDN due 5/2/05 P1 A1+ 200++
---------------
TOTAL INVESTMENTS (156.1%) (COST $125,319) 129,384##
Cash, receivables and other assets, less liabilities (2.1%) 1,747
Liquidation Value of Auction Market Preferred Shares [(58.2%)] (48,250)
---------------
TOTAL NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS (100.0%) $ 82,881
---------------
22
+ 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", 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 requiring daily quotations, bid prices
are obtained from principal market makers in those securities or, if
quotations are not available, by a method the Funds' Board of Directors
believes accurately reflects fair value. Numerous factors may be considered
when determining the fair value of a security, including available analyst,
media or other reports, trading in futures or ADRs and whether the issuer
of the security being fair valued has other securities outstanding.
Short-term debt securities with less than 60 days until maturity may be
valued at cost which, when combined with interest earned, approximates
market value.
## At April 30, 2005, selected Fund information on a U.S. Federal income tax
basis was as follows:
GROSS GROSS NET
(000'S OMITTED) UNREALIZED UNREALIZED UNREALIZED
NEUBERGER BERMAN COST APPRECIATION DEPRECIATION APPRECIATION
CALIFORNIA $ 153,579 $ 5,694 $ 8 $ 5,686
INTERMEDIATE 466,786 18,247 257 17,990
NEW YORK 125,319 4,130 65 4,065
@ 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%, 74%, and 56% of the municipal securities held by
California, Intermediate, and New York, respectively, have credit
enhancement features backing them, which the Funds may rely on, such as
letters of credit, insurance, or guarantees. Without these credit
enhancement features the securities may or may not meet the quality
standards of the Funds. Pre-refunded bonds are supported by securities in
escrow issued or guaranteed by the U.S. Government, its agencies, or
instrumentalities. The amount escrowed is sufficient to pay the periodic
interest due and the principal of these bonds. Putable bonds give the Funds
the right to sell back the issue on the date specified.
++ Security is guaranteed by the corporate or non-profit obligor.
** Security exempt from registration under the Securities Act of 1933. These
securities may be resold in transactions exempt from registration, normally
to qualified institutional buyers under Rule 144A and are deemed liquid. At
April 30, 2005, these securities amounted to $4,507,000 or 1.44% of net
assets for Intermediate.
^^ Not rated by a nationally recognized statistical rating organization.
23
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 $ 159,265 $ 484,776 $ 129,384
Cash 27 29 61
Interest receivable 2,467 8,061 2,106
Prepaid expenses and other assets 95 144 80
-----------------------------------------------------------------------------------------------------------------------------------
TOTAL ASSETS 161,854 493,010 131,631
-----------------------------------------------------------------------------------------------------------------------------------
LIABILITIES
Dividends payable--preferred shares 71 103 58
Dividends payable--common shares 424 1,372 362
Payable to administrator (Note B) 38 116 31
Accrued expenses and other payables 49 78 49
-----------------------------------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES 582 1,669 500
-----------------------------------------------------------------------------------------------------------------------------------
AUCTION MARKET PREFERRED SHARES SERIES A & B AT LIQUIDATION VALUE
3,000, 8,000 and 3,000 shares authorized; 2,360, 7,176 and 1,930 shares
issued and outstanding for California, Intermediate and New York,
respectively; $.0001 par value; $25,000 liquidation value per
share (Note A) 59,000 179,400 48,250
-----------------------------------------------------------------------------------------------------------------------------------
NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS AT VALUE $ 102,272 $ 311,941 $ 82,881
-----------------------------------------------------------------------------------------------------------------------------------
NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS CONSIST OF:
Paid-in capital--common shares $ 96,347 $ 293,853 $ 79,063
Undistributed net investment income (loss) 583 1,192 333
Accumulated net realized gains (losses) on investments (344) (1,094) (580)
Net unrealized appreciation (depreciation) in value of investments 5,686 17,990 4,065
-----------------------------------------------------------------------------------------------------------------------------------
NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS AT VALUE $ 102,272 $ 311,941 $ 82,881
-----------------------------------------------------------------------------------------------------------------------------------
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 $ 15.06 $ 15.07 $ 14.87
-----------------------------------------------------------------------------------------------------------------------------------
*COST OF INVESTMENTS $ 153,579 $ 466,786 $ 125,319
-----------------------------------------------------------------------------------------------------------------------------------
See Notes to Financial Statements
24
NEUBERGER BERMAN FOR THE SIX MONTHS ENDED APRIL 30, 2005 (UNAUDITED)
STATEMENTS OF OPERATIONS
CALIFORNIA INTERMEDIATE NEW YORK
NEUBERGER BERMAN INTERMEDIATE MUNICIPAL CLOSED-END FUNDS INTERMEDIATE MUNICIPAL INTERMEDIATE
(000'S OMITTED) MUNICIPAL FUND FUND MUNICIPAL FUND
INVESTMENT INCOME
INCOME:
Interest income (Note A) $ 3,588 $ 11,078 $ 3,024
-----------------------------------------------------------------------------------------------------------------------------------
EXPENSES:
Investment management fee (Notes A & B) 199 607 162
Administration fee (Note B) 239 729 194
Stock transfer agent fees 17 17 17
Auction agent fees (Note B) 80 231 66
Special rate period expense (Notes A & B) 21 72 17
Audit fees 21 21 21
Basic maintenance expense (Note B) 12 12 12
Custodian fees (Note B) 38 68 33
Insurance expense 2 7 2
Legal fees 17 38 16
Shareholder reports 10 30 9
Stock exchange listing fees 2 6 1
Directors' fees and expenses 12 12 12
Miscellaneous 11 12 11
-----------------------------------------------------------------------------------------------------------------------------------
Total expenses 681 1,862 573
Investment management fee waived (Note B) (199) (607) (162)
-----------------------------------------------------------------------------------------------------------------------------------
Expenses reduced by custodian fee expense offset arrangement (Note B) (1) (1) (1)
-----------------------------------------------------------------------------------------------------------------------------------
Total net expenses 481 1,254 410
-----------------------------------------------------------------------------------------------------------------------------------
Net investment income 3,107 9,824 2,614
-----------------------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS (NOTE A)
Net realized gain (loss) on:
Sales of Investment securities -- (9) (3)
----------------------------------------------------------------------------------------------------------------------------
Change in net unrealized appreciation (depreciation) in value of:
Investment securities (172) (1,149) (274)
----------------------------------------------------------------------------------------------------------------------------
Net gain (loss) on investments (172) (1,158) (277)
DISTRIBUTIONS TO PREFERRED SHAREHOLDERS FROM:
Net investment income (426) (1,306) (352)
----------------------------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS
RESULTING FROM OPERATIONS $ 2,509 $ 7,360 $ 1,985
-----------------------------------------------------------------------------------------------------------------------------------
See Notes to Financial Statements
25
STATEMENTS OF CHANGES IN NET ASSETS
CALIFORNIA INTERMEDIATE MUNICIPAL FUND
--------------------------------------
NEUBERGER BERMAN INTERMEDIATE MUNICIPAL CLOSED-END FUNDS SIX MONTHS
(000'S OMITTED) ENDED YEAR
APRIL 30, ENDED
2005 OCTOBER 31,
(UNAUDITED) 2004
INCREASE (DECREASE) IN NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS:
FROM OPERATIONS:
Net investment income (loss) $ 3,107 $ 6,206
Net realized gain (loss) on investments -- (274)
Change in net unrealized appreciation (depreciation) of investments (172) 4,830
DISTRIBUTIONS TO PREFERRED SHAREHOLDERS FROM:
Net investment income (426) (859)
-----------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets applicable to common
shareholders resulting from operations 2,509 9,903
-----------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO COMMON SHAREHOLDERS FROM:
Net investment income (2,547) (5,094)
-----------------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS (38) 4,809
NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS:
Beginning of period 102,310 97,501
-----------------------------------------------------------------------------------------------------------------
End of period $ 102,272 $ 102,310
-----------------------------------------------------------------------------------------------------------------
Undistributed net investment income (loss) at end of period $ 583 $ 449
-----------------------------------------------------------------------------------------------------------------
See Notes to Financial Statements
26
INTERMEDIATE MUNICIPAL FUND
---------------------------
NEUBERGER BERMAN INTERMEDIATE MUNICIPAL CLOSED-END FUNDS SIX MONTHS
(000'S OMITTED) ENDED YEAR
APRIL 30, ENDED
2005 OCTOBER 31,
(UNAUDITED) 2004
INCREASE (DECREASE) IN NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS:
FROM OPERATIONS:
Net investment income (loss) $ 9,824 $ 19,565
Net realized gain (loss) on investments (9) (328)
Change in net unrealized appreciation (depreciation) of investments (1,149) 13,555
DISTRIBUTIONS TO PREFERRED SHAREHOLDERS FROM:
Net investment income (1,306) (2,590)
-----------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets applicable to common
shareholders resulting from operations 7,360 30,202
-----------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO COMMON SHAREHOLDERS FROM:
Net investment income (8,230) (16,462)
-----------------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS (870) 13,740
NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS:
Beginning of period 312,811 299,071
-----------------------------------------------------------------------------------------------------------------
End of period $ 311,941 $ 312,811
-----------------------------------------------------------------------------------------------------------------
Undistributed net investment income (loss) at end of period $ 1,192 $ 904
-----------------------------------------------------------------------------------------------------------------
NEW YORK INTERMEDIATE MUNICIPAL FUND
------------------------------------
NEUBERGER BERMAN INTERMEDIATE MUNICIPAL CLOSED-END FUNDS SIX MONTHS
(000'S OMITTED) ENDED YEAR
APRIL 30, ENDED
2005 OCTOBER 31,
(UNAUDITED) 2004
INCREASE (DECREASE) IN NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS:
FROM OPERATIONS:
Net investment income (loss) $ 2,614 $ 5,196
Net realized gain (loss) on investments (3) (157)
Change in net unrealized appreciation (depreciation) of investments (274) 2,797
DISTRIBUTIONS TO PREFERRED SHAREHOLDERS FROM:
Net investment income (352) (704)
-----------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets applicable to common
shareholders resulting from operations 1,985 7,132
-----------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO COMMON SHAREHOLDERS FROM:
Net investment income (2,174) (4,348)
-----------------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS (189) 2,784
NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS:
Beginning of period 83,070 80,286
-----------------------------------------------------------------------------------------------------------------
End of period $ 82,881 $ 83,070
-----------------------------------------------------------------------------------------------------------------
Undistributed net investment income (loss) at end of period $ 333 $ 245
-----------------------------------------------------------------------------------------------------------------
27
NOTES TO FINANCIAL STATEMENTS Intermediate Municipal Closed-End Funds
NOTE A--SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:
1 GENERAL: Neuberger Berman California Intermediate Municipal Fund Inc.
("California"), Neuberger Berman Intermediate Municipal Fund Inc.
("Intermediate"), and Neuberger Berman New York Intermediate Municipal Fund
Inc. ("New York") (individually a "Fund", collectively, the "Funds") were
organized as Maryland corporations on July 29, 2002. California and New
York are registered as non-diversified, closed-end management investment
companies and Intermediate is registered as a diversified, closed-end
management investment company under the Investment Company Act of 1940, as
amended. Each Fund's Board of Directors may classify or re-classify any
unissued shares of capital stock into one or more classes of preferred
stock without the approval of shareholders.
The preparation of financial statements in accordance with 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 dividends and capital gain distributions are determined in
accordance with income tax regulations, which may differ from 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, 2004, there were no permanent differences
resulting from different book and tax accounting reclassified at year end.
28
The tax character of distributions paid during the years ended October 31,
2004 and 2003 was as follows:
DISTRIBUTIONS PAID FROM:
TAX-EXEMPT INCOME ORDINARY INCOME TOTAL
2004 2003 2004 2003 2004 2003
CALIFORNIA $ 5,945,965 $ 5,621,479 $ 6,705 $ 23,102 $ 5,952,670 $ 5,644,581
INTERMEDIATE 19,015,689 18,151,315 35,236 71,380 19,050,925 18,222,695
NEW YORK 5,050,381 4,789,367 2,299 14,100 5,052,680 4,803,467
As of October 31, 2004, 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 $ 946,699 $ -- $ -- $ 5,857,106 $ (343,321) $ 6,460,484
INTERMEDIATE 2,494,886 -- -- 19,138,670 (1,085,587) 20,547,969
NEW YORK 667,827 -- -- 4,339,348 (577,111) 4,430,064
The difference between book basis and tax basis 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, 2004, 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:
2011 2012
CALIFORNIA $ 69,587 $ 273,734
INTERMEDIATE 757,224 328,363
NEW YORK 420,475 156,636
5 DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS: Each Fund earns income, net of
expenses, daily on its investments. It is the policy of each Fund to
declare and pay distributions to common shareholders from net investment
income on a monthly basis. Distributions from net realized capital gains,
if any, are normally distributed in December. Income dividends and capital
gain distributions to common shareholders are recorded on the ex-dividend
date. Dividends and distributions to preferred shareholders are accrued and
determined as described in Note A-7.
Subsequent to April 30, 2005, each Fund declared two monthly distributions
to common shareholders payable June 15, 2005 and July 15, 2005, to
shareholders of record on May 26, 2005 and June 27, 2005, respectively,
with ex-dividend dates of May 24, 2005 and June 23, 2005, respectively, as
follows:
DIVIDEND PER SHARE
CALIFORNIA $ 0.06250
INTERMEDIATE 0.06625
NEW YORK 0.06500
29
6 EXPENSE ALLOCATION: Certain expenses are applicable to multiple funds.
Expenses directly attributable to a Fund are charged to that Fund. Expenses
borne by the complex of related investment companies, which includes
open-end and closed-end investment companies for which Management serves as
investment manager, that are not directly attributed to a Fund, are
allocated among the Funds and the other investment companies in the complex
or series thereof, on the basis of relative net assets, except where a more
appropriate allocation of expenses to each investment company in the
complex or series thereof can otherwise be made fairly.
7 REDEEMABLE PREFERRED SHARES: On October 21, 2002, the Funds re-classified
unissued shares of capital stock into several series of Auction Market
Preferred Shares ("AMPS"), as follows:
SERIES A SHARES SERIES B SHARES
CALIFORNIA 1,500 1,500
INTERMEDIATE 4,000 4,000
NEW YORK 1,500 1,500
On December 13, 2002, the Funds issued several series of AMPS, as follows:
SERIES A SHARES SERIES B SHARES
CALIFORNIA 1,180 1,180
INTERMEDIATE 3,588 3,588
NEW YORK 965 965
All shares of each series of AMPS have a liquidation preference of $25,000
per share plus any accumulated unpaid distributions, whether or not earned
or declared by the Fund, but excluding interest thereon ("Liquidation
Value"). Distributions to AMPS shareholders, which are cumulative, are
accrued daily. It is the policy of each Fund to pay distributions every 7
days for each Fund's AMPS Series A and every 28 days for each Fund's AMPS
Series B, unless in a special rate period.
In the absence of a special rate period, distribution rates are reset every
7 days for each Fund's AMPS Series A, based on the results of an auction.
Each Fund has approved a special rate period for its AMPS Series A of 728
days for California and New York and 546 days for Intermediate. The
effective dates and distribution rates for each Fund are as follows:
EFFECTIVE DATE DIVIDEND RATE
CALIFORNIA October 23, 2003 1.70%
INTERMEDIATE October 24, 2003 1.65%(1)
NEW YORK October 22, 2003 1.70%
(1) Special rate in effect through April 21, 2005. For the period April 22,
2005 through April 30, 2005 distribution rates ranged from 2.85% to
2.90%.
30
In the absence of a special rate period, distribution rates are reset every
28 days for each Fund's AMPS Series B, based on the results of an auction.
Each Fund has approved a special rate period for its AMPS Series B of 546
days for California and Intermediate and 553 days for New York. The
effective dates and distribution rates for each Fund are as follows:
EFFECTIVE DATE DIVIDEND RATE
CALIFORNIA March 11, 2004 1.170%
INTERMEDIATE March 15, 2004 1.185%
NEW YORK March 9, 2004 1.198%
The Funds declared distributions to AMPS shareholders for the period May 1,
2005 to May 31, 2005, for each series of the AMPS as follows:
SERIES A SHARES SERIES B SHARES
CALIFORNIA $ 43,189 $ 29,727
INTERMEDIATE 212,169 91,540
NEW YORK 35,319 24,889
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.
31
NOTE B--MANAGEMENT FEES, ADMINISTRATION FEES, AND OTHER TRANSACTIONS WITH
AFFILIATES:
Each Fund retains Management as its investment manager under a Management
Agreement. For such investment management services, each Fund pays
Management a fee at the annual rate of 0.25% of its average daily Managed
Assets. Managed Assets equal the total assets of the Fund, less liabilities
other than the aggregate indebtedness entered into for purposes of
leverage. For purposes of calculating Managed Assets, the Liquidation Value
of any AMPS outstanding is not considered a liability.
Management has contractually agreed to waive a portion of the management
fees it is entitled to receive from each Fund at the following annual
rates:
YEAR ENDED % OF AVERAGE
OCTOBER 31, DAILY MANAGED ASSETS
-----------------------------------------------------------------------
2005 - 2007 0.25%
2008 0.20
2009 0.15
2010 0.10
2011 0.05
Management has not agreed to waive any portion of its fees beyond October
31, 2011.
For the six months ended April 30, 2005, such waived fees amounted to
$199,222, $607,383, and $162,079 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, 2005, the impact of
this arrangement was a reduction of expenses of $514, $531, and $536 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
32
one year, the service fee is paid at the annual rate of 1/4 of 1%; for any
auction preceding a rate period of one year or more, the service fee is
paid at a rate agreed to by each Fund and the broker-dealer.
Each Fund has paid Merrill Lynch a fee equal to 1/8 of 1% in connection
with entering the special rate periods in return for which Merrill Lynch
had agreed to pay dividends on the AMPS that, as a result of the auction,
exceed a specified rate.
In order to satisfy rating agencies' requirements, each Fund is required to
provide each rating agency a report on a monthly basis verifying that each
Fund is maintaining eligible assets having a discounted value equal to or
greater than the Preferred Shares Basic Maintenance Amount, which is a
minimum level set by each rating agency as one of the conditions to
maintain the AAA/Aaa rating on the AMPS. "Discounted value" refers to the
fact that the rating agencies require the Fund, in performing this
calculation, to discount portfolio securities below their face value, at
rates determined by the rating agencies. Each Fund pays a fee to State
Street for the preparation of this report.
NOTE C--SECURITIES TRANSACTIONS:
For the six months ended April 30, 2005, there were purchase and sale
transactions (excluding short-term securities) as follows:
(000'S OMITTED) PURCHASES SALES
CALIFORNIA $ 500 $ 5
INTERMEDIATE 2,750 210
NEW YORK 750 549
NOTE D--CAPITAL:
At April 30, 2005, the common shares outstanding and the common shares of
each Fund owned by Neuberger were as follows:
COMMON SHARES COMMON SHARES
OUTSTANDING OWNED BY NEUBERGER
CALIFORNIA 6,791,981 6,981
INTERMEDIATE 20,705,124 6,981
NEW YORK 5,574,550 6,981
Transactions in common shares for the six months ended April 30, 2005 and
for the year ended October 31, 2004, were as follows:
COMMON SHARES ISSUED IN CONNECTION WITH:
REINVESTMENT OF
DIVIDENDS AND NET INCREASE IN COMMON
DISTRIBUTIONS SHARES OUTSTANDING
2005 2004 2005 2004
CALIFORNIA -- -- -- --
INTERMEDIATE -- -- -- --
NEW YORK -- -- -- --
33
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.
34
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 ENDED
APRIL 30, YEAR ENDED OCTOBER 31,
---------------- ------------------------
2005 2004 2003
(UNAUDITED)
COMMON SHARE NET ASSET VALUE, BEGINNING OF PERIOD $ 15.06 $ 14.36 $ 14.31
----------- ---------- ----------
INCOME FROM INVESTMENT OPERATIONS APPLICABLE TO COMMON SHAREHOLDERS:
NET INVESTMENT INCOME (LOSS) .46 .91 .85
NET GAINS OR LOSSES ON SECURITIES
(BOTH REALIZED AND UNREALIZED) (.02) .67 .14
COMMON SHARE EQUIVALENT OF DISTRIBUTIONS TO PREFERRED SHAREHOLDERS FROM:
NET INVESTMENT INCOME (.06) (.13) (.08)
----------- ---------- ----------
TOTAL FROM INVESTMENT OPERATIONS APPLICABLE TO COMMON SHAREHOLDERS .38 1.45 .91
----------- ---------- ----------
LESS DISTRIBUTIONS TO COMMON SHAREHOLDERS FROM:
NET INVESTMENT INCOME (.38) (.75) (.75)
----------- ---------- ----------
LESS CAPITAL CHARGES:
ISSUANCE OF COMMON SHARES -- -- --
ISSUANCE OF PREFERRED SHARES -- -- (.11)
----------- ---------- ----------
TOTAL CAPITAL CHARGES -- -- (.11)
----------- ---------- ----------
COMMON SHARE NET ASSET VALUE, END OF PERIOD $ 15.06 $ 15.06 $ 14.36
----------- ---------- ----------
COMMON SHARE MARKET VALUE, END OF PERIOD $ 13.23 $ 13.47 $ 13.00
----------- ---------- ----------
TOTAL RETURN, COMMON SHARE NET ASSET VALUE+ +2.83%** +10.97% +6.02%
TOTAL RETURN, COMMON SHARE MARKET VALUE+ +1.00%** +9.63% -8.44%
RATIOS/SUPPLEMENTAL DATA++
NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS, END OF PERIOD (IN MILLIONS) $ 102.3 $ 102.3 $ 97.5
PREFERRED STOCK, AT LIQUIDATION VALUE ($25,000
PER SHARE LIQUIDATION PREFERENCE) (IN MILLIONS) $ 59.0 $ 59.0 $ 59.0
RATIO OF GROSS EXPENSES TO AVERAGE NET ASSETS APPLICABLE TO
COMMON SHAREHOLDERS# .95%* .96% .88%
RATIO OF NET EXPENSES TO AVERAGE NET ASSETS APPLICABLE TO
COMMON SHAREHOLDERS## .95%* .96% .88%
RATIO OF NET INVESTMENT INCOME (LOSS) EXCLUDING PREFERRED
STOCK DIVIDENDS TO AVERAGE NET ASSETS APPLICABLE TO
COMMON SHAREHOLDERS 6.16%* 6.24% 5.88%
RATIO OF PREFERRED STOCK DIVIDENDS TO AVERAGE
NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS .84%* .86% .56%
RATIO OF NET INVESTMENT INCOME (LOSS) INCLUDING PREFERRED
STOCK DIVIDENDS TO AVERAGE NET ASSETS APPLICABLE TO
COMMON SHAREHOLDERS 5.32%* 5.38% 5.32%
PORTFOLIO TURNOVER RATE 0% 3% 9%
ASSET COVERAGE PER SHARE OF PREFERRED STOCK, END OF PERIOD@ $ 68,366 $ 68,383 $ 66,332
PERIOD FROM
SEPTEMBER 27, 2002^
TO OCTOBER 31,
-------------------
2002
COMMON SHARE NET ASSET VALUE, BEGINNING OF PERIOD $ 14.32
-----------
INCOME FROM INVESTMENT OPERATIONS APPLICABLE TO COMMON SHAREHOLDERS:
NET INVESTMENT INCOME (LOSS) .02
NET GAINS OR LOSSES ON SECURITIES
(BOTH REALIZED AND UNREALIZED) --
COMMON SHARE EQUIVALENT OF DISTRIBUTIONS TO PREFERRED SHAREHOLDERS FROM:
NET INVESTMENT INCOME --
-----------
TOTAL FROM INVESTMENT OPERATIONS APPLICABLE TO COMMON SHAREHOLDERS .02
-----------
LESS DISTRIBUTIONS TO COMMON SHAREHOLDERS FROM:
NET INVESTMENT INCOME --
-----------
LESS CAPITAL CHARGES:
ISSUANCE OF COMMON SHARES (.03)
ISSUANCE OF PREFERRED SHARES --
-----------
TOTAL CAPITAL CHARGES (.03)
-----------
COMMON SHARE NET ASSET VALUE, END OF PERIOD $ 14.31
-----------
COMMON SHARE MARKET VALUE, END OF PERIOD $ 15.00
-----------
TOTAL RETURN, COMMON SHARE NET ASSET VALUE+ -0.10%**
TOTAL RETURN, COMMON SHARE MARKET VALUE+ +0.00%**
RATIOS/SUPPLEMENTAL DATA++
NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS, END OF PERIOD (IN MILLIONS) $ 94.5
PREFERRED STOCK, AT LIQUIDATION VALUE ($25,000
PER SHARE LIQUIDATION PREFERENCE) (IN MILLIONS) $ --
RATIO OF GROSS EXPENSES TO AVERAGE NET ASSETS APPLICABLE TO
COMMON SHAREHOLDERS# .84%*
RATIO OF NET EXPENSES TO AVERAGE NET ASSETS APPLICABLE TO
COMMON SHAREHOLDERS## .83%*
RATIO OF NET INVESTMENT INCOME (LOSS) EXCLUDING PREFERRED
STOCK DIVIDENDS TO AVERAGE NET ASSETS APPLICABLE TO
COMMON SHAREHOLDERS 1.10%*
RATIO OF PREFERRED STOCK DIVIDENDS TO AVERAGE
NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS --%
RATIO OF NET INVESTMENT INCOME (LOSS) INCLUDING PREFERRED
STOCK DIVIDENDS TO AVERAGE NET ASSETS APPLICABLE TO
COMMON SHAREHOLDERS 1.10%*
PORTFOLIO TURNOVER RATE 0%
ASSET COVERAGE PER SHARE OF PREFERRED STOCK, END OF PERIOD@ $ --
See Notes to Financial Highlights
35
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 ENDED
APRIL 30, YEAR ENDED OCTOBER 31,
---------------- ------------------------
2005 2004 2003
UNAUDITED)
COMMON SHARE NET ASSET VALUE, BEGINNING OF PERIOD $ 15.11 $ 14.44 $ 14.30
----------- ---------- ----------
INCOME FROM INVESTMENT OPERATIONS APPLICABLE TO COMMON SHAREHOLDERS:
NET INVESTMENT INCOME (LOSS) .47 .94 .88
NET GAINS OR LOSSES ON SECURITIES
(BOTH REALIZED AND UNREALIZED) (.05) .65 .25
COMMON SHARE EQUIVALENT OF DISTRIBUTIONS TO PREFERRED SHAREHOLDERS FROM:
NET INVESTMENT INCOME (.06) (.12) (.09)
----------- ---------- ----------
TOTAL FROM INVESTMENT OPERATIONS APPLICABLE TO COMMON SHAREHOLDERS .36 1.47 1.04
----------- ---------- ----------
LESS DISTRIBUTIONS TO COMMON SHAREHOLDERS FROM:
NET INVESTMENT INCOME (.40) (.80) (.80)
----------- ---------- ----------
LESS CAPITAL CHARGES:
ISSUANCE OF COMMON SHARES -- -- --
ISSUANCE OF PREFERRED SHARES -- -- (.10)
----------- ---------- ----------
TOTAL CAPITAL CHARGES -- -- (.10)
----------- ---------- ----------
COMMON SHARE NET ASSET VALUE, END OF PERIOD $ 15.07 $ 15.11 $ 14.44
----------- ---------- ----------
COMMON SHARE MARKET VALUE, END OF PERIOD $ 13.46 $ 13.70 $ 13.33
----------- ---------- ----------
TOTAL RETURN, COMMON SHARE NET ASSET VALUE+ +2.70%** +10.91% +6.88%
TOTAL RETURN, COMMON SHARE MARKET VALUE+ +1.17%** +8.94% -5.94%
RATIOS/SUPPLEMENTAL DATA++
NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS, END OF PERIOD (IN MILLIONS) $ 311.9 $ 312.8 $ 299.1
PREFERRED STOCK, AT LIQUIDATION VALUE ($25,000
PER SHARE LIQUIDATION PREFERENCE) (IN MILLIONS) $ 179.4 $ 179.4 $ 179.4
RATIO OF GROSS EXPENSES TO AVERAGE NET ASSETS APPLICABLE TO
COMMON SHAREHOLDERS# .81%* .82% .74%
RATIO OF NET EXPENSES TO AVERAGE NET ASSETS APPLICABLE TO
COMMON SHAREHOLDERS## .81%* .82% .74%
RATIO OF NET INVESTMENT INCOME (LOSS) EXCLUDING PREFERRED
STOCK DIVIDENDS TO AVERAGE NET ASSETS APPLICABLE TO
COMMON SHAREHOLDERS 6.38%* 6.40% 6.08%
RATIO OF PREFERRED STOCK DIVIDENDS TO AVERAGE
NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS .85%* .85% .59%
RATIO OF NET INVESTMENT INCOME (LOSS) INCLUDING PREFERRED
STOCK DIVIDENDS TO AVERAGE NET ASSETS APPLICABLE TO
COMMON SHAREHOLDERS 5.53%* 5.55% 5.49%
PORTFOLIO TURNOVER RATE 0% 3% 10%
ASSET COVERAGE PER SHARE OF PREFERRED STOCK, END OF PERIOD@ $ 68,484 $ 68,622 $ 66,694
PERIOD FROM
SEPTEMBER 27, 2002^
TO OCTOBER 31,
-------------------
2002
COMMON SHARE NET ASSET VALUE, BEGINNING OF PERIOD $ 14.32
-----------
INCOME FROM INVESTMENT OPERATIONS APPLICABLE TO COMMON SHAREHOLDERS:
NET INVESTMENT INCOME (LOSS) .01
NET GAINS OR LOSSES ON SECURITIES
(BOTH REALIZED AND UNREALIZED) --
COMMON SHARE EQUIVALENT OF DISTRIBUTIONS TO PREFERRED SHAREHOLDERS FROM:
NET INVESTMENT INCOME --
-----------
TOTAL FROM INVESTMENT OPERATIONS APPLICABLE TO COMMON SHAREHOLDERS .01
-----------
LESS DISTRIBUTIONS TO COMMON SHAREHOLDERS FROM:
NET INVESTMENT INCOME --
-----------
LESS CAPITAL CHARGES:
ISSUANCE OF COMMON SHARES (.03)
ISSUANCE OF PREFERRED SHARES --
-----------
TOTAL CAPITAL CHARGES (.03)
-----------
COMMON SHARE NET ASSET VALUE, END OF PERIOD $ 14.30
-----------
COMMON SHARE MARKET VALUE, END OF PERIOD $ 15.00
-----------
TOTAL RETURN, COMMON SHARE NET ASSET VALUE+ -0.17%**
TOTAL RETURN, COMMON SHARE MARKET VALUE+ +0.00%**
RATIOS/SUPPLEMENTAL DATA++
NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS, END OF PERIOD (IN MILLIONS) $ 293.3
PREFERRED STOCK, AT LIQUIDATION VALUE ($25,000
PER SHARE LIQUIDATION PREFERENCE) (IN MILLIONS) $ --
RATIO OF GROSS EXPENSES TO AVERAGE NET ASSETS APPLICABLE TO
COMMON SHAREHOLDERS# .51%*
RATIO OF NET EXPENSES TO AVERAGE NET ASSETS APPLICABLE TO
COMMON SHAREHOLDERS## .51%*
RATIO OF NET INVESTMENT INCOME (LOSS) EXCLUDING PREFERRED
STOCK DIVIDENDS TO AVERAGE NET ASSETS APPLICABLE TO
COMMON SHAREHOLDERS 1.62%*
RATIO OF PREFERRED STOCK DIVIDENDS TO AVERAGE
NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS --%
RATIO OF NET INVESTMENT INCOME (LOSS) INCLUDING PREFERRED
STOCK DIVIDENDS TO AVERAGE NET ASSETS APPLICABLE TO
COMMON SHAREHOLDERS 1.62%*
PORTFOLIO TURNOVER RATE 0%
ASSET COVERAGE PER SHARE OF PREFERRED STOCK, END OF PERIOD@ $ --
See Notes to Financial Highlights
36
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.~
SIX MONTHS ENDED
APRIL 30, YEAR ENDED OCTOBER 31,
---------------- ------------------------
2005 2004 2003
UNAUDITED)
COMMON SHARE NET ASSET VALUE, BEGINNING OF PERIOD $ 14.90 $ 14.40 $ 14.32
--------- ---------- ----------
INCOME FROM INVESTMENT OPERATIONS APPLICABLE TO COMMON SHAREHOLDERS:
NET INVESTMENT INCOME (LOSS) .47 .93 .86
NET GAINS OR LOSSES ON SECURITIES
(BOTH REALIZED AND UNREALIZED) (.05) .48 .19
COMMON SHARE EQUIVALENT OF DISTRIBUTIONS TO PREFERRED SHAREHOLDERS FROM:
NET INVESTMENT INCOME (.06) (.13) (.08)
--------- ---------- ----------
TOTAL FROM INVESTMENT OPERATIONS APPLICABLE TO COMMON SHAREHOLDERS .36 1.28 .97
--------- ---------- ----------
LESS DISTRIBUTIONS TO COMMON SHAREHOLDERS FROM:
NET INVESTMENT INCOME (.39) (.78) (.78)
--------- ---------- ----------
LESS CAPITAL CHARGES:
ISSUANCE OF COMMON SHARES -- -- --
ISSUANCE OF PREFERRED SHARES -- -- (.11)
--------- ---------- ----------
TOTAL CAPITAL CHARGES -- -- (.11)
--------- ---------- ----------
COMMON SHARE NET ASSET VALUE, END OF PERIOD $ 14.87 $ 14.90 $ 14.40
--------- ---------- ----------
COMMON SHARE MARKET VALUE, END OF PERIOD $ 13.08 $ 13.32 $ 13.27
--------- ---------- ----------
TOTAL RETURN, COMMON SHARE NET ASSET VALUE+ +2.78%** +9.67% +6.36%
TOTAL RETURN, COMMON SHARE MARKET VALUE+ +1.13%** +6.39% -6.43%
RATIOS/SUPPLEMENTAL DATA++
NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS, END OF PERIOD (IN MILLIONS) $ 82.9 $ 83.1 $ 80.3
PREFERRED STOCK, AT LIQUIDATION VALUE ($25,000
PER SHARE LIQUIDATION PREFERENCE) (IN MILLIONS) $ 48.3 $ 48.3 $ 48.3
RATIO OF GROSS EXPENSES TO AVERAGE NET ASSETS APPLICABLE TO
COMMON SHAREHOLDERS# 1.00%* 1.00% .92%
RATIO OF NET EXPENSES TO AVERAGE NET ASSETS APPLICABLE TO
COMMON SHAREHOLDERS## 1.00%* .99% .92%
RATIO OF NET INVESTMENT INCOME (LOSS) EXCLUDING PREFERRED
STOCK DIVIDENDS TO AVERAGE NET ASSETS APPLICABLE TO
COMMON SHAREHOLDERS 6.39%* 6.37% 6.02%
RATIO OF PREFERRED STOCK DIVIDENDS TO AVERAGE
NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS .86%* .86% .57%
RATIO OF NET INVESTMENT INCOME (LOSS) INCLUDING PREFERRED
STOCK DIVIDENDS TO AVERAGE NET ASSETS APPLICABLE TO
COMMON SHAREHOLDERS 5.53%* 5.51% 5.45%
PORTFOLIO TURNOVER RATE 0% 5% 11%
ASSET COVERAGE PER SHARE OF PREFERRED STOCK, END OF PERIOD@ $ 67,974 $ 68,073 $ 66,617
PERIOD FROM
SEPTEMBER 27, 2002^
TO OCTOBER 31,
-------------------
2002
COMMON SHARE NET ASSET VALUE, BEGINNING OF PERIOD $ 14.32
-----------
INCOME FROM INVESTMENT OPERATIONS APPLICABLE TO COMMON SHAREHOLDERS:
NET INVESTMENT INCOME (LOSS) .03
NET GAINS OR LOSSES ON SECURITIES
(BOTH REALIZED AND UNREALIZED) --
COMMON SHARE EQUIVALENT OF DISTRIBUTIONS TO PREFERRED SHAREHOLDERS FROM:
NET INVESTMENT INCOME --
-----------
TOTAL FROM INVESTMENT OPERATIONS APPLICABLE TO COMMON SHAREHOLDERS .03
-----------
LESS DISTRIBUTIONS TO COMMON SHAREHOLDERS FROM:
NET INVESTMENT INCOME --
-----------
LESS CAPITAL CHARGES:
ISSUANCE OF COMMON SHARES (.03)
ISSUANCE OF PREFERRED SHARES --
-----------
TOTAL CAPITAL CHARGES (.03)
-----------
COMMON SHARE NET ASSET VALUE, END OF PERIOD $ 14.32
-----------
COMMON SHARE MARKET VALUE, END OF PERIOD $ 15.00
-----------
TOTAL RETURN, COMMON SHARE NET ASSET VALUE+ -0.03%**
TOTAL RETURN, COMMON SHARE MARKET VALUE+ +0.00%**
RATIOS/SUPPLEMENTAL DATA++
NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS, END OF PERIOD (IN MILLIONS) $ 76.7
PREFERRED STOCK, AT LIQUIDATION VALUE ($25,000
PER SHARE LIQUIDATION PREFERENCE) (IN MILLIONS) $ --
RATIO OF GROSS EXPENSES TO AVERAGE NET ASSETS APPLICABLE TO
COMMON SHAREHOLDERS# .94%*
RATIO OF NET EXPENSES TO AVERAGE NET ASSETS APPLICABLE TO
COMMON SHAREHOLDERS## .93%*
RATIO OF NET INVESTMENT INCOME (LOSS) EXCLUDING PREFERRED
STOCK DIVIDENDS TO AVERAGE NET ASSETS APPLICABLE TO
COMMON SHAREHOLDERS 1.22%*
RATIO OF PREFERRED STOCK DIVIDENDS TO AVERAGE
NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS --%
RATIO OF NET INVESTMENT INCOME (LOSS) INCLUDING PREFERRED
STOCK DIVIDENDS TO AVERAGE NET ASSETS APPLICABLE TO
COMMON SHAREHOLDERS 1.22%*
PORTFOLIO TURNOVER RATE 0%
ASSET COVERAGE PER SHARE OF PREFERRED STOCK, END OF PERIOD@ $ --
See Notes to Financial Highlights
37
NOTES TO FINANCIAL HIGHLIGHTS Intermediate Municipal Closed-End Funds
+ Total return based on per share net asset value reflects the effects of
changes in net asset value on the performance of each Fund during each
fiscal period. Total return based on per share market value assumes the
purchase of common shares at the market price on the first day and sales of
common shares at the market price on the last day of the period indicated.
Dividends and distributions, if any, are assumed to be reinvested at prices
obtained under each Fund's dividend reinvestment plan. Results represent
past performance and do not guarantee future results. Current returns may
be lower or higher than the performance data quoted. For each Fund, total
return would have been lower if Management had not waived the investment
management fee. Performance data current to the most recent month-end are
available at www.nb.com.
# The Fund is required to calculate an expense ratio without taking into
consideration any expense reductions related to expense offset
arrangements.
## After waiver of investment management fee. Had Management not undertaken
such action, the annualized ratios of net expenses to average daily net
assets applicable to common shareholders would have been:
SIX MONTHS ENDED PERIOD ENDED
APRIL 30, YEAR ENDED OCTOBER 31, OCTOBER 31,
2005 2004 2003 2002(1)
CALIFORNIA 1.35% 1.35% 1.26% 1.08%
INTERMEDIATE 1.21% 1.22% 1.13% .76%
NEW YORK 1.40% 1.39% 1.31% 1.18%
(1) Period from September 27, 2002 to October 31, 2002.
^ The date investment operations commenced.
* Annualized.
** Not annualized.
@ Calculated by subtracting the Fund's total liabilities (excluding
accumulated unpaid dividends on AMPS) from the Fund's total assets and
dividing by the number of AMPS outstanding.
++ Expense ratios do not include the effect of dividend payments to holders of
AMPS. Income ratios include income earned on assets attributable to AMPS
outstanding.
~ The per share amounts which are shown for the six months ended April 30,
2005, have been computed based on the average number of shares outstanding.
38
DIVIDEND REINVESTMENT PLAN
The Bank of New York ("Plan Agent") will act as Plan Agent for shareholders who
have not elected in writing to receive dividends and distributions in cash (each
a "Participant"), will open an account for each Participant under the Dividend
Reinvestment Plan ("Plan") in the same name as their then current Shares are
registered, and will put the Plan into effect for each Participant as of the
first record date for a dividend or capital gains distribution.
Whenever the Fund declares a dividend or distribution with respect to the common
stock of the Fund ("Shares"), each Participant will receive such dividends and
distributions in additional Shares, including fractional Shares acquired by the
Plan Agent and credited to each Participant's account. If on the payment date
for a cash dividend or distribution, the net asset value is equal to or less
than the market price per Share plus estimated brokerage commissions, the Plan
Agent shall automatically receive such Shares, including fractions, for each
Participant's account. Except in the circumstances described in the next
paragraph, the number of additional Shares to be credited to each Participant's
account shall be determined by dividing the dollar amount of the dividend or
distribution payable on their Shares by the greater of the net asset value per
Share determined as of the date of purchase or 95% of the then current market
price per Share on the payment date.
Should the net asset value per Share exceed the market price per Share plus
estimated brokerage commissions on the payment date for a cash dividend or
distribution, the Plan Agent or a broker-dealer selected by the Plan Agent shall
endeavor, for a purchase period lasting until the last business day before the
next date on which the Shares trade on an "ex-dividend" basis, but in no event,
except as provided below, more than 30 days after the dividend payment date, to
apply the amount of such dividend or distribution on each Participant's Shares
(less their PRO RATA share of brokerage commissions incurred with respect to the
Plan Agent's open-market purchases in connection with the reinvestment of such
dividend or distribution) to purchase Shares on the open market for each
Participant's account. No such purchases may be made more than 30 days after the
payment date for such dividend except where temporary curtailment or suspension
of purchase is necessary to comply with applicable provisions of federal
securities laws. If, at the close of business on any day during the purchase
period the net asset value per Share equals or is less than the market price per
Share plus estimated brokerage commissions, the Plan Agent will not make any
further open-market purchases in connection with the reinvestment of such
dividend or distribution. If the Plan Agent is unable to invest the full
dividend or distribution amount through open-market purchases during the
purchase period, the Plan Agent shall request that, with respect to the
uninvested portion of such dividend or distribution amount, the Fund issue new
Shares at the close of business on the earlier of the last day of the purchase
period or the first day during the purchase period on which the net asset value
per Share equals or is less than the market price per Share, plus estimated
brokerage commissions, such Shares to be issued in accordance with the terms
specified in the third paragraph hereof. These newly issued Shares will be
valued at the then-current market price per Share at the time such Shares are to
be issued.
For purposes of making the dividend reinvestment purchase comparison under the
Plan, (a) the market price of the Shares on a particular date shall be the last
sales price on the New York Stock Exchange (or if the Shares are not listed on
the New York Stock Exchange, such other exchange on which the Shares are
principally traded) on that date, or, if there is no sale on such Exchange (or
if not so listed, in the over-the-counter market) on that date, then the mean
between the closing bid and asked quotations for such Shares on such Exchange on
such date and (b) the net asset value per Share on a particular date shall be
the net asset value per Share most recently calculated by or on behalf of the
Fund. All dividends, distributions and other payments (whether made in cash or
Shares) shall be made net of any applicable withholding tax.
Open-market purchases provided for above may be made on any securities exchange
where the Fund's Shares are traded, in the over-the-counter market or in
negotiated transactions and may be on such terms as to price, delivery and
otherwise as the Plan Agent shall determine. Each Participant's uninvested funds
held by the Plan Agent will not bear interest, and it is understood that, in any
event, the Plan Agent shall have no liability in connection with any inability
to purchase Shares within 30 days after the initial date of such purchase as
herein provided, or with the timing of any purchases effected. The Plan Agent
shall have no responsibility as to the value of the Shares acquired for each
Participant's account. For the purpose of cash investments, the Plan Agent may
commingle each Participant's funds with those of other shareholders of the Fund
for whom the Plan Agent similarly acts as agent, and the average price
(including brokerage commissions) of all Shares purchased by the Plan Agent as
Plan Agent shall be the price per Share allocable to each Participant in
connection therewith.
39
The Plan Agent may hold each Participant's Shares acquired pursuant to the Plan
together with the Shares of other shareholders of the Fund acquired pursuant to
the Plan in noncertificated form in the Plan Agent's name or that of the Plan
Agent's nominee. The Plan Agent will forward to each Participant any proxy
solicitation material and will vote any Shares so held for each Participant only
in accordance with the instructions set forth on proxies returned by the
participant to the Fund.
The Plan Agent will confirm to each Participant each acquisition made for their
account as soon as practicable but not later than 60 days after the date
thereof. Although each Participant may from time to time have an undivided
fractional interest (computed to three decimal places) in a Share, no
certificates for a fractional Share will be issued. However, dividends and
distributions on fractional Shares will be credited to each Participant's
account. In the event of termination of a Participant's account under the Plan,
the Plan Agent will adjust for any such undivided fractional interest in cash at
the market value of the Shares at the time of termination, less the PRO RATA
expense of any sale required to make such an adjustment.
Any Share dividends or split Shares distributed by the Fund on Shares held by
the Plan Agent for Participants will be credited to their accounts. In the event
that the Fund makes available to its shareholders rights to purchase additional
Shares or other securities, the Shares held for each Participant under the Plan
will be added to other Shares held by the Participant in calculating the number
of rights to be issued to each Participant.
The Plan Agent's service fee for handling capital gains distributions or income
dividends will be paid by the Fund. Participants will be charged their PRO RATA
share of brokerage commissions on all open-market purchases.
Each Participant may terminate their account under the Plan by notifying the
Plan Agent in writing. Such termination will be effective immediately if the
Participant's notice is received by the Plan Agent not less than ten days prior
to any dividend or distribution record date, otherwise such termination will be
effective the first trading day after the payment date for such dividend or
distribution with respect to any subsequent dividend or distribution. The Plan
may be terminated by the Plan Agent or the Fund upon notice in writing mailed to
each Participant at least 30 days prior to any record date for the payment of
any dividend or distribution by the Fund.
These terms and conditions may be amended or supplemented by the Plan Agent or
the Fund at any time or times but, except when necessary or appropriate to
comply with applicable law or the rules or policies of the Securities and
Exchange Commission or any other regulatory authority, only by mailing to each
Participant appropriate written notice at least 30 days prior to the effective
date thereof. The amendment or supplement shall be deemed to be accepted by each
Participant unless, prior to the effective date thereof, the Plan Agent receives
written notice of the termination of their account under the Plan. Any such
amendment may include an appointment by the Plan Agent in its place and stead of
a successor Plan Agent under these terms and conditions, with full power and
authority to perform all or any of the acts to be performed by the Plan Agent
under these terms and conditions. Upon any such appointment of any Plan Agent
for the purpose of receiving dividends and distributions, the Fund will be
authorized to pay to such successor Plan Agent, for each Participant's account,
all dividends and distributions payable on Shares held in their name or under
the Plan for retention or application by such successor Plan Agent as provided
in these terms and conditions.
The Plan Agent shall at all times act in good faith and agrees to use its best
efforts within reasonable limits to ensure the accuracy of all services
performed under this Agreement and to comply with applicable law, but assumes no
responsibility and shall not be liable for loss or damage due to errors unless
such error is caused by the Plan Agent's negligence, bad faith, or willful
misconduct or that of its employees.
These terms and conditions shall be governed by the laws of the State of
Maryland.
40
DIRECTORY
INVESTMENT MANAGER AND ADMINISTRATOR
Neuberger Berman Management Inc.
605 Third Avenue 2nd Floor
New York, NY 10158-0180
877.461.1899 or 212.476.8800
SUB-ADVISER
Neuberger Berman, LLC
605 Third Avenue
New York, NY 10158-3698
CUSTODIAN
State Street Bank and Trust Company
225 Franklin Street
Boston, MA 02110
STOCK TRANSFER AGENT
Bank of New York
101 Barclay Street, 11-E
New York, NY 10286
LEGAL COUNSEL
Kirkpatrick & Lockhart Nicholson Graham LLP
1800 Massachusetts Avenue, NW
2nd Floor
Washington, DC 20036-1221
INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
Ernst & Young LLP
200 Clarendon Street
Boston, MA 02116
41
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 will also be available without charge, by calling 1-800-877-9700
(toll-free), on the website of the Securities and Exchange Commission at
www.sec.gov, and on the Funds' website at www.nb.com.
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).
42
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 March 8, 2005. Shareholders of each fund voted on
the following matter: (1) To elect five Class III Directors (one of which is to
be elected only by holders of the Fund's preferred stock) to serve until the
annual meeting of stockholders in 2008, or until their successors are elected
and qualified. Class I and II Directors continue to hold office until the annual
meeting in 2006 and 2007, respectively.
Proposal 1 - To elect five Class III Directors (one of which is to be elected
only by holders of the Fund's preferred stock) to serve until the annual meeting
of stockholders in 2008.
Proposal 1
CALIFORNIA
Common and Preferred Shares
VOTES VOTES BROKER
VOTES FOR AGAINST WITHHELD ABSTENTIONS NON-VOTES
Robert A. Kavesh 5,178,069.078 - 107,356.034 - -
Edward I. O'Brien 5,176,469.078 - 108,956.034 - -
William E. Rulon 5,172,819.078 - 112,606.034 - -
Candace L. Straight 5,182,758.078 - 102,667.034 - -
Preferred Shares
VOTES VOTES BROKER
VOTES FOR AGAINST WITHHELD ABSTENTIONS NON-VOTES
Howard A. Mileaf 1,266.000 - 0 - -
INTERMEDIATE
Common and Preferred Shares
VOTES VOTES BROKER
VOTES FOR AGAINST WITHHELD ABSTENTIONS NON-VOTES
Robert A. Kavesh 14,553,397.716 - 281,567.000 - -
Edward I. O'Brien 14,554,817.716 - 280,147.000 - -
William E. Rulon 14,556,307.716 - 278,657.000 - -
Candace L. Straight 14,579,892.716 - 255,072.000 - -
Preferred Shares
VOTES VOTES BROKER
VOTES FOR AGAINST WITHHELD ABSTENTIONS NON-VOTES
Howard A. Mileaf 4,397.000 - 0 - -
43
NEW YORK
Common and Preferred Shares
VOTES VOTES BROKER
VOTES FOR AGAINST WITHHELD ABSTENTIONS NON-VOTES
Robert A. Kavesh 5,439,803.000 - 63,381.000 - -
Edward I. O'Brien 5,444,803.000 - 58,381.000 - -
William E. Rulon 5,439,803.000 - 63,381.000 - -
Candace L. Straight 5,440,176.000 - 63,008.000 - -
Preferred Shares
VOTES VOTES BROKER
VOTES FOR AGAINST WITHHELD ABSTENTIONS NON-VOTES
Howard A. Mileaf 1,910.000 - 0 - -
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 LOGO]
A LEHMAN BROTHERS COMPANY
NEUBERGER BERMAN MANAGEMENT INC.
605 Third Avenue 2nd Floor
New York, NY 10158-0180
INTERNAL SALES & SERVICES
877.461.1899
www.nb.com
[RECYCLED SYMBOL]
DO123 06/05
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 amendments
to the Code of Ethics and there were no waivers from the Code of Ethics granted
to the Registrant's principal executive officer, principal financial officer,
principal accounting officer or controller, or persons performing similar
functions.
A copy of the Code of Ethics was included as an exhibit to the Registrant's Form
N-CSR filed on January 9, 2004. 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 one audit committee financial
expert serving on its audit committee. The Registrant's audit committee
financial expert is John Cannon. Mr. Cannon is an independent director 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 each series is disclosed in the
Registrant's Annual Report, which is included as Item 1 of this Form N-CSR.
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES
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 is
accumulated and communicated to the Registrant's management to allow
timely decisions regarding required disclosure.
(b) There were no significant changes in the Registrant's internal controls
over financial reporting (as defined in rule 30a-3(d) under the Act)
that occurred during the Registrant's last fiscal half-year that have
materially affected, or are reasonably likely to materially affect, the
Registrant's internal control over financial reporting.
ITEM 12. EXHIBITS
(a)(1) A copy of the Code of Ethics is incorporated by reference to
Registrant's Form N-CSR, Investment Company Act file number 811-21334
(filed January 9, 2004).
(a)(2) The certifications required by Rule 30a-2(a) of the Act and Section 302
of the Sarbanes-Oxley Act of 2002 ("Sarbanes-Oxley Act") are attached
hereto.
(b) The certification required by Rule 30a-2(b) of the Act and Section 906
of the Sarbanes-Oxley Act is attached hereto.
The 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: June 28, 2005
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the Registrant and in the capacities and on the
dates indicated.
By: /s/ Peter E. Sundman
--------------------
Peter E. Sundman
Chief Executive Officer
Date: June 28, 2005
By: /s/ John McGovern
-----------------
John McGovern
Treasurer and Principal Financial
and Accounting Officer
Date: June 28, 2005