n-csrs.htm
As filed with the Securities and Exchange Commission on July 9, 2010
 
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 LLC
605 Third Avenue, 2nd Floor
New York, New York 10158-0180
(Address of Principal Executive Offices – Zip Code)
 
Registrant’s telephone number, including area code: (212) 476-8800
 
Robert Conti, Chief Executive Officer
c/o Neuberger Berman Management LLC
Neuberger Berman California Intermediate Municipal Fund Inc.
605 Third Avenue, 2nd Floor
New York, New York  10158-0180
 
Arthur C. Delibert, Esq.
K&L Gates LLP
1601 K Street, N.W.
Washington, D.C. 20006-1600
(Names and Addresses of agents for service)
 
Date of fiscal year end: October 31, 2010
 
Date of reporting period: April 30, 2010
 
Form N-CSR is to be used by management investment companies to file reports with the Commission not later than 10 days after the transmission to stockholders of any report that is required to be transmitted to stockholders under Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may use the information provided on Form N-CSR in its regulatory, disclosure review, inspection, and policymaking roles.
 
A registrant is required to disclose the information specified by Form N-CSR, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-CSR unless the Form displays a currently valid Office of Management and Budget (“OMB”) control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to Secretary, Securities and Exchange Commission, 100 F Street, NE, Washington, DC 20549-0609. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. § 3507.

 
 

 

Item 1. Report to Stockholders
 
   
  Neuberger Berman
 
Intermediate Municipal
 
Closed-End Funds
 
 
Neuberger Berman California Intermediate
Municipal Fund Inc.
 
Neuberger Berman Intermediate Municipal
Fund Inc.
 
Neuberger Berman New York Intermediate Municipal
Fund Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  Semi-Annual Report
 
April 30, 2010
 
 

 
 

 
 
Contents
         
           
THE FUNDS          
           
President's Letter
   
1
   
 
PORTFOLIO COMMENTARY
 
California Intermediate Municipal Fund Inc.
   
3
   
 
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.
   
10
   
 
New York Intermediate Municipal Fund Inc.
   
17
   
 
FINANCIAL STATEMENTS
   
23
   
 
FINANCIAL HIGHLIGHTS/PER SHARE DATA
California Intermediate Municipal Fund Inc.
   
35
   
 
Intermediate Municipal Fund Inc.
   
36
   
 
New York Intermediate Municipal Fund Inc.
   
37
   
 
Distribution Reinvestment Plan
   
39
   
 
Directory
   
41
   
 
Proxy Voting Policies and Procedures
   
42
   
 
Quarterly Portfolio Schedule
   
42
   
 
 
 
 
"Neuberger Berman" and the Neuberger Berman logo are service marks of Neuberger Berman LLC. "Neuberger Berman Management LLC" and the individual fund names in this shareholder report are either service marks or registered service marks of Neuberger Berman Management LLC. ©2010 Neuberger Berman Management LLC. All rights reserved.
 
 

 
 

 

 
 
 
President's Letter
 
 
Dear Shareholder,
 
 
I am pleased to present this semi-annual report for the Neuberger Berman Intermediate Municipal Closed-End Funds for the six months ended April 30, 2010. The report includes portfolio commentaries, a listing of the Funds' investments, and their unaudited financial statements for the reporting period.
 
Each Fund's investment objective is to provide a high level of current income exempt from regular federal income tax and, for each state-specific Fund, a high level of current income exempt from that state's personal income taxes (and, in the case of the New York Fund, New York City personal income tax).
 
We invest in intermediate-term municipal bonds because our experience and research indicate strongly that this maturity range has historically offered the best risk/reward profile on the yield curve, providing much of the return of longer-term bonds — with less volatility and risk. We believe that our conservative investment philosophy and disciplined investment process will benefit you with superior tax-exempt current income over the long term.
 
In addition, I would like to provide an update on the Funds' tender offer activity. In February 2009, each Fund's Board of Directors authorized a semi-annual tender offer program consisting of up to four tender offers over a two-year period. Under each program, if a Fund's common shares trades at an average daily discount to net asset value per share (NAV) of greater than 10% during a 12-week measurement period, the Fund would conduct a tender offer for between 5% and 20% of its outstanding common shares at a price equal to 98% of its NAV determined on the day the tender offer expires. As part of the program, and to offset expenses associated with the tender offers, Neuberger Berman Management LLC agreed to extend the management fee waivers then in place for each Fund for one year.
 
During the reporting period, each Fund conducted the second of its measurement periods. For the 12-week measurement periods ending May 14, 2010, each of the Funds traded at an average daily discount to NAV of less than 10% and, accordingly, none of the Funds will conduct a tender offer.
 
Finally, I am pleased to share with you that S. Blake Miller was appointed co-portfolio manager of the Funds, effective February 25, 2010. He is exceptionally qualified, with more than 23 years of industry experience in the area of municipal fixed income securities.
 
Thank you for your confidence in the Funds. We will continue to do our best to earn your confidence and trust in the years to come.
 
 
Sincerely,
 
 
 
 
robert conti
president and ceo
neuberger berman california intermediate municipal fund inc.
neuberger berman intermediate municipal fund inc.
neuberger berman new york intermediate municipal fund inc.
 
 
1
 
 

 

 
Intermediate Municipal Closed-End Funds Portfolio Commentaries
 
 
For the six months ended April 30, 2010, on a net asset value (NAV) basis, all three of the Neuberger Berman closed-end intermediate municipal bond funds posted solid returns and outperformed the Barclays Capital 10-Year Municipal Bond Index.
 
While many states and local municipalities continued to face budgetary challenges, the municipal bond market generated solid results during the reporting period. Benign inflation and continued robust demand from investors appeared to be anticipating higher tax rates in the future supported the market. In addition, falling supply of traditional tax-exempt municipal bonds, which can be partially attributed to the taxable Build America Bond program, was positive for the market.
 
The risk appetite of investors remained strong during the reporting period, as they sought to generate incremental yields given the relatively low interest rate environment. Against this backdrop, lower-rated municipal bonds outperformed their higher-rated counterparts. During the six months ended April 30, 2010, the Barclays Capital BAA Municipal Index gained 5.75%. In contrast, the Barclays Capital AAA Municipal Index returned 2.57%.
 
As was the case during the previous 12 months, the Funds' outperformance versus the benchmark was largely due to their exposure to certain lower-tier investment grade municipal bonds and non-rated and below-investment-grade securities. Also positive was exposure to somewhat longer-term municipal bonds, as they outperformed short-term securities. Finally, the use of leverage was beneficial, as it served to amplify the returns in the overall municipal market.
 
Slightly detracting from performance was the Funds' yield curve positioning. Throughout the reporting period, we utilized a barbell approach (investing in shorter and longer maturities). However, the benchmark is concentrated in the six- to eight-year portion of the curve, which provided stronger results.
 
Looking ahead, we continue to have a positive long-term outlook for the municipal market. In our view, the U.S. economy is likely to continue growing as the year progresses. That said, the expansion may be less robust given the winding down of the federal government's economic stimulus program. While headlines regarding state and local budget deficits could lead to periods of volatility, we believe the fundamental backdrop for the municipal bond market remains positive. With the likelihood of higher tax rates in the future, we believe demand for tax-free bonds will remain strong. In addition, the Build America Bond program is expected to continue to temper the supply of tax-exempt municipal bonds through 2012.
 
As always, we will continue to actively manage the Funds and conduct thorough in-house fundamental research on the underlying credit characteristics of our existing and potential holdings.
 
 
 
 
 
 

 
 
 
2
 
 
 

 

 
California Intermediate Municipal Fund Inc.
 
For the six-month period ended April 30, 2010, on a NAV basis, California Intermediate Municipal Fund returned 5.74% compared to the Barclays Capital 10-Year Municipal Bond Index's 4.00%.
 
As of April 30, 2010, the Fund was comprised of 75.6% revenue bonds, 18.2% general obligation bonds, 5.0% pre-refunded/escrow bonds and 1.2% cash and cash equivalents. Bonds subject to the Alternative Minimum Tax (AMT) equaled 10.3% of assets. At the close of the reporting period, the Fund's duration was 5.1 years and its leverage position was 42% of assets.
 
Intermediate Municipal Fund Inc.
 
For the six-month period ended April 30, 2010, on a NAV basis, Intermediate Municipal Fund returned 5.44% compared to the Barclays Capital 10-Year Municipal Bond Index's 4.00%.
 
As of April 30, 2010, the Fund was comprised of 66.4% revenue bonds, 12.7% general obligation bonds, 13.9% pre-refunded/escrow bonds, and 7.0% cash and cash equivalents. Bonds subject to the Alternative Minimum Tax (AMT) equaled 7.7% of assets. At the close of the reporting period, the Fund's duration was 6.0 years and its leverage position was 39.9% of assets.
 
New York Intermediate Municipal Fund Inc.
 
For the six-month period ended April 30, 2010, on a NAV basis, New York Intermediate Municipal Fund returned 5.58% compared to the Barclays Capital 10-Year Municipal Bond Index's 4.00%.
 
As of April 30, 2010, the Fund was comprised of 86.3% revenue bonds, 6.9% general obligation bonds, 5.0% pre-refunded/escrow bonds, and 1.8% cash and cash equivalents. Bonds subject to the Alternative Minimum Tax (AMT) equaled 13.5% of assets. At the close of the reporting period, the Fund's duration was 5.1 years and its leverage position was 39.9% of assets.
 
 
Sincerely,
 
 
 
 
 
 
 
 
James L. Iselin
S. Blake Miller
Portfolio Co-Managers
 
 
 
 
 
 
 
3
 
 
 

 

 
 
 
TICKER SYMBOLS      
California Intermediate Municipal Fund
 
NBW
 
Intermediate Municipal Fund
 
NBH
 
New York Intermediate Municipal Fund
 
NBO
 
       
CALIFORNIA INTERMEDIATE
MUNICIPAL FUND INC.
RATING SUMMARY
     
(% of total investments)
 
AAA/Government/
Government Agency
   
15.6
%
 
AA
   
21.3
   
A
   
34.5
   
BBB
   
23.3
   
BB
   
4.4
   
Short Term
   
0.9
   
Total
   
100.0
%
 
           
INTERMEDIATE MUNICIPAL FUND INC.
RATING SUMMARY
         
(% of total investments)
 
AAA/Government/
Government Agency
   
24.6
%
 
AA
   
22.1
   
A
   
34.5
   
BBB
   
13.7
   
BB
   
4.6
   
B
   
0.4
   
Short Term
   
0.1
   
Total
   
100.0
%
 
           
NEW YORK INTERMEDIATE
MUNICIPAL FUND INC.
RATING SUMMARY
         
(% of total investments)
 
AAA/Government/
Government Agency
   
9.3
%
 
AA
   
31.6
   
A
   
35.5
   
BBB
   
16.3
   
BB
   
5.0
   
B
   
0.0
   
CCC
   
2.2
   
Short Term
   
0.1
   
Total
   
100.0
%
 
           
           
Each Fund's portfolio holdings are categorized using the ratings assigned by Standard and Poor's, Moody's Investors Service, Inc., or Fitch, Inc., nationally recognized statistical rating organizations. All ratings are as of the report date and do not reflect any subsequent changes in ratings.
 
 
 
 
 
PERFORMANCE HIGHLIGHTS  
Neuberger Berman
 
   
Inception
 
Six Month
Period Ended
 
Average Annual Total Return
Ended 04/30/2010
 
NAV1,3,4,5
 
Date
 
04/30/2010
 
1 Year
 
5 Years
 
Life of Fund
 
California Intermediate
Municipal Fund
 
 
09/24/2002
   
5.74
%
   
15.18
%
   
4.98
%
   
5.85
%
 
Intermediate
Municipal Fund
 
 
09/24/2002
   
5.44
%
   
12.32
%
   
4.63
%
   
5.69
%
 
New York Intermediate
Municipal Fund
 
 
09/24/2002
   
5.58
%
   
14.37
%
   
4.82
%
   
5.63
%
 
   
Inception
 
Six Month
Period Ended
 
Average Annual Total Return
Ended 04/30/2010
 
Market Price2,3,4,5
 
Date
 
04/30/2010
 
1 Year
 
5 Years
 
Life of Fund
 
California Intermediate
Municipal Fund
 
 
09/24/2002
   
9.61
%
   
18.00
%
   
6.53
%
   
4.43
%
 
Intermediate
Municipal Fund
 
 
09/24/2002
   
11.67
%
   
18.87
%
   
6.45
%
   
4.69
%
 
New York Intermediate
Municipal Fund
 
 
09/24/2002
   
16.05
%
   
22.33
%
   
7.68
%
   
5.08
%
 
                                       
Closed-end funds, unlike open-end funds, are not continually offered. There is an initial public offering and, once issued, common shares of closed-end funds are sold in the open market through a stock exchange.
 
The composition, industries and holdings of the Funds are subject to change. Investment return will fluctuate. Past performance is no guarantee of future results.
 
 
 
 
4
 
 
 

 

 
Endnotes
 
 
  Returns based on the net asset value (NAV) of the Funds.
   
  Returns based on the market price of Fund shares on the NYSE Amex.
   
  A portion of the income from each Fund may be a tax preference item for purposes of the Federal Alternative Minimum Tax for certain investors.
   
 4 Neuberger Berman Management LLC ("Management") has contractually agreed to waive a portion of the management fees that it would otherwise be entitled to receive from each Fund. Each undertaking lasts until October 31, 2011. Management has voluntarily extended these waivers for one year. Please see the notes to the financial statements for specific information regarding the rate of the management fees waived by Management. Absent such a waiver, the performance of each Fund would be lower.
   
 5 Unaudited performance data current to the most recent month-end are available at www.nb.com.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
5
 
 
 

 

 
Glossary
 
Barclays Capital 10-Year Municipal
Bond Index:
 
An unmanaged index that is the 10-year (8-12) component of the Barclays Capital Municipal Bond Index, which is a rules based, market-value-weighted index engineered for the long-term tax-exempt bond market. To be included in the index, bonds must have a minimum credit rating of Baa. They must have an outstanding par value of at least $5 million and be issued as part of a transaction of at least $50 million. The bonds must have a dated-date after December 31, 1990 and must be at least one year from their maturity date. Remarketed issues, taxable municipal bonds, bonds with floating rates, and derivatives, are excluded from the benchmark.
 
 
 
Please note that the index does not take into account any fees and expenses or any tax consequences of investing in the individual securities that it tracks and that individuals cannot invest directly in any index. Data about the performance of this index is prepared or obtained by Management and include reinvestment of all income dividends and distributions. The Funds may invest in securities not included in the index.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 
 
 
6
 
 

 
 
Schedule of Investments California Intermediate Municipal Fund Inc.
 
(Unaudited)
 
PRINCIPAL AMOUNT   SECURITY@   VALUE  
           
(000's omitted)      
(000's omitted)
 
           
Arizona (0.9%)
 
$
750
   
Verrado Comm. Fac. Dist. Number 1 G.O., Ser. 2003, 6.15%, due 7/15/17
 
$
714
   
   
California (148.7%)
 
 
3,050
   
Abag Fin. Au. Cert. of Participation Rev. (Episcopal Homes Foundation), Ser. 1998, 5.13%, due 7/1/18
   
3,052
ß
 
 
700
   
Abag Fin. Au. Rev. (San Diego Hosp. Assoc.), Ser. 2003-C, 5.13%, due 3/1/18
   
708
ß
 
 
1,250
   
Alameda Co. Cert. of Participation Ref. Rev., Ser. 2001-A,
(National Public Finance Guarantee Corp. Insured), 5.38%, due 12/1/17
   
1,298
   
 
1,285
   
Bay Area Gov't Assoc. BART SFO Extension Rev. (Arpt. Premium Fare), Ser. 2002-A, (AMBAC Insured), 5.00%, due 8/1/21
   
1,170
   
 
1,000
   
Burbank Pub. Svc. Dept. Elec. Rev., Ser. 1998, (AGM Insured), 5.13%, due 6/1/16
   
1,003
   
 
205
   
California Co. Tobacco Securitization Agcy. Tobacco Settlement Asset-Backed Rev., Ser. 2002, 4.75%, due 6/1/19
   
205
   
 
1,750
   
California Ed. Fac. Au. Ref. Rev. (Stanford Univ.), Ser. 2001-R, 5.00%, due 11/1/21
   
1,820
ß
 
 
500
   
California Ed. Fac. Au. Rev. (Scripps College), Ser. 2007,
(National Public Finance Guarantee Corp. Insured), 5.00%, due 11/1/15
   
539
ß
 
 
2,000
   
California HFA Home Mtge. Rev., Ser. 2006-E, (FGIC Insured), 4.88%, due 2/1/17
   
2,018
   
 
1,715
   
California HFA Home Mtge. Rev., Ser. 2007-E, 5.00%, due 2/1/42
   
1,706
   
 
2,000
   
California Hlth. Fac. Fin. Au. Rev. (Catholic Healthcare West), Ser. 2004-I,
4.95%, due 7/1/26 Putable 7/1/14
   
2,175
µß
 
 
2,000
   
California Hlth. Fac. Fin. Au. Rev. (Catholic Healthcare West), Ser. 2009-C,
5.00%, due 7/1/37 Putable 7/2/12
   
2,128
µß
 
 
2,000
   
California Hlth. Fac. Fin. Au. Rev. (Cedars-Sinai Med. Ctr.), Ser. 2005, 5.00%, due 11/15/21
   
2,081
ß
 
 
1,000
   
California Infrastructure & Econ. Dev. Bank St. Sch. Fund Apportionment Lease Revenue Bonds (King City Joint Union High Sch. Dist. Fin.), Ser. 2010, 5.13%, due 8/15/24
   
1,010
   
 
500
   
California Muni. Fin. Au. Ed. Rev. (American Heritage Ed. Foundation Proj.), Ser. 2006-A, 5.00%, due 6/1/16
   
487
ß
 
 
1,040
   
California Muni. Fin. Au. Rev. (Loma Linda Univ.), Ser. 2007, 5.00%, due 4/1/21
   
1,086
ß
 
 
2,500
   
California St. Dept. of Wtr. Res. Pwr. Supply Rev., Ser. 2002-A,
5.75%, due 5/1/17 Pre-Refunded 5/1/12
   
2,776
   
 
2,250
   
California St. G.O., Ser. 2002, 5.00%, due 10/1/17
   
2,382
   
 
1,200
   
California St. G.O. (Muni. Sec. Trust Receipts), Ser. 2001-SGA136, (XLCA Insured), 0.27%, due 5/3/10
   
1,200
µb
 
 
1,095
   
California St. Pub. Works Board Lease Rev. (California Comm. Colleges), Ser. 2004-B, 5.50%, due 6/1/20
   
1,131
   
 
1,000
   
California St. Pub. Works Board Lease Rev. (Dept. of Gen. Svc.) (Cap. East End ), Ser. 2002-A, (AMBAC Insured), 5.25%, due 12/1/16
   
1,044
   
 
2,000
   
California Statewide CDA Cert. of Participation Rev. (Children's Hosp. Los Angeles), Ser. 1999, 5.13%, due 8/15/19
   
2,007
ß
 
 
1,340
   
California Statewide CDA Cert. of Participation Rev. (The Internext Group), Ser. 1999, 5.38%, due 4/1/17
   
1,345
ß
 
 
1,000
   
California Statewide CDA Hlth. Fac. Rev. (Adventist Hlth.), Ser. 2005-A, 5.00%, due 3/1/20
   
1,020
ß
 
 
5,000
   
California Statewide CDA Hlth. Fac. Rev. (Mem. Hlth. Svcs.), Ser. 2003-A, 6.00%, due 10/1/16
   
5,397
ß
 
 
1,490
   
California Statewide CDA Rev. (California Baptist Univ.), Ser. 2007-A, 5.30%, due 11/1/18
   
1,414
ß
 
 
1,000
   
California Statewide CDA Rev. (Daughters of Charity Hlth.), Ser. 2005-G, 5.00%, due 7/1/22
   
955
ß
 
 
1,255
   
California Statewide CDA Rev. (Sr. Living So. California Presbyterian Homes), Ser. 2009, 6.25%, due 11/15/19
   
1,334
ß
 
 
450
   
California Statewide CDA Rev. (Valley Care Hlth. Sys.), Ser. 2007-A, 4.80%, due 7/15/17
   
441
ß
 
 
1,020
   
Cerritos Pub. Fin. Au. Sub. Tax Allocation Rev. (Cerritos Redev. Proj.), Ser. 2002-B, 4.40%, due 11/1/16
   
962
   
 
1,500
   
Compton Unified Sch. Dist. Ref. G.O. (Election 2002), Ser. 2006-D,
(AMBAC Insured), 0.00%, due 6/1/14
   
1,327
   
 
1,365
   
Daly City Hsg. Dev. Fin. Agcy. Rev. Ref. (Franciscan Mobile Home Park), Ser. 2007-A, 5.00%, due 12/15/21
   
1,277
ß
 
 
820
   
Folsom Pub. Fin. Au. Spec. Tax Rev., Ser. 2007-B, 4.40%, due 9/1/12
   
807
   
 
250
   
Folsom Pub. Fin. Au. Spec. Tax Rev., Ser. 2007-B, 4.40%, due 9/1/13
   
243
   
 
2,000
   
Fresno Joint Pwr. Fin. Au. Lease Rev. (Master Lease Proj.), Ser. 2008-A, (Assured Guaranty Insured), 5.00%, due 4/1/23
   
2,047
   
 
1,000
   
Fresno Unified Sch. Dist. Ref. G.O., Ser. 2002-A, (National Public Finance Guarantee Corp. Insured), 6.00%, due 2/1/17
   
1,112
   
 
 
See Notes to Schedule of Investments
 
7

 
 
 
PRINCIPAL AMOUNT
 
(000's omitted)
 
SECURITY@
 
 
 
VALUE
 
(000's omitted)
 
           
$
2,835
   
Glendale Redev. Agcy. Tax Allocation Rev. (Central Glendale Redev. Proj.), Ser. 2002, (National Public Finance Guarantee Corp. Insured), 5.00%, due 12/1/16
 
$
2,903
   
 
2,480
   
Glendale Redev. Agcy. Tax Allocation Rev. (Central Glendale Redev. Proj.), Ser. 2002, (National Public Finance Guarantee Corp. Insured), 5.25%, due 12/1/17
   
2,551
   
 
2,000
   
Glendale Redev. Agcy. Tax Allocation Rev. (Central Glendale Redev. Proj.), Ser. 2010, 5.50%, due 12/1/24
   
1,995
   
 
1,245
   
Long Beach Bond Fin. Au. Tax Allocation Rev. (Downtown, North Long Beach, Poly High, & West Beach Redev. Proj.), Ser. 2002-A, (AMBAC Insured), 5.38%, due 8/1/17 Pre-Refunded 8/1/12
   
1,370
   
 
500
   
Long Beach Fin. Au. Rev., Ser. 1992, (AMBAC Insured), 6.00%, due 11/1/17
   
542
   
 
4,000
   
Los Angeles Dept. of Arpts. Rev. (Los Angeles Int'l Arpt.), Ser. 2002-A,
(National Public Finance Guarantee Corp. Insured), 5.25%, due 5/15/18
   
4,207
   
 
1,500
   
Los Angeles Harbor Dept. Ref. Rev., Ser. 2001-B, (AMBAC Insured), 5.50%, due 8/1/17
   
1,570
   
 
500
   
Marin Co. Dixie Elementary Sch. Dist. G.O., Ser. 2000-A, (AGM Insured), 5.38%, due 8/1/17
   
510
   
 
1,045
   
Marin Co. Muni. Wtr. Dist. Wtr. Ref. Rev., Ser. 2002, (AMBAC Insured), 5.00%, due 7/1/17
   
1,092
   
 
1,070
   
Mill Valley Sch. Dist. G.O. Cap. Appreciation, Ser. 1994-A, 0.00%, due 8/1/19
   
685
   
 
1,090
   
Moreland Sch. Dist. Ref. G.O., Ser. 2002, (National Public Finance Guarantee Corp. Insured), 5.13%, due 9/1/17
   
1,144
   
 
1,000
   
Mountain House Pub. Fin. Au. Utils. Sys. Rev., Ser. 2007, 5.00%, due 12/1/22
   
930
   
 
535
   
Nevada & Placer Cos. Irrigation Dist. Cert. of Participation Rev., Ser. 2002,
(National Public Finance Guarantee Corp. Insured), 5.00%, due 1/1/16
   
556
   
 
565
   
Nevada & Placer Cos. Irrigation Dist. Cert. of Participation Rev., Ser. 2002,
(National Public Finance Guarantee Corp. Insured), 5.00%, due 1/1/17
   
585
   
 
500
   
Northstar Comm. Svcs. Dist. Spec. Tax (Comm. Facs. Dist. Number 1), Ser. 2006, 4.70%, due 9/1/18
   
452
   
 
500
   
Northstar Comm. Svcs. Dist. Spec. Tax (Comm. Facs. Dist. Number 1), Ser. 2006, 4.75%, due 9/1/19
   
446
   
 
1,045
   
Oakland G.O., Ser. 2002-A, (National Public Finance Guarantee Corp. Insured), 5.00%, due 1/15/15
   
1,095
   
 
1,210
   
Oakland G.O., Ser. 2002-A, (National Public Finance Guarantee Corp. Insured), 5.00%, due 1/15/18
   
1,251
   
 
605
   
Oakland Redev. Agcy. Rev. (Coliseum Area Redev. Proj.), Ser. 2003,
5.00%, due 9/1/16 Pre-Refunded 3/1/13
   
672
   
 
635
   
Oakland Redev. Agcy. Rev. (Coliseum Area Redev. Proj.), Ser. 2003,
5.00%, due 9/1/17 Pre-Refunded 3/1/13
   
705
   
 
1,290
   
Oakland Redev. Agcy. Sub. Tax Allocation Rev. (Central Dist. Redev. Proj.), Ser. 2003, (National Public Finance Guarantee Corp. Insured), 5.50%, due 9/1/17
   
1,341
   
 
1,445
   
Oceanside Cert. of Participation Ref. Rev., Ser. 2003-A, (AMBAC Insured), 5.25%, due 4/1/14
   
1,531
   
 
1,500
   
Pico Rivera Pub. Fin. Au. Lease Rev., Ser. 2009, 4.75%, due 9/1/25
   
1,492
   
 
3,890
   
Port of Oakland Ref. Rev., Ser. 2002-N, (National Public Finance Guarantee Corp. Insured), 5.00%, due 11/1/13
   
4,111
   
 
440
   
Roseville Stone Point Comm. Fac. Dist. Number 1 Special Tax Rev., Ser. 2003, 5.70%, due 9/1/17
   
430
   
 
400
   
Sacramento Co. Sanitation Dist. Fin. Au. Rev., Ser. 2000-A, 5.60%, due 12/1/17
   
401
   
 
2,600
   
Sacramento Muni. Utils. Dist. Elec. Rev., Ser. 1997-K, (AMBAC Insured), 5.70%, due 7/1/17
   
2,956
   
 
1,350
   
San Bernardino Comm. College Dist. G.O. (Election 2002), Ser. 2008-A, 6.25%, due 8/1/24
   
1,580
   
 
830
   
San Diego Redev. Agcy. Sub. Parking Rev. (Centre City Redev. Proj.), Ser. 2003-B, 4.80%, due 9/1/15
   
834
   
 
820
   
San Diego Redev. Agcy. Sub. Parking Rev. (Centre City Redev. Proj.), Ser. 2003-B, 4.90%, due 9/1/16
   
819
   
 
2,000
   
San Diego Unified Sch. Dist. G.O., Ser. 2002-D, (National Public Finance Guarantee Corp. Insured), 5.25%, due 7/1/21
   
2,191
   
 
1,000
   
San Francisco City & Co. Arpts. Commission Int'l Arpt. Ref. Rev., Ser. 2009-C2, 5.00%, due 5/1/21
   
1,086
   
 
1,500
   
San Francisco City & Co. Arpts. Commission Int'l Arpt. Rev., Ser. 1999-23A, (National Public Finance Guarantee Corp. Insured), 5.25%, due 5/1/16
   
1,508
   
 
1,000
   
San Francisco City & Co. Redev. Fin. Au. Tax Allocation (Mission Bay North Redev.), Ser. 2009-C, 5.50%, due 8/1/22
   
1,030
   
 
2,115
   
San Francisco City & Co. Redev. Fin. Au. Tax Allocation (San Francisco Redev. Proj.), Ser. 2003-B, (National Public Finance Guarantee Corp. Insured), 5.25%, due 8/1/18
   
2,172
   
 
1,000
   
San Jose Arpt. Ref. Rev., Ser. 2003-B, (AGM Insured), 5.00%, due 3/1/11
   
1,018
   
 
1,615
   
San Jose Arpt. Ref. Rev., Ser. 2003-B, (AGM Insured), 5.00%, due 3/1/12
   
1,702
   
 
925
   
San Jose Multi-Family Hsg. Rev. (Fallen Leaves Apts. Proj.), Ser. 2002-J1, (AMBAC Insured), 4.95%, due 12/1/22
   
883
ß
 
 
1,060
   
San Jose Redev. Agcy. Tax Allocation Ref. (Merged Area Redev. Proj.), Ser. 2006-D, (AMBAC Insured), 5.00%, due 8/1/21
   
1,071
   
 
1,000
   
San Rafael City High Sch. Dist. G.O. Cap. Appreciation (Election 2002), Ser. 2004-B, (National Public Finance Guarantee Corp. Insured), 0.00%, due 8/1/18
   
690
   
 
1,390
   
San Rafael Redev. Agcy. Tax Allocation Ref. (Central San Rafael Redev. Proj.), Ser. 2009, (Assured Guaranty Insured), 5.00%, due 12/1/21
   
1,510
   
 
1,620
   
Santa Clara Co. Fremont Union High Sch. Dist. G.O., Ser. 2002-C, (AGM Insured), 5.00%, due 9/1/20 Pre-Refunded 9/1/12
   
1,780
   
 
 
See Notes to Schedule of Investments
 
8

 
 
 
PRINCIPAL AMOUNT   SECURITY@   VALUE  
           
(000's omitted)
 
 
 
(000's omitted)
 
           
$
485
   
Santa Maria Bonita Sch. Dist. Cert. of Participation (Cap. Imp. & Ref. Proj.), Ser. 1998,
(National Public Finance Guarantee Corp. Insured), 5.00%, due 3/1/14
 
$
486
   
 
525
   
Sierra View Local Hlth. Care Dist. Rev., Ser. 2007, 4.40%, due 7/1/13
   
537
   
 
505
   
Sierra View Local Hlth. Care Dist. Rev., Ser. 2007, 4.50%, due 7/1/14
   
515
   
 
3,905
   
Solano Co. Cert. of Participation Rev., Ser. 2002, (National Public Finance Guarantee Corp. Insured), 5.25%, due 11/1/17 Pre-Refunded 11/1/12
   
4,314
   
 
745
   
South Gate Pub. Fin. Au. Tax Allocation Rev. (South Gate Redev. Proj. Number 1), Ser. 2002, (XLCA Insured), 5.00%, due 9/1/16
   
753
   
 
1,250
   
Sunnyvale Sch. Dist. G.O. (Election 2004), Ser. 2005-A, (AGM Insured), 5.00%, due 9/1/21
   
1,368
   
 
1,300
   
Tulare Local Hlth. Care Dist., Ser. 2007, 5.00%, due 11/1/20
   
1,278
   
 
3,000
   
Victor Valley Comm. College Dist. G.O. Cap. Appreciation (Election 2008), Ser. 2009-C, 0.00%, due 8/1/19
   
1,815
g
 
           
     
121,170
   
   
   
Guam (0.9%)
 
 
700
   
Guam Gov't Waterworks Au. Wtr. & Wastewater Sys. Rev., Ser. 2005, 5.50%, due 7/1/16
   
726
   
   
   
Illinois (1.0%)
 
 
910
   
Bartlett Tax Increment Ref. Rev. (Quarry Redev. Proj.), Ser. 2007, 5.35%, due 1/1/17
   
843
   
   
   
Louisiana (1.5%)
 
 
1,250
   
Tobacco Settlement Fin. Corp. Tobacco Settlement Asset-Backed Rev., Ser. 2001-B, 5.50%, due 5/15/30
   
1,250
   
   
   
Nevada (1.4%)
 
 
1,000
   
Las Vegas Redev. Agcy. Tax Increment Rev., Ser. 2009-A, 7.50%, due 6/15/23
   
1,128
   
   
   
New York (1.8%)
 
 
1,000
   
Nassau Co. IDA Continuing Care Retirement (The Amsterdam Harborside), Ser. 2007-A, 5.88%, due 1/1/18
   
1,000
ß
 
 
500
   
New York City IDA Liberty Rev. (7 World Trade Ctr., LLC Proj.), Ser. 2005-A, 6.25%, due 3/1/15
   
503
ß
 
           
     
1,503
   
   
Pennsylvania (1.3%)
 
 
1,000
   
Cumberland Co. West Shore Area Au. Hosp. Rev. (Holy Spirit Hosp. of the Sisters of Christian Charity Proj.), Ser. 2001, 6.00%, due 1/1/18
   
1,019
ß
 
   
   
Puerto Rico (12.8%)
 
 
1,500
   
Puerto Rico Elec. Pwr. Au. Pwr. Ref. Rev., Ser. 2007-VV, 5.50%, due 7/1/20
   
1,669
   
 
1,000
   
Puerto Rico Elec. Pwr. Au. Pwr. Rev., Ser. 2010-XX, 5.25%, due 7/1/35
   
1,008
   
 
1,000
   
Puerto Rico Ind., Tourist, Ed., Med. & Env. Ctrl. Fac. Rev. (Polytechnic Univ. of Puerto Rico Proj.), Ser. 2002-A, (ACA Insured), 5.25%, due 8/1/15
   
1,008
ß
 
 
3,000
   
Puerto Rico Muni. Fin. Agcy. Rev., Ser. 2002-A, (AGM Insured), 5.25%, due 8/1/17
   
3,152
   
 
1,000
   
Puerto Rico Muni. Fin. Agcy. Rev., Ser. 2002-A, (AGM Insured), 5.25%, due 8/1/21
   
1,024
   
 
1,500
   
Puerto Rico Sales Tax Fin. Corp. Sales Tax Rev., Subser. 2009-A, 5.00%, due 8/1/24
   
1,562
   
 
1,000
   
Puerto Rico Sales Tax Fin. Corp. Sales Tax Rev., Subser. 2009-A, 5.00%, due 8/1/39 Putable 8/1/11
   
1,044
µ
 
           
     
10,467
   
                   
   
Total Investments (170.3%) (Cost $135,895)
   
138,820
##
 
                   
   
Cash, receivables and other assets, less liabilities (2.1%)
   
1,677
   
                   
   
Liquidation Value of Auction Market Preferred Shares [(72.4%)]
   
(59,000
)
 
                   
   
Total Net Assets Applicable to Common Shareholders (100.0%)
 
$
81,497
   
 
 
See Notes to Schedule of Investments
 
9

 
 
Schedule of Investments Intermediate Municipal Fund Inc.
 
(Unaudited)
 
PRINCIPAL AMOUNT
 
(000's omitted)
 
SECURITY@
 
 
 
VALUE
 
(000's omitted)
 
           
Alabama (1.6%)
 
$
4,210
   
DCH Hlth. Care Au. Hlth. Care Fac. Rev., Ser. 2002, 5.25%, due 6/1/14
 
$
4,361
   
   
   
Arizona (8.4%)
 
 
1,465
   
Arizona Energy Management Svcs. (Main) LLC Energy Conservation Rev.
(Arizona St. Univ. Proj.-Main Campus), Ser. 2002, (National Public Finance Guarantee Corp. Insured), 5.25%, due 7/1/17
   
1,531
ß
 
 
5,000
   
Arizona Sch. Fac. Board Cert. of Participation, Ser. 2008, (Assured Guaranty Insured), 5.13%, due 9/1/21
   
5,336
   
 
2,265
   
Arizona Wtr. Infrastructure Fin. Au. Rev. (Wtr. Quality), Ser. 2008-A, 5.00%, due 10/1/22
   
2,546
   
 
5,730
   
Mohave Co. Ind. Dev. Au. Correctional Fac. Contract Rev. (Mohave Prison LLC Expansion Proj.), Ser. 2008, 7.50%, due 5/1/19
   
6,460
ß
 
 
1,840
   
Pinal Co. Cert. of Participation, Ser. 2004, 5.25%, due 12/1/18
   
1,915
   
 
1,155
   
Pinal Co. Cert. of Participation, Ser. 2004, 5.25%, due 12/1/22
   
1,178
   
 
1,750
   
Verrado Comm. Fac. Dist. Number 1 G.O., Ser. 2003, 6.15%, due 7/15/17
   
1,666
   
 
2,325
   
Verrado Comm. Fac. Dist. Number 1 G.O., Ser. 2006, 5.05%, due 7/15/18
   
2,013
   
           
     
22,645
   
   
California (18.8%)
 
 
2,565
   
California HFA Rev. (Home Mtge.), Ser. 2007-E, 5.00%, due 2/1/42
   
2,551
   
 
2,250
   
California Hlth. Fac. Fin. Au. Rev. (Cedars-Sinai Med. Ctr.), Ser. 2009, 5.00%, due 8/15/39
   
2,176
ß
 
 
1,725
   
California Infrastructure & Econ. Dev. Bank St. Sch. Fund (King City Joint Union High Sch.), Ser. 2010, 5.13%, due 8/15/24
   
1,743
   
 
1,955
   
California St. G.O., Ser. 2003, (AMBAC Insured), 5.00%, due 2/1/27
   
2,013
   
 
1,685
   
California St. G.O., Ser. 2007, (XLCA Insured), 4.50%, due 8/1/27
   
1,600
   
 
1,845
   
California St. G.O., Ser. 2005, 5.00%, due 3/1/19
   
1,954
   
 
1,500
   
California St. Pub. Works Board Lease Rev. (Dept. of Gen. Svcs. Cap East End), Ser. 2002-A, (AMBAC Insured), 5.25%, due 12/1/17
   
1,554
   
 
4,000
   
California St. Var. Purp. G.O., Ser. 2009, 5.63%, due 4/1/25
   
4,333
   
 
1,240
   
California Statewide CDA Hlth. Fac. Rev. (Mem. Hlth. Svcs.), Ser. 2003-A, 6.00%, due 10/1/16
   
1,338
ß
 
 
1,265
   
California Statewide CDA Rev. (California Baptist Univ.), Ser. 2007-A, 5.30%, due 11/1/18
   
1,200
ß
 
 
3,000
   
Cerritos Pub. Fin. Au. Rev. (Tax Allocation Redev. Proj.), Ser. 2002-A, (AMBAC Insured), 5.00%, due 11/1/19
   
3,018
   
 
2,525
   
Golden St. Tobacco Securitization Corp. Tobacco Settlement Rev., Ser. 2003-A1, 6.25%, due 6/1/33
   
2,788
   
 
5,750
   
Norwalk-La Mirada Unified Sch. Dist. G.O. Cap. Appreciation (Election 2002), Ser. 2009-E, (AGC Insured), 0.00%, due 8/1/21
   
3,087
c
 
 
2,080
   
Oakland Redev. Agcy. Sub. Tax Allocation Rev. (Central Dist. Redev. Proj.), Ser. 2003, (National Public Finance Guarantee Corp. Insured), 5.50%, due 9/1/18
   
2,151
   
 
5,000
   
Redondo Beach Unified Sch. Dist. G.O., Ser. 2009, 0.00%, due 8/1/16
   
3,622
d
 
 
2,060
   
Rocklin Unified Sch. Dist. G.O. Cap. Appreciation, Ser. 1994-B,
(National Public Finance Guarantee Corp. Insured), 0.00%, due 8/1/19
   
1,320
   
 
2,000
   
San Bernardino Comm. College Dist. G.O. Cap. Appreciation (Election), Ser. 2009-B, 0.00%, due 8/1/19
   
1,217
e
 
 
740
   
San Diego Redev. Agcy. Sub. Parking Rev. (Centre City Redev. Proj.), Ser. 2003-B, 5.00%, due 9/1/17
   
742
   
 
2,000
   
San Francisco City & Co. Arpt. Commission Int'l Arpt. Ref. Rev., Ser. 2009-C2, 5.00%, due 5/1/25
   
2,119
   
 
6,000
   
San Mateo Foster City Sch. Dist. G.O. Cap. Appreciation (Election 2008), Ser. 2010-A, 0.00%, due 8/1/23
   
2,802
f
 
 
9,070
   
Victor Valley Comm. College Dist. G.O. Cap. Appreciation (Election 2008), Ser. 2009-C, 0.00%, due 8/1/19
   
5,487
g
 
 
5,095
   
Victor Valley Joint Union High Sch. Dist. G.O. Cap. Appreciation Bonds, Ser. 2009, (Assured Guaranty Insured), 0.00%, due 8/1/26
   
1,893
   
           
     
50,708
   
   
Colorado (5.7%)
 
 
4,220
   
Colorado Springs Utils. Sys. Sub. Lien Ref. Rev., Ser. 2002-A, (AMBAC Insured), 5.38%, due 11/15/18
   
4,579
   
 
1,325
   
Denver City & Co. Arpt. Sys. Ref. Rev., Ser. 1991-D, (XLCA Insured), 7.75%, due 11/15/13
   
1,462
   
 
 
See Notes to Schedule of Investments
 
10

 
 
 
PRINCIPAL AMOUNT
 
(000's omitted)
 
SECURITY@
 
 
 
VALUE
 
(000's omitted)
 
                   
$
4,000
   
Denver City & Co. Arpt. Sys. Ref. Rev., Ser. 2002-E,
 
$
4,279
   
       
(National Public Finance Guarantee Corp. Insured), 5.25%, due 11/15/14
         
 
4,610
   
Thornton Cert. of Participation, Ser. 2002, (AMBAC Insured),
5.38%, due 12/1/16 Pre-Refunded 12/1/12
   
5,130
   
           
     
15,450
   
       
       
District of Columbia (0.4%)
 
 
1,000
   
Metro. Washington Dist. of Columbia Arpt. Au. Sys., Ser. 2008-A, 5.50%, due 10/1/18
   
1,093
   
   
   
Florida (0.8%)
 
 
1,000
   
Hillsborough Co. Ind. Dev. Au. IDR (Hlth. Facs.), Ser. 2008-B, 8.00%, due 8/15/32
   
1,138
ß
 
 
1,000
   
Sarasota Co. Utils. Sys. Ref. Rev., Ser. 2002-C, (National Public Finance Guarantee Corp. Insured), 5.25%, due 10/1/20
   
1,063
   
           
     
2,201
   
   
   
Georgia (3.0%)
 
 
4,575
   
Henry Co. Wtr. & Swr. Au. Ref. Rev., Ser. 2002-A, (National Public Finance Guarantee Corp. Insured), 5.13%, due 2/1/17
   
5,008
   
 
2,710
   
Newnan Hosp. Au. Rev. Anticipation Cert. (Newnan Hosp., Inc. Proj.), Ser. 2002, (National Public Finance Guarantee Corp. Insured), 5.50%, due 1/1/18 Pre-Refunded 1/1/13
   
3,025
ß
 
           
     
8,033
   
   
   
Guam (1.0%)
 
 
2,550
   
Guam Gov't Waterworks Au. Wtr. & Wastewater Sys. Rev., Ser. 2005, 6.00%, due 7/1/25
   
2,627
   
   
   
Illinois (13.1%)
 
 
5,365
   
Bartlett Tax Increment Ref. Rev. (Quarry Redev. Proj.), Ser. 2007, 5.35%, due 1/1/17
   
4,972
   
 
180
   
Chicago G.O. (Unrefunded Bal.), Ser. 2002-A, (AMBAC Insured), 5.38%, due 1/1/17
   
195
   
 
1,500
   
Chicago Metro. Wtr. Reclamation Dist. Cap. Imp. G.O., Ser. 2002-C,
5.38%, due 12/1/16 Pre-Refunded 12/1/12
   
1,673
   
 
1,970
   
Cook Co. Township High Sch. Dist. Number 225 Northfield Township, Ser. 2008, 5.00%, due 12/1/25
   
2,173
   
 
5,130
   
Illinois Ed. Fac. Au. Rev. (Field Museum of Natural History), Ser. 2002,
4.30%, due 11/1/36 Putable 11/1/13
   
5,265
µß
 
 
1,875
   
Illinois Fin. Au. Ref. Rev. (Roosevelt Univ. Proj.), Ser. 2009, 5.00%, due 4/1/16
   
1,981
ß
 
 
4,000
   
Illinois Fin. Au. Ref. Rev. (Roosevelt Univ. Proj.), Ser. 2009, 5.75%, due 4/1/24
   
4,156
ß
 
 
4,000
   
Illinois Fin. Au. Rev. (Clare Oaks Proj.), Ser. 2006-A, 5.75%, due 11/15/16
   
3,642
ß
 
 
5,840
   
Illinois Fin. Au. Rev. (Provena Hlth.), Ser. 2010-A, 6.25%, due 5/1/22
   
6,146
ß
 
 
3,000
   
Illinois Hlth. Fac. Au. Rev. (Loyola Univ. Hlth. Sys.) (Unrefunded Bal.), Ser. 1997-A,
(National Public Finance Guarantee Corp. Insured), 6.00%, due 7/1/14
   
3,210
ß
 
 
1,670
   
Illinois Metro. Pier & Exposition Au. Dedicated St. Tax Ref. Rev., Ser. 1998-A, (FGIC Insured), 5.50%, due 6/15/17
   
1,973
   
           
     
35,386
   
   
   
Indiana (13.6%)
 
 
4,000
   
Indiana Bond Bank Rev. (Spec. Prog. Clark Mem. Hosp.), Ser. 2009-D, 5.50%, due 8/1/29
   
4,154
ß
 
 
8,535
   
Indiana Bond Bank Rev. (St. Revolving Fund Prog.), Ser. 2001-A,
5.38%, due 2/1/17 Pre-Refunded 2/1/13
   
9,612
   
 
3,240
   
Indiana Bond Bank Rev. (St. Revolving Fund Prog.), Ser. 2002-B,
5.25%, due 2/1/18 Pre-Refunded 2/1/13
   
3,611
   
 
965
   
Indiana Bond Bank Rev. (Unrefunded Bal. St. Revolving Fund Prog.), Ser. 2001-A, 5.38%, due 2/1/17
   
1,054
   
 
320
   
Indiana Bond Bank Rev. (Unrefunded Bal. St. Revolving Fund Prog.), Ser. 2002-B, 5.25%, due 2/1/18
   
342
   
 
4,000
   
Indiana Hlth. & Ed. Fac. Fin. Au. Hosp. Ref. Rev. (Clarian Hlth. Oblig. Group), Ser. 2006-B, 5.00%, due 2/15/21
   
4,040
ß
 
 
2,050
   
Indiana Hlth. Fac. Fin. Au. Rev. (Hlth. Sys. Sisters of St. Francis), Ser. 2001, 5.35%, due 11/1/15
   
2,130
ß
 
 
1,000
   
Indiana Muni. Pwr. Agcy. Pwr. Supply Sys. Rev., Ser. 2003-B,
(National Public Finance Guarantee Corp. Insured), 5.25%, due 1/1/18
   
1,062
   
 
1,065
   
Indiana St. Recreational Dev. Comm. Rev., Ser. 2002, (AMBAC Insured), 5.25%, due 7/1/18
   
1,109
   
 
 
See Notes to Schedule of Investments
 
11

 
 
 
PRINCIPAL AMOUNT
 
(000's omitted)
 
SECURITY@
 
 
 
VALUE
 
(000's omitted)
 
                   
$
1,125
   
Indiana St. Recreational Dev. Comm. Rev., Ser. 2002, (AMBAC Insured), 5.25%, due 7/1/19
 
$
1,168
   
 
3,055
   
Indiana Trans. Fin. Au. Hwy. Ref. Rev., Ser. 2004-B, (National Public Finance Guarantee Corp. Insured), 5.75%, due 12/1/21
   
3,727
   
 
2,580
   
Indianapolis Local Pub. Imp. Rev. (Indianapolis Arpt. Au. Proj.), Ser. 2003-A, (AGM Insured), 5.63%, due 1/1/17
   
2,699
   
 
2,000
   
Jasper Hosp. Au. Hosp. Fac. Ref. Rev. (Mem. Hosp. & Hlth. Care Ctr. Proj.), Ser. 2002, (Radian Insured), 5.50%, due 11/1/17
   
2,029
ß
 
           
     
36,737
   
       
       
Iowa (6.0%)
 
 
1,000
   
Coralville Urban Renewal Rev., Tax Increment, Ser. 2007-C, 5.00%, due 6/1/15
   
1,058
   
 
5,110
   
Iowa Fin. Au. Rev. (St. Revolving Fund Prog.), Ser. 2008, 5.50%, due 8/1/22
   
5,867
   
 
2,750
   
Iowa Std. Loan Liquidity Corp. Std. Loan Rev., Ser. 2009-3, 5.50%, due 12/1/19
   
2,890
   
 
2,875
   
Iowa Tobacco Settlement Au. Tobacco Settlement Asset-Backed Rev., Ser. 2001-B, 5.30%, due 6/1/25 Pre-Refunded 6/1/11
   
3,015
   
 
3,000
   
Iowa Tobacco Settlement Au. Tobacco Settlement Asset-Backed Rev., Ser. 2005-C, 5.38%, due 6/1/38
   
2,291
   
 
1,005
   
Kirkwood Comm. College Iowa New Jobs Training Cert. G.O.(Merged Area X), Ser. 2007-1B, 5.00%, due 6/1/17
   
1,068
   
           
     
16,189
   
       
       
Louisiana (0.4%)
 
 
1,000
   
Tobacco Settlement Fin. Corp. Tobacco Settlement Asset-Backed Rev., Ser. 2001-B, 5.50%, due 5/15/30
   
1,000
   
       
       
Maryland (0.4%)
 
 
1,000
   
Maryland St. Hlth. & Higher Ed. Fac. Au. Rev. (Union Hosp. of Cecil Co.), Ser. 2002, 5.50%, due 7/1/14
   
1,057
ß
 
       
       
Massachusetts (7.3%)
 
 
1,850
   
Massachusetts St. G.O., Ser. 2002-E, (National Public Finance Guarantee Corp. Insured), 5.38%, due 1/1/18 Pre-Refunded 1/1/13
   
2,046
   
 
2,070
   
Massachusetts St. Hlth. & Ed. Fac. Au. Rev. (Caritas Christi Oblig. Group), Ser. 1999-A, 5.70%, due 7/1/15
   
2,086
ß
 
 
1,990
   
Massachusetts St. Hlth. & Ed. Fac. Au. Rev. (Milford-Whitinsville Reg. Hosp.), Ser. 1998-C, 5.75%, due 7/15/13
   
1,994
ß
 
 
4,935
   
Massachusetts St. Hlth. & Ed. Fac. Au. Rev. (New England Med. Ctr. Hosp.), Ser. 2002-H, (FGIC Insured), 5.38%, due 5/15/16 Pre-Refunded 5/15/12
   
5,388
ß
 
 
5,030
   
Massachusetts St. Wtr. Poll. Abatement Trust Rev. (MWRA Prog.), Ser. 2002-A, 5.25%, due 8/1/19
   
5,390
   
 
2,775
   
Massachusetts St. Wtr. Poll. Abatement Trust Rev. (Unrefunded Bal. Rev. Pool Prog.), Ser. 2001-7, 5.25%, due 2/1/16
   
2,900
   
           
     
19,804
   
       
       
Michigan (3.6%)
 
 
200
   
L'Anse Creuse Pub. Sch. G.O. (Sch. Bldg. & Site), Ser. 2008, (LOC: JP Morgan Chase), 0.29%, due 5/3/10
   
200
µ
 
 
1,375
   
Macomb Co. New Haven Comm. Sch. Bldg. & Site G.O., Ser. 2002,
5.25%, due 5/1/17 Pre-Refunded 11/1/12
   
1,517
   
 
1,500
   
Michigan St. Bldg. Au. Rev. (Fac. Prog.), Ser. 2001-II, 5.50%, due 10/15/18 Pre-Refunded 10/15/11
   
1,609
   
 
3,850
   
Royal Oak Hosp. Fin. Au. Hosp. Ref. Rev. (William Beaumont Hosp.), Ser. 1996, 6.25%, due 1/1/12
   
4,080
ß
 
 
2,000
   
Summit Academy North Pub. Sch. Academy Ref. Rev., Ser. 2005, 5.25%, due 11/1/20
   
1,598
   
 
780
   
Summit Academy Pub. Sch. Academy Ref. Rev., Ser. 2005, 6.00%, due 11/1/15
   
747
   
           
     
9,751
   
       
       
Minnesota (3.4%)
 
 
2,000
   
Freeborn Co. Hsg. & Redev. Au. Lease Rev. (Criminal Justice Ctr. Proj.), Ser. 2002, 5.38%, due 2/1/17
   
2,045
   
 
2,000
   
Maple Grove Hlth. Care Sys. Rev. (Maple Grove Hosp. Corp.), Ser. 2007, 5.00%, due 5/1/17
   
2,130
ß
 
 
 
See Notes to Schedule of Investments
 
12

 
 
 
PRINCIPAL AMOUNT
 
(000's omitted)
 
SECURITY@
 
 
 
VALUE
 
(000's omitted)
 
$
2,250
   
Minneapolis & St. Paul Hsg. & Redev. Au. Hlth. Care Sys. (Children's Hlth. Care Facs.), Ser. 2010-A1, (AGM Insured), 4.50%, due 8/15/24
 
$
2,219
ß
 
 
2,540
   
St. Paul Port Au. Lease Rev. (Office Bldg.), Ser. 2002, 5.00%, due 12/1/17
   
2,719
   
           
     
9,113
   
       
       
Mississippi (1.7%)
 
 
4,000
   
Mississippi Bus. Fin. Corp. Gulf Opportunity Zone Rev., Ser. 2009-A, 4.70%, due 5/1/24
   
3,912
ß
 
 
500
   
Mississippi Dev. Bank Spec. Oblig. (Wilkinson Co. Correctional), Ser. 2008-D, 5.00%, due 8/1/15
   
551
ß
 
           
     
4,463
   
   
   
Missouri (6.2%)
 
 
3,495
   
Bi State Dev. Agcy. Metro. Dist. Rev. (Metrolink Cross Co. Proj.), Ser. 2002-B, (AGM Insured), 5.25%, due 10/1/16
   
3,774
   
 
2,000
   
Boone Co. Hosp. Ref. Rev. (Boone Hosp. Ctr.), Ser. 2002, 5.05%, due 8/1/20
   
2,019
ß
 
 
2,425
   
Branson Dev. Fin. Board Infrastructure Fac. Board Rev., Ser. 2003-A, 5.00%, due 12/1/17
   
2,451
   
 
705
   
Branson Ind. Dev. Au. Tax Increment Rev. (Branson Landing-Retail Proj.), Ser. 2005, 5.25%, due 6/1/21
   
563
   
 
1,250
   
Missouri St. Env. Imp. & Energy Res. Au. Wtr. PCR (Drinking Wtr.), Ser. 2002-B, 5.50%, due 7/1/16 Pre-Refunded 1/1/13
   
1,397
   
 
750
   
Missouri St. Env. Imp. & Energy Res. Au. Wtr. PCR (Unrefunded Bal. Drinking Wtr.), Ser. 2002-B, 5.50%, due 7/1/16
   
821
   
 
2,275
   
Missouri St. Hlth. & Ed. Fac. Au. Rev. (Children's Mercy Hosp.), Ser. 2009, 5.13%, due 5/15/24
   
2,344
ß
 
 
245
   
Missouri St. Hsg. Dev. Comm. Multi-Family Hsg. Rev., Ser. 2001-II, (FHA Insured), 5.25%, due 12/1/16
   
248
a
 
 
110
   
Missouri St. Hsg. Dev. Comm. Multi-Family Hsg. Rev., Ser. 2001-III, (FHA Insured), 5.05%, due 12/1/15
   
111
   
 
2,965
   
Missouri St. Univ. Auxiliary Enterprise Sys. Rev., Ser. 2007-A, (XLCA Insured), 5.00%, due 4/1/26
   
3,054
   
           
     
16,782
   
   
   
Nevada (3.9%)
 
 
1,635
   
Las Vegas Redev. Agcy. Tax Increment Rev., Ser. 2009-A, 6.50%, due 6/15/17
   
1,784
   
 
3,545
   
Las Vegas Redev. Agcy. Tax Increment Rev., Ser. 2009-A, 7.50%, due 6/15/23
   
3,999
   
 
4,355
   
Las Vegas Valley Wtr. Dist. Ref. & Wtr. Imp. G.O., Ser. 2003-A, (National Public Finance Guarantee Corp. Insured), 5.25%, due 6/1/16
   
4,721
   
           
     
10,504
   
   
   
New Hampshire (3.1%)
 
 
2,600
   
New Hampshire Hlth. & Ed. Fac. Au. Rev. (Dartmouth-Hitchcock Clinic), Ser. 2009, 5.00%, due 8/1/19
   
2,672
ß
 
 
1,700
   
New Hampshire Hlth. & Ed. Fac. Au. Rev. (Univ. Sys. of New Hampshire) (Unrefunded Bal.), Ser. 2001, (AMBAC Insured), 5.38%, due 7/1/17
   
1,769
ß
 
 
4,000
   
Strafford Co. G.O. (TANS), Ser. 2010-A, 6.50%, due 12/31/10
   
4,021
   
           
     
8,462
   
   
   
New Jersey (2.9%)
 
 
6,900
   
New Jersey Ed. Fac. Au. Rev. (Stevens Institute of Technology), Ser. 2002-C, 5.25%, due 7/1/17 Pre-Refunded 7/1/13
   
7,742
ß
 
   
   
New York (8.6%)
 
 
740
   
Lyons Comm. Hlth. Initiatives Corp. Fac. Rev., Ser. 2004, 5.50%, due 9/1/14
   
794
   
 
3,250
   
New York City G.O., Ser. 2002-C, 5.50%, due 8/1/15
   
3,567
   
 
2,580
   
New York City IDA Civic Fac. Rev. (Lycee Francais de New York Proj.), Ser. 2002-A, (ACA Insured), 5.50%, due 6/1/14
   
2,747
ß
 
 
2,750
   
New York City IDA Liberty Rev. (7 World Trade Ctr., LLC Proj.), Ser. 2005-A, 6.25%, due 3/1/15
   
2,767
ß
 
 
1,100
   
New York Liberty Dev. Corp. Rev. (Nat'l Sports Museum Proj.), Ser. 2006-A, 6.13%, due 2/15/19
   
3
#‡
 
 
1,700
   
New York St. Dorm. Au. Personal Income Tax Rev., Ser. 2003-A,
5.38%, due 3/15/20 Pre-Refunded 3/15/13
   
1,909
   
 
4,000
   
New York St. Dorm. Au. Rev. Non St. Supported Debt (Mount Sinai Sch. of Medicine), Ser. 2009, 5.25%, due 7/1/33
   
4,093
ß
 
 
 
See Notes to Schedule of Investments
 
13

 
 
 
PRINCIPAL AMOUNT
 
(000's omitted)
 
SECURITY@
 
 
 
VALUE
 
(000's omitted)
 
                   
$
2,000
   
New York St. HFA Rev. (Affordable Hsg.), Ser. 2009-B, 4.85%, due 11/1/41
 
$
1,987
   
 
2,000
   
New York St. Urban Dev. Corp. Rev., Ser. 2008-D, 5.25%, due 1/1/20
   
2,217
   
 
3,000
   
Tobacco Settlement Fin. Corp., Ser. 2003-B-1C, 5.50%, due 6/1/21
   
3,223
   
           
     
23,307
   
       
       
North Carolina (2.5%)
 
 
5,250
   
North Carolina Muni. Pwr. Agcy. Number 1 Catawba Elec. Rev., Ser. 2009-A, 5.00%, due 1/1/26
   
5,579
   
 
1,000
   
Oak Island Enterprise Sys. Rev., Ser. 2009, (Assured Guaranty Insured), 5.63%, due 6/1/24
   
1,060
   
           
     
6,639
   
       
       
North Dakota (1.6%)
 
 
4,100
   
Fargo Hlth. Sys. Rev. (Meritcare Obligated Group), Ser. 2002-A, (AMBAC Insured), 5.63%, due 6/1/17
   
4,223
ß
 
       
       
Ohio (1.4%)
 
 
3,760
   
Ohio St. Air Quality Dev. Au. Env. Imp. Ref. Rev. (USX Corp. Proj.), Ser. 1995, 5.00%, due 11/1/15 Putable 11/1/11
   
3,883
µß
 
       
       
Pennsylvania (5.2%)
 
 
1,765
   
Cumberland Co. West Shore Area Au. Hosp. Rev. (Holy Spirit Hosp. of the Sisters of Christian Charity Proj.), Ser. 2001, 6.05%, due 1/1/19
   
1,793
ß
 
 
565
   
Delaware River Joint Toll Bridge Comm. Sys. Rev., Ser. 2003, 5.25%, due 7/1/18 Pre-Refunded 7/1/13
   
638
   
 
435
   
Delaware River Joint Toll Bridge Comm. Sys. Rev. (Unrefunded Bal.), Ser. 2003, 5.25%, due 7/1/18
   
459
   
 
2,000
   
Lancaster Co. Hosp. Au. Rev. (Brethren Village Proj.), Ser. 2008-A, 6.10%, due 7/1/22
   
1,996
ß
 
 
5,000
   
Montgomery Co. Higher Ed. & Hlth. Au. Hosp. Rev. (Abington Mem. Hosp. Proj.), Ser. 2002-A, 5.00%, due 6/1/19
   
5,062
ß
 
 
2,000
   
Philadelphia Arpt. Ref. Rev. (Philadelphia Arpt. Sys.), Ser. 1998,
(National Public Finance Guarantee Corp. Insured), 5.38%, due 6/15/14
   
2,008
   
 
1,480
   
Sayre Hlth. Care Fac. Au. Rev., (Guthrie Hlth. Proj.), Ser. 2002-A,
5.75%, due 12/1/21 Pre-Refunded 12/1/11
   
1,614
ß
 
 
520
   
Sayre Hlth. Care Fac. Au. Rev. (Unrefunded Bal.), (Guthrie Hlth. Proj.), Ser. 2002-A, 5.75%, due 12/1/21
   
536
ß
 
           
     
14,106
   
       
       
Puerto Rico (1.4%)
 
 
750
   
Puerto Rico Elec. Pwr. Au. Pwr. Rev., Ser. 2010-XX, 5.25%, due 7/1/35
   
756
   
 
3,000
   
Puerto Rico Sales Tax Fin. Corp. Sales Tax Rev., Subser. 2009-A, 5.00%, due 8/1/39 Putable 8/1/11
   
3,133
µ
 
           
     
3,889
   
       
       
South Carolina (1.3%)
 
 
1,100
   
Charleston Co. Sch. Dist. G.O., Ser. 2001, (AGM Insured), 5.00%, due 2/1/18
   
1,138
   
 
2,140
   
Mt. Pleasant Town Waterworks & Swr. Sys. Ref. & Imp. Rev., Ser. 2002,
(National Public Finance Guarantee Corp. Insured), 5.25%, due 12/1/17
   
2,274
   
           
     
3,412
   
Tennessee (2.3%)
 
 
1,655
   
Knox Co. Hlth. Ed. & Hsg. Fac. Board Hosp. Fac. Rev., Ser. 2002-A, (AGM Insured), 5.50%, due 1/1/18 Pre-Refunded 1/1/13
   
1,845
   
 
1,360
   
Knox Co. Hlth. Ed. & Hsg. Fac. Board Hosp. Fac. Rev. (Unrefunded Bal.), Ser. 2002-A, (AGM Insured), 5.50%, due 1/1/18
   
1,408
   
 
2,705
   
Memphis-Shelby Co. Arpt. Au. Arpt. Rev., Ser. 2010-B, 5.50%, due 7/1/19
   
2,858
   
     
6,111
   
 
 
See Notes to Schedule of Investments
 
14

 
 
 
PRINCIPAL AMOUNT
 
(000's omitted)
 
SECURITY@
 
 
 
VALUE
 
(000's omitted)
 
       
Texas (15.4%)
 
$
4,145
   
Anson Ed. Fac. Corp. Std. Hsg. Rev. (Univ. of Texas at Dallas-Waterview Park Proj.), Ser. 2002, (ACA Insured), 5.00%, due 1/1/23
 
$
2,832
ß
 
 
795
   
Austin Convention Enterprises, Inc. Convention Ctr. Hotel First Tier Rev., Ser. 2001-A, 6.38%, due 1/1/16 Pre-Refunded 1/1/11
   
818
   
 
3,600
   
Corpus Christi Tax & Muni. Hotel Occupancy Tax G.O., Ser. 2002, (AGM Insured), 5.50%, due 9/1/17
   
3,804
   
 
1,935
   
Dallas-Fort Worth Int'l Arpt. Imp. Rev., Ser. 2004-B, (AGM Insured), 5.50%, due 11/1/18
   
2,047
   
 
1,750
   
Ector Co. Hosp. Dist. Hosp. Rev., Ser. 2002-A, 5.63%, due 4/15/16
   
1,755
   
 
1,745
   
Ector Co. Hosp. Dist. Hosp. Rev., Ser. 2002-A, 5.63%, due 4/15/17
   
1,750
   
 
2,300
   
Harris Co. Perm. Imp. Ref. G.O., Ser. 2008-B, 5.00%, due 10/1/19 Pre-Refunded 10/1/18
   
2,701
   
 
2,900
   
Harris Co. Toll Road Sr. Lien Rev., Ser. 2008-B, 5.00%, due 8/15/33
   
3,021
   
 
2,210
   
Harris Co. Toll Road Sr. Lien Rev., (Unrefunded Bal.), Ser. 2002, (AGM Insured), 5.38%, due 8/15/16
   
2,385
   
 
610
   
HFDC Ctr. Texas, Inc. Retirement Fac. Rev., Ser. 2006-A, 5.25%, due 11/1/15
   
585
ß
 
 
3,235
   
Houston Arpt. Sys. Sub. Lien. Ref. Rev., Ser. 2001-A, (National Public Finance Guarantee Corp. Insured), 5.50%, due 7/1/16
   
3,279
   
 
1,000
   
Houston Pub. Imp. Ref. G.O., Ser. 2008-A, 5.00%, due 3/1/20
   
1,111
   
 
4,780
   
North Central Hlth. Fac. Dev. Corp. Hosp. Ref. Rev. (Baylor Hlth. Care Sys. Proj.), Ser. 1998, 5.10%, due 5/15/13
   
4,794
ß
 
 
3,000
   
North Texas Tollway Au. Dallas North Tollway Sys. Rev., Ser. 2005-C, 6.00%, due 1/1/23
   
3,292
   
 
950
   
Northwest Texas Independent Sch. Dist. Sch. Bldg., Ser. 2002, (PSF Insured), 5.50%, due 8/15/17 Pre-Refunded 2/15/13
   
1,067
   
 
50
   
Northwest Texas Independent Sch. Dist. Sch. Bldg. (Unrefunded Bal.), Ser. 2002, (PSF Insured), 5.50%, due 8/15/17
   
55
   
 
20
   
San Antonio Cert. of Oblig. G.O., Ser. 2002, 5.00%, due 2/1/14 Pre-Refunded 2/1/12
   
21
   
 
500
   
San Leanna Ed. Fac. Corp. Higher Ed. Ref. Rev., (St. Edwards Univ. Proj.), Ser. 2007, 5.00%, due 6/1/19
   
520
ß
 
 
910
   
Southmost Reg. Wtr. Au. Wtr. Supply Contract Rev., Ser. 2002, (National Public Finance Guarantee Corp. Insured), 5.50%, due 9/1/19 Pre-Refunded 9/1/12
   
1,009
   
 
1,000
   
Southmost Reg. Wtr. Au. Wtr. Supply Contract Rev. (Unrefunded Bal.), Ser. 2002, (National Public Finance Guarantee Corp. Insured), 5.50%, due 9/1/19
   
1,040
   
 
235
   
Texas Std. Hsg. Corp. Std. Hsg. Rev. (Midwestern St. Univ. Proj.), Ser. 2002, 5.50%, due 9/1/12
   
247
   
 
1,000
   
Trinity River Au. Imp. & Ref. Rev. (Tarrant Co. Wtr. Proj.), Ser. 2003,
(National Public Finance Guarantee Corp. Insured), 5.50%, due 2/1/16 Pre-Refunded 2/1/13
   
1,120
   
 
1,085
   
Tyler Hlth. Fac. Dev. Corp. Hosp. Rev. (Mother Frances Hosp. Reg. Hlth. Care Ctr. Proj.), Ser. 2003, 5.25%, due 7/1/13
   
1,134
ß
 
 
1,175
   
West Harris Co. Reg. Wtr. Au. Sys. Wtr. Rev., Ser. 2009, 5.00%, due 12/15/35
   
1,178
   
           
     
41,565
   
       
       
Utah (1.7%)
 
 
3,000
   
Salt Lake Co. Hosp. Rev. (IHC Hlth. Svc., Inc.), Ser. 2001, (AMBAC Insured), 5.40%, due 2/15/28
   
3,221
ß
 
 
1,200
   
Uintah Co. Muni. Bldg. Au. Lease Rev., Ser. 2008, 5.25%, due 6/1/20
   
1,299
   
           
     
4,520
   
       
       
Virginia (1.0%)
 
 
2,620
   
Peninsula Ports Au. Res. Care Fac. Ref. Rev. (VA Baptist Homes), Ser. 2006-C, 5.25%, due 12/1/21
   
1,786
ß
 
 
1,000
   
Virginia Beach Dev. Au. Residential Care Fac. Mtge. Ref. Rev. (Westminster-Canterbury of Hampton Roads, Inc.), Ser. 2005, 5.00%, due 11/1/22
   
917
ß
 
           
     
2,703
   
   
   
Washington (6.8%)
 
 
6,250
   
Port of Seattle Sub. Lien Rev., Ser. 2002-B, (National Public Finance Guarantee Corp. Insured), 5.50%, due 9/1/16
   
6,457
   
 
1,000
   
Skagit Co. Pub. Hosp. Dist. Number 1 Ref. Rev., Ser. 2007, 5.63%, due 12/1/25
   
1,005
   
 
1,000
   
Skagit Co. Pub. Hosp. Dist. Ref. Rev., Ser. 2003, 6.00%, due 12/1/23
   
1,022
   
 
1,625
   
Skagit Co. Pub. Hosp. Dist. Ref. Rev., Ser. 2003, 6.00%, due 12/1/18
   
1,707
   
 
2,500
   
Tacoma Wtr. Sys. Rev., Ser. 2001, (National Public Finance Guarantee Corp. Insured), 5.13%, due 12/1/19
   
2,589
   
 
 
See Notes to Schedule of Investments
 
15

 
 
 
PRINCIPAL AMOUNT
 
(000's omitted)
 
SECURITY@
 
 
 
VALUE
 
(000's omitted)
 
                   
$
2,525
   
Washington St. Higher Ed. Fac. Au. Ref. Rev. (Whitworth Univ. Proj.), Ser. 2009, 5.38%, due 10/1/29
 
$
2,548
ß
 
 
3,125
   
Washington St. Hlth. Care Fac. Au. Rev. (Yakima Valley Mem. Hosp. Assoc.), Ser. 2002, (ACA Insured), 5.00%, due 12/1/17
   
3,105
ß
 
           
     
18,433
   
   
   
West Virginia (0.4%)
 
 
1,000
   
West Virginia Sch. Bldg. Au. Excess Lottery Rev., Ser. 2008, 5.00%, due 7/1/19
   
1,095
   
   
   
Wisconsin (6.9%)
 
 
995
   
Badger Tobacco Asset Securitization Corp. Tobacco Settlement Asset-Backed Rev., Ser. 2002, 6.13%, due 6/1/27
   
1,067
   
 
1,900
   
Univ. of Wisconsin Hosp. & Clinics Au. Hosp. Rev., Ser. 2002-B, 5.50%, due 4/1/12
   
1,981
   
 
1,370
   
Wisconsin St. Hlth. & Ed. Fac. Au. Rev. (Aurora Med. Group, Inc. Proj.), Ser. 1996, (AGM Insured), 6.00%, due 11/15/11
   
1,436
ß
 
 
1,100
   
Wisconsin St. Hlth. & Ed. Fac. Au. Rev. (Beloit College), Ser. 2010-A, 6.13%, due 6/1/35
   
1,104
ß
 
 
1,225
   
Wisconsin St. Hlth. & Ed. Fac. Au. Rev. (Beloit College), Ser. 2010-A, 6.13%, due 6/1/39
   
1,229
ß
 
 
1,000
   
Wisconsin St. Hlth. & Ed. Fac. Au. Rev. (Franciscan Sisters Hlth. Care), Ser. 2007, 5.00%, due 9/1/14
   
1,036
ß
 
 
2,780
   
Wisconsin St. Hlth. & Ed. Fac. Au. Rev. (Kenosha Hosp. & Med. Ctr., Inc. Proj.), Ser. 1999,
5.50%, due 5/15/15
   
2,784
ß
 
 
5,000
   
Wisconsin St. Hlth. & Ed. Fac. Au. Rev. (Marquette Univ.), Ser. 2008-B3, 5.00%, due 10/1/30
   
5,011
ß
 
 
3,000
   
Wisconsin St. Hlth. & Ed. Fac. Au. Rev. (Meriter Hosp., Inc.), Ser. 2009, 5.63%, due 12/1/29
   
3,116
ß
 
           
     
18,764
   
       
       
Wyoming (1.8%)
 
 
4,895
   
Wyoming Comm. Dev. Au. Hsg. Rev., Ser. 2006-6, 5.00%, due 12/1/21
   
4,920
   
   
   
Other (0.8%)
 
 
3,000
   Non-Profit Pfd. Fdg. Trust I, Ser. 2006-C, 4.72%, due 9/15/37
   
2,238
#
 
                   
   
   Total Investments (164.4%) (Cost $433,843)
   
443,916
##
 
                   
   
   Cash, receivables and other assets, less liabilities (2.0%)
   
5,536
   
                   
   
   Liquidation Value of Auction Market Preferred Shares [(66.4%)]
   
(179,400
)
 
                   
   
   Total Net Assets Applicable to Common Shareholders (100.0%)
 
$
270,052
   
 
 
 
 
 
 
 
 
 
 
 
 
See Notes to Schedule of Investments
 
16

 
 
Schedule of Investments New York Intermediate Municipal Fund Inc.
 
(Unaudited)
 
PRINCIPAL AMOUNT
 
(000's omitted)
 
SECURITY@
 
 
 
VALUE
 
(000's omitted)
 
       
Arizona (0.6%)
     
$
500
   
Verrado Comm. Fac. Dist. Number 1 G.O., Ser. 2003, 6.15%, due 7/15/17
 
$
476
   
       
       
California (4.0%)
     
 
3,115
   
Corona-Norca Unified Sch. Dist. G.O. Cap. Appreciation (Election 2006), Ser. 2009-C, (AGM Insured), 0.00%, due 8/1/24
   
1,433
   
 
1,470
   
Pico Rivera Pub. Fin. Au. Lease Rev., Ser. 2009, 4.75%, due 9/1/25
   
1,462
   
           
     
2,895
   
       
       
Guam (0.7%)
     
 
500
   
Guam Gov't Waterworks Au. Wtr. & Wastewater Sys. Rev., Ser. 2005, 5.50%, due 7/1/16
   
518
   
       
       
Illinois (1.2%)
     
 
910
   
Bartlett Tax Increment Ref. Rev. (Quarry Redev. Proj.), Ser. 2007, 5.35%, due 1/1/17
   
843
   
       
       
Louisiana (1.4%)
     
 
1,000
   
Tobacco Settlement Fin. Corp. Tobacco Settlement Asset-Backed Rev., Ser. 2001-B, 5.50%, due 5/15/30
   
1,000
   
       
       
Nevada (1.5%)
     
 
1,000
   
Las Vegas Redev. Agcy. Tax Increment Rev., Ser. 2009-A, 7.50%, due 6/15/23
   
1,128
   
       
       
New York (145.8%)
     
 
3,000
   
Albany IDA Civic Fac. Rev. (Charitable Leadership Foundation Ctr. for Med. Science Proj.), Ser. 2002-A, 6.00%, due 7/1/19
   
2,572
ß
 
 
500
   
Cattaraugus Co. IDA Civic Fac. Rev. (St. Bonaventure Univ. Proj.), Ser. 2006-A, 5.00%, due 5/1/23
   
496
ß
 
 
1,000
   
Dutchess Co. IDA Civic Fac. Ref. Rev. (Marist College Proj.), Ser. 2003-A, 5.15%, due 7/1/17
   
1,055
ß
 
 
1,000
   
Erie Co. IDA Sch. Fac. Rev. (Buffalo City Sch. Dist.), Ser. 2009-A, 5.25%, due 5/1/25
   
1,085
   
 
1,500
   
Hempstead Town Local Dev. Corp. Rev. (Molloy College Proj.), Ser. 2009, 5.75%, due 7/1/23
   
1,645
ß
 
 
1,050
   
Long Island Pwr. Au. Elec. Sys. Gen. Rev., Ser. 2006-E, (FGIC Insured), 5.00%, due 12/1/21
   
1,163
   
 
855
   
Lyons Comm. Hlth. Initiatives Corp. Fac. Rev., Ser. 2004, 5.50%, due 9/1/14
   
917
   
 
1,000
   
Monroe Co. IDA Civic Fac. Rev. (Highland Hosp. Rochester), Ser. 2005, 5.00%, due 8/1/15
   
1,053
ß
 
 
980
   
Monroe Co. IDA Std. Hsg. Rev. (Collegiate Hsg. Foundation - Rochester Institute of Technology Proj.), Ser. 1999-A, 5.25%, due 4/1/19
   
933
ß
 
 
1,000
   
Monroe Co. Newpower Corp. Pwr. Fac. Rev., Ser. 2003, 5.10%, due 1/1/16
   
1,020
   
 
1,000
   
Monroe Co. Pub. Imp. Ref. G.O., Ser. 1996, 6.00%, due 3/1/13
   
1,088
   
 
1,125
   
Nassau Co. IDA Continuing Care Retirement (The Amsterdam Harborside), Ser. 2007-A, 5.88%, due 1/1/18
   
1,125
ß
 
 
1,000
   
New York City G.O., Ser. 2002-A, 5.75%, due 8/1/16
   
1,085
   
 
100
   
New York City G.O., Ser. 2006-I3, (LOC: Bank of America), 0.26%, due 5/3/10
   
100
µ
 
 
950
   
New York City G.O., Ser. 2009-B, 5.00%, due 8/1/22
   
1,045
   
 
1,000
   
New York City G.O., Ser. 2009-E, 5.00%, due 8/1/21
   
1,107
   
 
1,410
   
New York City Hlth. & Hosp. Corp. Rev., Ser. 2002-A, (AGM Insured), 5.50%, due 2/15/13
   
1,496
   
 
4,000
   
New York City Hsg. Dev. Corp. Multi-Family Hsg. Rev., Ser. 2002-E2, 5.05%, due 11/1/23
   
4,016
   
 
1,000
   
New York City IDA Civic Fac. Rev. (Lycee Francais de New York Proj.), Ser. 2002-A, (ACA Insured), 5.50%, due 6/1/15
   
1,056
ß
 
 
1,030
   
New York City IDA Civic Fac. Rev. (Lycee Francais de New York Proj.), Ser. 2002-A, (ACA Insured), 5.50%, due 6/1/17
   
1,068
ß
 
 
2,920
   
New York City IDA Civic Fac. Rev. (Packer Collegiate Institute Proj.), Ser. 2002, (AMBAC Insured), 5.00%, due 6/1/22
   
3,014
ß
 
 
750
   
New York City IDA Liberty Rev. (7 World Trade Ctr., LLC Proj.), Ser. 2005-A, 6.25%, due 3/1/15
   
754
ß
 
 
2,000
   
New York City IDA Spec. Fac. Rev. (Term. One Group Assoc. Proj.), Ser. 2005, 5.50%, due 1/1/19 Putable 1/1/16
   
2,084
µß
 
 
960
   
New York City Muni. Wtr. Fin. Au. Wtr. & Swr. Sys. Rev., Ser. 1992-A, (AMBAC Insured), 5.88%, due 6/15/13
   
1,102
   
 
 
See Notes to Schedule of Investments
 
17

 
 
PRINCIPAL AMOUNT
 
(000's omitted)
 
SECURITY@
 
 
 
VALUE
 
(000's omitted)
 
                   
$
2,025
   
New York City Transitional Fin. Au. Ref. Rev., Ser. 2002-C, (AMBAC Insured), 5.25%, due 8/1/17
 
$
2,176
   
 
660
   
New York Liberty Dev. Corp. Rev. (Nat'l Sports Museum Proj.), Ser. 2006-A, 6.13%, due 2/15/19
   
2
#‡
 
 
2,000
   
New York St. Dorm. Au. Court Fac. Lease Rev. (New York City Issue), Ser. 2003-A, 5.50%, due 5/15/17 Pre-Refunded 5/15/13
   
2,268
   
 
1,675
   
New York St. Dorm. Au. Insured Rev. (Long Island Univ.), Ser. 2003-A, (Radian Insred), 5.25%, due 9/1/15
   
1,722
ß
 
 
1,600
   
New York St. Dorm. Au. Insured Rev. (The Culinary Institute of America), Ser. 1999, (National Public Finance Guarantee Corp. Insured), 5.38%, due 7/1/15
   
1,621
ß
 
 
3,000
   
New York St. Dorm. Au. Ref. Rev. (North Gen. Hosp. Proj.), Ser. 2003, 5.75%, due 2/15/17
   
3,199
ß
 
 
250
   
New York St. Dorm. Au. Rev. (Brookdale Hosp. Med. Ctr.), Ser. 1998-J, 5.20%, due 2/15/16
   
251
ß
 
 
1,125
   
New York St. Dorm. Au. Rev. (City Univ. Sys. Proj.), Ser. 1995-A, 5.63%, due 7/1/16
   
1,270
   
 
1,000
   
New York St. Dorm. Au. Rev. (Lenox Hill Hosp. Oblig. Group Proj.), Ser. 2001, 5.75%, due 7/1/14
   
1,034
ß
 
 
1,000
   
New York St. Dorm. Au. Rev. (Lenox Hill Hosp. Oblig. Group Proj.), Ser. 2001, 5.75%, due 7/1/16
   
1,026
ß
 
 
2,000
   
New York St. Dorm. Au. Rev. (Mount Sinai NYU Hlth.), Ser. 2000-C, 5.50%, due 7/1/26
   
2,005
ß
 
 
1,980
   
New York St. Dorm. Au. Rev. (New York Med. College Proj.), Ser. 1998,
(National Public Finance Guarantee Corp. Insured), 5.00%, due 7/1/21
   
1,981
ß
 
 
500
   
New York St. Dorm. Au. Rev. (North Shore-Long Island Jewish Oblig. Group), Ser. 2003, 5.00%, due 5/1/18
   
512
ß
 
 
2,855
   
New York St. Dorm. Au. Rev. (Rivington House Hlth. Care Fac.), Ser. 2002, (SONYMA Insured), 5.25%, due 11/1/15
   
3,054
ß
 
 
2,410
   
New York St. Dorm. Au. Rev. (Rochester Institute of Technology Proj.), Ser. 2002-A, (AMBAC Insured), 5.25%, due 7/1/19
   
2,562
ß
 
 
1,000
   
New York St. Dorm. Au. Rev. (Sch. Dist. Financing Proj.), Ser. 2002-A
(National Public Finance Guarantee Corp. Insured), 5.75%, due 10/1/17
   
1,066
   
 
3,000
   
New York St. Dorm. Au. Rev. (SS Joachim & Anne Residence Proj.), Ser. 2002, (LOC: Allied Irish Bank), 4.60%, due 7/1/16
   
2,965
ß
 
 
500
   
New York St. Dorm. Au. Rev. Non St. Supported Debt (Manhattan Marymount College), Ser. 2009, 5.00%, due 7/1/24
   
503
ß
 
 
900
   
New York St. Dorm. Au. Rev. Non St. Supported Debt (Montefiore Med. Ctr.), Ser. 2008, (FHA Insured), 5.00%, due 8/1/21
   
951
ß
 
 
1,595
   
New York St. Dorm. Au. Rev. Non St. Supported Debt (Mount Sinai Sch. of Medicine), Ser. 2009, 5.25%, due 7/1/24
   
1,663
ß
 
 
1,000
   
New York St. Dorm. Au. Rev. Non St. Supported Debt (NYU Hosp. Ctr.), Ser. 2006-A, 5.00%, due 7/1/20
   
1,020
ß
 
 
1,085
   
New York St. Dorm. Au. Rev. Non St. Supported Debt (NYU Hosp. Ctr.), Ser. 2007-B, 5.25%, due 7/1/24
   
1,112
ß
 
 
2,000
   
New York St. Dorm. Au. Rev. Non St. Supported Debt (St. John's Univ.), Ser. 2007-C, (National Public Finance Guarantee Corp. Insured), 5.25%, due 7/1/19
   
2,221
ß
 
 
2,600
   
New York St. Dorm. Au. Rev. St. Personal Income Tax Rev., Ser. 2003-A,
5.38%, due 3/15/17 Pre-Refunded 3/15/13
   
2,920
   
 
5,000
   
New York St. Energy Res. & Dev. Au. Fac. Rev. (Consolidated Edison Co. of New York, Inc. Proj.), Ser. 2001, 4.70%, due 6/1/36 Putable 10/1/12
   
5,006
µß
 
 
1,615
   
New York St. HFA Rev. (Affordable Hsg.), Ser. 2009-B, 4.50%, due 11/1/29
   
1,621
   
 
2,000
   
New York St. Mtge. Agcy. Homeowner Mtge. Rev., Ser. 1997-67, 5.70%, due 10/1/17
   
2,001
   
 
1,230
   
New York St. Muni. Bond Bank Agcy., Ser. 2009-B1, 5.00%, due 12/15/23
   
1,332
   
 
1,295
   
New York St. Muni. Bond Bank Agcy., Ser. 2009-B1, 5.00%, due 12/15/24
   
1,394
   
 
1,475
   
New York St. Thruway Au. Hwy. & Bridge, Ser. 2007-B, 5.00%, due 4/1/20
   
1,623
   
 
1,090
   
New York St. Thruway Au. Hwy. & Bridge, Ser. 2009-B, 5.00%, due 4/1/19
   
1,241
   
 
250
   
New York St. Urban Dev. Corp. Correctional & Youth Fac. Svc. Rev., Ser. 2002-C, 4.00%, due 1/1/20 Putable 1/1/11
   
255
µ
 
 
1,250
   
New York St. Urban Dev. Corp. Ref. Rev., Ser. 2008-D, 5.25%, due 1/1/20
   
1,385
   
 
965
   
New York St. Urban Dev. Corp. Rev. (St. Personal Income Tax), Ser. 2008-A1, 5.00%, due 12/15/23
   
1,056
   
 
1,375
   
New York Tobacco Settlement Fin. Corp., Ser. 2003-B1C, 5.50%, due 6/1/22
   
1,472
   
 
2,000
   
Niagara Co. IDA Civic Fac. Rev. (Niagara Univ. Proj.), Ser. 2001-A, (Radian Insured), 5.50%, due 11/1/16
   
2,094
ß
 
 
1,000
   
Onondaga Co. Trust Cultural Res. Rev. (Syracuse Univ. Proj.), Ser. 2010-B, 5.00%, due 12/1/19
   
1,144
ß
 
 
3,000
   
Port Au. of NY & NJ Rev., Ser. 2002, (AMBAC Insured), 5.50%, due 12/15/12
   
3,294
   
 
1,000
   
Saratoga Co. IDA Civic Fac. Rev. (Saratoga Hosp. Proj.), Ser. 2007-B, 5.00%, due 12/1/22
   
980
ß
 
 
1,570
   
Triborough Bridge & Tunnel Au. Oblig., Ser. 1998-A,
(National Public Finance Guarantee Corp. Insured), 4.75%, due 1/1/24
   
1,582
   
 
2,000
   
Triborough Bridge & Tunnel Au. Rev., Ser. 2008-D, 5.00%, due 11/15/23
   
2,196
   
 
1,535
   
Ulster Co. Res. Rec. Agcy. Solid Waste Sys. Ref. Rev., Ser. 2002, (AMBAC Insured), 5.25%, due 3/1/16
   
1,636
   
 
1,405
   
United Nations Dev. Corp. Rev., Ser. 2009-A, 5.00%, due 7/1/22
   
1,513
   
 
 
See Notes to Schedule of Investments
 
18

 
 
 
PRINCIPAL AMOUNT
 
(000's omitted)
 
SECURITY@
 
 
 
VALUE
 
(000's omitted)
 
                   
$
1,000
   
Westchester Co. IDA Continuing Care Retirement Comm. Rev. (Kendal on Hudson Proj.), Ser. 2003-B, 6.50%, due 1/1/34 Putable 1/1/13
 
$
1,003
µß
 
 
855
   
Yonkers IDA Civic Fac. Rev. (Comm. Dev. Properties-Yonkers, Inc.), Ser. 2001-A, 6.25%, due 2/1/16 Pre-Refunded 2/1/11
   
891
ß
 
           
     
105,902
   
   
   
Puerto Rico (9.1%)
 
 
1,500
   
Puerto Rico Commonwealth Gov't Dev. Bank, Ser. 1985,
(National Public Finance Guarantee Corp. Insured), 4.75%, due 12/1/15
   
1,559
   
 
1,050
   
Puerto Rico Commonwealth Ref. G.O. (Pub. Imp.), Ser. 2001-A, (XLCA Insured), 5.50%, due 7/1/17
   
1,143
   
 
750
   
Puerto Rico Elec. Pwr. Au. Pwr. Rev., Ser. 2010-XX, 5.25%, due 7/1/35
   
756
   
 
1,060
   
Puerto Rico Ind. Tourist Ed. Med. & Env. Ctrl. Fac. Rev. (Polytechnic Univ. of Puerto Rico Proj.), Ser. 2002-A, (ACA Insured), 5.25%, due 8/1/16
   
1,063
ß
 
 
1,000
   
Puerto Rico Sales Tax Financing Corp. Sales Tax Rev., Ser. 2009-A, 5.00%, due 8/1/24
   
1,041
   
 
1,000
   
Puerto Rico Sales Tax Financing Corp. Sales Tax Rev., Ser. 2009-A, 5.00%, due 8/1/39 Putable 8/1/11
   
1,045
µ
 
           
     
6,607
   
                   
   
  Total Investments (164.3%) (Cost $117,661)
   
119,369
##
 
                   
   
  Cash, receivables and other assets, less liabilities (2.1%)
   
1,514
   
                   
   
  Liquidation Value of Auction Market Preferred Shares [(66.4%)]
   
(48,250
)
 
                   
   
  Total Net Assets Applicable to Common Shareholders (100.0%)
 
$
72,633
   
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
See Notes to Schedule of Investments
 
19

 
 
 
Notes to Schedule of Investments (Unaudited)
 
The value of investments in securities by Neuberger Berman California Intermediate Municipal Fund Inc. ("California"), Neuberger Berman Intermediate Municipal Fund Inc. ("Intermediate"), and Neuberger Berman New York Intermediate Municipal Fund Inc. ("New York") (individually a "Fund", and collectively, the "Funds") is determined by Neuberger Berman Management LLC ("Management") primarily by obtaining valuations from independent pricing services based on readily available bid quotations, or if quotations are not available, by methods which include considerations such as: yields or prices of securities of comparable quality, coupon, maturity and type; indications as to values from dealers; and general market conditions. Management has developed a process to periodically review information provided by independent pricing services. If a valuation is not available from an independent pricing service or if Management has reason to believe that the valuation does not represent the amount a Fund might reasonably expect to receive on a current sale, the Fund seeks to obtain quotations from principal market makers. If such quotations are not readily available, the security is valued using methods the Fund's Board of Directors (each Fund's Board of Directors, a "Board") has approved on the belief that they reflect fair value. Numerous factors may be considered when determining the fair value of a security, including available analyst, media or other reports, trading in futures or ADRs and whether the issuer of the security being fair valued has other securities outstanding. Fair value prices are necessarily estimates, and there is no assurance that such a price will be at or close to the price at which the security is next quoted or next trades. Short-term debt securities with less than 60 days until maturity may be valued at cost which, when combined with interest earned, is expected to approximate market value.
   
  In accordance with Accounting Standards Codification ("ASC") 820 "Fair Value Measurements and Disclosures" ("ASC 820"), all investments held by a fund are carried at "fair value" as defined by ASC 820. Fair value is defined as the price that a fund would receive upon selling an investment in an orderly transaction to an independent buyer in the principal or most advantageous market for the investment under current market conditions. Various inputs, including the volume and level of activity for the asset or liability in the market, are considered in determining the value of the Funds' investments, some of which are discussed above. Significant management judgement may be necessary to estimate fair value in accordance with ASC 820.
   
  In addition to defining fair value, ASC 820 established a three-tier hierarchy of inputs to establish a classification of fair value measurements for disclosure purposes. The three-tier hierarchy of inputs is summarized in the three broad Levels listed below.
   
    •  Level 1 – quoted prices in active markets for identical investments
    •  Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, amortized cost, etc.)
    •  Level 3 – significant unobservable inputs (including the Funds' own assumptions in determining the fair value of investments)
       
   
The inputs or methodology used for valuing an investment are not necessarily an indication of the risk associated with investing in those securities.
   
  The following is a summary, by category of Level, of inputs used to value the Funds' investments as of April 30, 2010:
 
 
Asset Valuation Inputs                                
                                   
(000's omitted)  
Level 1
     
Level 2
     
Level 3
     
Total
   
                                   
California                                
                                   
Investments:                                
                                   
Municipal Notes^
 
$
   
 
$138,820
   
 
$
   
 
$138,820
   
                                   
Total Investments
 
     
138,820
     
     
138,820
   
 
 
See Notes to Financial Statements
 
20

 
 
 
Notes to Schedule of Investments (Unaudited) (cont'd)
 
(000's omitted)
 
Level 1     
Level 2
Level 3
 
Total
 
                 
Intermediate
 
   
Investments:
 
 
Municipal Notes^
 
 
$
   
 
$443,916
   
 
$
   
 
$443,916
   
                                   
Total Investments
   
     
443,916
     
     
443,916
   
                                   
New York
 
   
Investments:
 
   
Municipal Notes^
   
     
119,369
     
     
119,369
   
                                   
Total Investments
   
     
119,369
     
     
119,369
   
 
^  The Schedule of Investments provides information on the state categorization for the portfolio.
##  At April 30, 2010, selected fund information on a U.S. federal income tax basis was as follows:
 
(000's omitted)    
Cost
   
Gross
Unrealized
Appreciation
     
Gross
Unrealized
Depreciation
     
Net
Unrealized
Appreciation
(Depreciation)
   
                                   
California
 
 
$ 135,895
   
 
$   3,996
   
 
$   1,071
   
 
$   2,925
   
                                   
Intermediate
   
433,843
     
16,831
     
6,758
     
10,073
   
                                   
New York
   
117,664
     
3,163
     
1,458
     
1,705
   
 
@    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, Inc. or, where not rated, are determined by Management to be of comparable quality. Approximately 72%, 59%, and 64% of the municipal securities held by California, Intermediate, and New York, respectively, have credit enhancement features backing them, on which a Fund may rely, 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 a Fund the right to sell back the issue on the date specified.
 
ß      Security is guaranteed by the corporate or non-profit obligor.
 
µ     Floating rate securities are securities whose yields vary with a designated market index or market rate. These securities are shown at their current rates as of April 30, 2010.
 
a     Security is subject to a guarantee provided by Bayerische Landesbank, backing 100% of the total principal.
 
b     Security is subject to a guarantee provided by Societe Generale, backing 100% of the total principal.
 
c     Currently a zero coupon security; will convert to 5.50% on August 1, 2021.
 
d     Currently a zero coupon security; will convert to 6.38% on August 1, 2016.
 
e     Currently a zero coupon security; will convert to 6.38% on August 1, 2019.
 
f     Currently a zero coupon security; will convert to 6.13% on August 1, 2023.
 
g    Currently a zero coupon security; will convert to 6.88% on August 1, 2019.
 
 
See Notes to Financial Statements
 
21

 
 
 
Notes to Schedule of Investments (Unaudited) (cont'd)
 
 
 ‡ Security is in default.
   
 #  Restricted security subject to restrictions on resale under federal securities laws. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers under Rule 144A under the Securities Act of 1933, as amended, and have been deemed by the investment manager to be illiquid and restricted. At April 30, 2010, these securities amounted to approximately $2,241,720 or 0.8% of net assets applicable to common shareholders for Intermediate and approximately $1,980 or 0.0% of net assets applicable to common shareholders for New York.
 
  
(000's omitted)  
Restricted Security
 
Acquisition
Date
   
Acquisition
Cost
   
Acquisition
Cost
Percentage
of Net Assets
Applicable
to Common
Shareholders
as of
Acquisition
Date
   
Value as of
April 30, 2010
   
Fair Value
Percentage
of Net Assets
Applicable
to Common
Shareholders
as of
April 30, 2010
   
Intermediate
 
New York Liberty
Dev. Corp. Rev.
(Nat'l Sports
Museum Proj.),
Ser. 2006-A, 6.13%,
due 2/15/19
 
8/4/2006
 
 
$1,100
   
0.4
%
 
$         3
   
0.0
%
 
                                     
   
Non-Profit Pfd.
Fdg. Trust I,
Ser. 2006-C, 4.72%,
due 9/15/37
 
10/2/2006
   
3,000
   
1.0
   
2,238
   
0.8
   
                                     
New York
 
New York Liberty
Dev. Corp. Rev.
(Nat'l Sports
Museum Proj.),
Ser. 2006-A, 6.13%,
due 2/15/19
 
8/4/2006
   
660
   
0.9
   
2
   
0.0
   
 
 
 
 
 
See Notes to Financial Statements
 
22

 
Statements of Assets and Liabilities (Unaudited)
 
Neuberger Berman Intermediate Municipal Closed-End Funds
(000's omitted except per share amounts)
 
     
CALIFORNIA
INTERMEDIATE
MUNICIPAL FUND
       
INTERMEDIATE
MUNICIPAL FUND
       
NEW YORK
INTERMEDIATE
MUNICIPAL FUND
   
     
April 30,
2010
     
April 30,
2010
     
April 30,
2010
   
                           
Assets                          
Investments in securities, at value* (Note A)—
see Schedule of Investments:
                         
Unaffiliated issuers
 
 
$138,820
   
 
$443,916
   
 
$119,369
   
Cash
   
62
     
     
84
   
Interest receivable
   
2,015
     
7,049
     
1,865
   
Receivable for securities sold
   
100
     
92
     
   
Prepaid expenses and other assets
   
10
     
3
     
12
   
Total Assets
   
141,007
     
451,060
     
121,330
   
   
Liabilities
 
Distributions payable—preferred shares
   
7
     
15
     
5
   
Distributions payable—common shares
   
374
     
1,304
     
326
   
Payable to investment manager—net (Notes A & B)
   
11
     
37
     
10
   
Payable to administrator (Note B)
   
35
     
111
     
30
   
Accrued expenses and other payables
   
83
     
141
     
76
   
Total Liabilities
   
510
     
1,608
     
447
   
                           
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
 
 
 
$81,497
   
 
$270,052
   
 
$72,633
   
                           
Net Assets applicable to Common Shareholders consist of:
 
Paid-in capital—common shares
 
 
$78,644
   
 
$265,984
   
 
$71,789
   
Undistributed net investment income (loss)
   
1,095
     
4,568
     
958
   
Accumulated net realized gains (losses) on investments
   
(1,167
)
   
(10,573
)
   
(1,822
)
 
Net unrealized appreciation (depreciation) in value of investments
   
2,925
     
10,073
     
1,708
   
Net Assets applicable to Common Shareholders at value    
 
$81,497
     
$270,052
     
$72,633
   
                           
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)
   
5,507
     
18,635
     
5,028
   
Net Asset Value Per Common Share Outstanding
 
 
$14.80
   
 
$14.49
   
 
$14.45
   
*Cost of Investments:
 
 
 
$135,895
   
 
$433,843
   
 
$117,661
   
 
 
 
 
 
 
 
 
 
 
See Notes to Financial Statements
 
23

 
Statements of Operations (Unaudited)
 
Neuberger Berman Intermediate Municipal Closed-End Funds
(000's omitted)
 
   
CALIFORNIA
INTERMEDIATE
MUNICIPAL FUND
 
INTERMEDIATE
MUNICIPAL FUND
 
NEW YORK
INTERMEDIATE
MUNICIPAL FUND
   
For the Six
Months Ended
April 30,
2010
 
For the Six
Months Ended
April 30,
2010
 
For the Six
Months Ended
April 30,
2010
Investment Income:
Income (Note A)
Interest income
 
$
3,232
   
$
10,612
   
$
2,837
 
                         
Expenses:
Investment management fees (Note B)
   
173
     
554
     
149
 
Administration fees (Note B)
   
208
     
665
     
178
 
Auction agent fees (Note B)
   
43
     
146
     
23
 
Audit fees
   
24
     
25
     
24
 
Basic maintenance expense (Note B)
   
14
     
14
     
14
 
Custodian fees (Note B)
   
39
     
74
     
33
 
Insurance expense
   
7
     
22
     
6
 
Legal fees
   
60
     
145
     
52
 
Shareholder reports
   
20
     
37
     
20
 
Stock exchange listing fees
   
2
     
5
     
1
 
Stock transfer agent fees
   
10
     
10
     
10
 
Directors' fees and expenses
   
25
     
26
     
25
 
Miscellaneous
   
17
     
25
     
16
 
                         
Total expenses
   
642
     
1,748
     
551
 
                         
Investment management fees waived (Note B)
   
(104
)
   
(333
)
   
(89
)
Expenses reduced by custodian fee expense offset arrangement (Note B)
   
     
(1
)
   
 
                         
Total net expenses
   
538
     
1,414
     
462
 
                         
Net investment income (loss)
 
$
2,694
   
$
9,198
   
$
2,375
 
 
Realized and Unrealized Gain (Loss) on Investments (Note A)
 
Net realized gain (loss) on:
Sales of investment securities of unaffiliated issuers
   
359
     
242
     
42
 
 
Change in net unrealized appreciation (depreciation) in value of:
 
Unaffiliated investment securities
   
1,417
     
4,971
     
1,506
 
                         
Net gain (loss) on investments
   
1,776
     
5,213
     
1,548
 
                         
Distributions to Preferred Shareholders
   
(115
)
   
(350
)
   
(95
)
                         
Net increase (decrease) in net assets applicable to Common Shareholders resulting from operations
 
$
4,355
   
$
14,061
   
$
3,828
 
 
 
 
 
See Notes to Financial Statements
 
24

 
 
 
Statements of Changes in Net Assets
 
Neuberger Berman Intermediate Municipal Closed-End Funds
 
(000's omitted)
 
   
CALIFORNIA INTERMEDIATE
MUNICIPAL FUND
INTERMEDIATE MUNICIPAL FUND 
 
   
Six Months
Ended
April 30,
2010
(Unaudited)
 
Year Ended
October 31,
2009
 
Six Months
Ended
April 30,
2010
(Unaudited)
 
Year Ended
October 31,
2009 
 
Increase (Decrease) in
Net Assets Applicable to
Common Shareholders:
 
From Operations (Note A):
Net investment income (loss)
 
$
2,694
   
$
5,770
   
$
9,198
   
$
18,954
   
Net realized gain (loss) on investments
   
359
     
(1,362
)
   
242
     
(9,553
)
 
Change in net unrealized appreciation
(depreciation) of investments
   
1,417
     
9,198
     
4,971
     
27,702
   
 
Distributions to Preferred
Shareholders From (Note A):
Net investment income
   
(115
)
   
(513
)
   
(350
)
   
(1,555
)
 
Net increase (decrease) in net assets applicable to common shareholders resulting from operations
   
4,355
     
13,093
     
14,061
     
35,548
   
 
Distributions to Common
Shareholders From (Note A):
Net investment income
   
(2,199
)
   
(4,272
)
   
(7,644
)
   
(13,345
)
 
 
From Capital Share
Transactions (Note D):
Proceeds from reinvestment of dividends and distributions
   
     
     
     
   
Payments for shares redeemed in connection with tender offer
(Note E)
   
     
(17,811
)
   
     
(27,869
)
 
Total net proceeds from capital share transactions
   
     
(17,811
)
   
     
(27,869
)
 
                                   
Net Increase (Decrease) in Net Assets
Applicable to Common Shareholders
   
2,156
     
(8,990
)
   
6,417
     
(5,666
)
 
 
Net Assets Applicable to
Common Shareholders:
Beginning of period
   
79,341
     
88,331
     
263,635
     
269,301
   
End of period
 
$
81,497
   
$
79,341
   
$
270,052
   
$
263,635
   
Undistributed net investment
income (loss) at end of period
 
$
1,095
   
$
715
   
$
4,568
   
$
3,364
   
 
 
 
 
See Notes to Financial Statements
25

 
 
 
     
NEW YORK INTERMEDIATE
MUNICIPAL FUND
     
Six Months
Ended
April 30,
2010
(Unaudited)
 
Year Ended
October 31,
2009
Increase (Decrease) in
Net Assets Applicable to
Common Shareholders:
 
From Operations (Note A):
 
Net investment income (loss)
2,375
   
$
4,793
 
Net realized gain (loss) on investments
42
     
(1,053
)
Change in net unrealized appreciation
(depreciation) of investments
1,506
     
7,294
 
 
Distributions to Preferred
Shareholders From (Note A):
Net investment income
(95
)
   
(426
)
Net increase (decrease) in net assets applicable to common shareholders resulting from operations
3,828
     
10,608
 
 
Distributions to Common
Shareholders From (Note A):
Net investment income
(1,930
)
   
(3,542
)
 
From Capital Share
Transactions (Note D):
Proceeds from reinvestment of dividends and distributions
55
     
 
Payments for shares redeemed in connection with tender offer
(Note E)
     
(7,441
)
Total net proceeds from capital share transactions
55
     
(7,441
)
             
Net Increase (Decrease) in Net Assets
Applicable to Common Shareholders
1,953
     
(375
)
 
Net Assets Applicable to
Common Shareholders:
Beginning of period
70,680
     
71,055
 
End of period
72,633
   
$
70,680
 
Undistributed net investment
income (loss) at end of period
958
   
$
608
 
 
 
See Notes to Financial Statements
 
 
 
26
 

 
Notes to Financial Statements Intermediate Municipal Closed-End Funds (Unaudited)
 
Note A—Summary of Significant Accounting Policies:
 
1         General: 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 may classify or re-classify any unissued shares of capital stock into one or more classes of preferred stock without the approval of shareholders.
 
The assets of each Fund belong only to that Fund, and the liabilities of each Fund are borne solely by that Fund and no other.
 
The preparation of financial statements in accordance with U.S. generally accepted accounting principles requires Management to make estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates.
 
2          Portfolio valuation: Investment securities are valued as indicated in the notes following the Funds' Schedule of Investments.
 
3          Securities transactions and investment income: Securities transactions are recorded on trade date for financial reporting purposes. Interest income, including accretion of discount (adjusted for original issue discount, where applicable) and amortization of premium, where applicable, is recorded on the accrual basis. Realized gains and losses from securities transactions are recorded on the basis of identified cost and stated separately 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.
 
The Funds have adopted the provisions of ASC 740 "Income Taxes" ("ASC 740"). ASC 740 sets forth a minimum threshold for financial statement recognition of the benefit of a tax position taken, or expected to be taken, in a tax return. The Funds recognize interest and penalties, if any, related to unrecognized tax benefits as an income tax expense in the Statements of Operations. The Funds are subject to examination by U.S. federal and state tax authorities for returns filed for the prior three fiscal years 2006 - 2008. As of April 30, 2010, the Funds did not have any unrecognized tax benefits.
 
Income distributions and capital gain distributions are determined in accordance with income tax regulations, which may differ from U.S. generally accepted accounting principles. These differences are primarily due to differing treatments of income and gains on various investment securities held by each Fund, timing differences and differing characterization of distributions made by each Fund as a whole.
 
As determined on October 31, 2009, there were no permanent differences resulting from different book and tax accounting reclassified at fiscal year-end for California. As determined on October 31, 2009, permanent differences resulting primarily from different book and tax accounting for defaulted bonds were reclassified at year-end for Intermediate and New York. These reclassifications had no effect on income, net asset value or net asset value per share for Intermediate and New York.
 
 
 
 
27

 

 
  The tax character of distributions paid during the years ended October 31, 2009 and October 31, 2008 was as follows:
 
   
Distributions Paid From:
   
Tax-Exempt Income
 
Ordinary Income
 
Total
   
2009
 
2008
 
2009
 
2008
 
2009
 
2008
California
 
$
4,756,650
   
$
6,458,574
   
$
28,416
   
$
7,760
   
$
4,785,066
   
$
6,466,334
 
Intermediate
   
14,800,907
     
20,178,654
     
99,261
     
38,868
     
14,900,168
     
20,217,522
 
New York
   
3,956,547
     
5,304,908
     
11,613
     
6,228
     
3,968,160
     
5,311,136
 
 
 
  As of October 31, 2009, the components of distributable earnings (accumulated losses) on a U.S. federal income tax basis were as follows:
 
   
Undistributed
Tax-Exempt
Income
 
Undistributed
Ordinary
Income
 
Undistributed
Long-Term
Gain
 
Unrealized
Appreciation
(Depreciation)
 
Loss
Carryforwards
and Deferrals
 
Total
California
 
$
1,042,807
   
$
   
$
   
$
1,507,904
   
$
(1,525,938
)
 
$
1,024,773
 
Intermediate
   
4,517,274
     
     
     
5,096,161
     
(10,809,374
)
   
(1,195,939
)
New York
   
914,445
     
     
     
198,908
     
(1,861,396
)
   
(748,043
)
 
The differences between book basis and tax basis distributable earnings is attributable primarily to timing differences of distribution payments, capital loss carryforwards and, for Intermediate and New York, defaulted bond income adjustments.
 
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, 2009, each Fund had unused capital loss carryforwards available for federal income tax purposes to offset net realized capital gains, if any, as follows:
 
   
Expiring in:
   
2011
 
2012
 
2013
 
2014
 
2015
 
2016
 
2017
California
 
$
   
$
159,305
   
$
4,477
   
$
   
$
   
$
   
$
1,362,156
 
Intermediate
   
509,968
     
328,363
     
58,816
     
     
126,780
     
232,566
     
9,552,881
 
New York
   
362,560
     
156,636
     
18,838
     
     
     
269,555
     
1,053,807
 
 
5          Distributions to shareholders: Each Fund earns income, net of expenses, daily on its investments. It is the policy of each Fund to declare and pay monthly distributions to common shareholders. Distributions from net realized capital gains, if any, are normally distributed in December. Distributions to common shareholders are recorded on the ex-date. Distributions to preferred shareholders are accrued and determined as described in Note A-7.
 
On May 17, 2010, each Fund declared a monthly distribution to common shareholders payable June 15, 2010, to shareholders of record on May 28, 2010, with an ex-date of May 26, 2010 as follows:
 
   
Distribution per share
California
 
$
0.068
 
Intermediate
   
0.070
 
New York
   
0.065
 
 
 

 
28

 
On June 15, 2010, each Fund declared a monthly distribution to common shareholders payable July 15, 2010, to shareholders of record on June 30, 2010, with an ex-date of June 28, 2010 as follows:
 
   
Distribution per share
California
 
$
0.068
 
Intermediate
   
0.070
 
New York
   
0.065
 
 
  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 attributable to a particular investment company (e.g., 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 of the investment companies in the complex or series thereof can otherwise be made fairly.
     
  Financial leverage: 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 a Fund, but excluding interest thereon ("Liquidation Value"). Distributions to AMPS shareholders, which are cumulative, are accrued daily. It is the policy of each Fund to pay distributions every 7 days for each Fund's AMPS Series A and every 28 days for each Fund's AMPS Series B, unless in a special rate period.
 
In the absence of a special rate period, distribution rates are reset every 7 days for each Fund's AMPS Series A, based on the results of an auction. For the six months ended April 30, 2010, distribution rates ranged from:
 
   
Distribution Rate
California
   
0.26
% – 0.50%
Intermediate
   
0.24
% – 0.50%
New York
   
0.26
% – 0.50%
 
In the absence of a special rate period, distribution rates are reset every 28 days for each Fund's AMPS Series B, based on the results of an auction. For the six months ended April 30, 2010, distribution rates ranged from:
 
   
Distribution Rate
California
   
0.32
% – 0.49%
Intermediate
   
0.34
% – 0.50%
New York
   
0.34
% – 0.50%
 
 
 
29

 
The Funds declared distributions to AMPS shareholders for the period May 1, 2010 to May 31, 2010 for each series of the AMPS as follows:
 
   
Series A Shares
 
Series B Shares
California
 
$
11,267
   
$
11,591
 
Intermediate
   
33,666
     
35,393
 
New York
   
9,253
     
9,881
 
 
Since February 2008, the market for auction rate preferred securities has experienced an unprecedented number of failed auctions. In the Funds' regularly scheduled auctions, more AMPS were submitted for sale than there were offers to buy. This meant that these auctions "failed to clear," and that preferred shareholders who wanted to sell their AMPS in these auctions were unable to do so. When a failed auction of AMPS occurs, the distribution rate for AMPS resets to a maximum rate, which is 110% of the base rate (the base rate is the greater of an "AA" rated composite commercial paper rate or the taxable equivalent of a short-term municipal bond rate) as a result of the failed auctions. Although the failed auctions have resulted in a current lack of liquidity for preferred shareholders, they are not an event of default for the Funds nor have they affected the credit quality of the AMPS. The Funds have paid, and continue to pay, distributions on their AMPS that are set at the maximum rate as a result of the failed auctions. If auctions continue to fail and the maximum rate increases due to changes in short term interest rates, the Funds' returns for common shareholders could be adversely affected. The Funds continue to monitor the developments in the AMPS market.
 
The Funds may redeem shares of each series of AMPS, in whole or in part, on the second business day preceding any distribution payment date at Liquidation Value.
 
The Funds are also subject to certain restrictions relating to the AMPS. Failure to comply with these restrictions could preclude the Funds from declaring any distributions to common shareholders or repurchasing common shares and/or could trigger the mandatory redemption of AMPS at Liquidation Value.
 
The holders of AMPS are entitled to one vote per share and will vote with holders of common shares as a single class, except that the AMPS will vote separately as a class on certain matters, as required by law or a Fund's charter. The holders of a Fund's AMPS, voting as a separate class, are entitled at all times to elect two Directors of the Fund, and to elect a majority of the Directors of the Fund if the Fund fails to pay distributions on AMPS for two consecutive years.
 
8         Concentration of risk: The ability of the issuers of the debt securities held by the Funds to meet their obligations may be affected by economic developments, including those particular to a specific industry or region. California and New York normally invest substantially all of their assets in municipal bonds of issuers located in the state of California and the state of New York, respectively. The value of each of these Funds' securities are more susceptible to adverse economic, political, regulatory or other factors affecting the issuers of such municipal bonds than a fund that does not limit its investments to such issuers.
 
9         Indemnifications: Like many other companies, the Funds' organizational documents provide that their officers and directors are indemnified against certain liabilities arising out of the performance of their duties to the Funds. In addition, both in some of their principal service contracts and in the normal course of their business, the Funds enter into contracts that provide indemnifications to other parties for certain types of losses or liabilities. Each Fund's maximum exposure under these arrangements is unknown as this could involve future claims against each Fund.
 

 
30

 

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
October 31,
 
% of Average
Daily Managed Assets
 
 
2010
     
0.10
   
 
2011
     
0.05
   
 
 
Management has not contractually agreed to waive any portion of its fees beyond October 31, 2011.
 
In connection with the May 2009 tender offer and the tender offer program, more fully described in Note E, Management has agreed to voluntarily extend for one year the contractual fee waivers currently in place, so that the fee waiver as a percentage of average daily Managed Assets for each Fund would be:
 
Year Ended
October 31,
 
% of Average
Daily Managed Assets
 
 
2010
     
0.15
   
 
2011
     
0.10
   
 
2012
     
0.05
   
 
For the six months ended April 30, 2010, such waived fees amounted to $103,801, $332,551, and $89,294 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.
 
Neuberger Berman LLC ("Neuberger") is retained by Management to furnish it with investment recommendations and research information without added cost to the Funds. Several individuals who are officers and/or Directors of each Fund are also employees of Neuberger and/or Management.
 
On May 4, 2009, NBSH Acquisition, LLC ("NBSH"), an entity organized by key members of Neuberger Berman's senior management, acquired a majority interest in Neuberger Berman's business and the fixed income and certain alternative asset management businesses of Lehman Brothers Holdings Inc.'s ("LBHI") Investment Management Division (together with Neuberger Berman, the "Acquired Businesses") (the "Acquisition"). Prior to that date, the predecessor of Management and Neuberger were wholly owned subsidiaries of LBHI. On September 15, 2008, LBHI filed a voluntary petition under Chapter 11 of the U.S. Bankruptcy Code, and on December 22, 2008, the bankruptcy court having jurisdiction over the LBHI matter approved the sale of the Acquired Businesses to NBSH (or its successor or assign), as the successful bidder in a public auction.
 
The Acquired Businesses are now indirectly owned by, among others, portfolio managers, Neuberger Berman's management team, and certain key members and senior professionals who are employed in various parts of the
 
 
 
31

 

 
Neuberger Berman complex of companies, with a minority interest retained by LBHI and certain affiliates of LBHI. The closing of the Acquisition resulted in an "assignment" of the Funds' Management Agreements and Sub-Advisory Agreements. Such an assignment, by law, automatically terminated those agreements. Accordingly, prior to the closing, the Board, including the Directors who are not "interested persons" of the Funds' investment manager and its affiliates or the Funds, considered and approved new Management Agreements and Sub-Advisory Agreements for the Funds. The new agreements, which are virtually identical to those previously in effect, were also approved by a vote of the Funds' shareholders.
 
These events have not had a material impact on the Funds or their operations. Management and Neuberger continue to operate in the ordinary course of business as the investment manager and sub-adviser of the Funds.
 
Each Fund has an expense offset arrangement in connection with its custodian contract. For the six months ended April 30, 2010, the impact of this arrangement was a reduction of expenses of $240, $631, and $213 for California, Intermediate, and New York, respectively.
 
In connection with the settlement of each AMPS auction, each Fund pays, through the auction agent, a service fee to each participating broker-dealer based upon the aggregate liquidation preference of the AMPS held by the broker-dealer's customers. For any auction preceding a rate period of less than one year, the service fee is paid at the annual rate of 1/4 of 1% for each successful auction, and up to 3/20 of 1% if the auction fails; for any auction preceding a rate period of one year or more, the service fee is paid at a rate agreed to by each Fund and the broker-dealer.
 
In order to satisfy rating agency requirements, each Fund is required to provide the rating agency that rates its AMPS 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 the rating agency as one of the conditions to maintain its rating on the AMPS. "Discounted value" refers to the fact that the rating agency requires each Fund, in performing this calculation, to discount portfolio securities below their face value, at rates determined by the rating agency. Each Fund pays a fee to State Street for the preparation of this report which is reflected in the Statements of Operations under the caption "Basic maintenance expense."
 
Note C—Securities Transactions:
 
During the six months ended April 30, 2010, there were purchase and sale transactions (excluding short-term securities) as follows:
 
(000's omitted)
 
Purchases
 
Sales
California
 
$
19,696
   
$
20,170
 
Intermediate
   
84,744
     
97,120
 
New York
   
29,433
     
29,806
 
 
Note D—Capital:
 
At April 30, 2010, the common shares outstanding and the common shares of each Fund owned by Neuberger were as follows:
 
   
Common Shares
Outstanding
 
Common Shares
Owned by Neuberger
California
   
5,507,477
     
6,981
 
Intermediate
   
18,634,612
     
6,981
 
New York
   
5,027,865
     
6,981
 
 
 
 
 
32

 
 
Transactions in common shares for the six months ended April 30, 2010 and for the year ended October 31, 2009, were as follows:
 
   
Shares Issued on
Reinvestment of Dividends
and Distributions
Redemption of Common
Shares (Note E)
Net Increase/(Decrease) in
Common Shares Outstanding
   
2010
 
2009
2010
 
2009
2010
 
2009
California
   
     
   
     
(1,291,877
)
 
     
(1,291,877
)
Intermediate
   
     
   
     
(2,070,512
)
 
     
(2,070,512
)
New York
   
3,868
     
   
     
(558,221
)
 
3,868
     
(558,221
)
 
Note E—Tender Offer Program:
 
Each Fund conducted a tender offer in May 2009 for up to 10% of its outstanding common shares at a price equal to 98% of its net asset value ("NAV") per share determined on the day the tender offer expired. Under the terms of each tender offer, on June 5, 2009, California, Intermediate and New York accepted 679,935, 2,070,512 and 558,221 common shares, respectively, representing in each case approximately 10% of the Funds' then-outstanding common shares. Final payment was made at $13.46, $13.46 and $13.33 per share for California, Intermediate and New York, respectively, in each case representing 98% of the Fund's NAV per share on May 29, 2009.
 
In 2009, each Fund's Board authorized a semi-annual tender offer program consisting of up to four tender offers over a two-year period (each, a "Tender Offer Program"). Under each Tender Offer Program, if a Fund's common shares trade at an average daily discount to NAV per share of greater than 10% during a 12-week measurement period, the Fund would conduct a tender offer for between 5% and 20% of its outstanding common shares at a price equal to 98% of its NAV per share determined on the day the tender offer expires.
 
During the initial measurement period under the Tender Offer Program, each of Intermediate and New York traded at an average daily discount to NAV per share of less than 10% and, therefore, in accordance with its Tender Offer Program, did not conduct a tender offer. During the initial measurement period under the Tender Offer Program, California, however, traded at an average daily discount to NAV per share of greater than 10%. As a result, California conducted a tender offer for up to 10% of its outstanding common shares that commenced September 18, 2009 and ended October 16, 2009. Under the terms of the tender offer, on October 23, 2009, California accepted 611,942 common shares, representing approximately 10% of its then-outstanding common shares. Final payment was made at $14.15 per share, representing 98% of the NAV per share on October 16, 2009.
 
During each Fund's second measurement period under the Tender Offer Program, February 19, 2010 to May 14, 2010, each of California, Intermediate and New York traded at an average daily discount to NAV per share of less than 10% and, therefore, in accordance with its Tender Offer Program, did not conduct a tender offer.
 
In connection with each Fund's May 2009 tender offer and the adoption of the Tender Offer Program by each Fund, Management agreed to voluntarily extend for one year the contractual fee waivers currently in place for each Fund to offset some of the expenses associated with, or possible increases in each Fund's expense ratio resulting from, the tender offers (see Note B for additional disclosure). Each Board retains the ability, consistent with its fiduciary duty, to opt out of its Tender Offer Program should circumstances arise that the Board believes could cause a material negative effect on its Fund or its Fund's shareholders.
 
Note F—Subsequent Events:
 
In accordance with the provision set forth in ASC 855 "Subsequent Events" ("ASC 855"), Management has evaluated the possibility of subsequent events existing in the Fund's financial statements through the date the
 
 
 
33

 

 
financial statements were available to be issued. Management has determined that there are no subsequent events that, in accordance with ASC 855, would need to be disclosed in the Funds' financial statements.
 
Note G—Recent Market Events:
 
During the six month period covered by this report, the U.S. and global economies and the financial markets experienced significant disruptions, the effects of which are continuing to work their way through the economy. Because these market events are widespread and unprecedented, it is difficult to predict their ultimate severity or duration or the way in which they will affect particular issuers or market sectors.
 
Note H—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,
   
2010
(Unaudited)
 
2009
 
2008
 
2007
 
2006
 
2005
Common Share Net Asset Value,
Beginning of Period
 
$
14.41
   
$
12.99
   
$
14.60
   
$
15.00
   
$
14.68
   
$
15.06
 
 
Income From Investment Operations
Applicable to Common Shareholders:
Net Investment Income (Loss)¢
   
.49
     
.88
     
.92
     
.94
     
.94
     
.91
 
Net Gains or Losses on Securities
(both realized and unrealized)
   
.32
     
1.22
     
(1.58
)
   
(.35
)
   
.37
     
(.40
)
Common Share Equivalent of Distributions
to Preferred Shareholders From:
Net Investment Income¢
   
(.02
)
   
(.08
)
   
(.31
)
   
(.30
)
   
(.27
)
   
(.14
)
Total From Investment Operations
Applicable to Common Shareholders
   
.79
     
2.02
     
(.97
)
   
.29
     
1.04
     
.37
 
 
Less Distributions to Common
Shareholders From:
Net Investment Income
   
(.40
)
   
(.66
)
   
(.64
)
   
(.69
)
   
(.72
)
   
(.75
)
Accretive Effect of Tender Offer
   
     
.06
     
     
     
     
 
Common Share Net Asset Value,
End of Period
 
$
14.80
   
$
14.41
   
$
12.99
   
$
14.60
   
$
15.00
   
$
14.68
 
Common Share Market Value,
End of Period
 
$
13.99
   
$
13.14
   
$
10.73
   
$
13.08
   
$
14.65
   
$
13.75
 
Total Return, Common Share
Net Asset Value
   
5.74
%**
   
17.12
%
   
(6.39
)%
   
2.16
%
   
7.51
%
   
2.96
%
Total Return, Common Share
Market Value
   
9.61
%**
   
29.29
%
   
(13.69
)%
   
(6.29
)%
   
12.10
%
   
7.82
%
 
Supplemental Data/Ratios††
Net Assets Applicable to Common Shareholders, End of Period (in millions)
 
$
81.5
   
$
79.3
   
$
88.3
   
$
99.3
   
$
101.9
   
$
99.7
 
Preferred Shares Outstanding,
End of Period (in millions)
 
$
59.0
   
$
59.0
   
$
59.0
   
$
59.0
   
$
59.0
   
$
59.0
 
Preferred Shares Liquidation and
Market Value Per Share
 
$
25,000
   
$
25,000
   
$
25,000
   
$
25,000
   
$
25,000
   
$
25,000
 
Ratios are calculated using
Average Net Assets Applicable
to Common Shareholders
Ratio of Gross Expenses#
   
1.35
%*
   
1.34
%
   
1.03
%
   
.94
%
   
.93
%
   
.96
%
Ratio of Net Expenses
   
1.35
%*
   
1.34
%
   
1.02
%
   
.94
%
   
.93
%
   
.96
%
Ratio of Net Investment Income (Loss) Excluding Preferred Share DistributionsØØ
   
6.75
%*
   
6.51
%
   
6.45
%
   
6.36
%
   
6.36
%
   
6.08
%
Portfolio Turnover Rate
   
14
%**
   
27
%
   
14
%
   
3
%
   
3
%
   
3
%
Asset Coverage Per Preferred Share, End of Period@
 
$
59,535
   
$
58,620
   
$
62,432
   
$
67,108
   
$
68,208
   
$
67,273
 
 
 
  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,
 
   
2010
(Unaudited)
 
2009
 
2008
 
2007
 
2006
 
2005
 
Common Share Net Asset Value,
Beginning of Period
 
$
14.15
   
$
13.01
   
$
14.55
   
$
14.91
   
$
14.68
   
$
15.11
   
   
Income From Investment Operations
Applicable to Common Shareholders:
 
Net Investment Income (Loss)¢
   
.49
     
.95
     
.97
     
.98
     
.97
     
.95
   
Net Gains or Losses on Securities
(both realized and unrealized)
   
.28
     
.91
     
(1.53
)
   
(.35
)
   
.30
     
(.43
)
 
Common Share Equivalent of Distributions
to Preferred Shareholders From:
 
Net Investment Income¢
   
(.02
)
   
(.08
)
   
(.33
)
   
(.32
)
   
(.29
)
   
(.15
)
 
Total From Investment Operations
Applicable to Common Shareholders
   
.75
     
1.78
     
(.89
)
   
.31
     
.98
     
.37
   
   
Less Distributions to Common
Shareholders From:
 
Net Investment Income
   
(.41
)
   
(.67
)
   
(.65
)
   
(.67
)
   
(.75
)
   
(.80
)
 
Accretive Effect of Tender Offers
   
     
.03
     
     
     
     
   
Common Share Net Asset Value,
End of Period
 
$
14.49
   
$
14.15
   
$
13.01
   
$
14.55
   
$
14.91
   
$
14.68
   
Common Share Market Value,
End of Period
 
$
14.11
   
$
13.01
   
$
11.00
   
$
12.86
   
$
14.22
   
$
13.62
   
Total Return, Common Share
Net Asset Value
   
5.44
%**
   
14.73
%
   
(5.87
)%
   
2.48
%
   
7.22
%
   
2.93
%
 
Total Return, Common Share
Market Value
   
11.67
%**
   
24.76
%
   
(9.95
)%
   
(5.03
)%
   
10.22
%
   
5.32
%
 
   
Supplemental Data/Ratios††
 
Net Assets Applicable to Common Shareholders, End of Period (in millions)
 
$
270.1
   
$
263.6
   
$
269.3
   
$
301.3
   
$
308.7
   
$
303.9
   
Preferred Shares Outstanding,
End of Period (in millions)
 
$
179.4
   
$
179.4
   
$
179.4
   
$
179.4
   
$
179.4
   
$
179.4
   
Preferred Shares Liquidation and
Market Value Per Share
 
$
25,000
   
$
25,000
   
$
25,000
   
$
25,000
   
$
25,000
   
$
25,000
   
Ratios are calculated using
Average Net Assets Applicable
to Common Shareholders
Ratio of Gross Expenses#
   
1.07
%*
   
1.09
%
   
.87
%
   
.79
%
   
.78
%
   
.80
%
 
Ratio of Net Expenses
   
1.07
%*
   
1.08
%
   
.86
%
   
.78
%
   
.78
%
   
.80
%
 
Ratio of Net Investment Income (Loss) Excluding Preferred Share DistributionsØØ
   
6.93
%*
   
6.98
%
   
6.80
%
   
6.65
%
   
6.61
%
   
6.33
%
 
Portfolio Turnover Rate
   
19
%**
   
40
%
   
8
%
   
4
%
   
6
%
   
2
%
 
Asset Coverage Per Preferred Share, End of Period@
 
$
62,635
   
$
61,743
   
$
62,606
   
$
67,027
   
$
68,048
   
$
67,368
   
 

  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,
 
   
2010
(Unaudited)
 
2009
 
2008
 
2007
 
2006
 
2005
 
Common Share Net Asset Value,
Beginning of Period
 
$
14.07
   
$
12.73
   
$
14.34
   
$
14.69
   
$
14.47
   
$
14.90
   
   
Income From Investment Operations
Applicable to Common Shareholders:
 
Net Investment Income (Loss)¢
   
.47
     
.89
     
.94
     
.95
     
.96
     
.93
   
Net Gains or Losses on Securities
(both realized and unrealized)
   
.31
     
1.16
     
(1.60
)
   
(.33
)
   
.29
     
(.44
)
 
Common Share Equivalent of Distributions
to Preferred Shareholders From:
 
Net Investment Income¢
   
(.02
)
   
(.08
)
   
(.31
)
   
(.30
)
   
(.28
)
   
(.14
)
 
Total From Investment Operations
Applicable to Common Shareholders
   
.76
     
1.97
     
(.97
)
   
.32
     
.97
     
.35
   
   
Less Distributions to Common
Shareholders From:
 
Net Investment Income
   
(.38
)
   
(.66
)
   
(.64
)
   
(.67
)
   
(.75
)
   
(.78
)
 
Accretive Effect of Tender Offers
   
     
.03
     
     
     
     
   
Common Share Net Asset Value,
End of Period
 
$
14.45
   
$
14.07
   
$
12.73
   
$
14.34
   
$
14.69
   
$
14.47
   
Common Share Market Value,
End of Period
 
$
14.54
   
$
12.88
   
$
10.57
   
$
12.99
   
$
14.60
   
$
13.54
   
Total Return, Common Share
Net Asset Value
   
5.58
%**
   
16.74
%
   
(6.50
)%
   
2.50
%
   
7.05
%
   
2.87
%
 
Total Return, Common Share
Market Value
   
16.05
%**
   
28.71
%
   
(14.30
)%
   
(6.58
)%
   
13.70
%
   
7.68
%
 
   
Supplemental Data/Ratios††
 
Net Assets Applicable to Common Shareholders,
End of Period (in millions)
 
$
72.6
   
$
70.7
   
$
71.1
   
$
80.0
   
$
81.9
   
$
80.7
   
Preferred Shares Outstanding,
End of Period (in millions)
 
$
48.3
   
$
48.3
   
$
48.3
   
$
48.3
   
$
48.3
   
$
48.3
   
Preferred Shares Liquidation and
Market Value Per Share
 
$
25,000
   
$
25,000
   
$
25,000
   
$
25,000
   
$
25,000
   
$
25,000
   
Ratios are calculated using
Average Net Assets Applicable
to Common Shareholders
 
Ratio of Gross Expenses#
   
1.30
%*
   
1.37
%
   
1.09
%
   
1.00
%
   
.98
%
   
1.02
%
 
Ratio of Net Expenses
   
1.30
%*
   
1.37
%
   
1.09
%
   
1.00
%
   
.98
%
   
1.01
%
 
Ratio of Net Investment Income (Loss)
Excluding Preferred Share DistributionsØØ
   
6.67
%*
   
6.70
%
   
6.64
%
   
6.56
%
   
6.60
%
   
6.30
%
 
Portfolio Turnover Rate
   
25
%**
   
33
%
   
10
%
   
1
%
   
5
%
   
2
%
 
Asset Coverage Per Preferred Share,
End of Period@
 
$
62,636
   
$
61,627
   
$
61,892
   
$
66,496
   
$
67,488
   
$
66,813
   
 

  See Notes to Financial Highlights
37

 
Notes to Financial Highlights Intermediate Municipal Closed-End Funds
 
(Unaudited)
 
†         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 sale of common shares at the market price on the last day of the period indicated. Dividends and distributions, if any, are assumed to be reinvested at prices obtained under each Fund's distribution reinvestment plan. Results represent past performance and do not guarantee future results. Current returns may be lower or higher than the performance data quoted. Investment returns may fluctuate and shares when sold may be worth more or less than original cost. For each Fund, total return would have been lower if Management had not waived a portion of the investment management fee.
 
#         The Fund is required to calculate an expense ratio without taking into consideration any expense reductions related to expense offset arrangements.
 
‡          After waiver of a portion of the investment management fee by Management. Had Management not undertaken such action, the annualized ratios of net expenses to average daily net assets applicable to common shareholders would have been:
 
   
Six Months
Ended April 30,
 
Year Ended October 31,
 
   
2010
 
2009
 
2008
 
2007
 
2006
 
2005
 
California
   
1.61
%
   
1.59
%
   
1.34
%
   
1.34
%
   
1.32
%
   
1.36
%
 
Intermediate
   
1.32
%
   
1.33
%
   
1.19
%
   
1.18
%
   
1.17
%
   
1.20
%
 
New York
   
1.55
%
   
1.62
%
   
1.41
%
   
1.40
%
   
1.38
%
   
1.41
%
 
 
@        Calculated by subtracting the Fund's total liabilities (excluding accumulated unpaid distributions on AMPS) from the Fund's total assets and dividing by the number of AMPS outstanding.
 
††        Expense ratios do not include the effect of distributions to holders of AMPS. Income ratios include income earned on assets attributable to AMPS outstanding.
 
¢          Calculated based on the average number of shares outstanding during each fiscal period.
 
*         Annualized.
 
**       Not Annualized.
 
ØØ     The annualized ratios of preferred share distributions to average net assets applicable to common shareholders were:
 
   
Six Months
Ended April 30,
 
Year Ended October 31,
 
   
2010
 
2009
 
2008
 
2007
 
2006
 
2005
 
California
   
.29
%
   
.58
%
   
2.17
%
   
2.02
%
   
1.86
%
   
.91
%
 
Intermediate
   
.26
%
   
.57
%
   
2.27
%
   
2.20
%
   
1.95
%
   
1.02
%
 
New York
   
.27
%
   
.59
%
   
2.19
%
   
2.07
%
   
1.90
%
   
.92
%
 
 
 

 
38

 
 
Distribution Reinvestment Plan
 
The Bank of New York Mellon ("Plan Agent") will act as Plan Agent for shareholders who have not elected in writing to receive dividends and distributions in cash (each a "Participant"), will open an account for each Participant under the Distribution Reinvestment Plan ("Plan") in the same name as their then current Shares are registered, and will put the Plan into effect for each Participant as of the first record date for a dividend or capital gains distribution.
 
Whenever the Fund declares a dividend or distribution with respect to the common stock of the Fund ("Shares"), each Participant will receive such dividends and distributions in additional Shares, including fractional Shares acquired by the Plan Agent and credited to each Participant's account. If on the payment date for a cash dividend or distribution, the net asset value is equal to or less than the market price per Share plus estimated brokerage commissions, the Plan Agent shall automatically receive such Shares, including fractions, for each Participant's account. Except in the circumstances described in the next paragraph, the number of additional Shares to be credited to each Participant's account shall be determined by dividing the dollar amount of the dividend or distribution payable on their Shares by the greater of the net asset value per Share determined as of the date of purchase or 95% of the then current market price per Share on the payment date.
 
Should the net asset value per Share exceed the market price per Share plus estimated brokerage commissions on the payment date for a cash dividend or distribution, the Plan Agent or a broker-dealer selected by the Plan Agent shall endeavor, for a purchase period lasting until the last business day before the next date on which the Shares trade on an "ex-dividend" basis, but in no event, except as provided below, more than 30 days after the payment date, to apply the amount of such dividend or distribution on each Participant's Shares (less their pro rata share of brokerage commissions incurred with respect to the Plan Agent's open-market purchases in connection with the reinvestment of such dividend or distribution) to purchase Shares on the open market for each Participant's account. No such purchases may be made more than 30 days after the payment date for such dividend or distribution except where temporary curtailment or suspension of purchase is necessary to comply with applicable provisions of federal securities laws. If, at the close of business on any day during the purchase period the net asset value per Share equals or is less than the market price per Share plus estimated brokerage commissions, the Plan Agent will not make any further open-market purchases in connection with the reinvestment of such dividend or distribution. If the Plan Agent is unable to invest the full dividend or distribution amount through open-market purchases during the purchase period, the Plan Agent shall request that, with respect to the uninvested portion of such dividend or distribution amount, the Fund issue new Shares at the close of business on the earlier of the last day of the purchase period or the first day during the purchase period on which the net asset value per Share equals or is less than the market price per Share, plus estimated brokerage commissions, such Shares to be issued in accordance with the terms specified in the third paragraph hereof. These newly issued Shares will be valued at the then-current market price per Share at the time such Shares are to be issued.
 
For purposes of making the reinvestment purchase comparison under the Plan, (a) the market price of the Shares on a particular date shall be the last sales price on the New York Stock Exchange (or if the Shares are not listed on the New York Stock Exchange, such other exchange on which the Shares are principally traded) on that date, or, if there is no sale on such Exchange (or if not so listed, in the over-the-counter market) on that date, then the mean between the closing bid and asked quotations for such Shares on such Exchange on such date and (b) the net asset value per Share on a particular date shall be the net asset value per Share most recently calculated by or on behalf of the Fund. All dividends, distributions and other payments (whether made in cash or Shares) shall be made net of any applicable withholding tax.
 
Open-market purchases provided for above may be made on any securities exchange where the Fund's Shares are traded, in the over-the-counter market or in negotiated transactions and may be on such terms as to price, delivery and otherwise as the Plan Agent shall determine. Each Participant's uninvested funds held by the Plan Agent will not bear interest, and it is understood that, in any event, the Plan Agent shall have no liability in connection with any inability to purchase Shares within 30 days after the initial date of such purchase as herein provided, or with the timing of any purchases effected. The Plan Agent shall have no responsibility as to the value of the Shares acquired for each Participant's account. For the purpose of cash investments, the Plan Agent may commingle each Participant's funds with those of other shareholders of the Fund
 
 

 
39

 

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.
 
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 LLC
605 Third Avenue, 2nd Floor
New York, NY 10158-0180
877.461.1899 or 212.476.8800
Stock Transfer Agent
The Bank of New York Mellon
480 Washington Boulevard
Jersey City, NJ 07317
   
Sub-Adviser
Neuberger Berman LLC
605 Third Avenue
New York, NY 10158-3698
Legal Counsel
K&L Gates LLP
1601 K Street, NW
Washington, DC 20006
   
Custodian
State Street Bank and Trust Company
2 Avenue de Lafayette
Boston, MA 02111
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 is also available, without charge, by calling 1-800-877-9700 (toll-free), on the website of the Securities and Exchange Commission at www.sec.gov, and on Management's website at www.nb.com.
 
Quarterly Portfolio Schedule
 
Each Fund files a complete schedule of portfolio holdings with the Securities and Exchange Commission for the first and third quarters of each fiscal year on Form N-Q. The Funds' Forms N-Q are available on the Securities and Exchange Commission's website at www.sec.gov and may be reviewed and copied at the Securities and Exchange Commission's Public Reference Room in Washington, DC. Information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330. The information on Form N-Q is available upon request, without charge, by calling 1-800-877-9700 (toll-free).
 

 
42

 

 
This page has been left blank intentionally
 
 

 
 

 

 
 
 

 
 
 
 
 
   
   
   
   
 
 
Neuberger Berman Management LLC
605 Third Avenue, 2nd Floor
New York, NY 10158–0180
Internal Sales & Services
877.461.1899
www.nb.com
 
 
 
 
  Statistics and projections in this report are derived from sources deemed to be reliable but cannot be regarded as a representation of future results of the Funds. This report is prepared for the general information of shareholders and is not an offer of shares of the Funds.
 
 
 
  I0208 06/10
 
 
 
 
 
 
 
 
 
 

 

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 is incorporated by reference to the Registrant’s Form N-CSR, Investment Company Act file number 811-21167 (filed on July 10, 2006).  The Code of Ethics is also available, without charge, by calling 1-800-877-9700 (toll-free).
 
Item 3. Audit Committee Financial Expert
 
The Board has determined that the Registrant has three audit committee financial experts serving on its audit committee. The Registrant’s audit committee financial experts are Martha Goss, George Morriss and Candace Straight. Ms. Goss, Mr. Morriss and Ms. Straight are independent directors as defined by Form N-CSR.
 
Item 4. Principal Accountant Fees and Services
 
Only required in the annual report.
 
Item 5. Audit Committee of Listed Registrants
 
Only required in the annual report.
 
Item 6. Schedule of Investments
 
The complete schedule of investments for the Registrant is disclosed in the Registrant’s Semi-Annual Report, which is included as Item 1 of this Form N-CSR.
 
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies
 
Only required in the annual report.
 
Item 8. Portfolio Managers of Closed-End Management Investment Companies.
 
(a)(1) Effective February 25, 2010, S. Blake Miller was appointed Co-Portfolio Manager and assumed joint day-to-day management responsibility of the Registrant:
 
 
S. Blake Miller is a Senior Vice President of Neuberger Berman Management LLC and Neuberger Berman Fixed Income LLC. Mr. Miller joined Neuberger Berman Fixed Income LLC in 2008. Prior to that time, he was the head of Municipal Fixed Income investing at another firm where he worked since 1986.
 
     
(a)(2)  The table below describes the other accounts for which the Registrant’s new Co-Portfolio Manager has joint day-to-day management responsibility as of May 31, 2010.
 
Type of Account
 
Number of Accounts Managed
   
Total Assets Managed
($ millions)
   
Number of Accounts Managed for which Advisory Fee is Performance-Based
   
Assets Managed for which Advisory Fee is Performance-Based
($ millions)
 
S. Blake Miller
                       
Registered Investment Companies*
    3     $ 1,091       -       -  
Other Pooled Investment Vehicles
    1     $ 262       -       -  
Other Accounts**
    1,115     $ 9,088       -       -  
*Registered Investment Companies include: Mutual Funds. 
**Other Accounts include: Institutional Separate Accounts, Sub-Advised, and Managed Accounts (WRAP Accounts).
 
Conflicts of Interest
 
Actual or apparent conflicts of interest may arise when a Portfolio Manager has day-to-day management responsibilities with respect to more than one fund or other account. The management of multiple funds and accounts (including proprietary accounts) may give rise to actual or potential conflicts of interest if the funds and accounts have different or similar objectives, benchmarks, time horizons, and fees, as a Portfolio Manager must allocate his time and investment ideas across multiple funds and accounts.  A Portfolio Manager may execute transactions for another fund or account that may adversely impact the value of securities held by the Registrant, and which may include transactions that are directly contrary to the positions taken by the Registrant.  For example, a Portfolio Manager may engage in short sales of securities for another account that are the same type of securities in which the Registrant also invests.  In such a case, the Portfolio Manager could be seen as harming the performance of the Registrant for the benefit of the account engaging in short sales if the short sales cause the market value of the securities to fall.  Additionally, if a Portfolio Manager identifies a limited investment opportunity that may be suitable for more than one fund or other account, the Registrant may not be able to take full advantage of that opportunity.  If one account were to buy or sell portfolio securities shortly before another account bought or sold the same securities, it could affect the price paid or received by the second account.  Securities selected for funds or accounts other than the Registrant may outperform the securities selected for the Registrant.  Finally, a conflict of interest may arise if Neuberger Berman Management LLC (“NB
 

 
 

 

Management”) and a Portfolio Manager have a financial incentive to favor one account over another, such as a performance-based management fee that applies to one account but not the Registrant or other accounts for which a Portfolio Manager is responsible.
 
NB Management, Neuberger Berman LLC and the Registrant have adopted certain compliance procedures which are designed to address these types of conflicts. However, there is no guarantee that such procedures will detect each and every situation in which a conflict arises.

(a)(3)  Compensation
 
NB Management's compensation philosophy is one that focuses on rewarding performance and incentivizing its employees.  NB Management is also focused on creating a compensation process that it believes is fair, transparent, and competitive with the market.

Compensation for Portfolio Managers consists of fixed and variable compensation but is more heavily weighted on the variable portion of total compensation and reflects individual performance, overall contribution to the team, collaboration with colleagues across NB Management and, most importantly, overall investment performance.  In particular, the bonus for a Portfolio Manager is determined by using a formula and may or may not contain a discretionary component.  If applicable, the discretionary component is determined on the basis of a variety of criteria, including investment performance (including the pre-tax three-year track record in order to emphasize long-term performance), utilization of central resources (including research, sales and operations/support), business building to further the longer term sustainable success of the investment team, effective team/people management, and overall contribution to the success of NB Management.  In addition, compensation of portfolio managers at other comparable firms is considered, with an eye toward remaining competitive with the market.

The terms of NB Management's long-term retention incentives are as follows:

Employee-Owned Equity.  An integral part of the Acquisition (the management buyout of Neuberger Berman in 2009) was implementing an equity ownership structure which embodies the importance of incentivizing and retaining key investment professionals.

The senior Portfolio Managers on the mutual fund teams are key shareholders in the equity ownership structure.  On a yearly basis over the next five years, the equity ownership allocations will be re-evaluated and re-allocated based on performance and other key metrics. A set percentage of employee equity and preferred stock is subject to vesting.

Contingent Compensation Plan. NB Management has also established the Neuberger Berman Group Contingent Compensation Plan pursuant to which a certain percentage of a Portfolio Manager’s compensation is deemed contingent and vests over a three-year period.  Under the plan, participating Portfolio Managers and other participating employees who are members of mutual fund investment teams will receive a cash return on their contingent compensation with a portion of such return being determined based on the team’s investment performance, as well as the performance of a portfolio of other investment funds managed by Neuberger Berman Group investment professionals.

 
 

 

Restrictive Covenants. Portfolio Managers who have received equity interests have agreed to certain restrictive covenants, which impose obligations and restrictions on the use of confidential information and the solicitation of Neuberger Berman employees and clients over a specified period of time if the Portfolio Manager leaves the firm.

Other Accounts. Certain Portfolio Managers may manage products other than mutual funds, such as high net worth separate accounts.  For the management of these accounts, a Portfolio Manager may generally receive a percentage of pre-tax revenue determined on a monthly basis less certain deductions (e.g., a “finder’s fee” or “referral fee” paid to a third party).  The percentage of revenue a Portfolio Manager receives will vary based on certain revenue thresholds.

(a)(4) Ownership of Securities
 
Set forth below is the dollar range of equity securities beneficially owned by the Registrant’s new Co-Portfolio Manager in the Registrant as of May 31, 2010.
 
Portfolio Manager
Dollar Range of
Equity Securities Owned in
the Registrant
 
 
S. Blake Miller
 
 
A
 
 
A = None
 
E = $100,001-$500,000
 
B = $1-$10,000
 
F = $500,001-$1,000,000
 
C = $10,001 - $50,000
 
G = $1,000,001 or More
 
D =$50,001-$100,000
   

 

(b) Not applicable.
 
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 stockholders may recommend nominees to the Board.
 
Item 11. Controls and Procedures
 
(a)
Based on an evaluation of the disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the “Act”)) as of a date within 90 days of the filing date of this document, the Chief Executive Officer and Treasurer and Principal Financial and Accounting Officer of the Registrant have concluded that such disclosure controls and procedures are effectively designed to ensure that information required to be disclosed by the Registrant on Form N-CSR and Form N-Q is accumulated and communicated to the Registrant’s management to allow timely decisions regarding required disclosure.
 
(b)
There were no significant changes in the Registrant’s internal controls over financial reporting (as defined in Rule 30a-3(d) under the Act) that occurred during the Registrant’s second fiscal quarter of the period covered by this report that have materially affected, or are reasonably likely to materially affect, the Registrant’s internal control over financial reporting.
 
Item 12. Exhibits
 
(a)(1)
A copy of the Code of Ethics is incorporated by reference to the Registrant’s Form N-CSR, Investment Company Act file number 811-21167 (filed July 10, 2006).
 
(a)(2)
The certifications required by Rule 30a-2(a) of the Act and Section 302 of the Sarbanes-Oxley Act of 2002 (“Sarbanes-Oxley Act”) are filed herewith.
 
(a)(3)
Not applicable to the Registrant.
 
(b)
The certifications required by Rule 30a-2(b) of the Act and Section 906 of the Sarbanes-Oxley Act are filed herewith.
 
The certifications provided pursuant to Rule 30a-2(b) of the Act and Section 906 of the Sarbanes-Oxley Act are not deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (“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, as amended, 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/ Robert Conti
Robert Conti
Chief Executive Officer

Date: July 2, 2010


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/ Robert Conti
Robert Conti
Chief Executive Officer

Date: July 2, 2010



By: /s/ John M. McGovern
John M. McGovern
Treasurer and Principal Financial
and Accounting Officer

Date: July 2, 2010