†

In accordance with Accounting Standards Codification (“ASC”) 820 “Fair Value Measurement” (“ASC 820”), all investments held by each of Neuberger Berman California Intermediate Municipal Fund Inc. (“California”), Neuberger Berman Intermediate Municipal Fund Inc. (“Intermediate”) and Neuberger Berman New York Intermediate Municipal Fund Inc. (“New York”) (each individually a “Fund” and collectively, the “Funds”) are carried at the value that Neuberger Berman Management LLC (“Management”) believes 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 valuing the Funds’ investments, some of which are discussed below. Significant Management judgment may be necessary to value investments in accordance with ASC 820.

ASC 820 established a three-tier hierarchy of inputs to create a classification of 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 observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, amortized cost, etc.)

·

Level 3 – unobservable inputs (including a Fund’s 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 value of the Funds’ investments in municipal securities is determined by 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 various 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 (generally Level 2 inputs). Other Level 2 and 3 inputs used by independent pricing services to value municipal securities and units include current trades, bid-wanted lists (which informs the market that a holder is interested in selling a position and that offers will be considered), offerings, general information on market movement, direction, trends, appraisals, bid offers and specific data on specialty issues.

Management has developed a process to periodically review information provided by independent pricing services for all types of securities.

If a valuation is not available from an independent pricing service, or if Management has reason to believe that the valuation received does not represent the amount a Fund might reasonably expect to receive on a current sale in an orderly transaction, Management seeks to obtain quotations from brokers or dealers (generally considered Level 2 or Level 3 inputs depending on the number of quotes available). 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 in the good-faith belief that the resulting valuation will reflect the fair value of the security. Numerous factors may be considered when determining the fair value of a security based on Level 2 or Level 3 inputs, including available analyst, media or other reports, trading in futures or American Depositary Receipts (“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.

 

The following is a summary, categorized by Level, of inputs used to value the Funds’ investments as of July 31, 2015:

Asset Valuation Inputs

(000’s omitted)

Level 1

Level 2

Total

California

Investments:

Municipal Notes^

$

—

$

141,877

$

—

$

141,877

Total Investments

—

141,877

—

141,877

Intermediate

Investments:

Municipal Notes^

—

469,867

—

469,867

Tax Exempt Preferred^

—

1,953

—

1,953

Total Investments

—

471,820

—

471,820

New York

^

The Schedule of Investments provides information on the state categorization for the portfolio.

§

The following is a reconciliation between the beginning and ending balances of investments in which significant unobservable inputs (Level 3) were used in determining value:

Beginning balance, as of 11/1/14

Accrued discounts/(premiums)

Realized gain/(loss)

Change in unrealized appreciation/ (depreciation)

Purchases

Sales

Transfers in to Level 3

Transfers out of Level 3

Balance as of7/31/15

Net change in unrealized appreciation/(depreciation) from investments still held as of 7/31/15

(000’s omitted)

Investments in SecuritiesNew York

Units

Liquidating Trust—Real Estate

$1,830

$—

$—

$—

$—

$—

$—

$(1,830

)

$—

$—

Total

$1,830

$—

$—

$—

$—

$—

$—

$(1,830

)

$—

$—

As of the period ended July 31, 2015, a security was transferred from one level (as of October 31, 2014) to another. Based on beginning of period market values as of November 1, 2014, approximately $1,830,000 was transferred from Level 3 to Level 2 for New York as a result of an increase in the number of observable inputs that were readily available to the independent pricing service.

##

At July 31, 2015, 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 UnrealizedAppreciation(Depreciation)

California

$133,783

$8,374

$280

$8,094

Intermediate

434,098

40,695

2,973

37,722

New York

116,051

6,028

2,355

3,673

ß

Security is guaranteed by the corporate or non-profit obligor.

ñ

Securities were purchased under Rule 144A of the Securities Act of 1933, as amended (the “1933 Act”), or are private placements and, unless registered under the 1933 Act or exempted from registration, may only be sold to qualified institutional investors. These securities have been deemed by the investment manager to be liquid. At July 31, 2015, these securities amounted to approximately $4,489,000 or 5.3% of net assets applicable to common stockholders for California, approximately $23,524,000 or 7.9% of net assets applicable to common stockholders for Intermediate, and approximately $2,877,000 or 4.0% of net assets applicable to common stockholders for New York.

Ø

All or a portion of this security was purchased on a when-issued basis. At July 31, 2015, these securities amounted to approximately $600,000 or 0.7% of net assets applicable to common stockholders for California, approximately $1,100,000 or 0.4% of net assets applicable to common stockholders for Intermediate, and approximately $500,000 or 0.7% of net assets applicable to common stockholders for New York.

ØØ

All or a portion of this security is segregated in connection with obligations for when-issued security purchase commitments.

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 July 31, 2015, and at their final maturities.

b

Currently a zero coupon security; will convert to 6.00% on December 1, 2015.

c

Currently a zero coupon security; will convert to 6.50% on December 1, 2015.

d

Currently a zero coupon security; will convert to 5.5% on August 1, 2021.

e

Currently a zero coupon security; will convert to 6.38% on August 1, 2016.

f

Currently a zero coupon security; will convert to 6.38% on August 1, 2019.

g

Currently a zero coupon security; will convert to 6.13% on August 1, 2023.

h

Currently a zero coupon security; will convert to 6.75% on August 1, 2015.

i

Currently a zero coupon security; will convert to 6.88% on August 1, 2019.

j

Currently a zero coupon security; will convert to 7.30% on August 1, 2026.

z

A zero balance, if any, may reflect actual amounts rounding to less than $1,000.

*

Security did not produce income during the last twelve months.

^^

Value of the security was determined using methods the Board has approved in the good-faith belief that the resulting valuation will reflect the fair value of the security.

‡

Security had an event of default.

Ñ

These securities have been deemed by the investment manager to be illiquid. At July 31, 2015, these securities amounted to approximately $489,000 or 0.6% of net assets applicable to common stockholders for California and approximately $2,874,000 or 1.0% of net assets applicable to common stockholders for Intermediate.

#

These securities have been deemed by the investment manager to be illiquid, and are restricted securities subject to restrictions on resale. Securities were purchased under Rule 144A of the 1933 Act or are private placements and, unless registered under the 1933 Act or exempted from registration, may only be sold to qualified institutional investors.

At July 31, 2015, these securities amounted to approximately $1,589,000 or 1.9% of net assets applicable to common stockholders for California, approximately $8,398,000 or 2.9% of net assets applicable to common stockholders for Intermediate and approximately $2,150,000 or 3.0% of net assets applicable to common stockholders for New York.

(000’s omitted)

Restricted Security

Acquisition Date

Acquisition Cost

Acquisition Cost Percentage of Net Assets Applicable to Common Stockholders as of Acquisition Date

Value as of 7/31/15

Fair Value Percentage of Net Assets Applicable to Common Stockholders as of 7/31/15

California

California Muni. Fin. Au.Charter Sch. Lease Rev.(Sycamore Academy Proj.),Ser. 2014, 5.63%, due7/1/44

9/18/2014

$982

1.2%

$989

1.2%

Greene Co. Dev. Au. Swr. Fac. Rev., Ser. 2015, 6.13%, due 1/1/25

7/31/2015

600

0.7%

600

0.7%

Intermediate

California Muni. Fin. Au.Charter Sch. Lease Rev.(Sycamore Academy Proj.),Ser. 2014, 5.00%, due7/1/24

9/18/2014

806

0.3%

809

0.3%

California Muni. Fin. Au.Charter Sch. Lease Rev.(Sycamore Academy Proj.),Ser. 2014, 5.13%, due7/1/29

9/18/2014

623

0.2%

631

0.2%

Greene Co. Dev. Au. Swr. Fac. Rev., Ser. 2015, 6.13%, due 1/1/25

7/31/2015

1,100

0.4%

1,100

0.4%

Munimae TE Bond Subsidiary LLC, Unsecured Notes, 5.00%, due 4/30/28

1/31/2013

1,800

0.6%

1,953

0.7%

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%

0

0.0%

Non-Profit Pfd. Fdg. Trust I, Ser. 2006-C, 4.72%, due 9/15/37

10/2/2006

3,000

1.0%

2,402

0.8%

Winrock Town Ctr. Tax Increment Dev. Dist. Number 1 Tax Allocation Sr. Lien Rev. (Gross Receipts Tax Increment Bond), Ser. 2015, 5.25%, due 5/1/25

6/30/2015

500

0.2%

501

0.2%

Winrock Town Ctr. Tax Increment Dev. Dist. Number 1 Tax Allocation Sr. Lien Rev. (Gross Receipts Tax Increment Bond), Ser. 2015, 5.75%, due 5/1/30

6/30/2015

1,000

0.4%

1,002

0.3%

New York

CMS Liquidating Trust

11/21/2012

3,105

4.0%

1,650

2.3%

Greene Co. Dev. Au. Swr. Fac. Rev., Ser. 2015, 6.13%, due 1/1/25

7/31/2015

500

0.7%

500

0.7%

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%

0

0.0%