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NEUBERGER & BERMAN INCOME FUNDS
Supplement to the Prospectus dated March 1, 1996
The third and fourth paragraphs under the heading "Management and
Administration - Investment Manager, Administrator, Distributor, and Sub-
Adviser" on page 49 are amended to read as follows:
Theodore Giuliano, the President and a Trustee of the Trust and
of Managers Trust, is a general partner of Neuberger & Berman. Mr.
Giuliano is the Manager of the Fixed Income Group of Neuberger & Berman,
which he helped to establish in 1984. The Fixed Income Group manages
fixed income accounts that had approximately $11.1 billion of assets as of
December 31, 1995.
The following members of the Fixed Income Group are, along with
Theodore Giuliano, primarily responsible for the day-to-day management of
the listed Portfolios:
The date of this supplement is August 9, 1996.
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