Neuberger & Berman Income Funds Registered
Supplement to the Prospectus dated February 3, 1997
The Board of Trustees voted on September 24, 1997 to recommend to the
shareholders of Neuberger & Berman Ultra Short Bond Fund ("Ultra Short") a
transaction in which Ultra Short would sell substantially all of its assets to
Neuberger & Berman Limited Maturity Bond Fund ("Limited Maturity"), effective at
the close of business on February 27, 1998. Shareholders of Ultra Short would
receive shares of Limited Maturity in exchange for their shares of Ultra Short,
and Ultra Short would cease operations.
The Board also voted on September 24, 1997 to approve the dissolution of
Neuberger & Berman New York Insured Intermediate Fund ("New York Insured
Intermediate"), effective October 24, 1997. Investors holding shares of New York
Insured Intermediate on that date will receive proceeds in the amount of the net
asset value of their shares as of the close of business on that day. Effective
September 25, 1997, sales of new shares of New York Insured Intermediate will be
suspended.
The date of this Supplement is September 25, 1997.
