NEUBERGER & BERMAN MUNICIPAL FUNDS
Supplement dated June 26, 1997 to
Statement of Additional Information dated February 3, 1997
INVESTMENT INFORMATION
The section regarding banking securities (pages 13-14) is revised to read as
follows:
Banking Securities. The Portfolios may invest in banking obligations,
which include CDs, time deposits, bankers' acceptances, and other short-term
debt obligations issued by U.S. commercial banks. CDs are receipts for funds
deposited for a specified period of time at a specified rate of return; time
deposits generally are similar to CDs, but are uncertificated. Bankers'
acceptances are time drafts drawn on commercial banks by borrowers, usually in
connection with international commercial transactions. The CDs, time deposits,
and bankers' acceptances in which the Portfolios invest typically are not
covered by deposit insurance.
A Portfolio may invest in securities issued by a U.S. commercial bank
only if (1) the bank has total assets of at least $1,000,000,000, and (2) the
bank is on N&B Management's approved list.
