<PAGE>
NEUBERGER BERMAN
Neuberger Berman
Income Trust-Registered Trademark-
----------------------------------------------------------
LIMITED MATURITY BOND TRUST SEMI-ANNUAL REPORT
APRIL 30, 2000
<PAGE>
TABLE OF CONTENTS
<TABLE>
<CAPTION>
<S> <C>
THE TRUST
CHAIRMAN'S LETTER A-4
PERFORMANCE HIGHLIGHTS A-7
FINANCIAL STATEMENTS B-1
FINANCIAL HIGHLIGHTS
PER SHARE DATA B-7
THE PORTFOLIO
SCHEDULE OF INVESTMENTS C-1
FINANCIAL STATEMENTS C-8
FINANCIAL HIGHLIGHTS C-15
DIRECTORY D-1
OFFICERS AND TRUSTEES D-2
</TABLE>
The "Neuberger Berman" name and logo are service marks of Neuberger
Berman, LLC. "Neuberger Berman Management Inc." and the individual fund
name in this report are either service marks or registered trademarks of
Neuberger Berman Management Inc. -C-2000.
A-3
<PAGE>
CHAIRMAN'S LETTER May 26, 2000
Dear Shareholder,
During this reporting period, the fixed income markets suffered the same kind
of split personality that affected the stock market before April's correction in
technology stocks. U.S. Treasury securities were the bond market equivalent of
"new economy" stocks. Everyone seemed to want them, regardless of fundamental
value. Bonds in other sectors, however, remained out of favor, despite
increasingly attractive yields. The result -- nearly the widest spread between
Treasury and other fixed income sector yields in a decade -- provides what we
believe is an exceptional buying opportunity in corporate, government agency,
asset-backed, mortgage, and high-yield bonds.
What is responsible for this split personality? The major culprit is the U.S.
Treasury Department. In January, the Treasury announced plans to begin retiring
longer maturity Treasury debt. In March and April, it began doing so. With
supply already somewhat limited due to reduced issuance, the buyback gave
Treasuries "scarcity" value. Fixed income investors pursued Treasuries like kids
at a picnic going after the last hot dog. More financially nourishing bonds were
left for the ants.
We believe this will change in the year ahead. Why? We expect that fixed
income investors will ultimately gravitate to value, as they recognize that
buying a 10-year investment grade corporate or government agency bond yielding
8% makes much more sense than buying a 10-year Treasury yielding 6%. In the
interim, our portfolios will continue to feast on very attractive yields in
out-of-favor sectors.
Rising interest rates may continue to restrain bond prices over the next
several months. The Federal Reserve hiked short-term interest rates three times
during our fiscal period ending April 30, 2000. On May 16, it raised them again
by a full half point. Until the Fed sees evidence that the economy is slowing,
it will likely continue to step on the monetary brakes. It may be difficult for
bond prices to make much headway swimming against a strong tide of rising
short-term interest rates.
However, attractive yields should produce respectable total returns. Looking
farther ahead, if the current stock market correction evolves into a full-scale
bear market, we believe that bonds may develop a larger
A-4
<PAGE>
and more enthusiastic following. In the long term, we also believe that bonds
will be major beneficiaries of the "new economy". The Internet is eliminating
the "middleman" from the financial system, and in doing so, it is removing an
entire cost layer from the economy. We believe that this powerful
disinflationary force, over the longer term, will bring interest rates
significantly lower.
Irrespective of short-term bond market trends, we will continue to focus on
value -- investing in what we perceive to be the best individual opportunities
in the most promising sectors of the fixed income market. We will also continue
to attempt to control interest rate risk through maturity/duration management
strategies.
LIMITED MATURITY BOND TRUST We are pleased to report that the Limited Maturity
Bond Trust posted a modestly positive total return for the six months ending
April 30, in what has been a very challenging fixed income market. True to its
name, this is a portfolio of fixed income instruments with relatively short-term
maturities. During this reporting period, weighted average maturity ranged from
2.4 to 5.2 years, a segment of the yield curve directly impacted by Federal
Reserve rate hikes. Also, the portfolio is traditionally biased toward higher
yielding fixed income sectors, with less substantial positions in Treasuries.
With Treasuries significantly outperforming all other fixed income sectors, we
were running uphill through the first half of fiscal 2000.
In response to rising interest rates, the portfolio's weighted average
maturity and duration (a standard measure of interest rate sensitivity) were
reduced from 4.6 years and 3.5 years respectively at the beginning of this
reporting period to 2.7 years and 2.1 years at its close. We currently expect to
maintain this conservative maturity/duration posture until we see interest rate
risk abating.
The most significant change in our portfolio's sector allocation was a
substantial reduction in mortgage-backed securities. We believed the sector had
become fully valued and that increasing interest rate volatility posed a problem
for mortgage securities going forward. At the end of November, we began taking
profits and whittled our allocation down from 30.1% at the beginning of fiscal
first-half 2000 to 7.9% at the end of February. Our timing was relatively good,
as mortgages began stumbling in late March.
We used most of the proceeds from our sales of mortgage bonds to increase our
allocation to federally sponsored agency securities, which
A-5
<PAGE>
we believed were priced attractively. Much has been made over proposed
legislation to eliminate lines of credit to government-sponsored enterprises
such as Fannie Mae (Federal National Mortgage Association) and Freddie Mac
(Federal Home Loan Mortgage Corp.). We do not anticipate the Treasury Department
pulling the rug out from under this sector. Furthermore, even on a stand-alone
basis, these entities would still enjoy very high credit ratings. We believe the
Fannie Mae benchmark issues are priced especially attractively and may get a
boost if reduced issuance of Treasuries makes the Fannie Mae benchmark a
substitute for Treasuries as a standard fixed income reference, as some
observers expect to happen. Modest trimming in other sectors allowed us to
increase our allocation to U.S. Treasuries, which should continue to benefit
from favorable supply/demand dynamics, and cash equivalent reserves. We believe
having some "dry powder" to invest in evolving opportunities will serve the
Trust well in the months ahead.
No one can be sure of what the bond market holds in store over the short term.
Should the Fed remain aggressive, we will likely see further erosion in bond
prices. However, at some point we believe the Fed will succeed in slowing the
economy, setting the stage for a bond market rally. In the interim, we believe
high nominal yields and real rates of return make bonds a good value for
income-oriented investors.
Sincerely,
/s/ Theodore P. Giuliano
Ted Giuliano
Chairman of the Board and Trustee
Neuberger Berman Income Trust
The composition and holdings of the portfolio are subject to change. Past
performance is no guarantee of future results.
A-6
<PAGE>
PERFORMANCE HIGHLIGHTS
TOTAL RETURN ILLUSTRATION
<TABLE>
<CAPTION>
SIX MONTH AVERAGE ANNUAL
PERIOD TOTAL RETURNS(1)
NEUBERGER BERMAN ENDED -------------------
INCOME TRUST 4/30/00(1) 1 YR(1) 5 YR 10 YR
<S> <C> <C> <C> <C>
-------------------------------------------------------------------------------------------
LIMITED MATURITY BOND TRUST(2) +0.56% +1.03% +4.80% +5.89%
</TABLE>
1) One-year and average annual total returns are for the periods ended
April 30, 2000. Results are shown on a "total return" basis and include
reinvestment of all dividends and capital gain distributions. Performance
data quoted represents past performance, which is no guarantee of future
results. The investment return and principal value of an investment will
fluctuate so that the shares, when redeemed, may be worth more or less than
their original cost.
2) Neuberger Berman Limited Maturity Bond Trust ("Limited Maturity") commenced
operations on August 30, 1993. The Fund has identical investment objectives
and policies, and invests in the same Portfolio as another fund ("Sister
Fund") of a similar name, which is also managed by Neuberger Berman
Management Inc. ("Management"). The performance information for the Fund
prior to its commencement of operations is for the Sister Fund. Management
voluntarily bears certain operating expenses in excess of 0.80% of the
average daily net assets per annum of Limited Maturity. This arrangement can
be terminated upon 60 days' prior written notice. Absent such reimbursement,
the total returns for the above stated periods would have been less. The
total returns for periods prior to the Fund's commencement of operations
would have been lower had they reflected the higher expense ratios of the
Fund as compared to those of its Sister Fund.
A-7
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES
Neuberger Berman
----------------------------------------------------------------------
Limited Maturity Bond Trust
<TABLE>
<CAPTION>
April 30,
2000
(000'S OMITTED EXCEPT PER SHARE AMOUNT) (UNAUDITED)
<S> <C>
-------------
ASSETS
Investment in Portfolio, at value (Note A) $ 34,959
Receivable for Trust shares sold 8
-------------
34,967
-------------
LIABILITIES
Payable for Trust shares redeemed 417
Accrued expenses 86
Payable to administrator -- net (Note B) 6
-------------
509
-------------
NET ASSETS at value $ 34,458
-------------
NET ASSETS consist of:
Par value $ 4
Paid-in capital in excess of par value 38,350
Accumulated net realized losses on
investment (2,828)
Net unrealized depreciation in value of
investment (1,068)
-------------
NET ASSETS at value $ 34,458
-------------
SHARES OUTSTANDING
($.001 par value; unlimited shares
authorized) 3,901
-------------
NET ASSET VALUE, offering and redemption price per
share $8.83
-------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
B-1
<PAGE>
STATEMENT OF OPERATIONS
Neuberger Berman
----------------------------------------------------------------------
Limited Maturity Bond Trust
<TABLE>
<CAPTION>
For the
Six Months
Ended
April 30,
2000
(000'S OMITTED) (UNAUDITED)
<S> <C>
-----------
INVESTMENT INCOME
Investment income from Portfolio (Note A) $ 1,373
-----------
Expenses:
Administration fee (Note B) 96
Shareholder reports 29
Registration and filing fees 28
Legal fees 18
Shareholder servicing agent fees 9
Custodian fees 5
Auditing fees 3
Trustees' fees and expenses 1
Miscellaneous 1
Expenses from Portfolio (Notes A & B) 65
-----------
Total expenses 255
Expenses reimbursed by administrator and
reduced by custodian fee expense offset
arrangement (Note B) (100)
-----------
Total net expenses 155
-----------
Net investment income 1,218
-----------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
FROM PORTFOLIO (NOTE A)
Net realized loss on investment securities (1,146)
Net realized loss on foreign currency
transactions (70)
Change in net unrealized depreciation of
investment securities, financial futures
contracts, translation of assets and
liabilities in foreign currencies, and
foreign currency contracts 211
-----------
Net loss on investments from Portfolio
(Note A) (1,005)
-----------
Net increase in net assets resulting from
operations $ 213
-----------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
B-2
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
Neuberger Berman
----------------------------------------------------------------------
Limited Maturity Bond Trust
<TABLE>
<CAPTION>
Six Months
Ended Year
April 30, Ended
2000 October 31,
(000'S OMITTED) (UNAUDITED) 1999
<S> <C> <C>
----------------------------
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income $ 1,218 $ 3,241
Net realized loss on investments
from Portfolio (Note A) (1,216) (710)
Change in net unrealized
appreciation (depreciation) of
investments from Portfolio
(Note A) 211 (1,534)
----------------------------
Net increase in net assets resulting
from operations 213 997
----------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income (1,218) (3,241)
Excess of net investment income -- (73)
----------------------------
Total distributions to shareholders (1,218) (3,314)
----------------------------
FROM TRUST SHARE TRANSACTIONS:
Proceeds from shares sold 5,085 20,223
Proceeds from reinvestment of
dividends 1,214 3,226
Payments for shares redeemed (12,385) (40,004)
----------------------------
Net decrease from Trust share
transactions (6,086) (16,555)
----------------------------
NET DECREASE IN NET ASSETS (7,091) (18,872)
NET ASSETS:
Beginning of period 41,549 60,421
----------------------------
End of period $ 34,458 $ 41,549
----------------------------
NUMBER OF TRUST SHARES:
Sold 567 2,175
Issued on reinvestment of dividends 136 349
Redeemed (1,386) (4,335)
----------------------------
Net decrease in shares outstanding (683) (1,811)
----------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
B-3
<PAGE>
NOTES TO FINANCIAL STATEMENTS
Neuberger Berman April 30, 2000 (Unaudited)
----------------------------------------------------------------------
Income Trust
NOTE A -- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:
1) GENERAL: Neuberger Berman Limited Maturity Bond Trust (the "Fund") is a
separate operating series of Neuberger Berman Income Trust (the "Trust"), a
Delaware business trust organized pursuant to a Trust Instrument dated
May 6, 1993. The Trust is registered as a diversified, open-end management
investment company under the Investment Company Act of 1940, as amended, and
its shares are registered under the Securities Act of 1933, as amended. The
trustees of the Trust may establish additional series or classes of shares
without the approval of shareholders.
If additional series of the Trust are established, the assets of each Fund
would belong only to that Fund, and the liabilities of each Fund would be
borne solely by that Fund and no other.
The Fund seeks to achieve its investment objective by investing all of its
net investable assets in Neuberger Berman Limited Maturity Bond Portfolio of
Income Managers Trust (the "Portfolio") having the same investment objective
and policies as the Fund. The value of the Fund's investment in the Portfolio
reflects the Fund's proportionate interest in the net assets of the Portfolio
(15.53% at April 30, 2000). The performance of the Fund is directly affected
by the performance of the Portfolio. The financial statements of the
Portfolio, including the Schedule of Investments, are included elsewhere in
this report and should be read in conjunction with the Fund's financial
statements.
2) PORTFOLIO VALUATION: The Fund records its investment in the Portfolio at
value. Investment securities held by the Portfolio are valued as indicated in
the notes following the Portfolio's Schedule of Investments.
3) TAXES: The Fund is treated as a separate entity for U.S. Federal income tax
purposes. It is the policy of the Fund to continue to qualify as a regulated
investment company by complying with the provisions available to certain
investment companies, as defined in applicable sections of the Internal
Revenue Code, and to make distributions of investment company taxable income
and net capital gains (after reduction for any amounts available for U.S.
Federal income tax purposes as capital loss carryforwards) sufficient to
relieve it from all, or substantially all, U.S. Federal income taxes.
Accordingly, the Fund paid no U.S. Federal income taxes and no provision for
U.S. Federal income taxes was required.
4) DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS: The Fund earns income, net of
Portfolio expenses, daily on its investment in the Portfolio. It is the
policy of the Fund to declare dividends from net investment income on each
business day; such
B-4
<PAGE>
dividends are paid monthly. Distributions from net realized capital gains, if
any, are normally distributed in December. To the extent the Fund's net
realized capital gains, if any, can be offset by capital loss carryforwards
($86, $11,896, $51,062, $70,825, $48,668, $580,400, and $806,750 expiring in
2001, 2002, 2003, 2004, 2005, 2006, and 2007, respectively, determined as of
October 31, 1999), it is the policy of the Fund not to distribute such gains.
The capital loss carryforwards shown above for the Fund include $26,716
expiring in 2003, which was acquired on February 27, 1998, in the merger with
Neuberger Berman Ultra Short Bond Trust ("Ultra Short"). The use of these
losses to offset future gains may be limited in a given year.
The Fund distinguishes between dividends on a tax basis and a financial
reporting basis and only distributions in excess of tax basis earnings and
profits are reported in the financial statements as a return of capital.
Differences in the recognition or classification of income between the
financial statements and tax earnings and profits which result in temporary
over-distributions for financial statement purposes are classified as
distributions in excess of net investment income or accumulated net realized
gains.
5) EXPENSE ALLOCATION: The Fund bears all costs of its operations. Expenses
incurred by the Trust with respect to any two or more funds are allocated in
proportion to the net assets of such funds, except where a more appropriate
allocation of expenses to each fund can otherwise be made fairly. Expenses
directly attributable to a fund are charged to that fund.
6) OTHER: All net investment income and realized and unrealized capital gains
and losses of the Portfolio are allocated pro rata among its respective Funds
and any other investors in the Portfolio.
NOTE B -- ADMINISTRATION FEES, DISTRIBUTION ARRANGEMENTS, AND OTHER TRANSACTIONS
WITH AFFILIATES:
The Fund retains Neuberger Berman Management Inc. ("Management") as its
administrator under an Administration Agreement ("Agreement"). Pursuant to this
Agreement the Fund pays Management an administration fee at the annual rate of
0.50% of the Fund's average daily net assets. The Fund indirectly pays for
investment management services through its investment in the Portfolio (see Note
B of Notes to Financial Statements of the Portfolio).
Management has voluntarily undertaken to reimburse the Fund for its operating
expenses plus its pro rata portion of the Portfolio's operating expenses
(including the fees payable to Management, but excluding interest, taxes,
brokerage commissions, and extraordinary expenses) which exceed, in the
aggregate, 0.80% per annum of the Fund's average daily net assets. This
undertaking is subject to termination by Management upon at least 60 days' prior
written notice to the Fund. For the six months ended April 30, 2000, such excess
expenses amounted to $99,758.
B-5
<PAGE>
Management and Neuberger Berman, LLC ("Neuberger"), a member firm of The New
York Stock Exchange and sub-adviser to the Portfolio, are wholly owned
subsidiaries of Neuberger Berman Inc., a publicly held company. Several
individuals who are officers and/or trustees of the Trust are also employees of
Neuberger and/or Management.
The Fund also has a distribution agreement with Management. Management
receives no compensation therefor and no commissions for sales or redemptions of
shares of beneficial interest of the Fund.
The Portfolio has an expense offset arrangement in connection with its
custodian contract. The impact of this arrangement, reflected in the Statement
of Operations under the caption Expenses from Portfolio, was a reduction of
$508.
NOTE C -- INVESTMENT TRANSACTIONS:
During the six months ended April 30, 2000, additions and reductions in the
Fund's investment in the Portfolio amounted to $2,263,000 and $9,313,000
respectively.
NOTE D -- UNAUDITED FINANCIAL INFORMATION:
The financial information included in this interim report is taken from the
records of the Fund without audit by independent auditors. Annual reports
contain audited financial statements.
B-6
<PAGE>
FINANCIAL HIGHLIGHTS
Neuberger Berman
--------------------------------------------------------------------------------
Limited Maturity Bond Trust(1)
The following table includes selected data for a share outstanding throughout
each period and other performance information derived from the Financial
Statements. It should be read in conjunction with its corresponding Portfolio's
Financial Statements and notes thereto.
<TABLE>
<CAPTION>
Six Months
Ended
April 30,
2000 Year Ended October 31,
(UNAUDITED) 1999 1998 1997 1996 1995
<S> <C> <C> <C> <C> <C> <C>
--------------------------------------------------------
Net Asset Value, Beginning of Period $9.06 $9.45 $9.57 $9.53 $9.61 $9.43
--------------------------------------------------------
Income From Investment Operations
Net Investment Income .28 .56 .57 .60 .57 .58
Net Gains or Losses on Securities (both realized and
unrealized) (.23) (.39) (.12) .04 (.08) .18
--------------------------------------------------------
Total From Investment Operations .05 .17 .45 .64 .49 .76
--------------------------------------------------------
Less Distributions
Dividends (from net investment income) (.28) (.55) (.57) (.60) (.57) (.58)
Distributions (in excess of net investment income) -- (.01) -- -- -- --
--------------------------------------------------------
Total Distributions (.28) (.56) (.57) (.60) (.57) (.58)
--------------------------------------------------------
Net Asset Value, End of Period $8.83 $9.06 $9.45 $9.57 $9.53 $9.61
--------------------------------------------------------
Total Return(2) +0.56%(3) +1.86% +4.79% +6.88% +5.29% +8.36%
--------------------------------------------------------
Ratios/Supplemental Data
Net Assets, End of Period (in millions) $34.5 $41.5 $60.4 $37.4 $21.2 $11.9
--------------------------------------------------------
Ratio of Gross Expenses to Average Net Assets(4) .80%(5) .81% .80% .80% .81% .77%
--------------------------------------------------------
Ratio of Net Expenses to Average Net Assets(6) .80%(5) .80% .80% .80% .80% .77%
--------------------------------------------------------
Ratio of Net Investment Income to Average Net Assets 6.28%(5) 5.87% 5.94% 6.25% 6.06% 6.16%
--------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL HIGHLIGHTS
B-7
<PAGE>
NOTES TO FINANCIAL HIGHLIGHTS
Neuberger Berman April 30, 2000 (Unaudited)
----------------------------------------------------------------------
Limited Maturity Bond Trust
1) The per share amounts and ratios which are shown reflect income and expenses,
including the Fund's proportionate share of the Portfolio's income and
expenses.
2) Total return based on per share net asset value reflects the effects of
changes in net asset value on the performance of the Fund during each fiscal
period and assumes dividends and other distributions, if any, were
reinvested. Results represent past performance and do not guarantee future
results. Investment returns and principal may fluctuate and shares when
redeemed may be worth more or less than original cost. Total return would
have been lower if Management had not reimbursed certain expenses.
3) Not annualized.
4) The Fund is required to calculate an expense ratio without taking into
consideration any expense reductions related to expense offset arrangements.
5) Annualized.
6) After reimbursement of expenses by Management as described in Note B of Notes
to Financial Statements. Had Management not undertaken such action the
annualized ratios of net expenses to average daily net assets would have
been:
<TABLE>
<CAPTION>
Six Months
Ended
April 30, Year Ended October 31,
2000 1999 1998 1997 1996 1995
---------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net Expenses 1.31% 1.12% 1.22% 1.24% 1.91% 2.18%
-------------------------------------------------------------
</TABLE>
B-8
<PAGE>
SCHEDULE OF INVESTMENTS
Neuberger Berman April 30, 2000 (Unaudited)
--------------------------------------------------------------------------------
Limited Maturity Bond Portfolio
<TABLE>
<CAPTION>
Principal
Amount Rating Value(1)
(000's omitted) Moody's S&P (000's omitted)
--------------------- --------- --------- ---------------
<C> <S> <C> <C> <C>
U.S. TREASURY SECURITIES
(13.8%)
$ 9,860 U.S. Treasury Notes, 6.375%,
due 9/30/01 TSY TSY $ 9,815
4,500 U.S. Treasury Notes, 6.50%,
due 3/31/02 TSY TSY 4,483
10,385 U.S. Treasury Notes, 5.50%,
due 5/31/03 TSY TSY 10,065
4,390 U.S. Treasury Notes, 6.00%,
due 8/15/04 TSY TSY 4,299
2,510 U.S. Treasury
Inflation-Indexed Notes,
3.375%, due 1/15/07 TSY TSY 2,419
--------
TOTAL U.S. TREASURY SECURITIES
(COST $31,212) 31,081
--------
U.S. GOVERNMENT AGENCY
SECURITIES (10.7%)
24,300 Fannie Mae, Notes, 4.625%,
due 10/15/01 AGY AGY 23,522
510 Freddie Mac, Notes, 5.75%,
due 7/15/03 AGY AGY 488
--------
TOTAL U.S. GOVERNMENT AGENCY
SECURITIES
(COST $24,131) 24,010
--------
MORTGAGE-BACKED SECURITIES
(12.8%)
1,472 GE Capital Mortgage Services,
Inc., REMIC Pass-Through
Certificates, Ser. 1998-25,
Class B3, 6.25%, due 12/25/28 BB(2) 1,019(3)
1,579 PNC Mortgage Securities Corp.,
Pass-Through Certificates,
Ser. 1999-1, Class 1B4, 6.25%,
due 2/25/29 BB(2) 1,048(3)
941 Norwest Asset Securities
Corp., Mortgage Pass-Through
Certificates, Ser. 1999-13,
6.75%, due 5/25/29 BB(2) 674(3)
1,105 GE Capital Mortgage Services,
Inc., REMIC Pass-Through
Certificates, Ser. 1999-11,
Class B3, 6.50%, due 7/25/29 BB(2) 774(3)
965 Morgan Stanley Capital I Inc.,
Commercial Mortgage
Pass-Through Certificates,
Ser. 1998-HF2, 6.01%,
due 11/15/30 BB(2) 652(3)
</TABLE>
C-1
<PAGE>
SCHEDULE OF INVESTMENTS
Neuberger Berman
--------------------------------------------------------------------------------
Limited Maturity Bond Portfolio (Cont'd)
<TABLE>
<CAPTION>
Principal
Amount Rating Value(1)
(000's omitted) Moody's S&P (000's omitted)
--------------------- --------- --------- ---------------
<C> <S> <C> <C> <C>
FANNIE MAE
$ 3,856 Pass-Through Certificates,
7.00%, due 9/1/03 & 6/1/11 AGY AGY $ 3,816
4,829 Pass-Through Certificates,
6.50%, due 5/1/13 AGY AGY 4,653
FREDDIE MAC
11 Mortgage Participation
Certificates, 10.50%,
due 10/1/00 & 12/1/00 AGY AGY 11
89 Mortgage Participation
Certificates, 8.50%,
due 10/1/01 AGY AGY 90
108 ARM Certificates, 7.00%,
due 1/1/17 AGY AGY 108
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION
64 Pass-Through Certificates,
7.50%, due 10/15/09-9/15/10 AGY AGY 64
111 Pass-Through Certificates,
12.00%, due 5/15/12-3/15/15 AGY AGY 125
3,140 Pass-Through Certificates,
7.00%, due 4/15/11 & 12/15/28 AGY AGY 3,055
6,599 Pass-Through Certificates,
6.50%, due 2/15/29 & 8/15/29 AGY AGY 6,190
3,500 Pass-Through Certificates,
6.50%, TBA, 30 Year Maturity AGY AGY 3,277
3,185 Pass-Through Certificates,
8.00%, TBA, 30 Year Maturity AGY AGY 3,193
--------
TOTAL MORTGAGE-BACKED
SECURITIES
(COST $29,367) 28,749
--------
ASSET-BACKED SECURITIES (9.2%)
2,180 Honda Auto Lease Trust,
Ser. 1999-A, Class A4, 6.45%,
due 9/16/02 Aaa AAA 2,160
6,500 Ford Credit Auto Loan Master
Trust, Auto Loan Certificates,
Ser. 1996-1, 5.50%,
due 2/15/03 Aaa AAA 6,424
62 Honda Auto Receivables Grantor
Trust, Ser. 1997-A, Class A,
5.85%, due 2/15/03 Aaa AAA 61
</TABLE>
C-2
<PAGE>
April 30, 2000 (Unaudited)
--------------------------------------------------------------------------------
Limited Maturity Bond Portfolio (Cont'd)
<TABLE>
<CAPTION>
Principal
Amount Rating Value(1)
(000's omitted) Moody's S&P (000's omitted)
--------------------- --------- --------- ---------------
<C> <S> <C> <C> <C>
$ 5,600 Chase Credit Card Master
Trust, Ser. 1997-2, Class A,
6.30%, due 4/15/03 Aaa AAA $ 5,596
477 Navistar Financial Owner
Trust, Ser. 1996-B,
Class A-3, 6.33%, due 4/21/03 Aaa AAA 477
4,720 Chemical Master Credit Card
Trust 1, Ser. 1995-2,
Class A, 6.23%, due 6/15/03 Aaa AAA 4,709
714 Chevy Chase Auto Receivables
Trust, Ser. 1996-2, Class A,
5.90%, due 7/15/03 Aaa AAA 711
600 Daimler Chrysler Auto Trust,
Ser. 2000-A, Class A3, 7.09%,
due 12/6/03 Aaa AAA 597
--------
TOTAL ASSET-BACKED SECURITIES
(COST $20,911) 20,735
--------
BANKS & FINANCIAL INSTITUTIONS
(13.2%)
3,150 Countrywide Funding Corp.,
Medium-Term Notes, Ser. A,
7.31%, due 8/28/00 A3 A 3,153
3,600 Countrywide Home Loans, Inc.,
Notes, 5.62%, due 10/16/00 A3 A 3,577
2,000 Dime Bancorp, Inc., Notes,
6.375%, due 1/30/01 Ba1 BBB- 1,979
2,000 NationsBank Corp., Senior
Medium-Term Notes, Ser. E,
5.70%, due 2/9/01 Aa2 A+ 1,977
4,430 Morgan Stanley, Dean Witter, &
Co., Global Medium-Term Notes,
Ser. C, 6.09%, due 3/9/01 Aa3 A+ 4,391
6,660 Household Finance Corp.,
Senior Medium-Term Notes,
6.06%, due 5/14/01 A2 A 6,576
1,500 Dime Bancorp, Inc., Notes,
7.00%, due 7/25/01 Ba1 BBB- 1,482
3,025 Lehman Brothers Holdings Inc.,
Medium-Term Notes, Ser. E,
7.00%, due 5/15/03 A3 A 2,955
2,900 Paine Webber Group Inc.,
Notes, 6.45%, due 12/1/03 Baa1 BBB+ 2,748
1,000 Bank United Corp., Medium-Term
Notes, Ser. A, 8.00%,
due 3/15/09 Ba2 BBB- 886
--------
TOTAL BANKS & FINANCIAL
INSTITUTIONS
(COST $30,182) 29,724
--------
</TABLE>
C-3
<PAGE>
SCHEDULE OF INVESTMENTS
Neuberger Berman
--------------------------------------------------------------------------------
Limited Maturity Bond Portfolio (Cont'd)
<TABLE>
<CAPTION>
Principal
Amount Rating Value(1)
(000's omitted) Moody's S&P (000's omitted)
--------------------- --------- --------- ---------------
<C> <S> <C> <C> <C>
CORPORATE DEBT SECURITIES
(34.4%)
$ 4,800 Norfolk Southern Corp., Notes,
6.70%, due 5/1/00 Baa1 BBB+ $ 4,800
2,510 Chesapeake Corp., Notes,
10.375%, due 10/1/00 Ba1 BB+ 2,538
2,577 Safeway Inc., Notes, 5.75%,
due 11/15/00 Baa2 BBB 2,557
3,325 AT&T Capital Corp., Notes,
6.875%, due 1/16/01 A1 A+ 3,320
2,320 Fort James Corp., Notes,
6.234%, due 3/15/01 Baa2 BBB 2,295
1,125 Tyco International Group S.A.,
Notes, 6.125%, due 6/15/01 Baa1 A- 1,109
1,780 CMS Energy Corp., Senior
Notes, 8.00%, due 7/1/01 Ba3 BB 1,758
3,300 Telecom Argentina Stet-France
SA, Medium-Term Notes, 9.75%,
due 7/12/01 B1 BBB- 3,316(3)
2,290 Colonial Realty Limited
Partnership, Senior Notes,
7.50%, due 7/15/01 Baa3 BBB- 2,266
1,220 USA Waste Services, Inc.,
Senior Notes, 6.125%,
due 7/15/01 Ba1 BBB 1,172
1,325 Cox Communications, Inc.,
Notes, 7.00%, due 8/15/01 Baa2 BBB+ 1,308
3,300 Texas Utilities Co., Notes,
5.94%, due 10/15/01 Baa3 BBB 3,232
2,080 Tyco International Ltd.,
Notes, 6.50%, due 11/1/01 A3 A- 2,053
1,923 Marlin Water Trust, Senior
Secured Notes, 7.09%,
due 12/15/01 Baa2 BBB 1,891(3)
2,965 ICI Wilmington Inc.,
Guaranteed Notes, 7.50%,
due 1/15/02 Baa1 A- 2,950
2,835 Black & Decker Corp.,
Medium-Term Notes, Ser. A,
8.90%, due 1/21/02 Baa2 BBB 2,869
945 Century Communications Corp.,
Senior Notes, 9.75%,
due 2/15/02 B1 BB- 944
900 Ford Motor Credit Co., Global
Bonds, 6.50%, due 2/28/02 A2 A 883
900 Comdisco, Senior Notes, 7.25%,
due 9/1/02 Baa1 BBB+ 884
3,195 Crown Cork & Seal Co., Inc.,
Notes, 7.125%, due 9/1/02 Baa2 BBB 3,112
2,280 Fort James Corp., Senior
Notes, 6.50%, due 9/15/02 Baa2 BBB 2,214
</TABLE>
C-4
<PAGE>
April 30, 2000 (Unaudited)
--------------------------------------------------------------------------------
Limited Maturity Bond Portfolio (Cont'd)
<TABLE>
<CAPTION>
Principal
Amount Rating Value(1)
(000's omitted) Moody's S&P (000's omitted)
--------------------- --------- --------- ---------------
<C> <S> <C> <C> <C>
$ 1,200 Adelphia Communications Corp.,
Senior Notes, Ser. B, 9.25%,
due 10/1/02 B1 B+ $ 1,176
2,460 Conseco Inc., Notes, 8.50%,
due 10/15/02 Ba1(4) BB-(4) 1,525
800 Reliant Energy Finance Co.,
Notes, 7.40%, due 11/15/02 Baa1 BBB+ 779(3)
1,375 American Standard Inc., Senior
Notes, 7.125%, due 2/15/03 Ba3 BB- 1,304
1,000 Safeway Inc., Medium-Term
Notes, 8.57%, due 4/1/03 Baa2 BBB 1,014
1,615 Cox Radio, Inc., Notes, 6.25%,
due 5/15/03 Baa2 BBB+ 1,540
60 Core-Mark International, Inc.,
Senior Subordinated Notes,
11.375%, due 9/15/03 B3 B 56
2,555 Akzo Nobel Inc., Guaranteed
Notes, 6.00%, due 11/15/03 A2 A 2,396(3)
705 Loomis Fargo & Co., Senior
Subordinated Notes, 10.00%,
due 1/15/04 B3 B 680
1,740 PDVSA Finance Ltd., Notes,
8.75%, due 2/15/04 Baa1 1,698(3)
2,400 Caterpillar Financial Services
Corp., Notes, 6.875%,
due 8/1/04 A2 A+ 2,321
660 EOP Operating Limited
Partnership, Notes, 6.625%,
due 2/15/05 Baa1 BBB+ 614
975 WestPoint Stevens Inc., Senior
Notes, 7.875%, due 6/15/05 Ba3 BB 804
4,200 Heritage Media Corp., Senior
Subordinated Notes, 8.75%,
due 2/15/06 Ba3 BB+ 4,137
735 Calpine Corp., Senior Notes,
7.625%, due 4/15/06 Ba1(4) BB+(4) 691
325 Jones Apparel Group, Senior
Notes, 7.875%, due 6/15/06 Baa2 BBB- 308
210 Printpack, Inc., Senior
Subordinated Notes, Ser. B,
10.625%, due 8/15/06 Caa1 B 202
2,825 Time Warner Inc., Notes,
8.11%, due 8/15/06 Baa3 BBB 2,849
680 Newport News Shipbuilding
Inc., Senior Subordinated
Notes, 9.25%, due 12/1/06 Ba3 B+ 677
</TABLE>
C-5
<PAGE>
SCHEDULE OF INVESTMENTS
Neuberger Berman April 30, 2000 (Unaudited)
--------------------------------------------------------------------------------
Limited Maturity Bond Portfolio (Cont'd)
<TABLE>
<CAPTION>
Principal
Amount Rating Value(1)
(000's omitted) Moody's S&P (000's omitted)
--------------------- --------- --------- ---------------
<C> <S> <C> <C> <C>
$ 880 HydroChem Industrial Services,
Inc., Senior Subordinated
Notes, Ser. B, 10.375%,
due 8/1/07 Caa1 B- $ 669
2,000 Interpool, Inc., Notes, 7.20%,
due 8/1/07 Ba2(5) BB+(5) 1,579
1,000 Thiokol Corp., Senior Notes,
6.625%, due 3/1/08 Baa3 BBB 901
610 IMPAC Group, Inc., Senior
Subordinated Notes, 10.125%,
due 3/15/08 B3 B- 610
470 Trans-Resources, Inc., Senior
Notes, Ser. B, 10.75%,
due 3/15/08 B3 B- 254
160 Great Central Mines Ltd.,
Senior Notes, 8.875%,
due 4/1/08 Ba2 BB 150
1,000 Global Crossing Holdings Ltd.,
Senior Notes, 9.625%,
due 5/15/08 Ba2 BB 980
--------
TOTAL CORPORATE DEBT
SECURITIES (COST $81,791) 77,385
--------
FOREIGN GOVERNMENT
SECURITIES(6) (1.0%)
CAD 3,380 Canadian Treasury Bills,
5.543%, due 3/29/01
(COST $2,202) Aa1 AAA 2,157
--------
CORPORATE COMMERCIAL PAPER
(1.7%)
3,940 Bell Atlantic Network Funding
Corp., 6.05%, due 6/7/00
(COST $3,914) P-1 A-1+ 3,914(7)
--------
REPURCHASE AGREEMENTS (2.3%)
5,270 State Street Bank and Trust
Co. Repurchase Agreement,
5.81%, due 5/1/00, dated
4/28/00, Maturity Value
$5,272,552, Collateralized by
$5,415,000 Federal Home Loan
Bank, Notes, 5.40%,
due 11/17/03 (Collateral Value
$5,428,538)
(COST $5,270) 5,270(7)
--------
TOTAL INVESTMENTS (99.1%)
(COST $228,980) 223,025(8)
Cash, receivables and other
assets, less liabilities
(0.9%) 2,079
--------
TOTAL NET ASSETS (100.0%) $225,104
--------
</TABLE>
SEE NOTES TO SCHEDULE OF INVESTMENTS
C-6
<PAGE>
NOTES TO SCHEDULE OF INVESTMENTS
April 30, 2000 (Unaudited)
----------------------------------------------------------------------
Limited Maturity Bond Portfolio
1) Investment securities of the Portfolio are valued daily by obtaining bid
price quotations from independent pricing services on selected securities
available in each service's data base. For all other securities requiring
daily quotations, bid prices are obtained from principal market makers in
those securities or, if quotations are not available, by a method the
trustees of Income Managers Trust believe accurately reflects fair value.
Foreign security prices are furnished by independent quotation services
expressed in local currency values. Foreign security prices are translated
from the local currency into U.S. dollars using current exchange rates.
Short-term debt securities with less than 60 days until maturity may be
valued at cost which, when combined with interest earned, approximates market
value.
2) Not rated by Moody's; the rating shown is from Fitch Investors Services, Inc.
3) Security exempt from registration under the Securities Act of 1933. These
securities may be resold in transactions exempt from registration, normally
to qualified institutional buyers under Rule 144A. At April 30, 2000, these
securities amounted to $14,247,000 or 6.3% of net assets.
4) Rated BBB- by Duff & Phelps Credit Rating Co.
5) Rated BBB by Fitch Investors Services, Inc.
6) Principal amount is stated in the currency in which the security is
denominated.
CAD -- Canadian Dollar
7) At cost, which approximates market value.
8) At April 30, 2000, the cost of investments for U.S. Federal income tax
purposes was $228,980,000. Gross unrealized appreciation of investments was
$45,000 and gross unrealized depreciation of investments was $6,000,000,
resulting in net unrealized depreciation of $5,955,000, based on cost for
U.S. Federal income tax purposes.
SEE NOTES TO FINANCIAL STATEMENTS
C-7
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES
Neuberger Berman
----------------------------------------------------------------------
Limited Maturity Bond Portfolio
<TABLE>
<CAPTION>
April 30,
2000
(000'S OMITTED) (UNAUDITED)
<S> <C>
-------------
ASSETS
Investments in securities, at market value*
(Note A) -- see Schedule of Investments $ 223,025
Cash 3
Receivable for securities sold 5,814
Interest receivable 2,860
Prepaid expenses and other assets 4
-------------
231,706
-------------
LIABILITIES
Payable for securities purchased 6,515
Accrued expenses 44
Payable to investment manager (Note B) 43
-------------
6,602
-------------
NET ASSETS Applicable to Investors' Beneficial
Interests $ 225,104
-------------
NET ASSETS consist of:
Paid-in capital $ 231,059
Net unrealized depreciation in value of
investment securities (5,955)
-------------
NET ASSETS $ 225,104
-------------
*Cost of investments $ 228,980
-------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
C-8
<PAGE>
STATEMENT OF OPERATIONS
Neuberger Berman
----------------------------------------------------------------------
Limited Maturity Bond Portfolio
<TABLE>
<CAPTION>
For the
Six Months
Ended
April 30,
2000
(000'S OMITTED) (UNAUDITED)
<S> <C>
-----------
INVESTMENT INCOME
Interest income $ 8,725
-----------
Expenses:
Investment management fee (Note B) 308
Custodian fees (Note B) 63
Legal fees 14
Auditing fees 13
Trustees' fees and expenses 8
Accounting fees 5
Insurance expense 2
-----------
Total expenses 413
Expenses reduced by custodian fee expense
offset arrangement (Note B) (3)
-----------
Total net expenses 410
-----------
Net investment income 8,315
-----------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
Net realized loss on investment securities
sold (6,705)
Net realized loss on financial futures
contracts (Note A) (4)
Net realized loss on foreign currency
transactions (Note A) (445)
Change in net unrealized depreciation of
investment securities, financial futures
contracts, translation of assets and
liabilities in foreign currencies, and
foreign currency contracts (Note A) 758
-----------
Net loss on investments (6,396)
-----------
Net increase in net assets resulting from
operations $ 1,919
-----------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
C-9
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
Neuberger Berman
----------------------------------------------------------------------
Limited Maturity Bond Portfolio
<TABLE>
<CAPTION>
Six Months
Ended Year
April 30, Ended
2000 October 31,
(000'S OMITTED) (UNAUDITED) 1999
<S> <C> <C>
--------------------------
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income $ 8,315 $ 20,055
Net realized loss on investments (7,154) (4,032)
Change in net unrealized
appreciation (depreciation) of
investments 758 (8,500)
--------------------------
Net increase in net assets resulting
from operations 1,919 7,523
--------------------------
TRANSACTIONS IN INVESTORS' BENEFICIAL
INTERESTS:
Additions 43,030 44,610
Reductions (89,972) (138,662)
--------------------------
Net decrease in net assets resulting
from transactions in investors'
beneficial interests (46,942) (94,052)
--------------------------
NET DECREASE IN NET ASSETS (45,023) (86,529)
NET ASSETS:
Beginning of period 270,127 356,656
--------------------------
End of period $ 225,104 $ 270,127
--------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
C-10
<PAGE>
NOTES TO FINANCIAL STATEMENTS
April 30, 2000 (Unaudited)
----------------------------------------------------------------------
Income Managers Trust
NOTE A -- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:
1) GENERAL: Neuberger Berman Limited Maturity Bond Portfolio (the "Portfolio")
is a separate operating series of Income Managers Trust ("Managers Trust"), a
New York common law trust organized as of December 1, 1992. Managers Trust is
registered as a diversified, open-end management investment company under the
Investment Company Act of 1940, as amended. Other regulated investment
companies sponsored by Neuberger Berman Management Inc. ("Management"), whose
financial statements are not presented herein, also invest in the Portfolio
and other portfolios of Managers Trust.
The assets of each Portfolio belong only to that Portfolio, and the
liabilities of each Portfolio are borne solely by that Portfolio and no
other.
2) PORTFOLIO VALUATION: Investment securities are valued as indicated in the
notes following the Portfolio's Schedule of Investments.
3) FOREIGN CURRENCY TRANSLATION: The accounting records of the Portfolio are
maintained in U.S. dollars. Foreign currency amounts are translated into U.S.
dollars at the current rate of exchange of such currency against the U.S.
dollar to determine the value of investments, other assets and liabilities.
Purchase and sale prices of securities, and income and expenses are
translated into U.S. dollars at the prevailing rate of exchange on the
respective dates of such transactions.
4) SECURITIES TRANSACTIONS AND INVESTMENT INCOME: Securities transactions are
recorded on a trade date basis. Interest income, including accretion of
discount (adjusted for original issue discount, where applicable), is
recorded on the accrual basis. Realized gains and losses from securities
transactions and foreign currency transactions are recorded on the basis of
identified cost.
5) FORWARD FOREIGN CURRENCY CONTRACTS: The Portfolio may enter into forward
foreign currency contracts ("contracts") in connection with planned purchases
or sales of securities to hedge the U.S. dollar value of portfolio securities
denominated in a foreign currency. The gain or loss arising from the
difference between the original contract price and the closing price of such
contract is included in net realized gains or losses on foreign currency
transactions. Fluctuations in the value of forward foreign currency contracts
are recorded for financial reporting purposes as unrealized gains or losses
by the Portfolio. The Portfolio has no specific limitation on the percentage
of assets which may be committed to these types of contracts. The Portfolio
could be exposed to risks if a counterparty to a contract were unable to meet
the terms of its contract or if the value of the foreign
C-11
<PAGE>
currency changes unfavorably. The U.S. dollar value of foreign currency
underlying all contractual commitments held by the Portfolio is determined
using forward foreign currency exchange rates supplied by an independent
pricing service.
6) TAXES: Managers Trust intends to comply with the requirements of the Internal
Revenue Code. Each Portfolio of Managers Trust also intends to conduct its
operations so that each of its investors will be able to qualify as a
regulated investment company. Each Portfolio will be treated as a partnership
for U.S. Federal income tax purposes and is therefore not subject to U.S.
Federal income tax.
7) EXPENSE ALLOCATION: The Portfolio bears all costs of its operations. Expenses
incurred by Managers Trust with respect to any two or more portfolios are
allocated in proportion to the net assets of such portfolios, except where a
more appropriate allocation of expenses to each portfolio can otherwise be
made fairly. Expenses directly attributable to a portfolio are charged to
that portfolio.
8) FINANCIAL FUTURES CONTRACTS: The Portfolio may buy and sell financial futures
contracts to hedge against changes in securities prices resulting from
changes in prevailing interest rates. At the time the Portfolio enters into a
financial futures contract, it is required to deposit with its custodian a
specified amount of cash or liquid securities, known as "initial margin,"
ranging upward from 1.1% of the value of the financial futures contract being
traded. Each day, the futures contract is valued at the official settlement
price of the board of trade or U.S. commodity exchange on which such futures
contract is traded. Subsequent payments, known as "variation margin," to and
from the broker are made on a daily basis as the market price of the
financial futures contract fluctuates. Daily variation margin adjustments,
arising from this "mark to market," are recorded by the Portfolio as
unrealized gains or losses.
Although some financial futures contracts by their terms call for actual
delivery or acceptance of financial instruments, in most cases the contracts
are closed out prior to delivery by offsetting purchases or sales of matching
financial futures contracts. When the contracts are closed, the Portfolio
recognizes a gain or loss. Risks of entering into futures contracts include
the possibility there may be an illiquid market and/or a change in the value
of the contract may not correlate with changes in the value of the underlying
securities.
For U.S. Federal income tax purposes, the futures transactions undertaken
by the Portfolio may cause the Portfolio to recognize gains or losses from
marking to market even though its positions have not been sold or terminated,
may affect the character of the gains or losses recognized as long-term or
short-term, and may affect the timing of some capital gains and losses
realized by the Portfolio. Also, the
C-12
<PAGE>
Portfolio's losses on transactions involving futures contracts may be
deferred rather than being taken into account currently in calculating the
Portfolio's taxable income.
During the six months ended April 30, 2000, the Portfolio had entered into
various financial futures contracts. At April 30, 2000, there were no open
positions.
9) REPURCHASE AGREEMENTS: The Portfolio may enter into repurchase agreements
with institutions that the Portfolio's investment manager has determined are
creditworthy. Each repurchase agreement is recorded at cost. The Portfolio
requires that the securities purchased in a repurchase transaction be
transferred to the custodian in a manner sufficient to enable the Portfolio
to obtain those securities in the event of a default under the repurchase
agreement. The Portfolio monitors, on a daily basis, the value of the
securities transferred to ensure that their value, including accrued
interest, is greater than amounts owed to the Portfolio under each such
repurchase agreement.
NOTE B -- MANAGEMENT FEES AND OTHER TRANSACTIONS WITH AFFILIATES:
The Portfolio retains Management as its investment manager under a Management
Agreement. For such investment management services, the Portfolio pays
Management a fee at the annual rate of 0.25% of the first $500 million of the
Portfolio's average daily net assets, 0.225% of the next $500 million, 0.20% of
the next $500 million, 0.175% of the next $500 million, and 0.15% of average
daily net assets in excess of $2 billion.
Management and Neuberger Berman, LLC ("Neuberger"), a member firm of The New
York Stock Exchange and sub-adviser to the Portfolio, are wholly owned
subsidiaries of Neuberger Berman Inc., a publicly held company. Neuberger is
retained by Management to furnish it with investment recommendations and
research information without added cost to the Portfolio. Several individuals
who are officers and/or trustees of Managers Trust are also employees of
Neuberger and/or Management.
The Portfolio has an expense offset arrangement in connection with its
custodian contract. The impact of this arrangement, reflected in the Statement
of Operations under the caption Custodian fees, was a reduction of $3,232.
NOTE C -- SECURITIES TRANSACTIONS:
During the six months ended April 30, 2000, there were purchase and sale
transactions (excluding short-term securities, financial futures contracts, and
forward foreign currency contracts) of $122,544,000 and $176,794,000,
respectively.
During the six months ended April 30, 2000, the Portfolio had entered into
various contracts to deliver currencies at specified future dates. At April 30,
2000, there were no open contracts.
C-13
<PAGE>
NOTE D -- UNAUDITED FINANCIAL INFORMATION:
The financial information included in this interim report is taken from the
records of the Portfolio without audit by independent auditors. Annual reports
contain audited financial statements.
C-14
<PAGE>
FINANCIAL HIGHLIGHTS
Neuberger Berman
--------------------------------------------------------------------------------
Limited Maturity Bond Portfolio
<TABLE>
<CAPTION>
Six Months
Ended
April 30,
2000 Year Ended October 31,
(UNAUDITED) 1999 1998 1997 1996 1995
<S> <C> <C> <C> <C> <C> <C>
------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS:
Gross Expenses(1) .33%(2) .31% .33% .33% .33% .33%
------------------------------------------------------------------
Net Expenses .33%(2) .31% .33% .33% .33% .33%
------------------------------------------------------------------
Net Investment Income 6.72%(2) 6.35% 6.38% 6.70% 6.45% 6.55%
------------------------------------------------------------------
Portfolio Turnover Rate 52% 102% 44% 89% 169% 88%
------------------------------------------------------------------
Net Assets, End of Period (in millions) $225.1 $270.1 $356.7 $293.0 $267.3 $319.6
------------------------------------------------------------------
</TABLE>
1) The Portfolio is required to calculate an expense ratio without taking into
consideration any expense reductions related to expense offset arrangements.
2) Annualized.
C-15
<PAGE>
DIRECTORY
INVESTMENT MANAGER, ADMINISTRATOR
AND DISTRIBUTOR
Neuberger Berman Management Inc.
605 Third Avenue 2nd Floor
New York, NY 10158-0180
800.877.9700 or 212.476.8800
Institutional Services 800.366.6264
SUB-ADVISER
Neuberger Berman, LLC
605 Third Avenue
New York, NY 10158-3698
CUSTODIAN AND SHAREHOLDER
SERVICING AGENT
State Street Bank and Trust Company
225 Franklin Street
Boston, MA 02110
ADDRESS CORRESPONDENCE TO:
Neuberger Berman Funds
Institutional Services
605 Third Avenue 2nd Floor
New York, NY 10158-0180
LEGAL COUNSEL
Kirkpatrick & Lockhart LLP
1800 Massachusetts Avenue, NW
2nd Floor
Washington, DC 20036-1800
-C- 2000 Neuberger Berman Management Inc.
D-1
<PAGE>
OFFICERS AND TRUSTEES
Theodore P. Giuliano
CHAIRMAN OF THE BOARD AND TRUSTEE
John Cannon
TRUSTEE
Barry Hirsch
TRUSTEE
Robert A. Kavesh
TRUSTEE
William E. Rulon
TRUSTEE
Candace L. Straight
TRUSTEE
Peter E. Sundman
PRESIDENT
Daniel J. Sullivan
VICE PRESIDENT
Michael J. Weiner
VICE PRESIDENT
Richard Russell
TREASURER
Claudia A. Brandon
SECRETARY
Barbara DiGiorgio
ASSISTANT TREASURER
Celeste Wischerth
ASSISTANT TREASURER
Stacy Cooper-Shugrue
ASSISTANT SECRETARY
D-2
<PAGE>
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. Shares are sold only through the currently
effective prospectus, which must precede or accompany this report.
NEUBERGER BERMAN
NEUBERGER BERMAN MANAGEMENT INC.
605 Third Avenue 2nd Floor
New York, NY 10158-0180
SHAREHOLDER SERVICES
800.877.9700
INSTITUTIONAL SERVICES
800.366.6264
WWW.NBFUNDS.COM
[LOGO] PRINTED ON RECYCLED PAPER A0073 05/00
<PAGE>
--------------------------------------------
KIRKPATRICK & LOCKHART LLP
--------------------------------------------
1800 MASSACHUSETTS AVENUE, N.W.
2ND FLOOR
WASHINGTON, D.C. 20036-1800
TELEPHONE (202) 778-9000
FACSIMILE (202) 778-9100
FATIMA SULAIMAN
(202) 778-9223
[email protected]
June 23, 2000
VIA EDGAR
---------
Securities and Exchange Commission
450 Fifth Street, N.W.
Washington, D.C. 20549
Re: Neuberger Berman Income Trust:
Neuberger Berman Limited Maturity Bond Trust
1933 Act File No. 33-62872
1940 Act File No. 811-7724
-------------------------------------------------
Dear Sir or Madam:
Transmitted herewith for filing is the Semi-Annual Report to
Shareholders of Neuberger Berman Income Trust for the period ended April 30,
2000. This filing is being made pursuant to Section 30(b)(2) of the Investment
Company Act of 1940, as amended, and Rule 30b2-1 thereunder.
If you should have any questions regarding this filing, please
contact the undersigned.
Sincerely,
/s/ Fatima Sulaiman
-------------------
Fatima Sulaiman
Enclosures
