Report of Independent Auditors
To the Trustees
Income Managers Trust
In planning and performing our audits of the financial
statements of Income Managers Trust (comprising,
respectively, Neuberger Berman Government Money Portfolio,
Neuberger Berman Cash Reserves Portfolio, Neuberger Berman
Limited Maturity Bond Portfolio, Neuberger Berman High Yield
Bond Portfolio, Neuberger Berman Municipal Money Portfolio,
Neuberger Berman Municipal Securities Portfolio, and
Neuberger Berman Institutional Money Market Portfolio) for
the year ended October 31, 2000, we considered its internal
control, including control activities for safeguarding
securities, in order to determine our auditing procedures
for the purpose of expressing our opinion on the financial
statements and to comply with the requirements of Form N-
SAR, not to provide assurance on internal control.
The management of Income Managers Trust is responsible for
establishing and maintaining internal control. In
fulfilling this responsibility, estimates and judgments by
management are required to assess the expected benefits and
related costs of controls. Generally, controls that are
relevant to an audit pertain to the entity's objective of
preparing financial statements for external purposes that
are fairly presented in conformity with generally accepted
accounting principles. Those controls include the
safeguarding of assets against unauthorized acquisition,
use, or disposition.
Because of inherent limitations in internal control, error
or fraud may occur and not be detected. Also, projection of
any evaluation of internal control to future periods is
subject to the risk that it may become inadequate because of
changes in conditions, or that the effectiveness of the
design and operation may deteriorate.
Our consideration of internal control would not necessarily
disclose all matters in internal control that might be
material weaknesses under standards established by the
American Institute of Certified Public Accountants. A
material weakness is a condition in which the design or
operation of one or more of the internal control components
does not reduce to a relatively low level the risk that
misstatements caused by error or fraud in amounts that would
be material in relation to the financial statements being
audited may occur and not be detected within a timely period
by employees in the normal course of performing their
assigned functions. However, we noted no matters involving
internal control and its operation, including controls for
safeguarding securities, that we consider to be material
weaknesses as defined above as of October 31, 2000.
This report is intended solely for the information and use
of Management and the Board of Trustees of Income Managers
Trust and the Securities and Exchange Commission and is not
intended to be and should not be used by anyone other than
these specified parties.
Boston, Massachusetts
December 4, 2000
